Comparative Study of IndiaBulls Securities Ltd with other Brokerage companies

Submitted to: KURUKSHETRA UNIVERSITY, KURUKSHETRA In the Partial Fulfillment of the Requirement For the degree of Master of Business Administration (session 2010-2012)

SUBMITTED BY:

JAGJEET KAUR
MBA Final year

(Approved by AICTE & Affiliated to Kurukshetra University, Kurukshetra, Yamunanagar-135001)

DECLARATION
I Jagjeet Kaur, student of MBA (Final) of Guru Gobind Singh Institute of Technology and Management Studies here by declare that the project report entitled as Comparative Study of Indiabulls with other Brokerage Companies, for the partial fulfillment of the degree of Master of Business Administration submitted to Kurukshetra University, Kurukshetra is the original work of mine and the data provided in the study to the best of my knowledge. This study has not been submitted to any other institution or university for award of any other degree.

Jagjeet kaur

ACKNOWLEDGEMENT
I express my sincere thanks to Mr. ASHOK PAHWA My supervisor & the management of INDIABULLS SEC. LTD. for giving me an opportunity to do the Summer Internship from their esteemed organization. I am personally grateful to Dr. Mohinder Singh (Director General) to allow me to under go to training. I give my sincere thanks to Mrs. Amit Joshi (Assistant Professor,) for her guidance and suggestions while selecting the topic for project till the final completion of the project. I am also thankful to the other members of each Section of the Finance Department for their guidance in the various issues of the Comparative Study of Indiabulls with other Brokerage Companies and helping me to understand the policies and procedures adopted for the smooth running of the Finance Department of a company. At last I would like to thank all the members of Finance section for being so co-operative, helpful and approachable all the time for sorting out my queries and problems.

Jagjeet kaur

ACKNOWLEDGEMENTS
The limited vocabulary will not fail me to express my loyal and vulnerable thanks and gratitude to Mr. Ashok Pahwa(Branch Manager) moral support an help during the course of study. I emphatically express the regards and gratitude towards my speculative and dignified guide Mr. Puran for his expert invaluable and tireless guidance; constant encouragement; Painstaking and constructive criticism to accomplish such laborious and exhaustive work timely and perfectly. I avail the opportunity to thanks Mr.Pankaj Jain; who helped to ease my burden of works and extended heir help without any hesitation during my study. His blessings and inspiration were the guidance force through my academic career. Mere words wont be able to express my endearment to all my amicable; Mamta & Jitendra ; whose love, care, warmth and patience never seems to have end. There are emotions nothing else, which I submit to them. All the words in lexicon futile and meaningless if I fail to express my sense of regard to my parents for their scarifies, blessings and prayers; everlasting love and pain and belief in me. I solely claim all the responsibility for any shortcoming and limitation in this work.

Jagjeet kaur

PREFACE
The most motivating aspect associated with pursing a courses in management or business studies is the dynamism associated with it Dynamism of adding a new perspective to one ,s personality and vision by accumulating wider knowledge , developing analytical skill not only by traditional ways of teaching and learning but by observing thong at works. The project gives a considerable exposure to students and provides them with an opportunity to see the practical aspect of corporate world. The project is an opportunity to see the application part of what we study or learn in classroom. Management is that function of and enterprise. Which concern it self with direction, and control of the various actives to attain business objective .It is the science and art of preparing, organizing and directing human effort to control the force and utilize the materials of nature for the benefit of men .As a matter of fact, the management and the manager mixes some art to tries to shorten the gap of ignorance. It provides a chain of solution to critical problem of a manager. I have been given by final project on the topic marketing strategies used by INDIABULLS in Yamuna Nagar . The technology that give a person the power to invest their money any time any where.

INDEX
TOPICS PAGE NO.

Executive summary.. 7-9

Objective10 Research Methodology 11-13

Limitations 14 Company Profile ..

Introduction To Security Market

15-17 18-25

Introduction To Share Trading Pattern 26-31 Internet Based Trading. 32-35 Introduction To India bulls 36-45 Business Strategies46-48 Main brokerage houses of India 49-56

Comparative Study

57-63

SWOT Analysis 64-68 Data Interpretations & Analysis .. 69-85 Findings 86 Recommendations 87-88 Conclusion 89 Appendix 90-93 Bibliography 94-95

EXECUTIVE SUMMARY
I undertook the project at Indiabulls during my summer internship period in June 2006. The following project starts with an idea regarding the stock market and the brief history of Indiabulls. The study helps us to analyse the mind of the investors & their expected charges regarding Brokerage, Return, Annual maintenance charges & also to know the attitude and preference of the prospective investors regarding capital market.

The project contains the comparison chart of Indiabulls Securities Ltd. with Kotak Securities Ltd., Religare Securities & Sherkhan Ltd. The comparison is followed by the survey and its analysis and at the end the recommendations that could help to know what are the services and charges should be provided by any Brokerage houses so that investors can easily invest their money without any interference.
The report is divided into various sections:

1. The objective of project:

The main objective of working on this project is to compare the IndiaBulls with other leading brokerage houses and highlighting the SWOT Analysis of Indiabulls. For this we have compared various facilities of IndiaBulls with other competitive firms.

2. Methodology:
The method adopted to carry on this report was based on both primary and secondary sources. Initially we have collected data through primary source in the form of filling of questionnaire from public and personally talking with existing customers who are trading in stock market. Secondly information collected from internet sites, books, journals etc.

3. Introduction of Company:
This part describes the company profile. This part recognizes the achievements and rewards the company has achieved, it also gives little insights into what company offers to the Consumers. This section also describes the kind of technology used.

4. About Functional areas of IndiaBulls Securities Ltd.

Since the project leads to comparative analysis of IndiaBulls with other Brokerage houses, this section gives the details of what all areas IndiaBulls offers to the consumer.

5. SWOT Analysis of INDIABULLS

This section gives the detail of what are the strength ,weekness ,opportunity & threats of IndiaBulls .

6. Major players of stock market

This section gives the brief introduction of the different companies like Religare , Kotak Mahindera, Sharekhan which are having a share in stock market trading and are competitors of IndiaBulls in the market.

7. Comparative chart of various facilities provided by brokerage houses

This section gives the detail of the different competitors and different services provided by them. Then we have compared there services with our services.

8. Findings of the comparison done on the basis of questionnaire filled by clients

This section tells you about the findings which I got to know during my training in a premium trading company.

COMPANY PROFILE
Indiabulls is India's leading retail financial services company with over 300 locations in more than 110 cities. While our size and strong balance sheet allow us to provide you with varied products and services at very attractive prices, our over 4400 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 our clients with real-time service & 24/7 access to all information and products. Our flagship 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.

Innovation is the key to success- Proved by Indiabulls

Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal, friends got together to start the company. For some years they worked in the oil field services industry. The idea to start their own outfit on a technology platform was born in 1999 when Gagan Banga joined the three IITDelhi engineers who promoted the company. These first generation entrepreneurs knew very well that nothing small works. They didnt want to build a small business which would get overnight success and shut down; rather they wanted to build a sustainable profitable business This idea was to target the huge untapped retail segment of the market. The first task of course was to work out a sound business model, which was sustainable and profitable. They soon realized the implicit strength of their model. In 1999-2000, there was dotcom boom, there were a lot of dotcoms coming into being, lot of venture capitalists were funding the dotcoms business but none of the dotcom had any revenue model so the scope of a dotcom business was immense. Indiabulls came into existence to take advantage of this. The 3 promoters got together and took over a defunct brokerage company Orbis Securities- the whole idea was to get a brokerage license and a membership of the stock exchange. This brokerage firm was restarted and it started making miniscule amount of revenue for the company it basically catered to the HNIs - High Networth Individuals. Immediately after this the venture capitalists were contacted. In this there were several models, which were discussed including involving a strategic investor. Initially the company was promoted as a dotcom company. The promoters chose the famous Charles Schwab model, which perfectly addressed their need to have the business

on a technology platform. The idea was that since it worked in other parts of the world, it would work here also. The company thus had clear-cut revenue model. It was very clear in the minds of the promoters that revenue was very important. Profitability is the key to the entire thing. The emphasis on profitability was there from day one. Indiabulls has been profitable for every financial year beginning 2000-01 the only financial year it has not been profitable has been 1999-2000. The company focused on the retail segment and used Internet to exploit the massive scope in the retail segment. The company also enjoyed the first mover advantage, as at that time there was no company catering to the needs of retail segment through Internet. Sameer Gehlaut, took over as chairman and CEO, and now looks after sales, marketing and external relationships, while Rajiv Rattan, in the role of CFO and president, manages operations, finance and back office.

GROWTH STORY
Indiabulls has emerged as one of the leading and fastest growing financial company in less than two year, since its initial public offering in September 2004. It has a market capitalization of around USD 800 million and consolidated net worth of around USD 500 million.

2000-03

Indiabulls Financial Services Ltd. established Indias one of the first trading platforms with the development of an in house team.

2003-04

Indiabulls expands its service offerings to include Equity, F&O, Wholesale Debt, Mutual fund, IPO distribution and Equity Research. Indiabulls ventured into Insurance distribution and commodities trading. Company focused on brand building and franchise model.

2004-05

2005-06 Indiabulls came out with its initial public offer (IPO) in September 2004. Indiabulls started its consumer finance business. Indiabulls entered the Indian Real Estate market and became the

first company to bring FDI in Indian Real Estate.

Indiabulls won bids for landmark properties in Mumbai.

Indiabulls has acquired over 115 acres of land in Sonepat for residential home site development.

2006-07

Merrill Lynch and Goldman sac, one of the renowned investment banks in the world have increased their shareholding in Indiabulls. Indiabulls is a market leader in securities brokerage industry, With around 31% share in online trading, Farallon Capital and its affiliates, the worlds largest hedge fund committed Rs. 2000 million for Indiabulls subsidiaries Viz. Indiabulls Credit Services Ltd. and Indiabulls Housing Finance Ltd.

Steel Tycoon Mr. LN Mittal promoted LNM India Internet venture Ltd. acquired 8.2% stake in Indiabulls Credit Services Ltd.

2007-08

Indiabulls entered in a 50/50 joint venture with DLF, Kenneth Builders & Developers (KBD). KBD has acquired 35.8 acres of land from Delhi Development Authority through a competitive bidding process for Rs 450 crore to develop residential apartments. Indiabulls Financial Services Ltd. is included in the prestigious Morgan Stanley Capital International Index (MSCI).

Farallon Capital has agreed to invest Rs. 6,440 million in Indiabulls Financial Services Ltd.

OBJECTIVES OF STUDY

Primary Objective

Main objective is to make the comparative evaluation of performance of Indiabulls with other brokerage companies.

Secondary objectives
To gain information about the online trading practices in India with special reference to services provided by Indiabulls. To understand the Financial Market with due Focus on Online Trading in Equity Market To understand the features and services that influences the investor to invest. To know the competitive brokerage houses which are market players of India? To understand the attitude and preference of the prospective investors regarding capital market.

RESEARCH METHODOLOGY
Achieving accuracy in my research require in depth study regarding the subject. As the prime objective of the project is to find out the marketing strategies which are used by INDIABULLS for attaching the people specially for the client in the market

Research Problem
The first step conducting a research is to carefully define the research problem. The present study has been undertaken to analyze the various Indiabulls provide us and know the client opinion and preference towards this trend that which service provide is most liked by the client. Research design is the blue print to the study any problem. It is a plan for collection analysis and interpretation of data in a manner that relevant to the research purpose with economy in procedure The following are the different type of research design . 1.Research design in the case of exploratory research studies 2.Research design in the case of descriptive research studies 3.Research design in the case of diagnostic research studies 4.Research design in the case of Experiment research studies

Universe or survey population :Sample will be selected from the client of Indiabulls in the Yamuna Nagar through the questionnaire.

Sample Design
The amount of research work is limited by shortage of time and resources .Due to these limitation it is not possible together complete information .So technique of sampling is applied .The sample are so selected that they are representative of the entire population. Sampling unit : Client Type of research : Analytical Sample size : 100 Respondents Sampling Media : Questionnaire Sampling Technique : Convenient Sampling

Source of Data:The data is based on via which the most recent and accurate piece of first hand information could be collected. Secondary data has been used to support primary data wherever needed.

Primary data collected using the following techniques:1. 2. 3. Questionnaire Method Direct Interview Method Observation Method

The main tool was the questionnaire method. Further direct method, Where a face to face formal interview was taken. Lastly observation method has been continuous with the questionnaire method. As one continuously observes the surrounding environment he works in.

Procedure of Research Methodology:1. To conduct this research by the help of questionnaire the target population was the investor. 2. Target geographic was Yamuna Nagar.

3. Sample size of 100 was taken. 4. To these 100 people a questionnaire was given, the questionnaire was the combination of both open ended and close ended. 5. Some dealers were also interviewed. 6. Finally the collected data and information was analyzed.

LIMITATIONS

The various Limitations are:-

Lack of awareness of Stock market: -- Since the area is not known

before it takes lot of time in convincing people to start investing in shares primarily in secondary market.

Most people comfortable with traditional brokers: -- As people

are doing trading from there respective brokers, they are quite comfortable to trade via phone.

Some respondents were unwilling to talk: --

Some respondents either do not have time or willing to respond as they are quite annoyed with the phone call.

Inaccurate Leads :--

Sometimes leads are provided which had error in it which varies from only 5 digit phone number to wrong phone number

Misleading concepts: -- Some people think that shares are too risky and just
another name of gamble but they dont know its not at all that risky for long inve

INTRODUCTION TO SECURITY MARKET

SECURITIES
The definition of Securities

as per the Securities Contracts Regulation Act (SCRA), 1956,

includes instruments such as shares, bonds, scrips, stocks or other marketable securities of similar nature in or of any incorporate company or body corporate, government securities, derivatives of securities, units of collective investment scheme, interest and rights in securities, security receipt or any other instruments so declared by the Central Government. The functions of Securities Market Securities Markets is a place where buyers and sellers of securities can enter into transactions to purchase and sell shares, bonds, debentures etc. Further, it performs an important role of enabling corporate, entrepreneur to raise resources for their companies and business ventures through public issues. Transfer of resources from those having idle resources (investors) to others who have a need for them (corporate) is most efficiently achieved through the securities market. Securities markets provide channels for reallocation of savings to investments and entrepreneurship. Savings are linked to investments by a variety of intermediaries, through a range of financial products, called Securities. The securities one can invest Shares Government Securities Derivative products Units of Mutual Funds etc. are some of the securities investors in the securities market can invest in

SEBI AND ITS ROLE

The Securities and Exchange Board of India (SEBI) is the regulatory authority in India established under Section 3 of SEBI Act, 1992. SEBI Act, 1992 provides for establishment of Securities and Exchange Board of India (SEBI) with statutory powers for: (a) Protecting the interests of investors in securities (b) Promoting the development of the securities market (c) Regulating the securities market. Its regulatory jurisdiction extends over corporate in the issuance of capital and transfer of securities, in addition to all intermediaries and persons associated with securities market. SEBI has been obligated to perform the aforesaid functions by such measures as it thinks fit. In particular, it has powers for: Regulating the business in stock exchanges and any other securities markets. Registering and regulating the working of stock brokers, subbrokers etc Promoting and regulating self-regulatory organizations. Prohibiting fraudulent and unfair trade practices. Calling for information from, undertaking inspection, conducting inquiries and audits of the stock exchanges, intermediaries, self-regulatory organizations, mutual funds and other persons associated with the securities market. The participants in the Securities Market The securities market essentially has three categories of participants, namely, The issuers of securities Investors in securities The intermediaries, such as merchant bankers, brokers etc. While the corporate and government raise resources from the securities market to meet their obligations, it is households that invest their savings in the securities market.

The segments of Securities Market The securities market has two interdependent segments: the primary (new issues) market and the secondary market. The primary market provides the channel for sale of new securities while the secondary market deals in securities previously issued. The National Stock Exchange of India Ltd. (NSE), set up in the year 1993, is today the largest stock exchange in India and a preferred exchange for trading in equity, debt and derivatives instruments by investors. NSE has set up a sophisticated electronic trading, clearing and settlement platform and its infrastructure serves as a role model for the securities industry. The standards set by NSE in terms of market practices; products and technology have become industry benchmarks and are being replicated by many other market participants It provides a 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 the on-line system has helped in integrating retail investors across the nation. The exchange has a network in more than 350 cities and its trading members are connected to the central servers of the exchange in Mumbai through a sophisticated telecommunication network comprising of over 2500 VSATs. NSE has around 850 trading members and provides trading in over 1000 equity shares and 2500 debt securities. Besides this, NSE provides trading in various derivative products such as index futures, index options, stock futures, stock options and interest rate futures. At NSE, it has always been our endeavor to continuously upgrade the skills and proficiency of the Indian investor. Since, financially literate investors are the backbone of the securities market.

CAPITAL MARKET

The capital market provides financing to meet the denomination, liquidity, maturity, risk (with respect to credit, interest rate, and market), and other characteristics desired by those who have a surplus of funds and those who have a deficit of funds. The capital market as a whole consists of overnight to long-term funding. The short to medium end of the maturity spectrum is called the money market proper, and the long end is identified as the capital market. The financial instruments range from money market instruments to thirty-year or longer bonds in credit markets, equity instruments, insurance instruments, foreign-exchange instruments, hybrid instruments, and derivative instruments. There has been an explosion of innovation in the creation and development of instruments in the money and capital markets since about 1960 in both debt and equity instruments. Some of the important (by volume) money market instruments are Treasury bills, federal agency securities, federal funds, negotiable certificates of deposits, commercial paper, bankers' acceptances, repurchase agreements, euro currency deposits, euro currency loans, futures instruments and options instruments. Similarly, some of the key capital market instruments are U.S. securities; U.S. agency securities; corporate bonds; state and local government bonds; mortgage instruments; financial guarantees; securitized instruments; broker-dealer loans; foreign, international, and global bonds; and Eurobonds

PRIMARY MARKET
The primary is that part of the capital markets that deals with the issuance of new securities. Companies, governments or public sector institutions can obtain funding through the sale of a new stock or bond issue. This is typically done through a syndicate of securities dealers. The process of selling new issues to investors is called underwriting. In the case of a new stock issue, this sale is an initial public offering (IPO). Dealers earn a commission that is built into the price of the security offering, though it can be found in the prospectus. Features of Primary Market are: This is the market for new long term capital. The primary market is the market where the securities are sold for the first time. Therefore it is also called New Issue Market (NIM).

 In a primary issue, the securities are issued by the company directly to investors. The company receives the money and issue new security certificates to the investors. Primary issues are used by companies for the purpose of setting up new business or for expanding or modernizing the existing business. The primary market performs the crucial function of facilitating capital formation in the economy. The new issue market does not include certain other sources of new long term external finance, such as loans from financial institutions. Borrowers in the new issue market may be raising capital for converting private capital into public capital; this is known as going public. Methods of issuing securities in the Primary Market Initial Public Offer ue.

SECONDARY MARKET
Rights Issue (For existing Companies) Preferential IssThe secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering. Alternatively, secondary market can refer to the market for any kind of used goods. The market that exists in a new security just after the new issue is often referred to as the aftermarket. Once a newly issued stock is listed on a stock exchange, investors and speculators can easily trade on the exchange, as market makers provide bids and offers in the new stock.

Functions

In the secondary market, securities are sold by and transferred from one investor or speculator to another. It is therefore important that the secondary market be highly liquid (originally, the only way to create this liquidity was for investors and speculators to meet at a fixed place regularly.) Secondary marketing is vital to an efficient and modern capital market. Fundamentally, secondary markets mesh the investor's preference for liquidity (i.e., the investor's desire not to tie up his or her money for a long period of time, in case the investor needs it to deal with unforeseen circumstances) with the capital user's preference to be able to use the capital for an extended period of time. For example, a traditional loan allows the borrower to pay back the loan, with interest, over a certain period. For the length of that period of time, the bulk of the lender's investment is inaccessible to the lender, even in cases of emergencies. Likewise, in an emergency, a partner in a traditional partnership is only able to access his or her original investment if he or she finds another investor willing to buy out his or her interest in the partnership. With a securitized loan or equity interest (such as bonds) or tradable stocks, the investor can sell, relatively easily, his or her interest in the investment, particularly if the loan or ownership equity has been broken into relatively small parts. This selling and buying of small parts of a larger loan or ownership interest in a venture is called secondary market trading.

OTCEI (The OTC Exchange of India)

The OTC Exchange of India (OTCEI) incorporated under the provisions of the

Companies Act 1956, is a public limited company. It allows listing of small and medium sized companies. The minimum issued share capital required of a company that wants to be listed on OTCEI is Rs.3 million and the maximum Rs.250 million. Companies engaged in investment, leasing, finance, hire purchase, amusement parks etc., and companies listed on any other recognized stock exchange in India are not eligible for listing on OTCEI. Also, listing is granted only if the issue is fully subscribed to by the public and sponsor.

OTCEI is promoted by the Unit Trust of India, the Industrial Credit and Investment

Corporation of India, the Industrial Development Bank of India, the Industrial Finance Corporation of India and others and is a recognized stock exchange under the SCR Act.

Benefits
The OTCEI has set up a national, automated screen based and ringless stock market.

It helps companies raise finance from the capital market in a cost effective manner and provides a convenient and effective avenue of capital market investment for investors at large. While the other recognized stock exchanges require that in order to have its securities listed the company should have an issued capital of not less than Rs.3crores out of which normally 25% is to be offered to the public, the minimum issued equity share capital of a company for eligibility for listing on the OTCEI is Rs.30lacs. Listing on OTCEI is advantageous to companies because of the high liquidity of these securities, which is a result of compulsory market making, improved access and speed of transactions resulting from the extensive network of electronically interlinked counters. Companies can obtain a fair price of their securities by negotiating the same with the sponsors and save unnecessary issue expenses by placing their securities with the sponsors who will in turn off load the securities to the public. This mechanism is now popularly known as a bought out deal. Its wide computerized net work will be spread all over India and will make investment easier. All deals will be entered into through remote terminals which will be connected to the mainframe computer of the OTCE

INTRODUCTION TO SHARE TRADING PATTERN TRADING

NSE introduced for the first time in India, fully automated screen based trading. It uses a modern, fully computerized trading system designed to offer investors across the length and breadth of the country a safe and easy way to invest. The NSE trading system called 'National Exchange for Automated Trading' (NEAT) is a fully automated screen based trading system, which adopts the principle of an order driven market.

TRADING SYSTEM

NSE operates on the 'National Exchange for Automated Trading' (NEAT) system, a fully automated screen based trading system, which adopts the principle of an order driven market. NSE consciously opted in favour of an order driven system as opposed to a quote driven system. This has helped reduce jobbing spreads not only on NSE but in other exchanges as well, thus reducing transaction costs.

Market Types Order Books Order Matching Rules

DAY TRADING
It refers to the practice of buying and selling financial instruments within the same trading day such that all positions will usually (not necessarily always) be closed before the market close of the trading day. This is different from After-hours trading. Traders that participate in day trading are called day traders. Some of the more commonly day-traded financial instruments are stocks, stock options, currencies, and a host of futures contracts such as equity index futures, interest rate futures, and commodity futures. Day trading used to be the preserve of financial firms and professional investors and speculators. Many day traders are bank or investment firm employees working as specialists in equity investment and fund management. However, day trading has become increasingly popular among casual traders due to advances in technology, changes in legislation, and the popularity of the internet.

TRADER
In finance, a trader is someone who buys and sells financial instruments such as stocks, bonds and derivatives. Traders are either professionals working in a financial institution or a corporation, or casual individual investors or speculators. They buy and sell financial instruments traded in the stock markets, derivatives markets and commodity markets, comprising the stock exchanges, derivatives exchanges and the commodities exchanges. Several categories and designations for diverse kinds of traders are found in finance, these may include:

Stock trader Day trader Pattern day trader Swing trader Floor trader Rogue trader

TRADING SYSTEM - MARKET TYPES

The NEAT system has four types of market. They are: Normal Market All orders which are of regular lot size or multiples thereof are traded in the Normal Market. For shares that are traded in the compulsory dematerialized mode the market lot of these shares is one. Normal market consists of various book types wherein orders are segregated as Regular lot orders, Special Term orders, Negotiated Trade orders and Stop Loss orders depending on their order attributes. Odd Lot Market All orders whose order size is less than the regular lot size are traded in the odd-lot market. An order is called an odd lot order if the order size is less than regular lot size. These orders do not have any special terms attributes attached to them. In an odd-lot market, both the price and quantity of both the orders (buy and sell) should exactly match for the trade to take place. Currently the odd lot market facility is used for the Limited Physical Market as per the SEBI directives. Auction Market In the Auction Market, auctions are initiated by the Exchange on behalf of trading members for settlement related reasons. There are 3 participants in this market.

Initiator - the party who initiates the auction process is called an initiator Competitor - the party who enters orders on the same side as of the initiator Solicitor - the party who enters orders on the opposite side as of the initiator

 Spot Market Spot orders are similar to the normal market orders except that spot orders have different settlement periods vis--vis normal market. These orders do not have any special terms attributes attached to them. Currently the Spot Market is not in use.

MARKET SEGMENTS
The Exchange operates the following sub-segments in the Equities segment:

Rolling Settlement Limited Physical Market Institutional Segment Trade for Trade Segment

Rolling Settlement In a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. At NSE, trades in rolling settlement are settled on a T+2 bases i.e. on the 2nd working day. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE holidays, Saturdays and Sundays are excluded. Typically trades taking place on Monday are settled on Wednesday, Tuesday's trades settled on Thursday and so on. Limited Physical Market Pursuant to the directive of SEBI to provide an exit route for small investors holding physical shares in securities mandated for compulsory dematerialized settlement, the Exchange has provided a facility for such trading in physical shares not exceeding 500 shares. This market segment is referred to as 'Limited Physical Market' (small window). The Limited Physical Market was introduced on June 7, 1999.

 Institutional Segment The Reserve Bank of India had vide a press release on October 21, 1999, clarified that inter-foreign-institutional-investor (inter-FII) transactions do not require prior approval or post-facto confirmation of the Reserve Bank of India, since such transactions do not affect the percentage of overall FII holdings in Indian companies. (Inter FII transactions are however not permitted in securities where the FII holdings have already crossed the overall limit due to any reason). To facilitate execution of such Inter-Institutional deals in companies where the cut-off limit of FII investment has been reached, the Exchange introduced a new market segment on December 27, 1999.

Trade for Trade Segment Trading in this segment is available only for the securities

Which have not established connectivity with both the depositories as per SEBI directive? The list of these securities is notified by SEBI from time to time. On account of surveillance action.

INTERNET BASED TRADING

The Securities & Exchange Board of India (SEBI) approved the report on Internet Trading brought out by the SEBI Committee on Internet Based Trading and Services In January 2000. Internet trading can take place through order routing systems, which will route client orders to exchange trading systems for execution. Thus a client sitting in any part of the country would be able to trade using the Internet as a medium through brokers' Internet trading systems. SEBI-registered brokers can introduce Internet based trading after obtaining permission from respective Stock Exchanges. SEBI has stipulated the minimum conditions to be fulfilled by trading members to start Internet based trading and services. Internet Trading at NSE NSE became the first exchange to grant approval to its members for providing Internet based trading services. In line with SEBI directives, NSE has issued circulars detailing the requirements and procedures to be complied with by members desirous of providing Internet based trading and services. Members can procure the Internet trading software from software vendors who are empanelled with NSE or they may develop the software through their own in-house development team or may procure the software from other nonempanelled vendors.

COMPUTER-TO-COMPUTER LINK (CTCL) FACILITY

NSE offers a facility to its trading members by which members can use their own trading front-end software in order to trade on the NSE trading system. This facility called Computer-to-Computer Link (CTCL) facility is available only to trading members of NSE. About the CTCL facility Trading Members can use their own software running on any suitable hardware/software platform of their choice. This software would be a replacement of the NEAT front-end

software that is currently used by members to trade on the NSE trading system. Members can use software customized to meet their specialized needs like provision of on-line trade analysis, risk management tools, integration of back-office operations etc. The dealers of the member may trade using the software remotely through the member's own private network, subject to approvals from Department of Telecommunication etc. as may be required in this regard.

Securities Available for Trading

The Capital Market (Equities) segment of NSE facilitates trading in the following instruments: A. Shares Equity Shares Preference Shares B. Debentures Partly Convertible Debentures Fully Convertible Debentures Non Convertible Debentures Warrants / Coupons / Secured Premium Notes/ other Hybrids Bonds C. Units of Mutual Funds

MARGINS
Categorization of stocks for imposition of margins

The Stocks which have traded atleast 80% of the days for the previous six months shall constitute the Group I and Group II. Out of the scrips identified above, the scrips having mean impact cost of less than or equal to 1% shall be categorized under Group I and the scrips where the impact cost is more than 1, shall be categorized under Group II.

The remaining stocks shall be classified into Group III. The impact cost shall be calculated on the 15th of each month on a rolling basis considering the order book snapshots of the previous six months. On the basis of the impact cost so calculated, the scrips shall move from one group to another group from the 1st of the next month.

For securities that have been listed for less than six months, the trading frequency and the impact cost shall be computed using the entire trading history of the security.

Categorization of newly listed securities For the first month and till the time of monthly review a newly listed security shall be categorized in that Group where the market capitalization of the newly listed security exceeds or equals the market capitalization of 80% of the securities in that particular group. Subsequently, after one month, whenever the next monthly review is carried out, the actual trading frequency and impact cost of the security shall be computed, to determine the liquidity categorization of the security. In case any corporate action results in a change in ISIN, then the securities bearing the new ISIN shall be treated as newly listed security for group categorization. Daily margins payable by members consists of the following: 1. Value at Risk Margin 2. Extreme Loss Margin 3. Mark to Market Margin

Introduction to India Bulls

INDIABULLS

Indiabulls is Indias leading Financial Services and Real Estate Company having over 640 branches all over India. India bulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance.

With around 4000 Relationship Managers, India bulls help its clients to satisfy their customized financial goals. India bulls through its group companies have entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars.

India bulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The market capitalization of India bulls is around Rs. 6,989.10 crores (April, 2012). India bulls and its group companies have attracted more than USD 800 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of the large shareholders of India bulls are the largest financial institutions of the world such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.

Business of the company has grown in leaps and bounds since its inception. Revenue of the company grew at a CAGR of 159% from FY03 to FY07. During the same period, profits of the company grew at a CAGR of 184%.

India bulls became the first company to bring FDI in Indian Real Estate through a JV with Farallon Capital Management LLC, a respected US based investment firm.

PRODUCTS AND SERVICES OFFERED BY INDIABULLS

1. Indiabulls Signature Account

2. Equity Research 3. Commodities 4. IPO Online 5. Depository Services 6. Power Indiabulls 7. Competitive Commission 8. Customer Support

Indiabulls Signature Account

Indiabulls Signature Account is standard Online trading account from India bulls and along with online trading it also provides priority telephone access that gives us direct access to your Relationship Manager and full access to 'Indiabulls Equity Analysis'. Application Trading Terminal Power Indiabulls Power Indiabulls Trading Terminal is most advanced new generation trading platform with great speed. Trading terminal is built in JAVA. Power Indiabulls is extremely rich in features like live news & alert, Technical Analysis, Fast order entry and execution etc.

Benefits
Control - Stay on top of your investments with convenient access to your account online or by phone. Confidence - Support your investing decisions with premium in-depth research Indiabulls Equity Analysis. Value - Enjoy competitive commissions and get the service and support you need at a fair price.

Features

Priority Service - Enjoy priority telephone access that gives you direct access to your Relationship Manager. Premium Research - Benefit from full access to Indiabulls Equity Analysis. Our objective, fact-based approach to rating stocks. Online Accounting - Stay on the top of your investments with a snapshot of your Account Statements. Get access to Portfolio statement and access to digital contract notes.

Documents required for opening account

First we need to open a Trading account in India Bulls. For that one must submit following documents:

You can open a Depository Participant (DP) account, through an India bulls branch. There is only a one-time fee of Rs.900 for opening DP accounts with India bulls at zero balance. 2 Passport size photographs. Photocopy of Income Tax Permanent Account Number (PAN) Card. Identity Proof photocopy in the form of any document: a) Passport b) PAN Card c) Voter ID d) Driving License e) Ration Card

1. Equity research
Equity research forms an integral part of the share trading experience. Equity research decides the stance one would take in the share trading industry. Forecasting scrip performance requires much more characteristics and skills than just advance arithmetical ability. It requires split-hair analysis of the market.

To do so one also needs to have excellent understanding of the market. Supported by valid, fact-based and reliable research inputs and published results, our research desk picks out stocks, analyzes its future scope and give a timely recommendation.

2. Commodities
Indiabulls Group offers a wide array of financial services to its customers. Indiabulls Commodities Private Limited (ICPL) a 100% subsidiary of Indiabulls Financial Services Limited offers commodity brokerage services to its customers. ICPL is a registered Trading-cum-Clearing member of Multi Commodity Exchange of India Ltd. (MCX) and National Commodity and Derivatives Exchange Ltd (NCDEX). These two Commodity Exchanges have shown a phenomenal growth in trading volumes. Significant trading as well as arbitrage opportunities exists for informed players in the futures market. ICPL is the right partner for you if you are keen on tapping opportunities being presented by this nascent commodities futures market. Indiabulls offer a clearly differentiated product to our clients with a strong focus on research. Its commodities research team has a rich research experience in the commodities markets. The specialized services provided by our research team include daily intraday reports, reports on Agri-commodites & Metals, weekly & medium term market outlook and arbitrage strategies.

3. IPO Online
For various reasons, we often miss the opportunity of subscribing to an IPO. It can either be because we could not procure the application form or we did not have the time to fill up the form and submit it. The most important benefit of the 'Online IPO' facility offered by India bulls Securities Ltd. is the convenience in submission of applications from anywhere breaking the limitations of time and geography. You dont need to submit the application in paper form, or write a cheque or go to submit it anywhere.

Now you have the convenience at your fingertip. You can quickly and seamlessly apply to the latest public offerings with just a few clicks. Indiabulls Securities Ltd. offers Online IPO facility to its registered trading customers at absolutely no cost. To use the Online IPO feature, you need to fulfill the following criteria: -You must be registered for Internet Trading with Indiabulls Securities Ltd. You must have a Demat account with Indiabulls Securities Ltd. You must have signed the POA agreement for Online IPOs. You must have access to Net Banking facility with those banks with which Indiabulls is providing Payment Gateways. Currently, it is providing payment gateways for ICICI, IDBI and HDFC banks.

4. Depository Services
Indiabulls is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialized shares. Indiabulls performs clearing services for all securities transactions through its accounts. We offer depository services to create a seamless transaction platform execute trades through Indiabulls Securities and settle these transactions through the Indiabulls Depository Services. Indiabulls Depository Services is part of our value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs. Schedule of charges can be done through: NSDL & CDSL.

5. Power Indiabulls
Regardless of how the market is performing or which way the economic winds are blowing, you, as a trader, are researching, charting, crafting a strategy, buying and selling. You are getting in, getting out and moving on to the next trade. Choose from a comprehensive offering of accounts, platforms and products. Customize our technology and services to support the way you work.

TECHNICAL ANALYSIS CHART

Features of Power Indiabulls
Live Streaming Quotes Fast Order Entry Tic by Tic Live Charts Technical Analysis Live News and Alerts Extensive Reports for Real-time Accounting

6. Competitive Commissions

Enjoy competitive commissions and get the service and support you need at a fair price Benefits Comprehensive Financial Services - As an Active trader, you'll have the tools, resources and support you need to execute your trading strategy, plus your choice of a wide range of investment products and services. Dedicated Support and Services - Enjoy priority access to Relationship Managers who are dedicated to support your trading and investing needs.

7. Customer Support
To activate Electronic Contract Notes on Email facility (ECN) To update your address in Trading and Demat account To update your contact details in Trading and Demat account To change your Relationship Manager or Branch To activate ECS Mandate in your Demat Account To receive SMS alerts from the depositories To add a nominee to your Demat Account

BENEFITS OF TRADING WITH INDIABULLS

Personal relationship Manager - 24/7. Most competitive brokerage and DP charges. Only one time account opening charges and no annual maintenance charges. Margin trading of 4 times the cash deposited for delivery based trade. Margin trading of 10 times the cash deposited for intra-day based trade. Buy today Sell tomorrow for all securities facility.

BUSINESS STRATEGIES
Increase the number of Client Relationships They are focused on increasing the number of client relationships through a wide network of offices throughout India and having more number of relationship managers to service these relationships. They plan to grow their business by growing the number of client relationships. During a downturn of the markets they believe that increased number of client relationships will add stability to their earnings. Offer Diversified Financial Products & Services

Company and its subsidiaries offer to their clients a wide range of financial services and products allowing the clients to leverage their relationship with Indiabulls and get products suiting their varied needs. This strategy allows them to gain share of wallet of the clients consumption of financial services. They offer to the client a comprehensive product offering and are able to increase their revenues per client by selling different products to the same client. India bulls offer equity, debt & derivatives brokerage, IPO distribution, mutual funds and insurance products. Their strategy is to increase the number of client relationships and then leverage those client relationships into offering in a whole suite of financial products. Multiple Channels Enhance Customer Experience and Opportunities to interact Companys clients can access their products and services through 135 offices spread across 95 cities; through operator assisted call Centers; or through their website www.indiabulls.com; or through their respective relationship managers or through marketing Associates. These multiple channels provide flexibility to the clients and allow them to utilize their existing business Relationship with them through any channel from any part of India. Companys strategy is to provide the most convenient, efficient and value added channel to the client at the lowest possible cost, and allow the clients with choice and varied access points. Indiabulls believe that their multiple channel strategy has been particularly effective in the affluent segment where many sophisticated clients like to have a close-by office they can access and yet have the flexibility of Internet account management, transactions and electronic funds transfer and settlement. Relationship Manager driven sales model, provide high quality service and exploit cross-sell opportunities Companys clients benefit from the personal attention and advice of the trained and motivated relationship managers. All its relationship managers are qualified and educated professionals, who have been extensively trained in-house to provide the products and services to the clients. These relationship managers are encouraged to develop long-term

relationships with the clients and can access a variety of resources within the Company, such as insurance specialists, research services and others to add value to their clients. Most of the clients have dedicated relationship managers irrespective of the channel they use.

SWOT ANALYSIS OF INDIABULLS SECURITIES LTD

KEY COMPETITIVE STRENGTHS

Diverse Branch Network Since Company inception in FY 2000 Company and its subsidiaries have grown from a single location to a nationwide network spread over 135 offices in 95 cities. They have a

pan India distribution networks for the purpose of distribution of financial products and services. Such a diverse and integrated network provides a centralized platform to there clients. Bouquet of financial products and services Company and its subsidiaries offer various financial services and products ranging from equity, F & O and wholesale debt, mutual fund, insurance and IPO distribution, equity research analysis, depository services to cater to the specific needs of the retail and institutional investors thus providing all these services in a single platform. Advanced Technology team that delivers market leading product innovation There ongoing investment in technology is a key element in expanding there product and service offerings, enhancing there delivery systems, providing fast and consistent client service, reducing processing costs, and facilitating there ability to handle significant increases in client activity without a corresponding rise in risk and staff. Company and its subsidiaries have an in-house technology team of 27 people comprising of several engineers. Strong Team of Experienced Promoters Indiabulls has a strong team of promoters who are engineers from Indian Institute of Technology and have several years experience in financial services industry. They believe that their strong technical experience will help them in achieving our key business strategies.. Well capitalized player, with strong banking relationships and credit ratings Indiabulls consolidated net worth is Rs.1023.19 million making it a well capitalized company. The Company and ISL have received sanctioned facilities of Rs.1760 million from 9 leading commercial banks and financial institutions.

WEAKNESS OF INDIABULLS
It should have its own mutual funds i.e. Indiabulls as of now does not have its own mutual funds, instead of providing advises in mutual funds it should have its own mutual funds It should provide tips via SMS. Too many people try to eat the same piece of pie i.e. people employed in Indiabulls hit the same area to target their customers. There should be a separate set of staff working in fields and trading on behalf of their clients: India bulls has same set of staff who are making clients and also trading on behalf of clients this hinders the relationship manager to provide adequate and necessary tips to the clients and at times the managers are not in the position to answer the questions of their clients relating to the current market position as the are on fields. It does not display the scripts in BSE on its terminal i.e. POWER INDIABULLS. To trade in scripts in BSE the customer has to open the website www.bseindia.com. Commodities are not traded online (MCX-multi commodity exchange, NCDEXnational commodity derivative exchange of India ltd.) It does not provide with the indices of major world markets, ADR prices of Indian scripts.

OPPURTUNITIES TO INDIABULLS
The external environmental analysis may reveal certain new opportunities for profit and growth some examples of such opportunities include: An unfulfilled customer need. Arrival of new technologies

 Increasing stake of Fallacom (U.S based company) in Indiabulls. Stake of Mittal Steels in the company. Financial services like banking. Market expansion i.e. opening branches at untapped areas. Indiabulls is registered with Luxembourg stock exchange and so can target other stock exchanges. ATM facility should be provided for easy withdrawals. The Capital market in the last few years has turned out to be one of the favorable avenues for the retail investors. This is due to the performance of the Indian Industry in various sectors and the Economy in general. Even the future outlook looks promising. Scope of online trading on BSE. Indiabulls has tied up with other third party companies to sell their products. Due to the high client base of Indiabulls, there exists an opportunity to cross sell these products in the market. Market seems favorable for commodities trading. Should Indiabulls choose to enter this segment it may prove to be a profitable venture.

THREATS TO INDIABULLS
Some of the examples include: Shifts in consumer tastes away from firms products. Emergence of competitor company who charging less brokerage.

 Companies like Sharekhan, ICICI Direct, Kotak, and Private Brokers are major threats to Indiabulls. Banks with Demat facility jockeying for position Local brokers capable of charging lower brokerage. Industry competitors vying for the same target segment. Changes in SEBI guidelines & other tax implications. Government Regulations.

MAIN STOCK BROKERAGE HOUSES OF INDIA

Indiabulls Securities Ltd. Kotak Securities Ltd. Sherkhan

INDIABULLS SECURITIES LIMITED

Indiabulls Securities Ltd. a Technology Oriented Financial Services Company offering Integrated Equity analysis, Stock Trading, Derivatives trading, Depositary & Margin Trading facilities etc. backed by real time risk management systems and fast trade execution. Indiabulls also provides its clients with valuable real-time information, access to breaking news and market happenings, along with in-depth and insightful analysis. The organization has an established presence in 110 main cities through its 300 branch offices and has a base of over 2, 67,000 clients. Rank as the top retail brokers in the country with average daily trading volumes of over Rs.2500crores in the current markets and holds over Rs.150crores of assets in its own depository services. Indiabulls Offline It provides you a virtual trading screen on which you would be able to track your portfolio. For this no extra charge is levied. As they are from Indiabulls Offline you would be given a dedicated relationship manager on opening a trading a/c with them who you would be able to reach 24x7 and not only instruct them to make trades but also get specialized and customized advice and tips from them about the market, are their competitive advantage. Also if a client wishes to trade online they can download software called PIB (Power Indiabulls) to them for trading online.

Some of the unique features are Trading via branch network, telephones and Internet account. Integrated Trading and Depositary Account Technology transforming desktop into NEAT like terminal for Internet trading One Screen for both Cash and Derivatives Trading. Equity Analysis Reports on different sectors Indiabulls is India's leading retail financial services company with 300 locations spread across 110 cities.

 Over 1500 Client Relationship Managers are dedicated to serving your unique needs. Is complemented by our knowledgeable and customer focused Relationship Managers. Provides our clients with real-time service & 24x7 accesses to all information and products Indiabulls offers a full range of financial services and products ranging from Equities to Insurance to enhance your wealth and hence, achieve your financial goals Post Registration Services Get professional advice from your Dedicated Relationship Manager Obtain market information through its Research Team. Construct portfolios and get insight on risk management techniques through its analysts in a personalized manner. Get access to IPOs via the Book Building route as well as to all the fixed price issues. Deal in NSE, BSE and Commodities through one branch itself.

Advantages of trading with Indiabulls

Personal Relationship Manager Most competitive brokerage & DP charges (Delivery-0.5% and Intraday-.05%) No annual maintenance charges. Technology transforming desktop into NEAT like terminal for Internet trading. Trading via branch network, telephone and Internet account I.e. both Online & Offline.

 Real time Online fund Transfer & Exposure updating facility with HDFC Bank, Citibank & ICICI Bank. Integrated Trading and Depository Account. Margin trading of 3 times the cash deposited for delivery based trade. Margin trading of 8 times the cash deposited for intraday-based trade. Margin Trading of 2 times the approved category a based shares. Quality equity Research department, which studies the market and provides personalized information. Equity Analysis report to support your investment decisions.

KOTAK SECURITIES LIMITED

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, is the stock broking and distribution arm of the Kotak Mahindra Group. The company was set up in 1994. Kotak Securities is a corporate member of both The Bombay Stock Exchange and The National Stock Exchange of India Limited. Its operations include stock broking and distribution of various financial products - including private and secondary placement of debt and equity and mutual funds. Currently, Kotak Securities is one of the largest broking houses in India

with wide geographical reach. The company has four main areas of business: (1) Institutional Equities, (2) Retail (equities and other financial products), (3) Portfolio Management and (4) Depository Services. Institutional Business This division primarily covers secondary market broking. It caters to the needs of foreign and Indian institutional investors in Indian equities (both local shares and GDRs). The division also incorporates a comprehensive research cell with sectoral analysts who cover all the major areas of the Indian economy. Client Money Management This division provides professional portfolio management services to high net-worth individuals and corporate. Its expertise in research and stock broking gives the company the right perspective from which to provide its clients with investment advisory services. Retail distribution of financial products Kotak Securities has a comprehensive retail distribution network, comprising approximately 7000 agents, 13 branches and over 20 franchisees across India. This network is used for the distribution and placement of a range of financial products that includes company fixed deposits, mutual funds, Initial Public Offerings, secondary debt and equity and small savings schemes. Depository Services Kotak Securities is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialized shares. Since it is also in the broking business, investors who use its depository services get a dual benefit. They are able to use its brokerage services to execute transactions and its depository services to settle these.

SHAREKHAN
Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 510 offices (share shops) in 170 cities around the country. Share khan has one of the best states of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. You can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more.

Types of Accounts
ShareKhan Classic account Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, Demat and digital contracts, Real time portfolio tracking with price alerts and Instant credit & transfer. Online trading account for investing in Equities and Derivatives Free trading through Phone (Dial-n-Trade) Two dedicated numbers for placing your orders with your cell phone or landline. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers)

Simple and Secure Interactive Voice Response based system for authentication Get the trusted, professional advice of our telebrokers After hours order placement facility between 8.00 am and 9.30 am Integration of: Online trading + Bank + Demat account Instant cash transfer facility against purchase & sale of shares IPO investments Instant order and trade confirmations by e-mail Single screen interface for cash and derivative

ShareKhan Speed Trade account This accounts for active traders who trade frequently during the day's trading session. Following are few popular features of Speed Trade account. Single screen interface for cash and derivatives Real-time streaming quotes with Instant order Execution & Confirmation Hot keys similar to a traditional broker terminal Alerts and reminders Back-up facility to place trades on Direct Phone lines

Advantages of Sharekhan
Online trading is very user friendly and one doesn't need any software to access. They provide good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.

Disadvantages of Sharekhan
They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below Rs.20 (If you trade, you will loose majority of your money in brokerage). Lots of hidden rules and charges. They do not provide facility to book limit order trades during after-hours. Classic account holders cannot trade commodities. Cannot purchase mutual funds online.

COMPARATIVE STUDY OF INDIABULLS WITH OTHER BROKERAGE COMPANIES

SERVICES Account Opening Charges Brokerage (%) Exposure on Cash Exposure on Securities Annual Maintenance Charges Trading with other Demat Account Banking facility Net Banking facility Off-line Trading Relationship Manager Rs.1200 NIL 500 Sharekhan NIL Delivery 0.06 NIL NIL Intraday 0.03 4 times Kotak Rs.750 Delivery 0.06 4 times NIL Intraday 0.03 4 times Indiabulls Rs.750 Delivery 0.50 4 times Intraday 0.05 10 times

3 times of the Market Value

N.A. IDBI Bank/City Bank/ OBC/UTI/ HDFC bank IDBI , ICICI , HDFC Yes Assigned to every client

N.A. Kotak/HDFC/CITI,AXIS Kotak/HDFC/CITI,AXIS Yes Assigned to every client.

Possible All private Banks HDFC/ICICI/Citibank Through Phone & SMS & messenger Assigned to every client

Account Opening Charges

Account opening charges is the initial charges that is charged by each brokerage house for opening its Demat and trading A/C And these charges varies from one brokerage house to another. As far as opening charges are concerned:

 Kotak = Rs.750 (De-mat & Trading A/C) Sharekhan = Rs.1200 (De-mat & Trading A/C) Indiabull=Rs 750 (de mat &trading a/c)

Brokerage
Brokerage percentage is that amount charged by brokers for their intermediary services provided by brokerage house. Brokerage can be divided into: Brokerage charges on delivery Brokerage charges on intraday

Brokerage charged on delivery

Means the commission charged by brokers for forward or future trading. Future contract is legal commitment between a buyer and seller or broker in which they agree to exchange something at a specific price at the end of designated period of time. India Bulls = Brokerage charged on delivery .5% Kotak = Brokerage charges on delivery .5% Sherkhan = Brokerage charges on delivery .2%

Brokerage charged on Intra day

On intra day means the commission charged by broker for spot trading. Spot trading under which the investor buy or sell the share on the same day at the prevailing price. Where as

India Bulls brokerage charges are quite nominal, to get competitive advantage that is easily available by small investors. Indiabulls = Brokerage charged on intra day .05% Kotak = Brokerage charges on intra day .15% Sherkhan = Brokerage charges on intra day .05%

Exposure on cash
Exposure on cash means financing facility provided by some reputed brokerage houses i.e. Kotak, India Bulls. e.g. - suppose investor wants to invest Rs.1, 00,000 in cash and a brokerage house provides 3 times exposure on cash, which means an investor can invest up to Rs.3, 00,000. Cash exposure can also be divided into- Intraday & delivery. Indiabulls provides = 4 times (On Delivery) 10 times (On Intraday) Kotak provides = 4 times (On Delivery) 4 times (On Intraday) Sherkhan provides = NIL (On Delivery) 4 times (On Intraday)

Exposure on Security

Exposure on security is another persuasive facility provided by reputed brokerage houses like Indiabulls. Under this facility, suppose an investor wants to trade 100 shares & market value of which is Rs.100 each. Now trade total investment amount that he wants to invest is Rs.1, 00,000. A brokerage house provides 3 times exposure on security, now he can trade up to Rs.3, 00,000. Indiabulls provides = 2 times (on delivery) 2 times (on intraday) Kotak provides = NIL (on delivery) NIL (on intraday) Sherkhan provides = NIL (on delivery) NIL (on intraday)

Annual Maintenance Charges (AMC)

AMC are the extra charges by all brokerage houses from their customers from their services. These charges are charged on annual basis. For customers its an unnecessary burden. But India bulls safe its value customers from these extra burden. India Bulls charges = NIL Kotak charges = Rs.260 Sherkhan charges = Rs.300

Trading with other Demat A/C

It means that if investor have Demat a/c in any brokerage house, he or she can trade in securities with same Demat a/c & not required to open other Demat a/c in that brokerage house from which he recently wants to invest E.g. - Investor having its Demat a/c in ICICI & wants to invest through Indiabulls, he can trade with Indiabulls without opening of Demat a/c in India bulls, the only thing is required on the part of customer is the opening of trading a/c. This facility of other Demat is exclusively provided by Indiabulls. Indiabulls = Possible Kotak = Not Possible Sherkhan = Not Possible

Banking Facility
Mostly all brokerage houses provide this facility for their customers for clearance & settlement. Indiabulls = Through All Private Banks Kotak = Through Kotak/HDFC/CITI Bank Sherkhan = Through IDBI/ CITI/ OBC/ UTI/ HDFC Bank

Off-line Trading
Generally offline trading is not allowed by any brokerage houses exclusively Indiabulls. Because of the requirement of 24*7 basis connectivity with customers, Indiabulls provide a wide range of connectivity through phone and messenger. Also provides door to door services to its valuable customers. Indiabulls = Through Phone & messenger Kotak = Not Allowed Sherkhan = Not Allowed

Relationship Manager
Indiabulls provides a relationship manager to every client to provide him investment tips (which are provided everyday by their investment team/ expert) and follow decisions while providing them, professional investment suggestions whereas in Kotak no relationship manager facility to provided to their clients. Kotak = Not Allowed Indiabulls = Assigned to every client of Indiabulls Sherkhan = Assigned to every client of Indiabulls

DATA INTERPRETATIONS AND ANALYSIS

Age Graph:
Age group
18-25 25-45 45-65

Percentage of total traders

30% 55% 15%

% of people of different age working in share market. 15% 30% 18-25 25-45 45-65

55%

As we can see from the above graph, people who are in the age group of 25-45yrs are the maximum traders in share market. This segment is the one which gives maximum business to share brokers. This segment constitutes the young executives and other office going people. They are 55% of the total people who were interviewed. The next age group is the normal traders about 30% in the age category of 18-25yrs. They are the students and some working employees wants to be self dependent and playing for increasing their pocket money. And the rest are in old age category of 45-65yrs who are working for securing their future and wants to serve their family somewhat more according to their salary.

Data Analysis:
The next step after every data collection is obviously data analysis. No data is perfect unless it is analyzed because the overload of the information and the useless information also consist in raw data. Without analyzing the data, research can affected adversely. So, reliable result can only come after analyzing the data. Although the questionnaire is very much according to information required. But the result is better if once analyze it also.

Q.1- Do you invest through Share Markets? Ans.

People investing in share market. Yes No Percentage 60% 40%

It is revealed from the table that 60% of respondents invest through Share Market. On the other hand 40% respondents do not invest through share market and are not interested in that.

Q.2- Do you want to invest in the share market? Ans.

People want to invest in share market. Yes No Percentage 70% 30%

Most of the clients want to take benefits from investing in share market through investing in the securities provided by different companies. So it results that 70% of clients wants to invest and rest of 30% do not want to invest in share market.

Q.3- If not why? Ans.

Reasons for not investing lack of knowledge feel its risky lack of time Dont have extra money Percentage 40% 30% 20% 10%

Table explains the reasons why few investors dont want to invest in share market. 40%people dont have enough knowledge of investing in shares, 30% feel it is risky for investing in shares, 20%people have no time for investing and 10%people says they have no extra money for investing.

Q.4- Do you know about the online trading? Ans.

People having knowledge about online trading Yes No Percentage 60% 40%

The table investigates about the percentage of the respondents who are aware of the online trading facilities provided by different depository participants. It is explored through the study that 40% of the people are not aware about online trading but as we see the growing age of computers 60% people are trading through online terminals.

Q.5- From which brokerage house/ Depositary Participant you are investing in securities? Ans.
Company Name Kotak Indiabulls Percentage 15% 40%

Religare Sharekhan

15% 30%

The table investigates about the percentage of the respondents who are aware about the brokerage house. As per described in the above graph maximum 40 % of people are trading through India bulls Sec. Ltd. because of the advantage of compliance policy adopted by the company& 30% are in favor of sherkhan 15 % in religare & 15 % in favor of kotak.

Q.6- How do you invest your money? Ans.

Kind of Investments Mutual Funds I. P. O. Equity Others

Percentage 10% 35% 50% 5%

This table show that are aware of about the investment decision . they are having the knowledge of investing their money in best places10% people are invest the money in matual fund and 35% people are invest the money in ipo and 50% people are invest the money in equity and rest of these are invest the money in other.

Q.7- Do you have a Demat account? Ans.

People having Demat account. Yes No Percentage 65% 35%

As per discussed with people we come to find 65% of people are having Demat A/c & 40% are not having Demat A/c .so mostly people having the demat account and rest of these not having thew demat account.

Q.8- How much account opening charges your broker charge from its customers? Ans.
Charges 900 750 500 Nil Percentage 5% 30% 20% 45%

5% people are paying the 900 rs for account opening charges and 30% people are paying the rs 750 for account opening charges and 20% people are paying rs 500 for account opening charges and rest of these people are not paying the money for account opening .

Q.9- What percentage of brokerage your broker charges on intraday trading transactions? Ans.
Brokerage Of Intraday
0.02-0.05 0.05-0.07 0.07-0.10

Percentage
50% 30% 20%

As per graph is showing 50% of people are paying 0.02-0.05 paisa for intraday brokerage charges. And rest of the people are paying more for intraday.30% of people are paying 0.05-0.07 paisa for intraday brokerage charges.20% of people are paying 0.07-0.10 paisa for intraday brokerage charges.

Q.10-What are the annual maintenance charges you expect your broker charges from you? Ans.
Charges of A.M.C
Nil 200-300 300-500

Percentage
50% 30% 20%

As per discussed with clients we come to find 50% of clients are not paying any annual maintenance charges. But still rests are paying for maintenance as described in the above graph.20% client paying the annual maintenance charges

Q.11-Are you fully satisfied by the services rendered and charges charged by your broker? Ans.

People satisfied by their broker Yes No

Percentage 60% 40%

According to clients 60% of people are satisfied with their brokers but rest of 40% having some issues with their brokers.mostly people are satisfied with their broker .

Q.12- Which type of problems you are facing with your existing broker? Ans.
Problems Facing by clients Brokerage Servicing Recommendations Percentage 20% 30% 35%

Others

15%

As we asked from the Clients mostly clients are having recommendation problems brokers are not giving the right tips, not assisting properly and lack of proper compliance. And rest are having problems like brokerage and services.

Q.13- Would you like to have a facility to trade with other demat account? Ans.
People trading with other demat account. Yes No Percentage 30% 70%

Maximum no of clients are not interested in trading with other Demat A/c because they want to keep their money in same a/c so that they can buy more stock in same time and same a/c and also they get extra limits from the trading company.

.14- Would you like to have a facility of net banking? Ans.

People like to have a facility of net banking. Yes No Percentage 50% 50%

As we see according to people 50% people like to have a facility of net banking. And about other 50% are not aware of net banking and also dont have internet facilities.

Q.15- Would you like to have a facility of relationship manager? Ans.

People like to have a facility R.M. Yes No Percentage 80% 20%

According to the survey 80% of people like to have a facility R.M. and other are not interested because they want to trade themselves without any opinion.

Q.16- Are you satisfied with the services provided by Indiabulls? Ans.
Satisfaction level of clients Fully Satisfied Partial Satisfied Percentage 20% 30%

Dissatisfied Fully Dissatisfied

35% 15%

This figure is all about the satisfaction level of the clients towards Indiabulls Sec. Ltd., as we see 20% of the total clients are fully satisfied with services of the company, 30% are partial satisfied and rest of the clients are not satisfied due to some reasons like brokerage and other services they are not getting in time.

FINDINGS

 Indiabulls sec. ltd. Is well reputed co. in security market due to transparency in his work? It achieves its goals within a very short period of times. Indiabulls sec. ltd. Suffers from cash problem because head office is not providing them sufficient cash to run day to day operation successfully Indiabulls provides it both on line and off line services under one roof. Organization is utilizing their all resources very efficiently which leads to increase in profits Debts of co. as compared to total funds is satisfactory. Increase in net profit shows increase in efficiency of the co. Earning per share has shown good response in upcoming years.

RECOMMENDATIONS
Working of Back Office:
There should be a person solely responsible for checking the Registration Kit to ensure that it is complete in all respects and there are no rejections.

The policies related to Trading and DP should be consistent and in congruence with The time lag between giving in the kits for registration and opening the account Any change in the policies of company should be given at least one month notice

each other. should be reduced to ensure speedy and efficient service. before implementing it. After getting Leads attention should be made on following points: 1. The calls made should be more informative and assertive. 2. The RM should provide an in depth demonstration of the software and client should be assisted regularly. 3. Provision of a manual for online clients for ease of operation. 4. Time lag between the complaints put and follow up should be reduced. 5. Database should be verified properly, so that repeated entries do not occur. This will reduce inconvenience to the clients, who complained about multiple calls received. Analysis of Client Interaction (Already existing clients) Client interaction and after sales services are the most crucial aspects for any business. We carried out a study to gauge the level of satisfaction of the clients with the services of Indiabulls. This helped us in understanding why Indiabulls has become one of the most trusted brands within a span of five years. 1. The Relationship Managers(RM) should be made responsible to ensure that the clients are well catered, thus, reducing switching over of A lot of time lag is there between the follow up and the change of RM, as a result, the calls could not leave a positive impact on the clients, so contacted. Therefore, follow up should be done fast without any time lag. 2. Many clients did not know about the change of RM. This leaves a bad impression on the concerned client, damaging the reputation of the firm. So, heed is taken in this regard. 3. The customers, who were satisfied with the services, appreciated this kind of follow up. Therefore, such follow-ups are done from time to time, to gain customer confidence. 4. Many clients are not given confirmation after the trade, so they should be given due information about it.

5. Complete net knowledge should be given to clients so that they may not find any difficulty in login of their A/C on the Indiabulls website 6. routing, thereby reducing loss of business to the firm. 7. IndiaBulls by its distinctive feature can efficiently provides 100% satisfaction to its various categories of investors. IndiaBulls is the only Brokerage house that provides various privileges over Other Securities Company. On the other hand IndiaBulls provides 24*7 basis connectivity to its investors through On line &Off line facility.

CONCLUSION

IndiaBulls by its distinctive feature can efficiently provide 100% satisfaction to its various categories of investors. IndiaBulls is the only Brokerage house that provides various privileges over other brokerage houses. It is the only one who provides a satisfactory redeem to both category of investors by providing them Low brokerage charges, annual maintenance charges are NIL, low a/c opening charges, provides cash exposure facility, in order to provide financial assistance to those investors having lack o funds to invest in capital market. On the other hand IndiaBulls provides 24*7 basis connectivity to its investors through Online & Offline facility. And the most prominent privilege i.e. Relationship Manager; in order to develop confidence to those investors who are not aware to the security trading. From the above survey, comparison charts & differential study: We can conclude that the majority of prospective investors from the sample i.e. 65% want to invest in the capital market and rest does not want to invest in stock market because either they dont have sufficient knowledge about stock market or they dont have time or they feel that it is risky to invest in stock market. Apart of that Kotak and Sherkhan have a diversified business therefore their concentration level is also spread over their multi purpose business. While IndiaBulls have specialized one, so there concentration level is too high on the share market only. So we can conclude that investors should rely on the services provided by IndiaBulls in long run.

BIBLIOGRAPHY

1. LITERATURE: Kothari, C.R. 2003(Research Methodology 2nd Edition) Grun & Tull 2005 (Marketing Research 4th Edition) Phillip Kotler 2006 (Marketing Management 12th Edition)

2. MAGAZINES: Business Today Management Review Vol.14 No.4 by R.T.Gupta Business Standard Vol.16 No.8 by Standard Group of Co. India Today Vol.17 No.6 by Time Group of Co. 3. NEWSPAPERS:
ECONOMIC TIMES HINDUSTAN TIMES

4. INTERNET www.indiabulls.com www.nseindia.com www.religare.in www.sharekhan.com www.kotak.com www.sebi.gov.in www.icicidirect.com

QUESTIONNAIRE

I JAGJEET KAUR

under Roll no.429 student of MBA final year in

G.G.S.I.T.M.S.Yamunanagar, researching on my project on INDIABULLS Sec. Ltd. I sure you that the information provide by you will be kept secret. Name. Occupation . Age Income . Sex Contact No. . .

Q.1 Do you invest in the share market? 1) Yes ( ) 2) No ( ) Q.2 Do you want to invest in the share market? 1) Yes ( ) 2) No ( ) Q.3 If not why? 1) Lack of knowledge ( ) 2) Feel its risky ( ) 3) Lack of time ( ) 4) Do not have money ( ) Q.4 Do you know about the on line trading? 1) Yes ( ) 2) No ( ) Q.5 You are trading through which brokerage house? 1) Kotak ( ) 2) Indiabulls ( ) 3) Sharekhan ( ) 4) Religare ( )

Q.6 How do you invest your money? 1) Mutual funds ( ) 2) IPO ( ) 3) Equity ( ) 4) Others ( ) Q.7 Do you have demat & trading A/C? 1) Yes ( )

2) No ( ) Q.8 How much account opening charges you have paid to your broker? 1) 900 ( ) 2) 750 ( ) 3) 700 ( ) 4) 500 ( ) Q.9 How much brokerage charged by your broker on intraday trading? 1) .02 -0.5 ( ) 2) 0.5 -0.7 ( ) 3) 0.7 -.10 ( ) Q.10 What are the annual maintenance charges you expect from your broker? 1) Nil ( ) 2) 200 -300 ( ) 3) 300 -500 ( ) Q.11 Are you fully satisfied by your broker? 1) Yes ( ) 2) No ( ) Q.12 Which type of problem you are facing with your existing broker? 1) Brokerage ( ) 2) Servicing ( ) 3) Recommendation ( ) 4) Others ( ) Q.13 Would you like to have a facility to trade with other demat A/C? 1) Yes ( ) 2) No ( ) Q14 Would you like to have a facility of net banking? 1) Yes ( ) 2) No ( ) Q.15 Would you like to have a facility of relationship manager? 1) Yes ( ) 2) No ( ) Q.16 Are you satisfied with the services provided by the indiabulls? 1) Fully Satisfied ( ) 2) Partial Satisfied ( ) 3) Dissatisfied ( ) 4) Fully Dissatisfied ( )

Q.17 Any suggestion regarding INDIABULLS. . ...

NAME

CONTACT NO. .