project on sharekhan
- 1. A Summer Internship Project Report On CONSUMER BEHAVIOR TOWARDS ONLINE TRADING IN STOCK MARKET Submitted In the partial fulfillment of the degree of Master of Business Administration Semester – II Prepared By: GUJARATI MITESH K Enroll. No.: 137730592019 Guided By: PROF.SUNIL MASHRU Submitted to: GUJARAT TECHNOLAGY UNIVERSITY
- 2. DECLARATION I undersigned Mr Gujarati Mitesh student of SUNSHINE GROUP OF INSTITUTIONS,M.B.A. SEMESTER – II Rajkot, hereby declare that the all information of the Project is my own work. This project report is correct and true to the best of my knowledge and ability and has been presented here my level best under the supervision of my Professor SUNIL MASHRU of Sunshine college rajkot. This Report has not been previously submitted by the any other student for any Examination. Date: Place: RAJKOT Signature _____________ (Gujarati Mitesh k.)
- 3. PREFACE “With every experience you alone are painting your own canvas, thought by thought, choice by choice.” This saying has played the guiding role in preparing this practical financial project report of Sharekhan Ltd. This report has made it possible for us to practically have a look at the financial conditions of the company. The Summer Internship Project allows the student to expand their practical knowledge and helps us to study and read business environment. This practical training inMasterof Business Administration curriculum plays a vital role in understanding and knowing the difficulty and challenges in the business world. Only theoretical knowledge does not impart complete education, practical experience must be there in order to add some meaning to education. I have undergone my summer training at Sharekhan Ltd.It is one of the leading broking house of the country. I feel great pleasure to present this report work after my training at Sharekhan Ltd. that produced to be golden opportunity for me by enriching my knowledge by comparing my theoretical knowledge with the managerial skill and application.
- 4. ACKNOWLEDGEMENT I Mitesh Gujarati student of M.B.A. feel great Pleasure to present this report. I am thankful to all the persons who directly or indirectly helped me in the preparation of this report. I am very thankful GUJARAT TECHNOLOGICAL UNIVERSITY for introducing this subject in course, as one becomes aware of the practical aspect of life. I am thankful to Sunshine college and to the respected Dean Dr. Nirmalkumar Sharma for giving us such a valuable chance to go for Industrial Training and to do work on this report. I also like to thanks Prof. Sunil Mashru who guided & motivated me in preparing the project report. I am very much thankful to Mr. Bhavin Dhruve, Team Manager, of Sharekhan Ltd.for being a helping hand in understanding all the details for preparation of this report.
- 5. INDEX Sr. No. Particular Page No. 1. Executive Summary 2. Industry Overview: 1.2 Introduction to Stock Broking Industry 3. Company Overview: 2.1Sharekhan at Glance 2.2 Functional Areas of the Sharekhan 4. Research Methodology 3.1Research Objective 3.2 Research Methodology 3.3 Review of Literature 3.4 Research Analysis & Interpretation 3.5Limittions 5. Research Finding and Conclusion 3.1 Findings 3.2 Recommendations 3.3 Conclusion 6.s Bibliography and Annexure 4.2 Bibliography 4.3 Annexure Questionnaire
- 6. EXECUTIVE SUMMARY This is a project report on “Consumer behavior towards online trading.” which is made on the basis of summer internship done at Sharekhan stock broking. The objective of the proposed study is to identify the specific factors that affect consumer attitudes towards online share trading. The methodological approach to this study is descriptive, because we attempt to identify and explain variables that exist in a given situation and to describe the relationship that exists between these variables in order to provide a picture of a particular phenomenon, but not to ferret out cause-effect relationship. The primary data was collected through questionnaire filling. The secondary data was collected through the internet. India has a large chunk of population which is at lower income level and at middle income level. There is a need of creating awareness among them for share trading and the tremendous potential it has. They are doing trading on the old methods which were used in the past. Now with the advent of technology there are many options available to the traders which they can use without any fear. The trend is moving towards the online share trading but still it has a lot to cover. The traders are more of young age and middle age and don’t fear from risk taking but the lack of knowledge doesn’t allows them to do so. So the stock broking companies should take measures to empower the normal investors so that they can trade with the latest technologies available.
- 7. Target the youth as they are most potential customers of the stock market as their interest towards stock trading is increasing. The stock broking companies should educate the investors by giving them timely help in the form of reports and tips.The companies should try to work in more transparent way. People want good services and are ready for paying extra penny. People prefer Ease of transactions and security. As per my summer internship project topic, “Consumer Behavior towards Online Trading in Stock Market” I choose 100 people as the sample size as the part of research and most of the people who are traded in stock market they are doing it offline. So, there is the more scope of online trading customer and they can also try to convert the offline customer into the online trading customer. And they can also catch the attention of those who are investing in Mutual Fund. They have to attract the more businessmen and the employees who are working in private or public sector.
- 9. INTRODUCTION Securities market has essentially divided into three categories of participants, namely the issuer of securities, investors in securities and the intermediaries. The security market has two interdependent and inseparable segmentsthe Primary Market and the Secondary Market. Primary Market: The primary market is the part of the capital market that deals with issuing of new securities. Companies, government or public sector institutions can obtain funds through the sale of a new stock or bond issues through primary market. Secondary Market: A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchange – such as the New York Stock Exchange and the NASDAQ are secondary markets.
- 10. HISTORY 1850 – Shares of banks and securities of east India Company traded in Mumbai under a sprawling banyan tree in front of town hall, which is now in the honiman circle park. 1875 – Brokers organized an association known as the native share brokers association, and the country’s first stock exchange the Bombay stock exchange (BSE), set up in Mumbai with 318 members. The membership fee gradually increased from Rs 1 in 1887 to Rs 1000 in 1896, and Rs 48000 in 1920. 1956 – Securities contract regulation Act passed. 1957 – The BSE and eight other stock exchange registered under the securities trading contract act. 1982 – The BSE classifies scripts into group A for carry forward, and group B for cash transaction. 1986 – The BSE 30 – share sensitivity index (a.k.a. the sensex) compiled; updated every two minutes. 1987 – Stock holding corporation of India set up.
- 11. 1992 – Ordinance promulgated for granting statutory powers to the SEBI. The over- the counter exchange of India begins operations. The national stock exchange incorporated. 1994 – The NSE’s debt segment begins operation on June 30; and the capital market segment begins online script less trading on November 3. 1995 – the BSE computerizes its trading operation , signaling the end of 120 years of floor trading with open out cry system of share trading and the beginning of screen – based trading on the BSE. 1996 – NSE 50 index launched April 22. NSDL set up as the first depositary in India, and the NSE commences trading in dematerialized securities on December 26. 2000 – The SEBI approves the reports on net trading brought out by the SEBI committee on net based trading and services. Pursuant to the circular , stock exchanges are require to give permission to members to start net based trading after ensuring fulfillment of the minimum conditions.
- 12. BSE (BOMBAY STOCK EXCHANGE) The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualized and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act, 1956. The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redressal of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education program and making available to them necessary informative inputs.
- 13. NSE (NATIONAL STOCK EXCHANGE) NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments. NSE has been able to take the stock market to the doorsteps of the investors. The technology has been harnessed to deliver the services to the investors across the country at the cheapest possible cost. It provides a nation-wide, screen-based, automated trading system, with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through on-line system has helped in integrating retail investors on a nation-wide basis. The standards set by the exchange in terms of market practices, Products, technology and service standards have become industry benchmarks and are being replicated by other market participants.
- 14. National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally managed online multi commodity exchange promoted by ICICI Bank Limited (ICICI Bank), Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural Development (NABARD) and National Stock Exchange of India Limited (NSE). Punjab National Bank (PNB), CRISIL Limited (formerly the Credit Rating Information Services of India Limited), Indian Farmers Fertilizer Cooperative Limited (IFFCO) and Canara Bank by subscribing to the equity shares have joined the initial promoters as shareholders of the Exchange. NCDEX is the only commodity exchange in the country promoted by national level institutions. This unique parentage enables it to offer a bouquet of benefits, which are currently in short supply in the commodity markets. The institutional promoters of NCDEX are prominent players in their respective fields and bring with them institutional building experience, trust, nationwide reach, technology and risk management skills. NCDEX is a public limited company incorporated on April 23, 2003 under the Companies Act, 1956. It obtained its Certificate for Commencement of Business on May 9, 2003. It has commenced its operations on December 15, 2003. NCDEX is a nation-level, technology driven de-mutualized on-line commodity exchange with an independent Board of Directors and professionals not having any vested interest in commodity markets. It is committed to provide a world-class commodity exchange platform for market participants to trade in a wide spectrum of commodity derivatives driven by best global practices, professionalism and transparency.
- 15. FACILITIES PROVIDED BY NCDEX: NCDEX has developed facility for checking of commodity and also provides a ware house facility. By collaborating with industrial partners, industrial companies, news agencies, banks and developers of kiosk network NCDEX is able to provide current rates and contracts rate. To prepare guidelines related to special products of securitization NCDEX works with bank. To avail farmers from risk of fluctuation in prices NCDEX provides special services for agricultural. NCDEX is working with tax officer to make clear different types of sales and service taxes. NCDEX is providing attractive products like “weather derivatives.” Cashew Castor Seed Chana Chilli Coffee - Arabica Coffee - Robusta Common Raw Rice Common Parboiled Rice Crude Palm Oil Cotton Seed Oilcake Expeller Mustard Oil Grade A Parboiled Rice Grade A Raw Rice Groundnut (in shell)
- 16. Groundnut Expeller Oil Guar gum Guar Seeds Gur Jeera Jute sacking bags Lemon Tur Indian Parboiled Rice Indian Raw Rice Indian 28 mm Cotton Indian 31 mm Cotton Maharashtra Lal Tur Masoor Grain Bold Medium Staple Cotton Mentha Oil Mulberry Green Cocoons Mulberry Raw Silk Mustard Seed Pepper Raw Jute Rapeseed-Mustard Seed Oilcake RBD Palmolein Refined Soy Oil Rubber Sesame Seeds Soyabean Sugar Yellow Soybean Meal Turmeric Urad V-797 Kapas Wheat Yellow Peas Yellow Red Maize
- 17. MCX an independent and de-mutulised multi commodity exchange has permanent recognition from Govt. of India for facilitating online trading, clearing and settlement operations for commodity futures markets across the country. Key shareholders of MCX include Financial Technologies (I) Ltd., State Bank of India (India’s largest commercial bank) & associates, Fidelity International, National Stock Exchange of India Ltd. (NSE), National Bank for Agriculture and Rural Development (NABARD), HDFC Bank, SBI Life Insurance Co. Ltd., Union Bank of India, Canara Bank, Bank of India, Bank of Baroda and Corporation Bank. Headquartered in Mumbai, MCX is led by an expert management team with deep domain knowledge of the commodity futures markets. Through the integration of dedicated resources, robust technology and scalable infrastructure, since inception MCX has recorded many first to its credit. Inaugurated in November 2003 by Shri Mukesh Ambani, Chairman & Managing Director, Reliance Industries Ltd, MCX offers futures trading in the following commodity categories: Agri Commodities, Bullion, Metals- Ferrous & Non-ferrous, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft commodities. MCX has built strategic alliances with some of the largest players in commodities eco-system, namely, Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors' Association of India, Pulses Importers Association, Shetkari Sanghatana, United Planters Association of India and India Pepper and Spice Trade Association.
- 18. Commodities Gold, Gold HNI, Gold M, I-Gold, Silver, Silver HNI, Silver M Castor Oil, Castor Seeds, Coconut Cake, Coconut Oil, Cottonseed, Crude Palm Oil, Groundnut Oil, Kapasia Khalli (Cottonseed Oilcake), Mustard /Rapeseed Oil, Mustard Seed (Sirsa), RBD Palmolein, Refined Soy Oil, Refined Sunflower Oil, Sesame Seed, Soymeal, Soy Seeds Cardamom, Jeera, Pepper, Red Chilli Aluminium, Copper, Lead, Nickel, Sponge Iron, Steel Flat, Steel Long (Bhavnagar), Steel Long (Gobindgarh), Tin, Zinc Cotton Long Staple , Cotton Medium Staple, Cotton Short Staple, Cotton Yarn, Kapas Chana, Masur, Tur, Urad, Yellow Peas, Basmati Rice, Maize, Rice, Sarbati Rice, Wheat Brent Crude Oil , Crude Oil , Furnace Oil Middle East Sour Crude Oil
- 19. Arecanut, Cashew Kernel, Rubber High Density Polyethylene (HDPE), Polypropylene (PP), PVC Guar Seed, Guar gum, Gurchaku, Mentha Oil, Potato, Sugar M-30, Sugar S-30,
- 20. BRIEF INTRODUCTION TO ONLINE STOCK MARKET TRADING Investors who are trading over the Internet or online need to know how they can protect themselves against unexpected losses (especially in fast-moving markets) and what additional steps to take in order to guard themselves against the typical problems of online trading. Online trading may be quick and easy but it still requires time and efforts. You can buy or sell stocks from a great number of online brokers with just a click of your mouse. However, do not forget that making wise investment decisions takes time. Online trading may be seamless and quick but it is not always in stantaneous. A number of technological problems can actually slow or prevent your orders from reaching your online firm. Some of them include: a slow modem, computer, or Internet Service Provider at the investor's end, heavy Internet traffic that is slowing, down overall usage, inadequate hardware at the broker-dealers end, etc. No regulations require that a trade should be executed within a certain time. If you are unable to access your account online you should know what other options for placing a trade you have. Your online trading firm may allow touch-tone telephone trades, ordering by calling your broker, or placing your order. Have in mind that sometimes turning to one of these options may increase your costs, and other times you may still experience delays when using them. Sometimes investors place an order, mistakenly assume that it hasn't been executed, and place another order again. Thus, they end up either selling stocks
- 21. they do not own, or owning twice as much they wanted. If you are unsure whether your original order was executed, don't rush in to placing it again. Talk to your firm and clarify how to handle such situations. In other cases, investors don't make sure that the transaction hasn't been executed when they cancel an order. You should know that you may receive an electronic receipt for the cancellation but your trade may still not have been canceled. Talk to your firm and ask them how you can check to see if a cancellation has really worked. Limit your possible losses by setting limit orders on fast-moving stocks. By placing a regular market order, you don't have control over the price at which the order will be filled. You hardly want to buy or sell stocks at a price that is higher or lower than the one you have in mind so you better place a limit order. A buy limit order will be executed only at a price that is not higher than your preliminarily set limit price. A sell limit order on the other hand will be executed at the limit price or higher. If you have a complaint, act promptly.
- 22. TRANSECTION CYCLE Placing Order Decision to trade Settlement of trades Trade Execution Clearing of Trades Funds or Securities Transaction Cycle
- 23. ADVANTAGES OF ONLINE STOCK TRADING 1. Time Customers can trade online with a real time basis and buying and selling of shares happens with a press of a button. 2. Flexibility Customers can modify the placing orders according to the market movements. 3. Standardized Procedures When the order is accepted by the exchange, it will give pay-in and pay-outdates and customer can easily expect the cash or shares to be credited to his account. 4. One stop shop Bank statements and transaction statements can be viewed at the click of a button. 5. Informed Researches Service providers carry stock analysis like intraday and EOD (End of day) technical charting which helps the customer to make right choices 6. Flexibility of timing Customers can place orders before start of a trading session
- 24. DISADVANTAGES OF ONLINE STOCK MARKET TRADING 1. Forgetting You Are Using Real Money In recent decades, people have become very accustomed to doing both work and play in front of a computer monitor. When you're so immersed in an online task, it's possible to become detached. This can cause users of online investing firms to forget that they are using real money as they trade on the brokerage's website. Investors may make mistakes because they make trading decisions too quickly and get caught up in the ease of using the technology. 2. Lack of a Broker/Investor Relationship When you invest with a traditional brokerage firm, there is a relationship with the broker, who can become an investing mentor. The broker provides advice and guidance to the investor. This is beneficial relationship to both parties, as the investor gets the broker's financial expertise and the brokerage firm gets extra fees from clients if its portfolio grows in size. With an online trading firm, all portfolios are self-directed, which means users need to have at least a working knowledge of the financial markets to make informed decisions. Many investors simply don't have enough time to follow the financial markets, especially on a daily basis. This can cause them to make inappropriate investments due to a lack of complete information. 3. No Time to Learn Online Programs Online brokerage firms claim their software is easy, but this isn't always the case. Often, the software is complicated, with several different options and calculators, and no instructions on how to actually use them. People who don't learn software quickly may not master all the ins and outs of the program.
- 26. COMPANY DETAILS Sharekhan EQUITIES & DERIVATIVES PORTFOLIO MANAGEMENT AND STRUCTURED PRODUCTS DEPOSITORY SERVICES RESEARCH IPO, MUTUAL FUND Your Guide to the Financial Jungle COMMODITIES
- 27. SSKI HISTORY S. S. KANTILAL ISHWARLAL SECURITEIS PRIVATE LTD. In 1922 Sharekhan,was founded as SSKI (ShantilalShevantilalKantilalIshwarlal) and later on it is renamed as Sharekhan Ltd. And it is one of India’s oldest brokerage houses having over eighty years of broking experience. Founding member of the stock exchange, Mumbai and pioneer institutional broker. SSKI is the only domestic player in a market crowded by 44 multinational securities firms. venture into institutional broking and corporate finance 18 years ago SSKI group also comprises institutional broking and corporate finance 18 years ago. While the institutional broking division caters to the largest domestic and foreign institutional investors, the corporate finance division focuses on niche areas such as infrastructure, telecom and media. SSKI holds a sizeable portion of the market in each of these segments.
- 28. predecessor of investment research in the Indian market, SSKI provide the best research coverage amongst broking houses in India. The company’s research team was set up in des. 1992 and is rated as one of the best in the country. Voted four times as the top domestic brokerage house by Asia money survey, SSKI is consistently ranked amongst the top domestic brokerage houses in India. Retail broking started in 1985 Research group was set up in December 1992 It acts as a pioneer of investment research in the Indian market aimed at generating quick investment ideas. Its research team is rated as one of the best in the industry……across retail & institutional. Group interest in investment banking, institutional broking and retail broking. It is an integrated equity solution provider. It commands good market share of the institutional business. It has over 60 institutional client spread over India, Far East, UK and US. It occupies 65% of business share from foreign institutional investors. Its daily turnover average to US$ 2 million. The private equity deals sum over US$ 1 billion. SSKI named its online division as “share khan” on February 8, 2000 coinciding with the launch of its website.
- 29. VISION To empower the investor with quality advice and superior service to help him take better investment decisions. We believe that our growth depends on client satisfaction. MISSION STATEMENT ..to educate and empower the individual investor to make better investment decisions through QUALITY ADVICE INNOVATIVE PRODUCTS and SUPERIOR SERVICE
- 30. To provide the best Customer Service and Product Innovation tuned to diverse needs of clientele. Continuous up-gradation with changing technology, while maintaining human values. Respond to progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.
- 31. ABOUT SHAREKHAN 1. Earlier Name: Shantilal Shevantilal Kantilal Ishwarlal Securities Pvt. Ltd. 2. New Name: Sharekhan Ltd. 3. Year of Establishment: 8 February, 2000 4. Head Office: Sharekhan Ltd. A – 206, Phoenih House, BaptaMarg, Lower Parle, Mumbai – 400013 5. Promoter: Shripal Morakhiya Shreyas Morakhiya 6. Chief Executive Officer:Tarun P. Shah 7. Director of Operation: Shankar Valiya 8. Director of Product: Jaideep Arora 9. Branch Address: 103/104, Sakar Complex, Dr. Radhakrishna Road, Opp. Rajkumar College, Rajkot – 360001 10. Branch Manager: Mr. Malay Popat 11. Web-site: www.sharekhan.com 12. Phone No.: 0281-2482483 / 4
- 32. SSKI group – corporate structure Owns 56% of Owns 50.5% of SSKI Securities Pvt. Ltd. Morakhia Family & Associates SSKI Corporate Finance Pvt. Ltd. 50.5% SSKI Securities Pvt. Ltd. 49.5% Morakhia Family Chart-1 SSKI Investor Securities Pvt. Ltd. Retail broking arm of the group Shareholding Pattern: 55.5% Morakhia Family (Promoters) 18.5% HSBC Pvt. Equity India Fund Ltd. 18.5% First Carlyle Ventures, Mauritius 7.5% Intel Pacific Inc. Investment banking arm of the group Shareholding Pattern: SHAREHOLDERS & SHAREHOLDING PATTERN: Table- 1 Sr. No. Shareholders Holding % 1 Citi Venture Capital & Other Private Equity Firms 81 2 IDFC (Infrastructure Development Finance Company) 9 3 Employees 10
- 33. PRICING POLICY OF SHAREKHAN:- Parameters A/c Opening Fee Brokerage Interface Trading A/c Demat Delivery Square Off Banks Associated with ShareKhan 400 NIL 0.40 0.07 HDFC, AXIS, OBC, IDBI, ICICI, IndusInd, SBI, UBI, BOI ICICI Direct 750 NIL 0.75 0.18 ICICI Bank Indiabulls 750 250 0.40 0.10 N.A. Kotak Street 500 N.A. 0.50 0.06 Kotak Bank & Citibank HDFC Securities 700 NIL 0.50 0.15 HDFC & Other 4 Banks
- 34. INDUSTRY ANALYSIS USING PORTER’S (5 FORCES MODEL) POTENTIAL ENTRANT Investment Various Banks SUPPLIERS Web maintainers NSCL CSDL NSE BSE MCX NCDEX COMPETITORS ICICI Web Trade Ltd 5paisa.com Kotak Securities Ltd India Bulls MotilalOswal Securities Ltd BUYERS Small Investors Franchise/Business Partners HNI’s MF Companies HUF Institutional Investors SUBSTITUTES Mutual Funds Insurance Bank FD
- 35. (Chart – 2) SWOT Analysis 1. Strength of Sharekhan Scale Growing retail network across 279 franchisees + 115 branches * 1950 Share Shops* 575 cities* Technology Robust platform Processing 150000 transactions everyday Scalable to 750000 at very low cost/time Human capital 1. 1650 employees and growing low turnover rate compared to Industry. 2. Standards performance- driven work ethics. Brands One of the most visible brands since inception among the top 3 Retail brokers in India. Table-2 (* Data as per the Sharekhan Value Guide, JUNE 2014)
- 36. 2. Weakness of Sharekhan Lack of enough promotional measures or advertising No. of trading centers are less compared to other stock broking companies. 3. Opportunities to Sharekhan Scope of expansion Increasing interests and knowledge of people towards share market 4. Threats to Sharekhan Competition from major stock brokers and new entrance Introduction of new technology
- 37. WHAT DOES SHARE KHAN OFFER?
- 38. Share khan offers online trading account through which a customer can buy and sell shares in an instant from any part of the global trough website. It does not take account any type of physical restriction of going to the broker for carrying out a transaction or any type of settlement of payment. It facilitates the customer a speedy and hassle free transaction. Share khan’s product consists of a 3-in-1 concept, which integrates; 1. Trading account 2. Demat account 3. Linking with the saving account. Through its trading account, a share khan customer can directly transfer his fund from his savings bank account affiliated to share khan to his trading account without any paper work. He can buy and sell shares from the website and also view the market prices of the shares he trades on the terminal. To open an account a customer requires filling up a form consisting of agreements, a passport size photograph, a residential proof, a photo id proof and a cheque drawn of respective amount in favor of S.S.kantilalishwarlal securities private Ltd. After opening an account with share khan, a customer will be given user id, membership password and trading password, which will enable him to access his account and trade.
- 39. RESEARCH DEPARTMENT All the suggestion, tips and high performance trading recommendation are received from the research team of share khan consisting of 38 dedicated analysts who have years of working experience in the industries that they track, and a proven track record in using their knowledge of the investment science to deliver results. Share khan boasts of strike rates as high as 70-90% in booking recommendations in the money. “The company believes in not to lose money and to make some.” Depository services. Portfolio Doctoring Alpha Delivery Wealth of content and tools to help you make sound investment decisions. Stability and security. Substantial shareholding by prestigious foreign institution. Personalized attention.
- 40. PRODUCT AND SERVICES OFFERD BY SHAREKHAN 1. Sharekhan Depository Services Dematerialization and trading in the demat mode is the safer and faster alternative to the physical existence of securities. Demat as a parallel solution offers freedom from delays, thefts, forgeries, settlement risks and paper work. This system works through depository participants (DPs) who offer demat services and the securities are held in the electronic form for the investor directly by the Depository. Sharekhan Depository Services offers dematerialization services to individual and corporate investors. Sharekhan is a registered Depository Participant (DP) with National Securities Depository Ltd. (NSDL). It has a team of professionals and the latest technological expertise dedicated exclusively to our demat department, apart from a national network of franchisee, making our services quick, convenient and efficient. At Sharekhan, the commitment is to provide a complete demat solution which is simple, safe and secure. 2. Investment Avenues a. Equity Shares Equity shares represent ownership capital. As an equity shareholder, you have an ownership stake in the company. This essentially means that you have a residual interest in income and wealth. Perhaps, the most idealistic among various investment avenues, equity shares are classified into the blue chip shares, growth shares, income shares, cyclical shares, speculative shares by stock market analysts.
- 41. 3. Mutual Funds: Instead of directly buying equity shares and/or fixed income instruments, you can participate in various schemes floated by mutual funds which, in turn invest in equity shares and fixed income securities. 4. Life Insurance: In a broad sense, life insurance may be viewed as an investment. Insurance premiums represent the sacrifice and the assured sum of the benefits. 5. Precious Objects: Precious objects are items that are generally small in size but highly valuable in monetary terms. Some important precious objects areGold and Silver, Precious stones or Art objects
- 42. 6. Financial Derivatives: The most important financial derivatives from the point of view of investors are; Options Futures 7. Commodity: Today the business is not limited to our area only. Where the production is less but, demand is comparatively high prices of the product will go up. On the contrary where the production is high but demand is comparatively low the prices will go down. If sellers and buyers come together at a place then it will create a market. Here against one seller there will be more than one buyer. In this market buyers will come across the country for transactions. In this market not only producer and seller are included but arbitrageur, speculator, and hedger can tread. In this way the total area of market will become broad.
- 43. In our country agricultural products from 25% of GDP. Total turnover of commodity of market is nearly Rs.1, 10,000 corers. In which 60,000 corers comes from agriculture and left is coming from coal, crude, etc. Today in our country most of the trade is done in unorganized market. In the market current and future contracts are done. Promissory contracts have been started science 1875. But due to some restriction it was not properly worked. Presently nearly in 122 commodities tread is being done. 8. Currency Currency futures are standardized foreign exchange contracts traded on a recognized stock exchange to buy or sell one currency against another on a specified future date, at a price specified on the purchase or sale date. It is a contract to exchange one currency for another currency at a specified date and a specified rate in the future. Therefore, thebuyer and the seller lock themselves into an Exchange Rate for a specific value or delivery date. There are three participants of currency: Hedgers Hedgers face risk associated with the price of an asset. They wish to eliminate or reduce the price risk to which they are already exposed. They use futures or options markets to reduce or eliminate this risk.
- 44. Speculators Participants who wish to bet on future price movements of an asset. Futures and Options contracts can give them leverage(i.e. by putting in small amounts of money upfront, they can take large position in the market) As a result of this leveraged speculative position, they increase the potential for large gains as well as large losses. Arbitragers They work for making Profits by taking advantage of discrepancy between prices of the same product across different markets. They profit from price differential existing in two markets by simultaneously operating in two different markets e.g. If they see the future price of an asset getting out of line with the cash price, they would take offsetting position in two markets to lock in the Profit.
- 46. MARKETING DEPARTMENT The main aim of marketing activities at Sharekhan is that the customer should get enough guidance to join the company and how he can get the best service than any other stockbroker. There is an officer for handling the marketing activities followed by two executives and it is not limited to them but the other people are also having some responsibilities to increase the no. of clients and retain them by providing them the services needed by them. There are many services those are designed such that the specific target segments of the customers are covered and the products are positioned in the minds of customers as the best one in India. The services are as given below: Sharekhan is India’s leading national network of stock-broking outlets. It is having the largest retail distribution chain in India. Sharekhan is not only a share-broking firm, but it avails of various services and other financial products to its clients. 1. Offline Trading facility 2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading and NEAT, i.e. National Exchange Automated Trading) 3. Free access to investment advice from Sharekhan’s Research team. 4. Derivatives trading, i.e. Futures and Options (through NEAT F&O) 5. Internet based online trading. 6. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc
- 47. FREE ACCESS TO INVESTMENT ADVICE THROUGH R&D The Research and Development at Sharekhan is done at its Head office Mumbai. From there it forwards the relevant data and tips on particular shares and scripts at the relevant time. The R&D department Head Mr. HemangJani forwards all the details regarding all stocks and scripts to all the branches through internet. At the end of each trading day there is a Teleconference, through which the R&D department Head Mr. HemangJani talks with each Branch heads and discusses about each day’s closing position and shows their predictions about next day’s opening position. The quarries regarding stock positions and other relevant matter of the branch heads of each branch is being solved through teleconference. The various publications of Sharekhan viz. Commodities Buzz, Commodities Beat, Commodity Trader’s corner, Sharekhan Xclusive, etc. are being prepared by the research team of Sharekhan made up of highly experienced people from diverse field ONLINE IPO Online IPO (Initial Public Offering) is a new service started by Sharekhan for providing the application form of any company’s issues of just like the TCS issue can be subscribed by filling an online form to reduce the paper work and the fund transfer facility is also provided to the clients for transferring the funds online. It is given on its web-site for helping the clients who are not able to collect the forms manually and the speed of filling and reducing the risk of misplacing of forms, not reaching in time, etc.
- 48. MARKETING MIX The marketing mix of Sharekhan is an excellent example we have seen in the industry because no other brokering organization has such products to target the investors of different minds, incomes and aims. There is an objective of satisfying the customer as to make him delighted with affordable prices and convenient services. The fourth P of the marketing mix is the best at Sharekhan in India because the total no. of share shops are widespread all over to have the maximum contacts and awareness about Sharekhan, and we can say that it has achieved that because it is having the maximum turnover than any other broker in India. The Classic, Speed Trade and Speed Trade Plus are the trading products, which are one of the bests in the market. The marketing is done based on leads generated through the web contact; tele-contact and personal contact with the customer and is a planned procedure to find out new customers. The marketing management is carried out in an excellent way at Sharekhan.
- 49. PRODUCTS OF SHAREKHAN Sharekhan‟s products are basically divided into online and offline products. Off - Line Other Services Other Services: SHAREKHAN Trade tiger On - Line Classic Speed Trade 1. Equity Trading 2. Depository Services 3. Commodity Trading 4. Derivative Trading (F&O) 5. Mutual fund 6. Portfolio Management Services 7. IPO 8. Insurance 9. Currency 10. NSEL Dial and Trade
- 50. OFF-LINE TRADING ACCOUNT: The Off-Line account is trading account through which one can buy and sell through his/her telephone or by personal visit at sharekhan shop. This a/c is for those who are not comfortable with computer and want to trade. ON-LINE TRADING ACCOUNT: The Online trading facilities provided by Sharekhan is basically divided into two types of accounts, viz. Classic Account and Speed trade Plus and Streamer. 1. Classic Account The CLASSIC ACCOUNT is a Sharekhan online trading account, through which one can buy and sell shares through our website www.sharekhan.com in an instant. Along with enabling access for you to trade online, the CLASSIC ACCOUNT also gives you our Dial-n-Trade service. With this service, all you have to do is dial 1- 600-22-7050 to buy and sell shares using your phone. 9 Features of the CLASSIC ACCOUNT that enable you to invest effortlessly- 1. Online trading account for investing in Equities and Derivatives via sharekhan.com 2. Integration of: Online trading + Bank + Demat account 3. Instant cash transfer facility against purchase & sale of shares 4. Reasonable transaction charges 5. Instant order and trade confirmation by e-mail 6. Streaming quotes 7. Personalized market watch 8. Single screen interface for cash, derivatives and more
- 51. 9. Provision to enter price trigger and view the same online in market watch 2. Speed Trade: SPEEDTRADE is an internet-based software application that enables you to buy and sell shares in an instant. It’s ideal for active traders and jobbers who transact frequently during day's trading session to capitalize on intra-day price movements. Speed Trade also provides the features of and functionality of trading in derivatives from the same single-screen interface. 7 Features of Speed trade Plus that enable you to trade effortlessly- 1. Instant order Execution & Confirmation 2. Single screen trading terminal 3. Real-time streaming quotes, tic-by-tic charts 4. Market summary (most traded scrip, highest value) 5. Hot keys similar to a brokers terminal 6. Alerts and reminders 7. Back-up facility to place trades on Direct Phone lines
- 52. A/C Opening Charges Rs.1000 (onetime Charge). For 1st Year Demat A/C is Free, from 2nd Year AMC charge is 400 per/year. ShareKhan has tie up with 13 banks through which one can transfer or withdraw his fund online. Which are as follows: 1. HDFC Bank 2. IDBI Bank 3. AXIS Bank 4. OBC Bank 5. CITY Bank 6. Indusind Bank 7. Union Bank of India 8. ICICI Bank 9. SBI Bank 10. BOI Bank Anyone who have A/C either of above banks they can use this facility. Otherwise one has to make fund transfer or withdraw by cheque.
- 53. PROMOTION Promotional activities at Sharekhan are done by web, e-mails and personal contact. Sharekhan is also organizing seminars and presentations and promotes its services to the clients. It is spending Rs.20000 per month for promotional activities. As explained earlier, Sharekhan is having the largest distribution chain of retail outlets of share shops. And it can be seen also because there are 180 share shops in 90 cities, which gives the maximum awareness to Sharekhan. The distribution of Sharekhan is also proved by its turnover and awareness among the investors in the stock market. The marketing strategies followed by Sharekhan at this point are as given below: The excellent marketing mix i.e., the Product-Price-Place-Promotion and for services additional 3Ps viz. People, Process and Physical evidence, are managed according to the needs of the customers and try the best to deliver the maximum value to the customers for what they pay a price. The HR and Operations are one of the best at Sharekhan to help the customers for getting the needs fulfilled with a family culture and atmosphere of harmony, peace and brotherhood and it is focusing on the specific segments like HNI, Delivery-based and Intra-day trader
- 55. FINANCE DEPARTMENT Like blood is the most important factor in our body, Finance is the blood of any business. Finance is needed for all the activities like production or services as well as their distribution. The finance department directly influences all the functions of the other departments. Also finance has to give equal importance to all departments. Finance is that administrative area or set of administrative function in an organization may have the means to carry out its objective as satisfactorily as possible. Sharekhan has special accounts department for separate calculation of pay-in and pay-out of funds according to the client’s Profit/Loss. Finance management is done at Sharekhan is done by managing the stocks in the demat accounts and funds in the margin & trading FINANCE DP ACCOUNT Finance is the lifeblood of an organization to continue its activities and the finance management at Sharekhan can be divided into two major parts viz. DP (Depository Participation) and Accounts management, which are shown in the figure given above.
- 56. DP is treated as a separate department at Sharekhan and is covered in the back office management in the organization structure. In simple words, DP means providing the facility to the clients for managing the stock bought/sold by them. DP covers two major terminologies viz. settlements and the auction which is a part of managing demat account. Settlements as defined by SEBI (Securities Exchange Board of India) are T+2, currently and it means that the demat account of the clients are prone to be sufficient for selling a script with no debit at all, i.e., the account must have the sold amount of stock to fulfill the settlement after 2 days from trade-day. The settlements for Day-Traders is not needed because they buy/sell stocks in that particular day, only the delivery trades are needed to be settled because if you sell 1000 shares of, say SAIL then your account must have the stock before you sell it or it must be there in you demat before the next days trading begins (market opens). Generally, the timings are 9:30 and 3:00 as a deadline for the client and he must provide the stock for giving a delivery to the buyer. The chart show the total transaction between two clients: C DP (Sharekhan) E DP (anyone) C The chart shows the process that the request for selling and buying passes through the DPs of the respective clients and finally the exchanges like SKSE (Saurashtra Kutch Stock Exchange) becomes the controlling intermediary for the delivery of stocks and this process is done in two days. Nowadays, as banks are becoming fast for E-Fund Transfer (EFT) and Phone-banking is getting more popularity, SEBI is thinking to make the financial market of India to have a maximum speed of
- 57. transactions just like the other nations in the world and proposing for T+1 settlement scheme but the system is not enough competent for that thing. The client, if not capable of providing the delivery of say, 1000 shares of SAIL then the Auctions are initiated by the exchanges and the client has to pay for the price prevailing in the market with 4-5% penalty. The penalty can go on maximum to 20% more than the market price of the sold stock. Generally, it is known as a buying auction and a same kind of auction is for selling the stock for which the buyer was proved unable to pay the price is carried out by exchange, known as the selling auction. And a debit or credit note is provided in the respective case of auction to the clients, i.e., for buying auction debit note is given on the T+4 basis and in case of selling auction the credit note is given on T+5 basis. There are two types of auctions called as Internal auctions & Market auctions, the internal auctions are defines as the auctions carried out between the other shops of Sharekhan and market auctions are those as explained earlier, the auction carried out in the market. This is all about settlements but now switch to funds management or accounts management at Sharekhan. The accounts are different that is the margin a/c for deposits of the client and trading a/c for which Profit/Loss are settled. The collection of funds from the clients who had a debit balance or made a loss are made on the next day of trading and the payments to the profiting traders are made after two days of trading because the cheques are received from H/O and then pay-out is done and Pay-in is as explained that amounts to be taken from the clients. In this way, accounts are managed but in case if the client is unable to pay, the deposit from the margin a/c is cut down to the payments and in case if a client is having a credit balance in F&O trading though he had a debit balance in cash-NSE
- 58. & BSE trading, a JV request is sent to H/O for totaling the three balances. The main aim for accounts management is that the clients must have a credit or no debit on the next day. The DP services provided by Sharekhan are falling under the regulation of NSDL (National Securities Depository Limited) and CDSL (Central Depository Services Limited), organizations governed by SEBI to regulate the depository services in the interest of the investors. So, the financial market in India is governed by Ministry of finance under which two major bodies viz. SEBI & RBI are covered and under RBI the banks and other financial institutions are covered while SEBI covers the exchanges, NSDL & CDSL and the whole DP service providers with the brokers to the investors. In this way we have gained a meaningful knowledge about India‟s financial market and its structure from this training at Sharekan. In this way, the finance function is carried out at Sharekhan by following the guidelines given by SEBI. And the company is a private limited one with its own policies for disclosing its financial statements, so we are not able to give any figures for showing the financial position of the company.
- 59. SHAREKHAN- ONE OF THE FASTEST GROWING FINANCIAL SERVICES COMPANY IN INDIA Network 10 lakhs Customers & Growing 82 Online Business is 50% 1500 Share Shops across300+Cities 800 700 600 500 400 300 200 100 > 3000employees Most preferred broking website in India 147 176 228 410 607 704 0 2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 Sep-07 Winner of Chip magazine’s ‘Best Financial Website Award’
- 61. HUMAN RESOURCE DEPARTMENT Human resource is the crucial resource that a company can use to grow with the work of the employees. HRM activities at Sharekhan start form induction to the
- 62. specific job training and are done by H/O at Mumbai. H/O takes a written test and selection interview for filling up vacancies in branches but the recruitment is done by the branch itself and the selection is performed by H/O from the screened applicants. Any new recruit is firstly inducted to the company and sent to T & D department that is covered under HRD and T & D programmes makes employees aware about all the activities/jobs within the department he/she is to be recruited. Then the specific job training is provided at H/O and the person has to keep in touch with the concerned department at H/O on internet because he/she has t solve many conflicts arising in the investor‟s mind and to have an up-to-date information regarding the procedures and any new facilities or policies to resolve the problems of the clients. HRP (Human Resource Planning), HRIS (Human Resource Information System), Recruitment & Selection, Career planning and development, Assessment & development of employees for Performance appraisal, etc. activities of managing the HR at Sharekhan is maintained in a way to meet the requirements. The corporate culture at Sharekhan is maintained in such a way that the people are helpful to each other and eager to get the work done as soon as possible with a co-operative thinking. An additional Rs.10000 is provided for each outlet of Sharekhan to motivate its employees by performance appraisal and also the heads of each departments and branches has to go through a 3606 performance appraisal for maintaining the consistency in growth of the company. In the end we can say that the human resource of Sharekhan is a best managed and used for the continuous growth and development of the company for its future plans to be achieved time-to-time.
- 64. OPERATIONS STRATEGY AT SHAREKHAN Operations strategies are implemented in Sharekhan as shown in the chart given above and the main points of consideration are Efficiency, Dependability, Quality and Flexibility. The points demand a facility mission that is made up of process, capacity, facilities, vertical integration, and infrastructure facilities provided to get the desired outputs as per the plan. The main aim of the operations strategy at Sharekhan is that the efficiency of the organization and high level of it is desired outputs with low costs, i.e., productivity with effectiveness. Quality should be high and consistent in delivering services; Flexibility is related with fast introduction of new services and providing a wide range to select an option to the customer. This is facilitated by the process of operations, capacity/ability of the organization, competitive advantages, vertical integration and the infrastructure created by the firm. Sharekhan plans the strategies to get a working plan from it and the planning is done from top-to-bottom level, i.e., national level, regional level, divisional level and the branch level planning is carried out by the managers. In this way, the Operations are managed with the best efforts in a direction that is to facilitate future plans by achieving success in time and create milestones in the industry by driving the company with excellence.
- 66. RESEARCH OBJECTIVE The main objective of the study is to check consumer behavior towards online trading in stock market among the people of Rajkot City. The objective of any research is basically divided into two categories. Primary Objectives To study the “consumer behavior toward online trading in stock market”. Secondary Objectives To study trading frequency through online trading To study investment decision making in online trading To study over all influence of online trading to the security market.
- 67. RESEARCH METHODOLOGY SOURCES OF DATA: The task of data collection begins after a research problem has been defined and research plan chalked out. While deciding about the method of data collection to be used for the study, first of all the sources of data must be very clear. There are basically two sources of data. Primary Data Source: The primary data are those, which are collected afresh for the first time for the problem solution, and thus happen to be original in character. It may be obtained from individual, families and representative or from organization. Secondary Data Source: The secondary data are those which have already been collected by someone else and which have to decide which have already been passed through the statistical process. Externally, these sources may include books or periodicals reports, data services and computer data banks. In the context of the project study, the source of data used by me for this project is primary type of sources. The primary data source is the respondents who have filled the questionnaire.
- 68. SAMPLING PLAN: Sampling Unit: The sampling Unit is the entity to which we have to follow during the whole research study.In the context of the project study, the sampling unit primarily consists of Individuals who may be Businessmen, Professional, Government employee, Employees working in the private firmAnd other persons. Sampling Size: It plays an important role in the research. Samples are representative of the whole population. This refers to the no. of items to be selected from the universe to constitute a sample. In the context of the project study, 75 respondents are chosen keeping in view the above constrains. Attempts have being made to see that samples are chosen from different strata. 1. Sampling Methods: There are various methods of sampling in the context of my project study I have selected Non-probability Sampling Method. And under that, I have taken Convenience Sampling. Under this I prepared a simple questionnaire to collect the information.
- 69. 2. Data Collection Method: Data collection is done basically in three ways: Observation Method, Survey Method and Questionnaire. And in the context of my project study, I have selected questionnaire method for collecting the data. 3. Data Analysis & Interpretation: Data analysis is based on the data collected by the questionnaire. From the collected data findings are extracted. The data is tabulated and frequency distribution chart is prepared. i. Data Analysis By Charts: Charts make easy to understand. Therefore I have use pie chart and histogram to present the data.
- 70. REVIEW OF LITERATURE 1. Intention To Adopt Online Trading: Identifying The Future Online Traders Yinghao Mickey Li, Jinkook Lee and Brenda J. Cude This paper is based on the first author's thesis, which won the 2002 American Council on Consumer Interests thesis award. The dataset was provided to the second author by Larry Cohen, the director of Consumer Financial Decisions of SRI Consulting Corporation. This paper proposes that investors' intention to adopt online trading in the future is influenced by investment, psychology, technology and demographic factors. Data from the 2000-01 Macro Monitor database are employed in this study. Macro Monitor is a biennial survey conducted by the Consumer Finance Decision section of SRI Consulting Corporation. The sampling method of the survey is two-stage random sampling. The first step is a stratified disproportionate random sampling. And the second step is a simple random sampling. Sample size was 3759 household in 2000 in U.S. Among the investors, there were 389 current online investors and 1,066 current offline investors. On average, online investors were younger than offline investors and had more education than offline investors. Online investors traded 29.2 times a year, while offline investors traded only 7.1 times a year. In terms of trading volume, online investors also traded a larger sum of money than offline investors.
- 71. 2. Impact of online trading on customer satisfaction in Tehran stock exchange DelbarJafar Pour, Lulea University of technology - master thesis, continuation courses - marketing and e-commerce. The aim of the study is to indicate how Indian traders rank quality factors and if online trading system could enhance their satisfaction level or not? For research distributive and explorative research designs are used and for data collection survey method is used. There were 300 invitees were invited for the purpose of survey. Result shows that there is a meaningful difference between traders’ satisfaction in conventional stock exchange. And existence of online trading system in stock exchange can raise the degree of traders’ satisfaction.
- 72. RESEARCH ANALYSIS AND INTERPRETATION 1. Different age group of respondent: AGE % Below 30 54 31 – 45 32 46 – 60 11 Above 60 3 Chart Title 0% 11% 3% 32% 54% AGE Below 30 31 – 45 46 – 60 Above 60 From the above chart we can know that young persons are interested in investing in stock market and also it shows their risk taking willingness and accurate decision making ability. If look at adult group then they are also little bit taking interest in stock market.
- 73. 2. Education: EDUCATION % Undergraduate 23 Graduate 48 Post graduate 29 23% Education 48% 29% 60% 50% 40% 30% 20% 10% 0% Undergraduate Graduate Post graduate Above chart shows that more graduate people takes initiative towards stock market working than under graduates and post graduates It can also be derived from the chat 4 that people who are younger and graduates would like to work in stock market.
- 74. 20% 40% 29% 11% Occupation Professional Businessman Working in Pvt. Firm Government Employee 3. Occupation: OCCUPATION % Professional 20 Businessman 40 Working in Pvt. Firm 29 Government Employee 11 As businessmen are more accurate decision makers and also risk takers, therefore they takes more interest in stock market working. Compare to professional, government employee and working in private firms. While employees working in private Firms are also growing as stock market investors.
- 75. 4. Where do you invest your savings? Use of Saving Option % Bank FD 10 Mutual Fund 28 Shares / Equity 42 Insurance 15 other 5 45 40 35 30 25 20 15 10 5 0 Bank FD Mutual Fund Shares / Equity Insurance other
- 76. If we evaluate all the above charts then we can make note that younger, graduate and businessmen are stock market investors, therefore it directly implies more use of their savings in stock market as shown in chart. While about 13-18% of saving goes tobank FD, mutual fund, insurance. And due to increasing knowledge, risk taking willingness and changing market trend, very less people goes to postal schemes investment. 5. Do you participate in equity market? If yes, what best describes you as Participation as % No of participant Investor 65 45 Trader 35 25 % of participants Investor Trader As investment is safer than trading, therefore more portion of the market prefers investment to trading, in spite of existence of more risk takers. Portion of trading is not that much of less than investment, but due to involvement of more loss of money enables less people to go for it.
- 77. 6. In your opinion, which medium is the more reliable for trading in stock 36% 64% Medium for Trading Through Broker Online Direct Participant market? Medium for Trading % Through Broker 36 Online Direct Participant 64 Increased use of internet technology has lead people to go for more online direct participant. Online direct participant also gives some benefits of time and cost saving, less paper work and fast decision making.
- 78. 7. Out of following online traded products, in which you trade regularly? Online Traded Products % F & O 34 Cash 38 Commodity 21 Currency 7 Chart Title 34% 7% 38% 21% F & O Cash Commodity Currenncy As people more prefer investment in cash therefore is more online traded product F n O and commodity are traded nearby 21-38%. While currency is less preferable by respondents due to high risk involvement.
- 79. preferance of online trading 35% 26% 21% 18% Online Fund Transfer Comfortable Trading No Geographical Boundary Paperless Transaction 8. Why do you prefer online trading? Preference % Online Fund Transfer 26 Comfortable Trading 27 No Geographical Boundary 23 Paperless Transaction 26 From the above chart we can conclude that 35% respondent are doing online trading due to online fund transfer while 26% are because of the comfortable trading and 18-21% are doing because of the no geographical boundary and paperless transaction.
- 80. 9. Which online trading platform you prefer the most? Trading Platform % Trade Tiger 64 ODIN 8 NOW 9 Trade Racer/ Icici Direct 19 64 8 9 19 70 60 50 40 30 20 10 0 Trade Tiger ODIN NOW Trade Racer / ICICI Direct Trading Platform Most of the respondent are prefer the Trade Tiger for the trading than other because of the different features and options are available in trade tiger and the technical charts are also there.
- 81. 10. Which one will influence your online trading decision making? 8% 11% 13% 15% 13% 15% 14% 11% Influencer Independently Broker/ Agent's Advice News Channels Newspapers Advice of Friends/ Colleagues Internet Well-Known Stock Broking House Business Magazine Influencer % Independently 8 Broker/ Agent's Advice 11 News Channels 13 Newspapers 15 Advice of Friends/ Colleagues 13 Internet 14 Well-Known Stock Broking 15 House Business Magazine 11
- 82. From the above chart we can conclude that more of the respondents are influence through the newspaper or by the well know stock broking house decision. 14% are from the internet and 11-13% are by the Brokers/ agent’s advice, business magazine, news channels and friend’s advice. And only 8% are take the decision by their own. 11. What is the order of importance for you as online market participant? % Fast Executive System 42 Much Cheaper 35 User Friendly 23 Preference in online Market 42% 23% 35% Participant Fast Executive System Much Cheaper User Friendly (Table – 13) (Chart – 14) From the above respondent we can say that the 42% are using the online trading platform for the fast executive system and 35% are because it is much cheaper than the other ways and 23% are using it due to the user friendly.
- 83. 12. As an online market participant what is your participant’s status? 39% 33% 28% Type of Investor Long Term Short Term Intraday Type of Investor % Long Term Investor 39 Short Term Investor 33 Intraday Trader 28 Above chart shows that the 39% respondents are want to be a long term investor which will lead them towards the wealth maximization an 33% want to be a short term investor and want to earn money in short span of time while the 28% are the intraday traders.
- 84. LIMITATIONS This exploratory research is done in the Rajkot city only and therefore findings and suggestion given on the basis of this research and cannot be considered for the entire security market of India. Due to limitation of time and cost constrains, a sample size of only 75 respondents was chosen. Data analysis and interpretation done may not be that strong due to small sample and random sampling method. And also the views of respondents of Rajkot towards online trading may not reflect the overall scenario. Respondents taken for the study were most of from the Sharekhan, therefore true picture of the stock broking companies can also not be seen from the study.
- 85. FINDINGS From the research objective following can be interpreted; 40 % of businessmen are risk takers and they prefer trading and out of that 15% were doing intraday trading. Out of 48% graduate 15% of employees working in private firm and 20% post graduate working as government employee. 15% of Private firm Employees prefer Bank FD and 40% of Private firm Employees prefer mutual fund investment compare to others There were 33% of the businessmen investing in shares out of all the investors. 35% of businessmen and 34% of Private firm Employees were online traders Out of all the online traded products 25% of F &O preferred by Private firm Employees, 29% of equity preferred by businessmen, 15% of commodity preferred by Private firm Employees and 5% of currency preferred by Private firm Employees Out of all the long term investors, 50% were Private firm Employees, Out of all the short term investors20% were Private firm Employees and Out of all the intraday traders 40% were businessmen Thus we say that online trading has gained more attention of today’s generation and more no. of businessmen and Private firm Employees are taking initiative towards stock market working. It can be said that consumer behave rationally, are risk takers and also they prefer keeping pace with changing technology i.e.; online trading.
- 86. RECOMANDATION As the analysis makes it clear that there is potential market for online trading in the region of Rajkot, but this market needs to be explored because Stock broking companies are not able to convert mutual fund investors into stock market investors. Some of the few recommendations based on the above research are: From the tests it can be reccomandated to the sharekhan that it should attract more businessmen and Private firm Employees, because they are the persons possessing IT infrastructure. Many people don’t do this business because of the lack of the proper market knowledge. And hence they should be made aware of the trends of the market. People prefer Online trading as a secondary business, because liquidity is high in this business. Therefore, some steps should be taken to explain this scenario to all the knowledgeable class by proper marketing. Trusted brokers get easily online traders because of timeliness and right tips on trading; therefore Sharekhan should make its brand name strong enough to convince the customer for online trading through more advertisement. Online trading requires fast and effective decision making, therefore company should held regularly seminars, coaching class and make its customer aware of true extent of risk and return Try to remove myth of money losing from stock trading from the minds of people by providing some help in decision making and schemes.
- 87. CONCLUSION The objective of this study is to develop a theoretical model to explain and predict the stock traders' behavioral intentions to use online trading by using the concepts of perceived benefit, perceived risk and trust. This study reveals that perceived risk is a more important influential factor than perceived benefit in online trading decision making. However, building a risk-free online stock trading environment is much more difficult than providing benefits to customers. Online trading companies need to search for risk-reducing strategies that might assist in inspiring high confidence in customers. This study suggests that online trading companies should consider focusing more on the prevention of intrusion, fraud and identity theft. The current generation of investors is trading very actively by historical standards. Investors are flush with cash, partly because of a robust economy, and partly because they are borrowing aggressively. Very active investors are often making decisions in a situation of high uncertainty. On-line investors have concentrated their trading in e-commerce and other high-tech firms. Many e-commerce firms have novel, untested business plans. Many have little or no earnings. Online brokers should provide customers with digital receipts or a guarantee for every transaction in order to increase customers' confidence with regard to online trading. Customers may be willing to trust in online trading if they're confident that the service providers stand behind their service.
- 88. BIBLIOGRAPHY Capital Market (Sep 16 – 29, 2013, Vol. XXVIII/15) Sharekhan Value Guide – June- 2014 Sharekhan Value Guide May – 2014
- 89. APPENDICES 1. List of Tables: Sr. No. Particular Page No. Table -1 Shareholder & Shareholding Pattern 22 Table -2 Strength of Sharekhan 24 Table -3 Age 53 Table -4 Education 54 Table -5 Occupation 55 Table -6 Saving Option 56 Table -7 Participation as 57 Table -8 Medium of Trading 58 Table -9 Online Traded Products 59 Table -10 Preference 60 Table -11 Trading Platform 61 Table -12 Influencer 62 Table -13 Trading Platform 63 Table -14 Type of Investor 64
- 90. 2. List of Charts: Sr. No. Particular Page No. Chart -1 SSKI Group – Corporate Structure 22 Chart -2 Industry Analysis using Poter’s 5 Force Model 23 Chart -3 Products of Sharekhan 35 Chart -4 Age 53 Chart -5 Education 54 Chart -6 Occupation 55 Chart -7 Saving Option 56 Chart -8 Participation as 57 Chart -9 Medium of Trading 58 Chart -10 Online Traded Products 59 Chart -11 Preference 60 Chart -12 Trading Platform 61 Chart -13 Influencer 62 Chart -14 Preference in Online Market Participant 63 Chart -15 Type of Investor 64
- 91. Questionnaire 1. Name: ……………………………………………………………………… 2. Age: a. Below 30 c. 46-60 b. 31-45 d. Above 60 3. Education: a. Undergraduate b. Graduate c. Post graduate 4. Occupation: a. Professional c. Working in Private Firm b. Businessman d. Government Employee 5. Where do you invest your savings? a. Bank FD b. Mutual Fund c. Shares / Equity d. Insurance e. Others
- 92. 6. Do you participate in equity market? If yes, what best describes you as a. Investor b. Trader 7. In your opinion, which medium is the more reliable for trading in stock market? (Give rank 1 for most reliable) a. Through Brokers b. Online Direct Participation 8. Out of following online traded products, in which you trade regularly? a. F & O c. Commodity b. Cash d. Currency 9. Why do you prefer online trading?(Give your rank 1 to the most imp and 4 for the lest imp) a. Online Fund Transfer c. No Geographical Boundary b. Comfortable Trading d. Paperless Transaction 10. Which online trading platform you prefer the most? a. TRADE TIGER b. ODIN c. NOW d. TRADE RACER e. ICICI Direct
- 93. 11. Which one will influence your online trading decision making? (Give Rank 1 to the most imp and 8 for the lest imp) a. Independently b. Broker/ Agent’s Advice c. News Channels d. Newspapers e. Advice of Friends / Colleagues f. Internet g. Well – Known Stock Broking House h. Business Magazine 12. What is the order of importance for you as online market participants? Fast executive system Much cheaper User friendly 13. As an online market participant what is your participant status? Long term investor Short term investor Intraday trader 14. Name any online stock broking company that you like to recommend?