A STUDY OF INVESTORS

PERCEPTION ABOUT ETRADING

Summer Internship Project Report

The study highlights about the perception of

the
traders
towards
online
trading.
SHAREKHAN LTD. as a company and its online
trading services , with its TRADER TIGER
SOFTWARE and comparison being the main
focal point of this study highlighting the
satisfaction level of trader for online trading.
Parallel study has been conducted to analyze
the traders perception towards SHAREKHAN
LTD. Online services.

A STUDY OF
INVESTORS
PERCEPTION
ABOUT ETRADING

Page | 1

A STUDY OF INVESTORS PERCEPTION ABOUT

E-TRADING
SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TOWARDS PARTIAL
FULFILLMENT
Of
POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

(Approved by AICTE, Govt. of India)

(Equivalent to MBA)
Academic Session
2013 2015

Submitted By:

ANUJ KUMAR GUPTA

(BM-013014)
Under the Guidance of:
External Supervisor-

Internal Supervisor -

Anil Sharma

Dr. Timira Shukla

Assistant manager

Faculty of marketing

Sharekhan ltd.

IMS Ghaziabad

3E/6 ground floor, Jhandewalan Extn. Delhi

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CERTIFICATE FROM COMPANY

Page | 3

PREFACE

As a part of the PGDM Curriculum and in order to gain practical Knowledge in the field of
management, we are required to make a report on A study of investors perception about Etrading The Basic objective behind doing this project report is to get knowledge tools of
different tools of marketing. In this project report we have included various concepts,
perception and satisfaction of traders regarding online trading to SHAREKHAN LTD.
Objectives of my study which I took were, to study investors perception on online
trading like safety. To study a comparative analysis on the services provided by major
online trading service providers in the market. And to identify customer rankings on
user friendliness of online terminal and to help the company in building a strategy for
their online services.

Doing this Project report helped us to enhance our knowledge regarding the work in to the
attitude of traders towards online trading vs. off line trading. We doing undergo many
experiences related with our topic concepts. Through this report I faced many problems like
getting appropriate response from the respondents and getting appointment from the
investors, the study is limited to the curriculum. There are some suggestions which are
inferred from my study which may be of some importance to SHAREKHAN LTD. in future
online trading.

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ACKNOWLEDGEMENT
With immense pleasure, I would like to present this project report for SHAREKHAN Ltd. It
has been an enriching experience for me to undergo my summer training at SHAREKHAN
Ltd, which would not have been possible without the goodwill and support of the people
around. As a student of INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD I
would like to extend my sincere gratitude and thanks to Mr. ANIL SHARMA (ASSISTANT
MANAGER, SHAREKHAN LTD.), GHAZIABAD , DR. URVASHI MAKKAR (DirectorPrincipal, IEM College Of Management), PROF. TIMIRA SHUKLA (FACULTY OF
MARKETING, INSTITUTE OF MANAGEMENT STUDIES)) to shape my understanding
towards the project. It was because of their immense help and support that this project has
been duly completed.
However, I accept the sole responsibility for any possible error and would be extremely
grateful to the readers of this project report if they bring such mistakes to my notice.

------------------------------ANUJ KUMAR GUPTA

Page | 5

CONTENTS
CHAPTER

Particulars

NO.

Page
Nos.

EXECUTIVE SUMMARY

1.

INTRODUCTION TO PROJECT

2.

COMPANY PROFILE

11

3.

RESEARCH PROBLEM & BACKGROUND

24

4.

OBJECTIVE & SCOPE OF STUDY

26

5.

RESEARCH METHODOLOGY

28

6.

DATA ANALYSIS & INTERPRETATION

31

7.

OBSERVATION & SUGGESTIONS

47

8.

LIMITATIONS OF THE STUDY

50

9.

CONCLUSION

52

10.

BIBLIOGRAHY & REFERENCE

54

11.

APPENDIX

56

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EXECUTIVE SUMMARY
Marketing management 12e-Analysing consumer markets by Philip Kotler states that
perceptions are more important than reality and it affects the consumers actual behaviour.
Perception is defined as the process by which an individual selects,organizes,and interprets
information inputs to create a meaningful picture of the world.

Online stock trading in India: An empirical investigation

In 2007,Nidhi walia and Ravinder kumars research report examined the investors
preference for traditional trading and online trading, investors perception on online trading
and comparing current usage of online trading and offline trading. This study reveals that out
of every 100 investors only 28 trade online, which points out a question as why investors
were not able to realize the importance of technology in stock trading.
Online trading has gained momentum from just 0.5% of total traded volumes 5 Years
back, which now accounts for 5% of the total trading volume of approximately Rs 14000 Cr
on NSE. Over the past 2 years, the value of all trades executed through internet on NSE has
grown from less than Rs 100 cr in June 2003 to over Rs 700 Cr in June 2005.

The major findings of the study are that Indian investors are more conservative, they do
not change easily and Indian traditional traders still choose brokers for trading ,whereas net
traders are more comfortable with online trading for its transparency and complete control of
the terminal

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CHAPTER 1

INTRODUCTION
TO PROJECT

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1.1

Brief Description

Share khan is Indias leading online retail broking house. Launched on February 8, 2000
as an online trading portal, Share khan has today a pan-India presence with over 1,529
outlets serving 950,000 customers across 450 cities.

It also has international presence through its branches in the UAE and Oman. Share khan
offers services like portfolio management, trade execution in equities, futures & options,
commodities, and distribution of mutual funds, insurance and structured products. These
services are backed by quality investment advice from an experienced research team which

Page | 9

offers investment and trading ideas based on fundamental and technical research
respectively, market related news, statistical information on equities, commodities, mutual
funds, IPOs and much more.

Share khan is a member of the Bombay Stock Exchange, the National Stock Exchange and
the countrys two leading commodity exchanges, the NCDEX and MCX. Share khan is also
registered as a depository participant with National Securities Depository and Central
Depository Services.

Share khan has set category leadership through pioneering initiatives like Trade Tiger, an
Internet-based executable application that emulates a broker terminal besides providing
information and tools relevant to day traders. Its second initiative, First Step, is targeted at
empowering the first-time investors. Share khan has also set its global footprint through the
India First initiative, a series of seminars conducted by Share khan to help the non-resident
Indians participate and benefit from the huge investment opportunities in India.

1.2Time line of SHAREKHAN LTD.

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CHAPTER 2

COMPANY PROFILE

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2.1 Company Profile

Share khan was the first brokerage Company to go online. The Company's online trading
and investment site - www.Sharekhan.com - was also launched on Feb 8, 2000. This site
gives access to superior content and transaction facility to retail customers across the
country. Known for its jargon-free, investor friendly language and high quality research, the
content-rich and research oriented portal has stood out among its contemporaries because of
its dedication to offering customers best-of-breed technology and superior market
information.

Share khan has one of the best states of art web portal providing fundamental and
statistical information across equity, mutual funds and IPOs. One can surf across 5,500
companies for in-depth information, details about more than 1,500 mutual fund schemes and
IPO data. One can also access other market related details such as board meetings, result
announcements, FII transactions, buying/selling by mutual funds and much more.

Share khan's management team is one of the strongest in the sector and has positioned
Share khan to take advantage of the growing consumer demand for financial services
products in India through investments in research, pan-Indian branch network and an
outstanding technology platform. Further, Share khan's lineage and relationship with SSKI
Group provide it a unique position to understand and leverage the growth of the financial
services sector. We look forward to providing strategic counsel to Share khan's management
as they continue their expansion for the benefit of all shareholders."

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SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank
with strong research-driven focus. Their team members are widely respected for their
commitment to transactions and their specialized knowledge in their areas of strength. The
team has completed over US$5 billion worth of deals in the last 5 years - making it among
the most significant players raising equity in the Indian market. SSKI, a veteran equities
solutions company has over 8 decades of experience in the Indian stock markets.

If we experience their language, presentation style, content or for that matter the online
trading facility, we'll find a common thread; one that helps us make informed decisions and
simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all
about!

"Share khan has always believed in collaborating with like-minded Corporate into forming
strategic associations for mutual benefit relationships" says Jaideep Arora, Director Share
khan Limited.

Share khan is also about focus. Share khan does not claim expertise in too many things.
Share khan's expertise lies in stocks and that's what he talks about with authority. So when he
says that investing in stocks should not be confused with trading in stocks or a portfoliobased strategy is better than betting on a single horse, it is something that is spoken with
years of focused learning and experience in the stock markets. And these beliefs are
reflected in everything Share khan does for us! Share khan is a part of the SSKI group, an
Indian financial services power house, with strong presence in Retail equities Institutional
equities Investment banking.

In Nagpur it is having the branches at C.A. road, near telephone exchange square and Khare
town, Dharampeth and 12-13 franchisees in Nagpur. We have been given the centre at C.A.
road.

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Share khan provides 4 in 1 account-:

Demat a/c
Trading a/c: for cash calculation
Bank a/c: for fund transfer
Dial and Trade: for query relating trading

2.2Products:
Mutual fund schemes
Insurance
Portfolio Management System
Shares online and offline
Bonds
Fixed Deposits
Commodities
Out of these we have to mostly sell demat accounts and Mutual Funds.

2.3 Demat account:

Share khan is a depository participant. This means that we can keep the shares in
dematerialized form in Share khan. But for this one has to the demat account in Share khan.
Dematerialization is the process by which a client can get physical certificates converted into
electronic
balances
maintained
in
his
account
with
the
DP.

In Share khan, under demat account there are two types of terminals.

P a g e | 14

TYPE
OF DEMAT DEPOSIT (Refundable)
ACCOUNT TERMINAL

CHARGES
(nonrefundable)

CLASSIC

Rs.5000

Rs.750

Rs.10000

Nil

Rs.5000

Rs.1000

Rs.10000/25000

Nil

TRADETIGER

2.4 Its core services are:

Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE), and
Bombay Stock Exchange Ltd. (BSE),
Commodities trading on National Commodity and Derivatives Exchange India (NCDEX)
and Multi Commodity Exchange of India Ltd. (MCX),
Depository services,
Online trading services,
IPO Services,
Dial-n-Trade
Portfolio management services,
Fundamental and Technical Research services,
In addition to this they also provide advisory services and distributions for mutual funds.

Share khan Value Line (a monthly publication with reviews of recommendations, stocks to
watch out for etc.)
Daily research reports and market review (High Noon & Eagle Eye)
Pre-market Report
Daily trading calls based on Technical Analysis

P a g e | 15

Cool trading products (Daring Derivatives and Market Strategy)

Personalized Advice
Live Market Information

Share khan First Step

The Share khan First Step is a brand new program designed especially for those who are
new to investing in shares. All one have to do is open a Share khan First Step account and
they guide us through the investing process.

Market Share

Share khan enjoyed about 20 per cent market share in Web business (Internet trading) in
stock markets. Three years ago, Web trading showed lot of promise but with the market
witnessing a downturn, there was not much interest among retail customers.

Profits

The share of Web trading constituted 22 per cent of the revenue. As Share khans daily
trading volume was over Rs 200 crore, the share of Web trading at about Rs 40 crore a day
was substantial and a larger part of the volume was coming from day traders.

2.4Features of Trading With Share khan:

Freedom from paperwork
Instant credit and money transfer
Trade from any net enabled PC

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After hour orders

Online orders on the phone
Timely advice and-research reports
Real-time Portfolio tracking

Financial capability

Taking in to consideration all its assets and liabilities company is valued at around Rs. 750850 crores.

2.5Hierarchy in Share khan

There are 14 main hierarchical levels in Share khan:

Trainees
Super trainees
Sales executives
Assistant sales manager
Area sales manager : Mr.qumaruddin
City sales manager
Assistant branch manager
Branch manager
Regional head
Cluster head
Business head
Country head

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Directors
CEO

2.6Account opening:-

Opening a DP account with Share khan

One can open a Depository Participant (DP) account, either through a Share khan branch or
through a Share khan Franchisee center.
There is no fee for opening DP accounts with Share khan. However a nominal deposit
(refundable) is charged towards services which will be adjusted against all future billings.
All investors have to submit their proof of identity and proof of address along with the
prescribed account opening form.

List of Documents required to open an account with

Share khan:

Proof of Identity
You can submit a photo copy of any of the following
Voter ID
Passport
PAN Card

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MAPIN UID Card

Driving License
Photo I card issued by Employer registered under MAPIN

2.7Copy of Ration Card

Address Proof
You can submit a photo copy of any of the following
Voter ID card
Driving License
Passport
Ration Card
Telephone Bill
Electricity Bill
Leave-License
Bank Passbook
Latest Bank Statement
Insurance Policy
Flat Maintenance Bill

A copy of cancelled cheque

Nominee photograph, if filled
Signed Photograph of all holders

P a g e | 19

BROKERAGE STRUCTURE OF SHAREKHAN

BROKERAGE:

INTRADAY

DELIVERY

CASH- EQUITIES

0.05%

0.5%

F&O

0.05%

MINIMUM INVESTMENT IN MUTUAL FUND:

INVESTMENT

MINIMUM AMOUNT

Mutual Fund (Any Company)

5000

Systematic Investment Plan (Any 500

Company)

Share khan has tie up with the following banks:

HDFC
Axis Bank
IDBI

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Citi Bank
IndusInd Bank
Union Bank, ICICI, Oriental Bank Of Commerce

CUSTOMER

Business class people (high class)

High Net worth Individuals
Service class people
Government Employees
Young Adults (19-30 yrs.)
Adults (35-50 yrs.)
HUF (Hindu Undivided Family)
Women (literate and working)

COMPETITORS
India Bulls
Motilal Oswal
Religare
Kotak Securities
ICICI Direct
Anand Rathi
India Infoline

P a g e | 21

2.8 Objective of sharekhan :

o To project Share khan as an authority in the retail stock trading business.
o To execute business for the company by selling demat accounts and mutual funds.
o To study the various products of the company.
o To know how to open and close the calls.
o To learn the online terminal used for trading.
o To know the various policies of the company.
o To know how to handle various types of customers.
o To know various reasons for market fluctuations.
o To learn to manage time.
o To gain practical knowledge of the market.
o To have a practical experience of working in a reputed organization.

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ACHIEVEMENT OF THE
PROJECT
TARGET GIVEN:
Attend all the classes for an overview on online trading 45
A total sample of 50 for a companys questionnaire on perception of traders towards
online trading, which includes field work
A total sample of 50 for project questionnaire on perception of traders towards online
trading, which included field work and a report on the same with a research
methodology, findings and analysis and conclusion
Open 5 DMAT accounts

TARGET ACHIEVED:
A total of 43 classes attended out of 45. After that data collection work was done
where All the questionnaires were submitted, with a satisfactory field work and All
the questionnaires were submitted, with a project report and got evaluated for the
same. And from the target A total of 3 DMAT accounts were opened out of 5.
The classes attended gave the below information:
About timing of opening of market in BSE and NSE
The information of the brokerage which the company used to charge on a transaction
in online trading
Services share khan provides like ignite, session initiation protocol

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CHAPTER 3

RESEARCH PROBLEM
&

P a g e | 24

BACKGROUND

3.1 Background
This project is basically to know the perception of demat account holders towards online
trading
1) To make the online services better, the company wants the details of demat traders
who do trading through online this is being held throughout the India. But I have
given the NEW DELHI. There I have visited the following areas.
Jhandewala
Connaught place
Pacific mall , Ghaziabad
EDM mall, New Delhi
2) In addition to these documents various other information like number of traders,
online services provided by SHAREKHAN were taken. These data formed the main
basis of the study. Various analysis like online trading awareness, perception of online
trading for services and satisfaction of trader for online trading etc. were analyzed.

P a g e | 25

3) 2) Providing new services for online trading, this in user-friendly perspective is

increasing the involvement of user in online trading, which will in turn lead to more
satisfaction and growth.

3.2 Research Problem

o Getting appropriate response from the respondents
o Getting appointment from the investors.
o The study is limited to the curriculum.

CHAPTER 4

P a g e | 26

OBJECTIVES AND SCOPE

OF STUDY

4.1 Objectives of the study

The main objective of the study is:
Investors perception about E-trading
The sub objectives of the study are as follows:
o To study investors perception on online trading like safety regarding transaction
errors.
o To identify customer rankings on user friendliness of online terminal.
o To analyze brokerage of online trading as compare to off line trading according to
online traders.

P a g e | 27

4.2 Scope of Study

The main scope of the study is listed below:
It gives us information about the scope of opening a demat account in share khan with
online services.
It gives us information about the perception of trader towards online trading.
It shows the number of online trader.
It gives the information regarding the preference and choices of the different online
trader.
The study also gives information regarding the expansion of online services for trader
in future.
It gives the information about satisfaction level of online trader.

CHAPTER 5

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RESEARCH
METHODOLOGY

5.1 Research Design

Online trader analysis that are in trading and demat account holder: exploratory and
Descriptive research design.

5.2 Data
Primary Data: Primary data collected by interviewing the different types of
trader through alternative advisory firm and have administer the traders perception
towards E-trading with the help of per designed questionnaire.

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Secondary Data: collected from SHAREKHAN demat account holders and

from other area.

5.3 Research Instrument

A questionnaire was provided by the company for mapping the data of different types
of trader. The questionnaire they provided was open ended and containing the straight
forward questions.

5.4 Research Tool

Many statistical tools like:

QUESTIONNAIRE

DIRECT INTERVIEWS

Have been used in this research to derive the conclusion

5.5 Sample Size

Dealers

Sample Size :50

Successful Survey : 50

5.6

TOOLS

USED

FOR

ANALYSIS

TRADERS SATISFACTION LEVEL:

1. Graphical Representation of Analysis:

FOR

MEASURING

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Pie charts
Bar Diagrams
2. Hypothesis testing

CHAPTER 6

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DATA ANALYSIS AND

INTERPRETATION

Here I have selected age under 18-25 which will help to segregate and figure out segment
according to Gender, occupation, Income level and trading period -:

6.1Gender of online traders (Under 18-25)

FREQUANCY
Gender of traders who do trade online under age 18-25?
Table 1

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Gender

UNDER 18-25
Number of respondents

Male
Female

24
3

TOTAL
CHART NO- 1

27

Gender
30
24

25
20
15
10
5

0
male

female

INFERENCES: The above graph shows that out of 50 Respondents, under 18-25, 24 are male and 3
are female.
Under 18-25, the maximum numbers of traders are male.

6.2 Occupation of online traders (Under 18-25)

FREQUENCY
Occupation of traders who do trade online under 18-25?
TABLE 2
OCCUPATION
Students
Private Employee
Public-Employee

AGE UNDER 18-25

12(44%)
11(41%)
3 (11% )

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1 (4%)

Self-employed
CHART NO- 2

number of of traders
12
44%
student

private
emp.
1
4% 3
11%

public emp.
11
41%

self employed

INFERENCES: The above graph shows that out of 50 Respondents, 44% are students, 41% are Private
employees and 11% are public employees and 4% are self-employed.
Under 18-25, the maximum number of trader who are students.

6.3 Income level of traders (Under 18-25)

FREQUENCY
TABLE 3
INCOME LEVEL
Less than 1 lakh
1 Lakh to 3 Lakh
3 Lakh to 5 Lakh
More than 5 Lakh

AGE UNDER 18-25

6 (23%)
10 (37%)
1 (3%)
0 (0%)

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10 (37%)

NIL
TOTAL
CHART NO- 3
12
10

10

27 (100%)

10

6
4
2

37%

37%

23%

Income level under 18-25

percentage

3%
0 0%

INFERENCES: The above graph shows that out of 50 Respondents, 37% are under NIL category ,
37% are under Less than 1 Lakh , 23% are under 1 lakh to 3 lakh , 3% are under 3
Lakh to 5 Lakh and no one under More than 5 Lakh.
Under 18-25, there are equally number of traders who are under NIL categories and as
well as Less than 1 Lakh.

6.4 Trading period of Traders (under 18-25)

FREQUENCY
TABLE 4
TRADING TIME
1-2 Years
2-3 years
3-5 years
More than 5 years

TOTAL
CHART NO- 4

AGE UNDER 18-25

74(%)
26(%)
0 (0%)
0 (0%)

100%

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Trading time (Under 18-25)

2-3 years; 26%

1-2 years ; 74%

1-2 years

2-3 years

3-5 years

More than 5 years

INFERENCES: The above graph shows that out of 50 Respondents (under 18-25) , 74% have been
trading for 1-2 years, 26% have been trading for 2-3 years and no one has been trading
for 3-5 years as well as more than 5 years.
Under 18-25 age, the maximum number of traders who have been trading for 1-2 years
and after that 2-3 years trading period.

TRADERS PERCEPTION TOWARDS ONLINE TRADING

6.5 E-trading is easy way to trade in stock.
FREQUENCY
Table 5
SCALE
Strongly Disagree=1
Disagree=2

TOTAL RESPONSE(50)
0
1

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Neutral=3
Agree =4
Strongly Agree =5

11

TOTAL

50

10
28

CHART NO- 5

E-trading is easy way to trade in stock?

30
25
20
15
10
5
0

28

11

10
E-trading is easy way to trade in stock?
1

INFERENCES: Out of 50 traders, 56% of traders rated Easy way to trade as strongly agree, 20 %
are rated it as agree, 22% as Neutral and 1% rated as Disagree and one rated Strongly
Disagree.
Almost all the traders have shown a positive response towards Easy way to trade.

6.6 Online trading is friendlier as compare to

offline trading.
FREQUENCY
TABLE 6
TRADING TIME
Strongly Disagree=1
Disagree=2
Neutral=3

TOTAL RESPONSE(50)
0
1
11

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Agree =4
Strongly Agree =5

10

TOTAL

50

28

Online trading is friendlier as compare to offline trading.

5=strongly Agree

4= Agree

19

3=Neutral
Online trading is friendlier as compare to offline trading. 17
2=disagree

1=Strongly Disagree

10 12 14 16 18 20

CHART NO- 6
INFERENCES: Out of 50 traders, 38% of traders rated brokerage more in online compare to offline as Agree, 34 % are rated it as Neutral, 10% as disagree and 10% rated as
Strongly Agree and 8% rated Strongly Disagree.
38% traders say that online trading causes more brokerage as compare to off line
trade

6.7 Time period of trader (Data taken from all 50 responses)

FREQUENCY

TABLE 7
TRADING TIME
1-2 Years
2-3 years
3-5 years
More than 5 years

TOTAL

RESPONSE FROM 50
29(58%)
16(32%)
4(4 %)
1(2%)

100%

P a g e | 38

CHART NO- 7

Trading Period

16
1-2 years

2-3 years

3-5 years
more than 5 years

29

INFERENCES: The above graph shows that out of 50 Respondents, 58% have been trading for 1-2
years, 32% have been trading for 2-3 years and no 8% have been trading for 3-5 years
2% more than 5 years.
Under 50, the maximum numbers of traders who have been trading for 1-2 years and
after that 2-3 years trading period.

6.8 You feel secure while trading online.

FREQUENCY
TABLE 8
SCALE
Strongly Disagree=1
Disagree=2
Neutral=3
Agree =4
Strongly Agree =5

TOTAL

TOTAL RESPONSE(50)
5
0
9
22
14

50

P a g e | 39

CHART NO- 8

You feel secure while trading online.

14

1=Strongly disagree
2=disagree
3=neutral

4=Agree

22

5=Strongly agree

INFERENCES: Out of 50 traders, 44% of traders rated Online trading is secure and reliable as
Agree, 28 % are rated it as Strongly agree, 18% as neutral and 10% rated as Strongly
Disagree and no one rated Disagree.
44% traders are agreed that online trading is secure and reliable.

Cross tabulation
Case Processing Summary
Cases
Valid
N
age * gender

Percent
50 100.0%

Missing
N

Total

Percent
0

.0%

Percent
50 100.0%

P a g e | 40

P a g e | 41

age * gender Cross tabulation

Gender
F
age

18-23

18-25

18-26

18-27

25-30

Count

M
0

Total
1

% within age

.0% 100.0% 100.0%

% within
gender

.0%

2.2%

2.0%

% of Total

.0%

2.0%

2.0%

21

24

Count
% within age

12.5%

87.5% 100.0%

% within
gender

60.0%

46.7%

48.0%

% of Total

6.0%

42.0%

48.0%

Count
% within age

.0% 100.0% 100.0%

% within
gender

.0%

2.2%

2.0%

% of Total

.0%

2.0%

2.0%

Count
% within age

.0% 100.0% 100.0%

% within
gender

.0%

2.2%

2.0%

% of Total

.0%

2.0%

2.0%

10

10

Count
% within age
% within

.0% 100.0% 100.0%

.0%

22.2%

20.0%

P a g e | 42

Hypothesis Testing
Ho: Age and gender are independent of each other.
H1: Age and gender are not independent of each other.

Chi-Square Tests
Value

Asymp. Sig.
(2-sided)

df

Pearson ChiSquare

3.056a

.802

Likelihood Ratio

4.415

.621

N of Valid Cases

50

a. 11 cells (78.6%) have expected count less than 5.

The minimum expected count is .10.

Inference:Since the calculated value (.802) is greater than tabulated value ( 0.05), null hypothesis is
accepted i.e. age and gender are independent of each other.

HYPOTHESIS
For the purpose of analyzing the gathered information few marketing hypotheses were the
major issues in a successful conclusion of the research.
1. Issue: security is an important issue during online trading.
H0: More than 50% of traders believe that security is Important.

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H1: Less than 50% of traders believe that security is not important.
Applying Z test can prove this-:
Computation of Z value
Z=

P-P/ sigma P

P=0.50

q = (1-P) =0.50

N=50
Where P= X/N = Respondents favoring Ho
Total sample size
P=36/50=.72
Sigma P P (1-P)/ (N)

= .0707

Z= 0.72-0.5/0.0707
Z =3.12
K=1.96 (table value of Z) [Assuming 95% confidence interval]
Conclusion:
Since critical value (K=1.64) is less than calculated Z value (3.12) null hypothesis is
accepted.

Result:
More than 50% of traders are satisfied and say security is important in online
trading.
2. Issue: Online trading is friendlier as compare to offline trading.
H0: More than 50% of traders are satisfied that online trading is friendlier as compare to

offline trading.

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H1: Less than 50% of traders are not satisfied that online trading is friendlier as compare to

offline trading.
Applying Z test can prove this-:
Computation of Z value
Z=

P-P/ sigma P

P=0.50

q = (1-P) =0.50

N=50
Where P= X/N = Respondents favoring Ho
Total sample size
P=38/50=.76
Sigma P P (1-P)/ (N)

= .0707

Z= 0.76-0.5/0.0707
Z =3.68
K=1.96 (table value of Z) [Assuming 95% confidence interval]
Conclusion:
Since critical value (K=1.64) is less than calculated Z value (3.68) null hypothesis is
accepted.

Result:
More than 50% of traders are satisfied that online trading is friendlier as compare to offline
trading.

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SWOT ANALYSIS OF SHARE KHAN LTD.

STRENGTHS
Share khan is Indias leading online retail broking house
It has a good research team.
No Annual maintenance charges for their online broking services for one year.

WEAKNESS
High brokerage charges but now they have overcome this by a new prepaid in which
brokerage is reduced to half.

OPPORTUNITY
Financial services sector in India is growing by leaps and bounds.
In the upcoming days SHARE KHAN LTD. is coming up with his own insurance.

THREATS
Cut-throat competition from corporate big houses like RELIGARE and ICICI
MATUAL FUND.

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Chapter 7

OBSERVATION &
SUGGESTIONS

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OBSERVATIONS
Research has been made on the topic A study of Investors perception about E-trading to
identify the level of satisfaction of traders from different location. Whole study only depends
upon DELHI-NCR online trader.
Based on the analysis and the interpretation of the data, observations and suggestions are
recorded which are as follows-:
As 38% traders rated agree that online trading is more expensive than offline trading.
56% traders have rated on Strongly agree that online trading is an easy way to
trade. Rest 26% who have rated on Agree.
58% traders have been trading for 1-2 years.
Under 18-25 years age there are more number of trading which are male as compare
to female.
There is more number of traders who are student as compare to private employee or
public employee.
More than 50% of traders are satisfied that online trading is friendlier as compare to
offline trading.
More than 50% of traders are satisfied and say security is important in online trading.
No one does trading more than 5 years under 18-25
Income level is equally 37%, 37% between NIL or Less than one Lakh under 18-25.
A hypothesis testing was done to check the importance of the security for the traders
and it was found out of the total samples of 50, more than 50% of the traders believed
that security is an important concern for them.

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Similarly a hypothesis testing was done to check that approximately how many traders
in percentage feel that online trading is comfortable then online trading, the results
were in favour as the null hypothesis is accepted: result being that more than 50% of
the traders believe that online trading is friendlier then offline trading.

SUGGESTIONS
Suggestions to Share khan Ltd. through this report
Based on the findings of the study I would like to suggest few points so that it will help them
to expand their online services.
Share khan Ltd. should focus on female traders as it in low in numbers compare to
male under 18-25
Online brokerage charges should be cut down as compare to offline brokerage because
more number of traders have rated as AGREE on high brokerage compare to offline
brokerage.
Share khan Ltd. should generate better services so that they can sustain traders more
than 5 years as it is negligible.
Share khan Ltd. has to do more focus on Public employee or Self-employed as these
are less in numbers.
Though the satisfaction level is good in most of the cases with respect to easy trader
or friendlier than offline trading, full satisfaction level still needs to be achieved with
respect brokerage charges.
Share khan can let their customer Know that When to Sell Your
Stocks? Everyone focuses on what and when to buy stock, yet few
ever consider the best time to sell. So to make online trading
friendlier it can be done.

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Self-employed traders have courage to trader or invest more in stock. So more and
more focus should be on them to gain advantage.

Chapter 8

LIMITATIONS OF THE
STUDY

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8.1 Limitation and Constraint

While questionnaire filling process sometimes the clients do not give positive
response, may be because they are really busy or may be not interested in filling it.
Due to more number of questions in questionnaires traders were doing fluke things.
While interviewing when we met the online traders, they said that if they have to
spend money they will invest it in their shops and not in the share market. They dont
want to take risk. There are some negative rumors in the market about Share khan ltd.
Some people have very bad experience with Share khan in terms of services and
charges. That perception affected our data collection process.
The small sample size pertaining to a particular geographical region cannot be the
decisive factor for drawing conclusion about the study.

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CHAPTER 9

CONCLUSION

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CONCLUSION
Doing a research for such a prestigious organization was quite an experience for me; it
helped me to learn a lot about what methods we need to follow to conclude a methodological
research.
The name of the project is A STUDY OF INVESTORS PERCEPTION ABOUT
E-TRADING. The data was collected from online traders and the research was done to
check the perception of traders towards the online trading facility provided by sharekhan.
The research gave us an insight about the preferences of the customers when it comes about
security, a comparison between online and offline trading on the basis of ease, comfort, user
friendliness, cheaper in terms of money and time. The results were in favor of online trading.

CONCLUSION DRAWN FROM HYPOTHESIS TESTING

A hypothesis testing was done to check the importance of security for traders and for more
than 50% of the traders security is an important concern.
Similarly a test was done on the user friendliness concern between online and offline trading.
More than 50% of the traders believed that online trading is more user friendly than offline
trading.

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CHAPTER 10

BIBLIOGRAPHY

P a g e | 54

Bibliography

1.
2.
3.
4.
5.
6.
7.
8.

Naresh K. Malhotra, Satyabhushan Dash - Marketing Research: An Applied

Orientation
Nidhi Walia, Ravinder Kumar, Online Stock Trading in India: An empirical
investigation, Indian, Article Number, April 2007,Article6 ISSN 0973-8703
Philip Kotler ,Marketing Management: A South Asian Perspective 14th edition
http://en.wikipedia.org/ - 7-9 May, 2014
http://www.sharekhan.com/ - 13-14 May, 2014
http://www.articlesbase.com/finance-articles/on-line-trading-an-overview1323823.htm - 18-19 May, 2014
www.traderonline.com 23 May, 2014
Online-stock-trading-review.toptenreviews.com 24-25 June, 2014

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CHAPTER 11

APPENDIX

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1.

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Strongly Disagree
= SD

Disagree =
D

Neutral =
N

Agree =
A

S.NO.
1.

E-trading is easy way to trade in stock.

2.

You feel secure while trading online.

3.

Online trading is friendlier as compare to

offline trading.
You face less Transactional error while
trading online.
The amount of information given in the
online account is sufficient for trading
decisions.
Through online trading customer can
modify the placing orders according to the
market movements.

4.
5.

6.

7.

8.

9.
10.

11.

Strongly agree
= SA

SD

Technical charts and graphs shown in the

account, guides in making the right
choice.
Online trading is one stop shop like Bank
statements and transaction statements on
one click.
Online trading causes more Brokerage as
compare to offline trading.
Online trading is less time consuming as
compare to offline trading.
Online trading gives tips about buy/sell of
shares .

SA