A

PROJECT REPORT

ON

“ONLINE TRADING”
OF THE

“PADMAKSHI FINANCE SERVICES”

Submitted to

KAKATIYA UNIVERSITY

For the Award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

CH.ANJANEYULU

(H.T.NO: 10104C1052)
Under the guidance of

Mrs. V. SRUJANA DEVI

Asst. Professor
Department of commerce & business Management

VANI NIKETAN INSTITUTE OF MANAGEMENT STUDIES

(Affiliated to Kakatiya University)

Mukarampura, Karimnagar – 505001, A.P

(2009-2011)

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 DECLARATION

I here by declare that this project work entitled “ONLINE TRADING” of the
PADMAKSHI FINANCE SERVICES in an original work done under
the guidance of Mrs. Srujana Devi Asst. Professor of M.B.A
Department, Vani niketan institute for management studies. It has not
been submitted either in part or in full for any degree or diploma of any
university.

Date :

Place : Karimnagar

(CH.ANJANEYULU)

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 ACKNOWLEDGEMENT

I am indebted to the management of Vaniniketan Institute of Management

Studies, Mukarampura, Karimnagar. For their guidance & Suggestions without

which the study would not have been completed.

I can grateful to Prof. Gurajala Sudarshan, Director, Vaniniketan Institute

of Management Studies, Mukarampura, Karimnagar for his encouragement &

Co-operation for the successful completion of the project

I can thankful to my guide Mrs. V. Srujana Devi Assit. Professor for his

meticulous reading of typed material and co-operation for early completion of the

project.

I express a sense of gratitude to my lectures and other members of the

Institute for their encouragement and co-operation for the success of project.

It is my privilege to acknowledge and express a deep sense of gratitude to

my parents, family members and friends for their constant help and

encouragement during the course of this project.

CH. ANJANEYULU

H.T.NO:10104C1052

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 CONTENTS

CHAPTER I 01 - 25

INTRODUCTION

CHAPTER II 26 - 30

OBJECTIVES

METHODOLOGY OF THE STUDY

NEED AND SIGNIFICANCE OF THE STUDY

SCOPE OF THE STUDY

LIMITATIONS OF THE STUDY

CHAPTER III 31 - 49

PROFILE OF PADMAKSHI FINANCIAL SERVICES

CHAPTER IV 50- 59

DATA ANALYSIS & INTERPRETATION

CHAPTER V 60 – 62

SUGGESTIONS
&
CONCLUSIONS

BIBLIOGRAPHY 63 - 64

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INTRODUCTION

5
 INTRODUCTION

The rapid growth in number, volume and value of securities in the Indian capital

market exposed the limitation of handling and dealing in securities in physical /

paper mode. The Shortcomings of the market became manifest in terms of bad

deliveries, delays in transfer and irregular Settlement.

The National “Stock Exchange (NSE) followed by Bombay stock Exchange

(BSE) in 1995 first introduced electronic medium of trading (online

trading).And draw backs of manual trading makes to introduce the online

trading process

ONLINE TRADING

Before getting in to the online trading we should know some things about the

internet and

E-commerce.

What is internet?

Internet is a world wide self governed network connecting several other smaller

network and millions o computers and persons to mega sources of information

this technology shrinks vast distances accelerating the pace of business reform

and revolutionizing the way companies are managed. It allows direct ubiquitous

links to anyone anywhere and anytime to build up interactive relationship.

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A combination of time and space called the internet promises to bring

unprecedented changes in our lives and business. Internet or net is an inter-

connection of computer communication networks spanning the entire globe

crossing all geographical boundaries. It has re- defined the method of

communication work study education business leisure health trade banking

commerce and what not it is virtually changing every thing and we are living in

dot.com age. Net being an interactive two way medium through various

websites enables participation by individuals in business to business and

business to consumer commerce visit to shopping arcades games etc. In cyber

space even the information can be copied downloaded and retransmitted.

The use of internet has grown 2000 percent in last decade and is currently

growing at 10 percent per month. In India growth of internet is recent times. It is

expected to bring changes in every functional area of business activity including

management and financial services. It offers stock trading at a lower cost.

Internet can change the nature and capacity of sock broking business in India.

E-commerce

Electronic commerce is associated with buying and selling over computer

communication networks. It helps conduct traditional commerce through new of

transferring and processing of information. Information is electronically

transferred from computer to computer in an automated way. E- Commerce

refers to the paperless exchange of business information using electronic data

inter change electronic technologies. It not only automates manual processes and

paper transactions but also helps organization move to fully electronic

environment and change the way they operated.

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 PC’s and network attempts to introduce banks of the tools and technologies

required for electronic commerce. The computers are either workstations of

individual office works or serves where large databases and information reside.

Network connects both categories of computer the various operating systems are

the most basis program within a computer. It manages the resources of the

computer system in a fair and efficient manner.

E- TRADING INTERFACE

Consist the following link used in the e-trading interface.

INVESTOR STOCK BROKERS INVESTORS

SATELLITE
LINK

DEPOSITORY REGISTAR/COMPANY

DEPOSITORY
PARTICIPANT BANK
STOCK
EXCHANGE

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Now we can enter in to the concept known as online trading

In the past investors had no option but to contract their broker to get real time

access to market data. The net brings data to the investor on online and net

broking enables him to trade on a click of mouse. Now information has become

easily accessible to both retail as well as big investors. Once investors learn to

research on line they will demand more market information.

EVOLUTION OF BROKING IN INDIA:-

The evolution of broking in India can be categorized in three phases-

1. Stockbrokers will offer on their sites such as live portfolio manager live

quotes market research and attract more investors.

2. Brokers will offer on line broking and relationship management by providing

and offering analysis and information to investors during broking and non-

broking house based on their profile and needs i.e. customized services.

3. Brokers (now e-brokers) will offer value management or services like initial

public offering online, on-line asset allocation, portfolio management, financial

planning, tax planning, insurance services etc. And enables the investors to take

better and well considered decisions.

The actual definition of “online trading” is as explained below:

“Online trading is a service offered on the internet for purchase and sale of

shares. In the real world you place order on your stockbroker either verbally or

in a written form (fax).” In online trading you will access a stockbroker’s

website through your internet enabled PC and place orders through the broker’s

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 internet based trading engine. These orders are routed to the stock exchange

without manual intervention an executed thereon in matter of few seconds.

The net is used as a modem of trading in internet trading. Orders are

communicated or the stock exchange through website.

IN INDIA:

Internet trading started in India on 1st April 2000 with 79 members seeking

permission for online trading. The SEBI committees on internet based securities

trading services has allowed the net to be used as an order Routing System

(ORS) through registered stock brokers on behalf of their clients for execution

of transaction. Under the ORS the client enters his requirements (security

quantity price buy/sell) on broker’s site.

REQUIREMENTS FOR NET TRADING:-

For investors:

• Installation of a computer with required specification

• Installation of a mode

• Telephone connection

• Registration for on-line trading with broker

• A bank account

• Depository account

• Compliance with SEBI guidelines for net trading

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The following should be produce to get a demat account and

online trading account:

• As identity proof &address proof produce the following things:

• Voter ID card

• Driving license

• PAN card (in case of to trade more then 50000)

• Ration card

• Bank pass book

• Telephone bill

Other requirements which are necessary

First page of the bank pass book and last 6 months statement.

Bank manager’s signature along with bank’s seal manager registration code on

photograph.

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For stock brokers:

• Permission from stock exchange for net trading

• Net worth of Rs.50 lac

• Adequate back-up system

• Secures and reliable software system

• Adequate experienced and trained staff

• Communication of order (trade confirmation to investor by e-mail)

• Use of authentication technologies

• Issue of contract notes within 24 hors of trade execution

• Setting up a website

The net is used as a medium of trading in internet trading. Orders are

communicated to the stock exchange through website. Internet trading started in

India on 1st April 2000 with 79 members seeking permission for online trading.

The SEBI committees on internet based securities trading services has allowed

the net to be used as an order Routing System (ORS) through registered stock on

behalf of their clients for execution of transaction.

Under the order Routing System the client his requirements (security, quantity,

price, and buy/sell) in broker’s site. They are checked electronically against the

clients account and routed electronically to the appropriate exchange for

execution by the broker. The client receives a confirmation on execution of the

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order. The customer’s portfolio and ledger accounts get updated to reflect the

transaction. The user should have the user id and password to enter into the

electronic ring. He should also have demat account and bank account. The

system permits only a registered client to log I using user id and password.

Order can be using place order window of the website.

ONLINE TRADING HASSLED TO ADDITIONAL

FEATURES SUCH AS:

• Limit/stop orders: orders that can be go unfilled but there is an extra

charge for this leeway facility since one need to hold a price.

• Market order: orders can be filled at unexpected price but this type is

much more risky since you have to buy stock at the given price.

• Cash account: where funds have to be available prior to placing the

order.

• Margin account: where orders can be placed against stocks to increase

purchasing power.

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ADVANTAGES OF ONLINE TRADING:

• Online trading has made it possible for anyone to have easy and efficient

access to more reports and charts than it was previously possible if one went

to any broker office. Thus we have access to a lot more information.

• Online trading has let room for smaller organization to compete with

multinational organizations since is no longer a legit issue. Being online

does not identify the size of any particular organization therefore this

additional power to the underdogs.

• Online trading has allowed locating themselves where they want as

physical location is not an issue anymore. Companies can establish

themselves according to their gains and losses for instance where tax (sales

and value added taxes) is best suited to them.

• Online trading gives control to individual and they can exercise it over

accounts thus comprehend what is going on when they trade. It is like going

back to school and re-educating on self on how to trade online.

• Individual benefit by saving comparatively a lot more when trading

online as the cost per trade is less.

• Individual can invest in a variety of products like earlier when people

bought bonds mutual funds and stock for long-term basis and sat on them.

Now they can invest in stock and stock index options mutual funds

individual government and even insurance.

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 • Online trading has made it possible for one fid investment option that

were not available on a regular basis like offbeat net stock eccentric unique

things and trading in global market.

INVESTORS REASONS TO TRADE ONLINE:

• They have control over their accounts can make their own decisions and

don’t have to give reasons for their actions. They are independent.

• They have a reason to participate in the market and learn about it.

• It interesting cheap easy fast and convenient.

• A lot of information is online so they can keep up-to-date with what is

happening in the trading world.

• It is the interest of the small investors because rates will be available

immediately across the country execution will be immediately across the

country and execution will be immediate.

• It will give investors a greater choice and better realization.

• The immediate impact will be completion and benefits will accrue to the

investors.

• It will lead to brokerage commissions going down and brokers striving

to increase business afloat.

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 • Investor will now go to place which have better trading conditions and

also members to offer them better facilities.

• They have access to numerous tool to invest and can create their own

portfolio.

HERE ARE THE POSSIBLE DISADVANTAGES:

• When network crashes there will be problems and delays due to a large

influx of rapid online trading criteria.

• Individuals are restricted to first –hand financial guidance. This simple

means that the individual is he/she alone to.

• A tax (sales tax and value added tax) evaluation becomes an issue

especially when you are trading internationally.

• Chances are that one has no idea who one is dealing with on the other

end, so it is advisable to gather all the possible information about the party

one is dealing with. In short do the home work and be prepared.

• Online trading has left individuals open to too much information. This is

harmful since it leaves brokerages wide open to sensitive data.

• According to a study conducted by Mary Rowland careful investor: is

online trading bad for your portfolio the more one trades the less returns one

gets meaning that an addicted trader gets carried away online and being to

trade for too much which cause losses for him/her.

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 • The study also shows that smart investment is better then fast

investment. Simply put speed should be considered to be a major factor

would lead any online trader to think they know the market.

• Individuals think that they are trading with the market directly and what

they are doing but the truth is that even through technology has takes over

the basis rules of trading are the same. It seems that the middleman has been

removed but that is not so. When the individuals click on the mouse his trade

goes through a broker. The communications online pertain to the

intermediary.

• There is a need for more effective communication links over the internet

and the ability of the server to deal with a large volume of visitors.

TRADING SESSION

Trading timings are from 9:00 A.M. to 3:30 P.M. on all 5 days of the trading

period. Monday to Friday is the trading period in all the exchanges. SEBI has

stipulated that all the stock exchanges in India must have same trading period.

BROKER WORK STATION:

At the broker work station the best BBO(Bridge Base Online) the last trading

price the day’s opening price previous day’s closing price highest and lowest

price the weighted average price the total trade value and total trade value will

be available continuously as the BBO for each scrip.Other information will be

available on query from the BWS (Broker work station). These include top

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gainer/losers of the day. Trader-wise scrip wise net position client wise net

position top scrip by the volume/value market summary etc.

The BWS (Broker work station) as a powerful profiling future which enables

each trade to customize his/her screens layouts as is convenient profiles may be

set at the BWS (Broker work station) by the individual users for the scrip’s that

he/she is interested in watching columns of information available ect. Brokers

are also provided with information relating to the companies in the +-matter of

book closure Dividend declarations resolutions in board meeting information

about liquidated companies company report ect.Broker can visualize his

personal details relating to trade done he can have scrip wise details sub broker

wise details and client wise details and can also take the point of daily volume

reports and adjustment reports.

ORDERS

Orders can be done at a time or in a batch mode.

The submitted order will be accepted at the CTS after validation if found any

invalid reason the order is return back to the BWS with the appropriate error

message. If accepted at the CTS it will be added to the local pending order book.

The order will then be taken up for matching if it is a buy order the system tries

to find a sell order which fits the requirement of the buy order when such match

is found a trade gets exchange. Each trade involves two brokers and respective

trades who sent the order.

Both these trades are informed of the trade being executed at their respective

BWS.

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At the BWS the trade is added to the local trade book land the pending quantity

decreased by the trade quantity in the local pending order book.

Order sent by the brokers is two types:

• Good For the Day (GFD)

• Good Till Cancellation(GTC)

Good for the Day

This also called as a market order for an order if the member selects the deal as

good for the day the order is treated as market order. If a “best bid” founds

match with “best order” then the transaction executes. If the match is not found

then after trade time the order gets cancelled that day. Next day he has to place a

new order.

For example if a member wants to purchase 1000 shares of satyam info @400

each through Good for Day order. If the correct match is not found order gets

cancelled automatically and new quotation has been placed the next day.

GOOD TILL CANCELLATION:

This order is forwarded to the last trading day of that settlement period. This is

also called as carry forward order like GFT broker has to select the option of

GTC for the order. If the order finds match with in the trading settlement period.

The order is executed if no match is found the order is cancelled on the last day

of settlement period. This order is not carried forward to the next settlement

period.

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SETTLEMENT OF TRANSACTIONS:

Clearing of transaction in the form of shares and cash is called settlement which

was held in clearing house of stock exchange (for example KOTAK

SECURITIES is a clearance house is member in NSDL (National Securities

Depository Limited). Buyers will take the delivery of shares through the

Depository Participants (DP’S) like KOTAK SECURITIES and others. Finally

the settlement is made by means of delivering the share certificates along with

the transfer deeds. The transferor (or the seller) duly signed transfer deed. It

bears a stamp of the selling broker. The buyer then fills up the certificates fills

up the particulars in the transfer deed. Settlement can done in the following way.

• Spot settlement: Under this method the delivery of securities and

payment for them are affected on the day of the contract itself.

• Rolling settlement: Under this rolling settlement the trading is on

“T+2”, basis i.e. if Monday is trading day then Wednesday is the paying day. In

case on non- delivery the securities will go for auction.

SURVEILLANCE:

Surveillance can be done during the continuous trading session for monitoring

the broker scrip and the market this is referred to as online may be used for

analysis. Analysis and monitoring reports that can generated. For the continuous

trading session the surveillance workstation user can set up a member of alerts

scrip broker or index the workstation profile will be automatically reported to

user.

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 The market event list will be available to the BWS user. During the continuous

trading session details of the scrip broker or index that pass the alter or violate

their circuit breakers are displayed on message window. There are three

messages windows i.e. one for each scrip and index different colors indicate the

importance and BWS user is modified when BWS user is denied access to the

system a number of are available for the SWS user.

PROBLEM AREAS:

When internet trading was first launched in Feb. 2000 the stock markets were

experiencing an unprecedented boom and it held out a lot of promise. However

two years down the line we find the system as failed to deliver up to potential.

The main reasons for declining volume of trading are:

Bearish market:

The poor performance in the online market segment can be attributed to lack of

bull run in the stock market. This is the reason for which the overall trading as

come down. Almost ever since internet trading has started the markets have

remained bearish. This relationship between the mood of the market and the

internet in trading indeed gets reflected in the volumes.

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Poor penetration of the internet:

Besides the bearishness in the equity market another reason for low acceptance

of net trading could be poor penetration of the internet. In India it is a fact that

internet has not been able to spread it’s tentacles in rural areas and small towns.

The very basis of net trading is based on two factors:

1.An equity market in good shape.

2.Deep penetration of the internet.

Poor internet connectivity:

The Indian context the quality of internet connection also comes into play for

determining the reasons for the lack in response. Here we have connectivity

problems and there are instances of clients panicking as they could not execute

their trades. Many times at particularly at places other then Mumbai, sudden

stoppage of electricity result in disconnection.

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Long supply chain:

Incase of conventional or offline trading the chain is small as the clients directly

interact with the brokers. However in case of internet trading the chain is quite

long as it involves a client an internet service provides server stock exchange

depositor and a broker and a problem can rise up at any stage of the chain

breaking down the entire system.

A Costly affair:

Other then the technological hassles there is an element of cost as well. For

active traders doing online trading he has to remain connected all the time and

the cost of connecting through dialup can work out to Rs 3500 per month which

is over above the brokerage and other service charges. This is the reason

offering online trading facility allows the clients to the conventional system as

well in order to retain them. A part from a dealing room most broking houses

have a separate room for the clients. Where the stock exchanges terminals are

kept for their use.

Low investor confidence:

Investor confidence in the country has been badly hurt due to the escalating

IndoPak tensions.This sentiment has got reflected in the stock markets. Which

have gone down. The global recession has also dampened the mood of the stock

market. Although the US economy is showing sings of recovery but tangible

outcome is yet to be felt.

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 DISADVANTAGES OF OUTCRY SYSTEM:

• It lacks transparency.

• The scope of manipulation, speculation and mal practices more.

• The time gap between many of the trading operations used to be met

quickly and easily.

• Signal were more important in the outcry system any member who could

not interpret the buy/sell signal correctly often landed himself in disastrous

situation.

• In audibility was another disadvantage of the outcry system.

MANUAL TRADING

TRADING PROCEDURE BEFORE INTRODUCTION OF ONLINE

TRADING:-

Trading on stock exchange is officially dined in the trading ring. In the trading

ring the space is provided for specified and non- specified sections the members

and their authorized assistants have to were a badge or carry with them on

identity card given by the exchange to enter the trading ring. They carry a sauda

book or confirmation memos duly authorized by the exchange and carry a pen

with them. The stock exchanges operations are floor level are technical in

nature. Non –members are not permitted to enter in to stock market. Hence

various stages have to be completed in executing a transaction at a stock

exchange. The steps involved in this method of trading have given below:

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DEMATERLIZATION:-

Dematerialization is the process by which physical certificates of an investor are

converted to equipment number of securities in electronic from and credited in

the investor account with his DP (Depository). In order to dematerialization his

certifies an investor has to first open an account with a DP (Depository) and

then request for the dematerialization request form which is DP (Depository)

and submit the same along with the share certificated . The investor has to

ensure that he marks “submitted for Dematerialization” on the certificates before

the shares are handed over to the DP (Depository) for demat. Dematerialization

can only be done to those certificates which are already registered in your name

and belong to the list of securities admitted for Dematerialization at NSDL.

Most of the active scrip’s in the market including all the scrip’s of S&P

CNXNIFTY and BSE SENSEX have already joined NSDL. This list is steadily

increasing.

Briefly the process is as follows: after completion of transfer the investor gets

the option to dematerialization such shares. Investor’s willing to exercise this

option sends a Demat request along with the option letter sent by the company

to his DP (Depository). The company or its R&T agent would confirm the

Demat request on its receipt from the DP (Depository) to reduce risk of loss in

transit.

Dematerialized shares do not have any distinctive or certificate number. These

shares are fungible –which means that 100 shares of a security are the same as

any other 100 shares of the security. Odd lost shares certificates can be

dematerialized.

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 Dematerialization normally takes about fifteen to thirty days. To get back

dematerialized securities in the physical form request DP (Depository) for

Rematerialization of the same is made. Rematerialization is the process of

converting electronic shares into physical shares.

BENEFITS OF DEMAT:-

Transacting the depository has several advantages like

• It reduces the risk of bad deliveries, in turn saving the cost and wastage

of time associated with follow up for rectification. This has lead to reduction

in brokerage to the extent of 0.5%by quite a few brokerage firms.

• In case of transfer of electronic shares you save 0.5%in stamp duty. You

avoid the cost of courier/notarization. The need for further follow-up with

your broker for the shares returned for company objection.

• You can receive your bonuses and rights issues into your DA as a direct

credit this eliminating risk of loss in transit.

• You can also expect a lower interest charge for loans taken against

Demat shares as compared to internet for loans against physical shares.

• There is no lost in transit thus the overheads of getting a duplicate copy

in such circumstances is reduces.

• RBI has increased the limit of loans against dematerialized securities as

collateral to Rs.1 per borrower in case of loans against physical securities.

• RBI has also reduced the minimum margin to 25% for loans against

dematerialized securities as against 50% for loans against physical securities.

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 The Padmakshi financial services providing their company swot because they

issuing their company strengths , weakness, opportunities and thereats

SWOT ANALYSIS

STRENTHS

• Strong credibility among investors because of its heritage.

• Excellent reputation among the business society.

• Capability of providing superior customer service.

• Quality research team.

• Easier access to customer due to largest ground network of 280 branded

shares shops in 120 cities.

• Abundant information about economy and companies.

• Ability to attract and retain superior and quality personnel.

• Highly sophisticated infrastructure.

• Efficient research and analysis team, which by interpreting the economy

and company’s performance accurately is enhancing the profitability of the

client.

Weaknesses

• Limited customer appeal as the company product line does not include

mutual funds which is increasingly becoming a preferred customer

investment option.

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 • Inadequate product awareness among the retail investors.

• Limited customer appeal as the company does not have access to the

BSE online space.

• Brand awareness is low in the financial market.

• Promotional activities conducted by the company are not at par with the

other firms.

Opportunities

• Hyderabad covers only 2% of investors which gives huge potential for

the market penetration.

• Bullish phase of the market attracts investing public.

• Access to the BSE online space for the retail investors creates

opportunity to increase clientele base.

• An awareness campaign about online trading creates new market.

Threats:- Availability of unit linked insurance policies (ULIP’S) and mutual

funds in the market.

• Threat of entry is high in this industry as the manpower required is less

and capital requirement is medium.

Conclusion:

28
This either leads to a situation of too much dependency on someone, total

inactivity or sometimes even taking wrong decisions while planning your

investments.

Fortunately, help is at hand through the online investing platforms. Today

technology enables us to completely plan the investing platforms. Today

technology enables you to completely plan your investing needs in the comfort

of your home and at a time you like, all at the click of the mouse.

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OBJECTIVES &

METHODOLOGY

OBJECTIVES OF THE STUDY

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• To know the online screen based trading system adopted by the

PADMAKSHI FINANCIAL SERVICES LTD and about its communication

facilities

• It is to analyze the changes in trading after the exchange shifted from outcry

to online trading system.

• To study the effect of the changing trends in the capital market on the

investor, the broker and on the country to a greater extent, particularly in

Hyderabad.

Internet trading is expected to –

• Increase transparency in the markets.

• Enhance market quality improved liquidity by increasing quote continuity

and market depth.

• Reduce settlement risks due to open trades by elimination of mismatches.

• Provide management information system.

• Introduce flexibility in system so as to handle growing volume easily and to

support nationwide expansion of market activity.

• Besides through internet trading three fundamental objectives of securities

regulation can be easily achieved these are:

• Investor protection

• Creation of a fair and efficient market and

• Reduction of the systematic risks.

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• Some of the brokers offering net trading include ICICI web trade investment

India Geojit securities etc.

METHODOLOGY OF THE STUDY

The uncertainty and the rapid fluctuation in the Indian capital market made

many investors at home and foreign wary about the future of their investments.

So in order to lessen the degree of uncertainty in the market, SEBI introduced

many new trends by making changes in the way the capital market functions by

introducing online trading, rolling settlement, dematerialization of shares, etc.

This project is only an attempt to find the effect of these trends on the Indian

markets. This study is done with reference of PADMAKSHI FINANCIAL

SREVICES LTD.

NEED AND SIGNIFICANCE OF THE STUDY

SEBI in September 1996 has issued guidelines to the stock exchanges to go for

online trading procedure by the end of the year 1996. Following its directions

Padmakshi financial services ltd. has installed the online trading system as on

20th February 1997.

The major need of the study is to know the effectiveness of the online trading

system in comparison with the out cry or mock trading study its advantages &

recommend for beneficial and effective use of system. The study is also includes

the emergence of the depository system in the country to rule out the drawbacks

of the system of physical transfer of the shares

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The present study “to review the on-line trading procedure” a case study of

ONLINE TRADING at PADMAKSHI FINANCIAL SERVICES LTD, as the

exchange has changed its trading style from outcry to on-line (screen based) on

20th February 1997,there is need to asses the performance of the capital market.

SCOPE OF THE STUDY

 This study confines to the trading patterns on equity segment that is a macro level
assessment through published sources. It is used on considerable grounds rather than
finding the trading protocols at micro levels because such patterns are uniform and to
be implemented by both investors and depository system without violation.

 The scope of this project is however expeditious in terms of understanding the

regulatory framework and steps involved in trading

DATA COLLECTION METHOD

The data collection methods include both primary and secondary collection

methods.

Primary method: This method includes the data collected from the personal

interaction with authorized members of Padmakshi Financial Services Limited.

Secondary method: The secondary data collection method includes:

The lectures delivered by the superintendents of respective departments. The

brochures and material provided by Padmakshi Financial Services Limited. The

data collected from the magazines of the NSE, economic time’s etc.various

books relating to the investments, capital market and other topics

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 STATISTICAL TECHNIQUE

MOVING AVERAGE

The Moving Average analysis tool projects values in the forecast period, based
on the average value of the variable over a specific number of preceding
periods. A moving average provides trend information that a simple average of
all historical data would mask. Use this tool to forecast sales, inventory, or other
trends. Each forecast value is based on the following formula.

Where:

• N is the number of prior periods to include in the moving average

• A is the actual value at time j

• Fj is the forecasted value at time j

LIMITATIONS OF THE STUDY

The study is confined to the past 2-3 years and the present system of the trading

procedure in the Padmakshi Financial Services Limited and the study is

confined to cover all the related issues in brief. Online trading procedure only

exhaustive analysis, problems of listing, management of trade, SEBI guidelines

relating there to be not covered due to limited time and to keep the study in

manageable limits.

34
PROFILE OF PADMAKSHI FINANCIAL

SERVICES

35
Company Background

Padmakshi Financial Services Limited was founded in1988 and was positioned

as a research firm.

In 2000 e-broking was started under the brand name of padmakshi.com

Apart from offering online trading in stock market the company offers tax

planning and other financial advisory services.

Brokerage Services

• Trading of equities/derivatives both on Bombay Stock Exchange & National

Stock Exchange

• Commodities & Currencies trading on Dubai Gold & Commodities

Exchange (DGCX)

• Commodity futures on Multi Commodity Exchange (MCX) & National

Commodity & Derivatives Exchange (NCDEX)

• Online and Trade on phone facilities are available.

36
Advisory Services:

 On Investments in Equity

 On both primary and secondary markets

 On both local and offshore

 On mutual funds

 On Real Estate

 On Commodities & Currencies

 On Arbitrage Opportunities

 On Insurance

 On Tax Issues

Custodial services:

Dematerialization is a process of converting securities held in physical form to

electronic receipt form. Trading in dematerialized form is the safest and quickest

option compared to holding securities in physical form.Demat form eliminates

the risks like theft, forgeries etc and paperwork associated with holding of

securities in physical form and makes it very convenient and fast to trade/hold.

In the present scenario, trades executed on exchanges are settled on T+2 basis

i.e. securities have to be delivered on the very same/next day of trade to the

37
clearing corporation. Gradually, it shall move to a settlement on T+1 basis.

Dematerialization makes facilitates better efficiency in the trading process.

As a depository participant of Central Depository Services (India) Ltd.,

Padmakshi offers you a wide range of services like demat/ remat, pledge,

transmission, nomination. It can settle trade on your behalf in case you have in-

house demat accounts through a special mandate for Pay-in Authorization

Products:

• PMS/PIS

• Commodities & Currencies

• Derivatives in Equities & Commodities

• Realty Portfolio

• Offshore portfolio

• Insurance

• Arbitrage

Arbitrage:

• Padmakshi can help you capture the price differentials provided by the

spot/cash and futures market both in equities as well as commodities. It is a zero

risk strategy as positions are hedged simultaneously which can earn you returns

better than fixed income instruments.

38
 • As your arbitrage advisor and commission agent, Padmakshi can enter

into contracts on your behalf and ensure you have no open positions, thereby

taking on the entire administration on your behalf.

Padmakshi Overview

• Operational in equity market since 1988

• Promoter Directors have Combined Experience in the Financial Markets of

over 42 years

• Board of Directors and Team Members Include Well Qualified CAs, MBAs

and a Lawyer

• Turnover of Over 2005-2006: INR 2,919 Crores (USD 630 m)

Padmakshi Team

Professional Team

• –Dealers

• –Derivative strategists

• –Financial research analysts

• –Dedicated Customer relationship managers

• –Support staff

• The team has been able to outperform the market consistently yielding better

yields for its valued clients, both institutional and Retail investors.

39
Padmakshi Clients

Institutions

• life insurance corporation of India

• Unit trust of India

• Industrial development bank of India

• General insurance corp.

Mutual Funds

• Sbi (state bank of India)

• ABN Amro

• Reliance

• Canara bankJM

• Mutual fund

Banks
• Bank of Baroda

• Andhra Bank

• Canara Bank

• Corporation Bank

Others
• Corporate Clients

• High Next Worth Individuals

40
 • Non Resident Indians

• Retail Cl

Padmakshi Group

• Padmakshi Financial Services Pvt. Ltd

Members of Bombay Stock Exchange & National Stock Exchange, Advisory and

Custodial services, Portfolio Management Services, derivates and arbitrage, realty

• Padmakshi Commodities Pvt. Ltd

Members of Multi Commodity Exchange (MCX) &National Commodity &

Derivatives

Exchange (NCDEX). Advisory and arbitrage

• Apex Commodities DMCC

Members of Dubai Gold & Commodities Exchange (DGCX). Deals in currency

and

Commodities, advisory and arbitrage

• FPI-Padmakshi Financial Planning and Wealth Management

Pvt. Ltd.

Financial Planning services and offshore products

• FPI-Padmakshi Insurance Broker Pvt. Ltd.

41
 Insurance brokers for various Life and general insurance providers

Padmakshi’s unique regulatory compliance record: No regulatory

actions against the company, directors or subsidiaries since

inception

Particulars BSE/NSE

MCX/NCDEX

Segments Cash/derivative/debt
Future Market

Investors Grievance cases pending NIL

NIL

Arbitrations cases pending NIL

NIL

Arbitration awards-Pending compliance NIL

NIL

Action by the Disciplinary Committee NIL

NIL

Disciplinary action initiated by the Exchange NIL

NIL

Any legal matter pending NIL

NIL

42
PROCEDURE FOR NET TRADING:-

Step 1: Those investors, who are interested in doing the trading over internet system
i.e. NEAT-IXS, should approach the brokers and get them self registered with the stock

Broker.

Step 2: After registration the broker will provide to them a login name password and
personal identification number (PIN).

Step 3: Actual placement of an order can then be placed by using the place order

window as under:

First by entering the symbol and series of stock and other parameters like

quantity and price of the scrip on the place order window.

Second fill in the symbol series and default quantity.

Step 4: It is the process of review. Thus investor has to review the order placed by
clicking the review option. He may also re-set clear the values.

43
Step5: After the review has been satisfactory the order has to be sent by clicking on

the send option.

Step6: The investor will receive an “order confirmation” message along with the

order number and the value of the order.

Step7: In case the order is rejected by the Broker or the stock exchange for certain
reasons such as invalid price limit an appropriate message will appear at the bottom of

the screen. At present a time lag of about 10 seconds is there in executing the trade.

Step8: It is regarding charging payment for which there is different mode. Some

brokers will take some advance payment room the investor and will fix their trading

limits. When the trade is executed the broker will ask the investor for transfer of funds

by the investor to his account.

Internet trading provides total transparency between a broker and an investor in the

secondary market. In the open outcry system only the broker knew the actually

transacted price. Screen based trading provides more transparency. With online trading

investor can see them sleeves the price at which the deal take place.

The time gap has narrowed in every stage of operation. Confirmation and execution of

trade reaches the investor within the least possible tome mostly within 30 seconds.

Instant feedback is available about the execution. Some of the websites also offer:

• New and research report

• BSE and NSE movements

• Stock analysis

• Freebies

44
 • IPO and mutual fund centers and

• Movements of interaction stock exchanges

STEP BY STEP PROCEDURE IN ONLINE TRADING:

Following steps explain the step by step approach to on-line trading:

• Log on the stock broker’s website

• Register as client/investor

• Fill the application from and client broker agreement from on the

requisite value stamp paper

• Obtain user ID and pass word

• Log on to the broker’s site using secure user ID and password

• Market watch page will show real time on-line market data.

• Trade shares directly you broker’s if by entering the symbol or number

of the security.

• Broker’s server will check your limit in the on-line account and demat

account for the number of shares and execute the trade.

45
 • Order is executed instantly (10-30seconds) and confirmation can be

obtained.

• printed and mailed in 24 hours

• Settlement will take place automatically on the settlement day

• Demat account and the bank account will get debited and credited by electronic

means.

TRADING AND SETTLEMNT AT PADMAKSHI LTD

The NSE first introduced online trading in India. The online trading system imparted a

greater level of transparency and preferred exchange that offered online trading because

of the following factors.

• The ease of operation from the view of the both members and the

investors.

• Increase in the confidence of the investors because at higher level of

transparency.

• Facilities better monitoring of the market by the exchange

• The best price achieved in buying and selling.

All these resulted in ever –increasing volumes on the exchanges offering the online

trading.

TRADING PROCERURE AT PADMAKSHI FINANCIAL

SERVICES LTD

46
Padmakshi deals in buying and selling equity shares and debentures on the National

Stock Exchange (NSE) the Bombay Stock Exchange(BSE) and the Over-the=Counter

Exchange of India (OTCEI)

Padmakshi is providing with a computer and software from their registered stock

exchange. These centers are called “Broker Work Stations” these computers are

connected to the server at the stock exchanges through cable.

The members of broker sitting in his office can send the quotations orders negotiations

deals in house deals auction orders etc through the computer.

The central trading system (CTS) will accept these orders and send it for match.

If there is any mistake in the order CTS will reject the order and send respective error

message to the member concern. All these operations are in built. The main objective of

CTS is to monitor the stock Exchanges operation

Order placed by the broker will be sent for a match and if the match is found suitable

the transaction will be executed. Otherwise the order will be deleted automatically after

completion of trading time the carry forward transaction (good till cancellation) are

forward to the next day. Even if the match is not found with in the prescribed period the

order will not cancel.

DETAILS OF PROCEDURES:

Delivery in : The members who is in PAY-OUT position delivery share

certificates in to clearing house with in the settlement period along with the

delivery Chelan filled in with the details of share certificates which has folio

numbers or distinctive numbers ect.

47
 Delivery out: The buyer of shares who made pay in position will take

delivery of shares from the clearinghouse.

Pry-in: The member who is in paying position shall pay for value of shares

with in the trading settlement period (T+2)

Pay-out: The cheques paid in the clearinghouse will be members who are in

paying position.

All disputes arising between members regarding non-delivery non-payments

good and bad deliveries pertaining to the settlement will be here by KOTAK

SECURITIES and settled by the settlement committee of the exchange.

The given flow chart clearly explains the process of online trading:

Login

Buy transaction Sell transaction

The system will check

The system will check your dp account quantity
buying limit

Rejected order would be Order

Order communicated along with reasons accepted
accepted
Your order is transmitted to exchange for execution

Pending buy orders On execution Pending sell orders

would be displayed on of your orders would be displayed
your screen on your screen

48
You may edit your You may delete your You may edit your You may delete your
pending order pending order pending order pending order

Flashed on your screen

Conformation could be Contract note would be
immediately on execution
sent to your e-mail and sent by mail or hand
mobile delivery

TRADING PROCEDURE OUTCRY SYSTEM

TRADING IN THE STOCK EXCHANGE:

-THE CONVENTION DAY

The broker has to buy or sell securities for which he has received

the orders. For this, the broker or his authorized representatives goes to the stock

exchange. This method is called the open outcry system. Basically the brokers

shout while buying or selling the securities. The floor of the stock exchange is

divided in to a number of markets also known as ‘post pit’ or wing based on

particular securities dealt there.

In the post pit or wing based using ‘open outcry’ method makes an offer or bid

price. For making the necessary baring he quotes his purchase or sale price also

known as offer or bid price. the dealer to whom the price is quoted, quotes his

own price when the quotation of the dealer suits the broker he may loose the

bargain. If he is not satisfied with the quote price he may turn to other dealer.

On the close of the bargain the dealer as well as the broker makes a brief not of

49
the particulars of the deal. Such notes are made on some pad and on it the

number of shares the price agreed upon the name of the party what membership

number ect, are noted.

CHOICE OF BROKER:-

The prospective investor who wants to buy shares or the investors who wants to

sell share and transact business have to act through member brokers only. They

can also appoint their bankers for this purpose as the present regulations.

PLACEMENT OF ORDER:-

The next step is the placing order for the purchase or sale of securities with a

broker. The order is usually placed by telegram, telephone, letter, fax etc or in

person. To avoid delay it is placed generally over the phone. The order may take

any of the form such as At Best Order, Limit Order, Immediate or Cancel Order,

Limited Discretionary Order, and Open Order, stop Loss Order.

EXECUTION OF ORDER OR CONTRACT:-

Orders are executed in the trading ring of the BSE. This works from 11:30 to

2:30 P.M on all working days Monday to Friday and a special one- hour session

on Saturday. The members or the authorized assistants have to be a badge given

50
 by the exchange to enter into the trading ring. They carry a BLOCK BOOK or

conformation memos, which are duly authorized by the exchange when the deal

is struck; both brokers and jobber make a note in their suada block books. From

the sauda book, the contract notes drawn up and posted to the client. A contract

note is written agreement between the broker and his clients for the transaction

executed.

DRAWING UP AND BILLS:-

Both sale and purchase bills are prepared along with the contract note and it is

posted on the same day or the next day. This in a purchase transaction once the

shares are delivered to the client effects payment for the purchase and pays the

stamp fees for transfer a bill in made out giving the total cost of purchase

including other expenses incurred by the broker in price itself. With this the

process ends.

Above mentioned process of the company indicated clearly. So

the next step process of data analysis showing on next page.

LITERATURE REVIEW

A successful trading architecture

Network Magazine India --- Issue of November 2002

51
Online exchanges facilitate faster transactions by providing online trading

portals and brokerage houses ease and flexibility. Here's a look at the core

infrastructure of NSE, BSE, and some trading portals. By Soutiman Das Gupta

As promised by technology visionaries and forecast groups over the last decade,

the Internet has indeed opened up new avenues for conducting business. Stock

exchanges worldwide now conduct a bulk of its business online through its

brokers and partners, a major shift from the traditional method. In developed

countries, almost all exchange transactions are conducted online. The trend has

slowly picked up in India and two of the largest exchanges, the National Stock

Exchange (NSE) and the Bombay Stock Exchange (BSE) have been conducting

online trade successfully for sometime now.

• Make Online Trading Click—Outlook--MAGAZINE |

Nov 7, 2008

The convenience expected from online brokers can prove to be illusory. To keep

it real, you need to do a few things right. ----Veena Venugopal

The big risk in online trading is that of technology. If you want to quickly sell a

share because the prices are going down and the site is ‘temporarily unavailable’

or hangs or refuses to let you log in or execute a transaction, which could be

because of a variety of reasons, you will end up with unnecessary losses. Ensure

that the broker has a back-up option where you can call the customer support

centre and execute the transaction over the telephone.

Always keep an eye on your demat account. Take screen shots or write down the

52
details of your portfolio, especially on days that the stock market has seen

volatile trade and at the end of the month. Some brokers place your shares in the

pool account and trade in them to cover their proprietary positions. Examine the

contract note carefully. Never assume that their calculations of brokerages and

taxes are right, recheck them yourself. While executing buy and sell orders,

open the NSE and BSE websites to cross-check the latest stock prices, don’t go

only by the ticker on your portal.

INVESTING ONLINE

By Neeraj Thivary, India today, Dec, 2007.

In this article Mr. Neeraj Thivari discussed about the perception of the people

towards online trading.

While most of us understand the benefits of investing, we often do not give

enough importance to this process because ‘hassles’ involved and the erroneous

belief that ‘it is not my cup of tea.’

This article explains how investing online can be very easy, convenient and an

informed experience.

Say good bye to hassles of investing offline…

When one has very little time on hand too many option to choose from,

investing can be very daunting experience. One faces several issues while

53
investing offline like maintaining bank and demat accounts separately and

manually, lack of proper information, tools and advice, constant struggle with

the paper work that is generated (try filling an IPO – initial public offer – form

manually), lack of time to plan investments systematically and finally keeping

track of your investment port folio and net worth.

DATA ANALYSIS &

INTERPRETATION
54
 Padmakshi financial investors traded in number of companies, what are
the companies they are traded shows the below table
1 Mahindra satyam computers.

2 Reliance petroliun ltd.

3 Dr.reddy”s labs.

3 Wipro.

4 Infosys.

TECHNICAL ANALYSIS
The padmakshi financial services is dealing with more no of companies for

the study purpose two companies taken how these companies shares are traded.

SATYAM COMPUTERS:

Company Background

Satyam Computers Ltd Company Back ground. Satyam computers services Ltd

(NYSE:”say”) is a leading global consulting and IT services company offering a

55
 wide array of solutions customized for a range of key verticals and horizontal.

From strategy consulting right through to implementing IT solutions for

customer satyam straddles the entire IT space.

Satyam’s network spans 55 countries, across 6 continents. Over 2000 dedicated

and highly skilled IT professionals, work in development centers in India, the

USA, the UK, the UAE, Canada, Hungary, Singapore, Malaysia, China, Japan,

and Australia and Serve over 469 global companies, including over 156 fortune

500 corporations

Table 1 :

Closing value & 5 Day moving average for the month of

December of-MAHINDRA SATYAM COMPUTRER

SERVICES LIMITED BEING TRADED AT THE

PADMAKSHI FINANCIAL SERVICES

Date Close Value 5 day Moving Average

1-Dec-10 235.85
2-Dec-10 233.05
3-Dec-10 230.1 231.19
4-Dec-10 232.55 228.75
5-Dec-10 224.4 229.46
8-Dec-10 223.65 228.31
10-Dec-10 236.6 225.95
11-Dec-10 224.35 226.15
12-Dec-10 220.75 226.72
15-Dec-10 225.4 211.01
16-Dec-10 226.5 200.01
17-Dec-10 158.05 188.42
18-Dec-10 169.35 175.82
19-Dec-10 162.8 158.6

56
22-Dec-10 162.4 153.98
23-Dec-10 140.4 147.21
24-Dec-10 134.95 144.3
26-Dec-10 135.5 143.94
29-Dec-10 148.25 149.89
30-Dec-10 160.6
31-Dec-10 170.15

Source : The above table-1 shows closing value and 5 day moving avg for

the month of dec of mahindra satyam computer services limited.The 3-dec-10

the closing valve is 230.1 and 5 day moving average is 231.19 at the end of the

month it was decreased to 149.89.

closing and 5 day moving average of

MAHINDRA SATYAM COMPUTER LTD
250

200
VALUE

Close Value
150

100 5 day Moving

Average
50

0
0
01
0
01
0

-2
0

01
0

-2
01

ec
01

-2

ec
-2

-D
-2

-D
ec
ec

29
ec

-D

22
D
D

8-

15
1-

DATE

INTERPRETATION:

57
The Stock is showing a downtrend which is a good sign for genuine investors

who go for long term investment rather than for a short-term investment, in this

situation there is no way for speculative investor as the price are continuously

going down.

RELIANCE PETROLIUM LTD:

Company background

The companies was incorporated under the companies act, 1956 on October 24,

2005 as Reliance Petroleum Ltd and obtained its certificate of commencement

of business on November 7, 2005.The company founded to set up a green field

petroleum refinery and polypropylene plant to be located in a special economic

zone in Jamnagar in the state of Gujarat In western India. The proposed refinery

and polypropylene plant will be located adjacent to the existing refinery and

petrochemical complex of the promoter, reliance industries ltd the largest private

sector company In India with assets of over rs. 806 billion approximately as of

march 31, 2005.

RIL is the only private sector company from India to feature in the fortune

global 500.2007: reliance petroleum ltd has informed that Mr., Michael

Warwick ahs been appointed as an additional director of the company.2008:

reliance petroleum ltd has appointed Mr. Joffery reney Pryor, vice president

business development-chevron Corporation, as a nominee director of chevron in

place of Mr.Jagjeet Singh.

58
Table 2 :

Closing value & 5 Day moving average for the month of

December of-RELIANCE PETROLIUM LTD BEING

TRADED AT THE PADMAKSHI FINANCIAL

SERVICES

Date Close Value 5 day Moving Average

1-Dec-10 71.8
2-Dec-10 71.65
3-Dec-10 71.15 72.13
4-Dec-10 73.55 72.67
5-Dec-10 72.5 73.79
8-Dec-10 74.5 76.36
10-Dec-10 77.25 78.48
11-Dec-10 84 81.98
12-Dec-10 84.15 85.17
15-Dec-10 90 86.3
16-Dec-10 90.45 87.23
17-Dec-10 82.9 88.18
18-Dec-10 88.65 87.93
19-Dec-10 88.9 86.7

59
 22-Dec-10 88.75 86.05
23-Dec-10 84.3 85.26
24-Dec-10 79.65 85.16
26-Dec-10 84.7 85.06
29-Dec-10 88.4 85.65
30-Dec-10 88.25
87.25
31-Dec-10

Source : The above table-2 shows closing value and 5 day moving avg for

the month of dec of Reliance petroliam limited.The 3-dec-10 the closing valve

is 71.15 and 5 day moving average is 72.13 at the end of the month it was

Increased to 85.65.

closing and 5 day moving average of

RELIANCE PETROLEIUM LTD

100
90
80
Close Value
70
TIME

60
50 5 day Moving
40 Average
30
20
10
0
0

10
0

/1

/1
/1

/1

9/
5

2
/1

/8

/1

/2

/2
12

12

12

12

12

DATE

INTERPRETATION:

60
 The stock had a down trend initially but has recovered and gives a buy signal.

There is a wide fluctuation in the prices, which indicates the investor to go for

long term investment. Thus it is not advised for short-term investors.

DATA ANALYSIS

THE MAJOR PLAYER IN ONLINE TRADING

PADMAKSHI.COM

PADMAKSHI FINANCIAL SERVICES LTD:

Company Background

Padmakshi Financial Services Limited was founded in1988 and was positioned

as a research firm

In 2000 e-broking was started under the brand name of padmakshi.com

Apart from offering online trading in stock market the company offers tax

planning and other financial advisory services.

Online Account Types

• Investor Terminal : Investors/Students

• Trade Terminal : Day Traders / HNI’s

61
PRICING FOR RETAIL CLIENTS

Investor Terminal

• Account opening : Rs 500

• Demat 1st year : Rs 250

• Initial Margin : Nil

• Brokerage : Trading 0.20% each side + ST

Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS

Trader Terminal

• Account opening : Rs 500

• Demat 1st year : Rs 250

• Initial Margin : 2500

• Min Margin Retainable : 1000

• Brokerage : Trading 0.20% each side + ST

Delivery 0.50% each side + ST

(Negotiable to 0.05% each side % 0.25%)

Account Access Charges:

Monthly Rs 800, adjustable against Brokerage

Yearly Rs 8000, adjustable against brokerage

62
CLASSIC WEBSITE FEATURES

• Facility to integrate choice of four banks/DP/Trading Account

• Instant credit for shares sold from DP

• Automatic pick-up of shares from linked DP for pay-in

• Automatic deposit of shares into linked DP after pay-out

• 4 time leverage on Margin Trades

• Margin Trading available for entire market session

• Slab wise brokerage structure for delivery and margin trades, shortly

• Free calls for order placement on Toll-Free

• Trusted, professional advice of Tele-broker

• Facility to enter after market orders online & Via phone

• Choice of electronic/physical contracts

SPEED TRADE EXE FEATURES

ALL THE FEATURES OF CLASSICS

• Real-time streaming quotes using 2 marker watches

• Trade execution in 2-3 seconds

• Instant order/trade confirmations in the same window

• Hot keys similar to a Broker’s Terminal

• MULTIPLE Tic-by-tic Intra-day charts with multiple indicators

• Availability of 2 ISP & 6 Servers ensuring maximum uptime

63
• Customized alerts based on multiple parameters

SUGGESTIONS
&
CONCLUSIONS

64
SUGGESTIONS

• I recommend the exchange authorities to take steps to educate investors

about their rights and duties. I suggest to the exchange authorities to increase

the investor’s confidences.

• I recommend the exchange authorities to be vigilant to curb wide

fluctuations of prices.

• The speculative pressure is responsible for the wide changes in the price,

not attracting the genuine investors to the greater extent towards the market.

• Genuine investors are not at all interested in the speculative gain as their

investment is based on the future profits, therefore the authorities of the

exchange should be more vigilant to curb the speculation.

• Necessary steps should be taken by exchange to deal with the situations

arising due to break down in on-line trading.

• The online system has to advice the investors at the time of trading

which price can get him a profit for security.

65
CONCLUSION

• Things have changed for the better with the PADMAKSHI FINANCIAL

SERVICES LIMITED going on-line coupled with endeavor to stream line

the whole trading system, repeat over the last 3 to 4 years. New and

advanced technologies have breached geographical and cultural barriers, and

have brought the countrywide market to doorstep.

• In the present Scenario to compete with the Broker’s would require

sound infrastructure and trading as per international standards.

• The introduction of on-line trading would influence the investors

resulting in an increase in the business of the exchange. It has helped the

brokers handling a vast amount of transactions and this can be an efficient

trading, delivering, settlement system with adequate protection to investors.

The trading of PADMAKSHI FINANCIAL SERVICES LIMITED was 50

Lakhs in the last financial year.

• Due to invention of on-line trading there has been greater benefit to the

investors as they could sell/buy shares as and when required and that to with

on-line trading.

• The broker’s has a greater scope than compared to the earlier times

because of invention of on-line trading.

66
• The concept of business has changed today, this is a service oriented industry

hence the survival would require them to provide the best possible service to the

clients.

BIBLIOGRAPHY

67
 BIBLIOGRAPHY

Books:
Investment Management
V.K.Bhalia
Investment Management
Preethi Singh
Security Analysis And Portfolio Management
V.A.Avadhani
Marketing of Financial Services
V.A.Avadhani

• Indian Financial System

- M.Y.Khan

WEBSITES:
www.Padmakshi.com
www.Bseindia.com
www.sebi.com
www.moneycontrol.com
www.moneypore.com
www.nseindia.com
www.kotaksecurities.com

68
69