COMPANY PROFILE

India Infoline Ltd A group of professionals formed a company called Probity Research & Services Pvt Ltd. The name was later changed to India Info line Ltd. The objective was to provide unbiased and independent information to market intermediaries and investors. The company established on October 18, 1995 as Probity Research & Services. Launched Internet portal www.indiainfoline.com in May 1999. Commenced distribution of personal financial products like mutual Funds and RBI bonds in April 2000. Launched online trading in shares and securities branded as www.5paisa.com in July 2000. Started life insurance agency business in December 2000 as a Corporate Agent of ICICI Prudential Life Insurance. Became a depository participant of NSDL in September 2001. Launched stock messaging service in May 2003. Acquired commodities broking license in March2004. Launched portfolio management services in August 2004. Listed on NSE and BSE on May 17, 2005. Acquired NBFC license in May 2005. Acquired 75% stake holding in Money tree Consultancy services, which is a distributor of mortgages and other Loan products, in October 2005. Acquired 100% equity of March Mont Capital Advisors Pvt Ltd in December 2005 through which we have ventured into Merchant Banking. DSP Merrill Lynch Capital subscribed to convertible bonds aggregating Rs.80 crores in December 2005. Their current stake in India Info line is a little over 14% as on 31st March 2007. Bennett Coleman & Co Ltd (BCCL) invested Rs.20 crores in India Infoline by way of preferential allotment in December 2005. Became a depository participant of CDSL in June 2006. Merger of India Infoline Securities Private Limited with India Infoline Limited in January 2007. Entered into an alliance with Bank f Baroda for Baroda e-trading in February 2007. IRDA license for Insurance broking in April 2007.

1

ONLINE TRADING
Gone are the days of trading on the floor. Technology has changed the landscape of the stock, markets. The look of the stock exchanges has undergone a metamorphic change in the recent years. Prior to online trading regional stock exchanges were playing a very important role in capital markets, as they were local investors. Regional SE, which were unable to interact with other SE’s started developing this own screen based trading and connecting to the other scrip’s, which were not available with them. This also helped in accessing the quotes and other market information from other stock exchanges, which proved vital in the functioning of the system as a whole. REASONS FOR THE INTRODUCTION OF ONLINE TRADING: a) Lack of transparency in the manual trading system. Lesser scope for manipulation, speculation and malpractices by Brokers/member in online trading system when compared to the manual system. c) d) To avoid the procedural deals in the manual trading. To reduce cost.

b)

RESEARCH METHODOLOGY
The data collection methods include both the primary and secondary Data.
1. Primary Data:

This method includes the data collected from the personal discussions with the authorized clerks and members of the company.
2. Secondary Data:

2

The secondary data includes the data from internet, news papers , and magazines of the NSE, BSE, INDIAINFOLINE and different books relating to the issues of this study. Period of study: Period of study includes a period of 45 Days only. In the first spell of the period data collection process regarding on-line trading has been carried on. In the second spell analysis of the data has been worked out.

NEED FOR THE STUDY:
SEBI in Sep 1996 has issued Guidelines to the Stock Exchange to go on-line trading procedure buy the end of the year 1996. Following its directivities INDIAINFOLINE has installed the on-line trading system as on July 2000. The major need for this study is to know the effectiveness of the on-line system in comparison with the outcry or mark trading. To study its advantages and recommendations for beneficial and effective use of the system.

OBJECTIVES OF THE STUDY:
The objectives of the study include the study of the below mentioned aspects: 1) To know the on-line screen based trading system adopted by INDIAINFOLINE. 2) To know about the latest and future developments in the IIL trading system. 3) To know each and every term of the IIL trading procedures. 4) To know about DEMAT in the India Infoline for easy transfer.

LIMITATIONS OF THE STUDY:
 Brokers are not providing complete information regarding on-line trading.

3

so to check which company is better than other and company provides best service to people or investors. ANALYSING FIVE DIFFERENT COMPANIES AND INDIAINFOLINE.  The software or the systems used in online trading should be advanced and the persons who operate should have minimum knowledge. FINDINGS  Online trading is more powerful & advantageous than manual trading. this the private individual are competing. For this purpose we have taken six companies they are: 1) India Info line Securities 2) Kotak Securities 3) ICICI Securities 4) HDFC Securities 5) Share khan. For. between themselves to provide good quality service at the possible minimum cost than other private individuals or companies. 6) Investment. Time is to be considered as major constraint. 4 . we have both public and private sectors it means that there are government and private individual participating in capital markets. there are several companies offering this trading. Manual trading has been replaced by online trading. but for our study we have taken six companies and were are comparing between them. WHICH ARE PARTICIPATING IN ONLINE TRADING In capital markets.

 It is necessary to explain the benefit of the on-line trading to the investors.  It should increase the speed of executing the orders. So that the investor can avoid the fraud. try to increase investor’s confidence.  For the awareness of on-line trading process it is necessary to conduct various programs in different T.V channels.Due to changes in the technology HSE has changed its trading activities into online trading system. So that transaction will be performed efficiently. SUGGESTIONS  I suggest the company to take steps to educate investors about their rights and duties. Tips are available for trading online and invest wisely.  To explain the investors how to work on DEMAT services.  Try to explain them how fraud will take place so that they can be alert and they can take necessary steps to avoid the frauds. 5 . CONCLUSIONS Online trading is more powerful & advantageous than manual trading. If online trading is done with proper infrastructure and software in place then it facilitates smooth trading. The software or the systems used in online trading should be advanced and the persons who operate should have minimum knowledge or if they are very well versed about the functioning of the system then it will be helpful in smooth functioning of online trading.

which is a distributor of mortgages and other Loan products. The objective was to provide unbiased and independent information to market intermediaries and investors. Commenced distribution of personal financial products like mutual Funds and RBI bonds in April 2000. 2005. DSP Merrill Lynch Capital subscribed to convertible bonds aggregating Rs.5paisa.80 crores in December 2005. Acquired NBFC license in May 2005. Listed on NSE and BSE on May 17. Acquired 100% equity of March Mont Capital Advisors Pvt Ltd in December 2005 through which we have ventured into Merchant Banking. Entered into an alliance with Bank f Baroda for Baroda e-trading in February 2007.com in May 1999.com in July 2000. Launched online trading in shares and securities branded as www. The name was later changed to India Info line Ltd. IRDA license for Insurance broking in April 2007. Became a depository participant of CDSL in June 2006. Became a depository participant of NSDL in September 2001. The company established on October 18. Launched portfolio management services in August 2004. 6 . Merger of India Infoline Securities Private Limited with India Infoline Limited in January 2007. Acquired commodities broking license in March2004.COMPANY PROFILE A group of professionals formed a company called Probity Research & Services Pvt Ltd. in October 2005.indiainfoline. Launched Internet portal www. 1995 as Probity Research & Services.20 crores in India Infoline by way of preferential allotment in December 2005. Started life insurance agency business in December 2000 as a Corporate Agent of ICICI Prudential Life Insurance. Launched stock messaging service in May 2003. Bennett Coleman & Co Ltd (BCCL) invested Rs. Their current stake in India Info line is a little over 14% as on 31st March 2007. Acquired 75% stake holding in Money tree Consultancy services.

Sanjiv Ahuja Mr. Indiainfoline made it possible for clients to view transaction costs and ledger updates in real time. Research for the retail investor did not exist prior to Indiainfoline. Kranthi Sinha Chairman & Managing Director Executive Director Non . which was hitherto restricted only to the institutions. Nilesh Vikamsey Mr. Indiainfoline leveraged technology to bring the convenience of trading to the investor’s location of preference (residence or office) through computerized access. R. Equities: Indiainfoline provided the prospect of researched investing to its clients.Executive Director Independent Director Independent Director Independent Director Products and Services: We are a one-stop financial services shop. most respected for quality of its advice. personalized service and cutting-edge technology. Sat Pal Khattar Mr. Nirmal jain Mr.Management & Board of Directors Mr. Venkataraman Mr. 7 .

Commodities India info line’s extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary.02 bn. On the whole. The Company was among the first to offer the facility of commodities trading in India’s young commodities market (the MCX commenced operations only in 2003). The Company’s commodities business provides a contra-cyclical alternative to equities broking. Its experience in securities broking has empowered it with requisite skills and technologies. Research Sound investment decisions depend upon reliable fundamental data and stock selection techniques. depending on your risk-return profile.PMS Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. and we want you to find the facts that you need. The commodities market has several products with different and non-correlated cycles. They choose Ford Equity Research when they can clear your doubts. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio. Indiainfoline Equity Research is proud of its reputation for. 8 . Average monthly turnover on the commodity exchanges increased from Rs 0. the business is fairly insulated against cyclical gyrations in the business. Equity investment professionals routinely use our research and models as integral tools in their work. We at Indiainfoline invest your resources into stocks from different sectors.34 bn to Rs 20.

Indiainfoline now has plans to roll the business out across its panIndian network to provide it with a truly national scale in operations.Mortgages During the year under review. Home Loans Get expert advice that suits your needs Loan against residential and commercial property Expert recommendations Easy documentation Quick processing and disbursal No guarantor requirement Personal Loans Freedom to choose from 4 flexible options to repay Expert recommendations Easy documentation Quick processing and disbursal No guarantor requirement 9 . The Company brings on board expertise in the loans business coupled with existing relationships across a number of principals in the mortgage and personal loans businesses. Indiainfoline acquired a 75% stake in Moneytree Consultancy Services to mark its foray into the business of mortgages and other loan products distribution. The business is still in the investing phase and at the time of the acquisition was present only in the cities of Mumbai and Pune.

• Best of the lot. you are constantly on the move. APPLY IN IPO’s You could also invest in Initial Public Offers (IPO’s) online without going through the hassles of filling ANY application form/ paperwork. No paperwork no queues and No registration charges. But how do you stay connected to the market while on the move? Simple. SMS The trader of today. subscribe to India Info line’s Stock Messaging Service and get Market on your Mobile! There are three products under SMS Service: • Market on the move. INVEST IN MF Indiainfoline offers you a host of mutual fund choices under one roof. All you have to do is register with us and that’s all.Invest Online Indiainfoline has made investing in Mutual funds and primary market so effortless. backed by in-depth research and advice from research house and tools configured as investor friendly. • VAS (Value Added Service) 10 .

11 . Leader Speak and features is delivered in your inbox every Friday evening. a number of private sector insurance service providers commenced operations aggressively and helped grow the market. Direct and Affiliate channels. Wealth Management ServiceImagine a financial firm with the heart and soul of a twoperson organization. We offer you a dedicated group for giving you the most personal attention at every level. Five intraday ideas. A weekly outlook coupled with the best of the web stories from India infoline and links to important investment ideas. it graduated the Company into a one-stop retail financial solutions provider. As a subscriber to the Daily Market Strategy. The annuity based income generated from insurance intermediation result in solid core revenues across the tenure of the policy. To ensure maximum reach to customers across India. NEWSLETTERS The Daily Market Strategy is your morning dose on the health of the markets. which could impact the market. concurrently. Following the opening of the sector in 1999-2000. The Company’s entry into the insurance sector derisked the Company from a predominant dependence on broking and equity-linked revenues. That's not all. A world-leading wealth management company that sits down with you to understand your needs and goals.INSURANCE An entry into this segment helped complete the client’s product basket. we have employed a multi pronged approach and reach out to customers via our Network. you even get research reports of India Infoline research team on a priority basis. The India infoline Weekly Newsletter is your flashback for the week gone by. unless the markets are really choppy coupled with a brief on the global markets and any other cues. Occasionally an investment idea from the research team and a crisp round up of the previous day's top stories.

Membership: The Company widened client reach in trading on the domestic and international exchanges. Rates: The Company harnessed technology to offer services at among the lowest rates in the business.INDIA INFO-LINE DISTINGUISHED ITS BUSINESS THROUGH THE INTERPLAY OF KNOWLEDGE AND TECHNOLOGY: Complete solution: The Company provides a complete .advice to execution – solution facilitated by information and advice on likely commodity trends in the Indian and international environment. among the few Indian financial intermediaries to do so  Online business at 80% of revenues dominates commodities trading revenues  Provides regular commodity updates pertaining to the Indian and international environment 12 . Key Features  Enjoys memberships with the MCX and NCDEX. Technology: The Company has extended the trading terminal to the investor’s home/workplace reinforced with real-time commodity information and ledger position. two leading Indian commodities exchanges  Recently acquired membership of the DGCX  Multi-channel delivery model. making it among the select few to offer online as well as offline trading facilities  Extended commodity trading to retail investors.

Life Insurance. 13 . Fixed deposits.com and www. Mumbai (BSE) and the National Stock Exchange (NSE). straddles the entire financial services space with offerings ranging from Equity research. Mutual Funds. the Stock Exchange. The India Info line group. Equities and derivatives trading. comprising the holding company. India Info line Ltd and its subsidiaries.indiainfoline. Commodities trading. www.INDIA INFO LINE LTD India Info line Ltd is listed on both the leading stock exchanges in India. viz. Portfolio Management Services.5paisa. GoI bonds and other small savings instruments to loan products and Investment banking.com . India Info line also owns and manages the websites.

Thomson First Call and Internet Securities where it is amongst the most read Indian brokers. is regulated by SEBI (Securities and Exchange Board of India). making it among the select few to online as well as offline trading facilities. A SEBI authorized Portfolio Manager. It holds memberships of both the leading stock exchanges of India viz. These services are offered to Clients as different schemes. We enjoy memberships with the MCX and NCDEX. which is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contra-cyclical alternative to equities broking. We have a multi-channel delivery model. and recently acquired membership of DGCX. Its various subsidiaries are in different lines of business and hence are governed by different regulators. two leading Indian commodities exchanges.India Info-line Ltd. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. it offers Portfolio Management Services to clients. It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and '…a must read for investors in Asia'. the Stock Exchange. 14 . India Infoline's research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL). which are based on differing investment strategies made to reflect the varied risk-return preferences of clients INDIA INFOLINE COMMODITIES PVT LTD India Infoline Commodities Pvt Ltd is a 100% subsidiary of India Infoline Ltd. being a listed entity. which is engaged in the businesses of Equities broking and Portfolio Management Services. Mumbai (BSE) and the National Stock Exchange (NSE). The subsidiaries of India Infoline Ltd are: INDIA INFOLINE SECURITIES PVT LTD India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd.

The business is still in the investing phase and we plan to roll the business out across its pan-Indian network to provide it with a truly national scale in operations. Mortgages & Loans IILD has also entered the business to distribution of mortgages and loan products during the year 2005-2006. which help source and service customers across the length and breadth of India. It has an NBFC license from the Reserve Bank of India (RBI) and offers margin-funding facility to the broking customers. Our business has expanded to include the online distribution of mutual funds. Its unique value proposition of free doorstep expert advice coupled with free pick-up and delivery of cheques has been met with an enthusiastic response from customers and fund houses alike. INDIA INFO LINE INVESTMENT SERVICES LTD India Info line Investment Service Ltd is also a 100% subsidiary of India Info line Ltd. IPO’s. INDIA INFO LINE INSURANCE SERVICES LTD India Info line Insurance Services Ltd is also a 100% subsidiary of India Info line Ltd and is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is one of the largest 'vendor-independent' distribution houses and has a wide pan-India footprint of over 232 branches coupled with a huge number of 'feet-on-street'. It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd. which is India's largest private Life Insurance Company. Fixed Deposits and other small savings products.INDIA INFO-LINE DISTRIBUTION CO LTD (IILD) India Infoline. wherein users can view and compare different product offerings and download application forms which they can later submit to the product provider.com Distribution Co Ltd is a 100% subsidiary of India Infoline Ltd and is engaged in the business of distribution of Mutual Funds. 15 .

We have applied to IRDA for the insurance broking license and the clearance for the same is awaited India Info-line Insurance Brokers Ltd is a 100% subsidiary of India Info line Ltd and is a newly formed subsidiary which will carry out the business of Insurance broking.INDIA INFOLINE INSURANCE BROKERS LTD India Info-line Insurance Brokers Ltd is a 100% subsidiary of India Info line Ltd and is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking license and the clearance for the same is awaited 16 .

Technology has changed the landscape of the stock.  Simplify trading procedures and make them fully automates. which were not available with them. Lesser scope for manipulation. which were unable to interact with other SE’s started developing this own screen based trading and connecting to the other scrip’s. Prior to online trading regional stock exchanges were playing a very important role in capital markets.  Bring in transparency in the operation of the exchange. REASONS FOR THE INTRODUCTION OF ONLINE TRADING: e) Lack of transparency in the manual trading system. Regional SE. f) MAIN 0BJECTS FOR THE INTRODUCTION ON ONLINE TRADING:  Facilitate easy surveillance so that there’s less scope for speculation.ONLINE TRADING INTRODUCTION: Gone are the days of trading on the floor. NSE terminals also. markets. as they were local investors.  Provide the investor with best possible facilities and services. This also helped in accessing the quotes and other market information from other stock exchanges.  Facilitate easier transaction processing  To make the exchange more competitive by expanding it’s operating Jurisdiction lending to participation in the Inter Connected Market System (ICMS) along with other regional stock exchanges there by enabling the members to trade in large volu 17 . To reduce cost. speculation and malpractices by Brokers/member in online trading system when compared to the manual system. The look of the stock exchanges has undergone a metamorphic change in the recent years. which proved vital in the functioning of the system as a whole. g) h) To avoid the procedural deals in the manual trading.

How Many Online Centers through the World? The art of estimating how many online centers throughout the world are is an inexact one at best. Until July 2000.6 Million 9. from observing many of the published surveys over the last two years. Surveys abound.67Million FUNCTIONING OF 5 PAISA-VECTOR: 18 . the order was executed. eliminate inherent flawed transaction for trading. can service investors across the country. here is an “educated guess” as to how many are online worldwide as of September 2005. The out cry system led to the introduction of online trading on July 2000. the trading on the INDIAINFOLINE was system of trading on the floor (trading ring). inviting buy/sell quotes in the trading session from 11.02Million 182. In online trading system. ensure transparency in trading. fro a single location anywhere. Online trading of the online screen based/computerized trading known as “India Infoline Online Securities Trading system to cope with the growing volume of business.20Million 301.205Million 8.ONLINE TRADING IN INDIAINFOLINE: The online trading is simply defined as “dealing securities on net”. World Total Africa Asia/Pacific Europe Middle East Canada & USA 955.m.m. eliminate inherent flawed transaction for investor protection and fact the growing competition.93 Million 295. acceptance of this quote by another jobber.30p. based on open out cry Those interesting in buying and selling a On scrip/share had to contact a jobbers (broker) who would go to the trading ring and make physical gestures. And the number is 955. The serious deficiencies.30a. using all sorts of measurement parameters. which characterized. However.6 million. To 03.

7) Eliminate inherent flawed transaction & ensure investor protection. 4) Promote fairness and speedy matching. if possible.The system: The software behind the 5 PAISA in VECTOR (Versatile Engine for Centralized Trading & Online reporting). 3) Ensure transparency. To implement fully automated trade execution system. Objectives: The VECTOR system has been developed with a view to achieve the following objectives: 1) Reduced & eliminate. control & surveillance of the market. eliminate on matched trades & delayed reporting. The system is built around a central computer. OVERVIEW OF THE VECTOR SYSTEM: 19 . 5) Provide for online& offline monitoring. 6) Ensure smooth market operations using technology while retaining the flexibility of conventional trading practices. which is called central trading system (CTS) placed at the exchange. 2) Increasing the trading capacity of the exchange. 8) Consolidate traders data a & interface with clearing & settlement 9) Provide brokers with their data on electronic medium to interface with the broker’s office system. which is also connected to the network through its own station called the surveillance work station (SWS). The brokers interact with their customers/clients through the broken work stations (BWS) other users of the 5 PAISA include surveillance department. all the operational inefficiencies in the manual system. a proven product developed by CMC Ltd. 10) To face stiff competition from other stock exchanges.

This is the central trading session where quotes & orders would continuously come to CTs from the BSWs. set by market 0perations department.To recollect. Broker Work Station (BWS): 20 . The system provides that. news related to Board meetings. to the CTS using BWS. which can be printed online.00 a. The buy and sell orders placed by the price on the market for that scrip at that time a subsequent to matching. a particular broker would buy and sell his orders at the rate at which he buy or sell. Based on the parameters for the market.m. the brokers/traders with in their own office premise and send their. and auction orders etc.. It would allot a time frame for each order priority basis. Book closure data.30 p.30 p. brokers. SE news. to 02. negotiate deals. rights/Bonus/Dividend Declarations.The VECTOR system has been developed to computerize the trading activity of the broker as well as some of the allied activities of SE relating to the trading function. scripts. The computer would match the buy order of the broker with the best order of the other.m. and other scrip r elated information. orders would be executed. financial resuts. trade confirmation are send to the respective work station. In the computerized scenario.30 a. In the market can be known from what is known as BBO (Best Bid Offer) for each of scrip. Record Dated. on all weekdays from Monday to Friday. to 3. in-house deals.m. The best bid and best offer (Based to price and time priority). political and other will be received and entered by the market operation Departments and broadcast to all the user workstations. the prices of various scripts in the stock e exchange scan be made available using the VECTOR software in the form of news feeds to be passed on to respective agencies/firms. TRADING SESSIONS: THE TRADING TIMINGS ON THE FLOOR OF THE EXCHANGE ARE FROM 10. orders. Similarly. under the outcry mode of trading the timings were from 11.m. News feeds from other SEe also received at the CTs and broadcast to the entire user workstations.

This may include the test of top ‘n’ gainer/looser for a day. BWS has multiple screens for order entry.Broker workstations are the interface points between the broker & his customer/client. BWS provides for multi pages i. when many windows are opened on the screen at the same time. the day’s opening prices. quote entry. Thus the screen space is utilized at its optimum & at the same time maximum possible information is displayed. traded volumes will be available continuously on being queried. Other information will also be available by giving a query to the UNIQUE FEATURES OF BWS The BWS has a unique feature which facilities opening of multiple windows & different panes on the BWS screen. Profiles may be set at BWS by the individual user for scripts that he is interested in watching. and previous day’s closing pr prices. Highest & lowest prices in a particular period. top ‘n’ scripts by volume/value market capitalization etc. which enable each trader to format his own screen layouts as is convenient. the least traded price. the brokers interact with these clients through the BWS the Best Bid & offer. The screen space is to be displayed. one flip between different pages (like switching television channel) & watch different set of screen windows. Orders: 21 . they overlap & cause operational inconvenience. client wise net position. In other works. bus. The BWS has powerful profiling features.e. display of pending orders etc. trader wise &/or scrip-wise net position. columns of information available etc.

The orders are of two types: a) Limit order: .For a market order. which ever is earlier. When such a match is found. If it is buy order.Orders can be entered into the system either one at a time or in a batch Moze. a trade gets executed.A limit order is received at CTS & kept on hold fill it funds a match. The retention period can be till end of date or till end of settlement. it will be added to the pending order book. AT the end of the day. which fits the requirements of the buy order when. The order will then be taken up for matching. for any reason the order is returned back to the BWS with appropriate error message. & the pending quality diseased by the trade quantity in the local pending order book. If found invalid. The submitted order will be accepted at the CTs after validation. If & when accepted at the CTs. the system tries to find a sell order. pending orders that fall with in the criteria removal will be cancelled from the CTs. AT the BUS the trade is added to the local trade book. Each trade involves two brokers or respective traders who sent the order. an immediate match is sought. b) Market Order: . Both these traders are informed of the trade getting executed at their respectively BWS. IMPACT OF ONLINE TRADING ON THE MARKET: 22 . Market Order will not be executed if the price at which the trade could be executed deviates from the BBO price beyond the market order protection percentage of limit for the scrip as specified by the BWS.

3) NUMBER OF MEMBERS PARTICIPATING: The introduction of online trading enabled traders to do comfortable sitting in their respective offices and doing the trading in such a mode where technology provides a virtually unlimited arena. 6) OTHERS: 23 . b) Increase in the confidence of the investors because the online trading system Virtually removed all malpractice by the members. c) Facilities better monitoring of the market by the market operation department d) The daily that the best price is achieved in buying and selling 2) VOLUME OF TRADING: From the fact that the number of transactions has increased dramatically. more members in the trading owing to this these has been a dramatic increase in the number of traders from 100 to 200. This is the best BID and Best offer option of the 5 PAISA. The “almost apparent” can be brought in the facilities to breaking of bunch of shares in a transaction into the most optimal combination of selling or buying. The factor of influence could be: a) The case of operation from the point of view of both the members and the investors. The share price is usually influenced by the socio-political & economic variables.1) ON THE NUMBER OF TRANSACTIONS: The number of transaction has increase considerably after introduction of the online trading system. 4) TURNOVER: The turnover of the both the company and the traders have gone up. 5) ON THE SHARE PRICES: Automation of the trading process would not have any impact on the price of a share. The increase in turnover would bring in the expected return and soon could prove to justify the investment made in the 5 PAISA. it is almost apparent that the volume of trading would have increased.

3) This reduction in risk associated with bad delivery has lead to reduction in brokerage to the e extent of 0. before choosing an online trading site. participate in the trading from the comfort of their own offices. He can punch in the orders and see the results a t the bottom of the screen. Advantages: 1) Online trading has made it possible for any one to have easy and efficient access to more reports and charts than was previously possible if one when to brokers office. one can get instant trade confirmation. Which was not possible earlier in the outcry system. d) Deskwork reduces to minimum e) No need to be physically present in the SE & do trading. Thus. all these sites should be compared in order to form a decision. which in turn eliminates all costs and wastage of time associated with follows up for rectification. The members can ADVANTAGS OF ONLINE TRADING: Many customers. Thus. who have chosen to trade shares online today. 24 . 4) Screen based training facilitates the investor to keep a track of the transaction from the source to the end. However. After realizing the advantages of trading shares online.From the trader’s point of view. we have access to a lot more information online to self teaches ourselves.5% by quite a few brokerage firms. had at one point of time been trading through offline brokers. 2) It eliminates the risk of bad deliveries. c) Valid till day valid still settlement facilityu8 greatly enhanced the efficiency of the traders. f) Free & perfect information is available to all the members & investors. they have switched over to online trading now. following could be benefits accrued with the 5 PAISA: a) Transparency of the system. b) Less number of the people needs to do transactions.

for instance. Being online doesn’t identify the size of any particular organization.5) Online trading has left room for smaller organization to complete with multinational organization. since size is no longer a legit issue. It is like going back to school and reeducating oneself on how to trade online. like off beat net stocks. various types of IRA account. municipal bonds. unlike earlier when people bought bonds. 9) Individuals can invest in a variety of products. where tax (sales and value-added taxes) is best suited to them.  The concept of chat room. eccentric unique things and trading in global market DISADVATNAGES OF ONLINE TRADING:  The ease and speed of online trading can give the investor a false sense of security and encourage him to trade more frequently without paying and heed to market basics like. mutual funds. Now they can invest in stocks. 8) Individual’s benefit by saving comparatively a lot more hen trading online as the cost per trade is less. government. and stocks. Companies can establish themselves according to their gains and losses. 7) Online trading gives control to individual and they can exercise it over their accounts thus comprehend what is gong on they trade. corporate. as physical location is not an issue any more. reaching a company ore knowing the risk he is going to assume. may provide them with misleading information. 6) Online trading has allowed companies to locate themselves where they want. Chat room participants are often paid to highlight certain stocks. mutual fund. 25 . and index options. which has become very popular with the investors. 10) Online trading has made it possible for one to find investment options that were not available in regular basis. for long-term basis. mortgages and even insurance. individual.

 Online trading is not always instantaneous. In a rapidly changing market, Orders may not get executed at the price shown on the computer screen. This is because even a nanosecond delay can put one out of the race for that particular stock at that particular price.  Delay in execution unusually arise due to various technological ‘choke points’ like the

internet slowing down due to heavy traffic or if the modem, computers and internet service providers (ISP) is malfunctioning. If the investor does not factor in these technology lags while entering into a volatile market, he may suffer heavy losses.  The investor should formularize himself with the order entry screen and the software provided to them. Any mistakes made while inputting an order can cause him significant financial loss. Moreover, he will be responsible for any losses caused, he become liable for payment of securities.  Active trading is dependent upon a number of specialized software systems. Disruption or failure of any of ht electronic systems utilized may leave the investor with an open position at which time losses can occur.

 Customers trading on-line may have difficulties accessing their accounts due to high
Internet traffic or because of system limitations. Customers trading through respective online firms.

26

LATEST DEVELOPMENTS IN THE STOCK MARKETS Internet Based Trading: In IBT conventional stock exchanges use the net as medium for communication client through broker websites may serve a variety of functions from allowing full trading through the website to features like online stock quotes information & analysis etc. Securities & IBT has recently allowed Internet trading in a limited form. The SEBI committee on internet based securities trading & services has allowed the internet to be used as an order routing system through registered stock brokers on behalf of clients for execution of the trade. Trading on the Internet has opened new visitors & opportunities for Retail investors. Now the information on securities is available direct to the investors online and real-time, substituting the phone call “by a click” of the mouse. On 27 Jan 2000, SEBI authorities SE are in India to offer Internet trading to the investors. India entered cyber-trading era on Feb 2000. ICICI direct & investment India enabled retail investors to trade over the net from April 2000.

27

REQUIREMENT OF INTERNET TRADING SYSTEM: (1) Depositors: The first requirements to the IT’S is the accessibility to an efficient and secure depository system, with an extensive network and the availability of actively trade securities in ‘Dematerialized Format’ or ‘Demat Format’. To open a demat account now it is essential that a customer should provide his PAN number.

(2) Brokers: Website replaces the “The Broker Shop” & all information required by an investor to trade has to be displayed real-time, hence, the development of the brokers website plays a definite role in the facilitating trading, drawing new customer & retaining them the investor search for a broker who they can trust so, the latter’s website must convey efficient functionally. In the physical world it is possible for an investors to inquire about the past performance & reputation of a broker. However in the virtual world, science there is a lack of personal interaction, the website is contribute to building trusts buy effective navigation, fulfillment that includes pre-transaction information privacy & redressed policies & presentation of information & up-to-date technology A full service stockbroker may offer advice research, access to floats, access to their internet site, financial planning. A non advisory (phone or net) stockbroker may offer access to information, low cost trading, and straight through order entry.

(3) Stock Exchange: All 24 stock exchanges in the country have become electronic i.e., they have online screen-based trading where orders can be matched automatically of these maximum of (10 to 15) provide the facility of internet trading facility.

28

29 . This requires the integration of the banking system with the Internet trading system. Step 4: Open Bank Account.(4) Insurance companies & R&T agents: The role of the issuer company &/to this R&T agent in the depositor service to provide its investor with securities in the dematerialized format. THE ONLINE TRADING PROCESS: To avail of Online Trading Services the following steps may be followed: Step 1: Register on the website. they need to integrate their systems with NSDL’S or CDSL network. Step 2: Complete Registration Documentation. Step 3: Open Depository Account. convert the existing securities into the dematerialized format & rematerialize the security if required for the purpose. (5) Banks: The monetary settlement of the trading is conducted through the banking network.

the transfer of shares takes place. INDIAINFOLINE was carrying on its trading procedures based on OUT CRY SYSTEM on the floor of the exchange called the TRADING RING. which are not listed on the SE but permission for the SE in public interest grants trading in them. Specified securities are those securities in which forward trading are allowed. PERMITTED AND SPECIFIED: A security is said to be listed security when its name is added to the list of securities. These are also called cleared security.TRADING AND SETTLEMENT (MANUAL) TRADING IN INDIAINFOLINE BEFORE THE INTRODUCTION OF ONLINE TRADING: TRADING RING: Before the introduction of online trading in JULY 2000. sheikh are permitted to trade eon the floor of the exchange. In the trading space from provided for specified and non-specified sections. ultimately.m. The members or their authorized assistants have to wear a badge or carry with them their identity cards given by the exchange to enter the trading ring. Securities that are not listed in the SE are unlisted securities or unclear securities. These securities are not permitted to trade on the floor of the exchange. On acceptance of these quotes. Those interested in buying/selling a scrip/share had to contact a broker who would go the trading ring and make physical gesture inviting buy/sell quotes. They carry’s and a block Book’ or confirmation menus.30p. 30 . duly authorized by the exchange. UNLISTED. These are not traded in INDIAINFOLINE.m. Trading was officially done in the trading ring in trading sessions from 11. to 02.30 a. SECURITIES-LISTED. Permitted securities are those share/debentures.

Step 3: ENTRY OF ORDRE INTO THE BOOKS. 31 . Step 4: EXECUTION OF THE ORDER. Step 6: SETTLEMETN OF TRANSACTION. Step 7: CLEARING HOUSE. Step 5: PREPARING CONTRACT NOTES. Step 2: PLACING ORDER WITH THE BROKER.STEPS INVOLVED IN TRADING PROCEDURE: Step 1: CHOICE OF A BROKER.

Stock Exchange Settlement day Receives securities with transfer deed. Broker Agreement to act as Broker Details of securities to be purchased. R&T agent Receive share certificates & transfer deeds.HOW TRADING TAKES PLACE? PURCHASE OF SECURITIES: Investor Decision to buy securities selection of the Broker. 32 . Make payment for securities received. Record details in record shareholder register. Delivery to buyer. Stock Exchange Bargains for best offer Contract to buy securities at price indicate by investor. Broker Complete transfer deeds. Broker Prepare contract note Send contract note investor. Endorse certificates in the name of the buyer Send certificates to the broker. Transfer agent of the company. Send securities and transfer deed to register. Broker Receive certificates.

33 . Stock Exchange Settlement day Deliver securities with transfer deed. selection of the broker.SALE OF SECURITIES: Investor Decision to sell. Investor Receive payment. Retain securities with transfer with transfer deed Method of trade or placing the order. Broker Agreement to act as broker examines securities. Receive payment. Broker Prepare contract note. Stock Exchange Bargains for best offer. Send contract note to investor. Contract to sell securities at price indicate by investor.

 It may lead to price rigging. 34 .  Cumbersome procedure of settlement.  It may lead to speculation.DRAWBACKS OF OUT-CRY SYSTEM: There are several drawbacks in case of out-cry system they are:  Brokers have to attend physically on floor of the stock exchange.

1980-1999. As a result. 35 . wide ranges of bank and cotton mill securities were being traded in Bombay and Calcutta. the Indian corporations with more than 40% foreign share holdings were generally required to reduce their foreign ownership. The earliest recorded capital market dealings in India were transaction in loan stocks of the east India Company towards the end of the 18th century. Trading was concentrated in bank shares. served to stimulate activity in the securities markets. automation. The first SE in India was asset up in1875 in Bombay known as “Native share and stock Brokers Association”. mobilization and the trading and strict surveillance were the hall markets of this period. Indian SE witnessed a total revamp. From 1956 to 1980.STOCK EXCHANGE INTRODUCTION: India has well established securities market with a long history of organized trading. It was the first stock exchange set up in Asia. Act 1850. The enhancement of the Co. which introduced in the concept of limited liability to India. many such corporations offered equity to the Indian public. the Indian Stock market grew at affecting the securities market during the period was the enactment of the foreign exchange regulation Act. Now known as BSE. Under FERA. By 1830.

whether incorporated or act. Calcutta. regulation and controlling business in buying. The securities traded on stock exchanges include shares and debentures of public limited companies. Banglore. Organization of Stock Exchanges: Stock Exchanges is formed under the norms of securities contracts (regulation) Act. govt. selling and dealing securities. Hyderabad & Pune. Madras. According to securities contract (regulation) Act 1956 “ Stock Exchange is an association.’s) (c) Company limited by guarantee: Ex. (It is a joint stock co. organization or body of individuals. Bombay. Stock Exchange may be: (a) Voluntary non-profit making associations: EX. Delhi. 1956. securities etc. Indore. established for the purchase of assisting. Jaipur. 36 .What is Stock Exchange? The SE is an organized market for purchase and sale of listed industrial and financial securities. (b) Public limited company:Ex.

C: Cyclopedia of listed companies. E: Eligibility for accruals. 37 . prescribes & approves the rules. A: Authentic information N: New entrepreneurs encouraged. K: Knowledge of market. regulations and by laws of recognized stock exchanges. X: Exchange of securities transacted. H: High yield. planning and exemptions. G: Guidance to investors & companies E: Equity cult. O: Optimum return on investments. The term “Stock Exchange” implies is evident from the following features of exchange: - S: Securities provider for investors. C: Caution approach. T: Tax benefits.Central govt.

Gauhati stock exchange ltd. Vadodara stock exchange ltd.P. Magadh stock exchange ltd. Cochin stock exchange. Integrated stock exchanges 1875 1957 1957 1957 1957 1958 1963 1963 1978 1982 1983 1983 1983-84 1984 1985 1986 1989 1999 1990 1991 1991 1991 YEAR 38 1994 1999 . The Meerut stock exchange ltd. Over the counter exchange of India Bombay Saurastra Kutch. Patna Bhuvaneshwar stock exchange association ltd. stock exchange ltd. Ludhiana stock exchange association ltd. Calcutta stock exchange association limited Delhi stock exchange. Ahmedabad share & stockbrokers association. Jaipur stock exchange ltd. They are listed below in the order of year of their establishment. U. Pune stock exchange ltd. National stock exchange ltd. Hyderabad stock exchange. Indore stock brokers association. Coimbatore stock exchange ltd. Banglore stock e exchange.STOCK EXCHANGE IN INDIA At present in India 24 Stock Exchange duly recognized by the Govt. Madras stock exchange. NAME OF EXCHANGE Bombay stock exchange. stock exchange association ltd. Mangalore stock exchange ltd.

debt instruments and derivatives. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified. • Arbitration between members. the trading volumes on the Exchange showed robust growth. 39 . During the year 2004-2005. • Dealing by members. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. • Delivery of securities.The Byelaws of the Stock Exchanges: • Bargains – Spot/ hand/ special delivers/ margins. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. • Rights & liabilities of members and constituents. • Prohibition & penalties. • Brokerage and contract notes. • Defaults. The BSE's On Line Trading System (BOLT) is a proprietory system of the Exchange and is BS 7799-2-2002 certified. • Clearing for settlement of bargains. The Exchange provides an efficient and transparent market for trading in equity.

It traces its history to the 1850s. The location of these meetings changed many times. when stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. as the number of brokers 40 .HISTORY OF THE BOMBAY STOCK EXCHANGE: The Bombay Stock Exchange is known as the oldest exchange in Asia.

giving the BSE a means to measure overall performance of the exchange. The development of Sensex options along with equity derivatives followed in 2001 and 2002. the Government of India concentrated more on administration and less on development and pursuit 41 . The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'.constantly increased. GROWTH OF STOCK EXCHANGES IN INDIA: The stock market activities in India were relatively on a low key during the beginning of the decade of 80’s securities mainly because of the allies’ regime till 1947. It took the exchange only fifty days to make this transition. Historically an opencry floor trading exchange. the Bombay Stock Exchange switched to an electronic trading system in 1995. The Bombay Stock Exchange developed the BSE Sensex in 1986. In 2000 the BSE used this index to open its derivatives market. In 1956. trading Sensex futures contracts. Afterwards. expanding the BSE's trading platform. the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act.

During the 1950’s & 1960’s Indian economy was dominated by the public sector. passed in 1850 signaled the beginning of the era of joint stock companies in India. 1988. On July 19. This trend has changed since mid 80’s with liberalization on Government policies and greater freedom given to private sector. India can boast of being one of the oldest stock markets in Asia. while the London Stock Exchange was established in 1773. The Bombay Stock Exchange (BSE) was founded in 1875. Subsequently the over the counter exchange of India (OCEI) was formed in 1992 to encourage small companies list their securities. This led to foreign custodians and brokerages 42 . The companies Act. 1875 there brokers organized themselves into the Native Chorea brokers association. Indian stock market has come to a long way since the early 18th century when securities trading were initiated under a sprawling Banyan tree in front of the town hall in Mumbai.of the philosophy of public sector dominating the economy. The process of globalization began with opening up of the Indian capital market to foreign institutional investors (FIF’s) in 1992. The early 1980’s witnessed the equity cult gaining ground. In 1874. The creation of national stock exchange (NSE) by leading financial institution in 1992 triggered the move to screen based trading for equities debt instruments and hybrids. which was considered as the major vehicle for economic and industrial development. Stock Exchanges were placed under the exclusive regulation of the Government through proclamation in 1930 of the constitution of India. The government constituted the securities and exchange board of India (SEBI) on April 12. This policy of progressively deregulating the economy led to the emergence of stock markets as a major instrument of finance for industry and trade. This marked the birth of BSE. Dalal Street became the place where brokers met to conduct this business.

setting up base in India. Prior to December 1996. SEBI has recently announced that it is working to streamline stock lending and borrowing system and segregate the short selling facility to institutional participants. Today. SEBI should continue to be given greater freedom that will create confidence amongst investors the India is a well-regulated market. securities were traded and settled only in the physical mode. SEBI introduced the compulsory rolling settlement pm aT+5 basis for 409 scrip’s on July 2. To simulate the capital market the securities and exchange board of India (SEBI) introduced the securities lending scheme in Feb 1997. 2001. a host of other derivative instruments such an index options have been introduced by the exchanges. Derivatives trading began in June 2000 with index futures on the first product. SEBI approved trading in single stock futures. Recently. Today. Margin trading for channelization and utilization of bank funds in the secondary markets will help investors borrow money to finance purchases of securities or borrow securities needed for sale. In further effort to integrate with international markets. Equity research gained prominence. A significant reform was the 1996 decision to move to a dematerialized (demat) form of settlement. Regulatory measures and governance are becoming top priority exchanges and regulators. containment measured and new margining norms were introduced. They brought their best global practices to Indian markets. resulting in delays and other operational Hansen. the Indian capital market is poised to take a significant leap in to the future with the following developments: a move towards a T+3 settlement and introduction of continuous net settlement (CNS) enabling real time from settlement (RTGS). Currently there are many approved intermediaries through whom securities can be lent and borrowed. which should facilitate stock futures. 90% of markets transactions are in demat form. to streamline settlement system. Since then. The finance ministry has been working on a proposal to enable In parallel a slew of risk 43 .

the globalization of markets has made the Indian financial markets more vulnerable to external events as a result of which any movement in the global market have a corresponding ripple affected in India. Plans to establish a centralized clearing house to attend to the business of clearing and settlement of trade in debt instrument and forex transaction will stimulate increased activity in the secondary debt market. 44 . UK and EV However.market participants to integrate with international financial markets once the rupee becomes fully convertibles. it is bent to maintain a steady pace up the development curve. There measure are comparable those that have already been put in place in developed markets like the US. RESEARCH METHODOLOGY: The data collection methods include both the primary and secondary Data. While integration and compatibility are critical driven for a robust market.

Period of study: Period of study includes a period of 45 Days only. NEED FOR THE STUDY: SEBI in Sep 1996 has issued Guidelines to the Stock Exchange to go on-line trading procedure buy the end of the year 1996.1. In the second spell analysis of the data has been worked out. and magazines of the NSE. BSE. Following its directivities INDIAINFOLINE has 45 . Primary Data: This method includes the data collected from the personal discussions with the authorized clerks and members of the company. In the first spell of the period data collection process regarding on-line trading has been carried on. INDIAINFOLINE and different books relating to the issues of this study. 2. news papers . Secondary Data: The secondary data includes the data from internet.

OBJECTIVES OF THE STUDY: The objectives of the study include the study of the below mentioned aspects: 1. To study its advantages and recommendations for beneficial and effective use of the system. The major need for this study is to know the effectiveness of the on-line system in comparison with the outcry or mark trading. To know the on-line screen based trading system adopted by INDIAINFOLINE. 46 .installed the on-line trading system as on July 2000.

3. 4. 47 . To know each and every term of the IIL trading procedures. To know about DEMAT in the India Infoline for easy transfer. To know about the latest and future developments in the IIL trading system .2.  Time is to be considered as major constraint. LIMITATIONS OF THE STUDY:  Brokers are not providing complete information regarding on-line trading.

WHICH ARE PARTICIPATING IN ONLINE TRADING In capital markets.ANALYSING FIVE DIFFERENT COMPANIES AND INDIAINFOLINE. we have both public and private sectors it means that there are government and private individual participating in capital markets. 48 . For. between themselves to provide good quality service at the possible minimum cost than other private individuals or companies. this the private individual are competing.

Costs: The costs which are charged by the India infoline to open demat account and online trading account is Rs. brokerage. 6) Investment. 1. INDIA INFOLINE: Now we will see how India infoline offer online trading to its investor or customers. This account is compulsory for online trading.Manual trading has been replaced by online trading.500 and depending on margin deposited. speed features. without this account trading is not allowed. so that it facilitates the investors to open demat account with company. From these companies we had analyzed their costs. there are several companies offering this trading. flexibility and site ease. but for our study we have taken six companies and were are comparing between them. so to check which company is better than other and company provides best service to people or investors. 49 . For this purpose we have taken six companies they are: 1) India Info line Securities 2) Kotak Securities 3) ICICI Securities 4) HDFC Securities 5) Share khan.

which they like by checking the prices. are: Customer service: The service given to customers is good. This company also provides stock quotes updating on automatic streaming quotes by the investors. than other companies. which the India infoline has. This is the main important feature of India infoline and moreover it is so famous for this reason.Brokerage: In India infoline the brokerage. Price alerts: The price alerts are mentioned by India infoline. 50 . The prices get changed immediately within seconds. This is charged to deliver the cash to customers or to receive cash from customers. the speed for order execution is very good. Service tax of 10. So it is difficult to guide investor regarding the price alerts. which is charged for transaction made by the investor is Nil. FEATURES: The different features.2% of brokerage will be charged in addition.108% per transaction. and if any problem arises it is solved quickly. Commission for intra-day squared off transaction is 0. An important feature of India infoline is that it doesn’t charge any additional cost for phone orders made by the investors. For Delivery transaction India infoline charges 0. this helps the investors to easily invest in the stocks. it gives information regarding the customer’s inquiries.27% on the transactions. Speed: Online trading mainly depends on the software used to trade with stock exchanges. the software used by them is more advanced.

this helps the investor to do trading from different branches. Site ease:  Portfolio valuation: This helps the investor to invest in different company scrip’s.Short Selling: Yes. but no manual intervention is allowed by India infoline. this will facilitate the investors a lot to invest and to deal with exchanges with so much ease. Exchanges: India info-line acts as broker between investors and stock exchanges. for this reason India info line provides bank account of HDFC bank and also one private bank is also added. Derivative Trading: This trading is becoming.  Offline Options: This means it helps its investors or participants to visit any of its branches to trade. it is easy to speculate and it is more profitable. it provides short selling. It deals with Bombay stock exchange and National Stock Exchange. here the investor directly does not deal in money. so that they can get good profits out of their investments. so popular because. this helps the investors to please orders at any point of time. this company provides derivative trading.  India info line Company provides another extra feature that it takes order after trading hours also. it is carried by the company itself 51 . Leverage till Settlement: It provides leverage till settlement 4 times. Flexibility: Flexibility means how the company offers different options for investors or its customers.  Bank account for instant transfer this helps the investors to transfer through bank account.

KOTAK SECURITIES: Kotak Securities caters exclusively to your stock broking and investment requirements.  IPO’S: Initial Public Offers are carried on by the India infoline. Kotak Securities needs no introduction as one of the largest stock broking houses in the country and a leading distributor of primary market offerings. so that it India infoline facilitates the investor to make right decisions in right time. This helps to allocate the funds of different people at one place. This helps them to enter in to the market to fuller extent.  Information: Information regarding India infoline can be accessed through indiainfoline reports and free tips are also give through sms by A. 2. Mutual funds: India infoline provides mutual funds or it also trades in mutual or it also trade in mutual fund at indiainfoline. Kotak Securities Limited is joint venture 52 .

without this account trading is not allowed. Commission for intra-day squared off transaction is 0.03 per transaction. is nil.  For Delivery transaction Kotak Securities charges 0. 19. the broking turnover of Kotak was RS.between Kotak Mahindra Bank and Goldman Sachs. Speed: Online trading mainly depends on the software used to trade with stock exchanges. This account is compulsory for online trading. than other companies. which is charged for transaction made by the investor.2% of brokerage will be charged in addition.18% for delivery on the transactions. Brokerage:  In Kotak securities the brokerage. 40.1200 and depending on margin deposited.000crore plus during 2000-2001. so that it facilitates the investors to open demat account with company. and this is twice the amount raised by its closest competitors. in the secondary market. the speed for order execution is very good. The software used by them is more advanced.  Service tax of 10. 25 per call after the investors complete the limit of 20 calls per month. This is charged to deliver the cash to customers or the receive cash from customers. The company rose over Rs.000 crore in the primary market in 1999-2000 alone.  An important feature for the Kotak Securities is that it charges Rs. Costs: The costs which are charged by the Kota Securities to open demat account and online trading account is Rs. the international investment banking and brokerage firm. 53 .

FEATURES: The different features. The prices get changed immediately within seconds. Leverage till Settlement: 4 Times. 54 .This company also provides stock quotes updating on automatic streaming quotes by the investors. it gives information regarding the customer’s inquiries. Short Selling: Yes. which the Kotak Securities have. are: Customer service: The service given to customers is good. this helps the investors to easily invest in the stocks. Flexibility: Flexibility means how the company offers different options for investors or its customers. which they like by checking the prices. and if any problem arises it is solved quickly. Price alerts: The price alerts are mentioned by Kotak Securities. So it charges some amount regarding the price alerts.

so popular because.com 3. here the investor directly does not deal in money. 55 .kotaksecurities. IPO’S: Initial Public Offers are carried on by the Kotak Securities. this company provides derivative trading. it is easy to speculate and it is more profitable. It deals with National Stock Exchange. HDFC. Mutual funds: Kotak Securities provides mutual funds or it also trades in mutual funds this helps to allocate the funds of different people at one place. Kotak Mahindra Bank. this will facilitate the investors a lot to invest and to deal with exchanges with so much ease. This also helps them to enter into the market to fuller extent. Kotak Securities Company provides another extra feature that it takes order after trading hours also. Derivative Trading: This trading is becoming.Exchanges: Kotak Securities acts as broker between investors and stock exchanges. ICICIDIRECT: Now we will see how ICICI offer online trading to its investors or customers. Information: Information regarding Kotak Securities can be accessed through their website www. this helps the investors to please orders at any point of time. so that they can get good profits out of their investments. this helps the investor to invest in different company scrip’s. Site ease: Portfolio valuation: They offer portfolio valuation. for this reason Kotak Securities provides bank account of Citibank. UTI. Bank account for instant transfer this helps the investors to transfer through bank account. Offline Options: It takes phone calls and takes requests of the investor but it charges extra for this service.

2% of brokerage will be charged in addition. After that. For 20 calls per month free and 5 orders/calls free. Brokerage:  In ICICI the brokerage. This company also provides stock quotes updating on automatic streaming quotes by the investors. Service tax of 10. so that it facilitates the investors to open demat account with company. 25 per order in case of delivery else Rs.  Commission for intra-day squared off transaction is 0. the speed for order execution is very good. This account is compulsory for online trading. which the ICICI has. 25 per call.1% to 0. This is charged to deliver the cash to customers or to receive cash from customers. FEATURES: The different features.  For Delivery transaction ICICI charges 0. which they like by checking the prices.Costs: The costs which are charged by the ICICI to open demat account and online trading account is Rs. Speed: Online trading mainly depends on the software used to trade with stock exchanges.15. than other companies.750 and depending on margin deposited.  An important feature ICICI is that it charges additional cost for phone orders made by the investors.15% per transaction. this helps the investors to easily invest in the stocks. Rs. are: 56 . which is charged for transaction made by the investor is Rs.85% for delivery on the transactions.4% to 0. the software used by them is more advanced. without this account trading is not allowed.

Offline Options: It takes phone calls and takes requests of the investor but it charges extra for this service. and if any problem arises it is solved quickly. FLEXIBILITY: Flexibility means how the company offers different options for investors or its customers. this company provides derivative trading. Bank account for instant transfer this helps the investors to transfer through bank account. for this reason ICICI provides ICICI bank account. Derivative Trading: This trading is becoming. SITE EASE: 57 . this will facilitate the investors a lot to invest and to deal with exchanges with so much ease. Short Selling: Yes. it gives information the customer’s inquiries. So it charges some amount regarding the price alerts. this helps the investors to please orders at any point of time. regarding Price alerts: The price alerts are mentioned by ICICI. Leverage till Settlement: 3-6 times depending on scrip volatility.Customer service: The service given to customers is good.ICICI Company provides another extra feature that it takes order after trading hours also. The prices get changed immediately within seconds. Exchanges: ICICI acts as broker between investors and stock exchanges. it is easy to speculate and it is more profitable. here the investor directly does not deal in money. It deals with Bombay stock exchange and National Stock Exchange. so popular because.

so that they can get good profits out of their investments. Information: Information regarding ICICI can be accessed through their website www. HDFC SECURITIES 58 . This also helps them to enter into the market to fuller extent. Mutual funds: ICICI provides mutual funds or it also trades in mutual funds this helps to allocate the funds of different people at one place. this helps the investor to invest in different company scrip’s. IPO’S: Initial Public Offers are carried on by the ICICI.ICICIDIRECT.com 4.Portfolio valuation: They offer portfolio valuation.

convenience and hassle-free trading tools. Our mission is to provide our customers with the most useful investment guidance and investment-related services available in the country.2% of brokerage will be charged in addition.HDFCSEC is a brand brought to you by HDFC Securities Ltd. HDFCSEC will equip you with the necessary tolls to allocate. select and manage your investments. Service tax of 10.. Costs: The costs which are charged by the HDFCSEC to open demat account and online trading account is Rs.15% per transaction. This is charged to deliver the cash to customers or to receive cash from customers.40 for delivery on the transactions. we want to become a one-stop solution for all your investment needs. Speed: 59 .700 and depending on margin deposited. Brokerage:  In HDFCSEC the brokerage.  For Delivery transaction HDFCSEC charges 0. Commission for intra-day squared off transaction is 0. 7. wisely and also support it with the highest standards of service. which is charged for transaction made by the investor is Rs. without this account trading is not allowed.  An important feature ICICI is that it doesn’t charge any additional cost for phone orders made by the investors. one that will help you get the most out of your money.50 per order. so that it facilitates the investors to open demat account with company. which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customers base of the HDFC Group and other investors a capability to transact in the Stock Exchanges & other financial market transactions. This account is compulsory for online trading.

Leverage till Settlement: Nil regarding FLEXIBILITY: 60 . which the HDECSEC has. the speed for order execution is very good. than other companies. FEATURES: The different features. this helps the investors to easily invest in the stocks. This company also provides stock quotes updating on automatic streaming quotes by the investors. Short Selling: No. which they like by checking the prices. and if any problem arises it is not solved quickly. are: Customer service: The service given to customers is poor. it gives information the customer’s inquiries. the software used by them is more advanced.Online trading mainly depends on the software used to trade with stock exchanges. Price alerts: The price alerts are mentioned by HDFCSEC. The prices get changed immediately within seconds. So it is difficult to guide investor regarding the price alerts.

Flexibility means how the company offers different options for investors or its customers. It deals with National Stock Exchange. it is easy to speculate and it is more profitable. Derivative Trading: This trading is becoming. Information: Information regarding HDFCSEC can be accessed through their website www. Exchanges: ICICI acts as broker between investors and stock exchanges. Offline Options: It takes offline options through the phone calls. Mutual funds: HDFCSEC doesn’t trade in mutual funds. SHAREKHAN: 61 . here the investor directly does not deal in money.HDFCSEC.com 5. but this company doesn’t provide derivative trading. Bank account for instant transfer this helps the investors to transfer through bank account. this helps the investors to please orders at any point of time.HDFCSEC Company provides another extra feature that it takes order after trading hours also. this will facilitate the investors a lot to invest and to deal with exchanges with so much ease. SITE EASE: Portfolio valuation: This helps the investor to invest in different company scrip’s. for this reason HDFCSEC provides bank account of HDFC. so that they can get good profits out of their investments. IPO’S: Initial Public Offers are not carried on by the HDFCSEC. but this facility is not provided by HDFCSEC. so popular because.

the speed for order execution is very good. this helps the investors to easily invest in the stocks. Speed: Online trading mainly depends on the software used to trade with stock exchanges.2% of brokerage will be charged in addition.10% per transaction. Commission for intra-day squared off transaction is 0. which they like by checking the prices.50% to 0.Share khan is an equities focused organization tracing its lineage to SSKI. Costs: The costs which are charged by the SHAREKHAN to open demat account and online trading account is Rs. This is charged to deliver the cash to customers or to receive cash from customers. Share khan brings to you a user-friendly online trading facility. Service tax of 10. FEATURES: 62 . coupled with a wealth content that will help you stalk the right shares. a veteran equities solutions company with over 8 decades of experience in the Indian Stock markets.75% for delivery on the transactions. so that it facilitates the investors to open demat account with company. which is charged for transaction made by the investor is Rs. without this account trading is not allowed. Brokerage: In SHAREKHAN the brokerage. 300-500 per year. than other companies. An important feature SHAREKHAN is that it doesn’t charge any additional cost for phone orders made by the investors. This account is compulsory for online trading. This company also provides stock quotes updating on automatic streaming quotes by the investors.750 and depending on margin deposited. For Delivery transaction SHAREKHAN charges 0. the software used by them is more advanced.

The prices get changed immediately within seconds. And it is making necessary changes to deal with Bombay stock exchange. So it is difficult to guide investor regarding the price alerts. GTB. Price alerts: The price alerts are mentioned by SHAREKHAN. here the investor directly does not deal in money. which the SHAREKHAN has. Bank account for instant transfer this helps the investors to transfer through bank account. and if any problem arises it is not solved quickly.The different features. are: Customer service: The service given to customers is good. 63 . Derivative Trading: This trading is becoming. Exchanges: SHAREKHAN acts as broker between investors and stock exchanges. It deals with National Stock Exchange. HDFC and also three private banks are also there. this will facilitate the investors a lot to invest and to deal with exchanges with so much ease. it gives information regarding the customer’s inquiries. it is easy to speculate and it is more profitable. this helps the investors to please orders at any point of time.SHAREKHAN Company provides another extra feature that it takes order after trading hours also. IDBI bank. this company provides derivative trading. 4 times. Short Selling: Yes. so popular because. Leverage till Settlement: FLEXIBILITY: Flexibility means how the company offers different options for investors or its customers. for this reason SHAREKHAN provides bank account of Citibank.

Information: Information regarding SHREKHAN can be accessed through their website www. this helps the investor to do trading from different branches. Mutual funds: SHAREHHAN trade in mutual funds. IPO’S: Initial Public Offers are carried on by the SHAREKHAN.Offline Options: This means it helps its investors or participants to visit any of its 240 branches to trade. so that they can get good profits out of their investments. INVESTMENTS: 64 .com 6. SITE EASE: Portfolio valuation: This helps the investor to invest in different company scrip’s. This helps them to enter in to the market to fuller extent.SHAREKHAN.

(offers travel related services like money transfer and money changing). it has been accredited with ISO 9001:2000 certification by SGS. BPO and Offshore Software Development). and 4) Asit C Mehta Comdex Services Private Ltd.(commodity market brokerage service through MCX and NCDEX).500 and depending on margin deposited.com is a investment portal launched in early 2001 to facilitate Resident Investors to invest in India equities (stocks) using new age technology of Internet as a medium of operation. ACMIIL has been serving equity investors (Retail as ell is Institutional) across India through its presence in over 180 locations. the Bombay Stock Exchange (BSE) and The National Stock Exchange of India Limited (NSE). without this account trading is not allowed. Established in 1985. 2) Nucleus Net soft & GIS Services (GIS.Investments . Brokerage: 65 . Investmentz. (inter bank forex market brokerage). Costs: The costs which are charged by the INVESTMENTZ to open demat account and online trading account is Rs. ACMIIL is Flagship Company of the Mumbai based Nucleus group. a leading brokerage house in India having corporate membership of BSE and NSE. Switzerland. (ACMIIL). so that it facilitates the investors to open demat account with company.com is a division of Asit C Mehta Investment Intermediates Ltd. The investor has facility to use a browser or socially designed software for his investment in both the premium stock exchanges namely. Other companies within this group are: 1) Nucleus Securities Ltd. 3) Asit C Mehta forex Private Ltd. This account is compulsory for online trading. As a certification to the quality of the equity broking business.

Leverage till Settlement: Nil. are: Customer service: The service given to customers is good. FLEXIBILITY: 66 . which is charged for transaction made by the investor is 1PAIS PER SHARE. this helps the investors to easily invest in the stocks.  Service tax of 10. In INVESTMENTZ the brokerage. the software used by them is more advanced. FEATURES: The different features. This company also provides stock quotes updating on automatic streaming quotes by the investors. the speed for order execution is very good.  For Delivery transaction INVESTMENTS charges 0. than other companies.  Commission for intra-day squared off transaction is 0. This is charged to deliver the cash to customers or to receive cash from customers. it provides short selling.108% per transaction. it gives information regarding the customer’s inquiries.54% on the transactions. Price alerts: The price alerts are mentioned by INVESTMENTS.2% of brokerage will be charged in addition. which the INVESTMENTS have. which they like by checking the prices. and if any problem arises it is not solved quickly.  An important feature of INVESTMENTZ is that it doesn’t charge any additional cost for phone orders made by the investors. Short Selling: Yes.  Speed: Online trading mainly depends on the software used to trade with stock exchanges.

Derivative Trading: speculate and it This trading is becoming. so that they can get good profits out of their investments. Mutual funds: INESTMENTS provides mutual funds or it also trade in mutual fund. Offline Options: Phone calls SITE EASE: Portfolio valuation: They offer portfolio valuation. TRADING HOURS ARE 04. Exchanges: INVESTMENTS acts as broker between investors and stock exchanges. It deals with Bombay stock exchange and National Stock Exchange. so popular because. Information: Information regarding INVESTMENTS can be accessed through newsletters and reports and also through their website www. it is easy to is more profitable.30-09. this helps the investor to invest in different company scrip’s. IPO’S: Initial Public Offers are not carried on by the INVESTMENTS.INVESTMENTS Company provides another extra feature that it takes order after trading hours also. here the investor directly does not deal in money.Flexibility means how the company offers different options for investors or its customers.30. Bank account for instant transfer this helps the investors to transfer through bank account. and for this reason 5PAISA provides bank account of HDFC bank and also ICICI bank. this company provides derivative trading.INVESTMENTS.com 67 . this will facilitate the investors a lot to invest and to deal with exchanges with so much ease.

SHAREKHAN.GRAPH SHOWING THE DIFFERENCES IN THE DEMAT FEES CHARGED BY DIFFERENT COMPANIES Different Demotes 1400 1200 1000 800 600 400 200 0 INTERPRITATION From the above graph analysis it clearly gives that the demat fee charges of India info line is great that any other companies of such kind ICICI. KOTAK. HDFCSEC.I 68 .

 Instant bank account should be provided as the other companies are providing.  Most of the investors like to trade along with brokers.  Due to invention of online trading here has been greater benefit to the investors as they could buy/sell shares as and when required.  It should increase the speed of executing the orders.  India Infoline has to give more advertisement through the media stating the advantage to the investors by using the India Infoline. So that the investor can avoid the fraud.  It should have separate department for portfolio management.  Online trading reduces the trade time.  Tips are available for trading online and invest wisely.  It has to take necessary steps to attract the customers through the Internet.FINDINGS  Online trading is more powerful & advantageous than manual trading.  Online makes direct contact between the investors and it avoids the presence of middleman.  The software or the systems used in online trading should be advanced and the persons who operate should have minimum knowledge. 69 .

 To explain the investors how to work on DEMAT services.  It is necessary to explain the benefit of the on-line trading to the investors.SUGGESTIONS  I suggest the company to take steps to educate investors about their rights and duties.V channels. 70 .  Try to explain them how fraud will take place so that they can be alert and they can take necessary steps to avoid the frauds.  For the awareness of on-line trading process it is necessary to conduct various programs in different T. try to increase investor’s confidence.

The RSE’s have their own advantages like being nearer to the retail investor an to let the RSE’s perish would be determined to stock market system there is no brokerage firms with in India with national reach. So that transaction will be performed efficiently. If online trading is done with proper infrastructure and software in place then it facilitates smooth trading. The concepts of business have change and today this has become service to clientele to provide the best possible service to clientele to engage into new business from the regional center to the metro centers and to impart liquidity introduction of online trading is necessary. Tips are available for trading online and invest wisely. The software or the systems used in online trading should be advanced and the persons who operate should have minimum knowledge or if they are very well versed about the functioning of the system then it will be helpful in smooth functioning of online trading. and have brought the countrywide market to doorstep. and it would require sound intrastate and trading as per international standards.Due to changes in the technology HSE has changed its trading activities into online trading system. things have changed dramatically over the last 3-4 years. Things are changed for the better with the HSE has going coupled with endeavor to stream line the whole trading system.CONCLUSIONS Online trading is more powerful & advantageous than manual trading. In the present scenario HSE is required to compete with NSE. 71 . Borders of the regional stock exchanges (RSE) have suddenly been thrown to intense competition from their counter parts across the country. New and advanced technologies have breached geographical and cultural barriers. So that the investor can avoid the fraud.

The introduction of online trading would influence in the investors resulting in an increase in the business of the exchanges. The existing system can be further improved by introduction of stop loss facility. The regional stock exchange has greater scope than compared to the earlier times because of invention online trading. Also there is a need for exchanges to exchanges to setup standing committee into break down of online trading. 72 . Due to invention of online trading here has been greater benefit to the investors as they could buy/sell shares as and when required and that to with online trading. It has helped the broker’s handling a vast amount of transactions and this can be achieved with every delivering and settlement system with adequate protection to investors. it will inspire confidence in investor resulting in increase in business of the exchange. The longer trading tine had helped the investors as well as the broker to take much interesting the trading of the securities as they had got extra time to take in the security market. The concept of business has changed today this is a service oriental industry hence the survival would require them to provide the best possible service to the client. which will help to reduce investor’s losses. The trading g of HSE of the first day was RS 1.8crores.

Pearson education. 3/e.A.com www.Y.com www. M.    Subbalakshmy. V.economictimes. Prasanna Chandra. Security Analysis And Portfolio Management. Investors Preference Related to Securities Market.  Philip Gotthelf.moneycontrol.Khan. Investment analysis on securities and Portfolio management.amazon. 2004.sebi.com www. fundamentals of investment.gov.religare.bseindia. TechnoFundamental Trading.nseindia.com www.com www.Avadhani . 3/e Tata McGraw-Hill. 2006.com  WEBSITES:       www. Financial Services.google.com www. 2006.BIBLIOGRAPHY BOOKS:   Alexander. 2006. 8/e Himalaya Publishers.sagejournal.sebi. SEARCH ENGINES:   www. Tata McGraw-Hill.com www.com www.in  73 .

Sign up to vote on this title
UsefulNot useful