Project report Submitted in the Partial fulfillment for the award of












I “VAIBHAV VERMA” a Student Of MBA, MANAGEMENT & COMMERCE INSTITUTE OF GLOBAL SYNERGY, AJMER (RAJ). BONANZA PORTFOLIO LTD is my Original Work. declare that the Project Entitled “Demate and online trading . In Partial Fulfillment of MBA Degree Course in



If words are considered as a symbol of approval and token of appreciation then let the words play the heralding role expressing my gratitude

The world of capital market war far from me but I got an opportunity to understand the capital market at LSE. While training I learnt many things about capital market and its structure. So I am very thankful to Ludhiana Stock Exchange association limited for giving me such opportunity.

First of all I thank to that Gracie god who blessed me with all kinds of facilities that had been provided to me for completion of my report.

I am also grateful to Mrs._____________ for permiting me to take the training at bonanza portfolio Ltd.

I acknowledge my deepest sense of gratitude and sincere feeling of in debt ness divine all my faculty richa sharma members (lecturer ) under whose guidance and through their sustained efforts and encouraging attitude IU was able to complete my project. It would have been difficult to achieve the results in such a short span of time.

I want to express my sincere gratitude to all the staff members of LSE for spending their precious time and sharing the value able information with me and in helping my project to be a success.


B.A. In order to achieve positive and concrete results. the exposure of real life situation existing in corporate world is very much needed. It was my fortune to get training in a very healthy atmosphere. I took training in in Bonanza portfolio Ltd located in Ajmer. This report is the result of my 45 days of summer training in Bonanza portfolio Ltd. this practical training is required. To fulfill this need. 1 . as a part of M. it is important to develop managerial skills. The subject of my report is. along with theoretical concepts.Online trading. I got ample opportunity to view the overall working of the stock exchange.PREFACE For management career.

DECLARATION………………………………………………… 2 ACKNOWLEDGEMENT……………………………………….. Page no.NO..CONTENTS S.4 CHAPTER-1 INTRODUCTION OF STUDY………………………………………………..5 CHAPTER-2 • LITERATURE REVIEW………………………………………9 CHAPTER-3 • COMPANY PROFILE…………………………………………55 CHAPTER-4 • DATA & INTERPRETATION ANALYSIS……………… 60 CHAPTER-5 1 .3 PREFACE………………………………………………………….

. 1996.To overcome these problems physical dealing in securities should be eliminated . Dematerialization helps to overcome these problems as well as reduces the transaction time as compared to the physical segment.• • CONCLUSIONS…………………………………………………72 SUGGESTIONS…………………………………………………73 CHAPTER-6 BIBLIOGRAPHY………………………………………………………………. advantages and problems of dematerialization. Depository participant is a representative of the depository . an investor has the option to hold shares either in physical or electronic form . It is similar to a bank where an investor opens an account with any of the depository participants. The Indian Stock markets have seen a major change with the introduction of depository system and scrip less trading mechanism. According to the Depositories Act. 1 . The Indian stock market introduced the system of dematerialization recognizing the need for scrip less trading. forgery of certificates etc.The process of converting the physical form of shares into electronic form is called dematerialization or in short demats. delay in receipt of securities and inadequate infrastructure in banking and postal segments to handle a large volume of application and storage of share certificates .76 • CHAPTER – 1 INTRODUCTION DEMATERIALIZATION: TO STUDY Dematerialization is the process of converting the physical form of shares into electronic form.The DP maintains the investors securities account balances and intimates him about the status of holdings.75 Questionnaire………………………………………………. There were various problems like inordinate delays in the transfer of share certificates. The converted electronic data is stored with the depository from where they can be traded.. The article discusses the procedures. Prior to dematerialization the Indian stock markets have faced several problems like delay in the transfer of certificates.

One of the measure attractions of online trading is the wealth of free commentary and analysis about stock market and global economy. the customer can transact with the help of mouse click and his visits to the neighborhood broker will become a thing of the past. NEED OF STUDY: With the emergence of the internet in everyday business. which will route client orders to exchanges trading system for execution of trade on stock exchange (NSE and BSE).Whether we are buying a mutual fund. • It can be done from home at any desired fixed hours of the investor. An important catalyst behind the emergence of thriving online brokerage system has been the buoyant stock market. • The investments made are safe and secured and profit is earned at proper time without any dispute. Our needs will determine which online broker is best for us. Find the right depository to provide with an online trading account can be difficult. Kotakstreet and India Info line’s 5paisa. Even the older generation is adapting the online trading route. In India presently online trading can take place through order routing system. Any investor with an ounce of market saviness can extract all the data needed to make trading decisions and complete the trades. India Bulls. Online trading brings in total transparency between broker an investor in case of secondary marketoperation. HDFC Securities. 1 . • The processing of the order is executed at proper timings as the servers of the online trading portal are linked to the selected banks and stock exchanges though out twenty four hours. but many banks and companies offer excellent services for online trading. One can trade online with e-brokerage such as ICICI Direct.ONLINETRADING Online Trading is an easy way to buy and sell shares from the comfort of one’s place instead of trading through individual stockbroker and broking firms. investing in commodities market or any other transaction can be performed with minimal fuss.com. the significance of the online stock market trading broker has gone up.

To review the changes that Online trading brought when compared with the previous systems. To know the reasons for the introduction of online trading and their Benefits. 1 .• Online trading updates are also provided to the investors and also about the present grade of their orders either through the interface or e-mail. magazines of the Net worth and different books issues of this study.. OBJECTIVES OF STUDY: • • • • To Study & understood the concept of Online trading. To know the time information & importance & the role played by the stock exchanges in the process of online trading. RESEARCH METHODOLOGY OF THE STUDY: DATA COLLECTION METHODS The data collection methods include both the primary and secondary collection methods  Primary collection methods: This method includes the data collection from the personal discussion with the authorized clerks and members of the Net worth. Also the data collected from the news. • The investors increase shares and make development to the company.  Secondary collection methods: The secondary collection methods includes the lectures of the superintend of the department of market operations and so on.

These Limitations can be in terms of: • There is lack awareness among people about investing in stock market. LIMITATIONS OF STUDY: A good report tells us the results of the study. • Limitations towards Demat and online trading confined to keep the study in manageable limits. Many Online stock trading companies came but initially due to lack of Online Trading some Companies Vanished and some survived. a big boom has been witnessed in the Indian stock Market when the market showed the coming up of Online Trading System. hence not providing their true opinions. But every project has its own Limitations. • Most of people are not using technology and Internet is growing still it is not at the required level. The Companies which are survived are getting the handsome returns also attracting the foreign Investment Companies. And since the year 2000. • Most people are comfortable with traditional system in small towns and like to trade from their respective brokers. And also provides huge growth prospects. • Some of the respondents who did not do Online trading were able to respond only to some questions. So people who are aware of such things were found in specific areas for survey purposes. Now a days this sector is facing cut-throat Competition.SCOPE OF STUDY: The study is limited to “Demat and Online Trading”. CHAPTER – 2 REVIEW OF LITERATURE INTRODUCTION 1 .

the number of securities exchanges in India became eight – including Mumbai. Ahmedabad and Kolkata. Scope of the India Financial Market –The financial market in India at present is more advanced than many other sectors as it became organized as early as the 19th century with the securities exchanges in Mumbai. It consists of term lending institutions and investing Institutions which mainly provide long term funds. FDIs. Delhi. 2. It was at this time that India was under the rule of the East India Company. asset management segment as well. it happens to be one of the oldest across the globe and is definitely the fastest growing and best among all the financial markets of the emerging economies. The history of Indian capital markets spans back 200 years. Capital market. The financial market used to give financial services to the Industries The NSE provides exposure to investors into two types of financial Markets: 1. Kanpur. Ahmedabad and Kolkata. Apart from these three exchanges. Capital market: Refers to all the facilities and Institutional arrangements for borrowing and lending of term funds. Money market. The capital market of India initially developed around Mumbai. Today there are 23 regional securities exchanges in India. banking and insurance and the pension sectors. Bangalore and Pune exchanges as well. With all these elements in the India Financial market. In the early 1960s. Capital market has its growth includes: 1 . with around 200 to 250 securities brokers participating in active trade during the second half of the 19th century. around the end of the 18th century. there was the Madras. It does not deal in capital goods but is concerned with the raising of money capital.India Financial Market the India Financial market comprise of talks about the primary market. alternative investment options.

co-operative banks and other agencies which supply only short term funds. Secondary Market: The market where securities are traded after they are initially offered in the primary market. Primary Market: Refers to the raising of new capital in the form of shares and debentures. Most trading is done in the secondary market. An organized market for used securities. over-the-counter markets. For the management of the company. Both the markets are important. It consists of 1 . Industrial Securities Market has been further divided into two markets they are: A. To explain further. but the new issues market is much more important from the point of view of economic growth.Secondary Market. the secondary market provides an efficient platform for trading of his securities. Secondary market comprises of equity markets and the debt markets. It also deals with the financial assets that constitute near money which means that the assets can be converted into cash quickly with minimum transaction cost and without a loss in value. Secondary equity markets serve as a monitoring and control conduit—by facilitating value-enhancing control activities. Primary Market.1) Gilt-edged Securities Market 2) Industrial Securities Market 3) Development Banks and 4) Financial Services. while Secondary Market deals with securities already issued by companies. Majority of the trading is done in the secondary market. For the general investor. Money market: Money Market is a market for short-term funds. National Stock Exchange NSE. It consists of commercial banks. bond markets. Bombay Stock Exchange (BSE). B. which can be used for overnights to one year duration. it is trading in previously issued financial instruments. residential mortgage loans. and aggregating information (via price discovery) that guides management decisions. enabling implementation of incentive-based management contracts. governmental guaranteed loans etc Secondary Market refers to a market where securities are traded after being initially offered to the public in the primary market and/or listed on the Stock Exchange.

• • Organized Money Markets.1992 Formation of National stock exchange 1 . Treasury Bill Market. And Un Organized money markets The Call Money Market. Commercial paper and Certificate of deposits. INDIAN CAPITAL MARKET AT GLANCE 18 00 18 50 18 60 Trading of shares of east India company in Kolkata And Mumbai Joint stock company came into existence Speculation and feverish dealing in securities Formulation of stock exchange of Mumbai 20 century th 18 75 19 08 19 39 19 40 19 56 19 57 19 88 19 91 19 92 19 93 18 Formulation of Ahmadabad stock exchange 94 Formulation of Calcutta stock exchange Formulation of Lahore and madras stock exchange Formulation of U. Collateral Money market.P and Delhi stock exchange Securities contract and regulation act enacted Scam of Haridas Mundhra Securities and exchange board of India set up Scam of MS Shoes SEBI given power Under SEBI act.

408 points at the end of the session.from its all time high existence 1 .the highest intraday fall of 1100 BSE reaches the level of BSE touches all time high in January 2008 Sensex saw its highest ever loss of 1.19 95 19 95 19 97 19 98 HARSHAD MEHTA Scam SESA GOA Scam CRB scam BPL And Videocon Scam 21 st century 200 0 200 1 200 2 200 2 200 3 200 5 200 6 200 7 200 8 200 8 200 8 Depositories came into (electronic form of shares) Ketan Parekh scam Start of rolling settlement and banning of Badla trading Introduction of T+3 settlement in April Introduction of T+2 settlement in April BSE Sensex touches all time high 6954 in January BSE Sensex touches all time high 12500. Sexsex saw its 15 month low.

debentures. the Indian stock markets are at par with international standards.O. Securities are defined as any monetary claims (promissory notes or I. DEFINATION OF STOCK EXCHANGE: Stock exchange is an organized market place where securities are traded. Indian stock markets are one of the most dynamic and efficient stock markets in Asia. like Bombay Stock Exchange National Stock Exchange.200 9 Sexsex saw its down trend & highest ever loss because of Satyam case. They are tradable on the stock exchange. The two national exchanges operating in India are the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). bonds and etc. Under the Securities Contract Regulation Act of 1956. Chennai. So are the case shares of companies. are permanently recognized while a few are temporarily recognized.U) and also include shares. trading in securities permitted to be traded would be in the normal trading 1 . if these securities are marketable as in the case of the government stock. semi-government bodies. Hyderabad and Bangalore etc. The above act has also laid down that trading in approved contract should be done through registered members of the exchange. major stock exchanges. These securities are issued by the government.. STOCK MARKETS IN INDIA: A stock market is a marketplace where organized exchange (buying and selling) of stocks or equities takes place. Delhi. These exchanges are well equipped with electronic trading platforms and handle large volume of transactions on a daily basis. As referred to earlier there are at present 23 such recognized stock exchanges in India.Inter-Connected Stock Exchange. Calcutta. As per the rules made under the above act. they are transferable by endorsement and alike movable property. Of these. securities’ trading is regulated by the Central Government and such trading can take place only in stock exchanges recognized by the government under this Act. public sector undertakings and companies for borrowing funds and raising resources. In terms of the make up and overall dynamics.

hours (09:15 A. Except in those deals meant for delivery on spot basis. settlement of disputes. The Bangalore Stock Exchange was recognized in 1963. Delhi. After independence. Hyderabad. which is now reduce to 15 days.30 P. rules of trading. The brokers organized an informal association in Mumbai named “The Native Stock and Share Brokers Association in 1875”. Increased activity in trade and commerce during the First World War and Second World War resulted in an increase in the stock trading. government took keen interest to regulate the speculative nature of stock exchange working.(Reduced to 2 days in demat trading) D. After the American Civil War (1860-61) due to the share mania of the public. The securities contracts (Regulation) rules of 1957 laid down the condition for such trading. HISTORY OF STOCK EXCHANGE IN INDIA The origin of the Stock Exchanges in India can be traced back to the later half of 19th century. Contracts approved to be traded are the following: A. as between the members and of the members with reference to their clients. Hand deliveries deals for delivering shares within a period of 7 to 14 days from the date of contract. C.later evolved as Bombay stock exchange. B. Special Delivery deals for delivering of shares for specified longer periods as may be approved by the governing board of the stock exchange. In that direction. Spot delivery deals are for deliveries of shares on the same day or the next day as the payment is made. the trading hours. etc. Delivery through clearing for delivering shares with in a period of two months from the date of the contract. stock exchanges established at Mumbai. all the rest are to be put through by the registered brokers of a stock exchange. Ahmedabad and Indore. 1 . At present there are 23 Stock Exchanges. Chennai.M) on working days in the trading ring. the number of brokers dealing in shares increased. as specified for trading purpose. this gave powers to Central Government to regulate the stock exchanges. securities and Contract Regulation Act 1956 was passed. World wide depression affected them most of the Stock Exchanges in the early stages had a speculative nature of working without technical strength. The Growth of Stock Exchanges suffered a set after the end of World War. Further to develop secondary markets in the country.M to 3.

This helps the investors to make the better decision. investors are willing to subscribe to the initial public offering (IPO). Trading posts are assigned for different securities where by and sell activities of securities took place. Fixation of Prices: Price is determined by the transactions that flow from investors demand and the supplier’s preferences. Ensures safe and fair dealings: The rules. In the floor trading system. regulations and bylaws of the Stock Exchanges provide a measure of safety to the investors. This makes the corporate more concerned with its public image and tries to maintain good performance. The speed of the new information reflected on the prices was rather than the investors. The Setting up of NSE and OTCEI (Over the counter exchange of India with the screen based trading facility resulted in more and more Sock exchanges turning towards the computer based trading. Handouts. floor trading took place in all Stock Exchanges. This stimulates the capital formation. The negotiability and transferability of the securities.Till recent past. Directory of Corporate Information is useful for the investor’s assessment regarding the corporate. FUNCTIONS OF STOCK EXCHANGE Maintain Active Trading: Shares are traded on the stock exchanges. 1 . the trade takes place through open outcry system during the official trading hours. They publish the share prices traded on their basis along with the volume traded. The prices may vary from transaction to transaction. Transactions are conducted under competitive conditions enabling the investors to get a fair deal. Dissemination of Information: Stock Exchanges provide information through their various publications. System). BSE introduced the screen based trading system in 1995. A continuous trading increases the liquidity or marketability of the shares traded on the stock exchanges. Aids in financing the Industry: A continuous market for shares provides a favourable climate for raising capital. Usually the traded prices are made known to the public. Performance Inducer: The prices of stocks reflect the performance of the traded companies. enabling the investors to buy and sell securities. This system needs a face – to – face contact among the traders and restricts the trading volume. which known as BOLT (Bombay on – line Trading. handbooks and pamphlets provide information regarding the functioning of the Stock Exchanges.

investors and brokers. brokers. Continuous internal audit safeguards the investors against unfair trade practices. 1 .Self-regulating organization: The Stock Exchanges monitor the integrity of the members. listed companies and clients. It settles the disputes between member brokers.

REGULATORY FRAME WORK This Securities Contract Regulation Act. According to SEBI Act. provides a comprehensive legal framework. It has the responsibility of preventing undesirable speculation. Ministry of finance: The Stock Exchange division of the Ministry of Finance has powers related to the application of the provision of the SCR Act and licensing of dealers in the other area. 1956 and Securities and Exchange board of India (SEB1) Act. 1992. It has powered to grant recognition to the Stock Exchange and regulation of their operations. The Ministry of Finance has the appellate and the supervisory power over the SEBI. Ministry of Finance has the power to approve the appointments of executives chiefs and the nominations of the public representatives in the government Boards of the Stock Exchanges. A 3-tier regulatory structure comprising the ministry of finance. SEB1 and the Governing Boards of the Stock Exchanges regulates the functioning of Stock Exchanges. The Securities and Exchange Board of India 1 .

The board nominates three public representatives. other security and mutual funds.The Securities and Exchange Board of India even though established in the year 1988. C. The retired member can offer himself for election if he is not elected for two consecutive years.The Governing Board of stockexchanges: The Governing Board of the Stock Exchange consists of elected members of directors. he should refrain offering himself for another two years. . by laws and regulations of the Stock Exchange substantial powers to the executive director for maintaining efficient and smooth day-to day functioning of Stock Exchange. Rules. Takeovers are also monitored by the SEBI has the multi pronged duty to promote the healthy growth of the capital market and protect the investors. a wide variety of powers are vested in the hands of SEBI. Registration and regulation of market intermediaries are also carried out by SEBI. Received statutory powers only on 30th January 1992. One third of the elected members retire at annual general meeting (AGM). The Governing body of the Stock Exchange consists of 13 members of which A. SEBI has the powers to regulate the business of Stock Exchanges. 1 Exchange. Six members of the Stock Exchange are elected by the members of the Stock Central Government nominates not more than three members. E. If a member serves in the governing body for two years consecutively. D. government nominees and public representatives. The Governing Board has the responsibility to maintain and orderly and wellregulated market. Under the SEBI Act. B. SEBI nominates persona not exceeding three and The Stock Exchange appoints one Executive Director. It has responsibility to prohibit the fraudulent unfair trade practices and insider dealings.

if they have not held for two consecutive years. They can offer themselves for re-election. The office tenure for the president and vice-president is on year. VARIOUS STOCK EXCHANGES IN INDA: List of Stock Exchanges in India » Bombay Stock Exchange » National Stock Exchange » Regional Stock Exchanges » » » » » » » » Ahmedabad Bangalore Bhubaneshwar Calcutta Cochin Coimbatore Delhi Guwahati 1 .The members of the governing body elect the president and vice-president. It needs to approval from the Central Government or the Board. In that case they can offer themselves for re-election after a gap of one-year period.

the National Stock Exchange of India launched S&P CNX Nifty and CNX Junior Indices that make up 100 most liquid stocks in India. After a few years of operations. Capital market reforms in India and the launch of the Securities and Exchange Board of India (SEBI) accelerated the incorporation of the second Indian stock exchange called the National Stock Exchange (NSE) in 1992. the NSE has become the largest stock exchange in India . CNX Nifty is a diversified index of 50 stocks from 25 different economy sectors. In 1996. The Indices are owned and managed by India Index Services and Products Ltd (IISL) that has a consulting and licensing agreement with Standard & Poor's. THEY ARE: 1) NSE 2) BSE NATIONAL STOCK EXCHANGE The National Stock Exchange of India (NSE) situated in Mumbai .is the largest and most advanced exchange with 1016 companies listed and 726 trading members. Today the NSE takes the 14th position in the top 40 futures exchanges in the world. Three segments of the NSE trading platform were established one after another. Finally. the Futures and Options segment began operating in 2000.» » » » » » » » » » » » » Hyderabad Jaipur Ludhiana Madhya Pradesh Madras Magadh Mangalore Meerut OTC Exchange Of India Pune Saurashtra Kutch UttarPradesh Vadodara AMONG THESE STOCK EXCHANGES THERE ARE TWO IMPORTANT. The Wholesale Debt Market (WDM) commenced operations in June 1994 and the Capital Market (CM) segment was opened at the end of 1994. 1 .

To provide a fair. SBI. ICICI. the ownership as well as the management does not have a right to trade on the Exchange. To establish a nation wide trading facility for equities. Corporation Bank. Oriental Bank of Commerce. 5). Punjab National Bank. efficient and transparent securities market to investors using an electronic communication network. 1 .In 1998. Infrastructure Leasing and Financial Services. Only qualified traders can be involved in the securities trading. To ensure equal access investors all over the country through network. Capital Market (CM). IFCI. Canara Bank. 4). S&P CNX Nifty is a well diversified 50 stock index accounting for 22 sectors of the economy. appropriate communication NSE Nifty: The S&P CNX Nifty (nicknamed Nifty 50 or simply Nifty). Indian Bank. GIC. which is divided into three segments: Wholesale Debt Market (WDM). It is used for a variety of purposes such as benchmarking fund portfolios. The NSE has also proved its leadership in the Indian financial market by gaining many awards such as 'Best IT Usage Award' by Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999). is the leading index for large companies on the National Stock Exchange of India. the National Stock Exchange of India launched its web-site and was the first exchange in India that started trading stock on the Internet in 2000. 3). The main objectives of NSE are as follows 1). Bank of Baroda. Union Bank of India. index based derivatives and index funds. debt and hybrid instruments 2). To meet current international standards of securities market. in the totally de-mutualized Exchange. However. LIC. To enable shorter settlement cycle and book entry settlement system. and Futures & Options (F&O) Market. The NSE is one of the few exchanges in the world trading all types of securities on a single platform. The NSE is owned by the group of leading financial institutions such as Indian Bank or Life Insurance Corporation of India. Promoters of NSE: IDBI. Stock Holding Corporation fo India and SBE capital market are the promoters of NSE.

e. IISL have a consulting and licensing agreement with Standard & Poor's (S&P). i. NSE and CRISIL.Nifty was developed by the economists Ajay Shah and Susan Thomas. Thus. then at IGIDR. who are world leaders in index services. 'N' stands for NSE and X stands for Exchange or Index. Later on. NSE other indices: • • • • • • • S&P CNX Nifty CNX Nifty Junior CNX 100 S&P CNX 500 CNX Midcap S&P CNX Defty CNX Midcap 200 BOMBAY STOCK EXCHANGE: 1 . 'C' stands for CRISIL. (IISL). The S&P prefix belongs to the US-based Standard & Poor's Financial Information Services. CNX stands for CRISIL NSE Indices. CNX ensures common branding of indices. IISL is India's first specialized company focused upon the index as a core product. which is a joint venture between NSE and CRISIL. to reflect the identities of both the promoters. it came to be owned and managed by India Index Services and Products Ltd.

The Stock Exchange.The Bombay Stock Exchange Limited (formerly. The BSE SENSEX (Sensitive index). or BSE) is the oldest stock exchange in Asia. India. 1 . when it was replaced by an electronic (eTrading) system named BOLT.or the BSE Online Trading system. was formally organized as the Bombay Stock Exchange (BSE).In January 1899. Mumbai. After the First World War. It is located at Dalal Street. 33. also called the BSE 30. and has a significant trading volume. the BSE was shifted to an old building near the Town Hall. the stock exchange moved into the Brokers’ Hall after it was inaugurated by James M MacLean. In 2005. 2005 (and its name was changed to The Bombay Stock Exchange Limited).600 Indian companies listed with the stock exchange. 1875. it is among the 5 biggest stock exchanges in the world in terms of transactions volume. the status of the exchange changed from an Association of Persons (AoP) to a full fledged corporation under the BSE (Corporatization and Demutualization) Scheme . History: An informal group of 22 stockbrokers began trading under a banyan tree opposite the Town Hall of Bombay from the mid-1850s. popularly called The Bombay Stock Exchange. Mumbai. As of 2005. There are around 5. the Government of India recognized the Bombay Stock Exchange as the first stock exchange in the country under the Securities Contracts (Regulation) Act. Bombay Stock Exchange was established in 1875. In 1956. is a widely used market index in India and Asia. As of October2006. the market capitalization of the BSE was about Rs.1995.4 trillion (US $ 730 billion).

A single indexed number is used to represent the results of this calculation in order to make the value easier to work with and track over time.BSE Sensex: The BSE SENSEX (also known as the BSE 30) is a value-weighted index composed of 30 scrips. From September 2003. with the base April 1979= 100. SENSEX is not only scientifically designed but also based on globally accepted construction and review methodology. The growth of equity markets in India has been phenomenal in the decade gone by. the bourses in India witnessed a similar frenzy in the 'TMT' sectors. It is much easier to graph a chart based on indexed values than one based on actual values. Right from early nineties the stock market witnessed heightened activity in terms of various bull and bear runs.other Indices: Apart from BSE SENSEX. The "free-float Market Capitalization-Weighted" methodology is a widely followed index construction methodology on which majority of global equity benchmarks are based. the SENSEX is calculated on a free-float market capitalization methodology. first compiled in 1986 was calculated on a "Market Capitalization-Weighted" methodology of 30 component stocks representing a sample of large. which is the most popular stock index in India. BSE website and news wire agencies. The set of companies which make up the index has been changed only a few times in the last 20 years. The index is widely reported in both domestic and international markets through print as well as electronic media. An index of a set of combined variables (such as price and number of shares) is commonly referred as a 'Composite Index' by statisticians. BSE . One can identify the booms and bust of the Indian equity market through SENSEX. The base year of SENSEX is 1978-79. As per this methodology. These companies account for around one-fifth of the market capitalization of the BSE. well-established and financially sound companies. SENSEX. BSE uses other stock indices as well: • • • • • BSE BSE BSE BSE BSE 500 PSU MIDCAP SMLCAP BANK 1 . (The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company). SENSEXcalculation: SENSEX is calculated using a "Market Capitalization-Weighted" methodology. More recently. The SENSEX captured all these happenings in the most judicial manner. the level of index at any point of time reflects the total market value of 30 component stocks relative to a base period. . The values of all BSE indices are updated every 15 seconds during the market hours and displayed through the BOLT system.

They can offer themselves for re-election. Received statutory powers only on 30th January 1992. If a member serves in the governing body for two years consecutively. The board nominates three public representatives. SEBI has the powers to regulate the business of Stock Exchanges. other security and mutual funds. Takeovers are also monitored by the SEBI has the multi pronged duty to promote the healthy growth of the capital market and protect the investors. SEBI GUIDELINES TO SECONDARY MARKETS: 1 . he should refrain offering himself for another two years. The Governing Board of stock exchanges: The Governing Board of the Stock Exchange consists of elected members of directors.Central Government nominates not more than three members. It has responsibility to prohibit the fraudulent unfair trade practices and insider dealings. In that case they can offer themselves for re-election after a gap of one-year period. government nominees and public representatives. F. H. One third of the elected members retire at annual general meeting (AGM). The Governing Board has the responsibility to maintain and orderly and well-regulated market The Governing body of the Stock Exchange consists of 13 members of which Six members of the Stock Exchange are elected by the members of the Stock Exchange. by laws and regulations of the Stock Exchange substantial powers to the executive director for maintaining efficient and smooth day-to day functioning of Stock Exchange. SEBI nominates persona not exceeding three and The Stock Exchange appoints one Executive Director. Under the SEBI Act. a wide variety of powers are vested in the hands of SEBI. The office tenure for the president and vice-president is on year. if they have not held for two consecutive years. Rules. Registration and regulation of market intermediaries are also carried out by SEBI. It needs to approval from the Central Government or the Board. The retired member can offer himself for election if he is not elected for two consecutive years. The members of the governing body elect the president and vice-president.The Securities and Exchange Board of India The Securities and Exchange Board of India even though established in the year 1988. G.

Under the SEBI Act. SEBI has the powers to regulate the business of Stock Exchanges. Registration and regulation of market intermediaries are also carried out by SEBI. other security and mutual funds. a wide variety of powers are vested in the hands of SEBI. Takeovers are also monitored by the SEBI has the multi pronged duty to promote the healthy growth of the capital market and protect the investors MANUAL MODE OF TRADING: TRADING PROCEDURE BEFORE ONLINE THE TRADING RING: 1 . It has responsibility to prohibit the fraudulent unfair trade practices and insider dealings.The Securities and Exchange Board of India even though established in the year 1988. Received statutory powers only on 30th January 1992.

At present there are 4500 authorized brokers in ISE. bankers can become members of stock exchange as per the present regulations. fax etc.00 A. 1 .Thisworks from 12:00 noon to 2:00 p. Small ones out their business personally. Since. They carry a Sauda book or confirmation memos duly authorized by exchange. Non-members are not permitted to enter into stock market. immediate or cancel order.Trading on stock exchanges is officially done in the ring for a few hours from 11.CHOICE OF BROKER: The prospective investor who wants to buy shares or the investor who wants to sell his shares cannot enter into hall of the exchange and transact business.m discretionary order on all working days from Monday to Friday and a special hour session on Saturday. discretionary order. They have to act through only member brokers. ENTRY OF ORDER INTO THE BOOKS: After receiving the order. various stages have to be completed in executing a transaction at a stock exchange. To avoid delay it is placed generally over the phone. In the trading ring space is provided for specified and non-specified sections. letter. Trading before or after official hour is called KERB TRADING. Such people’s can ensure prompt and quick execution of a transaction at the possible price. Orders are executed in the trading ring of the ISE. limited discretionary order. The stock exchanges operations at floor level are highly technical in nature. EXECUTION OF ORDER: Big brokers transact their business through their authorized clerk. The steps involved in the methods of trading have been given below: A.. The orders may take any one of the forms such as at best order.M. the member enters them in his books and the purchase and sale orders are distributed among his assistants to handle them separately in non-specified and odd-lots. or in person. open order and stop loss order. telephone. The order is usually by telegram. They can also appoint their bankers for this purpose. Hence. So.30P. The members of their authorized assistants have to wear a badge or carry with them identify cards given by the exchange to enter the trading ring.M to 2. limit order. PLACEMENT OF ORDER: The next step in planning of order for the purchase or sale of Securities with the broker. the first task in transacting business on stock exchanges is to choose a broker of repute or banker.

. PLACING ORDER WITH THE BROKER:  The next step is placing an order for the purchase/sale of securities with the broker. net rate. number of shares bought/sold. the brokerage chargeable. he may make a counter bid/offer. A contract note is a written agreement between the broker and his client for the transaction executed. The prices at which different scrips are traded on a particular day published on the next day in the newspapers. it is prepared in a prescribed from and a copy of it is also sent to the client. name of the company. Once the transaction is finalized. the deals are recorded in a Chaupri Rough notebook or transaction note or confirmation memos. etc. The order placed may be any of the following varieties (largely classified on the basis of price limits that it imposes.The floor of the stock exchange is divided into number of markets (pits) according to the nature of security deal in. In case the quotation is not acceptable to him. The details are recorded in these books also. fax. which are maintained separately for the ready delivery contracts. Ultimately the bargains may be closed at a price mutually acceptable to both the parties. The order is usually placed over telephone. The authorized clerk/broker goes to the pit and jobbers offer two way quotes for the scrips they deal in.). If the quotation is not acceptable to the brokers. It can also take the form of telegram or letter or in person. the authorized clerks enter the particulars of the business transacted during a particular day in ‘Kacha Sauda Book’ they are transferred to ‘Pucca Sauda Book’. PREPARATION OF CONTRACT NOTES Usually. It contains the details of the contract made for the purchase/sale of Securities. Then the broker/authorized clerk prepares a contract note. they act as market makers and provide liquidity to the market.  AT BEST ORDER (OR) BEST RATE ORDER: 1 . Soudha block books or confirmation memos are provided by the stock exchange. The system has been designed to get the bet lids and offers from the jobber’s book as well as the best buy and sell orders from the book. An authorized representative of the stock exchange is also present in the hall to supervise the trading. All bargains on the stock exchanges are settled by word of mouth and there is no written contract signed immediately by the parties concerned. the broker may go to another dealer and make a bargain.

it does not specify any price.”.100”.  OPEN ORDER: It is an order to buy or sell without fixing any time or price limit on the execution of the order. @Rs.  LIMIT ORDER: “Buy 100 XYZ Ltd.“Buy 1000 XYZ ltd.. These are executed very fast as there is no price limits. How much discretion is implied depends on how the broker and client define around. The price can be a little above Rs 100. it is an order for the purchase of shares at a specified price by the client.  NET RATE ORDER: “Buy 1000 XYZ Ltd. around Rs. 10 immediately sell of the securities /shares. Thus an attempt is made to limit the loss of sudden unfavorable shift in the market. DISADVANTAGES OF MANUAL TRADING: 1) Manual records are very difficult to be maintained safe 2) Manual records are subject to greater human error 1 . At Rs 100”.  MARKET RATE ORDER: Market rate is net rate plus brokerage for purchase and net minus brokerage for sale. It means buy XYZ Ltd. “Buy 1000 XYZ Ltd.30 per security inclusive of brokerage payable to the broker. For no more than Rs. Securities at the prevailing market price.(Rs 100)  LIMITED DISCRETIONARY ORDER: “Buy 1000 XYZ Ltd. @ Rs 12 to stop Rs 10”. So. it gives discretion to the broker.30 market” would mean that the client is willing to pay Rs.  STOP LOSS ORDER: “Buy 100 XYZ Ltd.30 net “would mean that the client is willing to buy 1000 XYZ Ltd. Net rate is purchase or sale rate minus brokerage.30 plus brokerage for each security of XYZ Ltd. 12 but if on the same day the price falls to Rs. It means buy 100 XYZ Ltd securities at the market rate of Rs. @Rs.

like:  Elimination of bad deliveries-in the depository environment.3) Business can see itself in fines and penalties if records are lost 4) Manual records are easier to be falsified. To avail of the services offered by a depository. mutilation of certificates. they cannot be hold “under objection”. To achieve this purpose. firewalls.. a depository is an organisation. A depository functions somewhat similar to a commercial bank. BENEFITS OF DEPOSITORY SYSTEM: In the depository system. the ownership and transfer of Securities takes place by means of electronic book entries.India has chosen the dematerialisation route.  Elimination of all risks associated with physical certificates-dealing in physical Securities have associates security risks of stocks. which enables securities transactions to be processed by book entry. and back-ups. which holds the beneficial owner's securities in electronic form. through a registered Depository Participant (DP). DEPOSITORY SYSTEM: A "Depository" is a facility for holding securities. SERVICES AVAILABLE IN DEPOSITORY SYSTEM: NSE AND BSE. this system rids the capital market of the danger related to handling of paper. the question of bad delivery does not arise i. altered or vanished. etc.e. loss of certificates during movements through and from the registrars. the investor has to open an account with a registered DP. modified. thus exposing the investor to the cost of obtaining duplicate certificates and advertisement. the depository may immobilize the securities or dematerialise them (so that they exist only as electronic records). At the outset. This problem does not arise in the depository environment. NSDL provides numerous direct and indirect benefits.. once holding of an investor are Dematerialized. 1 . In India. as compared to computerized records which become very safe when using passwords.

Promoters • • • Industrial Development Bank of India Limited (Now. securities are held in depository accounts. The enactment of Depositories Act in August 1996 paved the way for establishment of NSDL. At NSDL.the largest mutual fund in India and National Stock Exchange of India Limited (NSE) .the largest development bank of India. Transfer of ownership of securities is done through simple account transfers. the paper-based settlement of trades caused substantial problems like bad delivery and delayed transfer of title till recently. Promoters/Shareholders NSDL is promoted by Industrial Development Bank of India Limited (IDBI) .NSDL: NATIONAL SECURITY DEPOSITORY LIMITED Although India had a vibrant capital market which is more than a century old. This method does away with all the risks and hassles normally associated with paperwork. the first depository in India. Some of the prominent banks in the country have taken a stake in NSDL. This depository promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialized form in the Indian capital market. which is more or less similar to holding funds in bank accounts.the largest stock exchange in India. the cost of transacting in a depository environment is considerably lower as compared to transacting in certificates. Consequently. NSDL aims at ensuring the safety and soundness of Indian marketplaces by developing settlement solutions that increase efficiency. IDBI Bank Limited) Unit Trust of India (Now. In the depository system. we play a quiet but central role in developing products and services that will continue to nurture the growing needs of the financial services industry. Adminstrator of the Specified Undertaking of the Unit Trust of India) National Stock Exchange of India Limited Other Shareholders 1 . NSDL works to support the investors and brokers in the capital market of the country. minimize risk and reduce costs. Unit Trust of India (UTI) . Using innovative and flexible technology systems.

banks.000. Sr. The balances in the investors account recorded and maintained with CDSL can be obtained through the DP.00 36. State Bank of India and HDFC Bank. The investor who is known as beneficial owner (BO) has to open a demat account through any DP for dematerialization of his holdings and transferring securities. custodians.• • • • • • • • • • State Bank of India Oriental Bank of Commerce Citibank NA Standard Chartered Bank HDFC Bank Limited The Honkong and Shanghai Banking Corporation Limited Deutsche Bank Dena Bank Canara Bank Union Bank of India CDSL: CENTRAL DEPOSITORY SERVICES LIMITED: A Depository facilitates holding of securities in the electronic form and enables securities transactions to be processed by book entry by a Depository Participant (DP). counterfeit resulting in bad deliveries. forged.57 1 .825. are eligible to act as DPs. financial institutions. a statement of account which gives the details of the securities holdings and transactions.104.00 1.50 crores.000. stockbrokers. Union Bank of India and Centurion Bank. The DP is required to provide the investor. Bank of Baroda. The depository system has effectively eliminated paper-based certificates which were prone to be fake. Bank of India. The initial capital of the company is Rs.46 1. CDSL offers an efficient and instantaneous transfer of securities. offers depository services to investors. Standard Chartered Bank. who as an agent of the depository.CDSL was promoted by Bombay Stock Exchange Limited (BSE) jointly with leading banks such as State Bank of India. 2008 is as under. Name of shareholders No. etc. 1 2 3 Bombay Stock Exchange Limited Bank of India Bank of Baroda Value of % terms holding (in to total Rupees Lacs) equity 3. BSE has been involved with this venture right from the inception and has contributed overwhelmingly to the fruition of the project. Bank of Baroda. The list of shareholders with effect from 11th December.57 9. According to SEBI guidelines. Promoters &shareholdersCDSL was promoted by Bombay Stock Exchange Limited (BSE) in association with Bank of India. HDFC Bank.61 9. at regular intervals.

4 5 6 7 8 9 10 11 12 State Bank of India HDFC Bank Limited Standard Chartered Bank Canara Bank Union Bank of India Bank of Maharashtra 1.00 Limited The Calcutta Stock Association Limited Others TOTAL • • • Exchange 100.57 14.00 750. Dematerialized trading is now compulsory for all investors.00 1.00 200.000.00 9.46 200.500. The system is comparable to that in a bank.00 674. investor can trade in specific scripts in the Demoralization form. 1 .96 -100.91 1. If an investor wants services offered by a depository.91 1. he would have to open an account with it through a DP.similar to opening an account with any other branches of the bank in order to avail of its services. They can provide and receive delivery only in a Dematerialized form and share certificate will not be changed for these scripts.08 10.00 DEMATERIALIZATION Dematerialization is a process by which physical shares of investors are converted to an equivalent number of Securities in electronic form and credited in the investor’s account with his Depository Participant.18 6.00 0.00 The Jammu and Kashmir Bank 200.450. A depository is an organization where Securities of shareholder are held in the electronic form at the request of the shareholder through Depository Participant (DPs).45 1. Beginning of first week of January 1999.36 7.91 0.

To settle trades in Demat segment each CM should open one clearing account with any of the DP. NSDL allots a number identified as CM-BP-ID. FEATURES OF DEMAT: • • In case you want to convert your existing shares into Demat format.Dematerialization is a process by which physical certificates of an investor are taken back by the company/registrar and actually destroyed and an equivalent number of Securities are credited in the depository account of those investors. you can view securities available for Demat You can view the details of your transactions including settlement date. A Depository Participant is investor’s agent in the system. He maintains investor’s Securities account and intimates the status of holdings from time to time to the investor. DP opens account and an account number is providing along with CMBP-ID to the clearing member. pay in date. pay out date using the View Settlement calendar option OPENING CLEARING ACCOUNTS FOR SETTLEMENT OF TRADES: All the trades executed at the exchanges are settled by the clearing member (CM). as in the case of Securities in the physical form. The procedure for opening clearing accounts is:      Approach a DP. Sign on an agreement with the DP. Fill up an account opening form. 1 . Application is forwarded to NSDL by DP.

There is no chance of bad delivery at the time of selling shares as there is no signature mismatch. Safety to the investor * Securities Exchange Board of India (SEBI) has laid down certain rules and regulations for getting registered as a depository participant. NSDL sends statement of account to a random sample of investors a s a counter check. Dematerialised shares are in the fungible form and do not have any distinctive or certificate numbers . No stamp duty on transfer of securities. The bonus /rights shares allotted to the investor will be immediately credited into his account. thefts etc. Advantages of dematerialization: • • There is no risk due to loss on account of fire. Immediate transfer of securities. The securities on dematerialisation will appear as balances in the depository account. * Periodic inspections of both DP and R&T agent are conducted by NSDL * The data interchange between NSDL and its business partners is protected by standard protection measures such as encryption. * The investors account will be credited/debited by the DP only on the basis of valid instruction from the client. With the recommendation of the Depository and SEBI's own independent evaluation a DP will be registered under SEBI. delays.. • • • • • • • • A safe and convenient way to hold securities . 1 . * The investor has the right to approach NSDL if the grievances of the investors are not resolved by the concerned DP. Elimination of risks associated with physical certificates such as bad delivery. * The system driven mandatory reconciliation is done between the DP and NSDL. can be effected in a much simpler and faster way. fake securities. Share transactions like sale or purchase and transfer/transmission etc.Reduction in paperwork involved in transfer of securities. Transaction costs are usually lower than that in the physical segment. * No direct communication links exist between two business partners and all communications are routed through NSDL. These balances can be transferred like the shares held in physical form. * A statement of account is received periodically by the investors. . These certificates will be sent to the respective companies where they will be cancelled after dematerialization and will credit the investors account with the DP.The securities in the demat can again be converted into physical form which is called as rematerialisation.• After opening an account with the DP the investor should surrender the physical certificates held in his name to a depository participant. theft or mutilation.

Transmission of securities is done by DP eliminating correspondence with companies.Automatic credit into demat account of shares. 4. Broker gives instructions to DP to debit clearing account and credit client’s account. Disadvantages of Demat account There is no as such disadvantage of Demat account.Holding investments in equity and debt instruments in a single account. There may be one time standing instruction or separate instruction each time to receive credits. • A.Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately. The only major difference is that instead of delivering physical securities to the broker. . Investor instructs DP to receive credits into his account in the prescribed form.• • • • • • • • . In India we Must have to use Demat accounts to do share transactions. . Procedure for purchasing dematerialized securities The procedure for purchasing dematerialized securities is also similar to the procedure for buying physical securities. the investor instructs his DP to debit his demat account with the 1 . And even if there is any disadvantage of Demat account than by law. arising out of bonus/split/consolidation/merger etc. . Broker receives payment from investor and arranges payment to clearing corporation. 2. Investor purchases securities in any of the stock exchanges linked to depository through a broker. . 1. 5.No odd lot problem. Broker receives credit to securities in clearing account on the payout day. Procedure of selling dematerialized securities The procedure for selling dematerialized securities in stock exchanges is similar as selling physical securities.Reduction in transaction cost.Nomination facility. . even one share can be sold. Investor receives shares into his account by way of book entry. B. 3. .

at this millennial transition. Others. 4. after all. therefore. only a registered (SEBI) stock broker can buy and sell shares in the stock market. The Evolution of Stock Brokers with Online Trading An online stock broker is an investor’s means of buying and selling shares via the Internet. 5. not true that anyone can engage in online trading today. Investor instructs his DP to debit his demat account with the number of securities sold and credit the broker’s clearing account. broker of the investor transfers the securities to clearing corporation. and that it is possible to invest in stocks with one’s own computer? The fact is. Such investors can use their own online stock trading accounts to obtain necessary information and place online trades at any time of the day. wherein an individual or a brokerage firm acts as one’s link to the stock exchange. It shapes the way we communicate and the way we do business.a real person who will place trades on their behalf. Such an individual is registered on one or many stock exchanges and is authorized to transact on behalf of others. we can serve ourselves better by making our own decisions. an online stock broker is very valuable to investors who are not technically inclined and have no or little prior knowledge of stock trading. This prevailing shift of the business paradigm is reshaping the financial industry and transforming the way people invest. Before the pay-in-day. INTRODUCTION TO ONLINETRADING The Internet revolution has been changing the fundamentals of our society. It provides us with means to directly interact with service-oriented computer systems tailored to our specific needs. Today. Investor sells securities in any of the stock exchange linked to depository through a broker. however. because of the limitations of communications technology.number of securities sold by him and credit the brokers clearing account. In the old days. Are such services necessary? Is it. The procedure for selling dematerialized securities is given below: 1. still require a human interface . just like a regular stock broker. Wall Street was the center for most of the Stock Exchange and Brokerage firms. investors can 1 . 3. The broker receives payment from the stock exchange. 2. Apart from that. It brings us closer and closer to vital sources of information. The investor receives payment from the broker for sale of securities in the same manner as received in case of sale of physical securities.

such that the clients can take their own decisions on stocks before investing. The order processing is done in correct timings as the servers of the online trading portal are connected to the stock exchanges and designated banks all round the clock. online trading occurs when an investor makes an order to a broker online. Online trading in India is the internet based investment activity that involves no direct involvement of the broker. Online trading became more common in the 1990s as more brokerages offered their services online. Products and services of the online trading in India: Varieties of financial products and services of the online trading are available in India such as: • • • Life insurance Equities. See also: Discount brokerage. Definition: Online Trading The act or practice of buying and selling securities over the Internet. They can also get updates on the trading and check the current status of their orders either through e-mail or through the interface. often for a small fee rather than a commission on the trade.use revolutionary Internet Client-Server technology to trade stocks nearly anywhere. Portfolio management 1 . Brokerage also provides research content on their websites. The total portion of online share trading India has been found to have grown from just 3 per cent of the total turnover in 2003-04 to 16 per cent in 2006-07 Facilities of the online trading in India: The investor has to register with an online trading portal and get into an agreement with the firm to trade in different securities following the terms and conditions listed down on the agreement. There are many leading online trading portals in India along with the online trading platforms of the biggest stock houses like the National stock exchange and the Bombay stock exchange. Generally speaking. the broker then executes the order through the ordinary means. Online trading should be distinguished from electronic trading. anytime. independent of brokers' fees and service limitations. which occurs on an exchange.

supporting large amounts of data traffic. and possessing a countrywide network. National stock exchange and Bombay stock exchange: In spite of many private stock houses at present involved in online trading in India. But is not easy and simple as it requires constant supervision and once people attains the appropriate skill can gain profit in huge amount. The product is shipped to the customer from the retailer only. Customers willing to purchase the product should provide the credit card details and personal contact information online and once the payment is being made the product is shipped to the address of the customer as provided earlier generally after two business days. the NSE and BSE are among the largest exchanges. The automated online systems used for trading by the national stock exchange and the Bombay stock exchange are the NIBIS or NSE's Internet Based Information System and NEAT for the national stock exchange and the BSE Online Trading system or BOLT for the Bombay stock exchange. In order to make a business successful a plan need to be prepared first then multiple sources of income policy should be opened so that the plan at later time should be incorporated in to the business • • • • Companies provide Online Trading in India:- Online Trading in India :: India Stock :: A1 Technology Online Trading :: Best online trading :: BSEIndia :: JV Financial Online :: Kotak Securities Online Trading 1 . Online trading is treated as the most effective process to make money with the help of Internet by sitting at home only. • • .Online trading is termed as selling products or good services through Internet.• • • • • • Mutual funds Loans General insurance Share trading Commodities trading Financial planning. They handle huge daily trading volumes.

and is under your direct control. possibly 1 . The Internet can provide a new sense of control over your financial future. For the first time in history.com Online Trading :: SHCL Online Trading :: STC Online Trading :: Technical Analysis Trading :: Union Bank of India Online Trading :: Best Online Trading FEATURES OF ONLINE TRADING: The Online Trading is having many features which make it most suitable for the investors to go for. any individual with an Internet connection can: • • • • • • Know the price of any stock at any time Review the price history of any stock in chart format Follow market events in-depth Receive a wealth of free commentary and analysis about stock markets and the global economy Conduct extensive financial research on any company Controlofyourmoney: One of the great appeals of using an online trading account is the fact that the account belongs to you. hope that he is in the office to place your order. Some of these features are as follows: Features of information. The amount of investment information available online is truly astounding.com Online Trading :: Express Computer Online Trading :: Geojit Securities Online :: ICICI Online Trading :: Indiabulls Online :: India Insurance :: Mansukh Securities Online Trading :: Quote. It's one of the best aspects of being a wired investor. When you want to buy or sell stock. you no longer need to call your broker on the phone.:: Bonanza Online Trading :: BullishIndian.

Offers grater transperancy: Online trading offers you greater transparency by providing you with an audit trail. to clearing and settlement and finally ending with a credit into your depository account. thus bringing in transparency into the system. All these stages are subject to inspection. dedicated trading platforms and sophisticated tools for accessing the markets. Ensures the best price for Investor: Every broker house aims at providing the investor with the best price available. you will be able to get the best quote for your orders. This involves a complete integrated electronic chain starting from order placement. an online trading account gives you more agility in buying and selling stocks. This is through sophisticated information streams. Enables hassle free trading: Online trading integrates your bank account. and hope that the transaction is executed instantly. which leads to easy and paperless trading for you.argue with the broker about the order. Also due to the high level of transparency with regard to display of information relating to the specific stocks and company profiles. your trading account and your demat accounts. 1 . Access to Market: At the most basic level.

Your Bank. This method of trading reduces the settlement risk for the investor. who is assured of the delivery of the securities and for you as a seller of the securities Every trade is confirmed immediately and you will receive an on-screen confirmation following every trade with full details for your records. From updated security technology to advanced fraud prevention measures. Broking houses work hard to keep our account and personal information secure. This avoids costly errors that would have been discovered when it is too late. Various broking houses provide access to many of the popular banks. In the case of a demat account your demat account is checked by us before executing your sell transaction. in a very short period of time. Trading on the net.You as an Investment online customer will be able to execute the entire trading transaction. 1 . as in this case all short sell orders are squared off at the specified cut-off time and not allowed to be carried forward. Depository and online account are integrated for your convenience. to the execution and settlement of your bank account. This provides a level playing field for all investors in the securities market. gives even the smallest retail investor access to information that earlier was available only to the big traders. This reduces the settlement risk for the buyer. right from logging on to our site. they have the people and tools in place to provide a strong defense against electronic scams and fraud.

BENEFITS OF ONLINE BROKING 1) Less Costly: The most significant advantage of the Online broking is the cost reduction in the brokerage. No paperwork means more time at one’s disposal for research and analysis. 5. visits to the broker for handing over these slips and consequent costs. This includes research reports. Due to the power of the Internet one has the privilege of becoming the clients of really large brokerages with the benefits of enjoying the low charges hithelio before enjoyed only by the big players. analysis and even gossip and the buzz in the market. As the DP account has got linked to the trading account most players do not charge a minimum transaction cost thus truly allowing one to buy a single share and achieve meaningful rupee price averaging whatever be your buying power. results. 2) Peace of Mind: One can never have complete peace of mind but online investing does away with the hassles of filling up instruction slips. 3) Keeping Records: The site one trades on keeps a record of all transactions down to unexecuted orders and cancelled orders thus keeping one abreast of all your transactions 24 hours a day.) Unparalleled Liquidity: 1 . 4) Access to Information and investment Tools: Most online investing sites have a wealth of information for their registered members.

9.) Ease of trade: It is the ease of doing the trade through net. thus bringing in transparency into the system. as in this case no Short sale is possible i. Conversely in case he spot an opportunity in the market he can immediately allocate money from his savings account to his trading account and make profits. to clearing and settlement and finally ending with a credit to the depository account of the investor. All these stages are subject to inspection. 6. 7.) Reduces the settlement risk: This method of trading reduces the settlement risk for the investor. who is assured of the delivery of the securities. when a seller wants to sell the securities.e. Most partner banks offer Internet banking as well. Moreover even if somebody broke in and tampered with one’s account the money from the stocks he sold or the stock bought from the money in his account is in his account only. the seller will not be able to sell the securities unless he has their actual possession. his demat account is checked by the Depository Participant before executing the sale transaction. In the case of a demat account (required for an online transaction). This results in one’s money becoming available to him whenever he like from his trading account.) Unparalleled Safety: Most sites are secure using 128-bit algorithms -highest available commercially anywhere in the world.The. 1 . 8. with a click of mouse. This reduces the settlement risk for the buyer.) Offers greater transparency: Online trading gives greater transparency to the investors by providing them an audit trail. This involves a complete integrated electronic chain starting from order placement. one can buy or sell any share that is dematerialized. bank account linked with the trading account invariably has an A TM free.

Other than the above-mentioned advantages, Internet trading provides some additional advantages to the investors, brokers and also helps the nation to channelize the resources. Net trading would increase competition in the market hence increase in the bargaining power of the investors. The entire communication between the investor, broker and exchange would take place within milliseconds.

There is a flip side to everything and online trading is no exception.

Chart Source:- www.lse.co.in
27% Loyality is of traditional broker 23% people says that online trading is more costly than manual trading. 21% people not prefer online trading because of lack of knowledge. So, the main problems of online trading are as follows: 1.) "Server not found":


This may appear on one’s screens when he is desperately trying to get out of an unprofitable position. Some of the online sites are providing a telephone number for use in case their sites are overloaded or their server down. 2.) Connectivity of the Broker with NSE: Recently ICICI Direct had a connectivity problem with the NSE for two and halfhours during trading hours. This problem is rare but be alive to its possibility.

3.) Cyber attack: In the event of a malicious attack on the systems of one’s broker he is protected only if the company is taking proper precautions against such attacks and if proper backup is regularly been taken. He may like to choose a brokerage that has a stated security policy and contingency plan in place. 4.) Non-availability of a seamless interface: As a client one will access the NSE through a server of the online brokerage and this may involve queuing delays. If a number of client access the server the server takes its own time sending the orders to the NSE server. He must check out the seamlessness of this interface before selecting an online brokerage. The faster the orders are processed the more seamless is the interface. 5.) Non- availability of personalized advice: If one like to ask his broker "Aaj kya achcha lag raha hai" he may not be able to do so. If he want advice on a particular stock in his portfolio he may not even be able to get that. 6.) Margin: If Internet trading alone is not fast and furious enough; many people are trading on margin. That is where the brokerage firm lends you money by leveraging his account, allowing him to buy a large amount of securities by putting up only a small amount of money. He may have forgotten what he read in the small print of his agreement, but the brokerage firm has the right to change the maintenance margin requirements without any warning or notice to him. In fact, the firm has the right to liquidate his securities


holdings (and it can pick and choose which ones) without any notice to one if he fail to meet the margin call. And there he was leveraged to the hilt, hoping to hit a home run when he discovered that he is required to make a large deposit that he cannot make. The next thing one know, the firm is selling off his securities at a point in time that is not the best for him. These are the perils of trading on margin. 7.) Little use of advisory services: The advisory services being promised by the brokers would be of little use to investors looking for an insight into the market. Many would not like to rely on research reports, which are there for all. So, net investors will have to do their own research and take their own decision, whether wild or wise.

8.) Increased charges: Some of the brokers are of the view that they would have to provide advisory services to the customers. But with increased volumes, they will have to follow the international practice of charging a little more than the normal charges from a customer looking for personal advice.

Several broking houses now offer online trading facilities. You can trade online with ebrokerages such as ICICI Direct, Kotakstreet, India bulls, India info line’s 5paisa.com and HDFC securities. If you are already comfortable trading with your regular broker, here are few reasons why you may consider switching to trading online, or at least another avenue of trading. an obvious advantage of online trading is that your transaction would be virtually paperless. Your trading account would be linked to your demat and bank account, ensuring a smooth transaction process. This is especially helpful in the extent T+2 settlement system, where you have just two days to settle your transaction. The normal process of issuing of delivery note, in case of a sale, or arranging for a payment in case of purchaser of shares, is all taken care of the minute your order is


places his order in the evening after work. When you trade offline. when it is day time 1 . an NRI-based in New York. and a deep community of fellow investors. for you to be able to reach him in the late hours. during off market hours. daily roundups of the stock market. as your order is always confirmed before it is executed.keeping track of your portfolio can be a hassle in such a case. you can log on the web-trading site and place your order offline. The inter net can provide a new sense of control over your financial future. in some cases. Your order would join the queue and be expected the next day. experts commentary. the time difference. Its one of the best aspect of being a wired investor for the first time in history. any individual with an internet connection can: • • • • • • Know the price of any stock at any time Review the price history of any stock in chart format Follow market events in-depth Receive a wealth of free commentary and analysis about stock markets and globe economy. Convenience is probably the greatest advantage online trading offers investors. The amount of investment information available online is truly astounding. if don’t have time to trade during market hours . You would need to enjoy a good relationship with your broker. What is more.Antony.executed online. You can also make better decision as you have a clear record of all your previous transaction. trading online is perhaps their easiest option to invest in the Indian stock markets. a demat statement is normally sent to you only on a quarterly basis . Conduct extensive financial research on any company Talk with other investors around the world At investsmart you can get real-time stock quotes. There is also little room for error. For nonresident Indians (NRI). The absence of manual intervention ensures that you are completely in control of all transaction. can work to their advantage .perhaps you are at work.

market information and company research. firstly register himself with an Internet brokerage firm. The client places order via the net by logging on to his Broker’s site. the investor would be required to open a bank account with a scheduled bank and sufficient balance should be kept in the account. Some formalities. Moreover. we can get the latest news. for instance. Secondly. copy of residence proof are made to register himself with the e-trader. 1 . most e-brokerages also provide a facility to trade offline by placing our order via the phone. if our connection is maddeningly slow and we want to get your order executed immediately. The broker accepts and executes the order and places it with the exchange The exchange accepts the order after checking the share limit for the day. Thirdly he would be required to open account with a depository participant because only dematerialized shares can be traded on Internet. PROCEDURE FOR ON-LINE TRADING: An Investor interesting in trading through Internet shall such as filling the account opening form of -broker.India and the markets are open. We also have access to considerable information online. copies of identity proof have to. By just logging on to ICICI direct online.

So. Using the place order window as under can then place an order: (a) First by entering the symbol and series of stock and other parameters such as quantity and price of the scrip on the place order window. Step-2: After registration. (b) Second. the broker will provide to them a login name. that is. series and the default quantity. fill in the symbol. The exchange receives money and completes the settlement. The client is intimated about the settlement either through the demat or via e-mail. generally following steps are followed while doing the trading through the Internet: Step-I: Those investors interested in doing the trading over Internet system. Step-3: Actual placement of an order. should approach the brokers and register with the Stock Broker.The broker makes the payment either directly via the client bank account or pays through its own account and recovers it later from the client.ISX (NSE).NEAT . Step-4: 1 . password and a personal identification number (PIN).

the order has to be sent by clicking on the send option. Step-6: The investor will receive an "Order Confirmation" 'message along with the order number and the value of the order. the broker will ask the investor for transfer of funds by the investor to his account. Step. 1 . for which there are different modes. Thus. At present. a time lag of about ten seconds is there in executing the trade. When was online trading introduced in INDIA? Online trading started in India in February 2000 when a couple of brokers started offering an online trading platform for their customers. Step-8: It is regarding charging payment. When the trade is executed. Some brokers will take some advance payment from the. investors and will fix their trading limits. the investor has to review the order placed by clicking the review option. He may also re-set to clear the values.7:In case the order is rejected by the Broker or the Stock Exchange for certain reasons such as invalid price limit.It is the process of review. an appropriate message will appear at the bottom of the screen. Step-5: After the review has been satisfactory.

A novice investor with an Internet connection can know there all time stock quotes. Receives the money and completes the settlement The benefits of investor due to Online Investing: a) Independence and freedom due to enjoyed by an individual access to the markets: This is conceivably the greatest advantage of online brokerages. Accepts the order. Pays the broker pending physical delivery. have a handle on market events. though his owns account and receives it from the client account. 1 . Checks the client’s Identity and places the order with the stock exchange Accepts the order after checking the scrip limit of the broker for the day Executes the order Pays the Exchange The client is intimated about the execution of the deal by e-mail.THE MECHANICS OF ONLINE TRADING CLIENT BROKER STOCK EXCHANGE Places an order on the net on the broker’s website through the distinctive I. code The settlement of the deal (buy/sell order) gets reflected in his Demat account. historical stock price trends.D.

etc. broker not being in. g) Speed of trade execution: Keeping time in mind. It saves the investor the added worries that come with busy phone lines. f) Diverse range of investment products and choices: Online brokerages are offering more Products to the consumer. It can be done whenever and wherever by the Investor themselves. 1 . company Fundamentals. The costs borne by an Individual Investor from Online Investing a) Technical Reliability: The greatest disadvantage of online trading is the inability of a network to be fail-safe. etc. c) Elimination of Losses on account of Brokers: Most brokers live on commissions. mortgages. Buying and selling of stock no longer requires another individual to carry it out. bonds. This is the fulcrum on which online brokerages leverage.access vast amounts of economic and market analysis. traffic overload thus causing site freeze. so as to give the consumer a wider choice and also to accommodate consumers that have niche tastes. mutual funds. Online brokerages pay financial advisors a fixed salary. This. the brokerage house next and finally the client. d) Inexpensive and affordable commission charges: Commissions per trade online are much lower than when compared to that charged by traditional brokerage houses like Merrill Lynch. There are various things that could go wrong like failure to log on to the network. b) The investor is alone: Another disadvantage may be the penalty of a bad investment. online trading is much quicker – as far as accessibility and availability to investment information and execution of trades areconcerned. hence the tactics used by them are in the favor of the broker first. and interact with other investors via forums or chat rooms. Computers in spite of the technological advances are by no means perfect. network blackout due to failure power. Site freeze can happen on extremely demanding days with large amounts of orders going over the networks. Cheap transaction costs along with the immense amount accessible online are the biggest reasons for the clients to move online. thus eliminating the chance for an investor doing unnecessary trades for the benefit of the brokerage firm and the broker. when wanting to do an important trade. Online brokerages are inconstant endeavor to bridge the gap between the investor and the market. can transform even the most novice investor with an active interest in investments into a knowledgeable and powerful investor. Traditional brokerage houses e) Internet as an InformationSuperhighway: Information related to stocks. Online have decreased the time for total completion of a trade from the regular T+3 days to a matter of minutes. Investors can invest in stocks. server crash resulting in site failure. in combination with time. which were once only available to licensed brokers.. etc. do research on firms. are now at the finger tips of anyone and everyone. b) Elimination of the “middle man”: Investing online gives the investor a sense of control over their wealth.

can give a sense of autonomy previously not experienced when dealing with traditional brokerages. “Size does matter”. Firstly.The do it yourself attitude that empowers the investor over his own money. But it can also spell investment failure. The broker web site 1 . Broker. Exchange will prepare a model agreement for this purpose. Client Broker Relationship Know Your Client: The stock Exchange must ensure that brokers have sufficient. institutional investors almost always get exclusive access to the hottest Initial Public Offering (IPO) deals before it goes into the markets. This agreement should also inter alia. because of the sheer size of resources and contacts. The Limitations of Online Investing to an individual investor: Besides advantages and disadvantages.Client Agreement: Brokers must enter into an agreement with clients spelling out all obligations and rights. The broker agreement with clients should not have any clause that is less stringent/contrary to the conditions stipulated is the model agreement. It can be assertively said. some investors like the institutional investors still have an advantage over the individual investors in spite of the Internet and all its advantages.000 to $500. Though the Internet has allowed more players into the investment playing field. verifiable information about clients. investor protection rules etc. there exists the possibility of limitations of what online brokerages can do for an individual investor.000. Investor Information: The broker web site providing the internet based trading facility should contain information meant for investor protection such as rules and regulations affecting client broker relationship arbitration rules. Online brokerages do offer IPO deals –provided the trading account has between $100. which would facilitate risk evaluation of clients. Individual investors usually gain access to these stocks after the initial price gain is already lost. the minimum service standards to be maintained by the broker for such service specified by SEBI/Exchange for the internet based trading from time to time.

providing the Internet based trading facility should also provide and display prominently. Order/Trade Confirmation: Order/Trade confirmation should also be sent to the investor through email at client’s discretion at the time specified by the client in addition to the other made of display of such confirmation of real time basis on the broker web site. The broker systems should be capable of assessing the risk of the client as soon as the order comes in. Facility for reconfirmation of orders which are larger than that specified by the member's risk management system should be provided on the internet based system. It is desirable that exchanges should also have facility for on-line registration of complaints on their web site.. Handling Complaints by Investors: Exchanges should monitor complaints from investors regarding service provided by brokers to ensure a minimum level of service. and exposures taken by clients. Ticker/quote/order book displayed on the web-site of the broker should display the time stamp as well as source of such information against the given information. hyper link to the web site/page on the web site of the relevant stock exchange (s) displaying rules/ regulations/ circulars. Risk Management: Exchanges must ensure that brokers have a system-based control on the trading limits of clients. Exchange should have separate cell specifically to handle Internet trading related complaints. the broker system may have a review and release facility to allow the order to pass through. The client should be informed of acceptance/rejection of the order within a reasonable period. Contract Notes: 1 . Brokers must set predefined limits on the exposure and turnover of each client. In case system based control rejects an order because of client having exceeded limits etc. The investor should be allowed to specify the time interval on the web site itself within which he would like to receive this information through email.

regardless of the medium. all existing obligations of the broker as per current regulation will continue without changes. for trade execution on registered stock exchanges. which will route order from client to brokers. general anti-fraud provisions (SEBI Fraudulent and Unfair Trade Practices Regulations. Enforcement: A separate working group has been set to look into the surveillance and enforcement related issues arising due to Internet based securities trading. brokers using Internet based systems for routing client orders will also not be allowed to cross trades of their clients with each other. However. A committee was setup by SEBI to develop regulatory parameters for use internet trading. The broad also took note of the recommended minimum technical standards for ensuring safety and security of transaction between clients and brokers. It is emphasized that in addition to the requirements mentioned above. which will be forced by the respective stock exchanges. All orders must be offered to the market for matching. the committee seeks to reiterate that as III the case of existing system. SEBI decided that internet trading could take place in India within the existing legal framework through use of order routing system. within 24 hours of the trade execution. Trading on internet means that the investor’s will actually buy and sell the stocks on-line through the net.Contract notes must be issued to clients as per existing regulations. 1 . Exchanges may also like to specify more stringent standards as they may deem fit for allowing Internet based trading facilities to their brokers. 1995) would apply to all transactions involving securities or financial services. Cross Trades: As a matter of abundant precaution. SEBI approved the report on the committee. STOCK MARKET TRADING ON INTERNET The major events that will take place in the Indian Capital Market are introduction of index-based futures trading on internet.

Easier transaction processing Profit in time: Investor can make profits by selling shares when the going is good. all transaction get updated. Market timings: Trading on the derivatives segment takes place on all days of the week (except Saturdays and Sundays and holidays declared by the Exchange in advance). Precaution: Check for hidden costs of broker’s age. They do not have to instruct their brokers on the cut off price to sell shares. bank and demat account are all electronically connected. This means that commission costs are cut dramatically for the frequent investor. Less fees: shares traded online require no human intervention to match buys and sells. The market timings of the derivatives segment are: Normal Market / Exercise Market Open time Normal market close 15:30 Set up cut of time for Position limit/Collateral value 15:30 Trade modification end time / Exercise Market hours : 09:00 hours : hours : till hrs : 16:15 Internet Systems Based Trading through Order Routing 1 . Ease and transparency: Since the broking. Never double click the mouse during execution of trade avoids cyber cafes and change password regularly. demat account shows the latest stockholding statement while the bank account shows the balance amount after buying or selling of shares. Beware of net seamstress.

Offer real-time or delayed quote information. Once the broker’s system receives this information. through broker web sites. uses the Internet as a medium for communicating client orders to the exchange. mutual funds. options. or allow investors to create a personal stock ticker. These may include. In an Order Routing system. • • • • • Allowing the clients to directly trade through investors. and • • • Offer investors access to portfolio management tools and analytic programs. the quantity and whatever the order is a market or limit order. Information on commission and fees. and Account information and research reports. analyst reports and trading strategies and market data on currencies. Provide market summaries and commentaries. Advertise the broker dealers’ services to potential investors. Offer market information and investment tools similar to those offered by information vendor or SRO web sites. 1 . a broker offering Internet trading facility provides an electronic template for the customer to enter the name of the security. market indices and news. whatever it is to be bought or sold.Internet based trading on conventional exchanges. continuously update quotes while the user visits other sites. Broker’s web sites may serve a variety of functions.

CHAPTER – 3 COMPANY PROFILE Bonanza a leading Financial Services & Brokerage House working diligently since 1994 can be described in a single word as a "Financial Powerhouse". With acknowledged industry leadership in execution and clearing services on 1 .

3. Also Bonanza has been awarded by BSE the "Major Volume driver for the year 2004-2005. ACHIEVEMENTS 1. a study by Dun and Bradstreet has rated Bonanza as the SIXTH largest broking house in terms of equity terminal listings in the country.2008*. Nominated among the Top 3 for the "Best Financial Advisor Awards '08" in the category of National Distributors . wealth management. Bonanza Portfolio Ltd was recently nominated amongst the Top 3 Retail Financial Advisors of the country in an event conducted by CNBC-TV18 and OptiMix Financial Advisor Awards 2008. 6. Keeping in par with the modern tech-savvy world . 3rd in terms of Number of Trading Accounts for 2008*. commodities.Exchange Traded Derivatives and cash market products. If this is not enough. CORPORATE TIE UPS 1 . 2006-2007 and 2008-2009". 2. Client -focused philosophy backed by memberships of all principal Indian Stock and Commodity Exchanges makes Bonanza stand apart from its competitors and a preferred service provider in the industry for value-based services. Bonanza has spread its trustworthy tentacles all over the country with more than 1025 outlets spread across 340 cities. Awarded by BSE 'Major Volume Driver 04-05. It provides an extensive smorgasbord of services in equity. 07-08’. Bonanza makes an integrated and innovative use of technology. Top Equity Broking House in terms of branch expansion for 2008*. currency derivatives.Retail instituted by CNBC-TV18 and OptiMix. 6th in terms of trading terminals in for two consecutive years 2007. * As per the survey by DUN & BRADSTREET. 9th in terms of Sub Brokers for 2007* 5. 4. To add to our ever-growing achievements. 06-07. it also enables its clients to trade online as well as offline and the strategic tie-ups with the latest technology partners has earned Bonanza this prestigious place in one of the top brokerage houses in the country. distribution of third party products etc.

EDUCATION.sharekhan. Travel. REASONS TO CHOOSE Bonanza Portfolio EXPERIENCE LTD . it has been providing institutional-level research and broking services to individual investors.Bajaj Allianz. TOOLS AND EXECUTION services for investors. Bonanza Portfolio ltd has more than eight decades of trust and credibility in the Indian stock market. Personal and Group Insurance. SBI .The company has Corporate Tie ups with Birla Sunlife . Ever since it launched Sharekhan as its retail broking division in February 2000. In General Insurance. Bonanza provides Insurance for Motor. Health. ACCESSIBILITY Sharekhan provides ADVICE. In the Asia Money broker’s poll held recently.com) as well as over the voice tool. TECHNOLOGY With our online trading account you can buy and sell shares in an instant from any PC with an Internet connection. 1 . ICICI Prudential. Housekeeper. over the internet (through the website www. Shopkeeper. Marine. Kotak Mahindra and Reliance for Life Insurance and General Insurance. SSKI won the ‘India’s best broking house for 2004 award. These services are accessible through our centers across the country (over 250 locations in 123 cities). Aviva . You will get access to our powerful online trading tools that will help you take complete control over your investment in shares.

printed reports and SMS on your phone. Our analyst constantly track the pulse of the market and provide timely investment advice to you in the form of daily research emails. You will also get a useful set of knowledge-based tools that will empower you to take informed decisions.KNOWLEDGE In a business where the right information at the right time can translate into direct profits. BENEFITS • Secure Order by Voice Tool Dial-n-Trade. 1 . CONVENIENCE You can call our Dial-N-Trade number to get investment advice and execute your transactions. online chat. Our customer service can be contracted via a toll-free number. CUSTOMER SERVICE Our customer service team will assist you for any help that you need relating to transactions. sharekhan. email or live chat on sharekhan. INVESTMENT ADVICE Sharekhan has dedicated research teams for fundamental and technical research. • Automated Portfolio to keep track of the value of your actual purchases. you get access to a wide range of information on our content-rich portal. • 24x7 Voice Tool access to your trading account. Demat and other queries.com.com. billing. We have a dedicated call-centre to provide this service via a toll free number from anywhere in India.

• Special Personal Inbox for order and trade confirmations. • On-line customer service via web chat. PMS 4. • Anytime Ordering SERVICE PROVIDED BY BONANZA 1. Commodity Broking Life Insurance General Insurance COMPETITORS 1 . IPO 6. Share Broking 5. Insurance • • 3. Mutual Funds 2. Share Broking 8.• Personalized Price and Account Alerts delivered instantly to your cell phone & email address. Currency Derivatives 7.

1 .

Secondary data is previously collected and assembled for some project other than the one at hand. It is gathered and recorded by someone else prior to current needs of the researcher. Secondary Data. SECONDARY DATA Secondary data was collected from Ludhiana Stock Exchange Scope of study: The study is limited to Ludhiana Stock Exchange . It is less expensive than the primary data. recording and analyzing data for aid in making business decisions. Firoz Gandhi Market Ludhiana 1 . Research can be defined as the systematic and objective process of gathering. Primary Data is gathered specifically for the project at hand through personal interviews with the accounts officers.RESEARCH METHODOLOGY The basic task of research is to generate accurate information for use in decision making. There are basically two techniques adopted for obtaining information: Primary Data.

For how long you have been trading with on line-trading? (a)1 year (c) 3 year Sample size 100 (b) 2 year (d) 4 year 1 . Research is simply the pursuit of truth with the help of the study. and symbols for the purpose of generalization is inevitable. concepts.com 3) www.on-linetrading.nseindia. Sources of data collection are: 1) Ludhiana Stock Exchange 2) www.bseindia.com 4) www.com For the successful research the manipulation of certain things. Analysis and Interpretation 1.Data Collection: Data is collected from secondary sources.

According to this survey we find that 44% people says that we are investing the money online from one year and 26% people says that we are investing the money online from 2 years and 19% to 11% people says that we are investing money online from 3 to 4 year. 1 . How will you describe your experience with on-line trading till date? (a) very easy to operate (b) very difficult to operate (c) not secure (d) Any other Sample size 100 According to this survey we find that 60% of people find very easy to operate and 15% people find diffcuilt two operate and 10% and 15% people find no secure and any other. so we can say that now online trading is very popular in the modern market. so we can say that online trading is very simple to operate and easy to understand. 2.

How often do you trade? (a)Daily (c) Monthly Sample Size 100 (b) Weekly (d) More than one month According to this survey we find that 10% of people do trade Daily and 40% people do trade weekly and 32% and 18% people do trade month and more than month. 4 . So we can say that people are generally invest in stock market weekly basis. So we can say that the people are not invest more money in the share market because there is a great risk involved while doing the trading.3. 1 . what amount of money you invest normally ? (a) 50000 (c) 150000 to 2000000 Sample size 100 40 30 20 10 0 Money (b) 100000 to 150000 (d) Any other amount 50000 100000to150000 150000to200000 According to this survey we find that 35% of people invest money normally 50000 and 28% of people invest money 100000to150000 and 23% and 14% of people invest money between 150000to200000 and any other.

Whether online trading settled in Indian investor psyche (a) Yes Sample Size 100 (b) No According to this survey we find that 30% people says yes and 70% people says no.5. 6. So we can say that mostly people are awareness about the on line trading and because of this reason the mostly people are optimizing offline trading. 1 . which trading you prefer? (a) On line trading (c) Both Sample Size 100 (b) Manual trading According to this survey we find that 20% people prefer online trading and 32% people prefer offline trading rest of 48% people prefers both. so we can find that on line trading is not settled in the Indian psyche because some people are not experience towards online trading.

7. What shortcomings do you feel in Indian On-Line trading ? (a) Lack of awareness the investors about on-line trading (b) Shortage of domestic technical expertise (c) Shortage Of Infra structure (c) any other Sample Size 100

According to this survey we find that 15% of people says lack of awareness 49% says Shortage of expertise and 14% people says Shortage Of Infra structure and 22% says any other. So we can say that mostly people are shortage of experience about the Indian derivatives market or share market. 8. Which media would you prefer the most for investment? (a) T.V (c) Magazines (b) Newspaper (D) Journals

According to this survey we find that 55% people Prefer T.V and 25% people prefer newspaper and 10% people prefer magazines and 10% people prefer


journals. So we can suggest that mostly people are very easily grapped the knowledge through T.V.

1. For how long you have been trading with on line-trading? According to this survey we find that 44% people says that we are investing the money online from one year. 11% people says that we are investing money online from 4 year. so we can say that now online trading is very popular in the modern market.

2. How will you describe your experience with on-line trading till date? According to this survey we find that 60% of people find very easy to operate. and15% people find no secure. so we can say that online trading is very simple to operate and easy to understand

3. what amount of money you invest normally ? According to this survey we find that 35% of people invest money normally 50000. 14% of people invest money between 150000to200000. So we can say that the people are not invest more money in the share market because there is a great risk involved while doing the trading.


How often do you trade?

According to this survey we find that 10% of people do trade Daily. 18% people do trade more than month. So we can say that people are generally invest in stock market weekly basis.

5. which trading you prefer? According to this survey we find that 20% people prefer online trading and 32% people prefer offline trading. So we can say that mostly people


are awareness about the on line trading and because of this reason the mostly people are optimizing offline trading.

6. Whether online trading settled in Indian investor psyche According to this survey we find that 30% people says yes and 70% people says no. so we can find that on line trading is not settled in the Indian psyche because some people are not experience towards online trading. 7. What shortcomings do you feel in Indian derivatives market? According to this survey we find that 37% of people says lack of awareness 49% says Shortage of expertise and 14% people says any other. So we can say that mostly people are shortage of experience about the Indian derivatives market or share market.

8. Which media would you prefer the most for investment? According to this survey we find that 41% people Prefer T.V and 39% people prefer newspaper and 20% people prefer magazines. So we can suggest that mostly people are very easily grapped the knowledge through T.V.

9. How did you come to know about bonanza portfolio Ltd.?.


10. 11. Biggest Competitor of Bonanza Portfolio Ltd. 1 . The USP of Bonanza Portfolio Ltd.

The areas of improvement for Bonanza Portfolio Ltd.12.The most preferred product at Bonanza 13. 1 .

14. How often do you attend the training Session organized in the company? 1 .

Now stock market is easily accessible by the people. The Reasons for not attending the Training Sessions CONCLUSION Online trading is the new concept in the stock market. as a wrong entry made by them. can bring them huge losses. There are some problems while doing the trade through the internet. Online trading has made it easy to trade in the stock market as now people can trade while sitting at their home. They find it difficult to trade themselves.15. they rely upon the suggestions given by their brokers. online trading is still at its infancy stage. In India. Major problem faced by online trader is that the investors are loyal to their traditional brokers. Another major problem is that the people don't have full knowledge regarding online trading. 1 .

If he want advice on a particular stock in his portfolio he may not even be able to get that. There were some practical problem which come across and could not be properly death with  The advisory services being promised by the brokers would be of little use to investors looking for an insight into the market.Nevertheless to say that online trading has the bright future as the percentage of the trade done through online trading is increasing day by day. 1 . LIMITATIONS Despite of the training my level best.  As a client one will access the NSE through a server of the online brokerage and this may involve queuing delays  If one like to ask his broker "Aaj kya achcha lag raha hai" he may not be able to do so. there were still some limitation which I think remains there to draw fruitful conclusion.

1 . 3. online trading has many pros. Internet has introduced a way for consumers to manage their money online. the value of your portfolio updates immediately before your eyes. Services have expanded to include integrated management of additional financial accounts. Consumer investing and online trading has dramatically changed over the last decade. It has defined the way we do business and the way we correspond. this will depend on the online brokerage firm. it has subsequently expanded in conjunction with ground-breaking improvements to the traditional trading interface. it is especially fit for investors with busy schedules. As mentioned above. Not to mention. such as telephone interface systems. No sales pitches and no hassle.Suggestions The introduction of the Internet has surprisingly changed our way of life as a society. Money saving opportunities The amount of money you save depends primarily on the online brokerage firm that you choose. There are several wonderful reasons to invest online and consider online trading 1. Instant online access You can gain instant access to your account. This is very convenient if you live in a different time zone than the country you are trading in. Internet has transformed the way investment companies operate their business and has made it easy for private investors to gain straight access to a range of different markets and online tools that were at one point only reserved by the use of investment professionals. 2. But there are still investors who prefer the old fashion way of offline trading and they mainly prefer offline trading for security reasons. You decide where to invest your money. No two firms are the same. Not to mention. Every thing is just a few clicks away. The Internet has opened many opportunities for online trading. Of course. There may be different regulations. The financial industry revolves around the Internet. Online trading dynamically continues to be redefined. similar to bank regulations. Enter online trades at anytime You can enter online trades at anytime and from anywhere. With online trading you are in charge You are in control of your investments. 4. Not to mention. This makes online trading most convenient. There are minimum deposits required that must be maintained.

Research Methodology.BIBLIOGRAPHY BOOKS • C. Vishwa Prakshan MAGAZINES • • Business World LSE’s Magazine INTERNET SITES 1 . Kothri. R.

com http:// www. For how long you have been trading with on line-trading? (a)1 year (c) 3 year (b) 2 year (d) 4 year 2 .sebi.bonanzaonline. Address…………………………………………………………… ………………………………………………. Age…………………….com/stocksmarketsindia/ http://www. 1.pdf • Questionnaire Name…………………………………….co.bseindia.com/abstract.in http://www.com http://jobfunctions.in http://www.com/ http://www.amfiindia.valueresearchonline.• • • • • • • • • • • • http:// www.org/pdf/per09-03.moneycontrol.reliancemutual.com http://www.nseindia.How will you describe your experience with on-line trading till date? (a) very easy to operate (b) very difficult to operate 1 .on-linetrading..com/ http://www.bnet.com http://www.aspx?docid=114221 http://www.com http://www.com http://www.lse.ici.bseindia.gov. Occupation……………………………………………………….

(c) not secure (d) Any other 3. In which trading you will prefer? (a) Online trading (c) Both 6. How often do you trade? (a)Daily (c) Monthly (b) Weekly (d) More than one month 5. Which media would you prefer the most for investor? (a) T. What shortcomings do you feel in Indian On-line Trading ? (a) Lack of awareness the investors about on-line trading (b) Shortage of domestic technical expertise (c) Shortage Of Infra structure (d) If any other 8.V (c) Magazines (b) Newspaper (d) Journals 1 . what amount of money you are invested normally ? (a) 50000 (c) 150000 to 2000000 (b) 100000 to 150000 (d) Any other amount 4. According to you online trading setteled in Indian investor psyche (a) Yes (b) No (b) offline trading 7.

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