Calcutta Stock Exchange Limited: Summer Internship Project Report

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2012

CALCUTTA STOCK EXCHANGE LIMITED


Maneesh

[SUMMER INTERNSHIP PROJECT REPORT]


This project includes a study on the major stock exchanges of the world and the investment pattern in them and also the marketing strategies used by the stock exchanges.

Name of the project The summer internship project report consists of two areas the first part is an academic study on stock exchange and the second part consists of the working in the Business Development Department of Calcutta Stock Exchange. Project Details

Study of the major Stock Exchanges of world with core focus on the Marketing strategies and Investment Pattern and its practical implementations in Calcutta Stock Exchange

Under this project I will be analysing the investment pattern in the major stock exchanges of the world which include i> ii> iii> iv> v> vi> Shanghai Stock Exchange Shenzhen Stock Exchange London stock Exchange New york Stock Exchange National stock Exchange Bombay stock Exchange

Then there will be an analysis on the marketing strategies adapted by these exchanges for increasing the turnover and increasing the number of listed companies in them. It will also cover the shareholding of the banks in theses exchanges. Then there will be an analysis how these strategies could be practically implemented in Calcutta stock exchange.

A study on Business Development of Calcutta stock Exchange

Under this project I will be working in the Business Development Department of Calcutta stock exchange and gaining practical experience of working of a stock exchange .At the end of the project will be giving recommendations for aggressively pushing the Calcutta stock exchange to increase its turnover volume and membership base of active members. The Key areas covered under this project are: i> ii> iii> Increase CSE membership. Promotions and advertising Customer relationship management.

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Objectives of the study


To gain insight of capital market. To formulate Marketing Strategies for the Exchange. Competitor analysis Application of marketing strategies in practical work environment. Impact of state of economy on the securities market. Increase the membership in the new deposit based membership scheme

Sources of Data Wall street journal Dalal Street journal Bloomberg website Websites of the respective exchanges. Regulators website. Books on Securities Market. Investment Magazines. Primary Data from current employees of CSE.

Methodology used

Collecting Data from secondary sources Analysis of data SWOT analysis of CSE and its competitors. Industry Analysis. Major areas of concern. Factors affecting the Brand image of CSE. Primary Data collection from the employees.

For the analysis of the major exchanges I will be studying the strategies of these exchanges and look for the factors which helped for the success of these strategies. As far as the competitor analysis I will be doing SWOT analysis of the main competitors of CSE and look for the factors which are hampering its growth. In the end I will be giving suggestions for implementing the strategies which will help CSE revive its old glory and trust.

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Work done so far Study of the securities market of china. Investment pattern and the types of securities issued in shanghai stock exchange and Shenzhen stock Exchange. Phone follow up of members. Visit to the members in Patna. Meeting with members of Magadh stock Exchange. Promotional strategies for CSE. Customer Relationship Management. E-Mail marketing. Design of marketing collaterals viz. flex, standees and umbrellas. Promotion of depository services of CSE. Investor awareness program

Findings so far

The sub-brokers who are trading currently with other brokers are reluctant to migrate to CSE for the following reasons a> Will require KYC for all the existing clients which is a very tedious task. b> Back end office support is provided by the brokers which CSE cannot provide to its members being a stock exchange. c> Lack of trust after the scam of Ketan parekh and the CSE scam of the year 2001. d> They a reluctant to maintain a deposit of Rs 10 lakhs with CSE as they can trade through the brokers without maintaining much deposit on the basis of commission sharing basis. e> Till now CSE does not provides the facility of trading in futures and options. Apart from these issues there is a stiff competition from the Indore stock exchange and Madras stock exchange. These exchanges provide membership with base minimum capital of Rs 2.5 lakhs only as they are category B stock exchanges. Trading through CSE is much economical as compared to other brokerage houses. Compliance rules are easier to follow.

Expected outcome Increase the number of members outside west Bengal. Implementing new ideas in the changed scenario. Push the current members for taking up NSE platform. Increase the turnover volume in F&O segment. Generate Awareness among the sub-brokers regarding the trading platform of Calcutta stock exchange Increase the product offering to the members. Make the membership process hassle-free and member friendly.

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