A PROJECT REPORT ON DEMAT AND ONLINE TRADING AT BONANZA PORTFOLIO LIMITED

Project report Submitted in the Partial fulfillment for the award of

POST GRADUATE DIPLOMA IN PLANNING AND MANAGEMENT

FROM INDIAN INSTITUTE OF PLANING AND MANAGEMENT (IIPM) MUMBAI

Submitted by Ankur Khaitan

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DECLARATION
I ANKUR KHAITAN a Student Of MBA, IIPM (INDIAN INSTITUTE OF PLANNING AND MANAGEMENT), MUMBAI declare that the Project Entitled Demat and Online Trading. In Partial Fulfillment of MBA Degree Course in BONANZA PORTFOLIO LTD is my Original Work.

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ACKNOWLEDGEMENT
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 Bonanza portfolio ltd. While training I learnt many things about capital market and its structure. So I am very thankful to Bonanza portfolio ltd. 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 Mr. Achin goel, vice president for permitting me to take the training at bonanza portfolio Ltd. I want to express my sincere gratitude to Mr. Sumit Garg, manager and to all the staff members of bonanza for spending their precious time and sharing the valuable information with me and in helping my project to be a success.

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

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CONTENTS
Page no.
DECLARATION..2 ACKNOWLEDGEMENT...3 PREFACE..4

INTRODUCTION OF STUDY........5 COMPANY PROFILE..9 COMPETITORS13

RESEARCH METHODOLOGY.14
ANALYSIS AND INTERPRETATION..15

FINDINGS..20

CONCLUSIONS25

LIMITATIONS..26

SUGGESTIONS.27

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BIBLIOGRAPHY..28

INTRODUCTION
WHAT IS STOCK MARKET?

TO STUDY

Most people understand that a stock market is a place where shares are bought and sold, and in essence this is true. Most people understand a stock market is dominated by traders who speculate on the price of shares to make a profit on the difference between the buying and selling price, and in essence this is true. But a stock is so much more in-depth than these two basic propositions would suggest, and requires some deeper analysis to get to the bottom of what's really going on. A stock market is a primarily a virtual exchange of securities (that is, shares and debentures, which companies use as a means of raising finance) and derivatives (i.e. virtual instruments such as contracts that relate to assets and securities and can be traded). It is virtual in the sense that the market is an intangible concept, rather than a physical place, and as a result of advancing technologies traders can now get involved with little more than a laptop or mobile phone. The market brings together a range of traders of all shapes and sizes - from small, one-man bands trading for their own personal gains through to hedge funds managing billions in assets, and everything in between.

DEMATERIALIZATION:
Dematerialization is the process of converting the physical form of shares into electronic form. Prior to dematerialization the Indian stock markets have faced several problems like delay in the transfer of certificates, forgery of certificates etc. Dematerialization helps to overcome these problems as well as reduces the transaction time as compared to the physical segment. The article discusses the procedures, advantages and problems of dematerialization.

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The Indian Stock markets have seen a major change with the introduction of depository system and scrip less trading mechanism. There were various problems like inordinate delays in the transfer of share certificates, 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 .To overcome these problems physical dealing in securities should be eliminated . The Indian stock market introduced the system of dematerialization recognizing the need for scrip less trading. According to the Depositories Act, 1996, an investor has the option to hold shares either in physical or electronic form .The process of converting the physical form of shares into electronic form is called dematerialization or in short demats. The converted electronic data is stored with the depository from where they can be traded. It is similar to a bank where an investor opens an account with any of the depository participants. Depository participant is a representative of the depository .The DP maintains the investors securities account balances and intimates him about the status of holdings.

ONLINETRADING
Online Trading is an easy way to buy and sell shares from the comfort of ones place instead of trading through individual stockbroker and broking firms, the customer can transact with the help of mouse click and his visits to the neighborhood broker will become a thing of the past. Even the older generation is adapting the online trading route. Find the right depository to provide with an online trading account can be difficult, but many banks and companies offer excellent services for online trading. Our needs will determine which online broker is best for us. Online trading brings in total transparency between brokers an investor in case of secondary market operation. Whether we are buying a mutual fund, investing in commodities market or any other transaction can be performed with minimal fuss. In India presently online trading can take place through order routing system, which will route client orders to exchanges trading system for execution of trade on stock exchange (NSE and BSE). One of the measure attractions of online trading is the wealth of free commentary and analysis about stock market and global economy. Any investor with an ounce of market savings can extract all the data needed to make trading decisions and complete the trades. An important catalyst behind the emergence of thriving online brokerage system has been the buoyant stock market. One can trade online with e-brokerage such as ICICI Direct, HDFC Securities, India Bulls, Kotak Street and India Info lines 5paisa.com.

NEED OF STUDY:
With the emergence of the internet in everyday business, the significance of the online stock market trading broker has gone up. It can be done from home at any desired fixed hours of the investor. 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. The investments made are safe and secured and profit is earned at proper time without any dispute. Online trading updates are also provided to

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the investors and also about the present grade of their orders either through the interface or e-mail. The investors increase shares and make development to the company..

OBJECTIVES OF STUDY:
To Study & understand the concept of Online trading. To know the time information & importance & the role played by the stock exchanges in the process of online trading. To know the reasons for the introduction of online trading and their Benefits. To review the changes that Online trading brought when compared with the previous systems.

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. Secondary collection methods: The secondary collection methods includes the lectures of the superintend of the department of market operations and so on. Also the data collected from the news, magazines of the Net worth and different books issues of this study. SCOPE OF STUDY: The study is limited to Demat and Online Trading. And since the year 2000, a big boom has been witnessed in the Indian stock Market when the market showed the coming up of Online Trading System. Many Online stock trading companies came but initially due to lack of Online Trading some Companies Vanished and some survived. The Companies which are survived are getting the handsome returns also attracting the foreign Investment Companies. Now a day this sector is facing cut-throat Competition. And also provides huge growth prospects. LIMITATIONS OF STUDY:

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A good report tells us the results of the study. But every project has its own Limitations. These Limitations can be in terms of: There is lack awareness among people about investing in stock market. So people who are aware of such things were found in specific areas for survey purposes. Most people are comfortable with traditional system in small towns and like to trade from their respective brokers, hence not providing their true opinions. Most of people are not using technology and Internet is growing still it is not at the required level. Some of the respondents who did not do Online trading were able to respond only to some questions.

Limitations towards Demat and online trading confined to keep the study in manageable limits.

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 Exchange Traded Derivatives and cash market products. Bonanza has spread its trustworthy tentacles all over the country with more than 1025 outlets spread across 340 cities.

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It provides an extensive smorgasbord of services in equity, commodities, currency derivatives, wealth management, distribution of third party products etc. Keeping in par with the modern tech-savvy world , Bonanza makes an integrated and innovative use of technology; 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. 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. To add to our ever-growing achievements, a study by Dun and Bradstreet has rated Bonanza as the SIXTH largest broking house in terms of equity terminal listings in the country. If this is not enough, 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. Also Bonanza has been awarded by BSE the "Major Volume driver for the year 2004-2005, 2006-2007 and 2008-2009".

ACHIEVEMENTS

5th 4th

largest in terms of no. of offices for the year 2010-2011*.

Top Equity Broking House in terms of branch expansion for 2008*.

in terms of Trading terminals for the year 2010 - 2011*.

6th

in terms of Sub Brokers for the year 2010-2011*.

Nominated among the Top 3 for the "Best Financial Advisor Awards 08" in the category of National Distributors Retail instituted by CNBC-TV18 and OptiMix.

Nominated among the Top 3 for the "Best Financial Advisor Awards 09" in the category of National Distributors Retail instituted by CNBC-TV18 and OptiMix.

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Awarded by BSE Driver 04-05, 06-07, 07-08.

Major

Volume

Ranked nd by UTI MF & CNBC TV 18 Financial Awards 2009 in the category Best Financial Advisor- Retail.

Top in Commodity Segment in Bloomberg UTV

India's Valuable Financial Advisory & Stock Broking Company - as per Business Leadership Award 2012 organized by the India Leadership Conclave and Indian Affairs Magazines.

No. 1

CORPORATE TIE UPS

The company has Corporate Tie ups with Birla Sunlife, Bajaj Allianz, ICICI Prudential, SBI, Aviva, Kotak Mahindra and Reliance for Life Insurance and General Insurance. In General Insurance, Bonanza provides Insurance for Motor, Health, Travel, Housekeeper, Shopkeeper, Marine, Personal and Group Insurance.

REASONS TO CHOOSE Bonanza Portfolio

LTD.

Bonanza Portfolio ltd has more than eight decades of trust and credibility in the Indian stock market.

Customer-centric

approach At Bonanza, customers comes first. And their satisfaction is not just our top priority but also the driving force for us, every single day.

Transparency
Honesty is our forte. We believe in dealing on thoroughly ethical grounds, being fair and transparent with our customers.

Meritocracy We recognize and appreciate efforts put in by our employees. And we, as a matter of fact, reward and distinguish each one of them, ceaselessly.

Solidarity we believe in sharing a forthright and respectful relationship with our business

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partners and employees. We consider them both as our team associates, who work together. Succeed together.

TECHNOLOGY
With our online trading account you can buy and sell shares in an instant from any PC with an Internet connection. You will get access to our powerful online trading tools that will help you take complete control over your investment in shares.

KNOWLEDGE
In a business where the right information at the right time can translate into direct profits, you get access to a wide range of information on our content-rich portal, bonanzaonline.com. You will also get a useful set of knowledge-based tools that will empower you to take informed decisions.

CONVENIENCE
You can call our Dial-N-Trade number to get investment advice and execute your transactions. We have a dedicated call-centre to provide this service via a toll free number from anywhere in India.

CUSTOMER SERVICE
Our customer service team will assist you for any help that you need relating to transactions, billing, Demat and other queries.

INVESTMENT ADVICE
Bonanza has dedicated research teams for fundamental and technical research. Our analyst constantly track the pulse of the market and provide timely investment advice to you in the form of daily research emails, online chat, printed reports and SMS on your phone.

BENEFITS

Free Online Trading Terminal Online application based / Web based trading software

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24 x 7 back office assistance / state-of-the-art infrastructure and connectivity Physical delivery desk National reach Brand and corporate parentage Professional management Commodity Research Desk Free SMS alerts

Daily reports Weekly reports Monthly reports

Assist for commodity hedging

SERVICE PROVIDED BY BONANZA

1. Mutual Funds 2. Insurance Life Insurance General Insurance

3. Portfolio Management Services 4. Share Broking 5. Initial Public Offering 6. Currency Derivatives 7. Share Broking 8. Commodity Broking

COMPETITORS

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RESEARCH METHODOLOGY
The basic task of research is to generate accurate information for use in decision making. Research can be defined as the systematic and objective process of gathering, recording and analyzing data for aid in making business decisions. There are basically two techniques adopted for obtaining information: Primary Data. Secondary Data. Primary Data is gathered specifically for the project at hand through personal interviews with the accounts officers. 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. It is less expensive than the primary data. Data Collection: Data is collected from secondary sources. Sources of data collection are: 1) www.bonanzaonline.com 2) www.nseindia.com 3) www.bseindia.com 4) www.moneycontrol.com For the successful research the manipulation of certain things, concepts, and symbols for the purpose of generalization is inevitable. Research is simply the pursuit of truth with the help of the study.

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Analysis and Interpretation

1. 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

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. 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? (a) Very easy to operate (b) Very difficult to operate (c) Not secure (d) Any other

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Sample size 100

According to this survey we find that 60% of people find very easy to operate and 15% people find difficult two operate and 10% and 15% people find no secure and any other. so we can say that online trading is very simple to operate and easy to understand. 3. 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. So we can say that the people are not investing more money in the share market because there is a great risk involved while doing the trading.

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4.

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. So we can say that people are generally invested in stock market weekly basis. 5. 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 say that mostly people are awareness about the on line trading and because of this reason the mostly people are optimizing offline trading.

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6. 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. 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 (d) Any other Sample Size 100

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According to this survey we find that 15% of people say 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 gripped the knowledge through T.V.

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FINDINGS
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 say 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. 4. 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 invested 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 say 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.

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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 gripped the knowledge through T.V. 9. How did you come to know about bonanza portfolio Ltd.?

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10. The USP of Bonanza Portfolio Ltd.

11. Biggest Competitor of Bonanza Portfolio Ltd.

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12. The most preferred product at Bonanza

13. The areas of improvement for Bonanza Portfolio Ltd.

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

15. The Reasons for not attending the Training Sessions

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

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LIMITATIONS
Despite of the training my level best, there were still some limitation which I think remains there to draw fruitful conclusion. There were some practical problems 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. As a client one will access the NSE through a server of the online brokerage and this may involve queuing delays If one likes to ask his broker " Aaj kya achcha lag raha hai " he may not be able to do so. If he wants advice on a particular stock in his portfolio he may not even be able to get that.

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

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4. With online trading you are in charge you are in control of your investments. No sales pitches and no hassle. You decide where to invest your money.

BIBLIOGRAPH
INTERNET SITES
http:// www.nseindia.com http://www.bseindia.com

http:// www.on-linetrading.com

http://www.sebi.gov.in http://www.lse.co.in http://www.bonanzaonline.com http://www.moneycontrol.com/stocksmarketsindia/ http://www.amfiindia.com/ http://www.bseindia.com/ http://www.valueresearchonline.com http://www.reliancemutual.com http://jobfunctions.bnet.com/abstract.aspx?docid=114221 http://www.ici.org/pdf/per09-03.pdf

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