1

AN INITIAL REPORT
ON
TO OPEN 8 DEMAT ACCOUNTS WORTH OF
RS.16000/- FOR SHAREKHAN LTD.
SUBMITTED
BY
P.RAJESH
(ENROLLMENT NO: 7NBNL022)

SUBMITTED
TO
MRS. CHETHANA G KRISHNA
(FACULTY GUIDE)

ICFAI NATIONAL COLLEGE

NELLORE
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BONAFIDE CERTIFICATE

This is to certify that the initial report of Share Khan titled ‘AN INITIAL
REPORT ON TO OPEN 8 DEMATS ACCOUNTS OF Rs. 16000/- FOR
SHAREKHAN LTD.’ is being submitted as a partial fulfilment of the requirement
of completion of SIP program at ICFAI for the academic year 2007-09 and has
duly completed as an authentic work.

Apart from a few suggestions given by us, the trainee has done the entire work on
her own. The report is up to the standard both in terms of content and the literary
presentation.

Submitted by:
P. Rajesh
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ACKNOWLEDGEMENT
“The way to learn to do things is to do things. The way to learn a trade is to
work at it. Success teaches how to succeed. Begin with the determination to
succeed and the work is half done already.”

I take this opportunity to acknowledge all the people without whose cooperation
this project would not have happened.

I expect my heartfelt gratitude to our Faculty Guide Mrs. Chetana G Krishna who
has been a great source of inspiration to all of us. At the same time, I express my
sincere gratitude to Mr. K.P. Singh, Company Guide, who has been very
supportive throughout this venture.

P. Rajesh
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CONTENTS

S.NO: INFORMATION PAGE NO:

1 INTRODUCTION TO THE STOCK 5
MARKET
2 AN OVERVIEW OF SIP COMPANY 8

3 3C REPORT

3.1 The Company

9
3.1.1. Marketing
11
3.1.2. Human resources
13
3.1.3. Operations 14
3.2 The Customers 14

3.3 The competitors

4 SWOT ANALYSIS 16

5 WHO’S WHO 16

6 BUSINESS OBJECTIVES 17

7 CONCLUSION 18
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INTRODUCTION TO THE STOCK MARKET:

Stock Market: A market where people buy and sell shares of various companies.
There are 2 major exchanges in India.
1. The BSE
2. The NSE

: BSE it is the oldest stock exchange in Asia with heritage, now

spanning 3 centuries in its 133 years of existence. What is now popularly known as
BSE was established as “the native share and stock brokers association in 1875”. It
is the first stock exchange in the country which obtained permanent recognition
(regulation) act 1956. Today BSE is the world’s no: 1 exchange in terms of the no.
of listed companies and the worlds 5th in transaction numbers.
The BSE index, sensex is India’s first stock market index that enjoys a iconic
stature, and is tracked worldwide. It is an index of 30 stocks representing 12 major
sectors. It is 1st exchange in India and the 2nd in the world to obtain an ISO-9001-
2000 certification. First exchange in India. It has nationwide reach with a presence
in more than 450 cities and towns of India. It is located in MUMBAI.

NSE: The National Stock Exchange of India Limited has genesis in

the report of the High Powered Study Group on Establishment of New Stock
Exchanges, which recommended 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. It is an index of top 50 companies.

On its recognition as a stock exchange under the Securities Contracts (Regulation)

Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt
Market (WDM) segment in June 1994. The Capital Market (Equities) segment
commenced operations in November 1994 and operations in Derivatives segment
commenced in June 2000.
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How does the Sensex Move :

The BSE Sensex is the weighted average of prices of 30 select stocks listed on
the Bombay Stock Exchange. The weights are the market caps of the individual
Stocks.

Change in the Index signifies an overall change in prices and trading levels of
these 30 stocks.

Movement of the NIFTY – 10 Years:

Nifty it is an index of top 50 companies.

The Bulls:

Investors who expect prices to rise and so buy now for resale later.

The Bears:

Investors who expect prices to fall and so sell now in order to buy later at a
lower price.

Players in the Stock Market:

Individuals Institutions

* Long-Term investors * FII

* Position traders * Indian companies

* Day traders * Mutual Funds

Broker:
To purchase any kind of share in the market an individual has to approach the
broker, for that broker charges some amount which is called as brokerage. An
individual has to open a Demat account with the broker.
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Who is a Broker?
A company or an individual who:
Is a member of the stock exchange.
Is registered with the Securities and Exchange Board of Index (SEBI).
Acts as a middle man between the buyer and seller of securities in that
Market.
A Broker charges fees for his services. This is known as brokerage.

Demat:
Short for dematerialization.
Dematerialization is the process by which your holding of physical share
certificate is converted into an electronic share.

Demat Account:
A demat account holds the records of one’s shares holding just as a bank holds
ones money in a savings account.
One has to approach a depository participant (DP), who is usually a broking
account or a bank, t o open a demat account.
Just like a bank, the DP will provide a statement of holdings.
There is no restriction on the numbers of DPs one can open accounts with.

Price Fluctuations – why do they occur :

Price Fluctuation occur due to demand and supply imbalances.
Such imbalances are caused by news related to the
Economy
Sector
Company
These imbalances make the investor reoccurs their expectations of the
company profitability and hence make then either buy/sell.
This in turn, creates the demand and supply imbalances.
Other factors: dollar, oil prices, FII inflows, annual budget.

Intraday: Buying and selling the shares today between 9.55 am to 3.30 pm
Delivery: Buy today shares and sell in the future.
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BUY TODAY AND SELL TOMORROW: Buying the shares today and selling
the shares tomorrow. It is available to some companies, i.e. company(broker) will
guarantee for the shares.

MARGIN MONEY: If the customer invests 10000/- he can buy shares up to the
ratio given by the company. (Ex: 1:4 means if customer invests 10000/- he can buy
up to 40000/- worth of shares.

1. AN OVERVIEW OF SIP COMPANY:

The SSKI (Sripal Sravanthi Kanthilal Iswarlal) Group comprises of

Institutional Broking and Corporate Finance. The Institutional
broking division caters to domestic and foreign institutional
investors, while the Corporate Finance Division focuses on niche
areas such as infrastructure, telecom and media, SSKI has been
voted as the Top Domestic Brokerage House in the research
category, by the Euro Money survey and Asia Money survey.

Through the portal Sharekhan.com, they’ve been providing

investors a powerful online trading platform, the latest news,
research and other knowledge-based tools for over 5years now.
Share khan is providing terms for fundamental and technical
research so that customer can get all the information they need
to take the right investment decisions.
With branches and outlets across the country, share khan ground
network is one of the biggest in India.

Share khan has a talent pool of experienced professionals

specially designated to guide customers when they need
assistance
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3C REPORT:

COMPANY MISSION:
To educate and empower the individual investor to make better investment
decisions through QUALITY ADVICE, INNOVATIVE PRODUCTS &
SUPERIOR ADVICE.

2.1.1. MARKETING:

PRODUCT PORTFOLIO:
1) EQUITIES
2) IPO’S( Initial Public Offer)
3) MUTUAL FUNDS
4) PORTFOLIO MANAGEMENT SERVICES.
5) COMMODITIES

DISTRIBUTION NETWORK:
Share Khan ltd. Covers 640 share shops in 280 cities across INDIA and having its
Head Office in MUMBAI. Recently it opened its branch in DUBAI.

SALESFORCE:
1) Fixing the targets based on potential customers.
2) Recruiting and selecting sales people based on experience.
3) Giving training to the executives for understanding the market.
4) After training evaluating the individuals.
5) Motivating the sales persons.

TARGETS:
Territory manager: 500 accounts
Assistant Manager: 100 accounts
Executives : 27 accounts
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PRICING:
It is based up on the customer business. Large investors get huge benefits from the
company.

Products AOC Margin Advance Intraday Delivery

cheque brokerage
Classic account 750 5000 0 0.10 0.50
Classic prepaid 0 0 2000 0.07 0.40
Trade tiger 0 0 6000 0.05 0.25
prepaid
Trade tiger 0 0 18000 0.04 0.20
prepaid
Trade tiger 0 0 30000 0.03 0.18
prepaid
Trade tiger 0 0 60000 0.02 0.15
prepaid
Trade tiger 0 0 100000 0.01 0.10
prepaid

PROMOTION STRATEGIES:

1) Company follows competitive parity method.

2) It also uses inoculative advertising.
3) It also participates in trade shows to create awareness about its products.
4) It mainly concentrates on franchising.
5) Direct marketing, telemarketing, publicity etc.
6) It has started newly giving advertisements in the news papers.

CUSTOMERCARE:

It offers 24*7 customer care service through the toll free no-1800227500. To help
customers at any time it has a separate back office.
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MARKET SHARE:

Share Khan occupies 25% of Market Share according to the news paper Business
line. Its turnover is about 150 crores per month.

MARKET STRUCTURE:

It is overall covered by its Sales executives and trainees throughout the market.

COMPETITION:

It faces a lot of competition from different companies like INDIA BULLS, ICICI
DIRECT, RELIGARE , INDIA INFOLINE etc.

2.1.2. HUMAN RESOURCES:

ORGANIZATION STRUCTURE
CEO
^
DIRECTOR
^
VICEPRESIDENT
^
NATIONAL HEAD
^
ZONAL HEAD
^
REGIONAL SALES MANAGER
^
TERRITORY MANAGER
^
ASSISTANT MANAGER
^
TRAINEES
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ORGANIZATION CHART:

REGIONAL SALES MANAGER

SALES MANAGER

TERRITORY MANAGER

ASST.SALES MANAGER

SALES EXECUTIVES

TRAINEES

DEPARTMENTS AND FUNCTIONS:

Sales departments: customers are generated in this department.

Branch Office: company’s revenue is generated in this department.

STAFF AND STRENGTH:

Nearly 3000 employees are working for the company.

RECRUITMENT:

1. through internal resources

2. through external resources

SENIOR MANAGEMENT:

The entire network is done by the senior management located at Mumbai.

TRAINING AND DEVELOPMENT:

Every week the sales team has to attend the training program to update their
knowledge, selling skills.
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3.1.3. OPERATIONS:

Functions: Share khan provides the following to its customers.

1. Online trading

2. Off line trading

3. Dial n trade

Facilities: it provides service through:

1. Regional sales manager

2. Back office people

3. Executive services

3.1.4. FINANCE:

1. Daily 500 demat accounts are opened on an average across India.

2. Every day 3500 funds pay in/payouts on an average.

3. 230000 transactions per day.

3.2 THE CUSTOMERS:

1) Corporate people
2) Business people
3) Housewives
4) NRI’S
5) Government Employees
OF all the companies in the broking Share khan has a good image in case of
customer service, Recruitment of employees, Rules & Regulations and Ethical
values.
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3.3. THE COMPETITORS:

OVERVIEW OF SHAREKHAN AND its MAIN COMPETITORS:

Name of the A/C Intrada Deliver Types BT & ST Margi Margin

company openin y y of Available or n money
g Charge Charge accoun not money for
charge s s ts for Deliver
s Intrada y
y
SHARE 0/- 0.07 0.50 7 Available 1:4 1:4
KHAN

RELIGARE P.M. 0.0.3 0.30 1 NOT 1:4 1:1

LTD. 30/- AVAILBA
LE
KOTAK 750/- 0.03 0.25 3 AVAILAB 1:10 1:4
SECURITI LE
ES
INDIA 5555/- 0.05 0.50 1 NOT 1:5 1:0.50
INFOLINE AVAILAB
LE
INDIA 900/- 0.03 0.30 1 NOT 1:8 1:1
BULLS AVAILAB
LE

NAME OF THE COMPANY PERCENTAGE OF CUSTOMERS

SHARE KHAN 40%
INDIA BULLS 15%
KOTAK SECURITIES 15%
RELIGARE SECURITIES 20%
INDIA INFOLINE 5%
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OTHERS 5%
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SWOT ANALYSIS:

STRENGTHS: WEAKNESS:
1) Excellent research team for
giving the recommendations. 1) Lots of rules and regulations to
2) Good customer service. be followed.
3) Having number of branches in 2) Compared to other competitors
INDIA. Share khan is giving less
4) Customer retention is more margin for Intraday.
compared to other 3) Collecting advance brokerage
competitors. charges from the clients.
5) Highly sophisticated
Infrastructure.
6) Experienced sales people.

OPPORTUNITIES: THREATS:

1) Attracting the clients who are 1) Numbers of competitors are

ready to invest in stock market. entering into the market.
2) Giving seminars for attracting 2) Low charges by other
more number of clients. competitors leads to trouble
3) It is going to raise funds from Share khan.
the public through I.P.O. 3) Availability of Mutual Funds
(Initial Public Offer) and Insurance policies.

4. WHO’S WHO?

C.E.O: Mr. TARUN SHAH.

MANAGING DIRECTOR: Mr. MANI SHANKER.

FACULTY GUIDE: Mr. K.P. SINGH.

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5. BUSINESS OBJECTIVES:

The specific goals for Executive Training:

Selling 8 demat accounts for 1 month worth of 16000/-.

Targets for the SIP period:

Selling 32 demat accounts for 4 months worth of 64000/-.

My Approach:
Generated data from my brother and I achieved the month , March target.
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CONCLUSION

Share khan is a 83 years old company established in 1935 and having a good
brand image in the stock market. It is providing an excellent service for it
customers. It has a good sales team to market their product. When compared to
other competitors it is generating revenue of 150 crores per month.
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THANK Q
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