ACKNOWLEDGEMENT

With immense pleasure, we would like to present this Final report on project assignment of A STUDY OF ONLINE TRADING AND STOAK BROKING for Destimoney Securities Pvt. Ltd. Ahmedabad. It has been an enriching experience forming to under go my project, which would not have been possible without the goodwill and support of the people around.

We forward our gratitude to respected Faculty Guide Ms. Shital Shastri & our Company Guide Mr.Dhirendra Patel and Mr.Udaysinh Zankat. Who has given us the chance for training in their company.

We also thankful and forward our acknowledgement the person Mr. Dharmendra Mudaliar (Branch Manager of Mithakhadi Branch of Destimoney) who gave us the whole introduction about their company and the process of stock market. This proved to be great sources, of information as well as inspiration.

And especially thanks to Mr. Udaysinh Zankat who given us the proper knowledge which helpful in our training and we also thankful the BDEs of the company who have taken us with them and give the practical knowledge that how convince the customer to open the demat A/c, and we also thankful to Mr. Dhirendra Patel who give us practical knowledge of trading software of company.

Last but not list, we are thankful to Gujarat Technological University who given us this type of training and SIP.

LIST OF TABLE
Table 1. About the people's investment. Table 2. Objective of the Investments. Table 3. People interested in stock market. Table 4. If no, the reason. Table 5. Demat & Trading A/c in different where. Table 6. Clients prefer the trading. Table 7. Different types of trading. Table 8. Name heard of Destimoney. Table 9. Attraction from the features of Destimoney. Table 10. People interested for opening the A/c. Table 11. Expectation of the Clients.

ON THE JOB TRAINING (OJT) TITLE TO GET MORE PROSPECTIVE CLIENTS

Objectives Other objective of the study Target/Task Strategies Achievements Limitations

OBJECTIVES
3

1. Primary objective:
The primary objective of this OJT & Report is that to get more and more clients and find out the customers expectation about the stock broking company or Destimoney Securities Pvt. Ltd. and Proper understanding and analysis of Destimoney as a product.

2. Secondary objective:
To learn and enhance the practical knowledge about the fieldwork. To get the knowledge about how to convince and motivate to the people for trading and investment in equity market. To get the work experience before completing the MBA. Try to convey the people about companys product and service.

To learn that how to build and maintain relationship with the clients. To learn that how to adjust with the corporate life and set with organization culture. To get the particle knowledge of the trading and other stock market related software.

OTHER OBJECTIVES OF THE STUDY

 It is to analyze the changes in trading after the exchange shifted from outcry to online trading system. It is to study the function of DESTIMONEY thought various departments. To know the online screen based trading system adopted by DESTIMONEY and about its communication facilities. The appropriate configuration to set the network which would link the DESTIMONEY to individual / members. To know about the latest and future development in the stock exchange trading system.

ONLINE SOFTWARE OF DESTIMONEY

TARGET / TASKS
Company gave the task or target to met minimum 10 to 15 people in the market in a day and convince them about the products of the company, and to open the demat account. Each and every day we have to meet at least 10 to 15 clients and out of them we try to open 5 demat accounts in a month, and at the end of day we have given the report to our Business Development Manager, and in evening we have done telemarketing and we try to convey the some people on phone, to get their appointment and meet them at given time. In addition, convince the people that our company gives the best service which helpful in your Shares trading. And our target is to get the prospective clients and maintain healthy relation with the clients and provide such types of calls which are beneficially to clients in their intraday trading or in delivery base trading.

STRATEGIES
STRATEGIES ADOPTED FOR ACQUIRING CLIENT
Selection of Area:

In selection of area we selected that area which we get the more crowds of people for opening the account, for that we selected Satellite, Gota, Bopal, Vastrapur, and C. G. Road where commercial banks and offices are located.

In C. G. Road we visited Banks, and Insurance company as well as shopkeepers , we also do umbrella marketing in front of Ahmedabad Stock Exchange , and Karvy , a stock broking company where we met maximum number of the people who are dealing in stock market and whose account in Karvy and try to convey this people by making comparison between Destimoney products and service to other stock broking companies, and convey them through the benefits getting from Destimoney. In Satellite all, the people are Businessmen they all are retailers, and shopkeepers, we also visit some banks and insurance and try to acquire clients.

Promotion Strategy:

In promotion strategy, First we convey the people through companys products, services and charges, Company take only Rs. 888/- for opening account, and after that they are not taking annual maintained charges for that whole year and then Rs. 240/- as compare to others stock broking company, after that if person are not convey then we promote product through providing Dhanlakshmibank Zero balance account at free of cost, and Destimoney have advance brokerage plan which are more beneficially then other stock broaking company.

 PRODUCTS SALES STRATEGY Train to the sales person Meeting in daily morning To maintain relationship with clients High salary + incentive on the bases of sales + incentive on trading volume Customer satisfaction by providing proper guideline to the clients.

ACHIEVEMENTS
We will find out the potentiality of the customers for online demat account.

Get the customers for online demat account by convincing them about Destimoney Securities Pvt. Ltd. products.

Get

the

knowledge

of

the

ways

by

which

we

have

to

give

the

customers satisfaction for Destimoney securities Pvt. Ltd. products.

We can make the customers relationship by building customers trust on us as well as on Destimoney Securities Pvt. Ltd. products also.

In addition, at the last our ultimate goal, which we achieved, is thatIn the given task or target, our target is to open 5 demat a/c in sip However, in which we can achieve our target of 5 demat A/c Therefore, we achieved our target.

10

LIMITATIONS
Though the present study aims to achieve the above-mentioned objectives in full earnest and accuracy, it may be hampered due to certain limitations. Some of the limitations of this study may be summarized as follows:

1)
kind.

The limitations that occurred during the project were in the beginning when we

actually started working on the project because this is our first experience of this

2) 3) 4) 5) 6) 7)

Some time due to improper service of the Destimoney Securities Pvt. Ltd.,

customers became negative thinking. Some customers have an already account in another online share trading

company. This is negative for the organization. The survey is costly and tedious. The advisory services being promised by the brokers would be of little use to

investors looking for an insight into the market. As a client one will access the NSE throught a server of the online brokerage

and this may involve queuing delays. If one like to ask his broker Aaj kya achcha lag raha hai he may not be able

to do so. If he wants advice on a particular stock in his portfolio he may not even be able to get that.

11

METHODOLOGY
The objective of the present study can be accomplished by conducting a systematic market research. Market research is the systematic design, collection, analysis and reporting of data and findings that are relevant to different marketing situations facing the company. The marketing research process that will be adopted in the present study will consist of the following stages: Defining the problem and the research objective: The research objective states what information is needed to solve the problem. Developing the research plan: Once the problem is identified, the next step is to prepare a plan for getting the information needed for the research. Collection and Sources of data: Market research requires two kinds of data, i.e., primary data and secondary data. There will be personal interview surveys mostly inhome (door-to-door) surveys. The questionnaires will contain both open-ended and close-ended questions. Here, open-ended questions will be more useful, as it is an exploratory research being conducted, wherein the main objective is to get an insight into how people think rather than measuring how many people think in a particular way. Secondary data will be collected from various journals, books and web sites. Analyze the collected information: This involves converting raw data into useful information. It involves tabulation of data, using statistical measures on them for developing frequency distributions and calculating the averages and dispersions. Report research findings: This stage will mark the result of the marketing research effort.

12

NEED FOR THE STUDY

The present study to review the online trading procedure a case study of ONLINE TRADING at DESTIMONEY as the exchange has changed its trading from the outcry mode to online trading on 19th February 1997, there is need to assess the performance of the capital market.

INDUSTRY PROFILE
13

 About stock market

A stock market is a market for the trading of company stock, and derivatives of same; both those securities listed on a stock exchange as well as those only traded privately.

Although common, the term 'the stock market' is a somewhat abstract concept for the mechanism that enables the trading of company stocks. It is also used to describe the totality of all stocks and sometimes other securities, with the exception of bonds, commodities, and derivatives. The term is used especially to apply within one country as, for example, in the phrase "the stock market was up today", or in the term "stock market bubble". Bonds are still traditionally traded in an informal, over-the-counter market known as the bond market.

14

Commodities are traded in Commodities markets and derivatives are traded in a variety of markets (but, like bonds, mostly 'over-the-counter'). The size of the worldwide 'bond market' is estimated at $45 Trillion; the size of the 'stock market' is estimated as about half that. But the world derivatives market has been estimated at about $300 Trillion [1] [2] the major U.S. Banks alone are said to account for about $100 Trillion.

The stock market is distinct from a stock exchange, which is an entity (a corporation or mutual organization) in the business of bringing buyers and sellers of stocks and securities together. For example, 'the stock market' in the United States includes the trading of all securities listed on the NYSE, the NASDAQ, the Amex, as well as on the many regional exchanges.

15

HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Thus in the same way, gradually with the passage of time number of exchanges were increased and at currently it reached to the figure of 24 stock exchanges.

DEVELOPMENT
16

An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers Association at Bombay in 1875, the precursor of the present-day Bombay Stock Exchange. This was followed by the formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). IN addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently. In order to check such aberrations and promote a more orderly development of the stock market, the central government introduced a legislation called the Securities Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory on the part of stock exchanges to seek government recognition. As of January 2002 there were 23 stock exchanges recognized by the central Government. They are located at Ahemdabad, Bangalore, Baroda, Bhubaneswar, Calcutta, Chennai,(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock Exchange), popularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot. Of course, the principle bourses are the National Stock Exchange and The Bombay Stock Exchange, accounting for the bulk of the business done on the Indian stock market. While the recognized stock exchanges have been accorded a privileged position, they are subject to governmental supervision and control. The rules of a recognized stock exchanges relating to the managerial powers of the governing body, admission, suspension, expulsion, and re-admission of its members, appointment of authorized representatives and clerks, so on and so forth have to be approved by the government. These rules can be amended, varied or rescinded only with the prior approval of the government. The Securities Contracts (Regulation) Act vests the government with the power to make enquiries into the affairs of a recognized stock exchange and its business, withdraw the recognition the task of regulating the stock exchange to the Securities Exchanges Board of India.

FOLLOWING DIAGRAM GIVES THE STRUCTURE OF INDIAN FINANCIAL SYSTEM

17

FINANCIAL MARKET
18

Financial markets are helpful to provide liquidity in the system and for smooth functioning of the system. These markets are the centers that provide facilities for buying and selling of financial claims and services. The financial markets match the demands of investment with the supply of capital from various sources. According to functional basis financial markets are classified into two types. They are: Money markets (short-term) Capital markets (long-term) According to institutional basis again classified in to two types. They are Organized financial market Non-organized financial market. The organized market comprises of official market represented by recognized institutions, bank and government (SEBI) registered/controlled activities and intermediaries. The unorganized market is composed of indigenous bankers, moneylenders, individual professional and non-professionals.

MONEY MARKET
19

Money market is a place where we can raise short-term capital. Again the money market is classified in to Inter bank call money market Bill market and Bank loan market Etc. E.g.; treasury bills, commercial papers, CD's etc.

CAPITAL MARKET

20

Capital market is a place where we can raise long Again the capital market is classified in to two types and they are Primary market and Secondary market. E.g.: Shares, Debentures, and Loans etc.

PRIMARY MARKET
Primary market is generally referred to the market of new issues or market for mobilization of resources by the companies and government undertakings, for new projects as also for expansion, modernization, addition, diversification and upgradation. Primary market is also referred to as New Issue Market. Primary market operations include new issues of shares by new and existing companies, further and right issues to existing shareholders. Public offers, and issue of debt instruments such as debentures, bonds, etc. The primary market is regulated by the Securities and Exchange Board of India (SEBI a government regulated authority).

FUNCTION
The main services of the primary market are obligation, underwriting, and distribution. Origination deals with the origin of the new issue. Underwriting contract make the shares predictable and remove the element of uncertainty in the subscription. Distribution refers to the sale of securities to the investors. The following are the market intermediaries associated with the market:1. Merchant banker / book building lead manager 2. Register and transfer agent 3. Underwriter / broker to the issue 4. Advisor to the issue 5. Banker to the issue 6. Depository participant

INVESTORS PROTECTION IN THE PRIMARY MARKET

21

To ensure healthy growth of primary market, the investing public should be protected. The term investor protection has a wider meaning in the primary market. The principal ingredients to investors protection are: Provision of all the relevant information Provision of accurate information and Transparent allotment procedure without any bias.

SECONDARY MARKET
The primary market deals with the new issues of securities. Outstanding securities are traded in the secondary market, which is commonly known as stock market or stock exchange. The secondary market is a market where scrips are traded. It is a market place which provides liquidity to the scrips issued in the primary market. Thus, the growth of secondary market depends on the primary market. More the number of companies entering the primary market, the greater are the volume of trade at the secondary market. Trading activities in the secondary market are done through the recognized stock exchanges which are 23 in number including Over The Counter Exchange of India (OTCE), National Stock Exchange of India and Interconnected Stock Exchange of India. Secondary market operations involve buying and selling of securities on the stock exchange through its members. The companies hitting the primary market are mandatory to list their shares on one or more stock exchanges in India. Listing of scrips provides liquidity and offers an opportunity to the investors to buy or sell the scrips. The following are the intermediaries in the secondary market: 1. Broker/member of stock exchange buyers broker and sellers broker 2. Portfolio Manager 3. Investment advisor 4. Share transfer agent 5. Depository 6. Depository participant

VARIOUS STOCK EXCHANGES IN INDIA

22

At present there are 23 stock exchange recognized under the securities contracts (regulation) act, 1956.

Stock Exchange in India located at:Ahmedabad stock exchange association ltd. 23

Bangalore stock exchange Bhubaneshwar stock exchange association Calcutta stock exchange Cochin stock exchange ltd. Coimbtore stock exchange Delhi stock exchange association Guwahati Stock Exchange Ltd Hyderabad Stock Exchange Ltd. Jaipur Stock Exchange Ltd Kanara Stock Exchange Ltd Ludhiana Stock Exchange Association Ltd Madras Stock Exchange Madhya Pradesh Stock Exchange Ltd. Magadh Stock Exchange Limited Meerut Stock Exchange Ltd. Mumbai Stock Exchange National Stock Exchange of India OTC Exchange of India Pune Stock Exchange Ltd. Saurashtra Kutch Stock Exchange Ltd. Uttar Pradesh Stock Exchange Association Vadodara Stock Exchange Ltd Out of these major stock exchanges are:NSE (National Stock Exchange) BSE (Bombay Stock Exchange)

NSE (NATIONAL STOCK EXCHANGE)

24

The national stock exchange of India has genesis in the report of high powered study group on establishment of national stock exchange, which commended. Promotion of a National Stock Exchange by financial institutions (FIs)to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April1993, NSE commenced operations in the Wholesale Debt Market (WDM) segmenting June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. 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. Within a very short span of time, NSE has been able to achieve all the objectives for which it was set up. It has been playing a leading role as a change agent in transforming the Indian Capital Markets to its present form. The Indian Capital Markets are a far cry from what they used to be a decade ago in terms of market practices, infrastructure, technology, risk management, clearing and settlement and investor service.

NSE (NATIONAL STOCK EXCHANGE)

25

NSE's mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of: Etablishing a nation-wide trading facility for equities and debt instruments. Ensuring equal access to investors all over the country through an appropriate communication network. Providing a fair, efficient and transparent securities market to investors using electronic trading systems. Enabling shorter settlement cycles and book entry settlements systems, and Meeting the current international standards of securities markets.

The standards set by NSE in terms of market practices and technology, have become industry benchmarks and are being emulated by other market participants.NSE is more than a mere market facilitator. It's that force which is guiding the industry towards new horizons and greater opportunities.

BSE (Bombay Stock Exchange)

26

The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875as "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 demutualised 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 redresses 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 programmers and making available to them necessary informative inputs.

A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer.

NCDEX
NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE

27

NCDEX started working on 15th December, 2003. This exchange provides facilities to their trading and clearing member at different 130 centers for contract. In commodity market the main participants are speculators, hedgers and arbitrageurs. Promoters of NCDEX are National Stock Exchange(NSE) ICICI bank Life Insurance Corporation(LIC) National Bank for Agricultural and Rural Development (NABARD) IFFICO Punjab National Bank (PNB) CRISIL

WHY NCDEX?
NCDEX is nationalized screen based system which is providing transparent, private and easy services. NCDEX is one of the traditional media which gives online information NCDEX is one of the Indian commodity exchange, constructed on the basis of the current national institutes the exchange has been established with the coloration of leading institutes like NABARD, LIC, NSI etc. In India NCDEX has maximum settlement guarantee fund. NCDEX has appointed two exports for checking quality at the time of delivery.

FACILITIES PROVIDED BY NCDEX

28

 NCDEX has developed facility for checking of commodity and also provides a wear 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

MULTI COMMODITY EXCHANGE

29

MCX

MULTI COMMODITY EXCHANGE of India limited is a new order exchange with a

mandate for setting up a nationwide, online multi-commodity marketplace, offering unlimited growth opportunities to commodities market participants. As a true neutral market, MCX has taken several initiatives for users In a new generation commodities futures market in the process, become the countrys premier exchange. MCX, an independent and a de-mutualized exchange since inception, is all set up to introduce a state of the art, online digital exchange for commodities futures trading in the country and has accordingly initiated several steps to translate this vision into reality.

MEMBER OF THE STOCK EXCHANGE

30

The securities contract regulation act, 1956 has provided uniform regulation for the admission of members in the stock exchange. The qualifications for becoming a member of a recognized stock exchange are given below:

The minimum age prescribed for the members is 21 years. He should be an Indian citizen. He should be neither a bankrupt nor compound with the creditors. He should not be convicted for fraud or dishonesty. He should not be engaged in any other business connected with a company. He should not be a defaulter of any other stock exchange. The minimum required education is a pass in 12th standard examination

SECURITIES & EXCHANGE BOARD OF INDIA

31

The securities and exchange board of India was constituted in 1988 under a resolution of government of India. It was later made statutory body by the SEBI act1992.according to this act, the SEBI shall constitute of a chairman and four other members appointed by the central government. With the coming into effect of the securities and exchange board of India act, 1992some of the powers and functions exercised by the central government, in respect of the regulation of stock exchange were transferred to the SEBI. OBJECTIVES AND FUNCTIONS OF SEBI To protect the interest of investors in securities. regulating the business in stock exchanges and any other securities market. Registering and regulating the working of intermediaries associated with securities market as well as working of mutual funds. Promoting and regulating self-regulatory organizations. Prohibiting insider trading in securities. Regulating substantial acquisition of shares and takeover of companies. Performing such functions and exercising such powers under the provisions of capital issues (control) act, 1947and the securities to it by the central government

Basics of stock Market

32

Corporations issue official-looking sheets of paper that represent ownership of the company. These are called stock certificates, and each certificate represents a set number of shares. The total number of shares will vary from one company to another, as each makes its own choice about how many pieces of ownership to divide the corporation into. One corporation may have only 2,500 shares, while another, such as IBM or the Ford Motor Company, may issue over a billion shares. Companies sell stock (pieces of ownership) to raise money and provide funding for the expansion and growth of the business. The business founders give up part of their ownership in exchange for this needed cash. The expectation is that even though the owners have surrendered a portion of the company to the public, their remaining share of stock will become increasingly valuable as the business grows. Corporations are not allowed to sell shares of stock on the open stock market without the approval of the Securities and Exchange Commission (SEC). This transition from a privately held corporation to a publicly traded one is called going public, and this first sale of stock to the public is called an initial public offering, or IPO.

Why do people invest in the stock market?

33

When you buy stock in a corporation, you own part of that company. This gives you a vote at annual shareholder meetings, and a right to a share of future profits. When a company pays out profits to the shareholder, the money received is called a "Dividend". The corporation's board of directors choose when to declare a dividend and how much to pay. Most older and larger companies pay a regular dividend; most newer and smaller companies do not. The average investor buys stock hoping that the stock's price will rise, so the shares can be sold at a profit. This will happen if more investors want to buy stock in a company than wish to sell. The potential of a small dividend check is of little concern. What is usually responsible for increased interest in a company's stock is the prospect of the company's sales and profits going up.? A company who is a leader in a hot industry will usually see its share price rise dramatically. Investors take the risk of the price falling because they hope to make more money in the market than they can with safe investments such as bank CD's or government bonds.

How does one buy stocks?

34

Buying stocks is not as simple as walking into a stockbroker's office and buying shares like you would a pair of shoes from a store. You are required to open an account with the brokerage, like opening an account at a bank. Some brokers will allow you to open an account with very little money. The firm will then hold this money in an interest earning cash account, awaiting your orders to buy or sell stock, or other securities such as bonds or mutual funds. When you buy or sell, you pay a commission, which is deducted, from your account. When a stock is purchased, the ownership of the shares may be listed in one of two ways. "Listed" means how the corporation tracks the ownership of their stock. If you choose to have the stock listed in your name, you will receive the actual stock certificates. Most investors choose to have the ownership listed in the broker's name, called "held in street name", with the broker keeping track of whose trading account the stock actually belongs to. The benefits are reduced paperwork, consolidated portfolio statements, no concerns about storing and processing the paper certificates, and the ability to instantly sell and transfer the shares. Either way, any dividends are credited to your account.

Why do people sell their stock?

35

The reasons people sell their stock are more complex. A person may just need the money. He or she may have watched the price go up, and have a hunch this is a good time to lock in their profit and sell some or all their shares. Bad news concerning a company or its industry, or a disappointing earnings report is sure to prompt heavy selling. An investor may see better opportunities in another company, and so sell his stocks that aren't moving up. But usually, investors sell because they've watched the price fall, and just want to get out before they lose even more.

Ten Golden rules for Investing

36

Warren Buffet has suggested ten golden rules for investing which proves to be immense use to the investors who want a better investment in stock markets, Destimoney follows these rules which are as described below: 1. Never invest in a business you cannot understand. 2. Risk can be reduced by concentrating on a few holdings. 3. Stop trying to predict the direction of the stock market, the economy, interest rates, or elections. 4. Buy companies with strong histories of profitability and with a dominant business franchisee. 5. Be fearful when others are greedy and greedy when others are fearful. 6. Unless you can watch your stock holding decline by 50% without becoming panic-stricken, you should not be in the stock market. 7. Do not take yearly results too seriously. Instead, focus on four or five year averages. 8. Focus on return on equity, not earnings per share (EPS). 9. Calculate "owner earnings" to get a true reflection of value. Look for companies with high profit margins. 10. Always invest for the long term. Does the business have favorable long-term prospects?

INTERNET TRADING IN INDIA:

37

In the past, investors had no option but to contact their broker to get real time access to market data. The Net brings data to the investor on line and net broking enables him to trade on a click. Now information has become easily accessible to both retail as well as big investors. The development of broking in India can be categorized in 3 phases: 1. Stock brokers offering on their sites features such as live portfolio manager, live quotes, market research and news to attract more investors. 2. Brokers offering on line broking and relationship management by providing and offering analysis and information to investors during broking and non-broking hours based on their profile and needs, that is, customized services. 3. Brokers (now e-brokers) will offer value management or services such as initial public offerings on line, asset allocation, portfolio management, financial planning, tax planning, insurance services and enable the investors to take better and wellconsidered decisions. The European on line broking market is expected to be of $8 billions and is likely to raise five fold by 2002. In India, presently Internet trading can take place through the order routing system, which will route client orders to exchanges trading systems for execution of trades on stock exchanges (NSE and BSE). This will also require interface with banks to facilitate instant cash debit or credit and the depository system for debit or credit of securities.

OBJECTIVES OF INTERNET TRADING:

38

Increase transparency in the markets. Enhance market quality through improved liquidity, by increasing quote continuity and market depth. Reduce settlement risks due to open trades, by elimination of mismatches. Provide management information system (MIS). Introduce flexibility in system, to handle growing volumes easily and to support nationwide expansion of market activity. Besides, through Internet trading three fundamental objectives of securities regulation can be easily achieved, these are: Investor protection, creation of a fair and efficient market and, reduction of the systematic risks.

PROCEDURE FOR INTERNET TRADING

39

Step-1: Those investors interested in doing the trading over internet system, that is, NEAT-ISX, should approach the brokers and register with the Stock Broker. Step-2: After registration, the broker will provide to them a login name, password and a personal identification number (PIN). Step-3: Actual placement of an order. An order can then be placed by using the place order window as under: o First by entering the symbol and series of stock and other parameters such as quantity and price of the scrip on the place order window. o Second, fill in the symbol, series and the default quantity.

Step-4: It is the process of review. Thus, the investor has to review the order placed by clicking the review option. He may also re-set to clear the values. Step-5: After the review has been satisfactory; the order has to be sent by clicking on the send option. Step-6: The investor will receive an ``Order Confirmation'' message along with the order number and the value of the order. Step-7: In case the order is rejected by the Broker or the Stock Exchange for certain reasons such as invalid price limit, an appropriate message will appear at the bottom of the screen. At present, a time lag of about ten seconds is there in executing the trade.

Step-8: It is regarding charging payment, for which there are different modes. Some brokers will take some advance payment from the investors and will fix their trading limits. When the trade is executed, the broker will ask the investor for transfer of funds by the investor to his account.

40

The above figure shows how the Internet trading procedure.

41

COMPANY PROFILE

Introduction about the company Services of Destimoney Funding Partner Branches Organization Chart Structure Mission & strategic objective Philosophy of Destimoney Marketing channel Services of the company Strategies SWOT Analysis Competitors of the company

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INTRODUCTION
DESTIMONEY SECURITIES PVT. LTD., AHMEDABAD.

"Destimoneys origins can be traced back to the City of London over 80 years ago. At that time called Dawnay Day, it entered India in 2006, was purchased by New Silk Route in 2008, and under its new share holders and management was renamed Destimoney. In addition to well experienced teams of Insurance Advisors and Distributors, we cater to virtually every financial need, from loans, mutual funds and equity broking to wealth advisory, with a full-time employee base of over 3000 in 137 branches in 72cities.With over 497 Distribution Partners across India, we look forward to serving you better."

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DESTIMONEY is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides our clients with real-time service & 24/7 accesses to all information and products. Companys flagship DESTIMONEY Professional NetworkTM offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your fingertips. Companies knowledgeable complement this powerful technology and customer focused Relationship Managers. DESTIMONEY offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence, achieve your financial goals. DESTIMONEY'S Client Relationship Managers are available to you to help with your financial planning and investment needs. To provide the highest possible quality of service, DESTIMONEY provides full access to all our products and services through multi-channels. Vivek vig MD & Group CEO of Former Country head of Centurion Bank of

Punjab, Former Country head of Citibank in Sauidi Arabia, Turkey Business Head in Taiwan and Poland have promoted DESTIMONEY. The company strives for rapid growth in profits, leadership in the retail marketplace and better returns to its shareholders. Through its group companies, DESTIMONEY is also engaged in real estate development. The company is in the process of developing company stake in various financial banks.

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SERVICES OF DESTIMONEY

DESTIMONEYS Funding Partner

Rajat Gupta Founding General Partner & Chairman, New Silk Route Partners Victor Menezes Senior Advisor,New Silk Route Partners Parag Saxena Founding General Partner & CEO, New Silk Route Partners Dr. A. Hafeez Shaikh Founding General Partner & CEO, New Silk Route Partners

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BRANCHES

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BRANCHES
1. Ahmedabad 2. Bangalore 3. Chennai 4. Delhi 5. Hyderabad 6. Jaipur 7. Mumbai (Head Office) 8. Pune 9. Surat 10.Vadodara

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RGANIZATION CHART

Vivek Vig Vivek Vig

MD & CEO MD & CEO

Saurabh Saurabh Sukla Sukla

CEO CEO

Online country Director Retail Online country Director Retail Head Dist. Head Dist.

Arvindar Arvindar Nanda Nanda

Brijesh Brijesh Parnami Parnami

Garima Garima Chheda Chheda

HR Head HR Head

Institutional Institutional Broking head Broking head

Kartik Kartik Bhansali Bhansali

Dharmendra Dharmendra
Mudaliyar Mudaliyar

Branch Branch Manager Manager

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STRUCTURE

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Mission
To provide high quality, accessible and affordable services to the clients.

Strategic Objective
To be maintain first position in market by satisfying to the clients of the company.

Destimoneys Philosophy
Integrity & Value for our Clients
Destimoney differentiates itself through a unique client-centric philosophy and an ethos of integrity. Rigorous processes and training ensure that every decision and interaction at the Firm embodies our principles. These fundamental values enable us to take a longer, and often contra-cyclical, view to investments, a strategy that, we believe, creates greater value for clients.

Sound Research & Advice

A fundamental, ground-up approach is paired with world-class proprietary research, differentiating Destimoney from its peers. Importantly, consistent and documented processes allow our clients and investors unprecedented transparency into our investment methodology. Destimoney believes in seeking out organizations and investment opportunities that reflect our own ethos: an uncompromising focus on values and people.

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Value Investments
Destimoney believes in longer-term investment horizons and identifying deep-value opportunities. In practical terms this equates to acquisition of assets which are off their fundamental or historic valuations, often against the current, short-term market cycle. This investment philosophy is reflected in the various services offered by our Wealth and Portfolio Management advisors. Destimoneys proprietary research provides its investment advisors additional resources with which to identify these opportunities.

Building Value for a Lifetime

Destimoney's fundamental business goal is to create value for our customers and to establish a lifetime of mutual respect and loyalty. We believe that this is possible only if we run our business with integrity and honesty. We promise our clients, shareholders, principles and employees that we will conduct all our interactions with overarching considerations.

Integrity:
We will act ethically in all our dealings. We will keep our commitments and follow both the spirit and letter of the law.

"Client First" Policy:

All our processes, systems, staffing, and business interactions are designed to be clientcentric. Consequently, our leadership and employees are uncompromisingly dedicated to our values, clients and reputation.

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COMPANYS SERVICES
Destimoney provides services to their clients are: INTRADAY TRADING FACILITY DELIVERY BASE TRADING FACILITY Cash Base Trading Margin Base Trading INTRADAY TRADING FACILITY In Intraday Trading, company provides to their clients same day trading facility i.e. client can buy and sale the script in the same day. This is called Buy today and Sale today. Credit facility: Company provides 6-8 times credit facility to their clients. e.g. If any client has Rs.1,00,000/- deposit in there account so company provides 6 times credit facility means client can buy up to 8,00,000/Payment of the margin: If client make profit by the trading so the additional amount will be added in to there deposit automatically and credit will be increase on the bases of the deposit automatically. If client make loss by the trading then remaining amount will be deducted automatically and credit will be change its self on the bases of deposit. DELIVERY BASE TRADING CASH BASED TRADING MARGIN BASED TRADING

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IN CASH BASED TRADING Destimoney provide cash based trading to there clients. In this, client can get delivery of the shares (scripts). And client can sale it any time when they want. That is called Buy today Sale tomorrow. Credit facility: Company provides 2 times credit facility to their clients. e.g. If any client has Rs.1,00,000/- deposit in their account so company provides 2 times credit facility means client can buy up to Rs. 2,00,000/Payment of the margin: If client makes profit by the trading so the additional amount will be added in to their deposit automatically and credit will be increase on the bases of the deposit automatically. If client want to withdraw money to there account so they have to tell it to the company branch and company provide money by the on line transfer to their account and if client want cheque then company sent cheque to their address by post. If client makes loss by the trading then remaining amount will be deducted automatically and credit will be change its self on the bases of deposit. And if loss will be more then deposit amount then client has to pay it within credit time period.

CREDIT PERIOD: In the cash base trading company provide T+5 credit facility i.e. trading + five days. And with in this period client have to pay remaining amount. If client do not pay it then company can take the interest of 18 % per annum.

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MARGIN BASED TRADING Destimoney provides margin based trading to their clients. In this client can get delivery of the shares (scripts). And client can sale it any time when they want. That is called Buy today Sale tomorrow. For the margin base trading client have to put the security as a deposit in to the company. And on the bases of it company provide credit to there client. Credit facility: Company provides 2 times credit facility to their clients. e.g. If any client has Rs.1,00,000/- deposit security in the company then company provides 2 times credit facility means client can buy up to Rs. 2,00,000/-. Payment of the margin: If client makes profit by the trading so the additional amount will be added in to their deposit automatically and credit will be increase on the bases of the deposit automatically. If clients want to withdraw the money in their account so they have to tell it to the company branch and company provides money by the on line transfer to their account and if clients want the cheque then company sent cheque to their address by post. If client makes loss by the trading then remaining amount will be deducted automatically and credit will be change it self on the bases of deposit. And if loss will be more then deposit amount then client has to pay it with in credit time period. CREDIT PERIOD: In the margin based trading company provide T+2 credit facility i.e. trading + two days. And within this period clients have to pay remaining amount. If client do not pay it then company can charge 18 % per annum.

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RESEARCH SECTION IN DESTIMONY

Destimoney has its own in-house Research Organization which is known as Value line. It comprises a team of experts who constantly keep an eye on the share market and do research on the various aspects of the share market. Generally there search is based on the Fundamentals and Technical analysis of different companies and also taking into account various factors relating to the economy. Destimoneys research on the volatile market has been found accurate most of the time. Destimoneys trading calls in the month of June-2010 has given 89% strike rate. Out of 27 trading calls given by Destimoney in the month of June-2010, 24 hit the profit target. These exclusive trading picks come only to Destimoneys Online Trading Customer and are based on in-depth technical analysis. As a customer of Destimoney, one receives daily 5-6 Research Reports on theire mails which they can use as tips for investing in the market.

STRATEGIES
Strategies play a very important role in achieving the targets a well-defined strategy can lead to an effective achievement of the targets. So in order to achieve the targets the following strategies were adopted. Strategies of Destimoney: Destimoney give more important to their customers needs and satisfaction, and company made marketing strategies with reference to their customers needs. 4ps are also working in the company that means price, promotion, product, and place. Strategies are describe as follows,

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Price Strategy: Brokerage of the company is 0.50 paisa per trading. If the client done trading more than 10 lakhs then they are charged 0.30 paisa brokerage. Client also pays Rs.888/- at the time of registration and company provides free online software to their clients. Promotion strategy: Destimoney given more important to the customers and their satisfaction. company promote their service through charging less brokerage that is trading is more than 10 lakh .Company made Umbrella marketing also. Then company reduces the brokerage. Product strategy: Destimoney provide financial product to the customers, Destimoney is depository participant with Central Depository Services (India) Limited for trading. Destimoney Depository Services is part of their value added services to their clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs. Place strategy: Destimoney provide its service to the client at any time, any where as per the client convinces, Destimoney provide online trading software to the client so the client made trading on his own. Destimoney have recently developed new system Destimoney.com where he found Start Trading Now, where he can make trade without software installation in just-in-time.

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PRODUCTS SALES STRATEGY Train to the sales person Meeting in daily morning To maintain relationship with clients High salary + incentive on the bases of sales + incentives on trading volume Customer satisfaction by providing proper guideline to the clients.

SWOT Analysis
During this training at Destimoney, we had come to know the Strengths Weaknesses Opportunities Threats for the company and it is very useful for a company to analyze them. Therefore, the SWOT analysis is presented here and the suggestions for maintaining strengths and removing weaknesses are explained.

Strengths: Well-maintained infrastructure. Dedicated, Intelligent and Loyal staff. On-line Trading products. Lowest brokerage and other charges w.r.t. Competitors. The best investment advice correct up to 70-90 % through dedicated research and reports. Wide product range to enable the clients to choose the best alternative. One of the best DPs in India. A positive image in the existing clients.

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Weaknesses: Less awareness in the market. Time consuming process for account opening, resolving the problems of the customers, etc. Service quality is not maintained accordingly how they are promoted.

Opportunities: Large primary market to sit as a book runner for the other companies just like Kotak securities ltd. that runs the books of share holdings for many companies Slope of stock market towards delivery based transactions. Large potential market for delivery and intra-day transactions. Open interest of the people to enter in stock market for investing. Attract the customers who are dissatisfied with other brokers & DPs. An indirect opportunity generated by the market from its bullishness.

Threats: Decreasing rates of brokerage in the market. Increasing competition against other brokers & DPs. Poor marketing activities for making the company known among the customers. A threat of loosing clients for any kind of weakness of the company. Indirect threat from instable stock market, i.e., low/no profit of Sharekhans clients would lead them to go for other broker/DP.

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COMPETITORS OF THE COMPANY ICICI Direct. Com Indiabulls Angelbroaking Kotak Securities KARVI Motilal Oswal JHAVERI Anand Rathi IL & FS HDFC Nirmalbang Ahmedabad Stock Exchange

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MAJOR PLAYERS OF THE INDUSTRY

S. S. Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan.com):
Sharekhan, Indias leading stock broker is the retail arm of SSKI, and offers you depository services and trade execution facilities for equities, derivatives and commodities backed with investment advice tempered by decades of broking experience. A research and analysis team is constantly working to track performance and trends. Thats why Sharekhan has the trading products, which are having one of the highest success rates in the industry. Sharekhan is having 240 share shops in 110 cities; the largest chain of retail share shops in India is of Sharekhan. In future, Sharekhan is planning to enter in Mutual funds, Insurance sector and banking sector to expand beyond the market currently covered by it. And it has started MF (Mutual Funds) on priority basis but wants to grow in it.

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ICICI WEB TRADE LTD. (ICICIdirect.com):

ICICIdirect.com was the first entrant into e-broking. ICICdirect.com provides the 3-in-1 to the users which ties in their saving bank account and their Demat account to their brokerage account electronically. This integration ensures that money is transferred to/from their bank account and the shares are transferred from/to their Demat account automatically without writing any cheques or transfer instructions while carrying out their trades in shares. ICICIdirect.com has the option of trading in shares in cash, margin or spot segments. An investor can also invest in 14 Mutual Funds (Prudential ICICI MF, Franklin Templeton India MF, Alliance Capital MF, JM MF, Birla Sun Life MF, Sundaram MF, IL&FS MF, Principal MF, HDFC MF, Standard Chartered MF, Reliance Capital MF, Kotak Mahindra MF, TATA MF and DSP MERRILL LYNCH MF) through their trading account.

5Paisa.com: 5paisa is the trade name of India Infoline Securities Private Limited (5paisa), member of National Stock Exchange and The Stock Exchange, Mumbai. 5paisa is a wholly owned subsidiary of India Infoline Ltd, Indias leading and most popular finance and investment portal. 5paisa has emerged as one of leading players in e-broking space in India. The companys brokerage is one of the lowest in the industry. It also provides the research on commodities. Investors can benefit from its analysis and advice available at the click of the mouse. For those who prefer to trade the traditional way, India Infoline investor points are available across the country. India Infoline was founded by a group of professionals in 1995. Its institutional investors include Intel Capital, one of the leading technology companies in the world promoted by the UK government, ICICI, TDA and Reeshanar. The company offers a slew of products such as stock and derivatives broking, commodities broking and mutual funds.

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KOTAK SECURITIES LIMITED (kotakstreet.com):

Kotak Securities Ltd., a strategic joint venture between Kotak Mahindra Bank and Goldman Sachs (holding 25% - one of the worlds leading investment banks and brokerage firms) is Indias leading stock broking house with a market share of 5 - 6 %. Kotak Securities Ltd. has been the largest in IPO distribution - It was ranked number One in 2003-04 as Book Running Lead Managers in public equity offerings by PRIME Database. It has also won the Best Equity House Award from Finance Asia - April 2004. Kotak Securities Ltd is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL) providing dual benefit services wherein the investors can use the brokerage services of the company for executing the transactions and the depository services for settling them. The company has 42 branches servicing around 1, 00,000 customers. Kotakstreet.com the online division of Kotak Securities Limited offers Internet Broking services and also online IPO and Mutual Fund Investments. Kotak Securities Limited manages assets over 1700 crores under Portfolio Management Services (PMS) which is mainly to the high end of the market. Kotak Securities Limited has newly launched Kotak Infinity as a distinct discretionary Portfolio Management Service which looks into the middle end of the market.

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India Bulls:

Indiabulls is India's leading retail financial services company with 77 locations spread across 64 cities. Its size and strong balance sheet allows providing varied products and services at very attractive prices, our over 750 Client Relationship Managers are dedicated to serving your unique needs. Indiabulls is lead by a highly regarded management team that has invested crores of rupees into a world class Infrastructure that provides real-time service & 24/7 access to all information and products. The Indiabulls Professional Network offers real-time prices, detailed data and news, intelligent analytics, and electronic trading capabilities, right at your finger-tips. This powerful technology is complemented by our knowledgeable and customer focused Relationship Managers. Indiabulls offers a full range of financial services and products ranging from Equities, Derivatives, Demat services and Insurance to enhance wealth and to achieve the financial goals.

MOTILAL OSWAL SECURITIES LTD. (MOSt):

One of the top-3 stock-broking houses in India, with a dominant position in both institutional and retail broking, MOSt is amongst the best-capitalized firms in the broking industry in terms of net worth. MOSt was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology have enabled it to blossom into a thousandmember team.

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The institutional business unit has relationships with several leading foreign institutional investors (FIIs) in the US, UK, Hong Kong and Singapore. In a recent media report MOSt was rated as one of the top-10 brokers in terms of business transacted for FIIs. The retail business unit provides equity investment solutions to more than 50,000 investors through 270 outlets spanning 150 cities and 22 states. MOSt provides Advice-Based Broking, Portfolio Management Services (PMS), E-Broking Services, Depository Services, Commodities Trading, and IPO and Mutual Fund Investment Advisory Services. Its Value PMS Scheme gave a 160% post-tax return for the year ended March 2004. In AsiaMoney Brokers Poll 2003 MOSt has been rated as the Best Domestic Research HouseMega Funds ,while in 2000 and 2002 it has been rated as the Best Domestic Equity Research House and Second best amongst Indian Brokerage firms respectively.

HDFC SECURITIES LTD (HDFCsec):

HDFCsec is a brand brought to you by HDFC Securities Ltd, which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customer base of the HDFC Group and other investors a capability to transact in the Stock Exchanges & other financial market transactions. The services comprise online buying and selling of equity shares on the National Stock Exchange (NSE). Buying and selling of select corporate debt and government securities on the NSE would be introduced in a subsequent phase. In a few months, they will also start offering the following online trading services on the BSE and NSE: 1. Buying and selling of shares on the BSE 2. Arbitrage between NSE & BSE 3. Trading in Derivatives on the NSE 4. Margin trading products. They are also planning to include buying and selling of Mutual Funds, IPO subscriptions, Right issues, purchase of Insurance policies and asset financing.

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PRICE COMPARISION WITH OTHER MAJOR PLAYER

Parameters

Opening Fee Trading Demate A/C A/c NIL NIL 250 NIL 888/750 250 600

Brokerage Delivery Square Off 0.30 0.75 0.40 0.20 0.03 0.18 0.10 0.05

Interface Bank Associated HDFC, ICICI Bank, Union Bank, PNB ICICI Bank HDFC, ICICI Bank ICICI Bank, UTI, OBC, HDFC, City Bank Kotak Bank, City Bank HDFC & Other Bank

Destimoney ICICI Direct IndiaBulls 5 Paisa

Kotak Street HDFC Securities

500 700 NIL

0.59 0.50

0.06 0.15

Destimoney Financial Services Pvt. Ltd. is a private company and member of : National Stock Exchange, Bombay Stock Exchange, MCX NCDEX PMS from SEBI

Depository Services Online IPO

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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.

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Products of Destimoney
Destimoneys products are basically divided into online and offline products. OFFLINE Offline A/c is the A/c for the investors who are not familiar with the use of computer. The A/C opening charges Rs.888/-(One time) For 1st Year Demat A/C is Free, On 2nd Year AMC charge is applicable. ONLINE The various benefits the client gets from the online trading are: Freedom from Paperwork: Integrated trading, bank and Demat

account (auto pay-in and pay-out of securities) with digital contracts removes all paperwork. Instant Credit And Transfer: Instant transfer of funds from bank accounts of client's choice to his/her Destimoneys trading account. Timely Advice: Make informed decisions with expert advice, investment calls and live market commentary. Real-Time Portfolio Tracking: Benefit from real-time information of your investment and current portfolio value.

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ONLINE You get features like a) Mutltiple watchlists b) Integrated Banking, demat and digital contracts c) Instant credit and transfer d) Real-time portfolio tracking with price alert and, of course, the assurance of secure transactions. Trade Anywhere: Enjoy the ease of trading from any part of the world in a completely secure environment. PORTFOLIO MANAGEMENT SYSTEM With the Sharekhan Team Managing Your Portfolio, you can be assured that your investments are in safe hands! We follow a multi-disciplined approach incorporating quantitative analysis, fundamental analysis and technical analysis. This multi-pronged approach enables us to provide risk-controlled returns for you. Right from choosing the combination of stocks most suitable for you based on your risk appetite to monitoring their movements and discussing them with you at special events

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MUTUAL FUND Introduction Everybody talks about mutual funds, but what exactly are they? Are they like shares in a company, or are they like bonds and fixed deposits? Will I lose all my money in funds or will I become an overnight millionaire? Big questions that get answered in just five minutes. Meaning A mutual fund is a pool of money that is invested according to a common investment objective by an asset management company (AMC). The AMC offers to invest the money of hundreds of investors according to a certain objective - to keep money liquid or give a regular income or grow the money long term. Investors buy a scheme if it fits in with their investment goals, like getting a regular income now or letting the money accumulate over the long term. Investors pay a small fraction of their total funds to the AMC each year as investment management fees.

ONLINE IPO

Online IPO (Initial Public Offering) is a new service started by Sharekhan for providing the application form of any companys issues of shares 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

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RESULTS OR FINDING
When we started our project we used questionnaires and we followed this:

1. about the people's investment.

Investments Equity Mutual Funds Postal savings Fixed Deposits Total No. of people 42 27 13 18 100

Investment of people

50 40 30 20 10 0

No. of Clients

42 27 13 18

Equity

Mutual Funds

Postal savings

Fixed Deposits

Investments

Figure 1. About the people's investment. INTERPRETATION From the above data and Graph, we can say that now a day most of people prefer invest in equity market. So, in this data 42 people invest in stock market and after 27 people invest in Mutual funds, 18 people invest in the bank in fixed deposit and so less 13 people invest in the post.

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2. Objective of the Investments.

Investments short term Medium term Long term Total

No. of clients 57 14 29 100

Investment of people

Long term, 29

Medium term, 14

short term, 57

short term Medium term Long term

Figure 2. Objective of the Investments INTERPRETATION From the above data and Graph, we can say that now a day most of people preferred the short term investment and get a good profit in short time. So, in this data 57 people preferred short term investment, 29 people preferred long term investment because of to get the high interest and very less 14 people preferred in medium term investment.

3. People interested in stock market.

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People Interested Not Interested Total

No. of clients 42 58 100

No. of clients

Not Interested Interested 0 20 40 42

58 No. of clients

60

80

Figure3. People interested in stock market.

INTERPRETATION From the above data and Graph, we can say that out of 100 people 42 people

interested in stock market and 58 people do not interested in stock market because of the different reasons.

4. If no, the reason.

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Reason Happy with own business Risk Lack of knowledge Any other

No. of clients 34 29 31 6

R a o th t n t in re te p o le e s n a o te s d e p
H p yw o n a p ith w b sin ss u e
H p yw a p ith o n w b sin ss u e ,3 4

A yo e , 6 n th r Lc o ak f k o le g nw de ,3 1

R isk

L ck o kn w d e a f o le g

R isk ,2 9

A yo e n th r

Figure 4. If no, the reason

INTERPRETATION From the above data and Graph, we can say that most of people do not interested in

stock market because they happy with their own business, lack of knowledge and risk. So, 34 people happy with their own business, 31 people lack of knowledge, 29 people because of risk and 6 people had their own reason.

5. Demat & Trading A/c in different companies where.

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Company Destimoney Angel broking ICICI Direct.com Kotak Securities HDFC Zavery AhmedabadStock Exchange Other
30 25 20 15 10 5 0 No of clien . ts

No. of clients 21 26 12 4 6 0 18 13
Destim ey on An el b kin g ro g IC I Direct.co IC m Ko S rities tak ecu HDFC Z avery Ah ed ad toc Exch g m ab S k an e

Figure5. Demat & Trading A/c in different where

INTERPRETATION From the above data and Graph, we can say that most of peoples Demat A/c in

Destimoney. So, from this data 26 peoples a/c in Destimoney, 21 peoples a/c in Destimoney, 12 peoples a/c in ICICI Direct. Com, 18 peoples a/c in Ahmedabad Stock Exchange, 6 peoples a/c in HDFC, 4 peoples a/c in Kotak securities and no one a/c in Zavery. So, most of people connected with the Destimoney and satisfied with the services of Destimoney.

6. Clients prefer the trading.

Trading No. of clients 74

Online Offline Total

67 33 100

Preference about the trading

Offline, 33

Online Offline Online , 67

Figure 6. Clients prefer the trading.

INTERPRETATION From the above data and Graph, we can say that out of 100 people, 67 people

preferred online trading and 33 people preferred offline trading because of todays technical facilities and peoples knowledge.

7. Different types of trading.

Trading No. of clients 75

Intraday Delivery F&O Total

23 68 9 100

P reference ab o ut th e trad in g

F&O, 9 Intraday , 23 Intraday Delivery F&O Delivery , 68

Figure 7. Different types of trading

INTERPRETATION From the above data and Graph, we can say that out of 100 people 68 people preferred

delivery based trading, 23 people preferred intraday trading and very less 9 people preferred F&O trading. Because people do not take much risk in trading.

8. Name heard of Destimoney

About Destimoney No. of clients 76

Heard of Destimoney Not heard of Destimoney Total

70 60 50 40 30 20 10 0 No. of c lients

38 62 100

H rd of D tim ea es oney Not hea of D timoney rd es

figure 8. Name heard of Destimoney

INTERPRETATION

From the above data and Graph, we can say that out of 100 people, 38 people heard of Destimoney and 62 people do not heard of Destimoney. Because Destimoney do not give the advertisement. And some people do not have the time to get the knowledge about the stock market from their business.

9. Attraction from the features of Destimoney.

No. of clients 77

Features

Service personal Prompt service Brokerage charge Free AMC

50 40 30 20 10 0

8 46 25 21

S ervice pers onal Prom s pt ervice Brokerag charg e e F AMC ree

No. of clients

Figure 9. Attraction from the features of Destimoney.

INTERPRETATION From the above data and Graph, we can say that most of people attract with the

Destimoney free AMC and prompt services like Relationship Managers services. So, in this data 79 people attract with free AMC, 62 people attract with prompt service and 4 people attract with personal service but no one attract with Destimoney brokerage charges because they think that service is the must.

10. People interested for opening the A/c.

Interest Interested No. of Clients 22 78

Not Interested Total

78 100

In re t o th C n te s f e lie ts
In tereste d, 22

In re d te ste
Nt o Inte rested , 78

N t In re d o te ste

Figures 10. People interested for opening the A/c.

INTERPRETATION From the above data and Graph, we can say that out of 100 people 78 people

do not interested for opening the A/c in Destimoney and 22 people interested for opening the a/c in Destimoney. Because now days most of people's already having the demat a/c in different where.

11. Expectation of the Clients.

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Expectation of the clients Low brokerage No hidden charges Getting contract notes & payment on time Good relationship between clients & employee Tips everyday

No. of clients 15 12 24 37 12

80

40 35 30 25 20 15 10 5 0 No. of clients

L brokerag ow e

No hiddencharg es

Gettingcontra ct notes &pa ent on ym tim e Goodrela tionship betweenclients & em ployee T everyda ips y

Figure 11. Expectation of the Clients. INTERPRETATION From the above data and Graph, we can say that about the expectation of the clients from the stock broking company that 73 people expect good relation between clients & employee, 65 people expect getting contract notes and payment on time, 62 people getting tips everyday, 43 people expect no hidden charges and very less 11 people expect low brokerage charges. So, most of people expect good relation between clients and employees.

RECOMMEDATION
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 We should given the advertisement for our company. We should introduce promotional skim for corporate. So we can target mass of clients at a time, which will also help to build relationship with the corporate. We should do Mass Marketing so, we introduced special skims for corporate.

CONCLUSION

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As we completed our SIP Training in Destimoney Securities Ltd., one of the online share treads company in India. We got the practical experience in working with such a big organization. It is very important for us to getting knowledge of Stock Market with Multi National Company. During this SIP, we have concluded that we have learnt many things like: We got training for five days for product introduction. How to open a Online Trading account and what are the documents are necessary to open a Demat account How to approach the customer. They gave us training about company profile like company product, company environment, company network distribution to handle all customers and marketing strategies. As per our whole experience of SIP period we found that in some areas of Ahmedabad people dont know about Destimoney' activities like Navrangpura etc. so, to create the awareness company have to some online seminars in this types of areas.

ANNEXURE

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UNIVERSAL TECHNOLOGY

COLLEGE

OF

ENGINEERING

&

Name __________________________________________ Address ___________________________________________________________________________ ___________________________________________________________________________ ________________________________ Phone No. __________________________________ Age ________________________ Profession _________________________________ Name of the Organization _______________________________ _____________________________________________________

Where do you invest your savings?

Equity Mutual Funds Postal savings Fixed Deposits

What is the objective of your Investment? Short Term Medium Term Long Term

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Are you interested in Stock Market? Yes No

If No, what is the reason? Happy with own business Risk Lack of knowledge Any other

Do you have Demat & Trading A/c? If yes so where? Destimoney Destimoney ICICI Direct.com Kotak Securities HDFC Zavery Ahmedabad Stock Exchange Other (please specify)

Which type of trading you prefer?

Online Offline

In which generally you trade? Intraday Delivery F&O

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Have you ever heard of Destimoney? Yes No

Which features would you attract to open an A/c in Destimoney? Service personal Prompt service Brokerage charge Free AMC

Would you like to open an A/c in Destimoney?

Yes No

Which type of services do you expect from a stock broking company or Destimoney?
Low brokerage No hidden charges Getting contract notes & payment on time Good relationship between clients & employee Tips everyday Signature:

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BIBLIOGRAPHY
BOOK
Marketing Management Research Methodology Human Resource Production and Operation Phillip Kotler Kooper Aswathapa Adam & Abert

Magazine
Value Line Business World NSDL

Web Site
1) www.Destimoney.com 2) www.amfindia.com 3) www.google.com 4)www.bseindia.com 5)www.nseindia.com

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GLOSSARY
BSE Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875.

NSE The National Stock Exchange of India (NSE) is one of the largest and most advanced stock markets in India. The NSE is the world's third largest stock exchange in terms of transactions. It is located in Mumbai, the financial capital of India. The NSE VSAT terminals, 2799 in total (31st December 2005), cover 320 cities in India.

NIFTI The Nifty is an index for companies on the National Stock Exchange of India. It consists of 50 companies representing approximately 10% of the traded value of all stocks on the National Stock Exchange of India.

Futures In finance, a futures contract is a standardized contract, traded on a futures exchange, to buy or sell a certain underlying instrument at a certain date in the future, at a pre-set price. The future date is called the delivery date or final settlement date. The pre-set price is called the futures price. The price of the underlying asset on the delivery date is called the settlement price. The futures price, naturally, converges towards the settlement price on the delivery date.

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Options In finance, an option is a contract whereby one party (the holder or buyer) has the right but not the obligation to exercise a feature of the contract (the option) on or before a future date (the exercise date or expiry). The other party (the writer or seller) has the obligation to hint's the specified feature of the contract. Since the option gives the buyer a right and the seller an obligation, the buyer has received something of value. The amount the buyer pays the seller for the option is called the option premium. Commodity Markets Commodity markets are markets where raw or primary products are exchanged. These raw commodities are traded on regulated exchanges, in which they are bought and sold in standardized Contracts. Demat account 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 Exposure Exposure is a one type of credit. In this facility you can buy shares more than a balance in your trading account. AMC Annual maintenance charges are charged by the broking against maintaining your Trading account. for the investor directly by the Depository.

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