SUMMER INTERNSHIP/ PROJECT WORK CHAROTAR UNIVERSITY

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A REPORT ONSUMMER INTERNSHIP/ PROJECT WORKFor(SHAREKHAN LTD ,VADODARA)Submitted toINDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)CHANGAPrepared by(PARIMAL SONERA)ID No.:10MBA106M.B.A. First YearUnder the Guidance ofMIS.PINKY TALATIINDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I2IM)CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)AT. & PO. CHANGA – 388 421 TA: PETLAD DIST. ANAND, GUJARATJULY 2011

DECLARATIONI , PARIMAL SONERA , student of the two-year MBA programme at Indukaka Ipcowala Institute ofManagement (I2IM) hereby declare that the report on summer training and project work entitled“ANALYSATION OF PROCESS OF PORTFOLIO MANAGEMENT SERVICE” is the result of my /our own work. I/we also acknowledge the other works / publications cited in the report.Place: ChangaDate: 31.07.2011(Signature)(PARIMAL SONERA)

ACKNOWLEDGEMENTEvery successful work is not completed without the help and support of the people around us. A successis shared by not an individual but in fact by the people who constantly help him and guide him in hiswork. Through this I want to express my gratitude towards all those who have directly or indirectlycontributed in my journey.I am greatly thankful to prof G.K.krishnamurthy the Incharge Director of Indukaka Ipcowala Institute ofManagement, who gave us the valuable opportunity of involving ourselves in such project assignments.I am greatly thankful to my company guide Mis.Pinky Talati for his kind support and help during thiseight weeks of my summer training and in completion of my target. I wish to express my deep sense ofgratitude towards Sharekhan Ltd. for their help and valuable guidance in conducting this summerinternship project from its conception to its completion.I would also like to thanks our faculty for their ever inspiring guidance about the summer training.

CHAROTAR UNIVERSITY OF SCIENCE AND TECHNOLOGY (CHARUSAT)INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT (I 2IM)MBA PROGRAMMEBATCH 2010-12CERTIFICATEThis is to certify that this report ‘Portfolio Management Service’ is the bona fide work of Mr.Parimal Sonera , student of Second Year of MBA Programme (2010-2012) at “sharekhan Ltd.”submitted to INDUKAKA IPCOWALA INSTITUTE OF MANAGEMENT, CHANGA in partialfulfillment of their academic requirement of the MBA PROGRAMME.Ms. Shetal ThomasProject GuideDate: 19/08/2011Place: ChangaProf.G KrishnamurthiPrincipal

TABLE OF ------7Part-I Organizational Profile ----------------------------- -------- 82Industry overview -------------------------------------3About Company (SHAREKHAN) --------------- 1143.1Introduction ---------------------------------------3.2History mpany overview -------------------------------3.4Mission and Vision -------------------------------Functional area -------------------------------------- 234.1Market and Marketing ------------------------- 234.2Production / Operations ----------------------- 284.3Human Resources Management Departmentalisation --------------------------------------- 304.4Finance and ---------------------------------- 31

5 Financial ------------------------------------------ 365.1Profitability of the -------------------------365.2Balancseheet of --------------------------- 385.3 cash flow ------- 39PART –II Project Study ----------------------------41789Project study ---------------------------------417.1introduction of the study ----------------------7.2Importance of the study 7.3Objectives of the study ------------------------Research earch Design -------------------------------8.2Data Sources and Data Collection Method 8.3Sampling Plan ---------------------------------Data and data analysis -------------------------4910 Findings and Interpretations --------------------

EXECUTIVE SUMMARYInvesting is both Arts and Science. Every Individual has their ownspecific financialneedandcapabilities, whereasexpectationsome needs andbasedon theirexpectationrisktakingare universal.Therefore, we find that the scenario of the Stock Market is changing dayby day hours by hours and minute by minute. The evaluation of financialplanning has been increased through decades, which can be bestin customers.Nowaseenday’s investments have become very importantpart of income saving.In order to keep the Investor safe from market fluctuation and makethem profitable, Portfolio Management Services (PMS)Investment Option foris fast gainingthe High Net worth Individual (HNI).There isgrowing competition between brokerage firms in post reform India. Forinvestor it is always difficult to decide which brokerage firm to choose.The research design is analytical in nature.A questionnaire wasprepared and distributed to Investors. The investor’s profile is based on theresults of a questionnaire that the Investors completed.In order to identify the effectiveness of Share khan PMS servicesthis Research is carried throughout the areaof investingmoney everyonelookforof Baroda. At the timethe Risk factor involve in theInvestment option. The Report is prepared on the basis of Research workdone through the different Research Mythology the data is collected fromboth the source Primary sourcessecondarywhich consistof Questionnaireanddata is collected from different sources such as Companywebsite, Magazine and other sources.

PART -I ORGANISATION PROFILEINTRODUCTION TO THE INDUSTRY What is stock market?A stock market or equity market is a public (a loose network of economic transactions, not aphysical facility or discrete) entity for the trading of company stock (shares) and derivatives at anagreed price; these are securities listed on a stock exchange as well as those only traded privately.The size of the world stock market was estimated at about 36.6 trillion at the start of October2008. The total world derivatives market has been estimated at about 791 trillion face or nominalvalue, 11 times the size of the entire world economy.About the Indian stock marketIn India there are 23 stock exchanges of which the major ones are:Bombay stock exchange(BSE)National Stock Exchange(NSE)BSE:At the end of the American civil war, the brokers who thrived out of this war in 1874, found aplace in a street, where they would easily assemble and transact business. This street is nowadays,popularly known as DALAL STREET. In 1887, they formally established in Bombay, and wereknown as “Native Shares and Stock Brokers Association”. In 1895, it acquired a premise in thesame street and finally was inaugurated in 1899 with the name Bombay Stock Exchange (BSE).India's premier stock exchange Bombay Stock Exchange (BSE) can also trace back its origin to asfar as 125 years when it started as a voluntary non-profit making association. You hear about itany time it reaches a new high or a new low, and you also hear about it daily in statements like'The BSE Sensitive Index rose 5% today'. Obviously, stocks and stock markets are important.Stocks of public limited companies are bought and sold at a stock exchange. But what really arestock exchanges? Known also as News on the stock market appears in different media every day.The stock market , a stock exchange is an organized marketplace for securities (like stocks, bonds,options) featured by the centralization of supply and demand for the transaction of orders bymember brokers, for institutional and individual investors. The exchange makes buying and sellingeasy. The need for stock exchanges developed out of early trading activities in agricultural andother commodities. During the middle Ages, traders found it easier to use credit that requiredsupporting documentation of drafts, notes and bills of exchange.

India's other major stock exchange National Stock Exchange (NSE), promoted by leading financialinstitutions, was established in April 1993. Over the years, several stock exchanges have beenestablished in the major cities of India. There are now 23 recognised stock exchanges — Mumbai(BSE, NSE and OTC), Calcutta, Delhi, Chennai, Ahmedabad, Bangalore, Bhubhaneswar,Coimbatore, Guwahati, Hyderabad, Jaipur, Kochi, Kanpur, Ludhiana, Mangalore, Patna, Pune,Rajkot, Vadodara, Indore and Meerut.NSE: With the liberalization of Indian economy it was found necessary to lift the Indian stock marketson par with the international standards. The NSE was incorporated in 1992 by industrialdevelopment bank of India, industrial credit and Investment Corporation of India, industrialfinance corporation of India, all insurance corporations, selected commercial banks and others.NSE is India’s leading stock exchange covering more than 160 cities and towns across the country.It provides the modern fully computerized trading system designed to offer investors across thecountry a safe and easy way to invest to liquidate investment and securities. Investors in manyareas of country did not have the same access and opportunity to trade so there arise the need forsetting up the national stock exchange. The NSE network has been designed to provide equalaccess to investors from anywhere in India and to be responsive to their needs.On its recognition as a stock exchange under the Securities Contract Act, 1956 in April 1993, NSEstarted operations in the Wholesale Debt Market (WDM) segment in June 1994. Capital market(equities) segment commenced operations in November 1994, and operations in derivativesegment started in June 2000.NSE started trading in the capital market segment on November3,1994 and within one year became the largest exchange in India, in terms of volumes transacted.During the year 2005-06 NSE reported, a turnover of Rs 1,569,556 crores in the equity segment.The Indian retail brokerage market, which is going through a wonderful phase with high growthrate. The total trading volume of the Indian brokerage companies stood at US 1239.1 billion inthe year 2004, which increased to US 1492.1 billion in 2005. It is further expected to reach US 6535.7 billion by the year 2015.

INTRODUCTION OF SHAREKHAN LTD :Sharekhan Ltd is one of the leading retail stock broking house of SSKI Groupwhich is running successfully since 1922 in the country. It is the retail brokingarm of the Mumbai-based SSKI Group, which has over eight decades ofexperience in the stock broking business. Sharekhan offers its customers a widerange of equity related services including trade execution on BSE, NSE,Derivatives, depository services, online trading, investment advice etc The firm’sonline trading and investment site - www.sharekhan.com - was launched on Feb8, 2000. The site gives access to superior content and transaction facility toretail customers across the country. Known for its jargon-free, investor friendlylanguage and high quality research, the site has a registered base of over onelakh customers. The content-rich and research oriented portal has stood outamong its contemporaries because of its steadfast dedication to offeringcustomers best-of-breed technology and superior market information. Theobjective has been to let customers make informed decisions and to simplify theprocess of investing in stocks.On April 17, 2002 Sharekhan launched Speed Trade, a net-based executableapplication that emulates the broker terminals along with host of otherinformation relevant to the Day Traders. This was for the first time that a netbased trading station of this caliber was offered to the traders. In the last sixmonths Speed Trade has become a de facto standard for the Day Tradingcommunity over the net.Sharekhan’s ground network includes over 640 centers in 280 cities in Indiawhich provide a host of trading related services.Sharekhan has always believedin investing in technology to build its business. The company has used some ofthe best-known names in the IT industry, like Sun Microsystems, Oracle,Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign FinancialTechnologies India Ltd, Spider Software Pvt Ltd. to build its trading engine andcontent. The Morakhiya family holds a majority stake in the company. HSBC,Intel & Carlyle are the other investors.With a legacy of more than 80 years in the stock markets, the SSKI groupventured into institutional broking and corporate finance 18 years ago. PresentlySSKI is one of the leading players in institutional broking and corporate financeactivities. SSKI holds a sizeable portion of the market in each of these segments.SSKI’s institutional brokin

physical facility or discrete) entity for the trading of company stock (s hares) and derivatives at an agreed price; these are securities listed on a stock exchange as well as those only traded privately. The size of the world stock market was estimated at about 36.6 trillion at the start of October 2008. The total world derivatives market has been estimated at about 791 trillion face or nominal