You are on page 1of 96



A training report submitted in the partial fulfilment of the
requirement for the degree of Masters of Business Administration

Pooja Aggarwal
MBA 2.3
Roll No. 12

Department of Business Adiministration
Chaudhary Devi Lal University, Sirsa



I hereby declare that this work entitled “Depository System and Online Trading” is my work
carried out under the guidance of faculty guide Mr. Rajan Goyal. This report neither full nor
in part has been submitted for award of any other degree of either this college or any other


Summer training is an integral part of management course. It is meant to make the student
familiar with the actual functioning of the real atmosphere of an organisation. Project is a
bridge between theoretical and practical knowledge.
The challenges for the topic “Depository System and Online Trading” have increased as
never before. It is imperative for an organisation to offer quality goods and services at a
competitive price at the time and place as per the customer‟s requirements. The project report
has been done up the best of researcher‟s abilities but there can be some error. I welcome the
suggestions and criticism from the reader for the improvements in the project. I found my
project very interesting and challenging.



All oneself whether it is big or small can undertake no study. Behind this project too is
guidance of those individual people to whom I will be always grateful. I express my deep
sense of gratitude to India info line group for giving me the opportunity of doing this project
in their well renowned organization which otherwise would not have been easy. I am deeply
indebted to Mr Rajan Goyal (branch manager) in India info line share market who selected
me as a trainee to work with him and guided me throughout the project.
I would also thanks to all staff members of India info line for guidance and co-operation. I
would also like to thank Mr. Rakesh Singla (Senior Relationship Manager) for him
appreciable support and valuable time and guidance with providence of resources in terms of
knowledge, theoretical gains and practical experience. Without their contributions, this
project would have been rather incomplete.
( Pooja Aggarwal)


 ANNEXURE 54-55


Introduction of the company
The IIFL (India Info line) group, comprising the holding company, India info line LTD
(NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of India‟s premier providers of
financial services.
IIFL offers advice and execution platform for the entire range of financial services covering
products ranging from Equities and derivatives, commodities, wealth management, Asset
management, Insurance, Fixed deposits, Loans, Investment Banking, Gold bonds and other
small saving instrument.
IIFL have a presence in:
Equities our core offering, gives us a leading market share in both retail and institutional
segments. It is a million retail customers rely on our research, as do leading Falls and MFs
that invest billions.
Private Wealth Management services cater to over 2500 families who have trusted us with
close to 25,000 crores of assets for advice. Investment Banking services are for corporate
looking to raise capital. IIFL forte is Equity Capital Markets, where we have executed several
marquee transactions.
Credit & Finance focuses on secured mortgages and consumer loans. Our high quality loan
book of over Rs. 6,200 crores is backed by strong capital adequacy of approximately 20%.
IIFL Mutual Fund made an impressive beginning in FY12, with lowest charge Nifty ETF.
Other products include Fixed Maturity plans.
Life Insurance, Pension and other financial Products, on open architecture complete our
product suite to help customers build a balanced portfolio. IIFL has received membership of
the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns
and manages the website,, which is one of India‟s leading online
destinations for personal finance, stock market, economy and business. IIFL has been
awarded the „Best Broker, India‟ by Finance Asia and the „Most improved brokerage, India‟
in the Asia Money polls. India Info line was also adjudged as „Fastest Growing Equity
Broking House- Large firms‟ by Dun & Bradstreet. A forerunner in the field of equity
research, IIFL‟s research is acknowledged by none other Forbes as „Best of the Web‟ and….a
must read for investor in Asia‟. IIFL research is available not just over the internet but also on
international wire services like Bloomberg, Thomson First call and internet securities where


it is amongst one of the most read India brokers.
A network of over 2,500 business locations spread over more than 500 cities and towns
across India facilities the smooth acquisition and services of a large customer base. All IIFL
offices are connected with the corporate office in Mumbai with cutting edge networking
technology. The group caters to a customer base of about a million customers, over a variety
of mediums viz. online, over the phone and at IIFL branches.

Board of directors:-
Mr. Nirmal Jain
India Info line Ltd.
Mr. Nirmal Jain is the founder and chairman of India info line Ltd. He is a PGDM (Post
Graduate Diploma in Management) from IIM (Indian Institute of Management) Ahmadabad,
a Chartered accountant and a rank- holder Cost Accountant. His profession track record is
equally outstanding. He started his career in 1989 with Hindustan Lever Limited, the Indian
arm of Unilever. During his stint with Hindustan Lever, he handled a variety of
responsibilities, including export and trading in agro- commodities. He contributed
immensely towards the repaid and profitable growth of Hindustan Lever‟s commodity export
business, which was then the nation‟s as well as Company‟s top priority.
He founded Probity Research and Services Pvt. Ltd. (later re- christened India Info line) in
1995; perhaps the first independent equity research Company in India. His work set standards
for equity research in India. Mr. Jain was one of the first entrepreneurs in India to seize the
internet opportunity, with the launch of in 1999. Under his
leadership, India Info line not only steered through the dotcom bust and one of the worst
stock market down trends but also grew from strength to strength.


Mr. R. Venkataraman
Managing Director,
India Info line Ltd.
Mr. R Venkataraman, Co- Promoter and Managing Director of India Info line Ltd, is a B.
Tech (electronics and electrical communications engineering, IIT Kharagpur) and an MBA
(IIM Bangalore). He joined the India Info line Board in July 1999. He previously held senior
managerial positions in ICICI Ltd., including ICICI Securities Ltd., their investment banking
joint venture with J P Morgan of US, BZW and Taib Capital Corporation Ltd. He was also
the Assistant Vice President with GE Capital Services India Ltd. In their private equity
division, possessing a varied experience of more than 19 years in the financial services

Mr. Nilesh
Independent Director,
India Info line Ltd.
Mr. Nilesh Vkamsey- Board Member since February 2005- is a practing Charted Accountant
for 25 years and Senior Partner at M/s Khimji Kunverji & Co., Chartered Accountants, a
member firm of HLB International, a world- wide organisation of professional accounting
firms and business advisers, ranked amongst the top accounting groups in the world. Mr.
Vikamsey headed the audit department till 1990 and thereafter also handled financial
services, consultancy, investigations, mergers and acquisition, valuation and due diligence,
among others. He is elected member of the Central Council of Institute of Charted
Accountant of India (ICAI), the apex decision making body of the second largest accounting
body in the world, 2010-13.
He is on the ICAI study group member for the introduction of Accounting Standard- 30 on
financial instruments- recognition and management. Convener of the Study group Formed by
ASB of ICAI to formulate comments on various Exposure Drafts, Discussion papers and


other matters pertaining to IFRS originating from IASB, Reprehensive of the Institute of
Charted Accountants of India on the Committee for Improvement in Transparency,
Accountability and Governance (ITAG) of South Asian Federation of Accountants (SAFA),
Member of Executive Committee & IFRS Implementation Committee of WIRC of Institute
of Charted Accountant of India (ICAI), Accounting and Auditing Committee of Bombay
Chartered Accountant Society (BCAS) and also its Core Group, member of review, Reform
& Rationalisation Committee, IPR Committee of Bombay Chamber of Commerce and
Industry (BCCI), Member of Legal Affairs Committee of Bombay Chamber of Commerce
and industry (BCCI), Corporate Members Committee of The Chamber of Tax Consultants
(CTC), Regular Contributor to WIRC Annual References on “Bank Branch Audit”, Study/
Sub Group formed by ICAI for Considering Developments on Fair Value Accounting (As 30)
post Sub Prime crisis, Sub Group formed by ICAI for approaching the Government and
Regulatory Authorities for Convergence with IFRS.
He is also a Vice Chairman of Financial Reporting Review Board Accounting Standard
Board and Member of Accounting Standard Board and various others Standing and Non
Standing Committees‟. Mr. Vikamsey is also a Director of Miloni Consultants Private Ltd,
HLB Offices and Services Private Ltd., Trunil Properties Private Ltd., Bark at Properties
Private Ltd. and India Info line Investment Services Ltd.

Mr. Kranti Sinha
Independent Director,
India Info line Ltd.
Mr. Kranti Sinha- Board member since January 2005- completed his masters from the Agra
University and started his career as a class 1 Officer with Life Insurance Corporation of India.
He served as the Director and Chief Executive of LIC Housing Finance Ltd. from August
1998 to December 2002 and concurrently as the Managing Director of LICHFL Care Homes
(a wholly- owned subsidiary of LIC Housing Finance Ltd.). He retired from the permanent
cadre of the Executive Director of LIC; served as Deputy President of the Governing Council
of Insurance Institute of India and Insurance Academy, Pune apart from various other such


bodies. Mr. Sinha is also on the Board of Directors of Hindustan Motors Ltd. and Cinemax
(India) Ltd.

MR. A.K. Purwar
Independent Director,
India info line Ltd.
Mr. Purwar is currently the chairman of India Venture Advisors Pvt. Ltd., investment
manager to India Venture Trust – Fund1, the healthcare and life sciences focussed private
equity fund sponsored by the Primal Group. He has also taken over as Chairman of IL & FS
Renewable Energy Limited in March 2008 and India Info line Investment Services Ltd. in
November 2009. He is working as Independent Director in leading companies in Telecom,
Steel, Textiles, Power, and Auto components, Renewable Energy, Engineering Consultancy,
Financial Services and Healthcare Services. He is an Advisor to Mizuho Securities in Japan
and is also a member of Advisory Board for Institute of Indian Economic Studies (IIES),
Waseda University, and Tokyo, Japan.

Sunil Kaul
Independent Director,
India Info line Ltd.
Mr. Kaul earned his post graduate degree in management from the Indian Institute of
Management, Bangalore and a bachelor‟s degree in technology from the Indian Institute of
Technology, Bombay. Sunil Kaul is a Managing Director for Carlyle‟s Asia Buyout fund
forced on investments in the financial services sector across Asia. He is based in Singapore.
Since joining Carlyle, Mr. Kaul has worked on several notable portfolio investments of
Carlyle including HDFC Ltd, India‟s leading financial services group, TC Bank, a leading
mid- sizes bank in Taiwan and Caribbean Investment Holdings, one of the largest provider of
offshore company incorporation and trust services in Asia and India Info line Ltd. Mr. Kaul
serves as a director on the board of TC Bank and a member of its Risk and Executive
Committees. He is also a member of the Asia Pacific Infrastructure Partnership. Prior to


joining Carlyle, Mr. Kaul served as the president of Citibank Japan, covering the banks
corporate and retail banking operations. He concurrently served as the chairman of city‟s
credit card and consumer finance companies in Japan. He was also a member of city‟s Global
Management committee and Global Consumer Planning Group. Mr. Kaul has over 20 years
experience in corporate and consumer banking of which more than 10 have been in Asia. He
has lived and worked in India, the United States, Japan, Netherlands and Singapore. In his
earlier roles, Mr. Kaul served as the head of Retail Banking for city‟s Asia Pacific. He has
also held senior positions in Business Development for City in Asia Pacific. He has also held
senior position in Business Global Transaction Services based in New York, Transaction
Services Head for City Japan and Global Cash Business Management Head for ABN Amro,
based out of Holland.


History & Milestones:-
Commenced operations as an Equity Research firm
Launched research products of leading Indian companies, key sectors and the economy Client
included FIIs, banks and companies.
Launched online trading through started distribution of life insurance and
mutual fund.
Launched proprietary trading platform Trader Terminal for retail.
Acquired commodities broking license Launched Portfolio Management Service.
Maiden IPO and listed on NSE, BSE.
Acquired membership of DGCX Commenced the lending business.


The Indian capital market witnessed an explosive growth between mid eighties and mid
nineties. The total number of companies listed in the stock exchanges had grown by 72.3%
from 2729 to 4702 in 1995. The market capitalizations of the companies listed with stock
exchanges had gone up from Rs.21, 000 cr. In 1985 to more than Rs 4, 50, 000 cr. In, 1995.
The secondary market trading activity also gathered momentum. There has been tremendous
growth in secondary market trading at BSE and NSE. Other regional exchanges like Calcutta,
New Delhi have also become active players in the market. This sudden growth had exposed
the limitations of the system. The system used was not able to withstand the strain caused by
the tremendous growth in the securities market .The entire securities market started
experiencing a gridlock, posing obstacles in its growth. Moreover, this sudden growth has
also magnified the risks that have always been plaguing the Indian system, viz., credit risk
and systematic risk. International institutional investors wanting to invest in India had
become apprehensive about the reliability of the trade settlement mechanism used in the
country, which did not match international standards. Besides affecting the inflow of foreign
capital, the lack of efficient settlement systems had affected all those operating in the stock
market, be it institutional investors, individual investors or brokers. They suffered due to lost
trading days, lost scrips improperly paid dividends, mistaken registration, unnecessary
financing cost, inappropriate risk failure of counter party and fraud.

“Change is the law of nature”. There were times when man was a Wanderer or a normal. He
himself had to go place to place in search of food, water and now everything is available at
your doorstep just at the click of the mouse. The growth of information technology has
affected almost all sectors of life. Internet has enabled us to get every sort of information at
our doorstep. When internet has affected all sectors then could “stock markets” the most
important player of the economy, has remained far behind? Like all other sectors internet has
set its feet in the stock market also. The stock market system provides single, nation wise
securities. It enables LAN investors in one part of the country to trade at the best quotes with
an investor located in any other part of the country through the members of the stock


exchange and subsequently clears and settle the trade in an efficient and cost effective
manner. The primary objective of the stock market is to provide clear opportunity to the
investors throughout the country to trade any security irrespective of the size of the order or
the broker through whom the order is routed. This provides the facility to execute the buy
order at the lowest price in the stock market located anywhere in the country without any
extra cost to the investors.
There will be no trading floor in the exchange. Instead, each trading member will
have a computer at his own office anywhere in India which will be connected to the central
computer system at the NSE through leased line VASTs(very small aperture terminals), for
an interim transition period of 6 months & subsequently by satellite link. VASTs are
relatively smaller dishes similar to dish antenna for cable TV & have the benefit of not being
very expensive. A satellite network makes it possible to connect almost all the parts of the
nation quickly as it easy to install, as against the ground lines such as dial up modems leased
lines, which are prone to disruptions, satellite links, on the other hands ensure high speed,
availability and quality of the connection. This mode of trading is known as “online trading”.
To sort out the above mentioned problems and to restore the investor‟s confidence
in the stock market the depository system was set up. It was against this background that the
Government of India enacted the Depositories Act 1996, which an era of scrip less trading
and settlement, efficient market infrastructure, investor protection, reduced risks and
transparency of transaction in the securities market. The concept of Depository is known to
the world since 1949 when the first depository was set up in Germany. There were 112
depositories in operation by the year 2001. Every depository operates under a country‟s
specific law and regulation in order to ensure safety, liquidity, rights, and liabilities to the
security holders.


A depository is a provider or an organization for holding and transacting securities in
electronic form. It is a central location for keeping the securities on deposit. It is the facility
for holding securities, either in certified or uncertified form to enable book entry transfer of
securities. So, depository is a place where securities are stored & recorded in the books on the
behalf of the investors.
Now, the volume of securities and the size of the business handled have increased. The
present day depositories are fully automated to serve the customers faster and accurate.
“A depository is an institution which transfers the ownership of securities in electronic mode
on behalf of its members.”

A depository is very much like a bank in many of its operations. A depository can be
compared to a bank. To avail of the services of a depository, an investor has to open an
account with the depository through a depository participant, just as he/she opens an account
with the bank. Holding shares in the account is a kin ton holding money in the bank.
We can draw an analogy between the two in order to get a better understanding of the
depository system.
Holds funds in an account Holds securities in an account
Facilitates safe keeping of money Facilitates safe keeping of securities
Transfer of funds without physical handling
of cash
Transfer of stocks without physical handling
of shares
Facilities transfer of funds between bank
Facilities transfer of securities between d-mat


In a bank the medium of exchange is money, whereas a depository deals in securities. In a
bank, money is given for safe-keeping. In a depository, securities are kept safely. Banks hold
and transfer funds; depositories perform the same function with securities. Banks can transfer
funds from one account to another without handling cash; a depository can do the same with
physical securities. Just as in a bank an account is opened to avail of the banking services, an
account has to be opened with a DP for holding scrips in the depository services.
Constituents of depository system
There are essentially four players in the depository system:
1. The depository participant:
A Depository Participant is an agent of the depository and provides depository services to
investors. To avail the services of the depository, the investors have to open an account with a
DP. The depository will interface with the users through a set of depository participants who
directly deal with the depository for their clients. So DP is a link between investor and
depository. According to SEBI guideline, financial institutions, banks, stock brokers etc. can
become depository participants with a depository. An investor cannot directly open a d-mat
account with a depository. An investor has to open his d-mat account through a DP only. The
DP in turn opens the account with the depository. The DP in turn takes up the responsibility
of maintaining the account and updating them as per the instructions given by the investor
from time to time as required by the investor. Thus, the DP is basically the interface between
the investor and the depository.
1. The beneficially owner
Beneficial owner means a person whose name is recorded as such with a depository .He is a
person in whose name a d-mat account is opened for the purpose of holding securities in the
electronic form. A beneficial owner is the real owner of the securities.
2. The issuer
Issuer means any person making an issue of securities .The issuer maintains a register for
recording the names of the registered owners of securities.


At present, India has only two depository-National Securities Depository Ltd (NSDL) and
Central Depository Services Ltd (CDLS).NSDL is the first depository in the country, which
is promoted by three major financial institutions –Unit Trust of India, industrial development
Bank of India and National Stock Exchange of India limited. The second depository of the
country (CSDL) is set up in 1999 by the Bombay Stock Exchange of India. However; most of
the services offered by both these depositaries are similar.
They have been set up to provide instantaneous electronic transfer of securities. All actively
traded scrips are held, traded and settled in d-mat form.
1. In order to promote dematerialization of securities, NSE join hands with leading financial
institutions to establish the National Securities Depository Ltd. (NSDL), the first depository
in the country, with the objective of enhancing the efficiency in settlement system as also to
reduce the menace of fake/forged and stolen securities. This has ushered in an era of
dematerialized trading and settlement.
2. CDSL was set up in February, 1999 to provide depository services .All leading stock
exchanges like the National Stock Exchange, Calcutta Stock Exchange, Delhi Stock
Exchange, the stock Exchange Ahmadabad, etc have established connectivity with CDSL.
Traditionally, settlement system on Indian stock exchanges gave rise to settlement risk due to
the time that elapsed before trades were settled by physical movement of certificates. There
were two aspects: first relating to settlement of trade in stock exchanges by delivery of shares
by the seller and payment by the buyer. The stock exchange aggregated trades over a period
of time and carried out net settlement through the physical delivery of securities. The process
of physically moving the securities from the seller to his broker to Clearing Corporation to
the buyer took time with the risk of delay somewhere along the chain.
The second aspect related to transfer of shares in favour of the purchaser by the issuer.
This system of transfer of ownership was grossly inefficient as every transfer involved the
physical movement of ownership being evidenced by an endorsement on the security
certificate. In many cases the process of transfer took much longer than the two months as


stipulated in the companies act, and a significant proportion of transactions wound up as bad
delivery due to faulty compliance of paper work. Theft, mutilation of certificates and other
irregularities were rampant, and in addition the issuer had the right to refuse the transfer of
security. Thus the buyer did not get good title of the securities after parting with good money.
All this added to the costs and delays in settlement, restricted liquidity and
made investor grievance redressed time-consuming and at times in actable. To obviate these
problems, the depositories act, 1996 was passed to provide for the establishment of
depositories in securities with the objective of ensuring free transferability of securities with speed,
accuracy and security by
(a) Making securities of all companies whether listed or unlisted, freely transferable
subject to certain exceptions;
(b) Dematerializing the securities in the depository mode; and
(c) Providing for maintenance of ownership records in a book entry form.
Features of the act:-
1. Depository institutions: The act provides for creation of one or more depository
institution registered under the companies act and owned by the market participants.
2. Depository participants: According to the act, the depository will interface with
the users through a set of depository participants who directly deal with depository for
their clients. DP is a link between investor and depository. So, DP is the agent of
depository. Any investor who would like to avail the services of a depository has to
enter into an agreement with any DP of his choice. So, depository will be responsible
for the acts of omission and commission on the part of depository participants.
3. Investor’s choice: An investor is given the option between holding physical
securities at present and having a depository based ownership record. The investor
will have also the freedom to switch from depository mode to non-depository mode.
4. Free transferability: The act has made free transferability of shares. Once the
agreed consideration is paid by the buyer, he/she is automatically entitled to all the
rights associated with the security. The securities held by an investor in the depository
are freely transferable from one beneficial owner to another.


5. Rights of transferee: The act provides that the transferee of a security will be
entitled to all the rights including voting rights associated with the security. If any
transfer is made in violation of any provisions of SEBI A ct, then the issuer company
or SEBI can make an application to the company law board who can suspend the
voting rights in respect of securities so transferred.

1. Dematerialization of securities.
2. D-mat account opening & maintenance.
3. Online trading.
4. Electronic settlement of trade.
5. Re - materialization of securities.
6. Freezing of d-mat accounts.
7. Custody of securities.
8. Nomination facility.

Dematerialization is the process of converting physical certificates into electronic form and is
credited to d-mat account of an investor opened with a depository.
Is dematerialization of securities compulsory?
According to the depositories Act, 1996, an investor has the option to hold securities either in
physical or electronic form.
However, SEBI has notified that settlement of trades in listed securities should take place
only in the d-mat mode. Although, trades up to 500 shares can be settled in physical form,
physical settlement is virtually not taking place for the apprehension of bad delivery on
account of mismatch of signatures, for ery of signatures, fake certificates, etc.


Securitieseligible for dematerialization:
As per SEBI regulations, 1996, every depository shall, in its bye-laws, state the specific
securities which are eligible for being held in dematerialization form in the depository. The
following securities shall be eligible for being held in dematerialised form in a depository.
(a) Shares, scrips, stock, bonds, debentures or other marketable securities of a like
nature in or of any incorporated company or other body corporate.
(b) Units of mutual funds, venture capital funds, government securities etc shall
also be similarly eligible for being held in dematerialised form in a depository.

1. Client/investor submits the DRF (DMAT Request Form) and physical certificates to
DP. DP checks whether the securities are available for dmat. Client defaces the
certificate by stamping Surrendered for Dematerialisation.
2. DP enters the d-mat request in his system to be sent to NSDL. DP dispatches the
physical certificates along with the DRF to the R&T agent.
3. NSDL records the details of the electronic request in the system and forwards the
request to the R&T agent.
4. R&T agent, on receiving the physical documents and the electronic request, verifies
and checks them. Once the R&T agent is satisfied, dematerialisation of the
concerned securities is electronically confirmed to NSDL.
5. NSDL credits the dematerialised securities to the beneficiary account of the investor
and intimates the DP electronically. The DP issues a statement of
interaction to the client.

DMAT refers to a dematerialization account. Just as we have to open an account with a bank
if we want to save your money, make cheque payments etc, we need to open a d-mat account


if we want to buy or sell stocks. So it is just like a bank account where actual money is
replaced by shares. We have to approach the DPs, to open our d-mat account. D-mat account
allows you to buy, sell and transact without the endless paperwork and delays. It is also safe,
secure and convenient.
Let‟s say our portfolio has 100 of Satyam, 20 of ICICI BANK, 50 of Tech
Mahindra and 100 of TCS shares. All these will show in our d-mat account. So we don‟t have
to possess any physical certificates showing that we own these shares. They are all held
electronically in our account. Just like a bank passbook or statement, the DP will provide you
with periodic statement of holdings and transactions. Individuals, companies, trusts,
partnership firms, NRIs, Banks and institution are allowed to open a depository participant.
The investor would need to execute a standard form giving all his details, bank details,
instruction details, nomination details and off-course photograph and signature. Along with
this form, the investor would also have sign an agreement with the depository participants
which usually forms a standard part of the account opening process. The details on the form
have to be matched with a photocopy of the investor‟s passport, driving license etc. To certify
the mentioned details.
As in any service industry the first point of contact is the most important point in customer
relationship management. For investors the process of account opening is the first interaction
with a DP. This is the stage at which the client interacts with the DP and one that will make a
permanent impression about the servicing capabilities of the depository participant. Also, this
is the stage at which the client may have several question that need to be given personal
attention and should be helped in completing the account opening formalities without
The client must be made aware of the structure of fees for the services and other
conditions must be explained in detail. Special attention should be given to the points
listed below:
 Explain the information to be given in the application form. Clarification should be
given on the items like standing instructions, instructions, introduction, nomination,
PAN number, importance of correct and complete bank account and address details
and the care to be taken in case of joint accounts.


 Assure the client about the time by which the account will be opened and the account
number communicated to him.
 Handing over “delivery instructions book” with pre-printed serial number of the slips
stamped with client-ID on the slips. The client should be made aware of the need and
reasons to take care in preserving and using the book.
 Explain various other forms used in the depository system.
 Ensure that a copy of the agreement including schedule of charges is given to the
What should an investor do to open a d-mat account?
The process of opening a d-mat account through a DP of CSDL is similar to the opening
of a bank account.
I. Investor has to first choose a DP based on his convenience and the DP‟s charges.
II. Besides submitting an application in the prescribed form, the intending d-mat account
holders, including joint holders, if any, should personally visit and submit the following
to the DP,
III. A photocopy of the PAN card along with the original for verification by the DP.
IV. Address proof such as passport, voter ID card, ration card driving license, bank passbook,
verified copies of telephone bills, electricity bills, etc.
V. Before opening the d-mat account, the investor will have to execute an agreement on a
stamp paper to be provided by the DP, which defines the rights and obligations of both,
the investor and the manager.
VI. On opening a d-mat account, a unique BO ID (beneficial owner identification) number is
allotted, which should be quoted in all future transactions.

At India Info line, it is compulsory for every customer who opens a trading account
to also open a d-mat account.
Get life time free d-mat & trading a/c with India Info line, just pay Rs 555 one time and get
India Info line‟s premium brokerage and depository a/c for life time. No fixed charges for the
rest of your life. No renewals, no monthly charges, no recurring surprises. YES, you get India
Info line‟s premium internet trading interface, and streaming quotes, yes, you get India Info


line‟s personalized customer services. You pay brokerage whenever you choose to trade.
YES there are no other conditions.
There are few steps to open an a/c with 5paisa.
i. First log on to their site and fill the registration form. Once you fill the form they will
give you 2 options. Either you can receive the form by mail or one of their agent visit
you personally. Personal visit is not available in all cities.
ii. After registration, you will be required to deposit a certain amount of initial margin
deposit with them. The deposit can be of any amount, but it should not be less then
rupees Five Thousand.
iii. When your a/c is activated, you will receive a welcome kit, which contains details
about your a/c, your username and password, and the user‟s manual. The kit will also
include a CD ROM which allows you to install trading software.
iv. It will take approximately 15 days to complete the formalities if all the correct
documents are sent and the forms are correctly filled.
v. Documents required are 2 latest passport size photos, proof of identity and address say
electricity/telephone bill, passport photocopies and PAN number.
So, for dematerialization of securities, an investor will have to first open an account with a
depository participant and then submit request for dematerialization of the securities in a
specified form along with relevant certificates. The d-mat request along with the certificates
is forwarded by DP to the company or its registrar who after due verification will confirm the
dematerialization and the investors account with his depository participant will get credited to
the extent of shares applied for d-mat.


1. Procedure for purchasing dematerlized in securities
a. Investor instructs DP to receive credit into his account in the prescribed form.
b. Investor purchases securities in any of the stock exchanges linked depository
through a broker.
c. Broker receives from investor and arranges payment to clearing corporations.
d. Procedure of selling dematerialized securities.

2. Procedure for selling dematerialized in securities
Investors sell securities in any of the stock exchange linked to depository through a
a. The broker receives payment from the stock exchange.
b. Broker the pay- in day, broker of the investor transfer the securities to clearing
Benefits of opening a d-mat account:-
The direct and indirect benefits of the depository system are described in detail below. In the
depository system, the ownership and transfer of securities takes place by means of electronic
book entries. At the outset, this system rids the capital market of the dangers related to
handling of paper.
Elimination of bad deliveries – In the depository environment, once the holdings of an
investor are dematerialised, the question of bad delivery does not arise; their transfer cannot
be rejected due to defect in the quality of the security. All possible reasons for objecting
transfer of title due to deficiencies associated with transfer deed and share certificates are
completely eliminated since both are certificates are eliminated in depository system.
Elimination of all risks associated with physical certificates – Dealing in
physical securities has associated security risks of theft of stocks, mutilation or loss of
certificates during movements to and from the registrars. These expose the investor to the
cost of obtaining duplicate certificates, advertisements, etc. Such problems do not arise in the
depository environment.


No stamp duty – there is no stamp duty for transfer of equity instruments and units of
mutual funds in the depository system. In the case of physical shares, stamp duty of 0.5% is
payable on transfer of shares.
Immediate transfer and registration of securities – In the depository
environment, once the securities are credited to the investors account on pay out, he/she
becomes the legal owner of the securities. There is no further need to send it to the
company‟s registrar for transfer of ownership or registration which is necessary in the case of
physical securities. This process normally takes longer than the statutory prescribed period of
two months thus exposing the investor to opportunity cost of delay in transfer and to risk of
loss in transit. To overcome this, the normally accepted practice is to hold the securities in
street names, not to register the change of ownership. However, if the investors miss a book
closure, the securities are not good for delivery and the investor would also stand to loose his
corporate entitlements.
Faster settlement cycle – with the introduction of electronic form of settlement, Indian
Capital markets have moved from 15 day long settlement cycle to T+2 settlement cycle
where takes place on 2
day from the day of trading. This enables faster turnover of stock
and enhance liquidity with the investor.
Buyer is secured – In the physical environment, seller was secured since the sale
proceeds were always fully realizable but the buyer was not, since it was not certain whether
shares purchased will get transferred or not. The market principle that buyer is king did not
apply to the market. This situation has now been corrected.
Faster disbursement of non-cash corporate benefits – NSDL provides for direct
of non-cash corporate entitlements like rights, bonus, etc. To an investor‟s account, thereby
ensuring faster disbursement and avoiding the risk of certificates getting lost in transit.
Reduction in rate of interest on loans – Some banks provide this benefit against
pledge of dematerialised securities. Dematerialised securities eliminate hassles/risks like
getting securities registered in their name at the time of book closure if the pledged defaults
in repayment. Also eliminated is the risk of stocks coming under objections when they are
sent to the company‟s registrar for registration, if the pledge has to be invoked.


Increase in maximum limit of advances – This has increased from Rs 10 lakh to Rs
20 lakh per borrower. There is also a reduction in minimum margin from 50% to 25% by
banks for advances against dematerialised securities as per the monetary and credit policy of
reserve bank of India for the first half of 1998-99.
Reduction in brokerage – Since introduction of electronic settlement of securities there
has been a significant fall in the brokerage charged for brokers for effecting and settling
trades of investors at the stock exchanges. This benefit is given to investors as dealing in
dematerialised securities reduces their back office cost of handling paper. It also eliminates
the risk of being the introducing broker.
Reduction in handling of huge volumes of paper – In the physical environment,
every entity involved in purchase or sale of securities was to handle papers and pass on
papers to the next entity. Number of papers to handle increased with the volume of
transactions. However, in the depository environment, except the delivery instruction to be
given by the client/broker, there is no other paper movement. NSDL has permitted use of
floppies to give debit instructions for large volumes of transactions.
Periodic status reports – DPs need to provide periodic reports to investors on their
holdings and transaction. This leads to better management control on the part of the servicing
agency and better information for the investors.
Dematerialised securities can be delivered in the physical segment –
Securities forming a part of the SEBI specified compulsory list can be delivered in physical
form in the stock exchanges connected to NSDL & CDSL. This requirement is applicable to
physical deliveries wherein the number of securities is less than 500.
Elimination of problems related to change of address of investors,
transmission, etc. – In case of change of address or transmission of d-mat shares,
investors are saved from undergoing the entire change procedure with each company or
registrar. Investors have to only inform their DP about the change along with all relevant
documents. The required changes are effected in the database of all the companies where the
investor is a registered holder of securities. The investor will receive all cash corporate


benefits like dividends, interest warrants, redemption money, etc. At the new address with
immediate effect.
Elimination of problems related to selling securities on behalf of a minor –
NSDL system provides facility for opening d-mat accounts in the name of minor and holding
their own name. Since, under the contract act 1872, the minor is not eligible to enter into
contracts at their own, the account in the name of minor is required to be operated by their
guardian. The guardian may be the natural guardian, guardian appointed by will or the
guardian appointed by an order of the court. The minor‟s guardian will be eligible to open,
operate and close the account on behalf of the minor. The guardian would be signing the
instruction slips to be given to the depository participant, on behalf of the minor.
Convenient consolidation of accounts – If multiple accounts were opened by
investors, all accounts can be consolidated into one account by giving instructions to DP. In
case of physical certificates, consolidation of folios required correspondence with all the
companies individually.
So, with dematerialized securities, the entire process of transferring shares, bonds and
other financial assets has become smooth and swift. D-MAT accounts offer numerous
advantages and hence it makes sense for the retail investors to open D-MAT accounts as
early as possible.
Is it compulsory for every investor to open a d-mat account to trade in
capital market?
As per the available statics at BSE and NSE, 99.9% settlement takes place in d-mat mode
only. Therefore, in view of the convenience in settlement through d-mat mode, it is advisable
to have a beneficiary owner to trade at the exchanges.
Why should an investor give his bank account details at the time of a/c
It is for the protection of investor‟s interest such warrant cannot be encased by anyone else.
The bank account number will be mentioned on the interest or dividend warrant, so that


How does a BO get information that the account has been update after
each transaction?
Beneficial owner is a person in whose name a demit account is opened with CDSL for the
purpose of holding securities in the electronic form and whose name is recorded with CDSL.
The DP sends a statement of transactions and balances to its BO‟s at least once month, even
if a single transaction has taken place during the month. The statement can be sent more
frequently, if so desired by BO against payment of additional charges.

Introduction of online trading in India
Online trading started in India in February 2000 when a couple of brokers started offering an
online trading platform for their customers.
Online trading by NSE & BSE:
The central computer located at the Exchange is connected to the workstations of the Brokers
through satellite using Very Small Aperture Terminals. Orders placed at based on price and
time priority. Both the exchanges have switched over from the open outcry trading system to
a fully automated computerized mode of trading known as BOLT( BSE On Line Trading)
and NEAT (National exchange Automated Trading) System. It facilitates more efficient
processing, automatic order matching, and faster execution of trades and transparency. The
scrips traded on the BSE have been classified into „A‟, „B1‟, „C‟, „F‟ and „z‟ groups.
The „A‟ group shares represent those, which are in the carry forward system. The „F‟ group
represent the debt market segment. The „Z‟ group scrip‟s are the blacklisted companies. The
„C‟ group covers the odd lot securities in „A‟, „B1‟ & „B2‟ groups.
The internet can provide a new sense of control over your financial future. The amount of
investment information a of investor‟s interest valuable online is truly astounding. It‟s one of


the best aspects of being a wired investor. For the first time in history, any individual with an
Internet connection can:
Freedom of information: - The internet
Know the price of any stock at any time
Review the price history of any stock in chart format
Follow market events in- depth
Receive a wealth of free commentary and analysis about stocks
Markets and the global economy
Features of online trading
Control our money:
One of the great appeals of using an online trading account is the fact that the account
belongs to you, and is under your direct control. When you want to buy or sell stock, you no
longer need to call your broker on the phone; hope that he is in the office to place your order;
possibly argue with the broker about the order; and hope that the transaction is executed
Access to the market:
At the most basis level, an online trading account gives you more agility in buying and
selling stocks. This is through sophisticated information streams, dedicated trading platforms
and sophisticated tools for accessing the markets.
Offers greater transparency:
Online trading involves a complete integrated electronic chain starting from order placement,
to clearing and settlement and finally ending with a credit into your depository account. All
these stages are subject to inspection, thus bringing in transparency into the system.
Instant trade order confirmations:


Every trade is confirmed immediately and you will receive an on- screen confirmation
following every trade with full details for your records. This avoids costly errors that would
have been discovered when it is too late.
Integrated Accounts:
Our Bank, Depository and Trading account are integrated for our convenience. Various
broking houses provide access to many of the popular banks.
Benefits of Online Trading:
Less costly
The most significant advantage of the online broking is the cost reduction in the brokerage.
Due to the power of the internet one has the most advantage of becoming the clients of really
large brokerages with the benefits of enjoying the low charges before enjoyed only by the big
players. As the DP account has got linked to the trading account most players do not charge a
minimum transaction cost thus truly allowing one to buy a single share depending upon
whatever be your buying power.
Peace of Mind:
One can never have complete peace of mind but online investing does away with the hassles
of filling up instruction slips, visits to the broker for handing over these slips and consequent
Keeping Records:
The site one trades on keeps a record of all transactions down to unexecuted orders and
cancelled orders thus keeping one side by side of all your transaction 24 hours a day. No
paperwork means more time at one‟s disposal for research and analysis.

Ease of trade:
It is the ease of doing the trade through net, with a click of mouse; one can buy or sell any
share that is dematerialised.


Other than the above- mentioned advantages, internet trading provides some additional
advantages to the investors, brokers and also helps the nation to channelize the resources. Net
trading would increase competition in the market hence increase in the bargaining power of
the investors. The entire communication between the investor, broker and exchange would
take place within milliseconds.
1. Server not found:
This may appear on one‟s screens when he is desperately trying to get out of an unprofitable
position. Some of the online sites are providing a telephone number for use in case their sites
are overloaded or their server down.

2. Connectivity of the Broker with NSE:
Recently ICICI direct had a connectivity problem with the NSE for two and half hours during
trading hours. This problem is rare but be alive to its possibility.
3. Non- availability of personalized advice:
If one likes to ask his broker “Aaj kya acha 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.
4. Margin:
If Internet trading alone is not fast and furious enough; many people are trading on margin.
We may have forgotten what we read in the small print of our agreement, but the brokerage
firm has the right to change the maintenance margin requirements without any warning or
notice to us. In fact the firm has the right to liquidate our securities holdings (and it can pick
and choose which ones) without any notice to us if we fail to meet the margin call.
Sometimes, we discover that we are required to make a large deposit that we cannot make.
The next thing one knows the firm is selling off his securities at a point in times that is not the
best for him. These are the perils of trading on margin.


One of the basic services provided by NSDL is to facilitate transfer of securities from one
account to another at the instruction of the account holder. In NSDL depository system both
transferor and transferee have to give instructions to its depository participants for delivering
and receiving of securities.
A market trade is one that is settled through participation of a clearing corporation. In the
depository environment, the securities move through account transfer. Once the trade is
executed by the broker on the stock exchange, the seller gives delivery instructions to his DP
to transfer securities to his broker‟s account. The broker has to then complete the pay- in
before the deadline prescribed by the stock exchange. The broker removes securities from his
account to CC/CH of the stock exchange concerned before the deadline given by the stock
exchange. The CC/CH gives pay- out and securities are transferred to the buying broker‟s
account. The broker then gives delivery instructions to the DP to transfer securities to the
buyer‟s account. The movement of funds take place outside the NSDL system.

Market Settlement- D-mat Share
Seller gives delivery instruction to his DP to move securities from his account to his broker‟s
1.Securities are transferred from broker‟s account to CC on the basis of a delivery out
2.On pay- out, securities are moved from CC to buying broker‟s account.
3.Buying broker gives instructions and securities move to the buyer‟s account.
Transfer of securities towards settlement of transactions done on a stock exchange is called
settlement of market transaction. This type of settlement is done by transferring securities
from a beneficiary account to a clearing member account. Brokers of stock exchanges that
offer settlement is done by transferring securities from a beneficiary account to a clearing
member account. Brokers of stock exchanges that offer settlement through depository are
required to open a „clearing member account.‟ In addition to the brokers, custodian registered


with SEBI and approved by stock exchanges can open a clearing member account. These
accounts are popularly known as „Broker Settlement Account.‟ A client who has sold shares
will deliver securities into the settlement account of the broker through whom securities were

v. Rematerialisation of securities:
Rematerialisation is the exact reverse of dematerialisation. It refers to the process of issuing
physical securities in place of the securities held electronically in book- entry form with a
depository. Under this process, the depository account of a beneficial owner is debited for the
securities sought to be rematerialised and physical certificates for the equivalent number of
securities is issued. A beneficial owner holding securities with a depository has a right to get
his electronic holding converted into physical holding at any time. The beneficial owner
desiring to receive physical securities certificates in place of the electronic holding should
make a request to the Issuer or its r & T Agent through his DP.
Rematerialisation Process
1. The DP should provide rematerialisation request forms to clients.
2. The client should complete RRF in all respects and submit it to the DP.
3. The DP should check RRF for validity, completeness and correctness. In particular, the
following points should be checked.
- There is sufficient free balance available in the client‟s account to honour the
remateralisation request.
- The name of client on RRF is exactly the same as that in the client account.
- Details like security type, face value, Issuer‟s name and lock- in status are filled- in
1. If RRF is not found in order, the DP should return the RRF to the
client for rectification.
2. If RRF is found in order the DP should accept RRF and issue an
acknowledgement to the client.


3. DP intimates the depository of the request through the system.
4. NSDL intimates the registrar.
5. The Registrar prints certificates with new numbers and informs NSDL.
6. NSDL updates the accounts and downloads the details to the
depository participant.
7. The Registrar dispatches the certificates to the investor,.
vi. Freezing of d-mat accounts:
The investor can issue instructions to the depository in which he is maintaining his demat
account to freeze his account till further instructions. No debit will then be allowed to the
account. This can be a safe way further ensuring safety of the client investments especially
when there are no transactions that are likely to occur for a long time.

vii. Custody of securities:
The act of maintaining share portfolio of investors in the electronic form is the custody
service. The investor gets additional services such as regular statement of the account which
shows his various share balances, maintenance of details on his account like address, bank
account number etc.
vii. Nomination facility:
The investor can nominate a person who in the event of his death will be entitled to the
transfer of shares. When as investor opens a D-mat account with the depository, he has to fill
up a D-mat Request Form. The form also asks the investor to fill up the name of the nominee.
Thus after his death, the shares will automatically be transferred in the nominee‟s name
provided he is also maintaining a D-mat account.
Benefits of Depository.
In the depository system, the ownership and transfer of securities takes place by means of
electronic book entries. At the outset, this system rids the capital market of the dangers
related to handling of paper. NSDL provides numerous direct and indirect benefits like:


Benefits to Investors:.
1.Benefits to companies:
1.The companies will be able to know the particulars of beneficial owners and their holdings
2.There will not be any rush for transfer related activities for the companies at time of
declaration of dividends and bonus.
3.Investor complaints will be reduced as majority of the present day complaints relate to
signature difference and time lapse during the transfer and certificates.
4.Financial institutions will not have the problem of processing and storing of huge volume
of scrip‟s. They can direct their for other productive business development oriented purposes.
5.It would be possible to send notices and annual reports without delay because all securities
of the company with the participant are accumulated.
2.Benefits to Capital Market:
1.Capital market will be more transparent as the trading, clearing and settlement mechanism
have highly automated and inter- linked with depository.
2.Market will be highly automated and efficient due to usage of computing and
telecommunication technology.
3.The investor‟s confidence will improve due to above two aspects.
4.Foreign investors will start participating in the market resulting in a more buoyant capital
5.Existence of depository will result in increase in the volume of trade both by no. and
6.It will attract more no. of the Indian middle income group either through direct involvement
or through mutual funds.


A research design is the arrangement of conditions for collection and analysis of data in a
manner that aims to combine relevance to the research purpose with economy in
procedure. In my research- I have used descriptive and empirical research design.
Descriptive research is one that describes things as exists in present and Empirical
research that is based on experimentation or observation, i.e. Evidence. Such research is
often conducted to answer a specific question.
A sampling design is a definite plan for obtaining a sample from a given population. It
refers to the technique or procedure the researcher would adopt in selecting items for the
sample. There are three aspects in sampling design:-
1) SAMPLE SIZE - The sample size is simply number of observations. Large sampling
size gives more reliable results than small samples. The sample consisted of 300
2) SAMPLE AREA -The sample area is Bathinda City.
3) SAMPLLING TECHNIQUES - Convenience Sampling Technique

Data-collection techniques allow us to systematically collect information
about our objects of study (people, objects, phenomena) and about the
settings in which they occur.


 PRIMARY DATA- primary data is a data which did not exist
earlier and is being collected by the researcher first for its specific
objectives. In other words, direct collection of data from the
source of information and technology includes personal interview,
telephonic interviews, observation, and questionnaire.

 SECONDARY DATA-I had collected my secondary data from
websites, journals, news-papers etc.


- Very strong brand image.
- Low charges with respect of its Services.
- Free annual maintenance of D-mat account.
- Facility to trade in office.
- Very good customer care unit.

Weak Advertisement Policies.
Duplicate & fraud case can be possible.
Repetition of d-mat account.
The only proof of ownership for d-mat shares is a receipt only.

- Large untapped market.
- Opportunity to educate investors about their products & inspire them to
invest more & encourage others.
- Good opportunity to cash its brand image and people trust.

- Presence of very strong competitors like, Karvy, Angel Broking Share
khan, Religare etc.
- Aggressive marketing by comparisons


- It provides a complete knowledge of various fundamental concepts of
share market and online trading.
- It will help in analyzing the behaviour of consumers and help in knowing
the parameters of investment on which they would like to invest.
- Through this project I am not only bringing long term clients for my
organisation but also creating a word of mouth publicity of my
organisation by offering the best services to the clients so that more and
more potential customer will come and stick to my organisation.
- Also through this project I suggest the organisation the behavioural
pattern of investor towards different instruments.
- From the study I have learned very much, about the company as well as
the strategy of the customers, which helps me a lot at my working days.


An objective is the brainchild behind any project report. A project report will
always have a certain objective which needs to be accomplished. Following are
the objectives behind the preparation of my project at India Infoline Ltd.
- To study present online share trading.
- To compare India Infoline online share trading account with the big
players in the market i.e. ICICI, KARVY, HDFC, RELIENCE MONEY
as well as with INDIABULLS.
- To find the awareness of d-mat account among employed investors.
- To identify the areas where India Infoline scores above its competitors
and what are its weak links.
- To know about problem faced in trading by the traders.
- To find out the point of view of investors regarding the services provided
by DP.
- To assess the satisfaction level of consumers and traders regarding
services of India info line.
- To understand the company, its achievements and tasks, products and
services and also to collect information about its competitors, its products
and services offers by company.


1. Do you invest in Share market?

Option No. of
Yes 225 75
No 75 25

From this 75% says yes and 25% says no about invest in stock market.

yes no


2. Name of the broking firm with which you are making your investment?
Option No. of respondent %
India infoline 120 40
Karvy 132 44
Other 48 16

In chart, 40% traders invest in India infoline, 44% in Karvy and rest in others.

india infoline karvy others
india infoline


3. Where do you want to invest?

Option No. of respondent %
Fixed deposit with bank 81 27
Mutual funds 36 12
Stocks/ shares 51 17
insurance 90 30
Real estate 42 14

Interpretation:- in this analysis most of people like invest in insurance. 27% people prefer
fixed deposit with bank, 12% prefer with mutual fund, 17% prefer with stock shares, 30%
prefer insurance & 14% prefer real estate



4. Are you fully aware of products and services offered by India Info line?

Option No. of respondent %
Yes 240 80
No 60 20

In fig. 80% traders are agreed that they are fully aware and have blear idea of
the products and services offered by India info line, only 20% are disagreed by
this statement.

yes no


5. Are you satisfied with charges charged by India info line for opening D- Mat account?

Option No. of respondents %
Satisfied 210 70
Neither satisfied not
60 20
Dissatisfied 30 10

In this fig., 70% traders are satisfied with the charged by India info line for opening
D-Mat account with annual maintenance charges, 20% are neither satisfied nor
dissatisfies; and only 10% are dissatisfied.
satisfied neither satisfied not
neither satisfied nor


6. What is your perception regarding India Info line‟s depository system?

Option No. of respondents %
Good 150 50
Average 90 30
Bad 60 20

good average bad


In this fig., 50% traders are having good perception regarding India infoline‟s depository
system, 30% have average and 20% have bad perception. Intact, these dissatisfied people are
not fully aware about the products and services offered by the company.

7. Please specify reasons?
a. Services

Option No. of respondents %
Good 150 50
Average 120 40
Bad 30 10


In fig. only 50% traders say that good services are provided by the company for trading, 40%
says they are satisfied up to some extent and 10% are dissatisfied by the services being
provided to them

good/ average/ bad
Option No. of respondents %
Good 240 80
Average 30 10
Bad 30 10

good average bad


In fig., 80% brokers are satisfied by the brokerage charges, 10% says that their perception
towards brokerage is average and 10% are dissatisfied.

B.Relationship manager’s support
Good/average/ bad
Option No. of respondents %
Good 210 70
Average 60 20
Bad 30 10

good average bad


In fig. 70% get the full support of their relationship manager in opening d-mat
account and online trading, 20% having the average support said that
sometimes get the support of their relationship manager and 10% says they do
not get support at all.

8. In your opinion, what is the biggest problem in trading?

Option No. of respondents %
Lack of knowledge 90 30
Unsatisfied services of
broking firms
30 10
Market uncertainty 150 50
good average bad


Charges by broking firm 30 10

In this fig. 50% says market uncertainty is the biggest problem in trading, 30% finds the
problem in trading due to lack of knowledge and experience. 10% consider services of the
broking firm to be unsatisfactory and remaining 10% are not satisfied with charges of the
broking firm.

9. What is your opinion „about the problem of market uncertainty in trading?

Option No. of respondents %
It‟s big challenge 30 10
It‟s manageable 180 60
It‟s an opportunity 90 30

lack of
services of
broking firms
charges by
broking firm
charges by broking firm
market uncertainty
unsatisfied services of
broking firms
lack of knowledge


In fig.,60% traders perceive market uncertainty as an opportunity, 30% has the ability to
manage this risk and 10% consider it as a big challenge to improve.

10. Are you satisfied in trading with India Info line broking firm?

Option No. of respondents %
Satisfied 240 80
Dissatisfied 30 10
Up to some extent 30 10

it's big challenge it's manageable it's an opportunity
it's an opportunity
it's manageable
it's big challenge


In this fig., 80% traders are satisfied in trading with India info line, 10% are satisfied up to
some extent and 10% are dissatisfied.

11. Are you satisfied with the d-mat account opening at India infoline?
Option No. of respondents %
Satisfied 180 60
Neither satisfied nor
75 25
Dissatisfied 45 15
satisfied dissatisfied up to some extent
up to some extent


In this 60% says satisfied, 25% employees says neither satisfied nor dissatisfied and 15%
says dissatisfied.

12. Are you satisfied with your choice?
Option No. of respondents %
Yes 210 70
No 90 30

satisfied neither satisfied nor
neither satisfied nor


In this 70% says yes and 30% says no with choice.

No doubt that the India info line has a good reputation among customers but it has to take
effective initiatives regarding sales strategy to face hard competition. Following are some
suggestions, which I want that company should take into consideration in order to have better
prospects in marketing field.
yes no


- People at young age should be encouraged to invest in of customer
- Broking charges should revise to make them more competitive.
- More relationship managers should be appointed to increase market share.
- India Info line should conduct some kind of mock Classes for new investors who even
don‟t know about share market.
- India info line should organise training program for their existing clients once or
twice in a year.
- In order to survive in this competitive market, they have to keep the knowledge about
their competitors.
- There should be limited no. of clients under relationship manager so that he can
handle new as well as old customer properly.
- Some promotional activities are required for the awareness stock market.

- Most of people were at their work. So they did not have enough time to give all
- Convenient sampling technique is used to select the data. Due to which
chances of biasness are there.


- Error during calculation and tabulation may arise.
- As per knowledge data was collected and analyzed, error may be there.

So for the data analysis and interpretation, it is concluded that;
- India info line Ltd. is the better services provider than other stock brokers because of
their timely research and personalized advice on what stocks to buy or sell.


- It provides relationship manager for encouragement and to protect the interest of
- It also provides information through the internet and mobile alerts that what IPO‟s are
coming in the market and it also provides its research on future prospects of IPO.
- Most of traders perceive India info line as a good broking firm.
- Most of traders consider market uncertainty as biggest problem in trading.
- In case of services, brokerage and relationship manager‟s support, India info line is
considered good.
- People aware about India info line are satisfied product and services by India info
line. They find it good place to trade by opening d-mat account because they can get
life time free d-mat & trading account with India info line, just pay Rs. 555 one- time
and get India Info line‟s premium brokerage and depository account for life time.



Questionnaire for India Info line traders


1. Do you invest in share market?
a. Yes
b. No

2. Name of the company with which you are making your investment?
a. India info line
b. Curvy
c. Others

3. Where do you want to invest?
a. Fixed deposit with bank
b. Mutual funds
c. Stocks/ shares
d. Insurance
e. Real estate

4. Are you aware of products and services offered by India Info line?
a. yes
b. No

5. Are you satisfied with the charges charged by India info line for opening D- Mat
a. Satisfied
b. Neither satisfied nor dissatisfied
c. Dissatisfied

6. What is your perception regarding India info line‟s depository system?
a. Good
b. Average
c. Bad

7. Please specify reasons?
a. Services good/ average/ bad


b. Brokerage good/ average/ bad
c. Relationship manager‟s support good/ average/ bad

8. In your opinion, what is the biggest problem in trading?
a. Lack of knowledge
b. Unsatisfied services of broking firms.
c. Market uncertainty
d. Changes by broking firm

9. What is your opinion about the problem of market uncertainty in trading?
a. It‟s big challenge
b. It‟s manageable
c. It‟s an opportunity

10. Are you satisfied in trading with India info line broking firm?
a. Satisfied
b. Dissatisfied
c. Up to some extent

11. Are you satisfied with the d-mat account opening at India infoline?
a. Satisfied
b. Neither satisfied nor dissatisfied
c. Dissatisfied

12. Are you satisfied with your choice?
a. Yes
b. No