SUMMER PROJECT REPORT

SUBMITTED BY:AMANJAIN
COURSE:PGDM
INSTITUTE:LLOYD BUSINESS SCHOOL
NAME OF INDUSTRY:INDIAINFOLINE
 ACKNOWLEDGEMENT

“Expression of feelings by words makes them less significant when it comes

to make statement of gratitude”
It gives us pleasure to express our most profound regards and sense of great
indebtedness and sincere gratitude to our Company Guide Mr. NandanSir
(Sales Manager, IndiaInfoline ltd. Noida).

We thank further to Mr. Manali mam (Team Manager, IndiaInfoline ltd)for her
cooperation during this period. Last but not least, our sincere thanks to our parents
and friends who directly or indirectly help us to bring this project into the final shape.
 DECLARATION

We, hereby declare that project entitled “COMPAIRTIVE Study Of Broking

Firms“ submitted in the partial fulfillment of the Post Graduate Program in
Finance -Marketing , is of our own accurate work.
We further declare that all the facts and figures furnished in this project
report
are the outcome of our own intensive research and findings.
 INDIAINFOLINE

INTRODUCATION
Exexutive Summary
 India Infoline is the biggest corporate agent
for ICICI Prudential Life Insurance
Insurance Selling is not like selling any other
product. Whileselling thisintangible productwe are actually selling
death benefit, whichmakes it less attractive because customersare
less interested in a product whose
benefitwillbe receivedafter their death
This project deals with spreadingawareness
about the insurance products and generating leads in noida
The steps followed by me were:

Cold calling
Lead generation
Visiting the leads
Pitching the product
Live trading
 INTRODUCATION

IndiaInfolineisaone-stop financial
services shop, most respected for quality ofits advice, personalised
service and cutting-edge technology
 India Infoline Group
The India Infoline group, comprising the holding company,
India Infoline Limited and its wholly-owned subsidiaries,
straddle the entire financial services space with offerings
ranging from Equity research, Equities and derivatives
trading, Commodities trading, Portfolio Management
Services, Mutual Funds,Life Insurance, Fixed deposits, GoI
bonds and other small savings instruments to loan products
and Investment banking. India Infoline also owns and
manages the websitesw w w.ind iainfoline.com and

www.5paisa.com
The company has a network of 976 business locations
(branches and sub-brokers) spread across365 cities andtowns.It has more than 800000o customers.
 India Infoline Media and
Research Services Limited.
The content services represent a strong
support that drives the broking,
commodities, mutual fund and portfolio
management services businesses. Revenue
generation is through the sale of content to
financial and media houses, Indian as well
as global
 India Infoline
Commodities Limited.
India Infoline Commodities Ltd. enjoys
memberships with the MCX and NCDEX,
two leading Indian commodities exchanges,
and recently acquired membership of
DGCX
 HISTORY

We were founded in 1995 by Mr.Nirmal Jain(chairman and managing Director) as an independent

business research and informatin provider.We gradually evolved into a one stop financial services
solutions provider.our strong management term comprises competent and dedicated professionls.

We are a pan Indiafinancial services orgnisation across 1361 business locations and a presence in
428 cities.our global footprint extands across geographies with offices in
NEWYORK;Sinagpore;Dubai.We are listed on the bombay stock exchange(BSE) and the National
stock exchange(NSE).

We offer a wide range of services and products comprising brokings (retail and institutional equities
and commodities),Wealth management ,credit and finance,insurance , assest management
invement banking.
 CONT”D

We are registered with the BSE and NSE for securities trading,MCX NCDEX and
DGCX for commodities trading ,CDSL and NSDL as depositary participants.
We are registered as a categoryI merchant banker and are a SEBI registered portfolio
manager.We also received the FII licence in IIFL Inc.IIFL Securities Pte Ltd received
approval from the monetary authority of singapore to carry out corporate advisory and
dealing in securities operations.Two subsidiaries-
Indiainfoline investment services and moneyline credit limited-are registered with RBI
as non-deposite taking non-banking financial services companies.India Infoline
housing finance Ltd the housing finance arm,is registered with the National Hosing
Bank.
 PRODUCTS AND SERVICES

Equity-Investing in shares market is inarguably the best route to long term wealth
accumulation.However , it can also bea very risky proposition due to high risk – return
trade – off prevalent in the stock market .Hence , it is more appropirate to take help of
an experienced and trustworthy expert who will guide you ad to when , where how to
invest.
India infoline provides guidance in the exciting world of stock market with suitable
trading solutions and value- added tools and services to enhance your trading
experience.
 Derivatives-

The derivative segment is a highly lucrative market that gives investors an

opportunity to earn superlative profits(losses) by paying a nominal amount of
margin.Over past few years ,Future&Options segment has emerged as a popular
medium for trading in financial markets.Future contracts are available on
Equities,Indices .commodities and currency.
 Commodities-

Commodities derivative market emerged as a new avenue for investors to create

wealth. Today,commodities have evolved as the next best option after stocks bonds
for diversifying the portfolio.Based on the fundamentals of demand supply.
Commodities form a separate asset class offering investors arbitrageurs and
speculators immence potential to earn returns.
 LifeInsurance-

Ensure your family’s well being by securing their future with a life insurance policy.No
financial planning is complete without life insurance.Indiainfoline offers an array of life
insurance productslike term plans,endowment plans,money back plans,children life
plans and ULIP plans to meet your individualinsurance.
Mutual Fund-
Investing in a mutual fund is an excellent
Way of diversifying risks as well as portflio.Indiainfoline presents it mutual fund
services that strive to meet all your mutual fund investment needs. We have a wide
spectrum of investment schemes from all top mutual funds houses.

India infoline also provides recommendations based on in-depth research, mutual

fund performance and mutual fund ratingsto help meet your investment goals.
PMS-
Portfolio management service is a highly cutmoized service offering a range of
investment options best suited in the current market scenario.Angel offers
professional portfolio management service(PMS)to HNI”s who seek customized
solutions to realize their investment goals.Our portfolio managers are equipped to
design an investment portfolio across various investment avenues like equities,Fixed
deposites,Bonds etc.in sync with your unique needs.
 Currency trading-

The global increase in trade and foreign investments has led to inter-connection of
many national economies.This and the resulting fluctuations in exchange rates, has
created a huge internationl market for forex rendering investors another exciting
avenue for trading.The forex maket offers unmatched potential for profitable trading in
any market condition or any stage of the business cycle.
 BACKGROUND OF STOCK EXCHANGE IN INDIA

The emergence of stock market can be traced back to 1830. In Bombay,

business passed in the shares of banks like the commercial bank, the
chartered mercantile bank, the chartered bank, the oriental bank and the
old bank of Bombay and shares of cotton presses. In Calcutta,
Englishman reported the quotations of 4%, 5%, and 6% loans of East
India Company as well as the shares of the bank of Bengal in 1836. This
list was a further broadened in 1839 when the Calcutta newspaper
printed the quotations of banks like union bank and Agra bank. It also
quoted the prices of business ventures like the Bengal bonded
warehouse, the Docking Company and the storm tug company.
 CONT”D

Between 1840 and 1850, only half a dozen brokers existed for the
limited business. But during the share mania of 1860-65, the number of
brokers increased considerably. By 1860, the number of brokers was
about 60 and during the exciting period of the American Civil war, their
number increased to about 200 to 250. The end of American Civil war
brought disillusionment and many failures and the brokers decreased in
number and prosperity. It was in those troublesome times between 1868
 CONT”D

and 1875 that brokers organized an informal association and finally as

recited in the Indenture constituting the “Articles of Association of the
Exchange”. On or about 9th day of July,1875, a few native brokers doing
brokerage business in shares and stocks resolved upon forming in
Bombay an association for protecting the character, status and interest of
native share and stock brokers and providing a hall or building for the
use of the members of such association.
As a meeting held in the broker’ Hall on the 5th day of February, 1887, it
was resolved to execute a formal deal of association and to constitute the
first managing committee and to appoint the first trustees. Accordingly,
the Articles of Association of the Exchange and the Stock Exchange was
formally established in Bombay on 3rd day of December, 1887. The
Association is now known as “The Stock Exchange”.
The entrance fee for new member was Re.1 and there were 318 members
on the list, when the exchange was constituted. The numbers of
members increased to 333 in 1896, 362 in 1916and 478 in 1920 and the
entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896, Rs.2500 in
1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock
exchanges with about 6000 stock brokers. Organization structure of
stock exchange varies.
 CONT”D

organization. Of the total of 23, only 9 stock exchanges have been

permanent recognition. Others have to seek recognition on annual basis.
These exchange do not work of its own, rather, these are run by some
persons and with the help of some persons and institution. All these are
down as functionaries on stock exchange. These are
1. Stockbrokers
2. Sub-broker
3. Market makers
4. Portfolio consultants etc.
1.) Stockbrokers
Stock brokers are the members of stock exchanges.
These are the persons who buy, sell or deal in securities. A certificate of
registration from SEBI is mandatory to act as a broker. SEBI can impose
certain conditions while granting the certificate of registrations. It is
obligatory for the person to abide by the rules, regulations and the buylaw.
Stock brokers are commission broker, floor broker, arbitrageur etc.
 COMPANY STRUCTURE

 
India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange,
Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the
exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and
Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of
the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a
depository participant, providing a one-stop solution for clients trading in the equities market. It has
recently launched its Investment banking and Institutional Broking business.

 
 
COMPANY STRUCTURE
 MANAGEMENT TEAM

Chairman &Managing Director

Indiainfoline LTD

Nirmal Jain, MBA (IIM, Ahmedabad) and a Chartered and Cost Accountant, founded India’s leading
financial services company India Infoline Ltd. in 1995, providing globally acclaimed financial services in
equities and commodities broking, life insurance and mutual funds distribution, among others. Mr. Jain
began his career in 1989 with Hindustan Lever’s commodity export business, contributing tremendously to
its growth. He was also associated with Inquire-Indian Equity Research, which he co-founded in 1994 to
set new standards in equity research in India.
Mr. R Venkataraman
Executive Director
Indiainfoline

R Venkataraman co-promoter and Executive Director of India Infoline Ltd., is a B.

Tech (Electronics and Electrical Communications Engineering, IIT Kharagpur) and
an MBA (IIM Bangalore). He joined the India Infoline board in July 1999. He
previously held senior managerial positions in ICICI Limited, including ICICI
Securities Limited, their investment banking joint venture with J P Morgan of USA
and with BZW and Taib Capital Corporation Limited. He was also Assistant Vice
President with G E Capital Services India Limited in their private equity division,
possessing a varied experience of more than 16 years in the financial services
sector.
 BOARD OF DIRECTORS

Apart from Nirmal Jain and R Venkataraman, the Board of Directors of India
Infoline Ltd. comprises:

Mr. Vikamsey, Board member since February 2005 - a practising Chartered Accountant and partner
(Khimji Kunverji & Co., Chartered Accountants), a member firm of HLB International, headed the audit
department till 1990 and thereafter also handles financial services, consultancy, investigations,
mergers and acquisitions, valuations etc; an ICAI study group member for Proposed Accounting
Standard — 30 on Financial Instruments — Recognition and Management, Finance Committee of The
Chamber of Tax Consultants (CTC), Law Review, Reforms and Rationalization Committee and
Infotainment and Media Committee of Indian Merchants’ Chamber (IMC) and Insurance Committee
and Legal Affairs Committee of Bombay Chamber of Commerce and Industr (BCCI)yMr. Vikamsey is a
director of Miloni Consultants Private Limited, HLB Technologies (Mumbai) Private Limited and
Chairman of HLB India.
Mr Sat Pal Khattar, - Board member since April 2001 - Presidential Council of Minority Rights
member, Chairman of the Board of Trustee of Singapore Business Federation, is also a life
trustee of SINDA, a non profit body, helping the under-privileged Indians in Singapore. He joined
the India Infoline board in April 2001. Mr Khattar is a Director of public and private companies in
Singapore, India and Hong Kong; Chairman of Guocoland Limited listed in Singapore and its
parent Guoco Group Ltd listed in Hong Kong, a leading property company of Singapore, China
and Malaysia. A Board member of India Infoline Ltd, Gateway Distriparks Ltd — both listed —
and a number of other companies he is also the Chairman of the Khattar Holding Group of
Companies with investments in Singapore, India, UK and across the world.
Mr. Kranti Sinha — Board member since January 2005 — completed his masters from the Agra
University and started his career as a Class I officer with Life Insurance Corporation of India.
He served as the Director and Chief Executive of LIC Housing Finance Limited from August
1998 to December 2002 and concurrently as the Managing Director of LICHFL Care Homes (a
wholly owned subsidiary of LIC Housing Finance Limited). He retired from the permanent cadre
of the Executive Director of LIC; served as the Deputy President of the Governing Council of
Insurance Institute of India and as a member of the Governing Council of National Insurance
Academy, Pune apart from various other such bodies. Mr. Sinha is also on the Board of
Directors of Hindustan Motors Limited, Larsen & Toubro Limited, LICHFL Care Homes Limited,
Gremach Infrastructure Equipments and Projects Limited and Cinemax (India) Limited
Mr. A.K. Purvar – Board member since March 2008 – completed his Masters degree in
commerce from Allahabad University in 1966 and a diploma in Business
Administration in 1967. Mr. Purwar joined the State Bank of India as a probationary
officer in 1968, where he held several important and critical positions in retail,
corporate and international banking, covering almost the entire range of commercial
Company’s philosophy on Corporate Governance
COMPARITIVE ANALYSISOF BROKING FIRM
 RESULTS ON THE BASIS OF ACCOUNT
OPENING CHARGES

HDFC Securities Ltd : -

Account opening charges w.e.f. April 2005 is as follows: - Rs.749, if the
customer has an existing relationship with HDFC

Share Khan Ltd: -

There is no ACCOUNT OPENING CHARGES but require margin
money of Rs 5000 for trading purposes.
47

ICICI Direct:-
A one-time charge of Rs. 720 at the time of account opening will be
charged. You may later upgrade your Invest account to an ICICI
direct.com share trading account when you desire to trade in equity.
:-
 India Info line
There is a nominal charge of Rs. 555 only towards stamp duty, legal and
processing fees for opening the account. This includes the registration
and account opening charges. Bank and Depository Participant (DP)
account opening charges, if applicable, are payable separately.

KARVY Consultants Ltd: -

Account Opening Charges Are Rs. 452 But now SEBI banned on
opening of new Demat account of Karvy.
India bulls: -
Account opening charges are Rs. 900. There is no AMC and no margin
money is required.
 RESULTS ON THE BASIS OF BROCRAGE CHARGES

There are the two type of the transaction:-

1. Intra-day based
2. Delivery based
 CONCLUSION

On the basis of the study it is found that IndiaInfoline Ltd is better

services provide and minimum charges compair than the other
stockbrokers because of their timelyresearch and personalized
advice on what stocks to buy and sell.Infoline Ltd. provides the
facility of Trade tiger as well as relationship