Description
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GAUAHATI UNIVERSITY
A Training Report submitted in partial fulfillment of the requirements for the award of
the Degree of Master of Business Administration (Industry Integrated), auhati
!ni"ersity on
COMPETITIVE ANALYSIS, PROMOTION & FUTURE
OF ONLINE TRADING
#$R
Bonanza Portfolo Lt!
!nder $rgani%ation uidan&e of' !nder Institution uidan&e $f'
Mr( aura" )ingh *rof( )( Moo+her,ee
Relationship Manager Dire&tor
Bonan%a *ortfolio -td( .IM)(
*repared And )ubmitted By'
Ashish upta
.ari+ishan Institute of Management )tudies
(!( Registration /o( """"# $f 012130120
CERTIFICATE
This is to &ertify that Ashish upta, a student of the auhati uni"ersity has prepared
his Training report entitled 45$M*6TITI76 A/A-8)I), *R$M$TI$/ 9
#!T!R6 $# $/-I/6 TRADI/: under my guidan&e( .e has fulfilled all
requirements under the regulations of the MBA (II*) and BBA (II*) auhati
!ni"ersity, leading to the BBA (II*) degree( This wor+ is the result or his own
in"estigation and the pro,e&t; neither as a whole nor any part of it was submitted to
any other !ni"ersity or 6du&ational Institution for any resear&h or diploma(
I wish him all su&&ess in life(
Prof# S# Moo$%&r'&&
Dr&(tor
HIMS, D&l%
STUDENTS DECLARATION
I hereby de&lare that the Training Report &ondu&ted at
B$/A/e@&hanges in Ahmedabad (2KL?), 5al&utta (2L1K), and
Madras (2LAD)( In addition, a large number of ephemeral e@&hanges emerged mainly
in buoyant periods to re&ede into obli"ion during depressing times subsequently(
)to&+ e@&hange means any body of indi"iduals, whether in&orporated or not,
&onstituted for the purpose of regulating or &ontrolling the business of buying, selling
or dealing in se&urities( These se&urities in&lude'
(i) )hares, s&rip, sto&+s, bonds, debentures sto&+ or other mar+etable se&urities of a
li+e nature in or of any in&orporated &ompany or other body &orporate;
(ii) o"ernment se&urities; and
(iii) Rights or interest in se&urities(
The Bombay )to&+ 6@&hange (B)6) and the /ational )to&+ 6@&hange of India -td
(/)6) are the two primary e@&hanges in India( In addition, there are 00 Regional
)to&+ 6@&hanges( .owe"er, the B)6 and /)6 ha"e established themsel"es as the two
leading e@&hanges and a&&ount for about K1 per &ent of the equity "olume traded in
India( The /)6 and B)6 are equal in si%e in terms of daily traded "olume( The
a"erage daily turno"er at the e@&hanges has in&reased from Rs KB2 &rore in 2LLD3LK
to Rs 2,0K? &rore in 2LLK3LL and further to Rs 0,0DA &rore in 2LLL30111 (April 3
August 2LLL)( /)6 has around 2B11 shares listed with a total mar+et &apitali%ation of
around Rs L, 02,B11 &rore(
The B)6 has o"er C111 sto&+s listed and has a mar+et &apitali%ation of around Rs L,
CK,111 &rore( Most +ey sto&+s are traded on both the e@&hanges and hen&e the
in"estor &ould buy them on either e@&hange( Both e@&hanges ha"e a different
settlement &y&le, whi&h allows in"estors to shift their positions on the bourses( The
primary inde@ of B)6 is B)6 )ense@ &omprising A1 sto&+s( /)6 has the )9* /)6 B1
Inde@ (/ifty) whi&h &onsists of fifty sto&+s( The B)6 )ense@ is the older and more
widely followed inde@(
The +ey regulator go"erning )to&+ 6@&hanges, Bro+ers, Depositories, Depository
parti&ipants, Mutual #unds, #IIs and other parti&ipants in Indian se&ondary and
primary mar+et is the )e&urities and 6@&hange Board of India ()6BI) -td(
Mar+et Basi&s
G 6le&troni& trading
G 6@&hanges in India
G Inde@
G 6@e&ute an order
G /eed a bro+er
G 5ontra&t note
G )plit
G Buy Ba&+
G )ettlement &y&le
G Rolling settlement
G )hort selling
G Au&tion
G )eparate mar+et for au&tions
G If the shares are not bought in the au&tion
G Bad Deli"ery
)to&+ 9 6@&hange Board of India
R6!-ATI$/ $# B!)I/6)) I/ T.6 )T$5F 6M5.A/6)
!nder the )6BI A&t, 2LL0, the )6BI has been empowered to &ondu&t inspe&tion of
sto&+ e@&hanges( The )6BI has been inspe&ting the sto&+ e@&hanges on&e e"ery year
sin&e 2LLB3LC( During these inspe&tions, a re"iew of the mar+et operations,
organi%ational stru&ture and administrati"e &ontrol of the e@&hange is made to
as&ertain whether'
G the e@&hange pro"ides a fair, equitable and growing mar+et to in"estors(
G the e@&hangeJs organi%ation, systems and pra&ti&es are in a&&ordan&e with the
)e&urities 5ontra&ts (Regulation) A&t ()5(R) A&t), 2LBC and rules framed there
under'3
G the e@&hange has implemented the dire&tions, guidelines and instru&tions
issued by the )6BI from time to time(
Importan&e of sto&+ Mar+ets'3
G A&&elerate 6&onomi& rowth(
G )our&es for 5ompanies to raise Money(
G In"estors(
G Bro+ers(
G Te&hnologi&al De"elopment(
B(R$=T. A/D *R6)6/T )TAT!) $# T.6 I/DIA/ )T$5F MAR6FT
The finan&ial ser"i&es se&tor &ontributed 2B per &ent to IndiaJs D* in #81L, and is
the se&ond3largest &omponent after trade, hotels, transport and &ommuni&ation all
&ombined together, as per the Ban+ing 9 #inan&e Nournal, released by an industry
body in August 0121(
#inan&ial ser"i&es, ban+ing, insuran&e and real estate se&tors rose by K per &ent during
the quarter ended mar&h 0122(
There are a total of 2,DA0 foreign funds registered with the )e&urities 9 6@&hange
Board of India ()6BI)(
$"erseas funds infused !)O ?(DK billion in the &apital mar+et in /o"ember 0121,
ta+ing the year3to3date total to !)O AL billion( The total inflows of foreign
institutional in"estors (#IIs) as on De&ember 0, 0121 ha"e &rossed the re&ord !)O
AK(DC billion mar+(
A&&ording to data a"ailable with )6BI, #IIs ha"e made in"estments worth !)O ?(22
billion in equities and in"ested !)O CCD(D2 million into the debt mar+et(
As on /o"ember 0C, 0121, IndiaJs foreign e@&hange reser"es totalled !)O 0LA(L
billion, a&&ording to the Reser"e Ban+ of IndiaJs (RBI) =ee+ly )tatisti&al
)upplement(
A&&ording to 7enture Intelligen&e, a resear&h firm, pri"ate equity in"estment in India
totalled !)O C(BD billion in the first three quarters of 0121, whi&h is more than double
the !)O 0(B billion in"ested during the same period last year(
As of De&ember D, 0121, as many as 22? pri"ate equity in"estments ha"e &ome from
domesti& funds &ompared to 20C foreign ones, a&&ording to data a"ailable with
7enture Intelligen&e( In terms of "alue, *6 firms promoted by Indians in"ested !)O
2,DB2 million so far this year, as against !)O ?,ADD million put in by foreign fund
in"estments, a&&ording to 7enture Intelligen&e(
The study said the main mar+et for *# in 011L was the domesti& Indian mar+et, whi&h
raised !)O A1 billion, a&&ounting for 02(B per &ent of the global *# mar+et( This was
up from !)O 2L billion in 011K(
$"er the re&ent years, there has been a &onsiderable growth in Indian mar+et
whi&h has led to high ross Domesti& *rodu&t (D*) with an a"erage annual growth
of around C to DP( In the finan&ial year 011K31L, the fa&tor &ost of the D* was
around C(D P( To +eep up this fa"orable growth, the go"ernment is also ta+ing steps(
The present Indian *rime Minister, Dr Manmohan )ingh, has stressed that the
go"ernment is ta+ing "arious steps to ma+e the yearly e&onomi& growth go up to L P(
In fa&t, the =orld Ban+ too has pro,e&ted that the mar+et growth rate of India will
rea&h around K P in the year 0121(
)to&+ mar+ets
Mar+et &apitali%ation of India as a proportion of world mar+et &ap has risen to a
re&ord high( A&&ording to data sour&ed from Bloomberg, the &ountryJs mar+et
&apitali%ation as a proportion of the world mar+et &ap is &urrently A(A? per &ent(
IndiaJs &urrent mar+et3&ap is !)O 2(BB trillion as &ompared with world mar+et3&ap of
!)O ?C(B trillion( This is higher than A(20 per &ent share India en,oyed at the mar+et
pea+ of Nanuary 011K(
Twenty Indian &ompanies raised a signifi&ant !)O 2(0 billion through initial share
sale offers in the first three months of 0121, a period when global I*$s were worth
o"er !)O BA billion, a&&ording to a report by global &onsultan&y firm 6rnst 9 8oung(
=ith 01 I*$s in the first quarter of the year, India had the third largest number of
I*$s a&ross the globe(
$"erall, the primary mar+et has witnessed robust inflows from #IIs this year and
&ornered around 0D per &ent of equity mar+et inflows( $f the total #II in"estment of
!)O 0K(? billion, about !)O D(D billion ha"e &ome into the primary mar+ets,
a&&ording to )6BI data(
#und raising by way of initial publi& offerings (I*$s), follow3on publi& offerings
(#*$s) and qualified institutional pla&ements (II*s) ha"e totalled a re&ord !)O 2L(?L
billion as of /o"ember 2D, 0121, as per data from )M5 lobal )e&urities, beating the
pre"ious high of !)O 2?(B2 billion in &alendar year 011D(
5( #!T!R6 $# T.6 I/DIA/ )T$5F MARF6T
/ow people are busy sear&hing about 0122 Indian )to&+ Mar+et $utloo+,
)ense@ and /ifty *redi&tion for 0122, 6&onomi& $utloo+ for 0122, Best )e&tors for
0122, et&(
*redi&tions for 0120 ' India will lead with LP D* growth(
G )to&+ mar+ets in India is li+ely to stabili%e and will remain at &urrent le"el for
the ne@t 0 3 A months( Before end of 0122 mar+ets are li+ely to rea&h new highs( B)6
Inde@ will rea&h around 00111 before end of 0122(
G This year India has re&ei"ed good monsoons whi&h will help India to a&hie"e
L P D* growth this year(
G #IIs are bullish on Indian and 5hinese e&onomy( They &onsider India as one of
the most fa"orite destinations(
G In near future mar+et may remain flat or may &orre&t by around K11 3 2111
points (on )ense@)(
G )mall in"estors should hold in"estments at &urrent le"el(
G 5urrently, the &apital mar+et in witnessing "olatility and pro&ess are edging
down on a&&ount of fears of impending interest rates hi+es due to global &ommodity
supply sho&+ indu&ed spiraling inflation and this might ha"e a negati"e impa&t on
sto&+ pri&es as high input &osts would erode &orporate profit margins( .owe"er,
further de&lines would impro"e "aluations and ma+e equity buying attra&ti"e
G Infrastru&ture and &ement, engineering and metal sto&+s are li+ely to remain
#IIJs and DIIJs hot fa"orites(
G #alling pri&es may not be good for traders, but in sto&+ mar+et oneJs loss is
somebody elseJs profit( #allen down pri&es opens up opportunity for In"estors to loo+
out for the good, top and best se&tors to In"est in 012230120 whi&h &omplements the
growing Indian 6&onomy(
Q
CHAPTER /
PROFILE OF THE ORGANISATION
/#. ORIGIN OF THE ORGANI0ATION
Bonan%a is established in the year 2LL?, Bonan%a de"eloped into one of the largest
finan&ial ser"i&es and bro+ing house in India within a short span of time( Today,
Bonan%a is the fastest growing finan&ial ser"i&e with B mega group &ompanies under
it( =ith diligent effort, a&+nowledged industry leadership and e@perien&e, Bonan%a
has spread its trustworthy tenta&les all o"er the &ountry with pan3India presen&e
a&ross more than 2C22 outlets spread a&ross BB1 &ities(
=ith a "ariety of ser"i&es a&ross all "erti&als in finan&e, Bonan%as offers you the
perfe&t blend of finan&ial ser"i&es right from 6quity Bro+ing, Ad"isory )er"i&es that
&o"er *ortfolio Management )er"i&es, Mutual #und In"estments, Insuran&e to
e@&eptional Depository )er"i&es(
Bonan%a belie"es in being te&hnologi&ally ad"an&ed so that we &an offer you 3 our
te&h3sa""y &ustomers 3 an integrated and inno"ati"e platform to trade online as well
as offline( Besides, we also ha"e one of the finest and most dedi&ated resear&h teams
with e@perts who ha"e in3depth, unsurpassed +nowledge of the mar+et pla&e( All this
and more ma+es Bonan%a the perfe&t pla&e for you to ta+e your first step in the
dire&tion of finan&ial su&&ess(
Bonan%a is affiliated with the best in the industry 3 right from the /)6, B)6 M5M,
M5M3)M to 5D)-, /)D-, et&( These affiliations pro"e our worth in the mar+et and
ma+e Bonan%a a name to re&+on with(
0(0 R$=T. A/D D676-$*M6/T $# T.6 $RA/I
H Define the information needed'3 This first step states that what is the
information that is a&tually required( Information in this &ase we require is that what
is the approa&h of in"estors while in"esting their money in mutual funds and ulips e(g(
what do they &onsider while de&iding as to in"est in the share mar+et(( Also, it studies
the e@tent to whi&h the in"estors are aware of the "arious &osts that one bears while
ma+ing any in"estment( )o, the information sought and information generated is only
possible after defining the information needed(
H Design the resear&h'3 A resear&h design is a framewor+ or blueprint for
&ondu&ting the resear&h pro,e&t( It details the pro&edures ne&essary for obtaining the
information needed to sol"e resear&h problems( In this pro,e&t, the resear&h design is
e@plorati"e in nature(
H )pe&ify the s&aling pro&edures'3 )&aling in"ol"es &reating a &ontinuum on
whi&h measured ob,e&ts are lo&ated( Both nominal and inter"al s&ales ha"e been used
for this purpose(
H 5onstru&t and pretest a questionnaire'3 A questionnaire is a formali%ed set of
questions for obtaining information from respondents( =here as pretesting refers to
the testing of the questionnaire on a small sample of respondents in order to identify
and eliminate potential problems(
*opulation
All the &lients of Bonan%a and the regular employees and also the person in the
"arious mar+et from where I ha"e &olle&ted the data, who are in"esting money in
)hare mar+et(
H )ample !nit'
In"estors and non3in"estors(
H )ample )i%e'
This study in"ol"es 21? respondents(
H )ampling Te&hnique'
The sample si%e has been ta+en by non3random &on"enien&e sampling te&hnique(
H Data 5olle&tion'
Data has been &olle&ted both from primary as well as se&ondary sour&es as des&ribed
below'
H *rimary sour&es
*rimary data was obtained through questionnaires filled by people through dire&t
&ommuni&ation with respondents in the form of Inter"iew(
H )e&ondary sour&es
The se&ondary sour&es of data were ta+en from the "arious websites , boo+s,
,ournals reports, arti&les et&( This mainly pro"ided information about the mutual fund
and ulips industry in India(
LIMITATIONS>
/o study is free from limitations( The limitations of this study &an be'
H )ample si%e ta+en is small and may not be suffi&ient to predi&t the results with
211P a&&ura&y(
H The result is based on primary and se&ondary data that has itJs own limitations(
H The study only &o"ers the area of 5handigarh that may not be appli&able to
other areas(
RESEARCH METHODOLOGY
Resear&h Methodology is the way to systemati&ally sol"e the Resear&h *roblem is
done s&ientifi&ally( In it we study the "arious steps that are generally adopted by
resear&her in studying his logi& behind them( It was quite hard to &olle&t primary data
by meeting ea&h indi"idual and inter"iew him>her so I ha"e &olle&ted primary data
with the help of questionnaire( )e&ondary data was also a"ailable to get information
about the study( All the e@e&uti"es and offi&ial person were quite helpful and pro"ided
full support(
Data was &olle&ted in the following manner'
H Intera&ting with some of the &ustomers of Bonan%a
H By questionnaire see+ing information
H Intera&ting with the employees of Bonan%a
*rimary Data
H Iuestionnaire see+ing information
H Intera&tion with the employees of )hare+han and with the &ustomer of
)hare+han
)e&ondary Data
There are following things that ha"e been the sour&e of se&ondary data'
H Nournal
H Maga%ines
H Manual of Bonan%a
H =el&ome +it of Bonan%a
)AM*-I/ *-A/
Methodology for Mar+et Resear&h
I di"ided the entire &ity into %ones and drew out samples out of ea&h %one( The si%e of
samples drawn from ea&h %one depended on the prospe&ti"e ness of the parti&ular
area( #or e(g(, if a parti&ular resear&h area &onsisted of $ffi&es then the sample si%e
would ob"iously be higher than an area li+e )hopping mall or *7R( This is be&ause
$ffi&e employees &onstitute the ser"i&e se&tors that are the a&ti"e in"estors of today(
Also, the offi&e areas &onsist of people from the business &lass who ha"e always been
in the hunt for qui&+ money, not to forget that smart and timely in"estment in the
share mar+et &an yield to enormous returns(
After di"iding the &ity into %ones, the Target audien&e was probed using Inter"iews
and questionnaires( These were later analy%ed to draw out &on&lusi"e results(
The Resear&h Area 5omprised of the following pla&es'
./IJs
H *RI5I/ #$R R6TAI- 5-I6/T)
In"estor Terminal
H A&&ount $pening ' Rs B11
H Demat 2st 8r ' Rs 0B1
H Initial Margin ' Rs 0B11(5ompulsory)
H Min Margin Retainable ' Rs 2111
oBro+erage '
3Trading 1(1BP ea&h side S )T
3Deli"ery 1(B1P ea&h side S )T
*RI5I/ #$R ./I 5-I6/T)
Trader Terminal
H A&&ount $pening ' Rs B11
H Demat 2st 8r ' Rs 0B1
H Initial Margin ' Rs B111(5ompulsory)
H Min Margin Retainable ' Rs 2111
oBro+erage '
Trading 1(1BP ea&h side S )T
Deli"ery 1(B1P ea&h side S )T
(/egotiable to 1(1BP ea&h side 9 1(0BP)
oA&&ount A&&ess 5harges
Monthly Rs K11, ad,ustable against Bro+erage
8early Rs K111, ad,ustable against bro+erage
Deal 5lin&hers ">s B *aisa
o5ompany Ba&+ground
/ot ha"ing a "ery positi"e image, relati"ely new in the bro+ing arena, limited
networ+
oDowntime
Re&ent past B paisa Trader Terminal (T(T) is e@perien&ing high frequen&y downtime
between A 3 A'A1 p(m due to ser"er load ( as their T(T is feature hea"y &ompared to
)peetrade &harting)
oManual A&&ounting
The B paisa a&&ounting system is manual; online fund transfer through ban+ is not
&redited instantly(
-imit is pro"ided 6$D for shares sold from D*, or &all
)imilarly limit released for shares sold under BT)T is manual
Delay in re&ei"ing pay3out of &lear funds from trading to Ban+ A&&ount
$ Min A&&ount Balan&e
5on&ept of Min Rs 2,111 to be maintained in form of &ash > se&urities to +eep a&&ount
a&ti"e( This &an be withdrawn only on &losure of a&&ount(
0( F$TAF )65!RITI6)
5ompany Ba&+ground'
Fota+ )e&urities is the sister &on&ern of Fota+ Mahindra ban+( Fota+ )e&urities
limited is a ,oint "enture between Fota+ Mahindra Ban+ and oldman )a&hs(
$nline A&&ount Types
H Fota+ ateway A&&ount '
F6AT des+top "ersion, )ms &harge Rs 211,
F6AT premium at R) B11 pm, Min margin Rs 01111
H Fota+ 7alue A&&ount '
F6AT des+top "ersion, )ms &harge Rs DB, F6AT premium at Rs B11 pm,
*RI5I/ $# F$TAF
H A&&ount $pening ' Rs BB1 with +ota+ sa"ings a&&ount, Rs DB1 with
margin of Rs B1111, otherwise Rs 2011(
H Demat ' Rs A1 pm
H Min Margin Retainable ' Rs 2111
H Bro+erage )lab =ise ' .igher the "olume, lower the bro+erage( 6"en older
&ustomers (on 1(0BP 9 1(?1P) ha"e been mo"ed to
the slab wise stru&ture wef 2>?>011?(
)lab )tru&ture of Fota+
Deli"ery "olume pm Bro+erage
H T 2 la+h 1(BLP ateway A&&
H 2 la+h 3 B la+hs 1(BBP ateway A&&
H B la+hs 3 21 la+hs 1(?BP ateway A&&
H 21 la+hs 3 01 la+hs 1(ACP 7alue A&&(
H 01 la+hs 3 C1 la+hs 1(0DP 7alue A&&(
H C1 la+h 3 0 5r 1(0AP 7alue A&&(
H U 0 5r 1(2KP *ri"ilege 5ir&le
Deli"ery "olume pm Bro+erage )quare off
H T0B la+hs 1(1CP both sides ateway a&&
H 0B la+hs 3 0 5r 1(1BP both sides 7alue a&&(
H 0 5r 3 B 5r 1(1?P both sides 7alue a&&(
H U B 5r 1(1AP both sides *ri"ilege a&&(
Deri"ati"e Bro+erage )lab
Deli"ery "olume pm Daily )q( up )ettlement
H 0 5r 1(1DP both sides 1(1LP both sides
H 0 3 B(B 5r 1(1?BP both sides 1(1DAP both sides
H B(B 5r 3 21 5r 1(1ACP both sides 1(1?CP both sides
H 21 5r 3 0B 5r 1(10DP both sides 1(1?CP both sides
H U 0B 5r 1(10AP both sides 1(1A0P both sides
Deal 5lin&hers ">s Fota+street
oRigid A&&ount $pening Terms
/o #le@ibility of A>& opening &harges (Rs BB1) S 5ompulsory margin RsB111>3
o/o 5ustomisation of &ommer&ial Terms
/o #le@ibility in -e"erage 3 Dependent on Type of A&&ount ( ? to C times only)
/o fle@ibility in Bro+erage, dri"en by slab stru&ture
oMany $ther 5harges
Rs A1 p(m towards D* AM5 &harges
D* in&oming &harges e@tra, 1(10P
Rs 2,111 as retainable Margin to +eep a&&ount a&ti"e
Rs 0B per &all after 01 &alls for the month
oRestri&ted A&&ess to Terminal -i+e produ&t
F6AT Des+top restri&ted distribution on payment of Rs B11, /on refundable
A( I/DIAB!--)
5ompany Ba&+ground
IndiaBulls is a retail finan&ial ser"i&es &ompany present in D1 lo&ations &o"ering C0
&ities( It offers a full range of finan&ial ser"i&es and *rodu&ts ranging from 6quities to
Insuran&e( ?B1 S Relationship Managers who a&t as personal finan&ial ad"isor
$nline A&&ount Type
)ignature A&&ount '
*lain 7anilla A&&ount with fo&us on 6quity Analysis( The equity analysis is a paid
ser"i&e e"en for A>& holders(
*ower Indiabulls'
A&&ount with sophisti&ated trading tools, low &ommissions and priority a&&ess to R(M
*ri&ing of IB A&&ounts
)ignature A&&ount
o A&&ount $pening ' Rs 0B1
o Demat ' Rs 011 if *$A is signed, /o AM5 for this D*
o Initial Margin ' /I-
o Bro+erage ' /egotiable
*ower IndiaBulls
o A&&ount $pening ' Rs DB1
o Demat ' Rs 011 if *$A is signed, /o AM5 for this D*
o Initial Margin ' /I-
o Bro+erage ' /egotiable
*AID Resear&h
)5.6M6 #A5I-IT8
H =ebBased323Month3B11 ' 7iew 9 *rint on website
H =ebBased3238ear3C111 ' 7iew 9 *rint on website
H *rintReport323Month3DB1 ' 7iew 9 *rint on website S 21 Reports
Deli"ered
H *rintReport3238ear3L111 ' 7iew 9 *rint on website S 21 Reports
Deli"ered
Deal 5lin&hers ">s IndiaBulls
o*$A for 5lients DMAT' All shares held by &lient trading with IB are mo"ed to IB
*ool A&&ount and the same is shown as a refle&tion in &lient D* a&&ount( 5harges are
le"ied to mo"e shares from IB pool A&&ount to &lient D* a&&ount
o*aid Resear&h )er"i&es
A&&ess to an resear&h e"en for an IB trading a&&ount holder is &harged a min of Rs
B11 a month
oMargin #unding hoa@
The interest on funding starts on le"eraged deli"ery trades from TS2 day itself V02P
p(a, on a daily basis
oThe role of Relationship Manager
6a&h RM is loo+ed upon as a re"enue generator and he gets a P on business
generated from &lient( This &an lead to o"er le"eraged (Interest) 9 high frequen&y
(Bro+erage) trading, whi&h may not be in the best interest of the &lient(
?( I5I5I Dire&t
5ompany Ba&+ground
I5I5I =eb Trade -imited (I=T-) maintains I5I5Idire&t(&om( I=T- is an Affiliate of
I5I5I Ban+ -imited and the =ebsite is owned by I5I5I Ban+ -imited(
A&&ount Types
oI5I5I Dire&t e3in"est A&&ount '
*lain 7anilla A&&ount with fo&us on A in 2 ad"antages( Differentiated in ser"i&es
within the a&&ount
2(5ash on spot
0(Margin *lus
*remium Trading interfa&e of I5I5IDire&t -in+ is gi"en to DB5 partners and ./IJs
oA&&ount $pening ' Rs DB1
o)&hemes '
#or short periods Rs DB1 is refundable against bro+erage generated in a qtr( These
s&hemes are introdu&ed A3? times a year(
oDemat'
/I-, 2st year &harges in&luded in A&&ount $pening *lus a fa&ility to open additional ?
D*Js without 2st yr AM5
oInitial Margin ' /il
oBro+erage All bro+erage is in&lusi"e of stamp duty and e@&lusi"e of other ta@es(
Deli"ery 7ol per qtr Bro+erage R )quare 7ol off p m Bro+erage RR
H T 21 la+hs ' 1(DBP
H 21 la+hs 3 0B la+hs ' 1(D1P
H 0B la+hs 3B1 la+hs ' 1(BBP
H B1 la+hs 3 2 5r ' 1(?BP
H 2 5r 3 0 5r ' 1(ABP
H 0 5r 3 B 5r ' 1(A1P
H U B 5r ' 1(0BP
Deal 5lin&hers ">s I5I5IDire&t
o*oor online Interfa&e
)low website interfa&e with no real3time quotes &reates a dissatisfa&tion among high
frequen&y traders
oMargin trading restri&tion
The margin trading system is a"ailable up to 0'?B p(m, with outstanding net positions
under margin segment automati&ally squared off at any time between 0'?B 3 A'A1 p(m(
Thus no &ontrol of square off pri&e(
oMorning Trades Issue
Being one of the websites with largest no of after hour orders whi&h are pushed 2st
thing in the morning, &reates a &ho+ing of orders to the e@&hange, &auses delay of
&onfirmations for new order pla&ed during the early morning trades
oRestri&tion of BT)T
The sale of shares pur&hased is restri&ted to TS2 day and is not permitted on TS0 Day(
o/o le"erage for Deli"ery trades
Deli"ery is restri&ted to the total money allo&ated into the trading a&&ount(
o/o fle@ibility on le"erage on Intra3day trades
The le"erage of ? times is a"ailable for intra3 day trades(
B( .D#5 )65!RITI6)
5ompany Ba&+ground
The .D#5 BA/F, .D#5 and 5hase5apital 5apital *artners and their asso&iates
promote .D#5 )65!RITI6) -TD( *ioneers in setting up Dial3a3share ser"i&es with
the largest team of Tele3bro+ers
$nline A&&ount Type'
.D#5 $nline Trading A>& ' *lain 7anilla A&&ount with fo&us on A in 2 ad"antage
*ri&ing of .D#5 A&&ount
H A&&ount $pening ' Rs DB1
H Demat ' /I-, 2st year &harges in&luded in A&&ount $pening
H Initial Margin ' Rs B111>3 for non .D#5 Ban+ &ustomers (AIB)
oBro+erage'
Trading 1(1BPR ea&h side S )T
Deli"ery 1(B1PRR ea&h side S )T
R Rs 0B Min Bro+erage per transa&tion
RR Rs K Min Bro+erage per transa&tion
#I/DI/)
H *eople with an eye for in"estment prefer to in"est in shares(
H This is mainly due to the fa&t that shares pro"ide high returns in less time(
H *eople in"esting in shares prefer online trading be&ause of &on"enien&e and
time sa"ing(
H *eople who re&ently started trading were mainly moti"ated by online share
trading &on&ept(
H Bonan%a is a +nown entity in the online business(
H In online share trading bro+erage and resear&h reports are the ma,or &riteria for
sele&ting a bro+ing &ompany(
H C13CB P of the people are satisfied with Bonan%a(
Q
CHAPTER 4
SUMMARY AND CONCLUSSIONS
C(2 )!MMAR8 $# -6AR/I/ 6M*6RI6/56
=hile wor+ing for this resear&h problem, I dis&o"ered the in depth efforts being put in
wor+ing with Bonan%a( The forming of &ustomer relations and ser"i&e departments, to
e@tend +nowledge and e@perien&e for the well being of different &ustomers( The mind
set of the &ustomer, what a &ustomer is really thin+ing before in"esting(
T.6 *RIM6 6M*6RI6/56'
H !nderstanding the &ustomer satisfa&tion(
H !nderstanding the mind of up&oming &ustomers and their requirement(
H Analy%ing different &ustomers and intera&ting with them was all together a
great e@perien&e and understanding their needs(
H Intera&ting with the &orporate people and understanding there demands with
the &ustomer satisfa&tion(
H Tal+ing with the "arious talented people and &oordinating with different
people was a new e@perien&e(
H The up and downJs of mar+et and the e@pe&tations of the &ustomers with the
ser"i&es gi"en and handling them was another thing whi&h I learned while wor+ing
for this pro,e&t(
!nder the guidan&e of our esteem panel of subordinates and top management it was a
great learning e@perien&e
C(0 5$/5-!)I$/ A/D R65$MM6/DATI$/
Indian e&onomy has been globali%e and the &apital mar+et has been lin+ed to the
international finan&ial mar+et( #oreign indi"iduals and institutional in"estors are now
en&ouraged to parti&ipate into it( )o, there is a need for raising the Indian 5apital
mar+et in to the international standards in terms of effi&ien&y and transparen&y( $ne
su&h measure is the passing out of the Depository A&t during the year 2LLC(
Demateriali%ation of se&urities and under this system is one of the ma,or steps aimed
at impro"ing and moderni%ing the &apital mar+et and enhan&ing the le"els of
in"estorJs prote&tion measures whi&h aims at eliminating the bad deli"eries and
forgery of shares and e@pediting the transfer of shares(
Thus online share trading is gaining its popularity( Though it still has to go a long way
but it has established its foothold in the metropolitan &ities li+e Delhi, Mumbai et&(
The demateriali%ing of shares &oupled with the huge growth of Internet has been the
fuel for the online trading whi&h is now a &onsiderable part of the total trading(
It &an therefore be said that online share trading is here to stay and will only grow to
bigger proportions and will penetrate deeper into the e&onomy( )o online trading
would be&ome the order of the day, ta+ing o"er the traditional norms in the years to
&ome(
LIMITATIONS
H !sual sampling errors may e@ist(
H The uni"erse sele&ted was Delhi region( )o the result &annot be generali%ed(
H )ome of the &ustomers may be uninterested and may not ha"e replied
&orre&tly(
H Respondent may also be biased due to se"eral reasons(
H )ample si%e was small whi&h may affe&t the reliability of the result(
H Internet fraud
H )till many of Indian &ustomer do not +now to use Internet
RECOMMENDATION
H 5ompany should in"est more in its mar+eting strategies by gi"ing ads in
newspapers, maga%ines, T7 &ommer&ials et&(
H The A&&ount opening time ta+en is about D wor+ing days( Impro"ing logisti&s
should redu&e this(
H The a&&ount opening &harges should also be redu&ed to attra&t &ustomers(
H 5ustomer &are is not its best at Bonan%a( *rompt &ustomer handling should
impro"e this(
H )ome of the &ustomers do not get the ser"i&e promised to them( There should
be a &he&+ on the promises made(
H #orm should be simplified' A "ery lengthy and &omple@ from for the DMAT
a&&ount should be simplified(
A88&n!?
;UESTIONNAIRE
;.# In @%(% of t%&5& Fnan(al In5tr)=&nt5 !o 6o) n*&5t ntoA
(i) )hares (ii) Mutual #unds (iii) Bonds (i") $thiss
;/# ,%(% t68& of tra!n+ 6o) 8r&f&rA
(i) $nline (ii) $ffline (iii) /ot Appli&able
;1# If 6o) 8r&f&r Onln& Tra!n+ t%&n t%& r&a5on5 for tA
(i) *ri"a&y (ii) !ser friendly 9 Time )a"ing
(iii) 5on"enien&e (i") All The Abo"e
;2# ,%at fa(tor5 =ot*at&5 6o) to n*&5t n 5&()rt&5A
(i) /ew I*$Js (ii) 6ntry of #IIJs
(iii) More returns in less time (i") $thiss
;3# Do&5 onln& tra!n+ 565t&= =ot*at& 6o) to !&al n 5&()rt&5A
(i) 8es (ii) /o
;4# Ha*& 6o) %&ar! a9o)t S%ar&$%anA
(i) 8es (ii) /o
;B# ,%(% Bro$&ra+& Fr= !o 6o) 8r&f&r for Onln& Tra!n+A
(i) I5I5I Dire&t (ii) )hareFhan (iii) Indiabulls
(i") Fota+ )e&urities (") Bpaisa ("i) Any othisWWWWWWWWWW
;C# ,%at !ff&r&ntat&5 6o)r S%ar& Tra!n+ Co=8an6 fro= ot%55A
(i)Bro+erage (ii) Resear&h Report (iii) Dial up trade fa&ility
(i")Maga%ine (") 6@posure ("i) A&&ount opening &harges
("ii) $this
;D# Ho@ oft&n !o 6o) tra!&A
(i) Daily (ii) =ee+ly (iii) Monthly (i") 8early
;.E# In @%(% (at&+or6 !o&5 6o)r n(o=& fallA 7P&r =ont% n R5:
i) 132B111 ii) 2B111 X AB111 iii) AB111 X C1111 i") Abo"e C1111
;..# ,%at 8&r(&nta+& of 6o)r &arnn+5 !o 6o) n*&5t n 5%ar& tra!n+A
(i:!p to 21P (ii) !p to 0BP (iii) !p to B1P (i") Abo"e B1P
;./# A((or!n+ to 6o)r 8r&f&r&n(& ran$ t%& attr9)t&5 of a 5%ar& tra!n+
(o=8an6# 7.FMo5t I=8ortant, 3F Not I=8ortant at all:
2( 5ustomer )er"i&e WWWW
0( *roper uidan&e WWWW
A( Regular !pdates WWWW
?( TrustworthinessWWWW
B( Bro+erage 5hargesWWWWW
;.1# Ran$ t%&5& 5%ar& tra!n+ (o=8an&5 a((or!n+ to t%& G)alt6 of 5&r*(&
t%&6 8ro*!&# 7.FE?(&ll&nt, 3F V&r6 8oor:
2( 0( A( a: )hare+han
9: I5I5I Dire&t
?( B(
India Bulls
!: Fota+ )e&urities
&: $thiss (*lease )pe&ify)
;.2# ,%at a!!tonal f&at)r&5 !o 6o) @5% to %a*& n Onln& S%ar& Tra!n+A
P&r5onal Infor=aton
Na=&>
A+&>
S&?> Male #emale
P%on& No>
> O(()8aton
>
B9lo+ra8%6
REFERENCES
? @@@#9onanzaonln&#(o=
? @@@#5&9#+o*#n
? @@@#=on&6(ontrol#(o=
? @@@#$ar*6#(o=
? @@@#*al)&r&5ar(%onln&#(o=
? @@@#6a%oofnan(&#(o=
? @@@#t%&&(ono=5t#(o=
? @@@#n5&n!a#(o=
? @@@#95&n!a#(o=
Boo$ R&f&rr&!
? 7alue guide by Bonan%a
? In"estors 6yes by Bonan%a
? Business world(
? The e&onomist
doc_439275502.doc
nice
GAUAHATI UNIVERSITY
A Training Report submitted in partial fulfillment of the requirements for the award of
the Degree of Master of Business Administration (Industry Integrated), auhati
!ni"ersity on
COMPETITIVE ANALYSIS, PROMOTION & FUTURE
OF ONLINE TRADING
#$R
Bonanza Portfolo Lt!
!nder $rgani%ation uidan&e of' !nder Institution uidan&e $f'
Mr( aura" )ingh *rof( )( Moo+her,ee
Relationship Manager Dire&tor
Bonan%a *ortfolio -td( .IM)(
*repared And )ubmitted By'
Ashish upta
.ari+ishan Institute of Management )tudies
(!( Registration /o( """"# $f 012130120
CERTIFICATE
This is to &ertify that Ashish upta, a student of the auhati uni"ersity has prepared
his Training report entitled 45$M*6TITI76 A/A-8)I), *R$M$TI$/ 9
#!T!R6 $# $/-I/6 TRADI/: under my guidan&e( .e has fulfilled all
requirements under the regulations of the MBA (II*) and BBA (II*) auhati
!ni"ersity, leading to the BBA (II*) degree( This wor+ is the result or his own
in"estigation and the pro,e&t; neither as a whole nor any part of it was submitted to
any other !ni"ersity or 6du&ational Institution for any resear&h or diploma(
I wish him all su&&ess in life(
Prof# S# Moo$%&r'&&
Dr&(tor
HIMS, D&l%
STUDENTS DECLARATION
I hereby de&lare that the Training Report &ondu&ted at
B$/A/e@&hanges in Ahmedabad (2KL?), 5al&utta (2L1K), and
Madras (2LAD)( In addition, a large number of ephemeral e@&hanges emerged mainly
in buoyant periods to re&ede into obli"ion during depressing times subsequently(
)to&+ e@&hange means any body of indi"iduals, whether in&orporated or not,
&onstituted for the purpose of regulating or &ontrolling the business of buying, selling
or dealing in se&urities( These se&urities in&lude'
(i) )hares, s&rip, sto&+s, bonds, debentures sto&+ or other mar+etable se&urities of a
li+e nature in or of any in&orporated &ompany or other body &orporate;
(ii) o"ernment se&urities; and
(iii) Rights or interest in se&urities(
The Bombay )to&+ 6@&hange (B)6) and the /ational )to&+ 6@&hange of India -td
(/)6) are the two primary e@&hanges in India( In addition, there are 00 Regional
)to&+ 6@&hanges( .owe"er, the B)6 and /)6 ha"e established themsel"es as the two
leading e@&hanges and a&&ount for about K1 per &ent of the equity "olume traded in
India( The /)6 and B)6 are equal in si%e in terms of daily traded "olume( The
a"erage daily turno"er at the e@&hanges has in&reased from Rs KB2 &rore in 2LLD3LK
to Rs 2,0K? &rore in 2LLK3LL and further to Rs 0,0DA &rore in 2LLL30111 (April 3
August 2LLL)( /)6 has around 2B11 shares listed with a total mar+et &apitali%ation of
around Rs L, 02,B11 &rore(
The B)6 has o"er C111 sto&+s listed and has a mar+et &apitali%ation of around Rs L,
CK,111 &rore( Most +ey sto&+s are traded on both the e@&hanges and hen&e the
in"estor &ould buy them on either e@&hange( Both e@&hanges ha"e a different
settlement &y&le, whi&h allows in"estors to shift their positions on the bourses( The
primary inde@ of B)6 is B)6 )ense@ &omprising A1 sto&+s( /)6 has the )9* /)6 B1
Inde@ (/ifty) whi&h &onsists of fifty sto&+s( The B)6 )ense@ is the older and more
widely followed inde@(
The +ey regulator go"erning )to&+ 6@&hanges, Bro+ers, Depositories, Depository
parti&ipants, Mutual #unds, #IIs and other parti&ipants in Indian se&ondary and
primary mar+et is the )e&urities and 6@&hange Board of India ()6BI) -td(
Mar+et Basi&s
G 6le&troni& trading
G 6@&hanges in India
G Inde@
G 6@e&ute an order
G /eed a bro+er
G 5ontra&t note
G )plit
G Buy Ba&+
G )ettlement &y&le
G Rolling settlement
G )hort selling
G Au&tion
G )eparate mar+et for au&tions
G If the shares are not bought in the au&tion
G Bad Deli"ery
)to&+ 9 6@&hange Board of India
R6!-ATI$/ $# B!)I/6)) I/ T.6 )T$5F 6M5.A/6)
!nder the )6BI A&t, 2LL0, the )6BI has been empowered to &ondu&t inspe&tion of
sto&+ e@&hanges( The )6BI has been inspe&ting the sto&+ e@&hanges on&e e"ery year
sin&e 2LLB3LC( During these inspe&tions, a re"iew of the mar+et operations,
organi%ational stru&ture and administrati"e &ontrol of the e@&hange is made to
as&ertain whether'
G the e@&hange pro"ides a fair, equitable and growing mar+et to in"estors(
G the e@&hangeJs organi%ation, systems and pra&ti&es are in a&&ordan&e with the
)e&urities 5ontra&ts (Regulation) A&t ()5(R) A&t), 2LBC and rules framed there
under'3
G the e@&hange has implemented the dire&tions, guidelines and instru&tions
issued by the )6BI from time to time(
Importan&e of sto&+ Mar+ets'3
G A&&elerate 6&onomi& rowth(
G )our&es for 5ompanies to raise Money(
G In"estors(
G Bro+ers(
G Te&hnologi&al De"elopment(
B(R$=T. A/D *R6)6/T )TAT!) $# T.6 I/DIA/ )T$5F MAR6FT
The finan&ial ser"i&es se&tor &ontributed 2B per &ent to IndiaJs D* in #81L, and is
the se&ond3largest &omponent after trade, hotels, transport and &ommuni&ation all
&ombined together, as per the Ban+ing 9 #inan&e Nournal, released by an industry
body in August 0121(
#inan&ial ser"i&es, ban+ing, insuran&e and real estate se&tors rose by K per &ent during
the quarter ended mar&h 0122(
There are a total of 2,DA0 foreign funds registered with the )e&urities 9 6@&hange
Board of India ()6BI)(
$"erseas funds infused !)O ?(DK billion in the &apital mar+et in /o"ember 0121,
ta+ing the year3to3date total to !)O AL billion( The total inflows of foreign
institutional in"estors (#IIs) as on De&ember 0, 0121 ha"e &rossed the re&ord !)O
AK(DC billion mar+(
A&&ording to data a"ailable with )6BI, #IIs ha"e made in"estments worth !)O ?(22
billion in equities and in"ested !)O CCD(D2 million into the debt mar+et(
As on /o"ember 0C, 0121, IndiaJs foreign e@&hange reser"es totalled !)O 0LA(L
billion, a&&ording to the Reser"e Ban+ of IndiaJs (RBI) =ee+ly )tatisti&al
)upplement(
A&&ording to 7enture Intelligen&e, a resear&h firm, pri"ate equity in"estment in India
totalled !)O C(BD billion in the first three quarters of 0121, whi&h is more than double
the !)O 0(B billion in"ested during the same period last year(
As of De&ember D, 0121, as many as 22? pri"ate equity in"estments ha"e &ome from
domesti& funds &ompared to 20C foreign ones, a&&ording to data a"ailable with
7enture Intelligen&e( In terms of "alue, *6 firms promoted by Indians in"ested !)O
2,DB2 million so far this year, as against !)O ?,ADD million put in by foreign fund
in"estments, a&&ording to 7enture Intelligen&e(
The study said the main mar+et for *# in 011L was the domesti& Indian mar+et, whi&h
raised !)O A1 billion, a&&ounting for 02(B per &ent of the global *# mar+et( This was
up from !)O 2L billion in 011K(
$"er the re&ent years, there has been a &onsiderable growth in Indian mar+et
whi&h has led to high ross Domesti& *rodu&t (D*) with an a"erage annual growth
of around C to DP( In the finan&ial year 011K31L, the fa&tor &ost of the D* was
around C(D P( To +eep up this fa"orable growth, the go"ernment is also ta+ing steps(
The present Indian *rime Minister, Dr Manmohan )ingh, has stressed that the
go"ernment is ta+ing "arious steps to ma+e the yearly e&onomi& growth go up to L P(
In fa&t, the =orld Ban+ too has pro,e&ted that the mar+et growth rate of India will
rea&h around K P in the year 0121(
)to&+ mar+ets
Mar+et &apitali%ation of India as a proportion of world mar+et &ap has risen to a
re&ord high( A&&ording to data sour&ed from Bloomberg, the &ountryJs mar+et
&apitali%ation as a proportion of the world mar+et &ap is &urrently A(A? per &ent(
IndiaJs &urrent mar+et3&ap is !)O 2(BB trillion as &ompared with world mar+et3&ap of
!)O ?C(B trillion( This is higher than A(20 per &ent share India en,oyed at the mar+et
pea+ of Nanuary 011K(
Twenty Indian &ompanies raised a signifi&ant !)O 2(0 billion through initial share
sale offers in the first three months of 0121, a period when global I*$s were worth
o"er !)O BA billion, a&&ording to a report by global &onsultan&y firm 6rnst 9 8oung(
=ith 01 I*$s in the first quarter of the year, India had the third largest number of
I*$s a&ross the globe(
$"erall, the primary mar+et has witnessed robust inflows from #IIs this year and
&ornered around 0D per &ent of equity mar+et inflows( $f the total #II in"estment of
!)O 0K(? billion, about !)O D(D billion ha"e &ome into the primary mar+ets,
a&&ording to )6BI data(
#und raising by way of initial publi& offerings (I*$s), follow3on publi& offerings
(#*$s) and qualified institutional pla&ements (II*s) ha"e totalled a re&ord !)O 2L(?L
billion as of /o"ember 2D, 0121, as per data from )M5 lobal )e&urities, beating the
pre"ious high of !)O 2?(B2 billion in &alendar year 011D(
5( #!T!R6 $# T.6 I/DIA/ )T$5F MARF6T
/ow people are busy sear&hing about 0122 Indian )to&+ Mar+et $utloo+,
)ense@ and /ifty *redi&tion for 0122, 6&onomi& $utloo+ for 0122, Best )e&tors for
0122, et&(
*redi&tions for 0120 ' India will lead with LP D* growth(
G )to&+ mar+ets in India is li+ely to stabili%e and will remain at &urrent le"el for
the ne@t 0 3 A months( Before end of 0122 mar+ets are li+ely to rea&h new highs( B)6
Inde@ will rea&h around 00111 before end of 0122(
G This year India has re&ei"ed good monsoons whi&h will help India to a&hie"e
L P D* growth this year(
G #IIs are bullish on Indian and 5hinese e&onomy( They &onsider India as one of
the most fa"orite destinations(
G In near future mar+et may remain flat or may &orre&t by around K11 3 2111
points (on )ense@)(
G )mall in"estors should hold in"estments at &urrent le"el(
G 5urrently, the &apital mar+et in witnessing "olatility and pro&ess are edging
down on a&&ount of fears of impending interest rates hi+es due to global &ommodity
supply sho&+ indu&ed spiraling inflation and this might ha"e a negati"e impa&t on
sto&+ pri&es as high input &osts would erode &orporate profit margins( .owe"er,
further de&lines would impro"e "aluations and ma+e equity buying attra&ti"e
G Infrastru&ture and &ement, engineering and metal sto&+s are li+ely to remain
#IIJs and DIIJs hot fa"orites(
G #alling pri&es may not be good for traders, but in sto&+ mar+et oneJs loss is
somebody elseJs profit( #allen down pri&es opens up opportunity for In"estors to loo+
out for the good, top and best se&tors to In"est in 012230120 whi&h &omplements the
growing Indian 6&onomy(
Q
CHAPTER /
PROFILE OF THE ORGANISATION
/#. ORIGIN OF THE ORGANI0ATION
Bonan%a is established in the year 2LL?, Bonan%a de"eloped into one of the largest
finan&ial ser"i&es and bro+ing house in India within a short span of time( Today,
Bonan%a is the fastest growing finan&ial ser"i&e with B mega group &ompanies under
it( =ith diligent effort, a&+nowledged industry leadership and e@perien&e, Bonan%a
has spread its trustworthy tenta&les all o"er the &ountry with pan3India presen&e
a&ross more than 2C22 outlets spread a&ross BB1 &ities(
=ith a "ariety of ser"i&es a&ross all "erti&als in finan&e, Bonan%as offers you the
perfe&t blend of finan&ial ser"i&es right from 6quity Bro+ing, Ad"isory )er"i&es that
&o"er *ortfolio Management )er"i&es, Mutual #und In"estments, Insuran&e to
e@&eptional Depository )er"i&es(
Bonan%a belie"es in being te&hnologi&ally ad"an&ed so that we &an offer you 3 our
te&h3sa""y &ustomers 3 an integrated and inno"ati"e platform to trade online as well
as offline( Besides, we also ha"e one of the finest and most dedi&ated resear&h teams
with e@perts who ha"e in3depth, unsurpassed +nowledge of the mar+et pla&e( All this
and more ma+es Bonan%a the perfe&t pla&e for you to ta+e your first step in the
dire&tion of finan&ial su&&ess(
Bonan%a is affiliated with the best in the industry 3 right from the /)6, B)6 M5M,
M5M3)M to 5D)-, /)D-, et&( These affiliations pro"e our worth in the mar+et and
ma+e Bonan%a a name to re&+on with(
0(0 R$=T. A/D D676-$*M6/T $# T.6 $RA/I
H Define the information needed'3 This first step states that what is the
information that is a&tually required( Information in this &ase we require is that what
is the approa&h of in"estors while in"esting their money in mutual funds and ulips e(g(
what do they &onsider while de&iding as to in"est in the share mar+et(( Also, it studies
the e@tent to whi&h the in"estors are aware of the "arious &osts that one bears while
ma+ing any in"estment( )o, the information sought and information generated is only
possible after defining the information needed(
H Design the resear&h'3 A resear&h design is a framewor+ or blueprint for
&ondu&ting the resear&h pro,e&t( It details the pro&edures ne&essary for obtaining the
information needed to sol"e resear&h problems( In this pro,e&t, the resear&h design is
e@plorati"e in nature(
H )pe&ify the s&aling pro&edures'3 )&aling in"ol"es &reating a &ontinuum on
whi&h measured ob,e&ts are lo&ated( Both nominal and inter"al s&ales ha"e been used
for this purpose(
H 5onstru&t and pretest a questionnaire'3 A questionnaire is a formali%ed set of
questions for obtaining information from respondents( =here as pretesting refers to
the testing of the questionnaire on a small sample of respondents in order to identify
and eliminate potential problems(
*opulation
All the &lients of Bonan%a and the regular employees and also the person in the
"arious mar+et from where I ha"e &olle&ted the data, who are in"esting money in
)hare mar+et(
H )ample !nit'
In"estors and non3in"estors(
H )ample )i%e'
This study in"ol"es 21? respondents(
H )ampling Te&hnique'
The sample si%e has been ta+en by non3random &on"enien&e sampling te&hnique(
H Data 5olle&tion'
Data has been &olle&ted both from primary as well as se&ondary sour&es as des&ribed
below'
H *rimary sour&es
*rimary data was obtained through questionnaires filled by people through dire&t
&ommuni&ation with respondents in the form of Inter"iew(
H )e&ondary sour&es
The se&ondary sour&es of data were ta+en from the "arious websites , boo+s,
,ournals reports, arti&les et&( This mainly pro"ided information about the mutual fund
and ulips industry in India(
LIMITATIONS>
/o study is free from limitations( The limitations of this study &an be'
H )ample si%e ta+en is small and may not be suffi&ient to predi&t the results with
211P a&&ura&y(
H The result is based on primary and se&ondary data that has itJs own limitations(
H The study only &o"ers the area of 5handigarh that may not be appli&able to
other areas(
RESEARCH METHODOLOGY
Resear&h Methodology is the way to systemati&ally sol"e the Resear&h *roblem is
done s&ientifi&ally( In it we study the "arious steps that are generally adopted by
resear&her in studying his logi& behind them( It was quite hard to &olle&t primary data
by meeting ea&h indi"idual and inter"iew him>her so I ha"e &olle&ted primary data
with the help of questionnaire( )e&ondary data was also a"ailable to get information
about the study( All the e@e&uti"es and offi&ial person were quite helpful and pro"ided
full support(
Data was &olle&ted in the following manner'
H Intera&ting with some of the &ustomers of Bonan%a
H By questionnaire see+ing information
H Intera&ting with the employees of Bonan%a
*rimary Data
H Iuestionnaire see+ing information
H Intera&tion with the employees of )hare+han and with the &ustomer of
)hare+han
)e&ondary Data
There are following things that ha"e been the sour&e of se&ondary data'
H Nournal
H Maga%ines
H Manual of Bonan%a
H =el&ome +it of Bonan%a
)AM*-I/ *-A/
Methodology for Mar+et Resear&h
I di"ided the entire &ity into %ones and drew out samples out of ea&h %one( The si%e of
samples drawn from ea&h %one depended on the prospe&ti"e ness of the parti&ular
area( #or e(g(, if a parti&ular resear&h area &onsisted of $ffi&es then the sample si%e
would ob"iously be higher than an area li+e )hopping mall or *7R( This is be&ause
$ffi&e employees &onstitute the ser"i&e se&tors that are the a&ti"e in"estors of today(
Also, the offi&e areas &onsist of people from the business &lass who ha"e always been
in the hunt for qui&+ money, not to forget that smart and timely in"estment in the
share mar+et &an yield to enormous returns(
After di"iding the &ity into %ones, the Target audien&e was probed using Inter"iews
and questionnaires( These were later analy%ed to draw out &on&lusi"e results(
The Resear&h Area 5omprised of the following pla&es'
./IJs
H *RI5I/ #$R R6TAI- 5-I6/T)
In"estor Terminal
H A&&ount $pening ' Rs B11
H Demat 2st 8r ' Rs 0B1
H Initial Margin ' Rs 0B11(5ompulsory)
H Min Margin Retainable ' Rs 2111
oBro+erage '
3Trading 1(1BP ea&h side S )T
3Deli"ery 1(B1P ea&h side S )T
*RI5I/ #$R ./I 5-I6/T)
Trader Terminal
H A&&ount $pening ' Rs B11
H Demat 2st 8r ' Rs 0B1
H Initial Margin ' Rs B111(5ompulsory)
H Min Margin Retainable ' Rs 2111
oBro+erage '
Trading 1(1BP ea&h side S )T
Deli"ery 1(B1P ea&h side S )T
(/egotiable to 1(1BP ea&h side 9 1(0BP)
oA&&ount A&&ess 5harges
Monthly Rs K11, ad,ustable against Bro+erage
8early Rs K111, ad,ustable against bro+erage
Deal 5lin&hers ">s B *aisa
o5ompany Ba&+ground
/ot ha"ing a "ery positi"e image, relati"ely new in the bro+ing arena, limited
networ+
oDowntime
Re&ent past B paisa Trader Terminal (T(T) is e@perien&ing high frequen&y downtime
between A 3 A'A1 p(m due to ser"er load ( as their T(T is feature hea"y &ompared to
)peetrade &harting)
oManual A&&ounting
The B paisa a&&ounting system is manual; online fund transfer through ban+ is not
&redited instantly(
-imit is pro"ided 6$D for shares sold from D*, or &all
)imilarly limit released for shares sold under BT)T is manual
Delay in re&ei"ing pay3out of &lear funds from trading to Ban+ A&&ount
$ Min A&&ount Balan&e
5on&ept of Min Rs 2,111 to be maintained in form of &ash > se&urities to +eep a&&ount
a&ti"e( This &an be withdrawn only on &losure of a&&ount(
0( F$TAF )65!RITI6)
5ompany Ba&+ground'
Fota+ )e&urities is the sister &on&ern of Fota+ Mahindra ban+( Fota+ )e&urities
limited is a ,oint "enture between Fota+ Mahindra Ban+ and oldman )a&hs(
$nline A&&ount Types
H Fota+ ateway A&&ount '
F6AT des+top "ersion, )ms &harge Rs 211,
F6AT premium at R) B11 pm, Min margin Rs 01111
H Fota+ 7alue A&&ount '
F6AT des+top "ersion, )ms &harge Rs DB, F6AT premium at Rs B11 pm,
*RI5I/ $# F$TAF
H A&&ount $pening ' Rs BB1 with +ota+ sa"ings a&&ount, Rs DB1 with
margin of Rs B1111, otherwise Rs 2011(
H Demat ' Rs A1 pm
H Min Margin Retainable ' Rs 2111
H Bro+erage )lab =ise ' .igher the "olume, lower the bro+erage( 6"en older
&ustomers (on 1(0BP 9 1(?1P) ha"e been mo"ed to
the slab wise stru&ture wef 2>?>011?(
)lab )tru&ture of Fota+
Deli"ery "olume pm Bro+erage
H T 2 la+h 1(BLP ateway A&&
H 2 la+h 3 B la+hs 1(BBP ateway A&&
H B la+hs 3 21 la+hs 1(?BP ateway A&&
H 21 la+hs 3 01 la+hs 1(ACP 7alue A&&(
H 01 la+hs 3 C1 la+hs 1(0DP 7alue A&&(
H C1 la+h 3 0 5r 1(0AP 7alue A&&(
H U 0 5r 1(2KP *ri"ilege 5ir&le
Deli"ery "olume pm Bro+erage )quare off
H T0B la+hs 1(1CP both sides ateway a&&
H 0B la+hs 3 0 5r 1(1BP both sides 7alue a&&(
H 0 5r 3 B 5r 1(1?P both sides 7alue a&&(
H U B 5r 1(1AP both sides *ri"ilege a&&(
Deri"ati"e Bro+erage )lab
Deli"ery "olume pm Daily )q( up )ettlement
H 0 5r 1(1DP both sides 1(1LP both sides
H 0 3 B(B 5r 1(1?BP both sides 1(1DAP both sides
H B(B 5r 3 21 5r 1(1ACP both sides 1(1?CP both sides
H 21 5r 3 0B 5r 1(10DP both sides 1(1?CP both sides
H U 0B 5r 1(10AP both sides 1(1A0P both sides
Deal 5lin&hers ">s Fota+street
oRigid A&&ount $pening Terms
/o #le@ibility of A>& opening &harges (Rs BB1) S 5ompulsory margin RsB111>3
o/o 5ustomisation of &ommer&ial Terms
/o #le@ibility in -e"erage 3 Dependent on Type of A&&ount ( ? to C times only)
/o fle@ibility in Bro+erage, dri"en by slab stru&ture
oMany $ther 5harges
Rs A1 p(m towards D* AM5 &harges
D* in&oming &harges e@tra, 1(10P
Rs 2,111 as retainable Margin to +eep a&&ount a&ti"e
Rs 0B per &all after 01 &alls for the month
oRestri&ted A&&ess to Terminal -i+e produ&t
F6AT Des+top restri&ted distribution on payment of Rs B11, /on refundable
A( I/DIAB!--)
5ompany Ba&+ground
IndiaBulls is a retail finan&ial ser"i&es &ompany present in D1 lo&ations &o"ering C0
&ities( It offers a full range of finan&ial ser"i&es and *rodu&ts ranging from 6quities to
Insuran&e( ?B1 S Relationship Managers who a&t as personal finan&ial ad"isor
$nline A&&ount Type
)ignature A&&ount '
*lain 7anilla A&&ount with fo&us on 6quity Analysis( The equity analysis is a paid
ser"i&e e"en for A>& holders(
*ower Indiabulls'
A&&ount with sophisti&ated trading tools, low &ommissions and priority a&&ess to R(M
*ri&ing of IB A&&ounts
)ignature A&&ount
o A&&ount $pening ' Rs 0B1
o Demat ' Rs 011 if *$A is signed, /o AM5 for this D*
o Initial Margin ' /I-
o Bro+erage ' /egotiable
*ower IndiaBulls
o A&&ount $pening ' Rs DB1
o Demat ' Rs 011 if *$A is signed, /o AM5 for this D*
o Initial Margin ' /I-
o Bro+erage ' /egotiable
*AID Resear&h
)5.6M6 #A5I-IT8
H =ebBased323Month3B11 ' 7iew 9 *rint on website
H =ebBased3238ear3C111 ' 7iew 9 *rint on website
H *rintReport323Month3DB1 ' 7iew 9 *rint on website S 21 Reports
Deli"ered
H *rintReport3238ear3L111 ' 7iew 9 *rint on website S 21 Reports
Deli"ered
Deal 5lin&hers ">s IndiaBulls
o*$A for 5lients DMAT' All shares held by &lient trading with IB are mo"ed to IB
*ool A&&ount and the same is shown as a refle&tion in &lient D* a&&ount( 5harges are
le"ied to mo"e shares from IB pool A&&ount to &lient D* a&&ount
o*aid Resear&h )er"i&es
A&&ess to an resear&h e"en for an IB trading a&&ount holder is &harged a min of Rs
B11 a month
oMargin #unding hoa@
The interest on funding starts on le"eraged deli"ery trades from TS2 day itself V02P
p(a, on a daily basis
oThe role of Relationship Manager
6a&h RM is loo+ed upon as a re"enue generator and he gets a P on business
generated from &lient( This &an lead to o"er le"eraged (Interest) 9 high frequen&y
(Bro+erage) trading, whi&h may not be in the best interest of the &lient(
?( I5I5I Dire&t
5ompany Ba&+ground
I5I5I =eb Trade -imited (I=T-) maintains I5I5Idire&t(&om( I=T- is an Affiliate of
I5I5I Ban+ -imited and the =ebsite is owned by I5I5I Ban+ -imited(
A&&ount Types
oI5I5I Dire&t e3in"est A&&ount '
*lain 7anilla A&&ount with fo&us on A in 2 ad"antages( Differentiated in ser"i&es
within the a&&ount
2(5ash on spot
0(Margin *lus
*remium Trading interfa&e of I5I5IDire&t -in+ is gi"en to DB5 partners and ./IJs
oA&&ount $pening ' Rs DB1
o)&hemes '
#or short periods Rs DB1 is refundable against bro+erage generated in a qtr( These
s&hemes are introdu&ed A3? times a year(
oDemat'
/I-, 2st year &harges in&luded in A&&ount $pening *lus a fa&ility to open additional ?
D*Js without 2st yr AM5
oInitial Margin ' /il
oBro+erage All bro+erage is in&lusi"e of stamp duty and e@&lusi"e of other ta@es(
Deli"ery 7ol per qtr Bro+erage R )quare 7ol off p m Bro+erage RR
H T 21 la+hs ' 1(DBP
H 21 la+hs 3 0B la+hs ' 1(D1P
H 0B la+hs 3B1 la+hs ' 1(BBP
H B1 la+hs 3 2 5r ' 1(?BP
H 2 5r 3 0 5r ' 1(ABP
H 0 5r 3 B 5r ' 1(A1P
H U B 5r ' 1(0BP
Deal 5lin&hers ">s I5I5IDire&t
o*oor online Interfa&e
)low website interfa&e with no real3time quotes &reates a dissatisfa&tion among high
frequen&y traders
oMargin trading restri&tion
The margin trading system is a"ailable up to 0'?B p(m, with outstanding net positions
under margin segment automati&ally squared off at any time between 0'?B 3 A'A1 p(m(
Thus no &ontrol of square off pri&e(
oMorning Trades Issue
Being one of the websites with largest no of after hour orders whi&h are pushed 2st
thing in the morning, &reates a &ho+ing of orders to the e@&hange, &auses delay of
&onfirmations for new order pla&ed during the early morning trades
oRestri&tion of BT)T
The sale of shares pur&hased is restri&ted to TS2 day and is not permitted on TS0 Day(
o/o le"erage for Deli"ery trades
Deli"ery is restri&ted to the total money allo&ated into the trading a&&ount(
o/o fle@ibility on le"erage on Intra3day trades
The le"erage of ? times is a"ailable for intra3 day trades(
B( .D#5 )65!RITI6)
5ompany Ba&+ground
The .D#5 BA/F, .D#5 and 5hase5apital 5apital *artners and their asso&iates
promote .D#5 )65!RITI6) -TD( *ioneers in setting up Dial3a3share ser"i&es with
the largest team of Tele3bro+ers
$nline A&&ount Type'
.D#5 $nline Trading A>& ' *lain 7anilla A&&ount with fo&us on A in 2 ad"antage
*ri&ing of .D#5 A&&ount
H A&&ount $pening ' Rs DB1
H Demat ' /I-, 2st year &harges in&luded in A&&ount $pening
H Initial Margin ' Rs B111>3 for non .D#5 Ban+ &ustomers (AIB)
oBro+erage'
Trading 1(1BPR ea&h side S )T
Deli"ery 1(B1PRR ea&h side S )T
R Rs 0B Min Bro+erage per transa&tion
RR Rs K Min Bro+erage per transa&tion
#I/DI/)
H *eople with an eye for in"estment prefer to in"est in shares(
H This is mainly due to the fa&t that shares pro"ide high returns in less time(
H *eople in"esting in shares prefer online trading be&ause of &on"enien&e and
time sa"ing(
H *eople who re&ently started trading were mainly moti"ated by online share
trading &on&ept(
H Bonan%a is a +nown entity in the online business(
H In online share trading bro+erage and resear&h reports are the ma,or &riteria for
sele&ting a bro+ing &ompany(
H C13CB P of the people are satisfied with Bonan%a(
Q
CHAPTER 4
SUMMARY AND CONCLUSSIONS
C(2 )!MMAR8 $# -6AR/I/ 6M*6RI6/56
=hile wor+ing for this resear&h problem, I dis&o"ered the in depth efforts being put in
wor+ing with Bonan%a( The forming of &ustomer relations and ser"i&e departments, to
e@tend +nowledge and e@perien&e for the well being of different &ustomers( The mind
set of the &ustomer, what a &ustomer is really thin+ing before in"esting(
T.6 *RIM6 6M*6RI6/56'
H !nderstanding the &ustomer satisfa&tion(
H !nderstanding the mind of up&oming &ustomers and their requirement(
H Analy%ing different &ustomers and intera&ting with them was all together a
great e@perien&e and understanding their needs(
H Intera&ting with the &orporate people and understanding there demands with
the &ustomer satisfa&tion(
H Tal+ing with the "arious talented people and &oordinating with different
people was a new e@perien&e(
H The up and downJs of mar+et and the e@pe&tations of the &ustomers with the
ser"i&es gi"en and handling them was another thing whi&h I learned while wor+ing
for this pro,e&t(
!nder the guidan&e of our esteem panel of subordinates and top management it was a
great learning e@perien&e
C(0 5$/5-!)I$/ A/D R65$MM6/DATI$/
Indian e&onomy has been globali%e and the &apital mar+et has been lin+ed to the
international finan&ial mar+et( #oreign indi"iduals and institutional in"estors are now
en&ouraged to parti&ipate into it( )o, there is a need for raising the Indian 5apital
mar+et in to the international standards in terms of effi&ien&y and transparen&y( $ne
su&h measure is the passing out of the Depository A&t during the year 2LLC(
Demateriali%ation of se&urities and under this system is one of the ma,or steps aimed
at impro"ing and moderni%ing the &apital mar+et and enhan&ing the le"els of
in"estorJs prote&tion measures whi&h aims at eliminating the bad deli"eries and
forgery of shares and e@pediting the transfer of shares(
Thus online share trading is gaining its popularity( Though it still has to go a long way
but it has established its foothold in the metropolitan &ities li+e Delhi, Mumbai et&(
The demateriali%ing of shares &oupled with the huge growth of Internet has been the
fuel for the online trading whi&h is now a &onsiderable part of the total trading(
It &an therefore be said that online share trading is here to stay and will only grow to
bigger proportions and will penetrate deeper into the e&onomy( )o online trading
would be&ome the order of the day, ta+ing o"er the traditional norms in the years to
&ome(
LIMITATIONS
H !sual sampling errors may e@ist(
H The uni"erse sele&ted was Delhi region( )o the result &annot be generali%ed(
H )ome of the &ustomers may be uninterested and may not ha"e replied
&orre&tly(
H Respondent may also be biased due to se"eral reasons(
H )ample si%e was small whi&h may affe&t the reliability of the result(
H Internet fraud
H )till many of Indian &ustomer do not +now to use Internet
RECOMMENDATION
H 5ompany should in"est more in its mar+eting strategies by gi"ing ads in
newspapers, maga%ines, T7 &ommer&ials et&(
H The A&&ount opening time ta+en is about D wor+ing days( Impro"ing logisti&s
should redu&e this(
H The a&&ount opening &harges should also be redu&ed to attra&t &ustomers(
H 5ustomer &are is not its best at Bonan%a( *rompt &ustomer handling should
impro"e this(
H )ome of the &ustomers do not get the ser"i&e promised to them( There should
be a &he&+ on the promises made(
H #orm should be simplified' A "ery lengthy and &omple@ from for the DMAT
a&&ount should be simplified(
A88&n!?
;UESTIONNAIRE
;.# In @%(% of t%&5& Fnan(al In5tr)=&nt5 !o 6o) n*&5t ntoA
(i) )hares (ii) Mutual #unds (iii) Bonds (i") $thiss
;/# ,%(% t68& of tra!n+ 6o) 8r&f&rA
(i) $nline (ii) $ffline (iii) /ot Appli&able
;1# If 6o) 8r&f&r Onln& Tra!n+ t%&n t%& r&a5on5 for tA
(i) *ri"a&y (ii) !ser friendly 9 Time )a"ing
(iii) 5on"enien&e (i") All The Abo"e
;2# ,%at fa(tor5 =ot*at&5 6o) to n*&5t n 5&()rt&5A
(i) /ew I*$Js (ii) 6ntry of #IIJs
(iii) More returns in less time (i") $thiss
;3# Do&5 onln& tra!n+ 565t&= =ot*at& 6o) to !&al n 5&()rt&5A
(i) 8es (ii) /o
;4# Ha*& 6o) %&ar! a9o)t S%ar&$%anA
(i) 8es (ii) /o
;B# ,%(% Bro$&ra+& Fr= !o 6o) 8r&f&r for Onln& Tra!n+A
(i) I5I5I Dire&t (ii) )hareFhan (iii) Indiabulls
(i") Fota+ )e&urities (") Bpaisa ("i) Any othisWWWWWWWWWW
;C# ,%at !ff&r&ntat&5 6o)r S%ar& Tra!n+ Co=8an6 fro= ot%55A
(i)Bro+erage (ii) Resear&h Report (iii) Dial up trade fa&ility
(i")Maga%ine (") 6@posure ("i) A&&ount opening &harges
("ii) $this
;D# Ho@ oft&n !o 6o) tra!&A
(i) Daily (ii) =ee+ly (iii) Monthly (i") 8early
;.E# In @%(% (at&+or6 !o&5 6o)r n(o=& fallA 7P&r =ont% n R5:
i) 132B111 ii) 2B111 X AB111 iii) AB111 X C1111 i") Abo"e C1111
;..# ,%at 8&r(&nta+& of 6o)r &arnn+5 !o 6o) n*&5t n 5%ar& tra!n+A
(i:!p to 21P (ii) !p to 0BP (iii) !p to B1P (i") Abo"e B1P
;./# A((or!n+ to 6o)r 8r&f&r&n(& ran$ t%& attr9)t&5 of a 5%ar& tra!n+
(o=8an6# 7.FMo5t I=8ortant, 3F Not I=8ortant at all:
2( 5ustomer )er"i&e WWWW
0( *roper uidan&e WWWW
A( Regular !pdates WWWW
?( TrustworthinessWWWW
B( Bro+erage 5hargesWWWWW
;.1# Ran$ t%&5& 5%ar& tra!n+ (o=8an&5 a((or!n+ to t%& G)alt6 of 5&r*(&
t%&6 8ro*!&# 7.FE?(&ll&nt, 3F V&r6 8oor:
2( 0( A( a: )hare+han
9: I5I5I Dire&t
?( B(
India Bulls!: Fota+ )e&urities
&: $thiss (*lease )pe&ify)
;.2# ,%at a!!tonal f&at)r&5 !o 6o) @5% to %a*& n Onln& S%ar& Tra!n+A
P&r5onal Infor=aton
Na=&>
A+&>
S&?> Male #emale
P%on& No>
> O(()8aton
>
B9lo+ra8%6
REFERENCES
? @@@#9onanzaonln&#(o=
? @@@#5&9#+o*#n
? @@@#=on&6(ontrol#(o=
? @@@#$ar*6#(o=
? @@@#*al)&r&5ar(%onln&#(o=
? @@@#6a%oofnan(&#(o=
? @@@#t%&&(ono=5t#(o=
? @@@#n5&n!a#(o=
? @@@#95&n!a#(o=
Boo$ R&f&rr&!
? 7alue guide by Bonan%a
? In"estors 6yes by Bonan%a
? Business world(
? The e&onomist
doc_439275502.doc