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Comparative Analysis Of Broking Firms


    Analysis Of

    Submitted to : Prof.
    Samarjeet Sen Gupta

    Saloni Pradhan………roll no. 02
    Sanjeev Gupta………..roll no.06
    Souma Das…………….roll no.24
    Subhendu Chanda….roll no.36
    Subhojit Ghosh……….roll no.33
    Utsav Roy……………….roll no.59

S/NO. TOPICS                              PAGE NO.

1.    Acknowledgement                     3

2.    Declaration                         4

3.    Objectives                          5

4.    Introduction                        6

5.    Company Profile                     8

6.    Different players in the Industry   12

7.    Activation and Other Charges Of     13
      Different Co.
8.    Data Analysis                       14

9.    Findings                            20

10.   Annexure                            21

11.   Bibliography                        22

       Preservation, inspiration and motivation have always played a key
role in the success of any venture. In the present world of competition and
success understanding of theoretical and practical working makes you
aware about the real Business; willingly we prepared this particular project.

      We would like to thank our faculty Prof. Samarjeet Sen Gupta to give
us the opportunity to do this project.

      We would also like to thank the Microsec Capital Ltd. for helping us
to provide the information about their broking firm.

      And finally, we would like to thank EIILM for providing us the
platform to do this project and to learn about the different broking firms.

We the student of Eastern Institute for Integrated Learning in Management,
Kolkata , declare that this project report title” A COMPARITEIVE STUDY OF
VARIOUS BROKING FIRMS” submitted, is our original work and has not
been previously submitted as a part of any other degree or diploma of
another Business school or University.

The findings and conclusions of this report are based on our personal study
and experience.

1.    To know the customers preference in different sector of
     investment and to know what are the factors consider most
     important in order to choose their broking firm.

2.   To know the different companies Activation and Other charges.

3.   To know about the different broking firms and to make a
     comparison between them with the help of primary and
     Secondary Data.

                                    The Bombay Stock Exchange (BSE) and
                              the National Stock Exchange of India Limited
                              (NSE) are the two primary exchanges in India.
In addition, there are 22 Regional Stock Exchanges. However, the BSE and
NSE have established themselves as the two leading exchanges and account
for about 80% of the equity volume traded in India. The NSE and BSE are
equal in size in terms of daily traded volume.
        The average daily turnover at the exchanges has increased from
Rs851crore in 1997-98 to Rs1284crore in 1998-99 and further to
Rs2273crore in 1999-2000. NSE has around 1500 shares listed with the
total market capitalization of around Rs9, 21,500crore.
        The BSE has over 6000 stocks listed and has a market capitalization
of around Rs9, 68,000crore. Most key stocks are traded on both the
exchanges and hence the investor could buy on either of the exchanges.
Both exchanges have a different settlement cycle, which allows investors to
shift their position on the bourses. The primary index of BSE in BSE Sensex
comprises 30 stocks. NSE has the S&P NSE 50 Index (Nifty), which consists
of fifty stocks. The BSE Sensex is the older and most widely followed index.
Both these indices are calculated on the basis of market capitalization and
contain the heavily traded shares from key sectors.

                               The markets are closed on Saturdays and Sundays.
                       Both the exchanges have switched over from the open
                       outcry trading system to a fully automated computerized
                       mode of trading known as BOLT (BSE On Line Trading)
                       and NEAT (National Exchange Automated Trading)
                       system. It facilitates more efficient processing, automatic
                       order matching, faster execution of trades and
                       The scrip traded on the BSE has been classified into ‘A’,
‘B1’, ‘B2’, ‘C’, ‘F’, and ‘Z’ groups. The ‘A’ group shares represent those, which
are in the carry forward system (Badla). The ‘F’ group represents the dept
market (fixed income securities) segment. The ‘Z’ group scrip is the
blacklisted companies. The ‘C’ group covers the odd lot securities in ‘A’,
‘B1’, & ‘B2’ groups and Rights renunciations. The key regulator governing
Stock Exchanges, Brokers, Depositories, Depository participants, Mutual
Funds, FIIs and other participants in Indian secondary and primary market
is the Securities and Exchange Board of India (SEBI) Limited.

 Financial Market
    The Money Market refers to the market where borrowers and lenders
exchange short-term funds to solve their liquidity needs.

      The Capital Market is a market for financial investments that are
direct or indirect claims to capital (Gart, 1988).

      It    refers      to     the    markets     for    those    financial
instruments/claims/obligations that are commonly and readily
transferable by sale. It has two inter-dependent and inseparable segments,
the new issues (primary) market and the stock (secondary) market.

  Primary Market
  Securities generally have two stages in their lifespan. The first stage is
  when the company initially issues the security directly from its treasury
  at a predetermined offering price. This is a primary market offering. It is
  referred to as the Initial Public Offering (IPO). In Primary market,
  securities are offered to public for subscription for the purpose of
  raising capital or fund.

  Secondary Market
  Secondary market refers to a market where securities are traded after
  being initially offered to the public in the primary market and listed on
  the Stock Exchange. Majority of the trading is done in the secondary
  market. Secondary market comprises of equity markets and the debt

 Company Profile of Microsec
   Microsec endeavors to provide services in the arena of Financial
Services which includes Equity & Derivatives Trading on NSE and
BSE, Commodities Trading on MCX & NCDEX, Investment Banking,
Insurance, Depository Services, Portfolio Management Services, Mutual
funds-SIP, Mediclaim.

Microsec Capital Limited has its principal offices in Kolkata and Mumbai
with another 250(app.) business locations in 49 Indian Cities/Towns in 13
States. It is an ISO 9000 Certified Process.


Microsec Capital Limited is a member of National Stock Exchange of India
and Bombay Stock Exchange and is in the business of distribution of
financial savings products to its clients.

Microsec Group provides services to a wide range of clients. In order to
keep the pace going we have developed our equity broking team which is
equipped with research team, relationship manager, dealers and round the
clock back office.

Microsec add value to people by:

     Providing data source from Bloomberg

     Research Team

     Online Back office support

     Transaction mailed on daily basis & also through SMS.

     Margin Trading

     Man to man interaction

     In house DP


    Equity & Derivatives Trading on NSE and BSE

    Commodities Trading on MCX & NCDEX

    Investment Banking

    Insurance

    Depository Services

    Portfolio Management Services

    Mutual funds-SIP

    Mediclaim


       De-mat account is a safe and convenient means of holding securities
just like a bank account is for funds. Today, practically 99.9% settlement (of
shares) takes place on De-mat mode only. Thus, it is advisable to have a
Beneficiary Owner (BO) account to trade at the exchanges.

Benefits Of De-mat Account:
   1. A safe and convenient way of holding securities. (equity and debt instruments
   2. Transactions involving physical securities are costlier than those involving
       dematerialized securities (just like the transactions through a bank teller are
       costlier than ATM transactions). Therefore, charges applicable to an investor are
       lesser for each transaction.
   3. Securities can be transferred at an instruction immediately.
   4. Increased liquidity, as securities can be sold at any time during the trading hours
       (between 9:00 AM to 3:30 PM on all working days), and payment can be received
       in a very short period of time.
   5. No stamp duty charges.
   6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with
       physical certificates, are eliminated.
   7. Pledging of securities in a short period of time.
   8. Reduced paper work and transaction cost.
   9. Odd-lot shares can also be traded (can be even 1 share).
   10. Nomination facility available.
   11. Any change in address or bank account details can be electronically intimated to
       all companies in which investor holds any securities, without having to inform
       each of them separately.
   12. Securities are transferred by the DP itself, so no need to correspond with the
   13. Shares arising out of bonus, split, consolidation, merger etc. are automatically
       credited into the De-mat account of the investor.
   14. Shares allotted in public issues are directly credited into De-mat account of the
       applicants in quick time.

Is a demat account a must?
Now a day, practically all trades have to be settled in dematerialized form.
Although the market regulator, the Securities and Exchange Board of India
(SEBI), has allowed trades of up to 500 shares to be settled in physical form,
nobody wants physical shares any more. So a de-mat account is a must for
trading and investing.

Different Players in the Industry

        Activation and other Charges of firms

                 A/c     Brokerage       AMC          Trading    Interest   Debit    Mode of   Margin     Software
 COMPANY       Opening   (Intraday,                  Exposure      Rate     Period   Trading   Money        used
               Charges   Delivery)

 Microsec       NIL       3p,30p      Rs350pa        5 times      18%        T+2     Online/   Rs5000       NOW
Capital Ltd                                                                          Offline

                NIL       5p,50p      1st yr free,   4-6 times    19%        T+4     Online/   Rs5000
Sharekhan                                2nd yr                                      Offline

               Rs750     50p,75p      Rs500pa        3-4 times    18%        T+2     Online/     NIL       Accesed
ICICI Direct                                                                         Offline             through net

               Rs900       3-4p,         NIL         4-5 times    17%        T+2     Online/     NIL       Power
Indiabulls                30-40p                                                     Offline             India Bulls

  Angel        Rs660      3p,20p        Rs225        4-6 times    18%        T+2      Both     Rs5000
 broking                                                                             online/   /10,000

Data Analysis

Primary Data collection

   Structured questionnaire for customer.

Secondary Data Collection

   Journals

   Websites

   News papers

Research Approach

   Descriptive approach

Techniques to be used in Research Approach

   Survey and Interview

Data Findings

   Total Sample Size :    82

         Male :     47

         Female :    35

   Online/Offline Trading

                          Total Sample(82)


                            78.04%           offline(18)

 Investment Product Preference


 Mode Of Awareness


 Preference for Broking Firm


                    Factors while choosing a Broking firm

FACTORS         1            2             3             4             5

Low                 2.44%        14.63%        31.7%         39.02%        12.2%
Better cust.
service              0           1.21%         23.17%        37.8%         20.73%

Brand loyalty
                     3.65%       7.31%         19.51%        40.24%        29.26%
Money               2.44%        4.87%         31.7%          43.9%        17.07%
Good trading
Tips                1.21%        6.1%          35.36%         30.48%       26.82%
Research             0%          13.41%        45.12%         29.26%       12.2%
Friends refer       1.21%        17.07%         45.12%        26.82%       9.75%

 According to the data that have been collected all the people who were
  surveyed are aware of share market and trading.

 Survey shows that the nearly 79% people prefer the online trading
  rather than that of offline trading through broker.

 People like to invest more in equity rather than other investment sectors.

 The best preferred broking firm among the people is ICICI direct with
  22% rather than other broking firms.

 Friends, News paper and Internet are the most preferred mode for
  awareness of the broking firms and share trading


1. Are you interested in share trading?
    a) Yes              b) No

2. Which mode of trading would you prefer?
   a) Online  b) Offline

3. Which type of product do you invest in?
   a) Mutual fund b) Equity c) Commodity d) Insurance e) Others

4. If you trade in future, which broking firm would you prefer?

    a) Share khan b) India Bulls c) Angel broking d) ICICI Direct e) Microsec f) Others

5. How did you come to know about the broking firm?
   a) Newspaper b) Journals c)TV Advertisement d) Friends e)Internet f) Others

6. How important do you think these factors influence in choosing a broking firm?
    (Select one)

        a) Low brokerage

             Not very important    1       2       3        4       5 Extremely important

        b) Better customer service

              Not very important      1     2        3          4    5 Extremely important

        c) Brand loyalty

             Not very important    1       2       3        4       5 Extremely important

        d) Margin money

             Not very important    1       2       3        4       5 Extremely important

        e) Good trading tips

             Not very important    1       2       3        4       5 Extremely important

        f)   Timely research report

             Not very important    1       2       3        4       5 Extremely important

        g) Friends recommendations

             Not very important    1       2       3        4       5 Extremely important

NAME:                                AGE:




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