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“INTERNET TRADING OF SECURITIES AND ITS INCREASING TREND’’
(A SURVEY OF CHANDIGARH CITY)
Department of Lovely School of Management Lovely Professional University , Jalandhar In partial fulfillment of the requirement for degree of
MASTER OF BUSINESS ADMINISTRATION (2009-10)
SUPERVISED BY: Miss Ashu kakkar Dept. of LSM
SUBMITTED BY: Ankur Gupta 10806962 RS1302A11
LOVELY PROFESSIONAL UNIVERSITY JALANDHAR
This is to certify that the research project entitled “Internet
trading of securities
and its increasing trend” submitted in the partial fulfillment of the requirement for
the award of degree of
Master of Business Administration of the Guru Nanak Ankur Gupta
Dev University, Amritsar, is a bonafide research work carried out by the degree.
under my supervision and that no part of this research work has been submitted for any other The assistance and help received during the execution of the project has been fully acknowledged.
(Miss. Ashu Kakkar) Deptt. Of LSM, LPU, JALANDHAR
At the very outset I am grateful to Miss Ashu Kakkar Department of Lovely School of Management, Lovely Professional University Jalandhar, for giving me an opportunity to undertake the project and providing an immaculate intellectual guidance during my entire study. Any endeavor cannot be satisfactorily completed without the advice and co-operation from friends. Further I am highly grateful to the respondents for the valuable information and the precious time they spare for me to make this project. Last but not the least I wish to acknowledge the support and final assistance received from my parents without their invaluable positive approach, inspiration, their deep love and unaccountable sacrifices made it possible to complete my work successfully.
1 5.3 1.CONTENTS TOPIC NAME 1 INTRODUCTION 1.2 Objectives of the study 3.3 Scheme of the study 3.1 Statement of the problem 3.5 Importance of the study 3.2 Findings Conclusion 5 6 ANNEXURE Questionnaire Bibliography 4 .4 Research Methodology 3. 5 6 10 20 25 49 53 54 54 55 57 60 61 62 70 71 72 73 74 77 NSE and BSE Online trading Internet trading 2 3 REVIEW OF LITERATURE RESEARCH DESIGN 3.2 1.1 Indian Capital market 1.4 PAGE NO.6 Limitations of the study 4 ANALYSIS AND INTERPRETATION FINDINGS AND CONCLUSION 5.
paper and flourmills and all companies generally enjoyed phenomenal prosperity. steel. However. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century.Indian Capital Market. 2850 could only be sold at Rs. the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Bank of Bombay Share. At the end of the American Civil War. Thus. Limited in 1907. 6 . due to the First World War. which had touched Rs. the Stock Exchange at Bombay was consolidated. thus. there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. the brokers who thrived out of Civil War in 1874. the 'Share Mania' in India begun. In 1887. in 1865. sugar. Its history dates back to nearly 200 years ago. at the end of the American Civil War. 87). the "Native Share and Stock Brokers' Association" (which is alternatively known as " The Stock Exchange "). In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped. a disastrous slump began (for example. they formally established in Bombay. The earliest records of security dealings in India are meager and obscure. found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. Though the trading list was broader in 1839.An Overview Evolution Indian Stock Markets are one of the oldest in Asia. an important stage in industrial advancement under Indian enterprise was reached. The number of brokers increased to about 200 to 250. In 1895. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. Indian cotton and jute textiles.
the number of members stood reduced from 100 to 3. when boom faded. and so it went out of existence.In 1920. under the name and style of "The Madras Stock Exchange" with 100 members. the then demure city of Madras had the maiden thrill of a stock exchange functioning in its midst. However. 7 . by 1923.
8 . The Uttar Pradesh Stock Exchange Limited (1940).were floated and later in June 1947. seeds and other commodities. Many new associations were constituted for the purpose and Stock Exchanges in all parts of the country were floated.Indian Stock Exchanges . They were anxious to join the trade and numerous others swelled their number. But. It gave a sharp boom. the situation changed radically.Delhi Stock and Share Brokers' Association Limited and the Delhi Stocks and Shares Exchange Limited .An Umbrella Growth The Second World War broke out in 1939. On account of the restrictive controls on cotton. which was followed by a slump. bullion. In Delhi two stock exchanges . amalgamated into the Delhi Stock Exchange Association Limited. when India was fully mobilized as a supply base. Nagpur Stock Exchange Limited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated. in 1943. those dealing in them found in the stock market as the only outlet for their activities.
The latter is permitted only in the case of specified shares. The nature of trading on Indian Stock Exchanges are that of age old conventional style of faceto-face trading with bids and offers being made by open outcry. Equity shares of dividend paying.50 million and a market capitalization of at least Rs. where a member can act as a jobber or a broker only. growth-oriented companies with a paid-up capital of at least Rs. buy and sell securities on his own account and risk. 9 .000 shareholders are.Trading Pattern of the Indian Stock Market Trading in Indian stock exchanges are limited to listed securities of public limited companies. normally. A member broker in an Indian stock exchange can act as an agent. namely. put in the specified group and the balance in non-specified group. Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery transactions "for delivery and payment within the time or on the date stipulated when entering into the contract which shall not be more than 14 days following the date of the contract”: and (b) forward transactions "delivery and payment can be extended by further period of 14 days each so that the overall period does not exceed 90 days from the date of the contract". The brokers who carry over the outstanding pay carry over charges (cantango or backwardation) which are usually determined by the rates of interest prevailing. there is a great amount of effort to modernize the Indian stock exchanges in the very recent times. They are broadly divided into two categories. buy and sell securities for his clients on a commission basis and also can act as a trader or dealer as a principal.100 million and having more than 20. specified securities (forward list) and non-specified securities (cash list). in contrast with the practice prevailing on New York and London Stock Exchanges. However.
efficient and transparent securities market using electronic trading system. It uses a modern. the National Stock Exchange was incorporated in 1992 by Industrial Development Bank of India. Providing a fair. NSE was set up with the Objectives of • • • • • • Establishing a nationwide trading facility for all types of securities. Ensuring equal access to investors all over the country through an appropriate communication network. fully computerized trading system designed to offer investors across the length and breadth of the country a safe and easy way to invest. With the liberalization of the Indian economy. which adopts the principle of an order driven market. selected commercial banks and others. fully automated screen based trading. it was found inevitable to lift the Indian stock market trading system on par with the international standards. Enabling shorter settlement cycles and book entry settlements. On the basis of the recommendations of high powered Pherwani Committee. Industrial Finance Corporation of India. all Insurance Corporations. Industrial Credit and Investment Corporation of India. The NSE trading system called 'National Exchange for Automated Trading' (NEAT) is a fully automated screen based trading system. 11 . and Meeting the international benchmarks and standards.National Stock Exchange (NSE) NSE introduced for the first time in India.
commercial paper. The prices at which the buyer and seller are willing to transact will appear on the screen. Wholesale debt market operations are similar to money market operations .Trading at NSE can be classified under two broad categories (a) Wholesale debt market and (b) Capital market. 12 . Trading members can stay at their offices and execute the trading. When the prices match the transaction will be completed and a confirmation slip will be printed at the office of the trading member. Recognized members of NSE are called trading members who trade on behalf of themselves and their clients.institutions and corporate bodies enter into high value transactions in financial instruments such as government securities. etc. certificate of deposit. There are two kinds of players in NSE (a) Trading members and (b) Participants. since they are linked through a communication network. which adopts the principle of an order-driven market. treasury bills. Participants include trading members and large players like banks that take direct settlement responsibility. Trading at NSE takes place through a fully automated screen-based trading mechanism. public sector unit bonds.
Shares • • Equity Shares Preference Shares B. Debentures • • • • • Partly Convertible Debentures Fully Convertible Debentures Non Convertible Debentures Warrants / Coupons / Secured Premium Notes/ other Hybrids Bonds C. Units of Mutual Funds 13 .Securities Available for Trading The Capital Market (Equities) segment of NSE facilitates trading in the following instruments: A.
Each trading member trades on the NSE with other members through a PC located in the trading member's office. • The trading members on the various market segments such as CM / F&O. It uses satellite communication technology to energy participation from around 320 cities spread all over the country. which include non-stop fault-tolerant computers and high-end UNIX servers. which is cheaper.network is the largest private wide area network in the country and the first extended C. system and database administration. design and development of in-house systems and design and implementation of telecommunication solutions. • • NSE is one of the largest interactive VSAT based stock exchanges in the world.Trading Technology of NSE • At both the Exchanges trading takes place through electronics trading system called screen based trading system. Today it supports more than 3000 VSATs. There are over 15 large computer systems. • The Exchange currently manages its data center operations. operational under one roof to support the NSE applications. WDM are linked to the central computer at the NSE through dedicated 64Kbps leased lines and VSAT terminals. the trading software of NSE is called NEAT which is a state-of-the-art client server based application. • • Currently more than 9000 users are trading on the real time-online NSE application. • NSE's IT set-up is the largest by any company in India. anywhere in India. have wider reach & provides a better & transparent trading & settlement mechanism. 14 .Band VSAT network in the world. • • NSE can handle up to 60 Lac trades per day in Capital Market segment. The NSE.
NSE is displaying its live stock quotes on the web site (www.com) which are updated online. 15 .nseindia.This coupled with the nation wide VSAT network makes NSE the country's largest Information Technology user.
NSE Trading Network 16 .
Investors can trade at the same price from anywhere in the country since inter-market operations are streamlined coupled with the countrywide access to the securities. • Delays in communication.NSE has several Advantages over the Traditional trading exchanges • • NSE brings an integrated stock market trading network across the nation. • Unless stock markets provide professionalism service. In this regard NSE gains vital importance in the Indian capital market system. India cannot afford to damage the capital market path. small investors and foreign investors will not be interested in capital market operations. And capital market being one of the major sources of long-term finance for industrial projects. 17 . late payments and the malpractice’s prevailing in the traditional trading mechanism can be done away with greater operational efficiency and informational transparency in the stock market operations. with the support of total computerized network.
During the year 2004-2005. The Board comprises eminent professionals. Popularly known as "BSE". 1956. 1956. representatives of Trading Members and the Managing Director of the Exchange. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified. The BSE's On Line Trading System (BOLT) is a proprietory system of the Exchange and is BS 7799-2-2002 certified. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The Board is inclusive and is designed to benefit from the participation of market intermediaries. Earlier an Association of Persons (AOP). is tracked worldwide. it was established as "The Native Share & Stock Brokers Association" in 1875. SENSEX. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. 18 . In terms of organization structure. the trading volumes on the Exchange showed robust growth. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act. With demutualisation. The Managing Director and a management team of professionals manage the day-to-day operations of the Exchange. The Exchange is professionally managed under the overall direction of the Board of Directors. the Exchange is now a demutualised and corporatised entity incorporated under the provisions of the Companies Act. 2005 notified by the Securities and Exchange Board of India (SEBI). The Exchange provides an efficient and transparent market for trading in equity. pursuant to the BSE (Corporatisation and Demutualisation) Scheme. the Board formulates larger policy issues and exercises overall control. The committees constituted by the Board are broad-based. debt instruments and derivatives. the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest.Bombay Stock Exchange.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index. Bombay Stock Exchange limited is the oldest stock exchange in Asia with a rich heritage.
• The BOLT platform capacity has been enhanced to 40 lakh trades per day by upgrading the hardware. The initiative enables investors anywhere in the world to trade on the BSE platform. This totally automated screen based trading in securities was put into practice nation-wide within a record time of just 50 days. • The trading and settlement activities of the member-brokers are closely monitored through On-line Real Time System known as BSE Online Surveillance System (BOSS).Ends. have been used for the Exchange applications.com. BSE had replaced its open outcry system with BSE Online Trading (BOLT) facility in 1995. etc.TRADING TECHNOLOGY BSE • To facilitate smooth transaction. • Exchange has also introduced the world’s first centralized exchange based Internet trading system. The latest software platforms like ORACLE 7 RDBMS. • The Exchange uses powerful RISC -based UNIX servers. 19 . SQL/ ORACLE FORMS 4. BSE WEBx. • BSE’s Wide Area Network (WAN) connecting over 8000 BSE Online Trading (BOLT) System Trader workstations (TWS) is one of the largest of its kind in the country. procured from Digital and HP for the back office processing.5 Front .
bank and depository participant. HDFC sec as a brokerage house offers users an interface on the Internet (what you see when you log on to our site) and also offers the required guidance for them to place buy or sell orders over the Internet. a telephone and an Internet account with any one of the Internet service providers. Because online brokerages want to keep you at their Web site. In the real world you place orders with your stockbroker. Some online brokers also offer free company reports by Argus. full-priced brokers were the only way to buy and sell stocks. in the hope that you'll place a trade with them.Online Trading. In 1975 the SEC changed the rules to allow discount brokers like Schwab to charge 21 . you need to have accessed to a personal computer (with a modem). many offer these tools and information themselves. Mumbai (BSE) allow brokerage houses like HDFCsec that are registered with the Securities Exchange Board of India (SEBI) to offer e-broking facilities to their users Online Trading is a service offered on the Internet for purchase and sale of shares. In Online Trading. E . You can now use your computer to screen stocks for any of a variety of criteria (such as low price-earnings or price-sales ratios. the National Stock Exchange (NSE) and The Stock Exchange. you will access a stockbroker's website through your internet-enabled PC and place orders through the broker's internet-based trading engine. The essential component of Internet-based trading is the interface between Broker. The Internet is nothing but a global network of both phones and computers. Hoover's and Standard & Poor's--information that might cost money elsewhere on the Web. and as Net-based trading becomes a reality this interface will develop. For almost two centuries. In India.broking is the process of buying or selling securities electronically (through the Internet). The changes wrought by the Internet have come with blinding speed and will almost certainly accelerate. About the only thing full-service brokerages can still keep private are their own analysts' reports. Hence. or rapid earnings growth). to trade electronically. These orders are routed to the Stock Exchange without manual intervention and executed thereon in a matter of a few seconds.
22 . But those commissions were still ten and 20 times higher than the fees being levied today on the Internet.less than the fixed rate.
which will be easier to handle and keep track of. if you're comfortable finding your own research for investing online. specifically large-cap domestic stocks. by e-mail. including any handling fees? How are confirmations sent to you -. While these stocks should make up part of your portfolio. Each one has strengths and weaknesses. Start with a smaller sum. Just as the upside for currency trading is high. Most of these investments are around the base rate as set by 23 . If you have US dollars you can buy British pounds for a set rate and they trade the money back in the future at a different rate.Some Basic Tips to Online Trading If you are new to investing online. then the deep discount brokers will work well for you. Once you feel confident. by snail mail. For example. they shouldn't be all of it! Take into account your time horizon and risk tolerance to develop a well-balanced portfolio of stocks. the downside is just as scary and can be immense also. Ask yourself…What services are offered? Do they have research available? What is the cost to you for investing online? What are the real commissions costs to do a trade. In a low interest rate environment like the US. and cash. Much larger than gains made on the stock market. by phone? Can you enter orders by phone. you can then decide to add more money to your investing online account. directly on-line? Does it cost extra to call and talk to a broker for help with your account? Basically you can make money from trading money. there are some important facts you should know before choosing a broker. There are currency-trading brokers available on line that can provide strategies to limit your losses and maximize your gains. it can be a problem to invest in secure highyielding fixed income investments. Once online. but not everyone sees a broker in the same way.by e-mail. This can make your gains immense. don't put your entire life savings into an online account. If you're new to investing online and are looking to open a brokerage account. many investors tend to concentrate on stocks. bonds.
the government. In New Zealand or Australia some fixed interest investments are worth 7. An issue with making an investment abroad is that currency rates are so volatile that even though you make 5% on yield.5% or 8%. To eliminate this uncertainty you can make a foreign investment today using a spot trade and also set up a forward trade at the time of investment maturity. currency rates can work in your favor and your investment will have an extremely high yield. that gain can be wiped out in currency rates. Setting up a forward trade costs money but in many instances the cost of the trade is minimal in comparison to the gains that can be made 24 . Equally. This way you eliminate currency risk in your investment and can capitalize on foreign products. It would be difficult to get secure investments around the 3% mark.
The advantage of internet trading is that the client can be permanently connected to the market and instantly receive updated live information as well as trade straight through without having to ring the adviser ask for a quote and then place the order. The user screen as is fully customizable by the end user to display information based upon his own preferences. It is highly recommended that you have some trading experience prior to using any Internet trading service. Thus a client sitting in any part of the country would be able to trade using the Internet as a medium through brokers' Internet trading systems. Internet trading requires extreme discipline and even the best have come unstuck here. Futures & Options segments of NSE and Cash segment of BSE and NCDEX. as some traders prefer to go it alone. The Securities & Exchange Board of India (SEBI) approved the report on Internet Trading brought out by the SEBI Committee on Internet Based Trading and Services In January 2000. which will route client orders to exchange trading systems for execution.Internet Trading. 2000 Internet trading is becoming increasingly popular amongst the private client community. The Internet trading platform is a real time trading solution for users to watch market prices and execute buy and sell orders instantaneously. SMDRP/POLICY/CIR-06/2000 dated January 31. SEBI-registered brokers can introduce Internet based trading after obtaining permission from respective Stock Exchanges. SEBI has stipulated the minimum conditions to be fulfilled by trading members to start Internet based trading and services. vide their circular no. The Internet trading platform is available for the Cash. Internet trading is a fast and efficient way of receiving live instant data and is becoming particularly popular with clients seeking direct access to electronically traded markets around the globe. 26 . The Internet has the added advantage of being able to access the service from any location where Internet is available. Internet trading can take place through order routing systems.
isolated pockets in India are privy to these facilities and the inherent advantages that stem from the Net. The advantage for a late entrant into Internet stock trading will be the presence of a wide array of tested and proven technologies to choose from. And. a minimum investment of Rs50 lakh is essential to start Internet based trading. despite the advantages that exist for later entrants. The objective before the online broker is to execute a large number of transactions from a large client base and a large order book position. Internet-based stock trading is still in its infancy in the country. as also various market information such as the Nifty index. fresh investment in technology will become mandatory as the customer base increases.ALTHOUGH the information technology revolution has reduced distances and created a global village. But. the bank and the depository participant (DP) for executing banking and securities transactions. This terminal gives real-time information on the offers and bids. To start with. technology is a scalable investment. by providing the investor with a trading platform. have been the early birds in Internetbased trading. only a few. after signing an agreement with the Net broker. Thus. early entry will prove to be an advantage rather than a handicap. which enables him to get the trading terminal on his computer. This will be the major challenge for Internet software.IT and Financial Technologies. but as the number of customers grows. an investment of around Rs 5 crore will be required to facilitate trading for around 10. The early entrants would have created their customer base and consolidated their market share. For the broker. Thus. these isolated IT villages have thrown up tremendous opportunities. Something which the early entrant is not privy to. gets a password. as time goes by. The choice then would be between value-added superior technologies and establishing and consolidating the market. This calls for extremely sophisticated and efficient technology and software. they act as an interface between the stock exchange. The client. We at Geojit Securities Ltd.The final test of the efficiency and reliability of these technologies will come when multi-bank and multi-DP interfaces are built with the broker. These technologies offer frontend trading software. volume last traded. providing seamless trading in shares on the National Stock Exchange. Internet-based trading as we have it in India today is an order routing and execution system. Though much more refinement is possible. there is limited choice for early entrants –NSE. 27 . Moreover. at low costs. time is of vital importance. And yet. value addition will become the norm for the existing software. Technology can be upgraded as and when the requirement arises. The efficacy of the bank and DP interfaces is yet to be fully tested in the domestic market . With just two technologies to choose from.000 customers. for the business savvy stockbroker. While it is neither essential nor desirable to upgrade technology until a critical mass is arrived at. rate.
In fact. As Internet trading becomes a reality. The figure on the opposite page illustrates Geojit’s Internet trading model. Here. When the client feeds in the order. the confirmation along with the order number and trade number and time of execution flows back to the client. 28 . The entry of ICICI has also tested available financial technologies and found the brokerbanker-DP interface to be efficient. the system provides a flawless control mechanism. the broker can control the exposure of the client on a real time basis and also fix advance exposure limits on the basis of the deposit with the broker or on the basis of the brokers own credit assessment of the client. in any case. and hence the broker will be in a position to provide value additions. The client can also set up his own market watch of shares in which he has an interest. the interface will develop with enquiries from interested parties. only the major players are likely to survive. early players are not likely to face a shortage of suitors in the form of banks and DP’s.broking united DP. bank and DP. the order goes to the broker’s trading server and from there to the NSE system. has a distinct advantage.quantity and soon. ICICI. is essential when dealing with faceless customers. either on his own or through the software vendor. However. trading is only a logical extension of the computer-to-computer link allowed by the NSE. Later. A broker-bank-DP is the best combination to begin Internet trading. but our experience has shown that it is not mandatory that all three are in position before Internet-based trading commences. The essential component of Internet based trading is the interface between broker. Once the trade is executed. which. With this interface. as competition hoots up and the market gets crowded. In the perspective of overall risk management of the Net broker. with its bank. stock. The trader can set up a portfolio watch so that the value of his portfolio can be updated on a real time basis.
often resulting in frustration. The retail broking business is a mass business activity and a broking company cannot afford to have dissatisfied clients. brokers were hesitant to expand in a big way as there were problems in dealing with unknown clients. and clients who trade through the Net will be able to do it with a lower transaction cost compared to traditional brokers. Traditionally. the biggest motivation to enter Netbased trading bandwagon was this situation. Even if the client goes to the broker’s office. investors have been doing stock transactions with their broker either by placing orders on the phone or by visiting the brokers’ offices. During times of heightened market activity. This trading system helps the broker to expand his business. 29 . the attention he gets on a busy day is based on the size of his order. arguments and disputes. security features can be built in. the broker will be able to do business with many times the number of existing clients. For Geojit. Even after installing 25 telephone lines in the company’s Cochin office. Internet trading is the only solution to this problem and investors will have the facility to trade as and when they want provided they have a Net connection. With just one office in the metro.Advantages to clients Traditionally. investors find it difficult to get the broker on telephone or fax. In this system. the broker will be able to enlarge his client base. I am sure that very soon there will be a differential brokerage system. Without much capital investment. clients still complained that they did not get through. with the broker himself providing the degree of safety he requires.
traffic is so great that either the line is not available or it is frustratingly slow. Really popular. Another serious issue is the efficiency of the Internet infrastructure in the country. and as Net-based trading becomes a reality this interface will develop. At present. bankand depository participant. which affects the speed of execution. seamless settlement of Net transactions and improvement of the Internet infrastructure are of vital importance for exponential growth of Internet-based trading.based trading is the interface between broker. when the client pays an advance deposit. Ease of trading and settlement along with reduction in transaction costs is what investor’s look for in the new system. which will be accessible to the broker through networking. the client is not able to trade unless funds move to the broker physically.Major issues Internet-based trading. The ideal situation is where the client is able to trade on the basis of his deposit in the bank. to become The essential component of Internet. and if there is a sudden fluctuation in the share price. by which time the price would have changed. Hence. During the day. This process takes a minimum of two days. 30 . This prevents the Internet broking community from announcing large-scale reductions in brokerage. bankers and DP’s will have to change their systems to enable seamless settlements. defeating the very purpose of Net-based trading. the broker fixes the exposure limit. In short. should have both seam less whereas now only the former is possible.
When we take into consideration the way transaction risk and cost in the Indian capital market is coming down. there is no cost differential between a trade of Rs 50 lakh and a trade of Rs 5. 31 . and the biggest beneficiary will be the investor. The advent of Internet-based trading in the country will change the face of the capital market very soon.4 million investors with demat accounts in the country.Impact on broking industry The advent of Internet-based trading in the country will change the face of the Indian capital market very soon in terms of the volume of transactions. Internet brokers will announce a flat rate per transaction instead of the present system of calculating brokerage as a percentage of the value. Today. Considering various investor combinations who are holding accounts. we have only 2. the nature and settlement of trade. it will be a rude shock to the broking community unless it changes very fast. and the profile of market participants. which is anything between 200 million and 250 million. This figure is unbelievably small compared to the potential number of investors. When it ultimately gathers momentum.5 lakh active investors now. who will be able to trade with greater speed and transparency. If the system enables the Internet broker to have seamless trading and settlement through the network. we can presume the country has roughly 5-7. as per NSDL statistics. Soon. the biggest beneficiary will be the investor. I personally don’t think many of our colleagues in the business have really understood the impact the Net can have on the broking business. The broker will straight away announce his per-trade broker age in absolute numbers. and at lower costs. The only way to manage this kind of potential growth is to adopt state-of-the-art trading techniques. there will be a massive surge in the number of investors and also in volumes. When this happens. going by the indicators available and the signals for the future. The growth of Internet-based trading as a mass trading technique in the country is unstoppable.
Internet Trading Network 32 .
Trading transactional cycle 33 .
The ticks sent by the exchange can be seen side by side as well as one below the other 34 .Market watch screen The Main Screen of the Internet Trading Platform where we can see the prices that are sent by the exchange.
Buy To buy the selected security / derivatives select File .> Buy or press F1 35 .
> Sell or press F2 36 .Sell To sell the selected security / derivatives select File .
This will show the Pending Orders of the users under the user
The orders that are traded, are shown in the trade book
Net position shows the open positions the person is holding. It shows the brought forward positions, the day’s position and also the positions for carry forward. We can square off the open positions using the Net Position Screen
Margins This screen shows the user deposit and margin that are allocated to the user 40 .
MBP The user can view the Market by Depth by pressing F6 41 .
MARKET TIMINGS • Trading on the equities segment takes place on all days of the week The market timings of the equities segment are: Normal Market Open : 09:55 hours Normal Market Close : 15:30 hours • • The Closing Session is held between 15.50 hours and 16.00 hours Limited Physical Market Open : 09:55 hours Limited Physical Market Close : 15:30 hours 42 .
Spot Trading: This facility can be used only for selling your demat stocks which are already existing in your demat account. Derivatives (Futures and Options) and other financial products. MarginPLUS Trading: Through Margin PLUS you can do an intra -settlement trading upto 25 times your available funds. On selling shares through "cash on spot".com is the most comprehensive website. 43 . When you are looking at an immediate liquidity option. wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle.SERVICES OF ICICI BANK Products and Services A product for every need: ICICIdirect. which is generally done with the intention of taking delivery of shares or monies. Mutual funds. Trading in shares: ICICIdirect.com offers you various options while trading in shares. Margin Trading: You can also do an intra-settlement trading upto 3 to 4 times your available funds. money is credited to your bank a/c the same evening & not on the exchange pay out date. 'Cash on Spot' may work the best for you. BTST : Buy Today Sell Tomorrow (BTST) is a facility that allows you to sell shares even on 1st and 2nd day after the buy order date. Margin PLUS will give a much higher leverage in your account against your limits. which allows you to invest in Shares. Simply put we offer you a product for every investment need of yours. 1. wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. Cash Trading: This is a delivery based trading system. This money can then be withdrawn from any of the ICICI Bank ATMs. without you having to wait for the receipt of shares into your demat account.
Calculate Index and Know your Margin are tools to help you in calculating your margin requirements and also the index & stock price movements. Presently only selected stocks. during the course of the contract life. you make a profit. which meet the criteria on liquidity and volume. The execution can happen at a price more favorable than the price. you take buy/sell positions in index or stock(s) contracts having a longer contract period of up to 3 months. have been enabled for futures trading. This facility is currently available in over 11 major states across India. Limit Order: Allows you to place a buy/sell order at a price defined by you.com.com. 2. In futures trading. you can now trade in index and stock futures on the NSE. which is defined by you. Trading on NSE/BSE: Through ICICIdirect. limit orders can be placed by you during holidays & non market hours too. Market Order: You could trade by placing market orders during market hours that allows you to trade at the best obtainable price in the market at the time of execution of the order. The ICICIDIRECT UNIVERSITY on the HOME page is a comprehensive guide on futures and options trading.Call N Trade: Call N Trade allows you to call on a local number in your city & trade on the telephone through our Customer Service Executives. Trading in FUTURES is simple! If.e. the price moves in your favour (i. 44 . rises in case you have a buy position or falls in case you have a sell position). TRADE IN DERIVATIVES: FUTURES Through ICICIdirect. you can trade on NSE as well as BSE.
HDFC MF. Investing in Mutual funds: ICICIdirect.HSBC MF and Standard Chartered MF are the Mutual Funds available for investment. Sundaram MF. Prudential ICICI MF.Reliance MF. Birla Sun Life MF. on or before a specific date. Franklin Templeton MF. To take the buy/sell position on index/stock options. You can invest in mutual funds without the hassles of filling application forms or any other paperwork. For this. ING Vysya MF. you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment.OPTIONS An option is a contract. Principal MF. 45 .Deutsche MF. Alliance MF. The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price. which is called premium. you have to place certain % of order value as margin. The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price. There is no obligation on the buyer to complete the transaction if the price is not favorable to him. Once you place a request for investing in a particular fund. which gives the buyer the right to buy or sell shares at a specific price. you can create positions under OPTIONS and take advantage of more trading opportunities. With the inclusion of Fidelity MF.com brings you the same convenience while investing in Mutual funds also Hassle free and Paperless Investing.Kotak MF. With options trading. Your bank funds are automatically debited or credited while simultaneously crediting or debiting your unit holdings. By paying lesser amount of premium. You need no signatures or proof of identity for investing. there are no manual processes involved.DSP Merrill Lynch MF. UTI MF. JM MF.Tata MF.com. you can now invest on-line in 19 mutual Funds through ICICIdirect.CHOLA MF. 3. the buyer has to pay to the seller some money.
Sundaram MF.com offers faster liquidity. Tata MF. Transfer-in: You can convert your existing Mutual funds into electronic mode through a transfer-in request.CHOLA MF.com. ICICIdirect. Principal MF. IPOs and Bonds Online: 46 . 4. the period of investment and the frequency of investing and submit. ICICIdirect. Redemption: In addition to giving hassle-free paperless redemption. HDFC MF. JM MF.HSBC MF and Fidelity MF without the hassles of filling application forms. Alliance MF. Systematic Investment plans (SIP): SIP allows you to invest a certain sum of money over a period of time periodically. Switch: To suit your changing needs you may wish to shift monies between different schemes. Get to know the performance of your investments through online updation of MF portfolio with current NAV. Systematic withdrawal plan: This allows you to withdraw a certain sum of money over a period of time periodically. ICICIdirect. You can switch your monies online from one scheme to another in the same fund family without any hassles. Reliance MF. Deutsche MF.You also get control over your investments with online order confirmations and order status tracking.com will do the rest for you automatically investing periodically for you. Just fill in the investment amount. Birla Sun Life MF. Standard Chartered MF . Kotak MF. The money will be credited to your bank account automatically 3 days after the order placement date. Franklin Template on MF. UTI MF. ING Vysya MF. You can redeem the mutual fund units through ICICIdirect.DSP Merrill lynch MF.com offers various options while investing in Mutual Funds: Purchase: You may invest/purchase Prudential ICICI MF.
Track the movement of leading scrips within a sector across 12 sectors using Market@Desktop. which help you. try our Learning Center. Get a snapshot of the latest developments in the markets through the day using Market Commentary. recent IPO listings. 5. Catch interviews.com that shall help you make informed investment decisions. Content Features: There are a host of features on ICICIdirect. Get a glimpse of the performance of various industry sectors through Industry Barometer. Glance through analyst recommendations using Multex Global Estimates. You can get weekly snapshots also. Get in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit the market and analysis on these. Direct Technical Charts offer interactive charting with advanced indicators. Get daily share prices of all scrips. Market Barometer gives you in-depth information of the weightages of shares on Nifty and Sensex. IPO calendar.You could also invest in Initial Public Offers (IPOs) and Bonds online without going through the hassles of filling ANY application form/ paperwork. In case. Equip yourself with our barometers. you are not too comfortable with share trading. Get breaking news from CNBC and Reuters. monthly and yearly high/lows etc through Market Watch. Get a bird's eye view of over 5000 companies at a single click using Company Snapshot. Catch a glimpse of News Headlines through our scrolling Direct News Headlines. prospectus/offer documents. keep on top of the IPO markets. We provide you with the indices of major world markets. nifty futures and ADR prices of Indian scrips. which focuses on fundamental stocks with sound prospects. and IPO analysis are few of the features. 47 . Use Pick of the week. reactions and comments from industry leaders with CEO Call. which is a tutorial on investments and My Research that helps you to research a stock better.
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USA Received 1 January 2003. accepted 1 February 2004. Miami University. Shi-Ming. With this background in mind. The purpose of the research is to highlight the key features of net trading sites across the globe and to identify ‘best of breed’ examples of the features. this paper describes the findings of a research study into the design specification of web-based (net) share trading sites. Available online 6 May 2004. UK Available online 9 March 2000. Yu-Chung Department of Information Management. Abstract Given the rapid increase. Kevin Keasey and Kevin Littler The International Institute of Banking and Financial Services. over the past couple of years.Miami. Abstract With the influence of the Internet booming and global competition expanding.1. Among all EC applications. Currently. the paper offers the first comprehensive review of the types of features that are available on net trading sites across the globe. The research is based on the latest available literature and a review of the majority of the sites across the globe. This study had scrutinized 16 factors that are related to affect brokers' decision 50 . The University of Leeds. Robert Hudson. National Chung Cheng University. Internet-based stock trading is really one of the best ways to understand the attraction and popularity of EC. of share dealing services available on the web. most people in this new era are thinking about whether or not EC could bring unlimited business opportunities and new competitive advantages. The purpose of this paper is to figure out the decision factors that affect the brokers in Taiwan in adopting an online stock trading system. Leeds LS2 9JT. Taiwan Department of Decision Sciences and Management Information Systems. 2. E-Commerce (EC) is receiving considerable attention worldwide.
revised 15 June 2004. this study provides some useful suggestions and/or implications for the academician. Abstract This study presents a decision model using the real options approach (ROA) for evaluating the entry or exit of the Internet securities trading business in the face of both technological and economic uncertainties.in adopting an online stock trading system. 3. Received 9 April 2003. Taiwan. Graduate School of Management. Furthermore. Further. accepted 9 July 2004. Additionally. this study considers the effect of uncertainty and the added profits after establishing electronic securities trading system (ESTS) to determine the optimal threshold for implementing the entry/exit project. and practitioners in the area of online stock trading. Available online 26 October2004. the results from this research also indicate that five decision factors significantly distinguish the adopters from the non-adopters in terms of the brokers' decision to adopt a stock trading system. the differences between the real options approach and the net present value method are discussed. In addition. government. Ming Chuan University. 51 . Numerical analysis of the Taiwan stock market using the real options approach is more consistent with the observed entry/exit data than similar analysis using the net present value method for supporting the entry/exit decisions in the face of uncertainty.
(2) to provide an overview of Electronic Communications Networks (ECNs) and existing regulations and (3) to discuss the impact of SEC regulation reform on trading structures. No. Mahmood Shah: School of Information Systems.1 pp. Computing and Mathematics. International Journal of Business Information Systems 2007 . An overview of online stock trading: history. Ray J. The aim is to provide a review of relevant issues within online stock trading and subsequently form a research agenda. challenges and the impact of the SEC regulation reform on trading structure Haroun Alryalat.74 Abstract This paper discusses the impact of US Securities and Exchange Commission (SEC) regulation reform on online and traditional trading structures. U. To achieve this aim the following objectives are set: (1) to describe the current state of online trading.4. characteristics. 58 . 2. opportunities. Paul.Vol.K. In doing so this paper will provide insights into how ECNs are used and how their growth and development are affected by the SEC regulation reform 52 .
The criterion for doing Investment through Internet is that it should be present in all areas.RESEARCH DESIGN Fundamental to the success of any formal project is a sound research design. A good research design has the characteristics. This project is particularly linked to Internet trading of securities and it is done to evaluate investor’s awareness towards Internet trading so it will help National stock exchange to get an overview about investor’s intentions. It is a blueprint that is followed in completing a study.. 3. sources of awareness. loyalty.2 Objectives of the study Objective setting is the initial stage or starting point of any project to be undertaken. research methodology. viz. • Investor’s awareness regarding Internet trading of securities has to be evaluated with respect to their awareness level of preference. investment power. services they avail. The objectives of this project are:54 . objectives of the study.1 Statement of the problem The statement of the problem is. It is essential to know what objectives mean literally or from the study point of view. “To measures the present level of awareness among the investor’s regarding ‘‘Internet trading of securities”. The functions of a research design are to ensure that the required data are collected and they are collected accurately and economically. importance of the study and finally the limitations of the study. 3. scheme of the study. A research design is purely and simply the framework or plan for a study that guides the collection and analysis of data. • In addition to the above mentioned factors investor’s perception has also to be evaluated on the parameters that influence them most for going for internet trading is satisfaction towards services. statement of the problem. frequency of visit.
This chapter also contains tables. To measure the present level of awareness among the investors regarding Internet trading in Jalandhar city. Scheme of the study. Suggestions and Conclusion”. Chapter 2 “Review of literature. 3.1. In this chapter each of the objective is 55 . the importance of the study and finally the limitations inherent in the project. 2. Each table or chart is followed by a detailed summary interpreting that. 3. Research methodology. charts and graphs.it gives brief dicription about the Indian capital market. Chapter 5 “Findings. In this chapter various statistical tools that has been used to analyze and interpret the collected data has been mentioned. which deals with the research design. To broadly access the awareness of investors about the companies who are dealing in Internet trading of securities. This section deals with the Statement of the problem. Chapter 3“Research Design”. fieldwork that has been carried out.3 Scheme of the study The entire study is divided into four chapters. To determine various attributes that influences investors the most for going Internet trading. 4.2 A brief description of the project undertaken. but in a different configuration: Chapter 1 “Introduction” Includes literature on the topics 1. data collection methods and sampling techniques that has been used.1 An overview of Indian Capital market. The study objectives are kept in mind while analyzing and interpreting presenting results. To identify the future trends and expectations of investors for Internet trading. Objectives of the study. 1. Chapter 4 “Analysis and Interpretation”.
is included in the appendices for those readers who want to go in depth of certain aspects of the research work. Suggestions from my side to the beauty industry are also given in this section. The information. 56 . which includes – The Questionnaire.considered and findings are concluded in view of that. which is not directly related to the main body of the research report.
The Structured-Undisguised type of questionnaire has been used to collect the information. 57 . Survey method was adopted for collecting primary data. Data Collection Method After identifying and defining the research problem and specific information required solving the problem. Most of the questions are close ended while few are kept open ended. These are (1) primary data and (2) secondary data. books.1st in the questionnaire. magazines. beliefs. Before collecting primary data. secondary data was collected. which will yield the desired results. A copy of Questionnaire used is attached in the Appendix. Companies undertake them to learn about people’s knowledge. sampling plan and the fieldwork to be carried out. It was collected from exchange’s profile. Two types of data are available to a researcher. websites and other periodicals. Type of Research Design Descriptive type of Research Design has been used in this study. Survey research is a systematic gathering of data from respondents through questionnaires. There are in total eight questions in the questionnaire. data collection methods. preferences and satisfaction. Surveys and Field studies are best suited for descriptive research. Their significance with respect to the objectives is as follows: • The first objective is to evaluate the percentage of respondents investing in share market in Jalandhar is accomplished by question no. the next task was to look for the type and sources of the data.Research Methodology This section deals with the type of research design. This process of secondary data collection is also called desk research.
evaluating for how long investor’s doing internet trading & how many accounts they have can be analyzed specifically from question no.7th. • • • • Sampling plan After deciding on the type of research design and the data collection method.• The second objective of accessing the way through which investor’s invest in market is accomplished by question no.6th. Samples were taken from different companies like India bulls who are dealing in Internet trading. 5th. Sixth objective of evaluating that what kind of problems are faced by investors while using Internet trading. 58 . the next step was to design the sampling plan. It can be analyzed by incorporating question no. Sampling Size: How many people were surveyed? In total 100 respondents were surveyed. Sampling design: How were they selected? Convenient sampling was used for conducting this survey. Samples were taken as such so that they can cover almost every section of Investor’s so that there is less biasness. Fifth objective of studying that why investors prefer Internet trading over to online trading is analyzed specifically by question no. Fourth objective of accessing the awareness of investors about the companies who are dealing in Internet trading is accomplished by question no.e. This plan calls for following decisions: Sampling Unit: Who were surveyed? Only Investor’s of different age groups in Jalandhar were surveyed so that a better idea about their perception can be generated. 3rd 4th.2nd Third objective i.
Criteria of selection: how Investor’s were selected? For Internet trading of securities: only those companies were selected who are dealing in Internet trading. 59 . Apart from the questions in the questionnaire. Personal interview is the most versatile method. For respondents: male and female both respondents who are investing in securities and who themselves avail the services. This criterion was used so that a perfect idea about which mode of Investment & respondents are to be selected can be generated which can lead the project in accurate direction. other suggestions by the respondents were also encouraged during the visit. The respondents were contacted personally. The respondents were asked questions and responses were noted.
It will help companies to focus on the major factors that customers consider for investment. how frequently they invest.e. 4 To understand the effectiveness of their advertising mediums so that they can concentrate on the medium which is more effective and can counter their weaknesses to penetrate the market effectively. in Jalandhar City.5 Importance of the study This project will help 1 To understand the Investor’s perception i. It will help to generate a view about what investors actually want.3. preference. loyalty. what services they actually avail. their consciousness about Internet trading. and whether they are satisfied with the services that are currently provided to them so that any flaws if found can be treated. 2 Since investors are the ultimate target of any company thus by getting a view about their perception an idea about the trend that is going on in the market could be generated & marketing strategy could be developed accordingly. 60 . their awareness. their expenditure behavior. and for what major services they go. 5 6 7 To understand that whether investors are loyal to companies or not so that such strategies could be made such that they can be made loyal. 3 Since this study is not linked to any specific company so it will help to get a general view of investors towards Internet trading companies that are present in Jalandhar without any biasness.
2. The accuracy of the data depends upon the willingness and the honesty of the respondents & unwillingness of few respondents to tell truth may create biasness in results. change in trends. 61 . sample size has been restricted to 100 only thus it can be generalized for a larger population. Some of these limitations in this study are: 1. The relevance of this study is short term.3. 3. interest. and knowledge of the general public etc.6 Limitations There are always some limitations in every endeavor that any person undertakes. Due to limited time span and funds. As the time lapses the authenticity of the study may decrease due to changes in the various determinants i.e. The sample is more a representative of Jalandhar city which may be biased as compared to other areas. 4. change in the level of awareness.
coded and tabulated. 1st: It was general question as in this question respondents were asked about that wheather they are investing in share market or not? TABLE NO. the primary data which was collected by personnel interviews. 4.1 How many investor’s invest in share market. was edited. Analysis of question no. It was done because the data was scattered in questionnaire.Before Analysis and Interpretation. Investment in share market YES NO RESPONSE 90 --- TOTAL 90 90 Graphical representation of table no. Statistical tools that has been used for data analysis is Percentages and total values to organize and summarize the data in order to increase the usefulness of the results in such a manner that it helped me to relate the critical points with the study objectives. Out of total 90 respondents following table shows wheather they invest in share market or not. 4.1 is as follows: - 100 80 60 40 20 0 YES NO DO YOU INVEST IN SHARE MARKET 63 .
Analysis of question no.2 is as follows: - AWARE 10 52 28 60 50 40 30 20 10 0 TERMINALS INTERNET BOTH HOW DO YOU INVEST Thus it was concluded from the data that the most effective medium of investment is internet 57. This question was specially designed to know that how many investors are aware of Internet trading. This question is specifically asked from those respondents who are investing in the share market.It was concluded from the analysis that 100% of the respondents were investing in the share market. 2nd It was an important question according to the study conducted as here respondents were asked that how they invest in the share market.11% investors are those who are 64 . 4.2 Mode of investment in share market Following table represents data of 90 respondents SOURCE Terminals Internet Both Graphical representation of table no.4.77% investors are aware of internet trading and only 11. TABLE NO. So the ratio of this response is 100%.
3 FOR HOW LONG INVESTORS BEEN DOING INTERNET TRADING OPTIONS Less than 6 months 6 months. 4th: - 65 .1 year 1 year – 3 years 3 years & above RESPONSE 24 28 22 6 TOTAL 90 90 90 90 Graphical representation of table no. Analysis of question no. TABLE NO. 4.11% investors are doing investment from 6 months to 1 year and only 6. 11.3 is as follows:35 30 25 20 15 10 5 0 <6 MONTHS 6 TO 12 MONTHS 12 TO 36 MONTHS > 36 MONTHS HOW LONG HAVE YOU BEEN DOING INTERNET TRADING It was concluded from the above data that 31. Analysis of question no.11% investors are those who preferred both the modes of investment. 4.11% (10 respondents) investors are those who are investing through terminals so they were not eligible for this question and further questions.still investing through terminals and the 31. 3rd This question was designed to know for how long investors doing Internet trading.66% investors are those who are dealing in market through internet from more than 3 years.
No one have more than three accounts. 4.4 is as follows: 60 50 40 30 20 10 0 1 2 3 4 >5 HOW MANY INTERNET TRADING ACCOUNTS YOU HAVE It was concluded from the above data that the most of the investors have only one Internet trading account I. 4. 66 . OF ACCOUNTS One Two Three Four Five or more RESPONSE 52 24 4 0 0 TOTAL 90 90 90 90 90 Graphical representation of table no.77% and only 4. 4th was an important question as in it respondents were asked about that how many Internet accounts they have? TABLE NO.4 HAVE TOTAL NUMBER OF INTERNET ACCOUNTS INVESTORS NO.Question no. . TABLE NO.E 57.5 AWARENESS ABOUT THE COMPANIES WHO ARE DEALING IN INTERNET TRADING.44% investors are having three accounts. 4.
It was concluded that 68.6 PREFERENCE OF INVESTORS FOR INTERNET TRADING TO ONLINE TRADING.COM MOTILALOSWAL.COM AWARE INVESTORS 24 34 62 10 20 00 Graphical representation of table no. 67 . TABLE NO.COM INDIAINFOLINE. In this the awareness about the companies are followed as indiabulls >indiainfoline>sharekhan>motilaloswal>angelbroking>aolbroking.5 is as follows: - 80 60 40 20 0 SHA REKHAN INDIA B ULLS M OTILALOSWAL AWARENES S ABOUT THE C OMP ANIES WHO ARE DEALING IN INTERNET TRADING.NAMES OF COMPANIES SHAREKHAN.4.COM INDIABULLS.COM ANGELBROKING.COM AOLBROKING.88% of the respondents were aware of indiabulls. Not even a single investor is aware about the aolbroking company most of the investors traded trough indiabulls. 4.
6is as follows 60 40 20 0 ON SPOT TRADING CONVINIE NECE According to analyzed data it was found that major part of the 51. 7th: This question is formulated to know that what kind of the problems does investor’s faced while using Internet trading. . 4.REASONS On the spot trading Easy to operate Convenience Transactional security ROSPONSE OF RESPONDENTS 32 40 46 10 Graphical representation of table no. TABLE NO. 68 TRASACT IONAL SECURITY EASY WHY DO YOU PREFER INTERNET TRADING TO ONLINE TRADING.11% investors preferring Internet trading to online because of convenience and 44.7 PROBLEMS FACED BY INVESTORS WHILE DOING INTERNET TRADING. Number of the investors using it because of it provides on the spot trading facility and the high transactional security to the investor’s fund. Analysis of question no. 4.44% investors using it because it is easy to operate.
PROBLEMS Network problem Slow speed Transactional security Freezing of market Hanging of system Other RESPONSE OF RESPONDENTS 28 50 8 10 24 2 Graphical representation of table no.7 is as follows:- PROBLEMS FACED WHILE INTERNET TRADING 60 40 20 0 NET WORK SPEED TRASACTIONAL SECURITY MARKET FREEZING HANGING other According to the analyzed data it was clear that most of the investors facing the problem of slow speed of the transaction because number of investors are using the same site for trading at a time.11% investors and 26. 69 . 31. 4.66% investors facing the problem of network and hanging of the system because the files are too heavy on the net. Number of investors also facing the problems of transactional security and freezing of the market.
findings are as follows: 1. In this the awareness about the companies are followed as indiabulls>indiainfoline>sharekhan>motilaloswal>angelbroking>aolbroking. 6. It is easy to operate and transactional security is much higher in Internet trading.88% of the respondents were aware of indiabulls. 57. It was found that trading trough Internet is much convenient than to online. It was found that the most of the investors doing trading through one Internet account only.11% investors and 26. It was found that most effective medium of investment is Internet.e. 55. 4. It was found that 100% of the respondents were investing in the share market. 3. 70 . 2.55% facing the problem of slow speed.11% investors are those who are still investing through terminals and the 31.1%. 5. It was found that 31.77% investors are aware of Internet trading and only 11.Findings This part of the report contains an assortment of the entire analysis considering the objectives given in the beginning. The percentage of having more than one account is only 31. Number of investors also facing the problems of transactional security and freezing of the market.11% investors are doing investment from 6 months to 1 year and only 6. It was found that 68. 11.66% investors facing the problem of network and hanging of the system. From Analysis and Interpretation.11% investors are those who preferred both the modes of investment. It was clear that most of the investors i.66% investors are those who are dealing in market through internet from more than 3 years. No.11% (10 respondents) investors are those who are investing through terminals. Of the investors traded trough indiabulls. 31.
Now it is very much easy for investors to trade in shares because they can trade by use of internet from anywhere. Now with introduction of internet trading almost every broker is offering the services of trading through internet. But not much of people aware about benefit of internet trading. Then came the online trading now trading was done through a single platform like BSE-Bolt. So there is large scope of internet trading. In the past trading was done by auction system so it was difficult to attract large number of investors.Conclusion In the whole world trading in security market is increasing at a rapid rate so in India numbers of investors are increases at rapid rate. 71 .
000-20. C. employee Any other (please specify) E. MONTHLY INCOME: • • • 0-10.YOUR CONCERN WILL BE HIGHLY OBLIDGED. DAV COLLEGE JALANDHAR CONDUCTING A SURVEY ON “INTERNET TRADING OF SECURITIES AND ITS INCREASING TREND. OCCUPATION: • • • • Student Businessman Govt.000-40. PHONE NO. I SUNIDHI GUPTA. NAME B. PERSONAL INFORMATION A. AGE GROUP: • • • 20-30 30-40 Above 40 D.INTERNET TRADING OF SECURITIES AND ITS INCREASING TREND A SURVEY OF JALANDHAR CITY. .000 10. STUDENT OF MBA AT GNDU.000 73 .” KINDLY ANSWER THE FOLLOWING QUESTIONS.000 20. REGIONAL CAMPUS. YOUR RESPONSE WILL BE KEPT CONFIDENTIAL AND USED FOR ACADEMIC PURPOSE ONLY.
• Above 40.000 QUESTIONNAIRE 1Q: Do you invest in share market? • • Yes No 2Q: How do you invest? • • Through terminals Through Internet 3Q: For how long have you been doing Internet trading? • • • • Less than 6 months 6 months.1 year 1 year.3 years 3 years and above 4Q: How many Internet Trading accounts you have? • • • • • One Two Three Four Five or More 5Q: Which companies are you aware of who are dealing with Internet Trading? • Sharekhan.com 74 .
com Angelbroking.com 6Q: Why do you prefer Internet trading to Online trading? • • • • On the spot trading Easy to operate Convenience Transactional security Any other___________________________________________________________ 7Q: What are the problems faced while using Internet Trading? • • • • • Network problem Slow speed Transactional security Freezing of market Hanging of system Any other 8Q: Recommendations to solve the above problems.com Motilaloswal. 75 .com Indiabulls. Thank you for your valuable time.com Aolbrooking.• • • • • Indiainfoline.
..com www. and Gruber M. Modern Portfolio Theory and Investment Analysis. William.com www. • WEBSITES • • • • • www.com www. seventh edition.sciencedirect. 2004. Eastern press (Bangalore) Pvt. New Delhi. Vikas Publications.bseindia. Publishers. Prasanna.net www. fourth edition. 1997. Reprint 2003.indiabulls. Financial Management. Tata McGraw Hill.indiainfoline. 1999. Zikmund.nse-india. Ltd.com www. • Elton E.com www.. Singapore: John Wiley and Sons.kotaksecurities.sharekhan. • Malhotra. 1997. Publishers. Pandey. N. Business Research Methods.oznetlaw.com www.J.K.com • • • • • 76 . I.com www.moneycontrol.com www. New Delhi. Marketing Research: An Applied Orientation. 5th edition. Financial Management: Theory and Practice.M.Bibliography BOOKS • Chandra. Ltd. Pearson education (Singapore) Pvt. J.icicidirect.
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