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PROJECT REPORT

ON

“Future of online Share trading and
The Growth of Internet in India”

Submitted to Guru Gobind Singh Inderprastha
Univerisity in the partial fulfillment of the Degree

Of

MASTER OF BUSINESS ADMINSTRATION

UNDER GUIDANCE OF SUBMITTED BY:

NITIN DHIMAN
Mr. DEEPAK ARORA

ARMY INSTITUTE OF MANAGEMENT AND TECHNOLOGY
PLOT NO. M-1,POCKET P-5,
DISTT. GAUTAM BUDHNAGAR,
GREATER NOIDA.
U.P.

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Certificate
This is certify that Nitin Dhiman of MBA , student of Army Institute of Management and
Technology has successfully completed his project titled
“Future of online Share trading in India and The Growth of Internet”
Under my supervision. This project is an original piece of work and has not been copied from any
other source. It further certifies that this project has not been submitted to any other company/
University for any other purpose.

Dated: Mr. Deepak Arora
(Project Guide)

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INDEX PAGE NO.
ACNOWLEDGMENT 4
PREFACE 5
EXECUTIVE SUMMARY 6
ASTRACT 7-8
1. Introduction 9-11
1.1Objectives 12
1.2Methodology 13
2. Company Profile 14
2.1companyDetails 15-25
3. Growth of Internet 26-29
4. About Online share trading 30
4.1 Facts about online trading 31
4.2 Indian Scenario (SWOT Analysis) 32-34
4.3 Investing advices 35-36
4.4 Hurdles for online share trading 37-38
5. Different Competitors 39-40
5.1 Unicon Securities 41
5.2 Icici Securities 42
5.3 India bulls 43-44
5.4 Kotak securities 44
6. Account opening Requirements 45-46
6.1 Documents required 47
7. Analysis of the market research 48-70
8. Limitation 71
9. Conclusion 72
10. Annexure 73-74
11. Bibliography 75

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DEEPAK ARORA. His meticulous attention and invaluable suggestions have helped me in simplifying the problem involved in the work. ACKNOWLEDGEMENT I express my sincere gratitude and thanks to hon’ble. Mr. I would like to thank the management of Army institute of Management and Technology for their kind guidance and help at every step of the project. I would also like to thank the overwhelming support of all the people who gave me an opportunity to learn and gain knowledge about the various aspects of the industry. Under his brilliant untiring guidance I could complete the project being undertaken on the “Future of online Share trading in India and the growth of Internet” successfully in time. Yours Truly NITIN DHIMAN 4 . I am also thankful to my friends for helping me in many ways Last but not the least. for whose kindness I Got the opportunity to undergo on the Research project at Religare securities ltd.

Interviews and Presentations). the various requirements for opening share trading accounts and finally the analysis of the market Research done by me. It also highlights the limitations of share trading in India . an executive summary about the work undertaken by me and the procedure followed. and Direct Marketing in the Chandigarh region where my Branch was located. The report also tells in detail about online share trading.In the end I have summed up the entire project with a conclusion that I have derived from my experience about online share trading 5 . PREFACE Theoretical knowledge is of no use. It lays down the stress on the proper implementation of the theoretical knowledge into real life practical aspect. The report contains first of all. The report also tells in detail about the profile of the company. Thus to apply all theoretical knowledge gained so far on practical field. different competitors in the market. Tele Marketing. I have undertaken on the job research project titled as” future of online share trading in India and growth of internet”. throws some light on the growth of Internet in India that is an essential part of share trading.The introduction part highlights the objective and the methodology followed. Then follows a small abstract of each section covered by me . I have done the project by applying various marketing tools like Marketing Research (Questionnaire design. until & unless it is applied into some practical aspects.

6 . I did follow Market Research. I examined thoroughly all the areas such as the number of players. Product and Services they are offering. the prices they charge for there services. the presence of the players in the market & how they market their services etc. EXECUTIVE SUMMARY The work executed by me had an object oriented and realistic approach towards the online share trading scenario in India as well as covering the globe by and large. A brief profile about the organization was also intimated to each and every respondent in order to increase the popularity of RELIGARE. Tele marketing and direct marketing procedure to get an extensive idea about the general perception in the mass when online share trading is considered. To acquire customers in favor of RELIGARE was also an integral part of the job. I covered Chandigarh and its adjoining Areas for this purpose. whether this is appealing to the common people or not. precisely speaking economic giants. there is no doubt about that. Taking into Considerations all the above facts It can be concluded that in due course of time. The next phase was all about to have an Overall look in this field of online share trading. Indian online share trading will find its hold.

It also gives little insights into what company offers to the Corporate and the Consumers. when it came into existence. This section tells in detail about the company. this section describe in detail about the various factors that an investor should keep in mind before opening an online trading account. ABSTRACT To maintain and cope up with the growing competition from the various online trading providers.Difference between the numbers of users who do share trading with Internet with those who do trading without Internet. About online trading Since the project leads to opening of online trading account. The project is also being done to train the people about the whole procedure essential to open an online trading account couple with Demat account. The project will help in exploring the area where there is the feasibility of acquiring more new investors. The report is divided into various sections 1. 2. Religare needs to find the potential customer and also target the new investors. Its objective is to find out whether online trading is being accepted on large scale by the people or not. what are its mission. visions and goals etc. 7 . 3. It would also help in knowing the various competitors of the industry and exploring the areas through which competitive advantage could be obtained. This section also describes the swot analysis done by me highlighting the strength. Company Profile: This part describes the profile of the company. This section also describes the kind of technology used. who the members of its management team. The project is being done to comment on the future of online trading in India. Growth of Internet This part will describe about the number of Internet users. which has developed over the years with growth of Internet.

This section gives the detail of the different conditions that have to be met for opening a trading. The investing advices given on daily bases to the active clients are also highlighted in the project . The section contains the documents. This section gives the detail of the different competitors and different services provided by them. which are required to open the various accounts. 8 . 7. and opportunities and threats that online share trading have in Indian market. Procedures and requirement for opening a Trading. Then I have compared there services with our services.weakness. 5. 4. 6. Demat & Fund account. Different competitors in online trading. It also highlights the various hurdles for online share trading in India. demat and Fund account. Different formalities for opening demat account This section throws some light over different document as well as hardware and software requirement for opening of online trading and demats account. Analysis of the survey conducted on online trading in India This section tells you about the analysis which is conducted for online trading.

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Today companies provided all information on a company website or make own software. 10 .INTRODUCTION Today scenario Online Share Trading in Stock market is mainly not in used by every one. monthly magazine etc through Internet. They invest their money through Internet. Till now mostly customers are working with offline but in major cities Online Share Trading is preferred because no one have much time to go to market and work with offline. thefts and paperwork. They do not go to broking house. Online Share Trading is safer and faster alternative to the offline Share Trading as it offers a freedom from delays. All process is done automatically in a few seconds. These reports help investors for investing in securities. Online Share Trading is beneficial for customer as well as company because in online customers need not to take much pain for investing money in a market. BASIC CONCEPT In Online Share Trading investors invest their money in stock market through online. So Online share Trading is much better than offline share trading. So Online Share Trading is quick. Investors can fetch these information’s through online. Investors buy or sell their securities in a few seconds by clicking a mouse. Online Share Trading is very less time consuming and expensive. convenient and efficient. Companies provided research reports.

THE FLOW CHART BELOW DESCRIBE BROADLY WORKING OF ONLINE SHARE TRADING Dealing Terminal Opening Client Account Creation Execution of Upfront Margin Collection orders/rms Post trade Pay in Pay out 11 .

1PROJECT OBJECTIVE I had taken the task of predicting the future of online share trading in India & the growth of Internet as a part of the curriculum.1. Demat and Fund Accounts in order to get a deep insight as to how the Organization actually performs these functions. 12 . It also helped me to. By this we are able to make a chain of the customers which expands as we satisfy there needs. This also helps us to multiply our clients by getting the further references. It will help me • To know the awareness for online trading among respondents • To determine the investors perspective and there responses towards online equity trading • Find out Customer satisfaction and acceptability of online trading B) Customer Acquisition through sales of Trading. • Act as an equity advisor while the investor makes decision to invest in equities • To provide better investment solution to equity investor We have to be in regular contacts with our clients so that we come to know about the problem they are facing. The entire project was divided into two parts: A) Conducting Market Research in various parts of the city in order to get statistical data for commenting on the future of online share trading in India & the growth of Internet.

41.2METHODOLOGY Methodology for Market Research I divided the entire city into zones and drew out samples out of each zone. 26. 45Industrial area-phase-1&2 21 East SECTOR-7.40.24. These were later analyzed to draw out conclusive results. Also. The Research Area Comprised of the following places: Zone Areas Covered Sample Size North SECTOR-9.34.43 18 Central SECTOR. For e.36 41 And some parts of Panchkula and Mohali have also been taken for the research work.1.21.35. 38.22.11 9 South SECTOR-44.28 15 West SECTOR-37.27. 13 .. 8.23.g.42. the office areas consist of people from the business class who have always been in the hunt for quick money.39. an area like Shopping mall. This is because Office employees constitute the service sectors who are the active investors of today.18.19.10. The size of samples drawn from each zone depended on the prospective ness of the particular area.20.15.17. not to forget that smart and timely investment in the share market can yield you enormous returns. if a particular research area consisted of Offices then the sample size would obviously be higher than. After dividing the city into zones.16. the Target audience was probed using Interviews and questionnaires.

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the group has also started expanding globally and has acquired London’s oldest brokerage & investment firm. Backed by a blue chip promoter pedigree and a proven track record. Australia’s leading financial services provider for a Wealth Management joint venture. REL’s businesses are broadly clubbed across three key verticals. It has also partnered with Vistaar Entertainment to launch India’s first film fund*. All employees of the group ceaselessly strive to provide financial care driven by the core values of diligence and transparency. Following this acquisition Religare now proposes to operate out of 10 countries. 15 . the Retail.COMPANY DETAILS INTRODUCTION Religare Enterprises Limited (REL). The vision is to build Religare as a globally trusted brand in the financial services domain and present it as the ‘Investment Gateway of India’. one of the global leaders to launch Life Insurance and Mutual Fund products in India and with Macquarie. catering to a diverse and wide base of clients. Institutional and Wealth spectrums. REL offers a multitude of investment options and a diverse bouquet of financial services and can boast of a rt seach thapreads across the length and breadth of the country with its presence in more than 1460 locations across more than 450 cities and towns. As part of its recent initiatives. Hichens. Religare has successfully partnered with Aegon. Harrison & Co Plc. is one of the leading integrated financial services groups of India.

98 Cr.00 Registered & Corporate Office Registrar & Share Transfer Agent 19. . New Delhi. NSE 30/01/1984 29/10/2007 Recent News And Analysis Date Headlines 30/06/2008 Religare Enterprises . Plot No. .Results Press Release 26/06/2008 Religare Enterprises Board recommends dividend 24/06/2008 Religare Enterprises clarifies on news item 2. Delhi . Andhra Pradesh. 10. Email: investorservices@religare. 17-24.in Tel: 23420818. . Nehru Place.110019 Karvy Computershare Private Ltd Tel: 30815100/66552200. Fax: 30815288. .General BSE Code : 532915 Book Closure : 20/09/2008 : Ranbaxy Group NSE Code : RELIGARE Market Cap : Rs. COMP ANY PROFI LE Industry : Finance . Hyderabad . Vittal Rao Nagar.500081. Group ISIN No : INE621H01010 Market Lot : 1 Face Value : Rs. Madhapur. 23420824 Website: www. 2982. 16 .religare. Mission To provide financial care driven by the core values of diligence & transparency.in Key Officials Name Designation Malvinder Mohan Singh Chairman / Chair Person Sunil Godhwani Managing Director & CEO Ravi Batra Company Secretary and Compliance Officer Other Details Listings Incorporation Public Issue Date BSE .Allotment of Equity Shares under ESOS 28/06/2008 Religare Enterprises fixes Book Closure for Dividend & AGM 27/06/2008 Religare Enterprises .

Shetty . Sunil Godhwani .W.Alternate to Mr.Group Chief Finance Officer.Deepak Ramchand Sabnani . Shivinder Mohan Singh . Harpal Singh .Non Executive Director Mr.Group Chief Operating Officer. J.J.Independent Director Mr. Sunil Godhwani . Religare Enterprises Limited Mr. K. R. Balani .Religare Enterprises Limited Mr.Independent Director Mr.Padam Bahl .Independent Director Mr. W.3.Independent Director Mr.P. Anil Saxena. Shachindra Nath . Vision To build Religare as a globally trusted brand in the financial services domain and present it as the ‘Investment Gateway of India’.Bhalla .Chairman (Non Executive) Mr. Malvinder Mohan Singh .CEO & Managing Director. Balani Capt. Deepak Sabnani 17 . Religare Enterprises Limited Mr.S.G.Non Executive Director Mr.Alternate to Mr. Religare Enterprises Limited Board of Directors . 4.CEO & Managing Director Mr. Baldev Singh Johal . MANAGEMENT TEAM Mr.

Impeccable attendance rates and employee longevity are also recognized and bonuses paid accordingly. Religare has a career development program in place. We have adopted an extremely positive HR policy that ensures the best possible results through effective pre-induction and post- induction of personnel and imparting of requisite training Retention In order to get the best out of its employees and retain them in a high attrition rate industry. Employees are also encouraged to upgrade their skills from external sources if these skills are relevant to their current profiles. which are among the top tier of industry earnings. Training 18 . are complemented by performance-based incentives. These salaries.5. Religare believes that recognition programs are vital to maintaining the highest levels of motivation. Career Development For promising employees. Employees ready to take on higher responsibilities are identified and relevant training is imparted upon them. Religare has established a number of attractive schemes and incentive programs for its employees.Human Resources Relgare prides itself on being an employee friendly company. All employees are full time salaried employees. HR INITIATIVE Processes .

Religare adopts a scheduled training process and a modular approach for imparting theoretical and practical knowledge in its trainees. and IPO's also. they have the advantage of having all kind of Insurance & Investment Advisory Services for Life Insurance. Religare is a customer focused financial services organization providing a range of investment solutions to our customers. Shadowing Process. Our personalized approach enables clients to achieve their Total Investment Objectives. Training Schedule Employees. as we understand the need of transactions to be executed with high speed and reduced time. Our key product offerings are as follows 19 . Lecture Debates. which covers technical enhancement and orientation in cross cultural sensitization. Mutual Funds. which is tailor-made to the client's requirement Training Tools Religare's trainers make use of a wide variety of training tools and applications to make the learning process both fun and interesting. General Insurance. Tools and methodologies used include Discussions. At the same time. Our clients have the opportunity to get personalized services depending on their investment profiles. on being hired. Movie Clips. The induction training is followed by process specific training. We work with clients to meet their overall investment objectives and achieve their financial goals. Assignments. and Reading exercises Religare customers have the advantage of trading in all the market segments together in the same window. go through an intensive induction-training module.

Client Interface Retail Spectrum- To cater to a large number of retail clients by offering all products under one roof through the Branch Network and Online mode Equity and Commodity Trading Personal Financial Services Mutual Funds Insurance Saving Products Personal Credit Personal Loans Loans against Shares Online Investment Portal Institutional Spectrum- To Forge & build strong relationships with Corporate Client and Institutions Institutional Equity Broking Investment Banking Merchant Banking 20 .

Traditionally.000 three-leaf clovers found. alike. This name Religare was chosen to reflect the integrated nature of the financial services the company offers.To provide customized wealth advisory services to High Net worth Individuals Wealth Advisory Services Portfolio Management Services International Advisory Fund Management Services Priority Client Equity Services Arts Initiative BRAND IDENTITY Name Religare is a Latin word that translates as 'to bind together'. Transaction Advisory Corporate Finance Wealth Spectrum . The first leaf of the clover represents Hope. The aspirations to succeed. Each leaf of the four-leaf clover has a special meaning in the sphere of Religare. a rare mutation of the common three- leaf clover. The name is intended to unite and bring together the phenomenon of money and wealth to co-exist and serve the interest of individuals and institutions. it is considered good fortune to find a four leaf clover as there is only one four-leaf clover for every 10. Symbol The name is paired with the symbol of a four-leaf clover . The dream of 21 .

Hope. It is the beginning of every step and the foundations on which a person reaches for the stars. Pronunciation rel•i•ga•re (rel'i-gâir) 22 . Care. The fourth and final leaf of the clover represents Good Fortune. The truth of feeling that underlines sincerity and the triumph of diligence in every aspect. becoming. Of new possibilities. To accomplish a given goal with the balance that brings satisfaction to all not in the binding but in the bond that is built. From it springs true warmth of service and the ability to adapt to evolving environments with consideration to all. All elements perfectly combine in the emblematic and rare. Accent usage The diacritical tilde mark ( ˜ ) over the letter A in the Religare typeface indicates a palatal emphasis sound of the letter A. The second leaf of the clover represents Trust. The third leaf of the clover represents Care. The ability to place ones own faith in another. The secret ingredient that is the cement in every relationship. Trust. To have a relationship as partners in a team. four-leaf clover to visually symbolize the values that bind together and form the core of the Religare vision. Good fortune. Signifying that rare ability to meld opportunity and planning with circumstance to generate those often looked for remunerative moments of success.

NEW INITIATIVES Religare Capital Markets Limited. wants and desires of today’s woman. Cape Town. the wholly owned subsidiary of Religare Enterprises Limited (REL). Religare recently launched Femme Power . in addition to providing timely lifestyle tips. Jakarta. Femme Power provides an opportunity for the contemporary Indian woman who strives to strike a balance between work and family life. for women .a financial advisory platform managed by women.Hichens Harrison & Co Plc. the holding company for financial services businesses of the group has proposed to acquire London’s oldest brokerage firm . Kuala Lumpur. This acquisition will provide Religare with the opportunity of creating a global distribution and execution platform within emerging countries and surely help the Group to emerge as a global player in the financial services market to provide small and medium Indian corporates with much needed access to capital. Rio de Janero. Hichens Harrison is well placed in the emerging markets of Johannesburg. 23 . Buenos Aires. The primary focus of Femme Power is to provide a single point of contact from which women across India can access their financial investments and transactions. Religare has created an alternative career path keeping in mind the needs. Dubai and Mumbai.

5. PRODUCT PROFILE Group Structure Religare Enterprises Limited Religare Securities Limited - Equity Broking Portfolio Management Services Depository Online Investment Portal Institutional Equity Broking Religare Finvest Limited - Lending and Distribution business Religare Commodities Limited - Commodity Business Religare Insurance Broking Limited - Life and Non Life Insurance Reinsurance Religare Capital Markets Limited - Investment Banking SEBI Registered Merchant Banker Acquisition in UK through an international arm Religare Arts Initiative Limited - Art Fund and other businesses of Art 24 .

trade on NSE. 25 . BSE and Derivatives all on one screen. Gallery to be launched soon Religare Realty Limited - Real Estate Management Company Religare Venture Capital Private Limited - Private Equity and Investment Manager Religare Macquarie Wealth Management Limited - 50: 50 joint venture with Macquarie for wealth management business Religare AEGON AMC - 50:50 Joint Venture between REL and Aegon for Asset Management business in India.

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Growth of Internet 27 .

trends in the market. All these tools will help in making the investor better informed and better equipped to make intelligent investments. writing out cheque and giving instructions to depository participants (a broker with a demat account). It was a familiar story of might is right. own and sell is. Every broker has offered a service or a price to differentiate itself from the rest of the fray. it is no surprise that E-broking has captivated the imagination of the consumer and created a new breed of investor . such information was the exclusive preserve of big investors. Online brokerage houses aim to provide real-time quality information and research. matched by swift transaction processes. The websites offering e-broking have all the information needed to make an informed purchase or sale. Internet users in India nearly account for 40 million users in India.Internet trading in stocks eliminates the hassles of running around the broker. therefore. latest research reports. company analysis. players are catching on fast. uncertainty over the exact price of purchase. E-broking has triggered off a price war with each player valiantly trying to outdo the other. Investors and traders have never had it as good as trading commissions and brokerage rates are declining steeply. Given the suitability of the product and rising demand. market scoops and breaks etc provided by Religare . stock tips. was like driving on Indian roads. Share trading in India. and must be.the day-trader -whose impulse to buy. until the arrival of online brokerages in about 2000 or so. Till recently. An investor can do his own research on the Net before making a deal. While volumes are still low at the Rs 100 million a day mark compared to the combined turnover of Rs 90 billion a day on the Bombay Stock Exchange and the National Stock Exchange. big trucks (brokers) ruled the market and 28 . Internet trading in India is expected to account for 10 per cent of the trading volume of the stock exchanges in a year and would grow to 25 to 30 per cent in the next few years. This include stock analysis tools like technical analysis charts. Though the spread of the Internet has been slow in India. high transaction efficiency and customer service. e-brokers have already announced price cuts that have been unheard of for the Indian trader. at least in the online stock trading business. Internet trading or e-broking seems to have passed through its teething troubles and more players are now entering the fray. real-time market commentary.

especially if you made a good call (Bad calls. that this was the best price I got and nobody would be wiser. More than 80% of these investors are active traders. Now. The broker could say. exclusively electronic. ICICIdirect. then it was most of the blue chips and slowly it has taken over most of the market. investing in shares was done by a limited few most of whom applied in an IPO and stuck with the shares till they wanted money.UNICON and the other brokers.INDIABULLS. First it was a few of the blue chips. The regional stock exchanges which were the way to route trades in the olden days. dishonoured contracts. the number of day traders are less. Unlike the highways. almost inevitably got made). shares moved into the digital world at the NSDL&CDSL Then. Now with HDFC. one had to talk to a broker who told you the quotes. You would not know if the shares came from his account or from the market. There was no way of knowing if your trade was made. In the physical delivery world. it has also made life easy at the front end. Some of these have gone on to become the biggest "brokers" in India. the share market has changed. But a small chunk of these also dabble in the futures and options market. are now almost defunct with BSE 29 . By my rough estimates during my experience in Religare I found that many people who are willing to open an online trading accounts. Earlier. retired professionals and even small businessmen. You would not know if the shares were fake or unsigned. online trading forms about 10 pct in terms of volume (I think the figure is higher than 10 pct in the retail segment). share trading in India has gone online. What was hitherto a male dominated sphere also has quite a few women into trading.there were potholes and pitfalls in the shape of bad deliveries.and do trading to earn quick and high returns out of the boom that stock market is witnessing these days . fakes and what not. There was no way of knowing if the quote was right. Housewives. trading became electronic. as it happened sometimes. Slowly.KOTAK SECURITIES. which have remained out of the reach of the aam aadmi. If digitisation took care of the back end. It has opened the market to a whole segment of people. from the physical world. it has opened up investing and trading to segments that never before participated in it. Starting at about 2 pct. not only has online trading made life easier for these people. All this and more were true for the small investor. New issues are today.

A few months ago. Today it is about 64 pct.com). 90% of online trades are by the top five in the business ICICI Web Trade (owner of ICICIdirect. Indiabulls Securities and kotaksecurites Going online via these professional services driven by technology is a great way to cut the uncertainities caused by the middleman out of the business of share trading and make lives easier for the investor. There will be more competition in this space as brokers try to take over accounts of other brokers. 30 . Businessworld India reported that:46 pct of the trades were done by the top 100 brokers in 1996-97.and NSE ( NSE more than BSE) holding sway. Unicon Securities. Earlier investors were mostly from the bigger cities. it has opened avenues for investors from all parts of the country with an internet connection. With online trading. More specialised and personalised services will be in the offing as the market expands and as smaller brokers try to survive and evolve into niche players.

000 crore in the derivative market.4.000 – 35. Meanwhile the online business too is booming.1FACTS ABOUT ONLINE TRADING IN INDIA Well online trading is a big business in any way and in any standards. the size of the industry is around Rs 5. With daily volumes of Rs12000-15000 crore (on the BSE and NSE) in the cash segment and a volume of about Rs 30.000 crore per annum in terms of broking revenues. “Most retail brokers 31 .

c.” Says Venkataraman. Full service online brokerage is linked to existing brokerages. 000 outlets spread across 375 cities (compared to 400 two years ago). Sharekhan. With respect to the figures i. 32 . HDFC Securities Kotak Securities.based broking facilities. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed.com.com. 5Paisa. There are 2 types of online trading service: discount brokers and full service online broker. ICICIDirect.c. Discount online brokers allow you to trade via Internet at reduced rates.com are some of the online broking sites in India. Known as online brokers. they allow you to buy and sell shares via Internet. Top Brokers like ICICI direct. Kotakstreet. brokers have taken their trading rooms to the Internet.com. and India bulls offer Internet and phone.have realized that they need to provide alternate channels to customers for transaction. IndiaBulls. Some provide quality research.i direct has1. Geojit securities.com.com. other don’t. Realizing there is untapped market of investors who won’t to be able to execute their own trades when it suits them. Tatatdw.com. HDFCsec.i.com. Brokerage rates here are higher. India bulls has 300 shops in over 110 cities and has210 offices spread across 95 cities and we plan to add another 150 offices in the coming year.

Paperwork diminishes significantly. 33 .95 per cent for delivery-based trades. The quality of execution. and pricing info that is accurate and real-time. There's also a degree of investor skepticism about online payment and settlement mechanisms in spite of all the encryption and fire walling brought into play. Time and technology will soon assuage these concerns. as the cost of servicing often-outweighed transaction volumes. which hark back to the `physical' days. hinges on efficient order routing. Online trading has made it possible to universalize access to retail investors. apart from quotes and unbiased investment analyses.it is expected that brokerage rates would head further downwards. and between 0. transparency in dealings. Online brokerage ranges between 0.05-0. Once major investments in online infrastructure are over and done with . Access to online trading and latest financial happenings.Transaction velocity is crucial. We owe this to our investor fraternity. all consolidate into a value-added product mix in tandem with evolving markets that are freer and fairer. connections are lousy. And more often than not. in turn.25-0. access and efficiency. Critical components of execution quality include the prices at which orders were executed as well as the speed of execution.2INDIAN SCENARIO (SWOT ANALYSIS) Strengths The `do-it-yourself' framework of online share trading offers retail investors the three benefits of transparency. Today's investor is more involved in managing his or her assets and analyzing a vast array of investment options. in turn. resulting in reduced costs of trading.20 per cent of the value of transactions for non-delivery-based trades. driven competition.and with the economies of scale coming into play . Weaknesses Every thing in the world has a flip side to it . The Net result: An inquisitive. and whether they have received the best possible price. Technology and today's enabled investor have.4. informed and demanding investor. This was earlier very difficult. and no more painful trips to your broker to check if everything's in order. More and more investors now want to know how their trades are executed.

75 per cent of the combined BSE and NSE daily turnover of about RS 11. brokers have taken their trading rooms to the Internet. These brokers allow their clients to place online orders with the option of talking/ chatting to brokers if advice is needed.com. ICICIDirect. And daily trading turnover is estimated in the vicinity of 0.com. This is your main opportunity. Sharekhan. where trading over the Net accounts for about 55 per cent of the total volumes.com. Tatatdw.com. Kotakstreet.” Opportunities You have some money to dabble with. other don’t.com.com. Especially when you consider the US.com. IndiaBulls. I believe. HDFCsec. Discount online brokers allow you to trade via Internet at reduced rates. And. When will you ever find the time? And besides. Some provide quality research. Full service online brokerage is linked to existing brokerages. in some Asian markets the figures as high as 70 per cent.“The three main technology obstacles which have prevented Internet broking from taking off are: • Lack of Internet penetration • Bandwidth infrastructure • Poor quality of ISP infrastructure. Geojit securities.com are some of the online broking sites in India. Known as online brokers. 5Paisa. There are 2 types of online trading service: discount brokers and full service online broker. Trading shares on BSE/NSE has always been your dream. they allow you to buy and sell shares via Internet. Realizing there is untapped market of investors who want to be able to execute their own trades when it suits them.000 crore!!! The point is. Threats 34 . there's tremendous scope for growth. the hassle of finding a broker is not easy. Brokerage rates here are higher.

On to some threat perception . And all three include term investors as well as opportunists in their pecking order. foreign institutional investors and operators comprise the three main market constituents. But nobody gives a damn about the resultant volatility. All this spells spurting volumes. Some. hitch their fate with what the FIIs are up to. Prices of scripts can also be influenced to the advantage of vested interests.Domestic funds. sans the neutral. Unlike in the US. courtesy the Net. for instance. not all. offer free investment advice over the Net to lure rookie investors with misleading information. stockbrokers out here willingly (or under the force of circumstance) assume the role of `advisors'. And some. non-vested stance 35 .

Rate refresh: Rate refresh has to be real-time with no time lag. The site should be one click wonder where squaring off all your positions or canceling all your pending orders takes one click and a confirmation of action. The greater the backward integration.com. You normally get a secured Login id and password. Brokerage cost: It is important to weigh up the subscription and trading costs charged by an online broker against benefits offered by the site. buying limit is equal to margin money put in by customer. Couple of sites also provides margin funding for buying of shares. The last thing you need is a site that is heavily congested with the users who are downloading heavy jpeg graphs or pulling the latest story why market is moving.executes your trades.3 INVESTING ADVICE Factors to be kept in mind while selecting online brokers. It is always advisable to frequently change trading password. All online brokers display their charges on their sites. the better it is for the customer. Speed of execution: System has to be fast and reliable that does just one job. ICICIDirect. Trading limit: For trading. For delivery of shares. 5paisa. The speed and reliability comes with huge investment in technology. while with others you will have to search a bit. 36 . all sites provide 4 times buy and sell limit against margin money put in by customer. Some make sure you find the charges easily. It is always advisable to check rates of online broking sites with BSE/ NSE terminal rates.4.com are few sites with 128-bit encryption. Ideally online trading site should be fully integrated. Ideally broking account. demat account and bank account should be linked electronically. Safety: Please make sure site has 128-bit encryption to ensure safety of transaction online.

there is no easier way 37 . Please read terms and condition of each site before commencing to deal with them. This involves filling up trading account form. Demat account form and for faster transfer of money- Internet enabled bank account.Before you can trade. 80% of South Korea and 30%-40% US trades are executed online. Intraday chart/ historical chart: Lot of people trade based on charting packages.Free trial period: Site should allow users free trial period to familiarize yourself with system before you decide to become trading member of the site. you need to open an account and register as a trader as with online broking site. If you want to deal in shares. As per SEBI rule. Photo id proof and current address proof is a must for opening trading account. Online share dealing on the Internet is now a way of life for thousands of investors.

38 . or buy or hold.1 billion as far back as 1996 and net investments by FIIs of just $753 million in 2002. Movements in the Sensex during the two years have clearly been driven by the behaviour of foreign institutional investors (FIIs).6 and $8.4. who were responsible for net equity purchases of as much as $6. One of the most common forms of securities fraud on the Internet involves an imposter who attempts to manipulate the price of a stock by disseminating phony press releases or information. or creating phony websites. Pair Gain Technologies.5 billion respectively in 2003 and 2004. he will usually advise you to buy share which he has bought and plans to dump when price goes up. 2. A recent example of this scheme is the hoax perpetrated against US based. the sudden FII interest in Indian markets in the last two years account for the two bouts of medium-term buoyancy that the Sensex recently displayed.4HURDLES FOR ONLINE SHARE TRADING 1. Internet fraud In India. We have seen enough of PUMP and DUMP even without help of internet in cases of Harshad Mehta boom of 1992 and Ketan Parikh boom of 2000 (he even had cult following with Index of 10 shares called K-10). In sum. Today lot of investor’s depending on TV channel for recommendation about stocks to sell. Volatility of India’s Stock Markets Recent market developments have once more focused attention on the volatility that has come to characterise India’s stock markets. we see this kind of frauds happening in different way due to nature of our society. Most of these people have vested interest in stocks they recommend and promote. These figures compare with a peak level of net purchases of $3. Channels like CNBS offer array of experts from economist to brokers to analyst. Here when you talk to broker's staff while buying or selling.

So. in herd- like fashion tend to follow the FIIs when making their investment decisions. At the end of the day the stock exchange authorities of both the New York Stock Exchange and the heavily-weighted software exchange called NASDAQ suspended all trading for the remainder three working days during that fateful week to safeguard investor interests. Rampant Speculation The Indian stock markets are perhaps the only place in the world where you can buy shares without having to put money on the table and sell shares you do not own. the profits reaped by short sellers were astronomical and incalculable. the answer is yes. the day of the terrorist attacks in New York City. Could this situation have been avoided? As aforesaid. advanced capitalism does know how to intervene "politically" in the markets when fundamental interests are in danger of violation by short sellers. Thereafter when trading resumed and the markets fell further to another stipulated lower level. trading in whose shares is seen as indicative of market activity. September 11. 3. Thus. who. 39 . This shallowness would also mean that the effects of FII activity would be exaggerated by the influence their behaviour has on other retail investors. A similar situation had occurred on Tuesday. 2001. the electronic system automatically stopped all trading again for another two hours. their role in determining share price movements must be considerable. So. when the stock markets were made to collapse by a record 800-plus points on May 17 under the pretext that the Left is opposed to divestment. FIIs and even our own native financial institutions (FIs) as the massive UTI scandal of recent years has demonstrated. the BSE Sensex incorporates just 30 companies. although there are more than 4700 companies listed on the stock exchange.Given the presence of foreign institutional investors in Sensex companies and their active trading behaviour. This extraordinary situation has facilitated rampant speculation by all sorts of operators – the indigenous variety. Indian stock markets are known to be narrow and shallow in the sense that there are few companies whose shares are actively traded. The electronic monitoring system in both the Bombay Stock Exchange and the bigger National Stock Exchange automatically stopped trading for half-an-hour when the two markets respectively collapsed by 10 percentage points.

40 .

5. DIFFERENT COMPETITORS
The major players in online trading
Religare securities ltd
Unicon investment solutions
Icici direct.com
India bulls
Kotak securities

5.1 Religare securities ltd. Account Operations
Account Opening:Nil
Annual maintianance charges:Rs 250
Documentation charges:Rs 60
Dematerilization
Demat Processing Charges:Rs 2 per certificate
Rematerialization
Rematerialization charges:Rs 20 per request•
Brokerage:
Intraday Trading 0.03% each side + All Taxes
Delivery 0.20% each side + All Taxes
(Negotiable based on volume)
Facilities Applied for:
Equity
Derivative
Depository
Trading Account type:
R-ALLY
R-ALLY Lite
R-ALLY Pro

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5.2 unicon investment solution

Company Background

• Unicon investment solution is the entrepreneurial venture of Mr Gajendra Nagpal (founder and
C.E.O)
• Into broking since 3 years
• Focused on providing equity solutions to every segment
• Have a ground network of 90 branches all over India.

Online Account Types

•Unicon plus-web based
Unicon swift-software

Pricing for Retail Customers
Unicon swift

•Account Opening: Rs 600 (100+500+400)

•Demat 1st Yr: Rs 270

•Min Margin Retainable: Rs 1000

42

5.3 ICICI Direct

Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank
Limited and the Website is owned by ICICI Bank Limited
Account Types

•ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1 advantage.
Differentiated in services within the account
1. Cash on spot
2. Margin Plus

Premium trading interface of ICICIDirect Link is given to DBC partners and HNI’s
•Account Opening: Rs 750
•Schemes: For short periods Rs 750 is refundable against brokerage generated in a qtr. These
schemes are introduced 3-4 times a year.
•Demat: NIL, 1st year charges included in Account Opening Plus a facility to open additional 4
DP’s without 1st yr AMC
•Initial Margin: Nil
•Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes.

Delivery Vol per qtr Brokerage * Square Vol off p m Brokerage **
< 10 lakhs 0.75%
10 lakhs - 25 lakhs 0.70%
25 lakhs -50 lakhs 0.55%
50 lakhs – 1 Cr 0.45%
1 Cr – 2 Cr 0.35%
2 Cr – 5 Cr 0.30%

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It offers a full range of financial services and Products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors Online Account Type •Signature Account: Plain Vanilla Account with focus on Equity Analysis.5. The equity analysis is a paid service even for A/c holders •Power India bulls: Account with sophisticated trading tools. No AMC for this DP •Initial Margin: NIL •Brokerage: Negotiable Power India Bulls •Account Opening: Rs 750 •Demat: Rs 200 if POA is signed.4 INDIABULLS Company Background India Bulls is a retail financial services company present in 70 locations Covering 62 cities. No AMC for this DP •Initial Margin: NIL •Brokerage: Negotiable 44 .M Pricing of IB Accounts Signature Account •Account Opening: Rs 250 •Demat: Rs 200 if POA is signed. low commissions and priority access to R.

5 kotak street Company Background Kotakstreet is the retail arm of kotak securities. Auto sq off 2:55 •Cash Expressway : Spot payment.m •Initial Margin: Rs 5000(Compulsory) •Min Margin Retainable: Rs 1000 •Brokerage Slab wise: Higher the volume.m.03% per transaction •High Trader: 6 Times Exposure Cash & Derivatives.5 p.PAID Research SCHEME FACILITY WebBased-1-Month-500: View & Print on website WebBased-1-Year-6000 View & Print on website PrintReport-1-Month-750: View & Print on website + 10 Reports Delivered PrintReport-1-Year-9000: View & Print on website + 10 Reports Delivered 5. Keat Desktop with advanced tools comes at a charge of Rs 500 p. additional 0. Non-refundable PRICING OF KOTAK •Account Opening: Rs 500 •Demat: Rs 22.25% & 0. Even older customers (on 0. Kotak Securities Limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs Online Account Types •Twin Advantage / Green Channel : 2 DP’s. Limit against shares •Free Way: Flat Rs 999 Cover Charge p. 0.m.40%) 45 . lower the brokerage.5% charges For Kotak FastLane / Keat Lite / Keat Desktop are trading interfaces.

6 Requirement for opening online account 46 .

safe and secure. Depository participants offer dematerialization services to individual and corporate investors. thefts. our commitment is to provide a complete investment solution. This system works through depository participants (DPs) who offer demat services and the securities are held in the electronic form for the investor directly by the Depository. Demat as a parallel solution offers freedom from delays. We in collaboration with globe capital market limited provides demat facilities to our valuables customers. forgeries. At RELIGARE. 47 . settlement risks and paper work. which is simple. making our services quick. convenient and efficient.Dematerialization and trading in the demat mode is the safer and faster alternative to the physical existence of securities. apart from a national network of branches.

Driving licence or PAN card with photograph. 2. 3. Ration card or Bank passbook as proof of address. Identity: You can submit a copy of Passport.The above are mandatory requirements as per SEBI. Passport-size photograph. Driving licence. Proof of address: You can submit a copy of Passport. Voters ID card.1 Documents required to opening of demat account:-- All investors have to submit their proof of identity and proof of address along with the prescribed account opening form. You must remember to take original documents to the DP for verification. Voters ID card. Proof of Requirement for opening Demat a\c: 1.6. 4 Cancalled cheque with Printed Name 48 . . PAN card with photograph.

3 18.8 91.7 8.6 Funds Bonds 6 5.8 5.ANALYSIS OF THE QUESTIONNAIRE  In which of these Financial Instruments do you invest into? Frequenc Valid Cumulative y Percent Percent Percent Valid Shares 70 67.3 Mutual 19 18.3 85.3 67.0 100.3 Others 9 8.0 Total 104 100.0 49 .7 100.3 67.

0 74.4 Not 11 10.4 15. 70 60 50 40 70 n u q F y c e r 30 20 10 19 9 6 0 Shares Mutual Funds Bonds Others Comments.6 100.0 Applicable Total 104 100. It is clearly evident that 70% of the sample size prefer to invest in the share market over other financial instruments.0 Offline 16 15.0 100.6 10.  Which type of trading do you prefer? Cumulative Frequency Percent Valid Percent Percent Valid Online 77 74.0 50 .4 89.This question was meant to closely study the pulse and investment pattern in the stock market.0 74.

2 22.9 100.The result shows that online trading has taken the driver’s seat over the conventional trading ever since internet triggered a revolution across the globe.2 23.4 saving Convenience 20 19.2 22.  If you prefer online trading then the reasons for it? Cumulative Frequency Percent Valid Percent Percent Valid Privacy 20 19.7 22.0 30.7 53.1 All the above 21 20.0 51 .7 76.Not Applicable 11 Offline 16 Online 77 0 20 40 60 80 Frequency Comments.7 User Friendly and time 27 26.

3 less time Others 7 6.0 24. Total 88 84.0 24.4 Total 104 100. time saving.  What factors motivates you to invest in securities? Frequency Percent Valid Percent Cumulative Percent Valid New IPO's 25 24.0 100.0 Missing System 16 15.7 6.The preferred choice of online trading itself is a proven fact that most of them find it user friendly.7 More returns in 63 60.0 52 . Hence it does not come as a surprise as 20% of the sample size preferred all the three options.0 9 8.6 60.7 32.6 93.0 Not Applicable 11 Offline 16 Online 77 0 20 40 60 80 Frequency Comments. convenient etc.7 100.7 8.0 Total 104 100.6 100.

2 19. NewIPO's Entry of FII's More returns in less time 7 Others 25 9 63 Comments – This question was meant to understand why more and more investors have started creeping in the share market as never before. About 3/5th of the sample size believed that there is a possibility in multiplying their money within a short period of time and about 1/4th of the sample population is driven by the IPO’s issued by potential companies.0 53 .0 Total 104 100.  Does online trading motivate you to deal in securities? Frequency Percent Valid Percent Cumulative Percent Valid Yes 84 80.0 100.8 80.8 80.2 100.8 No 20 19.

0 Total 104 100.0 100. Yes No 20 84 Comments-It is clear and transparent that online trading has become more convenient way to deal in securities as majority (as much as 85%) of the sample population voted for it.3 95.8 100.3 17.9 77.0 54 .9 i d No 18 17.2 3 5 4.  Have you heard about Religare? Cumulative Frequency Percent Valid Percent Percent V Yes a l 81 77.8 4.9 77.

2 20.0 1.5 13.3 17.0 26. Which brokerage firm do you prefer for online trading? Cumulative Frequency Percent Valid Percent Percent Valid ICICI Direct 14 13.3 99.0 55 . Yes No 3 5 18 81 Comments – Out of the 100 people surveyed.4 Indiabulls 23 22.5 Kotak 21 20.1 22. Religare has its slice of share as it is familiar and popular among 80% of the sample population. Hence Religare is a well heard off name among the investors.0 39.0 100.1 61.5 Religare 27 26.2 81.0 Others 1 1.5 13.7 Securities Unicon 18 17.

But the survey also reveals an interesting point that there is not much variation among the players in terms of investors’ consideration for a brokerage firm.7 97.9 90.5 facility Exposure 3 2.8 30.9 100.0 Comments.4 Account opening 7 6.7 87.0 56 . What differentiates your share trading company from others? Cumulative Frequency Percent Valid Percent Percent Valid Brokerage 32 30.0 100.9 2.1 charges Others 3 2.8 30.0 49.9 2.8 Dial up Trade 8 7.This question was framed to understand the effectiveness of Religare among its competitors.8 Research Report 51 49. The push and pull factor worked out well for Religare it grabbed 27% of the market share out of the 100 people surveyed. Total 104 100.7 7.7 6.0 79.

0 Weekly 31 29.0 100.0 51. Total 104 100.8 80.0 Total 104 100.This question was framed to read the mind of an investor.7 6.0 57 . How often do you trade? Cumulative Frequency Percent Valid Percent Percent Valid Daily 53 51.0 60 50 40 30 n u q F y c e r 51 20 32 10 8 7 3 3 0 Brokerage Dial up Trade facility Account opening charges Research Report Exposure Others Comments.5 12.7 87.5 Yearly 13 12. Also to some extent investors look in for the brokerages charged by the trading firm while other options were hardly considered as pre requisites for online trading.8 Monthly 7 6. The survey reveals that investors have become more analytical and rationale over the period of time as they have compelled themselves to take decisions on the basis of pre and post market research reports offered to them at regular intervals.8 29.0 51.5 100.0 100.

0 100.This shows how stock market has swept the nation as a whole.0 58 .3 16.7 35000 35000- 17 16.0 25. 60 50 40 30 53 n u qF re y c 20 31 10 13 7 0 Daily Weekly Monthly Yearly Comments.3 100.0 15000- 61 58.0 60000 Total 104 100.0 25.7 83. Most of the investors prefer daily and weekly trading to keep a watch on the volatility of the stock market so as to take decisions accordingly.  In which category does your income fall?(Per month in Rs) Cumulative Frequency Percent Valid Percent Percent Valid 0-15000 26 25.7 58.

2 5 5 4.People from different categories of income group have taken their chance to invest in the booming stock market.5 Up to 25% 33 31.5 12.5 37.5 81.7 Above 50% 14 13.  What percentage of your earnings do you invest in share trading? Cumulative Frequency Percent Valid Percent Percent Valid Up to 10% 39 37.7 69.5 13.0 59 .35000-60000 17 15000-35000 61 0-15000 26 0 10 20 30 40 50 60 70 Frequency Comments.7 31.5 95.2 Up to 50% 13 12.5 37. The upper middle and middle class (income category ranging from 15000 – 35000) people have taken the primary seat as far as the number of people involved in trading is concerned.8 100.8 4.

0 26.5 Not Important 13 12.3 17. Total 104 100.0 40 30 20 40 n u q F y c e r 34 10 15 15 0 Upto10% Upto25% Upto50% Above50% Comments.1 49.  (i) Rank the attribute "customer service" of a share trading company? Cumulative Frequency Percent Valid Percent Percent Valid most Important 27 26.5 12.5 100.About 70% of the sample size reveals that not more than 25% of their earnings will be pushed into the market which clearly signifies that how volatility in the stock market can influence the investors.2 21.1 23.2 70.0 Neutral 22 21.0 at all 60 .0 26.2 Less Important 18 17.0 Important 24 23.0 100.3 87.

0 100.5 Important 41 39. Hence more than half of the sample size surveyed preferred it to be an important parameter of a brokerage firm.2 61 . (ii) Rank the attribute "proper guidance" of a share trading company? Cumulative Frequency Percent Valid Percent Percent Valid most Important 14 13.0 30 25 20 15 n u q y cF re 27 24 22 10 18 13 5 0 most Important Important Neutral Less Important Not Important at all Comments. Total 104 100.2 20.1 23.1 76.9 Neutral 24 23.5 13.Investors feel that they should be provided with the best of the services in order to associate themselves with a brokerage company over a long period of the time.4 39.2 96.4 52.5 13.0 Less Important 21 20.

8 3. Not Important at all 4 3.More than 50% of the sample population felt that they require proper guidance from the brokerage company in order to execute their operations effectively.0 Not Important at all Less Important Neutral Important most Important 0 10 20 30 40 50 Frequency Comments. 62 .0 100.8 100.0 Total 104 100.

7 Not Important 18 17.5 13.7 82. (iii) Rank the attribute "regular updates" of a share trading company? Cumulative Frequency Percent Valid Percent Percent Valid most Important 20 19. 63 .7 Neutral 17 16.0 at all Total 104 100.2 19.Surprisingly about 35 people out of the 104 surveyed thought that the regular updates provided by the company were not that important.3 17.0 Less Important 35 33.2 Important 14 13. Only 34 of the sample population felt the importance of regular market updates.5 32.0 40 30 20 F n u q e y c 35 r 10 20 17 18 14 0 most Important Important Neutral LessImportant NotImportant at all Comments.0 100.3 49.3 100.2 19.3 16.7 33.

0 24.7 6.(iv) Rank the attribute "trustworthiness" of a share trading company? Cumulative Frequency Percent Valid Percent Percent Valid most Important 10 9.0 40 30 20 n u q F y c e r 34 28 25 10 10 7 0 most Important Important Neutral Less Important Not Important at all Comments.3 Not Important 34 32.0 100.6 9.0 67.6 9.9 43.3 Neutral 28 26.7 16. 64 .0 at all Total 104 100.7 100.A mere 20% of the sample population do consider the significance of the trustworthiness of the brokerage company with whom they have been associated.7 32.6 Important 7 6.3 Less Important 25 24.9 26.

0 Not Important at all 35 Less Important 5 Neutral 13 Important 15 most Important 36 0 10 20 30 40 Frequency Comments.5 12.5 Less Important 5 4.0 100.5 61.8 4.The brokerage charges imposed on the investors makes a significant impact on 50% of the sample population whereas another 35 felt that this factor is of no significance at all 65 .0 Neutral 13 12.6 34.6 Important 15 14.8 66.7 100.7 33.(v) Rank the attribute "brokerage charge" of a share trading company? Cumulative Frequency Percent Valid Percent Percent Valid most Important 36 34.6 34.4 49.4 14.3 Not Important 35 33.0 at all Total 104 100.

9 Good 29 27.3 16.3 97.8 29.0 100. 66 .9 100.1 52.8 Average 17 16.9 2.8 Very Good 24 23.0 Average Total 104 100.1 Below 3 2.9 80.9 27.1 23.0 Comments-More than half of the sample population was satisfied with the kind of service that Religare offers to its customers.8 29.  (i) Rank the company "Religare" according to the quality of service? Cumulative Frequency Percent Valid Percent Percent Valid Excellent 31 29.

6 100.6 10.5 Good 22 21. 67 .0 50 40 30 F n u q y c re 20 41 23 22 10 11 7 0 Excellent Very Good Good Average Below Average Comments-Even ICICI Direct had its share of slice.7 6.1 22.2 82.1 Very Good 41 39.4 39.4 61.0 Average Total 104 100.7 89.1 22.(ii) Rank the company "ICICI Direct" according to the quality of service? Cumulative Frequency Percent Valid Percent Percent Valid Excellent 23 22.4 Below 11 10.0 100. more than 80% of the sample population is satisfied with its service offering.7 Average 7 6.2 21.

iii) Rank the company "INDIABULLS" according to the quality of service? Cumulative Frequency Percent Valid Percent Percent Valid Excellent 40 38.5 11.5 38.2 Below 5 4.0 Average Total 104 100.0 25.8 100.0 40 30 20 n u qF re y c 10 0 Excellent Very Good Good Average Below Average Comments-Even India Bulls joined the rat race as a handsome 75 members opted for India Bulls in this regard.7 Good 26 25.8 4.7 Average 12 11.2 58. 68 .2 20.5 Very Good 21 20.5 95.5 38.0 100.0 83.

0 92. 69 .0 100.0 60 50 40 30 F 52 n u q re y c 20 10 24 13 7 8 0 Excellent Very Good Good Average Below Average Comments-Kotak Securities was viewed as a low quality service provider as a mere 20 people voted in favour of this company as far as service offering was concerned.1 23.(iv) Rank the company "Kotak Securities" according to the quality of service? Cumulative Frequency Percent Valid Percent Percent Valid Excellent 7 6.5 12.7 6.7 Very Good 13 12.5 19.3 Below 8 7.7 6.3 Average 52 50.7 7.7 100.2 Good 24 23.1 42.0 Average Total 104 100.0 50.

2 65.5 Below 11 10.1 21.Unicon Securities Is viewed as a Good quality service provider as large chunk of 20 people voted in favour of this company as far as service offering was concerned.3 41.5 10.0 100.5 12.4 41.6 Good 15 14.4 80 Average 13 12.0 Average Total 104 100.4 14. 15 10 70 .0 50 45 40 35 30 frequency 25 Comments.4 Very Good 22 21.(v) Rank the company "Unicon Securities" according to the quality of service? Cumulative Frequency Percent Valid Percent Percent Valid Excellent 43 41.5 92.5 100.

8 5.9 2.8 Below 74 71.4 28. 71 .8 13.8 4.2 100.(v) Rank the company "OTHERS" according to the quality of service? Cumulative Frequency Percent Valid Percent Percent Valid Excellent 3 2.5 Average 16 15.9 2.8 7.9 Very Good 5 4.4 15.2 71.0 80 60 40 n u qF re y c 74 20 0 16 3 5 6 Excellent Very Good Good Average Below Average Comments-This result was very much predicted as other brokerage firms are still viewed as a low quality service providers as a bulk of them (about 75) were not in their favour.0 Average Total 104 100.7 Good 6 5.0 100.

Limitations:- The various Limitations are:-- • Lack of awareness of Stock market :-.Some people prefer to trade with the help of traditional brokers who have fairly good knowledge of the market.Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPO’s. • Inaccurate Leads :-. convincing people to trade online was a difficult task to achieve.Some respondents either did not have time or were not willing to respond. so its really tough to break the norms. • Mostly people feel comfortable with traditional brokers: -.Since most of the people are not techno savy and also due to poor internet penetration in India. • Lack of Techno Savy people and poor internet penetration: -. • Misleading concepts:-.Sometimes leads which were provided had inaccurate numbers. 72 . • Some respondents are unwilling to talk: -.Some people think that Shares are too risky and just another name of gamble but they don’t know its not at all that risky for long investors.

73 . Foreign individuals and institutional investors have encouraged participating into it. Internet triggered a revolution across the globe as it was regarded as the next big thing in the universe. taking over the traditional norms in the years to come. similarly online trading of shares is gaining momentum at a healthy rate as Internet penetration in India is on all time high.Conclusion Indian economy has been globalized and the capital market has been linked to the international financial market. there is a need for raising the Indian Capital market in to the international standards in terms of efficiency and transparency. So. So online trading would become the order of the day. Internet has come off age making work easier than ever before. The study showed that there is a growth in the shares included in the dematerialization process both in terms of volume of shares and value of shares. Dematerialization of securities and under this system is one of the major steps aimed at improving and modernizing the capital market and enhancing the levels of investor’s protection measures which aims at eliminating the bad deliveries and forgery of shares and expediting the transfer of shares. One such measure is the passing out of the Depository Act during the year 1996. The draw back of the old system and the pool proof measures sought to improve efficiency in transfer and transparency standards prompted to evaluate the functioning of the dematerialization process and to focus on the 8developments of the depository system in the Indian capital market.

What factors motivates you to invest in securities? (i) New IPO’s (ii) Entry of FII’s (iii) More returns in less time (iv) Others Q5. How often do you trade? (i) Daily (ii) Weekly (iii) Monthly (iv) Yearly 74 . What differentiates your Share Trading company from others? (i)Brokerage (ii) Research Report (iii) Dial up trade facility (iv)Magazine (v) Exposure (VI) Account opening charges (vii) Others Q9. If you prefer Online Trading then the reasons for it? (i) Privacy (ii) User friendly & Time Saving (iii) Convenience (iv) All The Above Q4. In which of these Financial Instruments do you invest into? (i) Shares (ii) Mutual Funds (iii)Bonds (iv) Others Q2. Which type of trading you prefer? (i) Online (ii) Offline (iii) Not Applicable Q3.QUESTIONNAIRE Q1. Which Brokerage Firm do you prefer for Online Trading? (i) ICICI Direct (ii) religare (iii) India bulls (iv)kotak Securities (v) hdfc securities (vi) Any other__________ Q8. Have you heard about Religare? (i) Yes (ii) No Q7. Does online trading system motivate you to deal in securities? (i) Yes (ii) No Q6.

5= Not Important at all) 1. (1=Excellent. According to your preference rank the attributes of a share trading company. Hdfc securities d.Q10. Trustworthiness____ 5. Rank these share trading companies according to the quality of service they provide. Customer Service ____ 2. In which category does your income fall? (Per month in Rs) i) 0-15000 ii) 15000 – 35000 iii) 35000 – 60000 iv) Above 60000 Q11. Kotak securities c. Religare d)India bulls ( ) e)Others( ) b. Regular Updates ____ 4. Brokerage Charges_____ Q13. 5= Very poor) a)Religare( ) b)Kotak securities( ) c)H D F C( ) a. India bulls e.(1=Most Important. Others(Please Specify) Personal Information Name: _____________________ Age . Proper Guidance ____ 3. What percentage of your earnings do you invest in share trading? (i)Up to 10% (ii) Up to 25% (iii) Up to 50% (iv) Above 50% Q12. _____________________ Sex: Male Female Phone No: _____________________ 75 .

equitymaster.gov.indiabulls.com www.nsdl. Training Kit Provided by the RELIGARE Websites: www.in Magazines and Journals: Times of India Business Today 76 .com www.com www.google.indiainfoline.Bibliography Securities Market (Basic) Module :--NCFM Economic Times.investopedia.com www.kotak.com www.bseindia.nseindia.com www.com www.sebi.com www.com www.com www.valuenotes.

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