SIP PROJECT REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENTS FOR THE MBA PROGRAMME
BY HITESH PATNI 2013108
SUPERVISORS: Mr. SAURABH PATEL Dr. JAGANATH MOHANTY
INSTITUTE OF MANAGEMENT TECHNOLOGY, NAGPUR PGDM PROGRAMME, BATCH: 2013-15
ACKNOWLEDGMENT
Experience is the best teacher. Knowledge is one of the most important tools. Theoretical knowledge is proved right only often it is rightly applicable on practical base. Whenever a piece of work is completed successfully, a source of inspiration and guidance is always there for students. We take this opportunity to express our profound gratitude towards Rupeeseed for allowing us with this opportunity to perform our Summer Internship Program in their esteemed organisation. We would like to extend our deepest regards and gratefulness to Mr. Saurabh Patel, who was our Company Mentor. His exemplary guidance, monitoring and constant encouragement throughout the course of this study made the successful completion of this project possible. In addition to the subject matter, his counsel on various other issues enhanced our knowledge and outlook. It is my proud privilege to release the feelings of my gratitude to several persons who helped me directly or indirectly to conduct this project. I express my heart full indebtedness and owe a deep sense gratitude to my Faculty Guide Prof. Jaganath Mohanty, Institute of Management Technology, Nagpur for his sincere guidance and inspiration in doing this project. I extend my gratitude to Institute of Management Technology, Nagpur for giving us this opportunity. I also thank to all members working with me who have more or less contributed to the preparation of this project report. I will be always indebted to them. Finally I would like to thank everybody at Rupeeseed family for making me feel comfortable and helping me in every possible manner.
3. Objectives of the Study .............................................................................................. 11 4. Brief description of the concepts/models used and introduced in the study ... 12-13 4.1 Capital Market 4.2Investment 4.3 Stock exchange
5. Introduction to Internship ................................................................................... 14-15 6. Company Analysis ................................................................................................ 16-21 6.1 SWOT
6.2Total Clients
7. Tabulation of Findings/Result .................................................................................. 22 8. Interpretations and Conclusions/ Summary ........................................................... 23 9. Recommendations ...................................................................................................... 24 10. Limitations of the Study ............................................................................................ 26 11. Scope for future improvements ................................................................................ 27 Bibliography
1. Executive Summary I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years. Warren Buffett
We are living in an era of money making, stock market where by with our analysis, judgement we can invest in the shares and can booked profit. You can definitely have a loss also. There are two faces of everything. So this SIP was based on the software named Rupeeseed. A software where the people will get proper analysis of all the shares, through different means and will tell the customers whether there will be profit for booking particular share or loss. It is completely for the share brokers who have clients of them, Besides there personal analysis they can can completely rely on this software and can refer there clients. The steps were like, Firstly appointment with the broker, Than installing the demo in there computer, Even many liked and took time for 3-4 days for analysing the software. Than if the broker wishes to buy it , then there were different packages for that. Rupeeseed is the software that completely benefitted to the clients and customers in the era where everybody wants profit in the share market. This internship echoes on the following variables: Needs of Marketing, Study of Share market, logics and thinking of customers when we talk about share market, profit making world. In the end, Rupeeseed has given opportunity to us for a onsite marketing, got knowledge of share market, convincing the customers, How to deal with different types of client, In negotiating time how to be positive, Different strategies of marketing.
2. INTRODUCTION TO RUPEESEED At Acumen, we believe that life is all about dreaming a big dream, planning how to make that dream come true and then working towards achieving it. That's why we made it our driving force. And that is what we help our clients and associates to do.
2.1 Dream Cut to 1996: The Indian markets were still very small, largely unorganized, and more or less a closed & opaque market. A group of professional stockbrokers dreamed of changing that. The dream was to spread the equity market cult across the country and making investing a pleasant experience. The Idea was to take the markets to the investors instead of the investors having to come to the markets and to give them fair, transparent efficient & time bound services. It was with this dream that the Acumen group was born.
2.2 Plan A lot of planning was required to achieve the lofty dreams that the promoters had. The 5 most important areas were identified : Great Human resource. Entire range of financial products. Great Technology. Great Research and awareness program. Great Infrastructure & Reach. Once the fundamentals were identified, we set about the putting the plan into action. A good team was put in place, and HR policies were chalked out to fairly reward and retain our human talents. Memberships of all the leading exchanges, both in the capital markets (BSE & NSE for both Cash and futures segment), commodities markets (MCX, NCDEX and NMCE) and currency markets (NSE & MCX SX) were taken, as was that of NSDL for depository operations, and portfolio management license for managing client portfolios. We also took membership of DGCX, an international commodity and currency exchange based in Dubai. We are also members of the MCX SX. We now offer all financial products to our clients : Equity trading Commodity trading Currency Futures Interest Rate Futures Depository Services Mutual funds Insurance IPO We conducted training programmes across the country to make investors aware of the changes happening in the financial markets and the opportunities that were opening up, developed in-house research that were sent to our associates on a regular basis. Technical calls for intraday trading and investments calls are regularly given to all our clients over mail, chat, SMS and trading platforms. Our service is customer oriented and so we believe the dictum: Customer is the king. This ensures that our service and support adorns a cutting edge experience while dealing with us.
2.3 Core Values
For the last 20 years we have been guided by our core values of Trust, Integrity and Transparency. We give utmost importance to the trust you place on us and we can assure you that we will do everything to uphold the trust and ensure our commitment. Integrity and transparency in dealing runs deep in our organizational culture. We are very committed to these values and we do not waver in any circumstances. To ensure transparency we have started many services which keep tab of every penny that our customer transacts with us. We are sending you daily sms of your account balance or to displaying you portfolio and ledger details in single click. All our tariffs are uploaded upfront including the tiniest details of the service tax and all the other levies. Our client are very clear of what they are being charged upon and at what rates. We have been in financial services since 1996 and have grown from strength to strength. This clearly demonstrates the trust and goodwill we have gained from our customers and other stake holders.
2.4 Products and Trading Platform
Rupeeseed, One of the most advanced trading platform in India. Rupeeseed Trading Platform is one of the trendiest, simple to use and technologically advanced online trading platform in India. It offers trading in multiple asset class across various exchanges. In Rupeeseed we focus only on one thing, how quickly and simply the client can execute trades and how we can offer technologically advanced features which will help the client in making better decisions and in turn more profitable investments.
www.rupeeseed.com provides the online web platform for accessing the markets. The user interface design and the technology architecture has created an elegant fusion which not only has the rich interface with most easy navigation, it also have a robust technology ensuring quickest access, stability and uptime and live streaming quotes. Our online web platform is highly recommended for first time users as it helps the users to place their orders in a very simple and efficient manner. The portfolio section keeps a tab on the amount invested and the total corpus as on date with the money what has been made. All ledger reports and contract notes are available in one single click. Rupeeseed online web platform has been designed to ensure that you get all the information what you needed in the quickest possible manner with minimal clicks. Our web platform stands apart in terms of simplicity, rich interface0 and the relevant info which we provide to our clients.
Rapidrupee Rapidrupee is a very intuitive and feature rich trading terminal which gives the real trading edge to you. For the first time in India we have a trading system which correlates the historical data and the current market data to show you the real opportunities. rapidrupee is meant for well informed traders and dealers. rapidrupee is a new Analytics driven trading platform meant to give traders and edge. It combines intraday and historical data and has elaborate charts and technical analysis studies. With rapidrupee you can view your holdings, trade records, do real time fund transfer and much more. rapidrupee has a smart live scanner and trend scanner which captures the opportunities and shows it to the user the very second the event happens. Our users vouch for the ease and effectiveness of Rapid Rupee.
Mobirupee Mobirupee is advanced mobile trading app available in Android and BlackBerry. It will be available in Windows mobile and Iphone very soon. mobirupee provides all the features available in Online Web Platform in your mobile. Trade wherever you go. With mobirupee all market news, information and real time quotes are available on your finger tip
Rupeelite Rupeelite is meant for users who want quick access via mobile or desktop. It is also good for places where the internet bandwidth is very slow. It can be easily access even if the bandwidth is less than 128 KBPS. It has the entire feature as in Online web Platform minus the rich colors and images. Charting and Analysis Rupeeseed Trading Platforms provide in-depth technical analysis and studies. Get historical data in a single click. Our historical data handling ensure that you have negligible wait time while accessing historical data. Product and Offering Stocks, ETFs and Mutual funds Gold and Fixed Income Bonds Options Futures Commodities Future Currency Future Wealth Management and Advisory Services Demat Services Training in Capital Market
3. OBJECTIVE
To execute business for the Rupeeseed by selling online trading software: Marketing of the software and giving business to the firm by seeking different customers, giving them demo and selling of software. To study the various products of the company: Different products such as mobirupee, rapidrupee, to get knowledge about them. To know how to open and close the calls: Objective was how to start the deal with the lient and to how to end it. To learn the online terminal used for trading. It teaches us trading using the software which was onsite real terminal. To know how to handle various types of customers: Dealing with different types of customers and there logics, Clarifying them in all the ways, and to make them understand our software. To know various reasons for market fluctuations: Study of market and reasons of fluctuations of different shares. To gain practical knowledge of the market: Practical knowledge of market by working in a onsite live firm, knowledge of dealing with customers and there mind. To have a practical experience of working in a reputed organization: working in a rupeeseed, a reputated organization which has given the practical knowledge of all the spheres.
4. BRIEF DESCRIPTION OF THE CONCEPTS INTRODUCED AND USED IN THE STUDY 4.1 Capital Market Capital market is a market where buyers and sellers engage in trade of financial securities like bonds, stocks, etc. Capital markets help channelize surplus funds from savers to institutions which then invest them into productive use. Generally, this market trades mostly in long-term securities. Capital market consists of primary markets and secondary markets. Primary markets deal with trade of new issues of stocks and other securities, whereas secondary market deals with the exchange of existing or previously-issued securities. Another important division in the capital market is made on the basis of the nature of security traded, i.e. stock market and bond market. Capital markets have given one of the highest returns amongst all asset classes. Indian capital market is one of the advanced and robust capital markets in the world. It is heavily regulated and Indian capital markets provide settlement guarantee wherein there is no risk of default. From a economic growth of a nation too, capital markets play a very pivotal role. Capital markets are markets where people, companies, and governments with more funds than they need (because they save some of their income) transfer those funds to companies who require funds for new projects or expansions. It is generally advised that one portion of your savings should be in capital markets so as to ensure maximum overall returns.
4.2 Investment The money you earn is partly spent and the rest saved for meeting future expenses. Instead of keeping the savings idle you may like to use savings in order to get return on it in the future. This is called Investment.
Why invest? One needs to invest to: Earn return on your idle resources Generate a specified sum of money for a specific goal in life Make a provision for an uncertain future One of the important reasons why one needs to invest wisely is to meet the cost of Inflation. Inflation is the rate at which the cost of living increases.The cost of living is simply what it costs to buy the goods and services you need to live. Inflation causes money to lose value because it will not buy the same amount of a good or a service in the future as it does now or did in the past. Various options available for investment Physical assets like real estate, gold/jewellery, commodities etc. Financial assets such as fixed deposits with banks, small saving instruments with post offices, insurance/provident/pension fund etc. or securities market related instruments like shares, bonds,debentures etc. 4.3 Stock Exchange The Securities Contract (Regulation) Act, 1956 [SCRA] defines Stock Exchange as anybody of individuals, whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. Stock exchange could be a regional stock exchange whose area of operation/jurisdiction is specified at the time of its recognition or national exchanges, which are permitted to have nationwide trading since inception. NSE was incorporated as a national stock exchange.
Equity/Share Total equity capital of a company is divided into equal units of small denominations, each called a share. The holders of such shares are members of the company and have voting rights.
5. INTRODUCTION TO INTERNSHIP Learning The first step in the internship process begins with the understanding of the financial market and learning the tools of the software. Initially we had a brief understanding of the financial market and derivatives. We went for textbook learning which included: Financial Market: A beginners module Securities Market (Basic Module) Derivatives Market Module Then we appeared for online practice test on Financial Market: A Beginners Module. After that our account were opened through which we got access to all the tools i.e., rupeeseed.com, rapidrupee and mobirupee. We used the software and learned about the various tools and its unique features and offerings such as Trend Scanner, R and S Symbol Watch, Unusual volume, Intraday Recovery/Fall, Open vs High Low, Top Gainers and Losers(both for intraday and history), etc. Then we had Skype demo.
Marketing (Field Experience) The heart of your business success lies in its marketing. Most aspects of your business depend on successful marketing and Business development which is my core job at Rupeeseed. Initially, we received the details of the clients (brokers and sub-brokers) present in Indore along with the business FAQ containing the details like business objectives during internship, rupeeseed offerings, terms for franchisees, incentive etc. We were asked to call the clients from the list provided and take appointment from them. We initiated by calling clients as instructed by company guide but in most of the cases we got negative responses. Reason being: Clients were not willing to talk; Some numbers were switched off; Few were wrong numbers; It was quite difficult to explain the analytical and technicality of the software in phone. So, we decided to approach directly to the clients which worked. We visited the clients, in groups of two, directly. Most of the clients we met allowed us to introduce our product to them. After meeting with the client, we gave them demo of our software explaining different tools like Trend Scanner, R and S Symbol Watch, Top Gainers and Losers, Intraday Recovery/Fall, Unusual Volume, Time and Sales, Charts etc which helps in making decisions regarding investments i.e., in which stock to invest and were not to invest. Also we try to explain them the unique offerings our products provide like Covered Calls, Take Profit Stop Loss, Trailing Stop Loss and much more. As our software is majorly data analytical based and easy to understand, its turning out to be good experience with the customer. Once the customer is satisfied or shows interest in our product we help them by installing a 7 days demo version of our software in their computer.
MARKETING (MAJORLY OF SOFTWARE -RAPIDRUPEE) The marketing has got a very prominent role as far as survival and growth of a company is concerned. Financial Marketing and sales (Business Development) in Capital market is my core job at Rupeeseed. Making calls and getting appointments, then meeting clients and briefing them about the software along with its unique features and core competencies. Next is the installation of software on clients respective platforms. The next very important phase which I concluded is follow-up and then is the conversion stage.
MARKETING PROCESS FLOWCHART
The internship project in the very beginning has provided a training session that gave a brief knowledge of capital services and this will continue till the process will go on
I Making calls and taking appoinments . Directly approach to cleint. II Meeting clients and breifing about software. Comparison with existing software. III Installation of software if interested. Follow up and conversion.
6. COMPANY ANALYSIS
Rupeeseed
Rupeeseed is the first online trading system in India available in both English and Hindi. It is an online share trading platform which is usable by both layman and advanced users. It primarily focuses to provide qualitative and quantitative features which will assist them in decision making while share trading. The systematic approach implemented in Rupeeseed Online share trading software will ensure our clients chances of making profitable trade. Our simple and concise online software will make your share trading process a different experience. The online transactions through our website will be highly secured. We have also implemented online demo pages for the customers to navigate so that they get a clear cut picture about our online share trading software. Rupeeseed offers trading in NSE Equity, NSE ,BSE Derivatives.
6.1 SWOT ANALYSIS OF RUPEESEED
STRENGTHS
WEAKNESS
Products PMS Services. Technology Online fund transfer. Research reports. Clients High brokerage charges but now they have overcome this by a new prepaid scheme in which brokerage is reduced to half.
11 IndoThai Securities 0731- 4255800 Dawa Bazaar Follow up
12 Param paisa securities M.G Road Drop
13 Pumarth Credit & Corp Ltd
GPO Closed
14 Money Manager
M.G Road Follow up
15 Agrawal Financial
Annapurna Road Drop
16 Agrawal Commodities
Maharani Road Drop Interste d in commo ditites
only 17 Exclusive Securities 810926265 5 Bhakt prahlad nagar Follow up
18 Angle Broking Commerce house, Drop not interest ed
19 India Infoline (IIFL) balaji corporate building closed
20 Shelly Shares and Securities 0731- 3012516 M-10, Navneet Darshan, Old Palasia Drop 21 Reliance Securities Bansi Trade Centre Drop Not Interest ed
22 Kotak Securities
UG 55/56 Bansi Trade Centre Drop Has own softwar e
23 Arihant Capital Ltd 308 D-k-1 Scheme no 74 Drop Has own Softwar e 24 Aditya Securities Plaliaka Plaza Closed 25 Premium Securities and Investment Race Course Road Closed 26 Arihant capital Near silver mall closed not Interest ed
27 Emkay Securities
Near silver mall Drop not interest ed
28 Suyog Securities Ltd Apolo Avenue Drop Not Interest ed
29 Anand Rathi
Apolo Avenue Drop Not Interest ed
30 Indira Securities Ltd
Laibaka Residency, Near Navneet Plaza Closed
31 Arihant Capital Market Chetak Centre Drop Not Interest ed 32 NBHC Ltd Corporate House Drop Not Interest ed 33 Bonanza Chetak Chamber Drop Not Interest ed 34 India Infoline (IIFL) 315 A City Center Drop Own Softwar e 35 Ashank Consultant 0731- 2432533 206, MS A, New Siyaganj Drop
36 Ramesh Jain & Associates 982706820 8 109, MS-1, Block B, New Siyaganj Drop
37 Tambi Securities Pvt Ltd 0731- 2535219 206, Prem Trade Centre, Maharani Road, MTH Compound Follow up Less Interest ed
45 Trifid Corporation 253, Prem Trade Centre Drop Not Interest ed
46 TM Investment
Bansi Trade Centre Follow up Will Intimat e
47 Seraph Advisory Financial 0731- 4257258 LG-20, Bansi Trade Centre, 581, MG Road Follow up Will Intimat e
Services 48 Ventura Securities Ltd 930064779 0 Office No B1 & B2, 2nd Floor, Chaturvedi Mansion, Palasia, A B Road Drop
49 Asit C Mehta Investment Interrmediate s Ltd 731- 4047163 C/O Orbit Mall, Shop No 101/102, Scheme No -54, A B closed
50 Indira Securities Ltd Orbit MAll first floor AB road Drop
51 Tradeasy Broking Ltd
Orbit Mall, A B Road, Vijay Nagar, Indore closed
52 R D Management 731- 4005359 140 Orbit Mall, A B Road, A B Road closed
53 Capital aim
303, Orbit Mall Vijay Nagar closed
54 Skung(Soma ni Group) 0731- 4055777 247, 2nd Floor Orbit Mall Vijay Nagar drop
55 Networth Direct UG 10, Ground floor, milinda manore, RNT Marg convert
7. TABULATION/FINDING & RESULT
TABLE:
Drop 26 Follow up and active 15 Closed 7 Demo installed 7 Total 55
Total clients under me were 55, Out of 55 demo was installed in 7 offices, out of which 1 was convert. Follow up and active clients were 15 , talks are going on with them so that they convert, and can take the benefit of the software. 26 were dropped which were not interested in the software.
Pie Chart:
Drop, 26, 47% Follow up and active, 15, 27% Closed , 7, 13% Demo installed , 7, 13% Drop Follow up and active Closed Demo installed 8. SUMMARY
8.1 Conclusion The SIP done by me at Rupeeseed has been a great learning experience. Working as a B2B sales person has given me an insight into the marketing of an organization. While doing the sales job, many were not aware of Rupeeseed brand and its services. Investors are showing a greater inclination towards investment in the capital markets either individually or through mutual funds. They perceive mutual funds as less risky because of their professional managers. Many investors want to invest in capital markets but they dont have time to keep a check on their portfolio all the time. This is where Rupeeseed can help as you dont have to check on it all the time and can set buy and sell price as per your wish. This SIP was very helpful in learning the deep insights and concepts of financial markets. Practical Knowledge : This SIP has given practical knowledge of working in a onsite project, given a experience of dealing with clients and given the insight about the marketing.
9. RECOMMENDATIONS
Features Rupeeseed Sharekhan Angel Broking India Infoline Limited Kotak Securities ICICI Direct Supported Exchanges BSE, NSE, MCX, NCDEX, NSEL BSE, NSE, MCX NSE, BSE, MCX, NCDEX BSE, NSE, MCX-SX BSE, NSE, MCX Equity Delivery Brokerage 0.45% 0.50% 0.40% to 0.10% 0.50% 0.49% 0.55% Equity Intraday Brokerage 0.03% 0.10% 0.04% to 0.01% 0.05% 0.049% 0.275% Equity Futures Brokerage 0.10% 0.04% to 0.01% 0.05% 0.049% 0.05% - 0.03% Equity Options Brokerage Rs. 100 0.04% to 0.01% 1% of Premium or Rs 100 per lot whichever is high Rs 100 Rs 95 - Rs 65 per lot Retail Outlets No Yes Yes Yes Yes Yes Charting Yes Yes Yes No Yes Yes Online Demo Yes Yes Yes Yes No Yes 3 in one account No No No No Yes Yes Online Live chat No Yes Yes No Yes No Hindi Language Interface Yes No No No No Yes
Here are some important recommendations and suggestions to the organization based on the experience gained by me. I hope organization finds it useful.
Brokerage This is considered as one of the most important factors that drives the brokerage industry. During meeting with the sub brokers it was realized that the brokerage rate is a little high from few others. .Rupeeseed being a new entrant in the industry must reduce it to attract more clients.
Promotion This has become a very important mantra for the success of any business. Rupeeseed has not promoted its products as other firms do because of which awareness is not there and attracting new customers is much more difficult. Print Media, Electronic Media etc can be easily used for the promotion purposes.
New Schemes Though the degree of differentiation in these products is low in this industry, so Rupeeseed can attract new customers by introducing new and innovative schemes like targeting housewives who have a substantial amount of saving and want to spend somewhere to get good returns. Schemes targeted to college students as well as small shopkeepers can give Rupeeseed an edge over others.
Corporate Tie-ups The organization can focus on more and more corporate tie-ups and employees of those organizations can be targeted. This helps the company in building good relationship with their employees, our organization in generating business and the employees will get services at their doorstep without any effort.
10 LIMITATIONS Fluctuations in the market : Due to election period and election result are pending. People cant predict whether to invest or wait for some time, They even tell us that we are doing our training (SIP) at very wrong time. Time Limit: The time available for the project was just 2 months and this field is too vast. There are so many stocks, Mutual funds, policies, real estate etc. to study and number of sub brokers to visit in this duration which was very difficult to convert and give services in this duration. While telecalling sometimes the clients do not give positive response, may be because they are really busy or may be not interested in the trading software. Risk Factor : While cold calling when we met the owners of big shops. They said that if they had spare money they will invest it in their shops and not in the share market. They don`t want to take risk. Rupeeseed is a startup company and not very famous so it was hard for unknown people to trust on this company software. Cost : Rapidrupee cost around 18000/- for yearly subscription, many people finds its very costly because there are many software in the market with very low cost.
11. SCOPE FOR FUTURE IMPROVEMENT In the Indian retail brokerage industry, the regulatory framework and investing guidelines have been clearly stated by SEBI. The brokerage firms compete with each other on the basis of few factors such as Brokerage Charges Technological Advances Providing personalized services to the clients etc. However, some other factors remain uncovered. Greatness of Research data Clients still have not been able to fully trust the tips given by the research development of Rupeeseed. While interacting with them I found out that they wont trust one single analytics for all the components involved. This can b improved by giving the best in every field in a single platform. Number of Branches in the Country The increase in number of outlets across the country would give rise to high brand recognition and also creation of brand equity. Since the company is a new entrant, it is very important for the company to promote its products and services, as well as increase its brand awareness. Gearing towards frequent visitor The main stress of business at the present stage is concentrating on the number of accounts of the existing clients. However many of them may not be active. Thus more emphasis should be laid in future on concentrating on frequent investors and also reactivating off dead accounts lying with the office.