presentation on comparitive study of different broking firm

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Project Report Based OnComparative Study On Demat Schemes of Various Broking Firms in Association with : 

Project Report Based OnComparative Study On Demat Schemes of Various Broking Firms in Association with Submitted By: Roll No Enrolment No. Adarsh Menon B 014956 097010592009 AHMEDABAD INSTITUTE OF TECHNOLOGY GUJARAT TECNOLOGICAL UNIVERSITY, AHMEDABAD Thursday, August 19, 2010 1

Vision : 

Vision To be a leader and role model in financial services sector with a broad based and integrated business. Thursday, August 19, 2010 2

Aditya Birla Financial Service Group : 

Aditya Birla Financial Service Group Thursday, August 19, 2010 3

ABML SERVICES : 

ABML SERVICES Thursday, August 19, 2010 4

PROGRESS OF ABML : 

PROGRESS OF ABML Thursday, August 19, 2010 5

DEMAT : 

DEMAT Dematerialization of financial securities is the first sign of financial reforms in India. Finance Ministry and SEBI realized the need of more efficient financial system started in the early 1996 with NSE. As a result of this NSDL and CDSL came into picture. DEMAT is just like a bank account where actual money is replaced by shares. ONE don't have to possess any physical certificates showing that HE/SHE own the shares. They are all held electronically in your account. Thursday, August 19, 2010 6

Depository Participants : 

Depository Participants NSDL NSDL works to support the investors and brokers in the capital market of the country. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency, minimize risk and reduce costs. CDSL The second depository, Central Depository Services (India), was promoted by the Stock Exchange, Mumbai (BSE). Thursday, August 19, 2010 7

Comparative Study : 

Comparative Study Comparison of Aditya Birla Money Ltd with other firms

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Conclusions from Comparisons : 

Conclusions from Comparisons Thursday, August 19, 2010 15 Minmum margin cheque is 5000/-. If the customer is an employee of an aditya birla group then he can open an demat account with the margin cheque of 1000/- only which is lowest in broking industry. A/c can be opened with cancelled cheque also Rs 750/- which is charged for a/c opening scheme is also refunded if the customer prefers pay out. If the customer wishes his 750/- opening charge can be transferred as AMC for three years. We provide brokerage of 3 ps & 30ps(further negotiable) to every new customer while other firms charge 5ps & 50 ps. The advance brokerage scheme of aditya birla named as I-DECIDE PLAN is also the best plan available with broking firm.

Analysis And Interpretation : 

Analysis And Interpretation Based on the research done with broking firms we have carried out the analysis and interpretation of Questionnaire in graphical format.

Table I: Demat charges : 

Table I: Demat charges Thursday, August 19, 2010 17 The result of the survey indicates that the market price for opening a demat account is Rs 500 which is charged by maximum companies

Table II: Margin Cheque : 

Table II: Margin Cheque Thursday, August 19, 2010 18 It can be interpreted that maximum company are demanding the margin cheque between 5001-10000 and the starting margin cheque is not less than 5000.these figures are further negotiable with the customers with some of the companies

Table III: Credit limit : 

Table III: Credit limit Thursday, August 19, 2010 19 It can be said that many companies provide credit for 5 to 10 times in intraday and delivery based. Reliance money is the only firm that provides exposure for 20 times for intraday only

Table IV: Brokerage Charge : 

Table IV: Brokerage Charge Thursday, August 19, 2010 20 For new customer brokerage charged is fixed for 5ps & 50ps which is negotiable up to 3ps & 30ps. This is being reduced by many broking firms to 2ps to 20ps if turnover exceed 100000 per day. Many other are also available with the firm to reduce brokerage

Table V: Interest Charge : 

Table V: Interest Charge Thursday, August 19, 2010 21 If credit limit is crossed all broking firms charge interest on late payment, which differs with the entire firm. The market rate 18% which is charged by seven companies and the highest interest charge is 24% by Icici

Findings : 

Findings Thursday, August 19, 2010 22 Maximum broking firm charge Rs. 500 for opening demate accounts The margin cheque is between 5000 and 10000 All broking firm are providing time limit of T+2 Credit limit varies customers to customer, even with intraday and on delivery basis Average investment charge by all the broking firms is 18% Annual maintenance charge is between 250 to 500 New schemes of life time maintenance charge are introduced in the market by some broking firms New system of advance broking scheme is also introduce recently by many broking firms

Suggestions : 

Suggestions Thursday, August 19, 2010 23 MORE BRANCHES Need to open more branches to be a topper in market because it has a low distribution of network LESS TIME They should try to make some arrangements to reduce account opening time by verifying documents at branch itself. LINK-BANK A/Cs Linked as many accounts as client wants to its online account

Suggestions Cont… : 

Suggestions Cont… Thursday, August 19, 2010 24 NEW BANKS IN THE KITTY Need to tie up with major banks like HSBC, Punjab national bank, canara bank etc CUSTOMER SATISFACTION The company should focus on the customer satisfaction not on just taking money from their pocket CONTROLLED BRANCHES The company would have to make some arrangements to control the branches and make standardized procedures for all of them for their better control and performance appraisal

Consumer Survey : 

Consumer Survey

2. Are you aware of Share Market? : 

2. Are you aware of Share Market? From the chart, we came to know that, 68% are having knowledge related to share market and 32 % don’t have the knowledge of share market Thursday, August 19, 2010 26

3.1 Do you have DEMAT & Trading Account? : 

3.1 Do you have DEMAT & Trading Account? From the chart, we came to know that there are 58% people that have DEMAT account and they trade, while 42% still don’t have the DEMAT account. Thursday, August 19, 2010 27

3.2 If YES then how many DEMAT Accounts you have? : 

3.2 If YES then how many DEMAT Accounts you have? From the survey , we came to know that 72% of people have 1 Demat account and very few have more than 3 Demat accounts. Thursday, August 19, 2010 28

4. Since how many years you trade? : 

4. Since how many years you trade? Survey connected suggests that there are 20% people that trade from last 1 year and maximum people are trading for more than 7 year. Thursday, August 19, 2010 29

5. What type of trading you prefer? : 

5. What type of trading you prefer? From the chart, we can conclude that maximum people do intraday trading to earn the short term income, while those who wish for the safe investment, they prefer the Delivery trade. Thursday, August 19, 2010 30

6. What type of trading you prefer? Offline or Online : 

6. What type of trading you prefer? Offline or Online Maximum people prefer offline trading because sensex works from Monday to Friday which is the working hours for business as well as for service sector and the trading is ban in many organization in between work Thursday, August 19, 2010 31

7. In Which Sector you invest the most? : 

7. In Which Sector you invest the most? We can conclude that maximum people invest in saving bank account, insurance and ppf as Indian people prefer less risk Thursday, August 19, 2010 32

8. What amount of Saving You Invest yearly? : 

8. What amount of Saving You Invest yearly? From this we can conclude that people investing in share market are highest risk taker and there distribution investment in share market is shown next Thursday, August 19, 2010 33

9. What things you will consider while getting the DEMAT account? : 

9. What things you will consider while getting the DEMAT account? Maximum people who are interested to open new demat account they first ask the brokerage of the firm which can be further reduce according to the trade done by the customer second preference is for the credit limit for share purchase Thursday, August 19, 2010 34

10.1 Who provide you the Tips? : 

10.1 Who provide you the Tips? All though providing tips is totally banned by the SEBI but still the broking firms are providing tips in the indirect form of SMS, mail, online chat Thursday, August 19, 2010 35

10.2 Are you satisfied with tips and Information provided by your dealer? : 

10.2 Are you satisfied with tips and Information provided by your dealer? This question is related with the above question and only 67% of people are satisfied with the tips provided by the broking firms Thursday, August 19, 2010 36

11.1 Are you aware of life-time Scheme ? : 

11.1 Are you aware of life-time Scheme ? Lifetime scheme is newly launched by many companies hence people are still not aware of this scheme and those who are aware are still not wishing to get it, as the charges of lifetime scheme is quite high Thursday, August 19, 2010 37

11.2 Would you like to get the facility life time scheme? : 

11.2 Would you like to get the facility life time scheme? This is question is related with the above question. Only those people purchase life time scheme who wish to trade for long-term Thursday, August 19, 2010 38

12. Are you satisfied with your soft ware provided with the firm for online trade? : 

12. Are you satisfied with your soft ware provided with the firm for online trade? Out of 23% people only 85% people are satisfied with the software facility provided by the broking firms as a single firm has many up gradation with the software which is only provided to the premium customer Thursday, August 19, 2010 39

13. Are you satisfied with your company service? : 

13. Are you satisfied with your company service? Maximum people are satisfied with their broking firms, as the customer start trading which directly become fruitful to broking firms and they provide good service to the individuals Thursday, August 19, 2010 40

14. Please Rank the following Broking Firms According to you? : 

14. Please Rank the following Broking Firms According to you? From the survey we can rank the firms as under : Rank Firm 1. India Infoline 2. Share Khan 3. Angel 4. Reliagre Thursday, August 19, 2010 41

15.Will you be the future Customer of Aditya Birla Money Ltd? : 

15.Will you be the future Customer of Aditya Birla Money Ltd? After explaining schemes to the consumers 24% of people were ready to get the new Demat account with the aditya birla while 30% strongly neglected Thursday, August 19, 2010 42

FINDINGS… : 

FINDINGS… Preference of Investment: Consumers want to invest 30% in banks, 19 % in insurance, 13% in PPF and 8% & 12% in commodity and equity market respectively Awareness on Online Share Trading: 23% consumers are aware of online share trading and 44% consumers are not aware of online share trading Future customer of ABML: 37% of respondent are willing to be the future customer of ABML and 17% are not interested to change their existing broking firm Thursday, August 19, 2010 43

FINDINGS… : 

FINDINGS… Satisfaction about facilities provided by broking firms: 61% consumers are satisfied with the facilities provided by broking firms were as 3% of consumers are not at all satisfied by the facilities provided by broking firms Provide a large no. of Products and services: Now days to beat competition many broking firms are providing multiple product in the collaboration with their subsidiary financial company Thursday, August 19, 2010 44

Recommendations : 

Recommendations Thursday, August 19, 2010 45 Brokerage should be reduce to the possible extent, so that new customers can be attracted They should offer demonstration for on line share trading and other seminars for cultivation of knowledge to the customers Advertisement should be given in newspapers, so that the persons who do not know about online facility of share trading can be attracted

Recommendation cont… : 

Recommendation cont… Thursday, August 19, 2010 46 After opening of account, customer should provide a guidebook, so that they can easily learn and transact with ABML Some discount/offer can be given to those who are opening accounts in groups The customers who want to open a savings bank account as well as Demat account can be call for open an online share trading Offer can be give to the existing Demat account holder Company should give Tip through Phone to customer

Recommendation cont… : 

Recommendation cont… Thursday, August 19, 2010 47 Company should try to reduce size of Account Opening Form Company should develop live Terminal

THANK YOU : 

THANK YOU Thursday, August 19, 2010 48

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