EXECUTIVE SUMMARY
The project report is a result of two months training with indiabulls securities. summer training is an integral part of “post graduate diploma in management”course . it aims at providing first hand experience of industry before coming to corporate world. Objective of my report is to study and analyse marketing strategy and client satisfaction level in indiabulls securitiesAccording to my research indiabulls has a good brand image in the minds of their client because of advertising.
According to my survey I found out that the factors that attract an investor in broking firm is solely service . brand image doesn’t play much role in this. even less no of clients are for indiabulls as against religare can be attributed to uneven distribution of indiabulls branches. power indiabulls which is an advanced trading software is widely appreciated and used by clients. this was one of the best contribution of indiabulls to their business. As per my research I concluded that indiabulls lack in promotional schemes to attract and retain their clients. They should focus on more brand promotion through canopies and mall interaction..
The training gave me great deal of exposure and I found pratical experience entirely different from theoretical one. basically the project dealt with finding new opportunities for the brand and to find customer perception for brands vis-a-vis others and to mould according to customer demand.
INDIABULLS VISION
To be the largest and most profitable financial services organisation in indian retail market and become one stop shop for all non banking financial products and services for the retail customers. Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal started Indiabulls in May 2000 as an online stock brokerage. The three founders of Indiabulls are engineering graduates from the Indian Institute of Technology, Delhi.
History India bulls Financial Services Limited was incorporated on January 10,2000 as M/s Orbis Infotech Private Limited at New Delhi under the Companies Act. The name of Company was changed to M/s. India bulls Financial Services Private Limited on March 16, 2001 due to change in the main objects of the Company from Infotech business to investment & Financial Services business. It became a Public Limited Company on February 27, 2004 and the name of Company was changed to M/s. Indiabulls Financial Services Limited.
The Company was promoted by three engineers from IIT Delhi, and has attracted more than Rs. 700 million as investments from venture capital, private equity and institutional investors such as LNM India Internet Ventures Ltd. , Transatlantic Corporation Ltd. , Farallon Capital Partners, L. P. , R R Capital Partners L. P. , and Infinity Technology Trustee Pvt. Ltd. and has developed significant relationships with large commercial banks such as Citibank, HDFC Bank,Union Bank, ICICI Bank, ABN Amro Bank, Standard Chartered Bank, Lord Krishna Bank and IL&FS. The Company and its subsidiaries have facilities from the above mentioned banks and financial institutions aggregating to Rs. 1760 million.
The Company headquarters are co-located in Mumbai and Delhi, allowing it to access the two most important regions for Indian financial markets, the Western region including Mumbai, rest of Maharashtra and Gujarat; and the Northern region, including the National Capital Territory of Delhi, nearby cities, parts of Haryana,Uttar Pradesh and Punjab; and access the highly skilled and educated workforce in these cities. Sameer Gehlaut, Rajiv Rattan and Saurabh Mittal started Indiabulls Group by acquiring a minor brokerage company, Orbis Securities, in 1999. The group started it business as a stock-brokerage firm and pioneered online brokerage business in India before diversifying into other financial services areas such as consumer credit (2004) and mortgages (2005).
The group partnered with Farallon Capital to purchase land-mark bombay land assets and is currently building one of the largest integrated commercial real estate projects in India (valued at more than $2 billion). The group recently entered the Power generation business and aims to have more than 5000 MW of power generation under construction before 2008 end.
PROFILE OF INDIABULLS
Indiabulls Securities Limited is India’s leading capital markets company with All-India Presence and an extensive client base. Indiabulls Securities possesses state of the art trading platform, best broking practices and is the pioneer in trading product innovations. Power Indiabulls, in-house trading platform, is one of the fastest and most efficient trading platforms in the country.
Indiabulls Financial Services Limitedis an integrated financial services powerhouse providing Consumer Finance, Housing Finance, Commercial Loans, Life Insurance, Asset Management and Advisory services. Indiabulls Financial Services signed a joint venture agreement with Sogecap, the insurance arm of Societe Generale (SocGen) for its upcoming life insurance venture. Indiabulls Financial Services in partnership with MMTC Limited, the largest commodity trading company in India, is setting up India’s 4th Multi-Commodities Exchange. Indiabulls Real Estate Limited Indiabulls Real Estate partnered with Farallon Capital Management LLC of USA to bring the first FDI into real estate. Indiabulls Real Estate is transforming 14 million sqft in 16 cities into premium quality, high-end commercial, residential and retail spaces.
Indiabulls Real Estate has diversified significantly in the following business verticals within the real estate space: Real Estate Development, Project Advisory & Facilities Management: Residential, Commercial (Office and Malls) and SEZ Development. Power: Thermal and Hydro Power Generation Indiabulls power Started in September 2007, Indiabulls Power Business has seen tremendous growth since inception. Indiabulls has ventured into the power business to take advantage of the opportunities presented by the huge gap in Demand and Supply of power in India and plans to develop, construct and operate power projects domestically and internationally.
Indiabulls is participating in arious Coal based Thermal, Hydro and Renewable Energy projects as well as is actively pursuing various coal mining opportunities. Indiabulls is currently developing/evaluating projects with an aggregate capacity of 9412 MW. These projects include coal based thermal power projects at Amravati (2640 MW), Nasik (1320 MW) in Maharashtra, Bhaiyathan Thermal Power Project (1320 MW) in Chhattisgarh and so on.. Besides these, several power projects are currently under evaluation in various parts of India. Indiabulls Retail Services is the retail arm of Indiabulls Group, a business conglomerate catering to the entire Indian consumption space. Indiabulls Retail operates multiple retail formats in both the value and lifestyle segment of the Indian consumer market.
The company has forayed in multiple formats which include Indiabulls Megastores (in the process of being re-branded) – a chain of lifestyle stores, “Happy Store” – a Newly Launched Hyper format offering great value for money on daily needs, apparels, home and appliances. The company already has operation operational stores at Pune, Nagpur & Faridabad (NCR) . The Company plans to stretch across the nation with the addition of more such stores In the month of December 2007 – Indiabulls Wholesale Services, the retail arm of Indiabulls Real Estate, acquired Piramyd Retail, a company owned by the Ashok Piramal Group which runs 35 neighbourhood retail stores and seven lifestyle stores.
Indiabulls Wholesale has acquired 63. 92 per cent stake in Piramyd Retail at an enterprise value of around Rs 208 crore (Rs 2. 08 billion), said sources close to the deal. Indiabulls Wholesale, which is setting up 30 hypermarkets in as many tier-II cities at a cost of Rs 1,500 crore(Rs 15 billion), plans to expand Piramyd’s existing network of 42 stores to over 150 stores by the end of 2008. With this acquisition, Indiabulls will have a presence across different formats hypermarkets, lifestyle and convenience store formats. The acquisition provides Indiabulls 1,300 trained people and 10 lakh square foot of prime retail space.
INDIABULLS SECURITIES IN STOCK MARKET
Indiabulls Securities Limited (ISL) is the pioneer in Retail Broking Industry having a pan India presence and providing services to a customer base exceeding half a million.
ICL is the right partner for you if you are keen on tapping opportunities being presented by this nascent commodities futures market. They offer a clearly differentiated product to clients with a strong focus on research. commodities research team has a rich research experience in the commodities markets. The specialized services provided by r research team include daily intraday reports, reports on Agri-commodities & Metals, weekly & medium term market outlook and arbitrage strategies. its retail branch network is one of the largest retail branch networks in the private financial services sector and provides customers with an unmatched distribution and service capability.
Indiabulls network, spread over more than 250 Indiabulls offices in 80 cities, offers real-time prices, detailed data and news, intelligent analytics and electronic trading capabilities, right at you fingertips. ICL offers dedicated Relationship Manager to cater to all trading related requirements. To provide the highest possible quality of service, They provide full access to all products and services through multiple channels.
As you know stock market is affected by investor’s sentiments. so does the commodities markets. if the stock market falls. people will start investing in commodities this will give rise in prices of metals and other commodities. it also work on principle of demand and supply. The company provides these services through on-line and off-line distribution channel.
POWER INDIABULLS-‘ TRADING JUST GOT FASTER’
Power Indiabulls(PIB) is an online trading platform which brings you the power of a broker’s terminal on your desktop. It is an in-house developed internet enabled trading solution that supports securities and derivatives trading with NSE and BSE. PIB is designed for the high volume traders that provide access to multiple market segments through the ease of a single terminal. Designed by the technology team of Indiabulls, PIB comes with several enhanced features, which makes it the best desktop trading application in the country today.
You can create market watches where you can view “live broadcast” of stocks both in capital as well as F segment. Stock prices get updated automatically every second without any manual intervention. PIB provides you with extensive real time reports to evaluate the performance of your portfolio.
For clients there are live quotes of market,portfoliotracker which let them track the performance of their stocks . also keeps record of profit and loss earned. ,news,live charts to understand stocks momentum,real time reports to see their obligations,position in cash and f,orders placed and trade executedalert manager to track scrips for price and volume,world markets and much more.
INDIABULLS SIGNATURE ACCOUNT
It provides you the platform to trade in Equity and Derivatives. Ease of trading – With Indiabulls Signature account you have the flexibility to place your orders either by logging on the website, calling at the branch or walking in the branch. Dedicated Service Branch and Relationship Manager: You can get in touch with your Relationship Manager and Service Branch for all your trading related requirements.
Power Indiabulls (PIB): You can trade smarter and faster using the Power Indiabulls application. Access the broad spectrum of sophisticated trading tools and get an edge in the stock markets. Online Payment Gateways: Use our online payment gateways facility and get instant credit in your Trading Account. We currently provide online gateway payment facility with four major banks – HDFC, ICICI, AXIS and IDBI. IPOs – Indiabulls provides you the flexibility to apply in ongoing IPOs through either online or offline channels. For applying online, you do not need to fill tedious forms and write cheques.
DEPOSITORY SERVICES
Indiabulls is a depository participant with the National Securities Depository Limited and Central Depository Services (India) Limited for trading and settlement of dematerialised shares. Indiabulls performs clearing services for all securities transactions through its accounts. they offer depository services to create a seamless transaction platform – execute trades through Indiabulls Securities and settle these transactions through the Indiabulls Depository Services.
Indiabulls Depository Services is part of our value added services for our clients that create multiple interfaces with the client and provide for a solution that takes care of all your needs
IPO ONLINE ONLINE IPO
facility offered by Indiabulls Securities Ltd. is the convenience in submission of applications from anywhere breaking the limitations of time and geography. You don’t need to submit the application in paper form, or write a cheque or go to submit it anywhere. Now you have the convenience at your fingertip. You can quickly and seamlessly apply to the latest public offerings with just a few clicks.
CURRENCY DERIVATIVES
Indiabulls offers trading in the Currency Derivatives Segment in NationalStockExchange(NSE)currencydeivatives are similar in nature to Stock or Index Futures contracts. Currency Futures Contracts, with INR: USD exchange rate as the underlying, are available with a monthly expiry. At any given time, Currency Future Contracts are available for trading for the next 12months. The Mark-to-Market for Currency Derivatives is settled on a daily basis in a manner similar to Equity / Index Futures. The market for Currency Derivatives is open from 9 A. M to 5 P. M (Monday to Friday).
MANAGEMENT OF SERVICES
- Gap between customer expectation and management perception: Management does not always correctly perceive what customer want. For intense in Inidabulls a customer is expecting that he can buy share after deposited require check but he has to wait for 3 days and same happen with demand draft. as it takes t+2 settlement to clear the cheque and shares from seller to buyer through clearing member
- Gap between management perception and service quality: Management might correctly perceive customer’s want but not set a performance standard. Like a form of an account should passed away from the all stages of processing but it mostly takes time of 10 days.
- Gap between service quality specification and service quality: Personnel might be poorly trained, or incapable or unwilling to meet the standard or they may be held to conflicting standards, such as taking time to listen to customer and serving them fast. That happens in indiabulls,say he takes more time to pitch a client for trading and many times result in nothing.
- Gap between service delivery and external communication: customers’ expectations are affected by statement made by company representative and ads,depicted in tv and pamphlets etc . as customer suffered a lot according to their reviews for bad service and no solution being offered to them for their complaints.
- Gap between perceived service and expected service: This gap occurs when the customer misperceives the service quality. A client might perceived wrongly like in infrastructure of Indiabulls- Indiabulls also try to demonstrate its service quality through Physical Evidence and presentation.
In Indiabulls office all client come everyday and they trade but with the time passing Indiabulls is growing and number of client increasing day by day so space of office is not sufficient for both staff members and clients also. To overcome this problem Indiabulls will have . to focus on good infrastructure and physical evidence.
BUSINESS MODEL
Indiabulls is working under brick and mortar format where clients can either visit or/and can call besides online format. it’s a broker model where it doesnot take ownership of goods being sold. Instead they charge a fee (brokerage) for the product and service being sold. it matches the buyer and seller of financial assets. it has shifted from traditional sub-broker model to marketing associate model.
This can’t be cheated by anyone else. so it is a new product to complement existing products. this key is send to all those clients who are active traders that too free!. Another development can be seen from growth chart of indiabulls in 2003 they offered more services like equity,f &o,mutual funds and ipo. besides these innovative products like power indiabulls and signature account add to this aspect.
FINANCIAL MARKET
Financial market is a mechanism that allows people to easily buy and sell (trade) financial securities (such as stocks and bonds), commodities (such as precious metals or agricultural goods), and other fungible items of value at low transaction costs and at prices that reflect efficient markets. Both general markets, where many commodities are traded and specialised markets (where only one commodity is traded) exist.
Markets work by placing many interested sellers in one “place”, thus making them easier to find for prospective buyers. An economy which relies primarily on interactions between buyers and sellers to allocate resources is known as a market Financial System . Finance Financial markets facilitate : The raising of capital (in the capital markets); The transfer of risks (in derivatives market)and; International trade (in the currency markets).
Stock typically takes the form of shares of either common stock or preferred stock. As a unit of ownership, common stock carries voting rights that can be exercised in corporate decisions. Preferred stock differs from common stock in that it typically does not carry voting rights but is legally entitled to receive a certain level of dividend payments before any dividends can be issued to other shareholders Convertible preferred stock is preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Shares of such stock are called “convertible preferred shares”.
STOCK DERIVATIVES
A stock derivative is any financial instrument which has a value that is dependent on the price of the underlying stock. Futures and options are the main types of derivatives on stocks. The underlying security may be a stock index or an individual firm’s stock, e. g. single-stock futures. Stock futures are contracts where the buyer is long, i. e. , takes on the obligation to buy on the contract maturity date, and the seller is short, i. e. , takes on the obligation to sell. Stock index futures are generally not delivered in the usual manner, but by cash settlement. futures have unlimited profit and unlimited loss A stock option is a class of option.
Specifically, a call option is the right (not obligation) to buy stock in the future at a fixed price and a put option is the right (not obligation) to sell stock in the future at a fixed price. Thus, the value of a stock option changes in reaction to the underlying stock of which it is a derivative. in options there is limited risk and unlimited profit. In call option: Spot price(nifty index)strike price BOND In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals.
Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender (creditor), and the coupon is the interest. Bonds provide the borrower with external funds to finance long-term investments, or, in the case of government bonds, to finance current expenditureBonds and stocks are both securities, but the major difference between the two is that stockholders have an equity stake in the company (i. e. , they are owners), whereas bondholders have a creditor stake in the company (i. e. , they are lenders). Another difference is that bonds usually have a maturity, after which the bond is redeemed, whereas stocks may be outstanding indefinitely. An exception is a consol bond, which is a perpetuity (i. e. , bond with no maturity).
DEBENTURE
A debenture (also called a note) is an unsecured corporate bond or a corporate bond that does not have a certain line of income or piece of property or equipment to guarantee repayment of principal upon the bond’s maturity. Debentures are long-term debt instrument used by large companies to obtain funds.. A corporations receives an advantage when it issues debentures (as opposed to issuing secured corporate bonds) because it means that the company does not have to set aside certain assets or income in order to guarantee against its default in paying back the principal at maturity. Therefore, a corporation that issues debentures may use those assets or funds that would otherwise be held a separate account for other financing activities.
Debentures are generally freely transferable by the debenture holder. Debenture holders have no voting rights and the interest given to them is a charge against profit in company’s financial statements.
MUTUAL FUND
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis. Since 1940, there have been three basic types of investment companies in the United States: open-end funds, also known in the US as mutual funds; unit investment trusts (UITs); and closed-end funds..
However, in the rest of the world, mutual fund is used as a generic term for various types of collective investment vehicles, such as unit trusts, open-ended investment companies (OEICs), unitized insurance funds, and undertakings for collective investments in transferable securities (UCITS). example are: Open-end fund The term mutual fund is the common name for what is classified as an open-end investment company by the SEC.
Being open-ended means that, at the end of every day, the fund issues new shares to investors and buys back shares from investors wishing to leave the fund. Mutual funds must be structured as corporations or trusts, such as business trusts, and any corporation or trust will be classified by the SEC as an investment company if it issues securities and primarily invests in non-government securities.
An investment company will be classified by the SEC as an open-end investment company if they do not issue undivided interests in specified securities (the defining characteristic of unit investment trusts or UITs) and if they issue redeemable securities. Funds of funds Funds of funds (FoF) are mutual funds which invest in other underlying mutual funds (i. e. , they are funds comprised of other funds). The funds at the underlying level are typically funds which an investor can invest in individually. A fund of funds will typically charge a Management fee which is smaller than that of a normal fund because it is considered a fee charged for asset allocation services.
The fees charged at the underlying fund level do not pass through the statement of operations, but are usually disclosed in the fund’s annual report, prospectus, or statement of additional information. The fund should be evaluated on the combination of the fund-level expenses and underlying fund expenses, as these both reduce the return to the investor. Trading in stock market Participants in the stock market range from small individual stock investors to large hedge fund traders, who can be based anywhere. Their orders usually end up with a professional at a stock exchange, who executes the order. Some exchanges are physical locations where transactions are carried out on a trading floor, by a method known as open outcry.
This type of auction is used in stock exchanges and commodity exchanges where traders may enter “verbal” bids and offers simultaneously. The other type of exchange is a virtual kind, composed of a network of computers where trades are made electronically via traders at computer terminals. Actual trades are based on an auction market paradigm where a potential buyer bids a specific price for a stock and a potential seller asks a specific price for the stock. (Buying or selling at market means you will accept any bid price or ask price for the stock. ) When the bid and ask prices match, a sale takes place on a first come first served basis if there are multiple bidders or askers at a given price.
