A STUDY ON

ONLINE TRADING AND CLEARING & SETTLEMENTS

AT
ARIHANT CAPITAL MARKET Ltd.

Project report submitted in

Partial fulfillment for the award of

MASTER OF BUSINESS ADMINISTRATION

Submitted in partial fulfillment for the award of the

Master of Business Administration

Submitted by

Name: Saurabh Bhalla

Roll No.: 1405009510
Course: BBA final semester
 ONLINE TRADING AND CLEARING & SETTLEMENTS AT
ARIHANT CAPITAL MARKET Ltd.

This is well known saying “knowledge without application is a waste”.

So it is very necessary to provide the practical knowledge along with the

theoretical knowledge. It is very easy to study the fundamental of
management. But is somehow to implement them within the through of the
actual atmosphere of business. No doubt classroom study is in important part
for the knowledge of Business Environment, but practical exposure provide
some extra knowledge about the rhetorical concept. My project is directed
towards “online trading and clearing settlement”. For this ,I have conducted
the survey and find out the relevant information

INTRODUCTION TO THE STUDY

Stock exchange is an organized market place where securities are traded.

These securities are issued by the government, semi-government bodies,
public sector undertakings and companies for borrowing funds and raising
resources. Securities are defined as any monetary claims (promissory notes or
I.O.U) and also include shares, debentures, bonds and etc., if these securities
are marketable as in the case of the government stock, they are transferable
by endorsement and alike movable property. They are tradable on the stock
exchange. So is the case shares of companies.
Problem of the Study & REVIEW OF LITERATURE

Doing the survey, it was really an opportunity before me when I could convert
my theoretical knowledge into practical and of real world type. Fortunately,
the company I got is a true follower of the various principles of management
and also one of the leading companies in its segment of the industry.
PROBLEMS STATEMENT

 All the stock exchanges in India were mechanized in the year 1994
November. That was the year when the stock exchanges introduced screen
based trading across the country.
 While on line trading gives you speed and price advantage, there is some
risk and disadvantage to entering orders on-line. The page alerts you to any
pitfalls you should watch out for if you want to use the internet to trade
stocks.
 If you do commit to trading online, you must be careful when you enter
stock orders. It is easy to make mistakes, but the market and your brokers
may not be sympathetic. Once an order is submitted, there may be nothing
you can do to take it back if you made a mistake. The various types of
orders you enter can be confusing.
 Individuals are restricted to first hand financial guidance. This simply
means that the individual is himself/herself alone to make the decisions.
 Tax (sales tax and value added tax) evaluation becomes an issue, especially
when you are trading internationally.
 Changes are that one has no idea who is dealing with on the other end, so it
is advisable to gather all the possible information about the party one is
dealing with. In short are full knowledge is to be known.
 OBJECTIVES OF THE STUDY:

The objectives of the study are as follows:

 To know the on-line screen based trading system adopted by ACM and about
its communication facilities for the appropriate configuration to set network.
This would link the ACM to individual brokers/members.
 To study about the backup measures with respect to primary communication
facilities, in order to achieve network availability and connectivity back-up
options.
 Study about Clearing & Settlements in the stock exchanges for easy transfer
and error prone system. Also study about computerization demand process.
 To know about the settlement procedure involved in ACM and also NSDL
operations.
 Clearing defining each and every term of the stock exchange trading
procedures.
 RESEARCH METHODOLOGY

Research is defined as human activity based on intellectual application in

the investigation of matter. The primary aim for applied research is
discovering, interpreting, and the development of methods and systems for
the advancement of human knowledge on a wide variety of scientific matters
of our world and the universe. It is exploratory and often driven by the
researcher’s curiosity, interest, and intuition. It is conducted without any
practical end in mind, although it may have unexpected results pointing to
practical applications.

TYPES OF RESEARCH:

To accomplish the objective of the study, descriptive research design is

adopted to collect the data from the consumers of the different brands.
Descriptive research simply describes things such as demography
characteristics of consumers who use the product. The descriptive study is
typically concerned with determining frequency with which same thing occurs.
This study is typically guided by initial hypothesis.

DATA COLLECTION METHODS:

For any research these two types of data are necessary:

1. Primary data

2. Secondary data
Primary Data:

For this project the primary data is collected in four ways:

Through observations, Through discussion ( Department Heads &

Executives), Through questionnaires and Through Sampling procedure

Secondary Data:

The secondary data is collected from various sources available with in

the organization like Organizational web site, Company Past records, Library
books, Internet, Annual reports, Consulting administrative staff and from
Consulting marketing Managers

SAMPLING:

“Sampling may be defined as the selection of an aggregate or totally

on the basis of which a judgment of reference about the aggregate of totally
is made. “Sampling is used in conducting surveys and in studying various
problems concerning production management, time and motion studies,
market research, various areas of accounting and finance and the like.

 Sample size:
For the project 50 customers were taken into consideration and they
are selected on the random basis.

 Method of sampling:
The method of sampling, which selected, is “non probability
convenience sampling “. In this method the sample insights are chosen
primarily on basis of my convenience.

The sample technique adopted for carrying out the survey is stratified
random.
STATISTICAL TOOLS:

Statistical techniques are to obtain findings and average information in

logical sequence from the raw data collected. After tabulation of data research
have used the following quantitative technique.

 Percentage analysis
 Charts

 PERCENTAGE ANALYSIS
Percentage refers to special kind of ratio. This method is used as
making comparsion between two or more services of data. Persenatage are
used to decidable relationship. Persentage can also used to compare thge
relative terries, the distribution of two or more services of data

 CHARTS
Bar charts and pie charts are used to get a clear look at the tabulated data.
 NEED OF THE STUDY

The scope of the project is to study and know about Online Trading and Clearing &
Settlements dealt in Inter-Connected Stock Exchange.By studying the Online
Trading and Clearing & Settlements, a clear option of dealing in stock exchange is
been

Understood. Unlike olden days the concept of trading manually is been replaced for
fast interaction of shares of shareholder. By this we can access anywhere and know
the present dealings in shares. The comprehensive study of on “online trading system
and Clearing & settlements at Arihant Capital Markets Ltd has been an enlightening
experience stressing on the position aspects on security trading. Dematerialization of
shares and online trading has done in whole lot of good to the issuer, investor,
companies and country.

BIBLIOGRAPHY

Newspaper: Economic Times of India

Web-site: www.nseindia.org
www.iseindia.com
www.nsccl.com
Report: ACM Report