INTRODUCTION:

It is widely believed that stock market is related to macroeconomic fundamentals of

an economy, as companies that are listed for trading in stock exchanges are the Ones
who contribute significantly to the economy's growth .Ever since the turn of the
century; world stock markets have been very volatile. In other words there have been
significant movements (up or down) in share prices. This phenomenon has been
evidenced by the collapse in recent years of the share prices of the companies. The
current world political situation is probably the worst as it is for many years. World
markets are falling at a rapid pace. What does beta factor analysis teach us about an
investment strategy in this situation? Firstly, however good a company is it likely that
in such circumstances most will encounter falls in their share price. The beta of an
investment is a relative measure of the systematic risk of an investment. In other
words it measures the specific risk of the company's shares relative to the market as a
whole. In general, the sign of the beta indicates whether, on average, the investment's
returns move with the market or in the opposite direction to the market. The scale or
value of the beta indicates the relative volatility of the particular stock. However
during this time a number of alternative investments that have negative beta factors
have appreciated in value. The prime example of this is gold. However in the past few
years it is noticeable that in the political uncertainty that has arisen in the world that
the price of gold has shown material gains at a time when equity markets have
recorded sharp falls.

COMPANY PROFILE
ShareKhan Ltd is one of the leading retail stock broking house of SSKI Group which
is running successfully since 1922 in the country. It is the retail broking arm of the
Mumbai-based SSKI Group, which has over eight decades of experience in the stock
broking business. Sharekhan offers its customers a wide range of equity related
services including trade execution on BSE, NSE, and Derivatives, depository services,
online trading, investment advice etc. the firms online trading and investment site
www.sharekhan.com- was launched on Feb 8, 2000. The site gives access to superior
content and transaction facility to retail customers across the country. Known for its
jargon-free, investor friendly language and high quality research, the site has a
registered base of over one lakh customers. The content rich and research oriented
portal has stood out among its contemporaries because of its steadfast dedication to
offering customers best of breed technology and superior market information. The
objective has been to let customers make informed decisions and to simplify the
process of investing in stocks.
On April 17, 2002 Sharekhan launched speed trade, a net-based executable
application that emulates the broker terminals along with host of other information
relevant to the day traders. This was for the first time that a net-based trading station
of this caliber was offered to the trader. In the last six months speed trade has become
a de facto standard for the Day Trading community over the net.
Sharekhans ground network includes over 750 centers in 280 cities in India which
provide a host of trading related services.
Sharekhan has always believed in investing in technology to build its business. The
company has used some of the best-known names in the IT industry, like Sun
Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,
VeriSign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its
trading engine and content. The Morakhiya family holds a majority stake in company.
HSBC, Intel and Carlyle are the other investors. With a legacy of more than 80 years
in the stock markets, the SSKI is one of the leading players in institutional broking
and corporate finance activities. SSKI holds a sizeable portion of the market in each
of these segments. SSKIs institutional broking arm accounts for 7% of the market for
Foreign Institutional portfolio investment and 5% Domestic Institutional portfolio
investment in the country and it has 60 institutional clients spread over India, Far
East, UK and US. Foreign Institutional Investors generate about 65% of the
organizations revenue, with a daily turnover of over US$ 2 million. The Corporate
Finance section has a list of very prestigious clients and has many firsts to its credit,
in terms of the size of deal, sector tapped etc. the group has placed over US$ 1 billion
in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat
Pipavav, Essar, Hutchison, Planet Asia and Shoppers Stop.


Achievements of ShareKhan
A Rated among the top 20 wired companies along with Reliance, HUJI, Infosys, etc.
by Business Today, January 2004 edition.
Awarded Top Domestic Brokerage House four times by Euro money and
Asia money.
Pioneers of online trading in India amongst the top 3 online trading websites
from India. Most preferred financial destination amongst online broking
customers.
Winners of Best Financial Website award.
Indias most preferred brokers within 5years. Awaaz customers Award
2005.
Future Plans:
2, 00,000 plus retail customers being serviced through centralized call
centers/web solutions.
Branches/Semi branches servicing affluent/aggressive traders through high
skill financial advisor.
250 independent investment managers/franchisee servicing 50,000 highly
valued clients.
New initiatives Portfolio management Services and commodities trading.


PROFILE OF THE COMPANY
Name of the Company : ShareKhan ltd.
Year of Establishment : 1925
Headquarter : ShareKhan SSKI
A-206 Phoenix House
Phoenix Mills Compound
Lower Pare Mumbai-
Maharashtra, INDIA- 400011
Nature of Business : Service Provider
Services : Depository Services, Online
Trading, Mutual Fund, IPOs,
PMS and Technical Research
Number of Employees : 2800
Turnover : ` 10000 corers daily
Offices : More than 640 out l280cities
Clients: Demat A/c : 112000
Trading A/c : 110000
Working Capital : More than 3200 corers
Special Features : ShareKhan Classic Account
ShareKhan Trade Tiger Account
Dial-n-Trade
Website : www.sharekhan.com
Slogan : Youre Guide to The Financial
Jungle
Vision
To be the best retail broking Brand in the retail business of stock market
Mission
To educate and empower the individual investor to make better investment decisions
through quality advice and superior service.
The ShareKhan provides its Customers First Step program, built specifically for all
investors, so treatment is-
Your Guide To The Financial Jungle means Our commitment to being your
guide throughout your investing lifecycle the institutional broking arm of SSKI was
also awarded Indias best broking house for 2004 by Asia Money brokers poll
recently and it has also won the prestigious Awaaz Consumer Vote Awards 2005 for
the Most Preferred Stock Broking Brand in India, in the investment Advisors
category.
They have 650 share shops across 280 cities in India to get a host of trading related
services- our friendly customer service staff will also help with any account related
queries.
ShareKhan won the award by the vote of consumers around the country, as part of
Indias largest consumer study cover 7000 respondents- 21 products and services
across 21 major cities. The study, initiated by Awaaz- Indias first dedicated
Consumers Channel and member of the worldwide CNBC Network and AC Nielsen-
ORG Marg, was aimed at understanding the brand preferences of the consumers and
to decipher what are the most important loyalty criteria for the consumer in each
vertical.
The reasons behind the preferences for brands were unveiled by examining the
following:
Tangible features of product/service.
Softer, intangible features like imagery, equity driving preference.
Tactical measures such as promotional/pricing schemes.
ShareKhan is infact-
Among the top 3 branded retail service providers.
No 1 player in online business.
Largest network of branded broking outlets in the country serving more than
7, 00,000 clients.
Brand Name
The company as a whole in its offline business has named itself as SSKI Securities
Private Limited- Shripal Sevantilal Kantilal Ishwarlal Private Limited. The company
has preferred to name themselves under a blanket family name. But, in its online
division started since 1997, the company preferred to name itself as SHAREKHAN
itself suggests the business in which the company is dealing so that the customer
could easily identify the product or service category.
Role of ShareKhan
Interface between the stock exchange and the investor
Assistance to investors in precise allocation of funds.
Building awareness amongst general public about stock market.
Core Services of ShareKhan
As a ShareKhan customer you can decide the channel through which you want to
receive different Services.













Fig No: 3.1
Equity and
Derivatives Trading
Depository
Services
Online Services
Commodities
Trading
Dial-N-Trade
Portfolio
Management
Share shops
Fundamental
Research
Technical Research
SHAREKHAN
SIMPLYFING IT
ALL FOR YOU
Other Services Provided By ShareKhan
Online Services
Offline Services
Derivatives Services: Demat & Remat Transactions
Derivatives Trading (Futures and Options)
Commodities Trading
IPOs and Mutual Funds Distribution
Fundamental Research
Technical Research
Portfolio Management
Free access to investment advice from Share Khans Research team
ShareKhan Value Line (a monthly publication with reviews of
recommendation, stocks to watch out for etc.)
Daily research reports and market review (High Noon & Eagle Eye)
Pre-market Report (Morning Cuppa)
Daily trading calls based on Technical Analysis
Cool trading products (Daring Derivatives and Market Strategy)
Personalized Advice
Live Market Information
Internet-based Online Trading: Speed Trade
Online Services
Online BSE and NSE executions (through BOLT & NEAT terminals)
Mutual Funds
Commodity Futures
PMS (Portfolio Management Services)
Demat Services
Share Shops
Offline Services
Trading with the help of Dealer
Trading without credit
By calling to the share shops
Credit facility (only in Delivery-based)
Special website for Offline Clients: www.mysharekhan.com
Physical contract notes
The company provided mainly two types of services to their customers for the Demat
Accounts.
Online Account
In the Online account, the company simply provides the terminal to the
customers or clients and the clients can do trading himself/herself when he/she
wants. The charges of offline account is Rs.750/-, which is varies from
company to company. Online accounts are most popular than the offline
accounts. In online accounts, the company provides 3 types of facilities to
their clients as per the requirements:
Classic Accounts
Trade Tiger Accounts
Dial- n Trade
Classical Accounts:
In this account, it is very simple to do trading. Here customer has first to open Demat
account with ShareKhan and after opening an account he can get login ID and
password. With the help of login ID and password, the client can login to the
ShareKhan.com and in the classic a/c whatever companys information the clients
wants, he has to type the companys name or code and he will get all the necessary
information about that company and he can buy or sell the that companys stock or
shares. But, here in the classical account the client can access only one scrip at a time.
Features of Classical Account
Classical account enables you to buy and sell shares through our website. You get
features like:
Online trading account for investing in Equities and Derivatives via
ShareKhan.com
Integration of : Online trading + Bank + Demat account
Instant cash transfer facility against purchase and sale of shares
Make IPO bookings
You get Instant order and trade confirmations by e-mail
Streaming quotes
Personalized Market Scan with your own customized stock triker
Single screen interface for cash and derivatives
Portfolio tracker

Trade Tiger Account
Earlier it was known as Speed Trade and now it is known Trade Tiger. This account is
same as fast trade account. But, difference between these two accounts is that in the
Trade Tiger Account the client can access unlimited scrips at a time and buy and sell
the share from whenever they want. This account also provides the charts and graphs,
so that the clients can easily understand about the stock of the company. This is only
for big clients and dealer kind of customers. This account is mainly for active traders
who trade frequently during the trading session.
Features of Trade Tiger Account:
A single platform for multiple exchange BSE and NSE, MCX, NCDEX,
Mutual Funds, IPOs
Multiple Market Watch available on Single Screen
Multiple Charts with Tick by Tick Intraday and End of Day Charting powered
with various studies
Graph studies include Average, Brand Bollinger, Know Sure Thing, MACD,
RSI etc.
Apply studies such as Vertical, Horizontal, Trend, Retracement and free lines
User can save his own defined screen as well as graph template that is, saving
the layout for future use.
User defined alert settings on an input Stock Price trigger.

Dial-n-Trade
Features:
Two dedicated numbers for placing orders with cell phone or landline. Toll
free number: 1-800-22-7050.
Simple and Secure interactive voice response based system for
authentication.
No waiting time. Enter the PIN to be transferred to telebrokers
Offline Account
This is simple way to do trading. In the offline account, the client can place the order
by telephone or through personal visit in office. The client who is very busy in their
jobs or business, they can directly place order by the telephone or the client who are
not much busy; they can come to the office of ShareKhan.
ShareKhan also provide the Dial-n-Trade service to their customers. So that
customers can directly place the order by the telephone.
Demat Account Opening and Brokerage Charges
Table No. 3.1: Fee structure for General Individual
Charges Classical Account Trade Tiger Account
Account Opening Charges ` 750/- ` 1000/-

Brokerage
Intra-day: 0.10%
Delivery : 0.50%
Intra-day : 0.10%
Delivery : 0.50%

Annual Maintenance Charges
` NIL first year
` 400/= p.a. from second year
onwards


For Intra-day Trades
This is subject to a minimum brokerage of 5 paisa per share. This means that if
the share price you trade in `50/- or less, a minimum brokerage of 5 paisa per
share will be charged.
For Delivery Based Trades
This is subject to a minimum brokerage of 10 paisa per share. Minimum
brokerage of 10 paisa per share will be applicable when the share price is `
20/- or less.
Share Mobile
ShareKhan launches Share Mobile, an exclusive live streaming quotes and
trading facility for its online trading customers.
A person can carry stock market terminal with him anywhere anytime.
ShareKhan brings a freedom of being mobile where it is so easy with share
mobile to track favorite stocks price movement tick-by-tick
How Share Mobile empowers
Live tick by tick stock price
Latest news headlines
Track My Trade Portfolio investment
Live Research Fundamental and Trading Calls
ShareKhan Depository Services
ShareKhan Depository Services offers dematerialization services to individual and
corporate investors. ShareKhan as a team of professionals and the latest technological
expertise dedicated exclusively to Demat department, apart from a national network
of franchisee, making the services quick, convenient and efficient.
Trading in Commodity Futures
It provides with facility to trade in commodities (Bullion: Gold, silver and agricultural
commodities) through a wholly owned subsidiary of its Parent SSKI. ShareKhan is a
member of two Commodity Exchange and offers trading facility at both these
exchanges:
o Multi Commodity Exchange of India (MCX)
o National Commodity and Derivative Exchange, Mumbai (NCDEX)
Software (Technology) used in ShareKhan
ShareKhan is using different technology for the running of their daily transactions.
Mainly for the trading, the companies using three software are:
ODIN (VSAT Based)
Trade Tiger (WEB Based)
Classic/Fast Trade (WEB Based)
And also NEAT System used for making transaction in NSE listed company and same
way BOLT System used for making transaction BSE listed company. For the client
information or customer service, the company using 2 software:
CIS Client Information System
BOC Back Office.

Management Team
Mr. Dinesh Morakhia Owner of the company
The ShareKhan Group of Companies was brought to life by Mr. Dinesh Morakhia. He
ventured into stock trading with an intention to raise capital for his own independent
enterprise. However, he recognized the opportunity offered by the stock market to
serve individual investors. Thus, Indias first retail-focused stock-broking house was
established in 1925. Under his leadership, ShareKhan became the first broking house
to embrace new technology for faster, more effective and affordable services to retail
investors.
Mr. Tarun Shah Chief Executive Officer
A science graduate from St. Xaviers College, Mumbai and Mr. Tarun Shah started
his professional life in sales and marketing in a chemicals company. His hands on
approach and rigorous experience in sales led him to higher challenges that the capital
markets provided.
In 1987, he joined SSKI, a brokerage firm with over five decades of legendary service
to its credit. The capital markets at that time was undergoing a sea change in its
character and SSKI under the vision and guidance of Shripal Morakhia and the
commitment and hardwork of Mr. Shah was able to change and adopt the new
business practices to achieve significant growth in a competitive environment.
Accepting new challenges is a way of life for Mr. Tarun Shah. To ensure that SSKIs
foray into retail stock broking through ShareKhan meets with the same success every
other SSKI venture has, Mr. Tarun Shah moved in to spearhead this new effort as
CEO of the ShareKhan.
Mr. Shankar Vailaya Director (operations) of the company
A graduate in commerce from the University of Mangalore and an Associate of The
Member of the Institute of Chartered Accountants of India, Mr. Shankar Vailaya
heads the operations, finance and legal functions. He is responsible for settlements,
depository operations, risk and compliance and regulatory and other commitments
and Treasury.
Shankar has managed broking operations through the most turbulent times of the post
securities scam period in 1922 and has managed to steer clear of a flurry of bad papers
in the market during 1994-95.
Mr. Jaideep Arora Director (Products & Technology) of the company
Jaideep Arora completed his B.Tech from IIT (Kanpur) and his PGDM from IIM
Kolkata. Jaideep worked with ICICI for 8 years where his work spanned a gamut of
functions, which included project finance, equity sales and brokerage, investments
etc. during his tenure there he set up and headed the Institutional Equity Brokerage
Desk at ICICI Securities and Finance Co. Ltd.
Jaideep joined ShareKhan in June 2000 as Head of Product Development. A year later
he took over the reins of the business at ShareKhan. At present Jaideeps
responsibilities include spearheading ShareKhans online foray and overall customer
acquisition effort.
Pathik Gandotra : Head of Research
Rishi Kohli : Vice President of Equity Derivatives
Nikhil Vora : Vice President of Research
Reason to Choose ShareKhan Limited
Experience
SSKI has more than eight decades of trust and credibility in the Indian stock market.
In the Asia Money brokers poll held recently, SSKI won the Indias Best Broking
House for 2004 award. Ever since it launched ShareKhan as its retail broking
division in February 2000, it has been providing institutional level research and
broking services to individual investors.
Technology
With its online trading account one can buy and sell shares in an instant from any PC
with an internet connection. One can get access to its powerful online trading tools
that will help him take complete control over his investment in shares.

Accessibility
ShareKhan provides ADVICE, EDUCATION, TOOLS and EXECUTION services
for investors. These services are accessible through its centers across the country over
the internet (through the website www.sharekhan.com) as well as over Voice tool.
Knowledge
In a business where the right time can translate into direct profits, one can get access
to a wide range of information on ShareKhan Limiteds content-rich portal. One can
also get a useful set of knowledge-based tools that will empower him to take informed
decisions.
Convenience
One can call its Dial-N-Trade number to get investment advice and execute his
transactions. ShareKhan ltd. has a dedicated call-center to provide this service via a
Toll Free Number 1800-22-7500 & 1800-22-7050 from anywhere in India.
Customer Service
ShareKhan Limiteds customer service team will assist one for any help that one may
require relating to transactions, billing, demat and other queries. Its customer service
can be contacted via a toll-free number, email or live chat on www.sharekhan.com.
Investment Advice
ShareKhan has dedicated research teams of more than 30 people for fundamental and
technical researches. Its analysts constantly track the pulse of the market and provide
timely investment advice to its clients in the form of daily research emails, online
chat, printed reports and SMS on their mobile phone.

INDUSTRY ANALYSIS

Indian Stock Market- An Introduction:
The investment scenario in India is now is at par with global Market. The introduction
of Derivative, Currency, Commodity market now helped the Indian Investor to Invest
in almost anything like Share, Commodity, Currency, Bonds and complex thing like
Interest rate future, Weather Derivative, Volatility Index and more and Stock market
The Indian Equity market is divided in to two parts Primary market - where the share
is first issued in the form of IPO(Initial Public Offering) and after issuing the share it
is listed on exchange and share is traded on exchange where shares can be bought and
sold this is secondary market. In India mainly there are two exchanges -NSE
(National Stock Exchange) BSE-Bombay Stock Exchange. The BSE is the oldest
exchange in India(started in 1875).NSE started operation on 1994.Before 2000 shares
was held in Physical form But the main difficulty with Physical shares is method of
transaction which is open outcry system and process is not transparent to investor also
Physical shares were prone to duplication and fraud. So in 2000 NSE introduced the
electronic screen based trading system further the introduction of Dematerialization
(Conversion of physical share in to electronic form) and depository(where the
electronic form of share is kept) revolutionized the Indian Stock market. Currently
there are mainly two Depository (DP) -NSDL and CDSL and these DP are like bank
of share. Individual/Firm can deal through Broker (who is registered and having
membership in Exchanges and Depository) for buying and selling securities. Today
NSE outpaced BSE in volume of trade. Then what is the purpose of stock market?
Stock market serves the company by providing company the finance for long term
needs and for investor an opportunity to park their savings in corporate world and in
turn give their hand in Nation's development so stock exchange have a very vital role
in country's economic development .To buy the shares investor has to open a trading
and demat account. So investor has to approach a broker/sub broker who has member
ship in Exchange (where the share is listed mainly NSE and BSE) and
depository(where share is kept in Demat form-Electronic form[mainly CDSL and
NSDL).Then Investor has to give necessary identity proof, Address proof, Bank proof
and fill the KYC form after reading it carefully. Broker will ask for power of attorney
for smooth transaction but this is not mandatory and if POA is not given investor had
to fill the delivery instruction slip after selling the share. After opening the account
the investor can do trading/investing Directly, Through Phone Internet form broking
office and he will contract note(similar to bill that we got when we purchase
something and contract note include all minute detail of transaction including
brokerage[commission of briking house] STT and Other taxes) for the transaction
done by him within 24 hr of transaction and he has to give cheque to Broker in the
name of broking office(no cash transaction is permitted) and current settlement is
rolling settlement (The rolling settlement ensures that each day's trade is settled by
keeping a fixed gap of a specified number of working days between a trade and its
settlement. At present, this gap is 3 working days after the trading day. So transaction
entered into on Day 1 has to be settled on the Day 1 + 3 working days, when funds
pay in or securities pay out takes place. If investor is selling the security he will get
money in 3 working days. If investor failed to deliver the security within time his
share will get auctioned and investor has to borne the penalty. If the investor has old
physical share he can fill the dematerialization form and send it for converting it to
demat form. The reverse can also be done. Now hope investor had learned about the
exchanges and demat. Everyone had heard about SENSEX and NIFTY what is this?
SENSEX and NIFTY are Index of BSE and NSE Blue chip share. SENSEX consists
of 30 shares and NIFTY 50 shares (of top most companies) what is the purpose of
INDEX? Index is the barometer of stock exchange for ex in NSE there are about 1350
listed companies listed and we cannot say in general form market was up or down
without fully looking all companies. INDEX serves this purpose. INDEX is
constructed by taking top companies across different sector in different weightage and
INDEX movement will reflect the overall movement of market. So if NIFTY or
SENSEX is up we can generally assume market was up(does not mean all shares was
up) and vice versa. Now there are index in some sectors which can catch the
movement of that sector like CNXIT-IT sector, BANKNIFTY-Banking sector etc.
General purpose of Stock Market is for Investment but bulk of activities done in
market is day trading. Day trading means BUYING/SELLING of shares and
offsetting the position on same day. Day traders serves the purpose of bringing the
liquidity to market and they help the market movement and more than 80% of the
volume from market is coming from day trading. Introduction of derivative market
had made the day trading to grow more and introduction of advanced day trading
technique. The main tool for Stock market investment/trading are Fundamental
analysis -which studies about the fundamental of companies and economy and
Technical Analysis-which studies the market by analysing the past movement of share
and market are giving various product to invest in with various amount of risk like
bonds, Gold ETF, Equitys and Preference Share, Commodities (metal and
Agriculture) Currency to high risk Derivative product.
GDP contribution of stock market to the economy:
However, as a result of the financial crisis of 20072010, coupled with a poor
monsoon, India's gross domestic product (GDP) growth rate significantly slowed to
6.7% in 200809, but subsequently recovered to 7.4% in 200910, while the fiscal
deficit rose from 5.9% to a high 6.5% during the same period. Indias current account
deficit surged to 4.1% of GDP during Q2 FY11 against 3.2% the previous quarter.
The unemployment rate for 20092010, according to the state Labour Bureau, was
9.4% nationwide, rising to 10.1% in rural areas, where two-thirds of the 1.2 billion
populations live.
India's large service industry accounts for 57.2% of the country's GDP while the
industrial and agricultural sectors contribute 28.6% and 14.6% respectively.
Agriculture is the predominant occupation in India, accounting for about 52% of
employment. The service sector makes up a further 34% and industrial sector around
14%. However, statistics from a 2009-10 government survey, which used a smaller
sample size than earlier surveys, suggested that the share of agriculture in
employment had dropped.

Definition of a stock exchange:
Stock exchange means anybody or individuals whether incorporated or not
constituted for the purpose of assisting, regulating or controlling the business of
buying selling or dealing in securities. The securities include:
Shares of public company.
Government securities.
Bonds

HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200
years ago. The earliest records of security dealings in India are meager and obscure.
By 1830's business on corporate stocks and shares in Bank and Cotton presses took
place in Bombay. Though the trading list was broader in 1839, there were only half a
dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's
witnessed a rapid development of commercial enterprise and brokerage business
attracted many men into the field and by 1860 the number of brokers increased into
60. In 1860-61 the American Civil War broke out and cotton supply from United
States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of
brokers increased to about 200 to 250. However, at the end of the American Civil
War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which
had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil
War, the brokers who thrived out of Civil War in 1874, found a place in a street (now
appropriately called as Dalal Street) where they would conveniently assemble and
transact business. In 1887, they formally established in Bombay, the "Native Share
and Stock Brokers' Association" (which is alternatively known as "The Stock
Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it
was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of exchanges were
increased and at currently it reached to the figure of 24 stock exchanges.

IMPORTANT FUNCTION OF STOCK EXCHANGE ARE AS FOLLOWS
(1) Providing Liquidity and Marketability To Existing Securities: Stock
exchange is a market place where previously issued securities are traded.
Various types of securities are traded here on regular basis. Whenever
required, an invest his money through this investment cash. Availability of
ready market for sale and purchase of securities increase their marketability
and enhances liquidity.

(2) Pricing Of Securities: A stock exchange provides platform to deal in
securities. The forces of demand and supply work freely in the stock
exchange. In this way, prices of securities are determined.

(3) Safety of Transaction: Stock exchanges are organized markets. They fully
protect the interest of investors. Each stock exchange has its own laws and
bye-laws. Each member is found violating them, his membership is cancelled.
For instance, if any broker working in stock exchange charges more
commission than stipulated from any investors or misleads him in any other
way, then the management committee of the stock exchange can fine the
broker and even his membership can be cancelled.

(4) Contributes To Economic Growth: A stock exchange provides liquidity to
securities. This gives the investor a double benefit-first, the benefit of the
change in the market price of securities can be taken advantage of, and
secondly, in case of need for money they can be sold at the existing market
price at any time. These advantage provided by the share market encourage
the people to invest their money in securities. In this way, peoples money gets
invested and economic development becomes possible.

(5) Spreading Equity Cult: share market collects every type of information
(more particularly about their economic condition) in respect of the listed
companies. Generally, this information is published or in case of and anybody
can get it from the stock exchange free of any cost. In this way, the stock
exchange guides the investors by providing various types of information.
Consequently, the number of shareholders in companies is increasing
continuously. Thus, the stock exchanges are playing a vital role in ensuring
wider share ownership.

(6) Providing Scope for Speculation: when securities are purchased with a
view to getting profit as a result of change in their market price, it is called
speculation. It is allowed or permitted under the provisions of the relevant act.
It is accepted that in order to provide liquidity to securities, some scope for
speculation must be allowed. The share market provides this facility.

A Stock Brokerage Firm
A brokerage firm, or simply brokerage, is a financial institution that facilitates the
buying and selling of financial securities between a buyer and a seller. Brokerage
firms serve a clientele of investors who trade public stocks and other securities,
usually through the firm's agent stockbrokers. A traditional, or "full service",
brokerage firm usually undertakes more than simply carrying out a stock or bond
trade. The staffs of this type of brokerage firm is entrusted with the responsibility of
researching the markets to provide appropriate recommendations and in so doing they
direct the actions of pension fund managers and portfolio managers alike. These firms
also offer margin loans for certain approved clients to purchase investments on credit,
subject to agreed terms and conditions. Traditional brokerage firms have also become
a source of up-to-date stock prices and quotes.
1. Identification
o The Securities and Exchange Commission describes brokerages as fiduciaries that
execute financial transactions on your behalf. This fiduciary responsibility calls for stock
brokerage firms to act within your best interests in regards to making investment
recommendations. Brokerages manage and administer trading accounts, but do not
actually own any of the securities within your account.
Brokerages use information technology to match buyers and sellers together within
financial markets. Stock markets function as large auctions, where traders make bids and
negotiate prices for investments. Brokerages handle the buying and selling stock
transactions for their clients.


2. Features
o Stock brokerage firms are categorized as being either full service or discount brokerages.
Full service brokers are financial advisers that put together comprehensive plans for your
investment portfolio, insurance coverage, and cash management strategy. They may
charge by the hour, or take a percentage of the assets under management as
compensation.
Alternatively, discount brokers simply execute transactions to trade securities, without
offering any advice. Discount brokers, such as Scottrade, Ameritrade and eTrade, are
associated with a prominent online presence and low trading commissions of less than ten
dollars per order. Discount brokers are ideal for economical consumers that prefer to
conduct their own investment research and make trades using their personal computers on
the Internet.

3. Benefits
o Brokerages lower costs by introducing liquidity to financial markets. Liquidity describes
the process of converting assets into cash. Without brokerages, investors would be forced
to spend time and money either actively soliciting trading partners or buying $1 million
memberships at financial exchanges. Instead of incurring these expenses, investors may
open brokerage accounts to buy and sell shares of stock for the relatively minimal costs of
trading commissions. Stocks can be sold for cash through brokerage networks within
seconds.
Considerations
o Stock brokerage firms often operate as dealers who trade securities for the company's
own account. Investment companies must disclose any potential conflict of interest from
these situations to their clientele. For example, your brokerage firm may recommend that
you buy shares of stock from the in-house inventory that the firm actually owns. In this
case, your broker must indicate that it is negotiating the transaction as a dealer.
Warning
o The Securities and Exchange Commission highlights phishing scams as a threat to online
trading. Phishing is associated with identity theft, where criminals steal your account
information to make unauthorized trades and balance transfers. When using a personal
computer to trade stocks, log onto your broker's website by physically typing in their
website address in your browser's navigation bar, and never log in by responding to a link
from an email, as this may be a phishing scam and lead you to a site that appears to be the
legitimate site, but isn't.
Full service accounts are susceptible to "churning" activity. Churning happens when
brokers recommend multiple trades for the sake of earning commissions, instead of
creating wealth for their clients.
Various Stock Exchanges in India:
At present there are 23 stock exchanges recognized under the securities contracts
(regulation), Act, 1956. Those are:
Ahmadabad Stock Exchange Association Ltd.
Bangalore Stock Exchange
Bhubaneswar Stock Exchange Association
Calcutta Stock Exchange
Cochin Stock Exchange Ltd.
Coimbatore Stock Exchange
Delhi Stock Exchange Association
Guwahati Stock Exchange Ltd
Hyderabad Stock Exchange Ltd.
Jaipur Stock Exchange Ltd
Kanara Stock Exchange Ltd
Ludhiana Stock Exchange Association Ltd
Madras Stock Exchange
Madhya Pradesh Stock Exchange Ltd.
Magadha Stock Exchange Limited
Meerut Stock Exchange Ltd.
Mumbai Stock Exchange.
National Stock Exchange of India
OTC Exchange of India.
Pune Stock Exchange Ltd.
Saurashtra Kutch Stock Exchange Ltd.
Uttar Pradesh Stock Exchange Association
Vadodara Stock Exchange Ltd.

Major stock exchanges were:
BOMBAY STOCK EXCHANGE (BSE)
The Bombay Stock Exchange Limited is the oldest stock exchange not only in the
country, but also in Asia with a rich heritage of over 133 years of existence. In the
early days BSE was established as The Native Share and Stock Brokers
Association.
It was established in the year 1857 and became the first stock exchange in the country
to be recognized by the government. In 1956, BSE obtained a permanent recognition
from the government of India under the securities contract (Regulation) Act 1956.
Today, BSE is the world No1 exchange in terms of number of listed companies and
the worlds fifth in handling the transactions through its electronic trading system.
The companies listed on BSE command a total market capitalization of USD Trillion
1.06 as of July 2011. BSE reaches to over 400 cities and town nation-wide and has
around 4937 listed companies; with over 7745 scripts being traded as on 31
st
July
2011.
The BSE Index, SENSEX, is Indias first and most popular stock market benchmark
index. The BSE SENSEX (Sensitive index), also called the BSE 30, is a widely
used market index in India and Asia. Sensex is tracked worldwide. It constitutes 30
stocks representing 12major sectors. The SENSEX is constructed on a free-float
methodology, and is sensitive to market moments and market realities. Apart from the
SENSEX, BSE offers 23 indices, including 13 sectorial indices. BSE provides an
efficient and transparent market for trading in equity, debt instruments and
derivatives.
BSE is the first exchange in India and the second in the world to obtain an ISO
9001:2000 certifications. It is also the first exchange in the country and second in the
world to receive Information Security Management System Standard BS 7799-2-2002
certification for its BSE On-Line Trading System (BOLT). BSE continues to
innovate. In 2006, it became the first national stock exchange to launch its website in
Gujarati and Hindi and now Marathi to reach out to a larger number of investors.
BSE On-Line Trading (BOLT)
BSE On-Line Trading (BOLT) facilities on-line screen based trading in securities.
BOLT is currently operating in 25000 Trader workstations located across over 359
cities in India.

BSE Vision
The vision of Bombay Stock Exchange: To emerge as the premier Indian Stock
Exchange by establishing global benchmarks".
BSE Profile
MD & CEO : Mr. Madhu Kannan
Address : Phiroze Jeejeebhoy Towers, Dalal Street Mumbai-
400001, India
Telephone : 91-22-227212334
Website : www.bseindia.com
Trading Hours : Monday-Friday, 9:15am to 3:30pm
Securities : Stocks, Derivatives and Debt
Trading System : Electronic
Indices of BSE
SENSEX
BSE 100 (This covers Banking Sector)
BSE 200 (This covers Capital Goods)
BSE 500 (This covers Consumer Goods)
BSE mid-cap index
BSE small-cap index
BSE mid-cap index covers the FMCG sector and BSE small-cap index covers the IT,
Metal, Oil & Gas, Power Industry, PSUs etc. BSE disseminates information on the
Price Earnings Ratio, the Price to Book Value Ratio and the Dividend Yield
Percentage on day to day basis of all its major indices.
The values of all BSE indices are updated every 15 seconds during market hours and
displayed through the BOLT system, BSE website and news wire agencies. All BSE
Indices are reviewed periodically by the BSE Index Committee. This committee
which comprises eminent independent finance professionals frames the broad policy
guidelines for the development and maintenance of all BSE Indices. The BSE Index
cell carries out the day to day maintenance of all indices and conducts research on
development of new indices.
Awards Achieved by BSE
The World Council of Corporate Governance has awarded a Golden Peacock
Global CSR Award for BSEs initiatives in Corporate Social Responsibility
(CSR).
ICIA Award for excellence in financial reporting for the year 2006-2007.
BSE has won the Asia-Pacific award HRM awards for its efforts in employer
branding through talent management at work, health management at work and
excellence in HR through technology.

NSE (National Stock Exchange):

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. 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 NSE's mission
is setting the agenda for change in the securities markets in India. The NSE was set-up
with the main objectives of:
Establishing a nation-wide trading facility for equities and debt instruments.
Ensuring equal access to investors all over the country through an appropriate
communication network.
Providing a fair, efficient and transparent securities market to investors using
electronic trading systems.
Enabling shorter settlement cycles and book entry settlements systems, and
Meeting the current international standards of securities markets.
The standards set by NSE in terms of market practices and technology, have become
industry benchmarks and are being emulated by other market participants.NSE is
more than a mere market facilitator. It's that force which is guiding the industry
towards new horizons and greater opportunities.

SWOT ANALYSIS OF SHAREKHAN
Strengths
Online Trading Facility: It is pioneer in online trading with turnover Rs.400
corers and more than 800 peoples working in the organization.
Largest Chain of Retail Share Shops in India
88years of Experience in securities market
Dedicated and responsive workforce/staff
Value added service for HNI client
Research center: ShareKhan has dedicated research teams for fundamental and
technical research. Which constantly track the pulse of the market and provide
timely investment advice free of cost to its clients which has a strike rate of
70-80%
Membership of NSE & BSE
Trading option like Future & Option and Commodities
Volume based differentiated products
Weakness
Localized presence due to insufficient investments for country wide
expansion.
Lack of awareness among customers because of non-aggressive promotional
strategies (print media, newspaper etc.)
Lesser emphasis on customer retention
Focuses more on HNIs than retail investors which results in meager market-
share as compared to close competitors.
Problems due to network crash
Unawareness among Investors

Opportunity
With the booming capital market it can successfully launch new services and
raise its clients base
It can easily tap the retail investors with small saving through promotional
channels like print media, electronic media etc.
As interest on fixed deposits with post office and banks are all time low, more
and more small investors are entering into stock market.
Abolition of long term capital gain tax on shares and reduction in short term
capital gain is making stock market as hot destination for investment among
small investors.
Increasing usage of internet through broadband connectivity may boost a
whole new breed of investors for trading in securities.
Threats
Aggressive promotional strategies by close competitors may hamper
ShareKhans acceptance by new clients.
Lack of sufficient branch-offices for speedy delivery of services.
Other players are providing margin funds to investors on easy terms where as
there is no such facility in ShareKhan.
More and more players are venturing into this domain which can further
reduce the earnings of ShareKhan.