A

Summer Internship Project Report

on
A Study of Online Trading in Indian stock market
at
Mudrabiz Ltd

Submitted to

SINHGAD INSTITUTE OF BUSINESS ADMINISTRATION AND RESEARCH

for the partial fulfillment of

Master of Business Administration
2018-20
CHAPTER : 1

1 .INTRODUCTION

The internet’s arrival and its subsequent popularity in India have made online trading in India,
which is about the online purchase and sales of shares, one of the extremely popular means of
trading. Both beginner and experienced traders and investors in India are milking this
opportunity by trading online in futures and options, stocks and currencies worldwide. Such
opportunities are in the form of reduced brokerage and commissions, better broking services etc.

Constructive uses of new technologies have always contributed positively towards improving
human life standards and the economy of a country .Such as online trading, in equity markets it
increased trade volumes and number of investors trading in stock markets. Online trading was
started in India in the year 1995, where a new system is formed which allows the investor to
trade through an internet site where the major financial products and services like equities,
mutual funds, life insurance, general insurance, loans, share trading, commodities trading,
portfolio management and financial planning etc. are directly available for the customer.

There is also stock option trading in India. An option is a financial agreement, with a
predetermined maturity period and price, for the purchase or sales of the underlying products.
Stock options enable the protection of dealers and control of their stocks, in addition to
generation of higher earnings.

For carrying out online trading in India, you have to open an online demat and trading account,
followed with online trading software. For this purpose, you would require a Depository
Participant (DP), selection of which should be preceded by extensive research on various
determinants.

This is time consuming and inefficient. This imposed limits on trading volumes and efficiency.
In order to provide efficiency, liquidity, and transparency NSE and BSE introduced nationwide
online fully automated “SCREEN BASED TRADING SYSTEM”.

Online trading in India is the internet based investment activity that involves no direct
involvement of the broker. There are many leading online trading portals in India along with the
online trading platforms of the biggest stock houses like the National stock exchange and the
Bombay stock exchange.
COMPANY PROFILE
STATEMENT OF THE PROBLEM

The present day situation the investors in securities required the knowledge about Demat account
and the online trading technique. In general the modern technology simplifies the methods of
trading the securities. Online trading and Demat are the two emerging concepts in stock market.

Research objectives.

The main objective of the study is to check consumer behavior towards online trading in stock
market among the people of Rajkot City. The objective of any research is basically divided into
two categories.

Primary Objectives

To study the “consumer behavior toward online trading in stock market”.

Secondary Objectives

To study trading frequency through online trading

To study investment decision making in online trading To study over all influence of online
trading to the security market.
Research Methodology.

SOURCES OF DATA:

The task of data collection begins after a research problem has been defined and research plan
chalked out. While deciding about the method of data collection to be used for the study, first of
all the sources of data must be very clear.

There are basically two sources of data.

Primary Data Source:

The primary data are those, which are collected afresh for the first time for the problem solution,
and thus happen to be original in character. It may be obtained from individual, families and
representative or from organization.

Secondary Data Source:

The secondary data are those which have already been collected by someone else and which
have to decide which have already been passed through the statistical process. Externally, these
sources may include books or periodicals reports, data services and computer data banks.

In the context of the project study, the source of data used by me for this project is primary type
of sources. The primary data source is the respondents who have filled the questionnaire

SAMPLING PLAN:

 Sampling Unit:

The sampling Unit is the entity to which we have to follow during the whole research study. In
the context of the project study, the sampling unit primarily consists of Individuals who may be
Businessmen, Professional, Government employee, Employees working in the private firm And
other persons.

 Sampling Size:

It plays an important role in the research. Samples are representative of the whole population.
This refers to the no. of items to be selected from the universe to constitute a sample.

In the context of the project study, 75 respondents are chosen keeping in view the above
constrains. Attempts have being made to see that samples are chosen from different strata.
1. Sampling Methods:

There are various methods of sampling in the context of my project study I have selected Non-
probability Sampling Method. And under that, I have taken Convenience Sampling. Under this I
prepared a simple questionnaire to collect the information.

2. Data Collection Method

Data collection is done basically in three ways: Observation Method, Survey Method and
Questionnaire. And in the context of my project study, I have selected questionnaire method for
collecting the data.

3. Data Analysis & Interpretation:

Data analysis is based on the data collected by the questionnaire. From the collected data
findings are extracted. The data is tabulated and frequency distribution chart is prepared i. Data
Analysis by Charts: Charts make easy to understand. Therefore I have use pie chart and
histogram to present the data.
Limitation of the research

This exploratory research is done in the Pune city only and therefore findings and suggestion
given on the basis of this research and cannot be considered for the entire security market of
India.

 Due to limitation of time and cost constrains, a sample size of only 75 respondents was
chosen.

 Data analysis and interpretation done may not be that strong due to small sample and
random sampling method.

 And also the views of respondents in Pune towards online trading may not reflect the overall
scenario.

 Respondents taken for the study were most of from the Mudrabiz, therefore true picture of
the stock broking companies can also not be seen from the study.
CHAPTER : 2

CONCEPTUAL BACKGROUND
REVIEW OF

LITERATURE

1. Intention to Adopt Online Trading: Identifying The Future Online Traders Yinghao
Mickey Li, Jinkook Lee and Brenda J. Cude

This paper is based on the first author's thesis, which won the 2002 American Council on
Consumer Interests thesis award. The dataset was provided to the second author by Larry Cohen,
the director of Consumer Financial Decisions of SRI Consulting Corporation. This paper
proposes that investors' intention to adopt online trading in the future is influenced by
investment, psychology, technology and demographic factors. Data from the 2000-01 Macro
Monitor database are employed in this study. Macro Monitor is a biennial survey conducted by
the Consumer Finance Decision section of SRI Consulting Corporation. The sampling method of
the survey is two-stage random sampling. The first step is a stratified disproportionate random
sampling. And the second step is a simple random sampling. Sample size was 3759 household in
2000 in U.S. Among the investors, there were 389 current online investors and 1,066 current
offline investors. On average, online investors were younger than offline investors and had more
education than offline investors. Online investors traded 29.2 times a year, while offline
investors traded only 7.1 times a year. In terms of trading volume, online investors also traded a
larger sum of money than offline investors.

2. Impact of online trading on customer satisfaction in Tehran stock exchange

DelbarJafar Pour, Lulea University of technology - master thesis, continuation courses -

marketing and e-commerce.

The aim of the study is to indicate how Indian traders rank quality factors and if online trading
system could enhance their satisfaction level or not?

For research distributive and explorative research designs are used and for data collection survey
method is used. There were 300 invitees were invited for the purpose of survey.

Result shows that there is a meaningful difference between traders’ satisfaction in conventional
stock exchange. And existence of online trading system in stock exchange can raise the degree of
traders’ satisfaction.
CONCEPT & DEFINITION

The trader buys and sells using an online trading platform. Online trading may
include trading in bonds, stocks (shares), futures, international currencies, and other financial
instruments. Most people trade online through an online broker. An online broker is a
brokerage firm that offers its services on the Internet.

Online trading is the act of purchasing and selling financial products on the Internet. The trader
buys and sells using an online trading platform. Online trading may include trading in bonds,
stocks (shares), futures, international currencies, and other financial instruments.

Most people trade online through an online broker. An online broker is a brokerage firm that
offers its services on the Internet. Unlike traditional brokers, the investor does not meet the
broker face-to-face or via the telephone. Everything happens on the web

According to iForex.com:

“Online trading is basically the act of buying and selling financial products through an online
trading platform.”
Chapter : 3

Data presentation , analysis and interpretation.

TABLES
Conclusion
Now a day’s manual process for the citizens to sales for their product such like mobile,
computer, laptop, stock share etc… has become a huge task. The main object of the website
is to reduce the effort by the candidate and save his time and avoid unwanted rushes at the
ZECCO and assure a smooth working schedule at ZECCO for Trading.

The main features of this site includes flexibility, reduce manual work in an efficient
manner, a quick, convenient, reliable and effective way to apply for their online trading
market committee records. The project could very well be enhanced further as per the
requirements.

Online trading is the new concept in the stock market. In India, online trading is still at

its infancy stage. Online trading has made it easy to trade in the stock market as now
people

can trade while sitting at their home. Now stock market is easily accessible by the people.
There

are some problems while doing the trade through the internet. Major problem faced by
online

trader is that the investors are loyal to their traditional brokers, they rely upon the
suggestions

given by their brokers. Another major problem is that the people don't have full knowledge

Regarding online trading. They find it difficult to trade themselves, as a wrong entry made
by them, can bring them huge losses.