ACKNOWLEDGEMENT

I take this chance to specify my acknowledgement and deep sense of feeling to the
people for rendering valuable help. Their input has vied an important role in
success of this project. Formal piece of acknowledgement might not be adequate to
specify the sensation of feeling towards people that have helped me in with success
completion of my summer internship project.

I take this opportunity to express my sincere gratitude to my company guide Mr.

Anil Sharma (Territory Manager) SHAREKHAN LIMITED for guiding me
through the project and resolving my queries every time I had them.

I would like to extent my sincere gratitude to Mrs. Swati (placement incharge)

SGTBIMIT affiliated to Guru Gobind Singh IndraprasthaUniversity for the
freedom she gave me in choosing my report topic and his continuous guidance
hence forth. Her guidance has been of extreme help to me I am utmost thankful for
all the times, I consulted her and she answered with utmost patience and
perseverance.

I take this chance to give thanks to all respondents who spared their precious time
to produce me with valuable input for project without which it’d have not been
attainable. I firmly believe that there is forever a scope of improvement. I welcome
any suggestions for any enriching the standard of this report.
 AUTHORISATION

This hereby state that the project report entitled “ ” is undertaken by me during
the 8 weeks of internship at Sharekhan Limited. The report is submitted as partial
fulfilment of the requirement of BBA program of SGTBIMIT OF IP University.
This project report is a record of original work done by me and no part of the
report has been submitted for an award of any degree, diploma, fellowship or any
other similar study.

It also declares that all the work depicted in my project report and has been
completed at Sharekhan Limited corporate office in Delhi. The report was prepared
during a span of 8 weeks from 10th June to 10th August 2019.

This report has been certified and authenticated by:

Company Guide

Anil Sharma

Territory Manager
DECLARATION

I, Tannu Arora, here by state that the report entitled A STUDY OF “INVESTOR
PREFERENCE FOR ONLINE TRADING” at SHAREKHAN Ltd. In
Jhandewalan is a genuine and bonafide work prepared by me under the able
guidance of Mr. Anil Sharma, Manager of SHAREKHAN Ltd.

The empirical findings in this report are based on the data collected by myself and
the matters present in this report are not copied from any sources.

This project report is submitted to Sri Guru Tegh Bahadur Institute of Management
and Information Technologyin partial fulfilment for the award of degree of BBA.

Date: 16 October 2019

Place: Delhi

Tannu Arora
 TABLE OF CONTENT
PAGE
CH. No. TOPIC No.

1 EXECUTIVE SUMMARY 8
2 INTRODUCTION OF THE COMPANY 10
2.1 SERVICES PROVIDED BY SHAREKHAN 12
2.2 PRODUCT PROFILE 13
2.3 TWO IN ONE ACCOUNT 13
2.4 ONLINE TRADING ACCOUNT 14
2.5 PROCESS OF ONLINE TRADING 14
3 FINANCIAL SYSTEM OVERVIEW 15
3.1 FINANCIAL SYSTEM- AN OVERVIEW 16
3.2 FINANCIAL MARKETS 16
3.3 COMPONENT OF CAPITAL MARKET 20
3.4 PRIMARY AND SECONDARY MARKET 22
PRODUCTS DEALT IN SECONDARY
3.5 MARKET 24
3.6 ACCOUNT OPENING 26
4 OBJECTIVES & SCOPE 30
4.1 PRIMARY OBJECTIVES 31
4.2 SCOPE OF THE STUDY 31
5 ORGANISATION STRUCTURE 32
5.1 OVERALL ORGANISATIONAL STRUCTURE 33
5.2 FUNCTIONS OF DEPARTMENTS 33
5.3 MARKETING 34
5.4 ACCOUNTS 34
5.5 HR & ADMINISTRATION 35
6 STOCK EXCHANGES 36
6.1 FUNCTIONS OF STOCK EXCHANGES 37
6.2 THE BOMBAY STOCK EXCHANGE 39
6.3 THE NATIONAL STOCK EXCHANGE 40
7 THEORETICAL PERSPECTIVE 41
8 SWOT ANALYSIS 44
 8.1 STRENGTH 45
8.2 WEAKNES 45
8.3 OPPORTUNITY 45
8.4 THREATS 45
9 RESEARCH METHODOLOGY 46
9.1 DEFINES THE PROBLEM 47
9.2 DEVELOPING RESEARCH PLAN 47
9.3 DATA SOURCE 47
8.4 RESEARCH APPROACH 49
9.5 SAMPLING 49
9.6 SAMPLING PLAN 49
9.7 STATEMENT OF PROBLEM 50
10 DATA ANALYSIS 51
10.1 INVESTMENT OPTION 52
10.2 BRAND AWARENESS 53
10.3 IS ONLINE TRADING EASY? 54
10.4 DO YOU NEED TRANNING 55
10.5 SOURCES OF ADVERTISEMENT 56
10.6 WHICH IS BETTER, NSE OR BSE 57
10.7 AWARENESS OF E-BROKING 58
KNOWLEDGE THROUGH COMPANY
10.8 WEBSITE 59
10.9 VISIT BY COMPANY REPRESENTIVE 60
10.10 INTEREST IN E-BROKING 61
10.11 PEFERRED SYSTEMS OF SHARE TRADING 62
10.12 TRADITIONAL-INFLUENCING FACTORS 63
10.13 PREFERENCE FOR INVERTMENT 64
10.14 INFLUENCING FACTOR 65
10.15 FUTURE PLANNING FOR ONLINE TRADING 66
REASONS FOR NOT ENTERING IN TO E-
10.16 BROKING 67
11 FINDING AND OBSERVATION 68
12 LIMITATIONS 70
13 SUGGESTIONS AND RECOMMENDATIONS 72
14 CONCLUSION 74
15 ANNEXURE 76
 CHAPTER-1
EXECUTIVE SUMMARY

COMPANY: - SHAREKHAN LTD.

PROJECT TITLE:-
“INVESTORS PREFERENCE FOR ONLINE TRADING.”
SCOPE OF THE PROJECT
The research has been conducted within the geographical area of Delhi city. I have
targeted students, businessmen, and other people.
OBJECTIVE
The objective behind conducting this project is as followed:-
PRIMARY OBJECTIVE
 To find out the people who are willing to be an agent for SHAREKHAN
LTD.
 To find potential customer of SHAREKHAN LTD. who involved in trading
activities and generate the business for SHAREKHAN LTD.
SECONDARY OBJECTIVE
 To know and understand the thinking and perception of different people
about D-mat account and online trading account and share market
 To see the interest of people for SHAREKHAN LTD.
 To create the image about SHAREKHAN financial product.
 Promotion of the product.
For conducting the research the data was collected through-
1-Primary Data
2- Secondary Data
PRIMARY DATA:- Primary data is the data which is actually collected from the
field it is a fresh data which is not used by anybody.
Primary data was collected using the following techniques-
# Questionnaire Method
# Direct Interview Method
# Observation Method
The main tool used was the questionnaire method. Further direct interview method,
where face to face formal interview was taken. Lastly observation method was
used continuously with the questionnaire method.
SECONDARY DATA :- It is the second hand data it used by the other person
before we use it. This data has been published in magazine, News Paper and
Websites.
 CHAPTER-1
INTRODUCTION OF THE COMPANY

Sharekhan is one of the top retail brokerage houses in India with a strong online
trading platform. The company provides equity based products (research, equities,
derivatives, depository, margin funding, etc.) through its pan India presence of 200
branches and 310 franchises across 170 cities. Sharekhan was established by
Morakhia family -in 1999-2000 and Morakhia family, continues to remain the
largest shareholder.
Sharekhan is one of the leading retail broking brands in the country. It is the retail
broking arm of the Mumbai-based SSKI Group. With a legacy of more than 80
years in the stock markets, the SSKI group ventured into institutional broking and
corporate finance over a decade ago. Presently SSKI is one of the leading players
in institutional broking and corporate finance activities. Sharekhan offers its
customers a wide range of equity related services including trade execution on
BSE, NSE, Derivatives. Depository services, online trading, Investment advice,
Commodities, etc.
The Company's online trading and investment site - www.Sharekhan.com -
was launched on Feb 8, 2000. The site gives access to superior content and
transaction facility to retail customers across the country. Known for its jargon-
free, investor friendly language and high quality research, the content-rich and
research oriented portal has stood out among its contemporaries because of its
steadfast dedication to offering customers best-of-breed technology and superior
market information.
Sharekhan's management team is one of the strongest in the sector and has
positioned Sharekhan to take advantage of the growing consumer demand for
financial services products in India through investments in research, pan-Indian
branch network and an outstanding technology platform. Further, Sharekhan's
lineage and relationship with SSKI Group provide it a unique position to
understand and leverage the growth of the financial services sector.
SSKI Corporate Finance Private Limited (SSKI) is a leading India-based
investment bank with strong research-driven focus. Company team members are
widely respected for their commitment to transactions and their specialized
knowledge in their areas of strength. The team has completed over US$5 billion
worth of deals in the last 5 years - making it among the most significant players
raising equity in the Indian market. SSKI, a veteran equities solutions company
with over 8 decades of experience in the Indian stock markets.
If you experience Company profile, content or for that matter the online
trading facility, you'll find a common thread; one that helps you make informed
decisions and simplifies investing in stocks. The common thread of
empowerment is what Sharekhan's all about!
"Sharekhan has always believed in collaborating with like-minded
Corporates into forming strategic associations2 for mutual benefit relationships"
says JaideepArora, Director - Sharekhan Limited.
2.1 SERVICES PROVIDED BY SHAREKHAN
2.2 PRODUCT PROFILE

SHAREKHAN is one of the leading Depository Participants (DP) in the country

with over 8 Lac demat accounts. SHAREKHAN Demat services offers you a
secure and convenient way to keep track of your securities and investments, over a
period of time, without the hassle of handling physical documents that get
mutilated or lost in transit. SHAREKHAN is Depository participants both with -
National Securities Depositories Limited (NSDL) and Central Depository Services
Limited (CDSL).

2.3 TWO IN ONE ACCOUNT:-

SHAREKHAN is providing 2-in- 1 account to its customer i.e.
1) D-mat Account
2) Online Trading Account

D-MAT ACCOUNT :-
It is called as demateralised account. It is used for keeping share in our account .
After placing order to BSE or NSE for share , the share transfer to your D-mat
account
And amount price of that share you purchased deducted from your saving account.
D-mat account is used for holding share for particular period .

FEATURES & BENEFITS

As opposed to the earlier form of dealing in physical certificates with delays in

transaction, holding and trading in Demat form has the following benefits :

Settlement of Securities traded on the exchanges as well as off market

transactions.
Shorter settlements thereby enhancing liquidity.
Pledging of Securities.
Electronic credit in public issue.
Auto credit of Rights / Bonus / Public Issues / Dividend credit through ECS.
Auto Credit of Public Issue refunds to the bank account.
No stamp duty on transfer of securities held in demat form.
No concept of Market Lots.
Change of address, Signature, Dividend Mandate, registration of power of
attorney, transmission etc. can be effected across companies held in demat
form by a single instruction to the Depository Participant (DP).

2.4 ONLINE TRADING ACCOUNT:-

Online trading account is used for purchasing the share or to sale the share of
particular company.
 It is provided for Rs.700 to the customer .
 Normal plan is also available at Rs.299.
Client has to give the cheque on name of SHAREKHAN LTD.

ONLINE TRADING CONCEPT

ONLINE TRADING ACCOUNT

(SEBI)

D-MAT ACCOUNT

(NSDL)

(SEBI)

2 IN 1 ACCOUNT
2.5 PROCESS OF ONLINE TRADING
For online trading SHAREKHAN provides ID and password to client so that client
can easily do login on sharekhan .com for online trading.
Client gives the order through online trading account to purchase the share of
particular company. The order goes to BSE or NSE. Order is executed and share of
particular company company comes to client D-MAT account where he hold the
share until price of share rise. As the share come to client D-mat account the cost
amount is deducted from client saving account. When client want to sell his share
he give the order through online trading account. Share is sell through his D-mat
account And money get deposited in his saving account.

INTRA DAY TRADING

In intraday trading the share is purchase and sale on the same day. The share
market starts at 9:15 a.m. and close at 3.30 p.m. if the client purchases the share
and prices of share rise then he can sell his share and he will get the profit. If the
prices of share fall down then he will be in loss. If client purchases the share and
he does not sell it at market closing time then the share automatically sell i.e. called
square off. If price of share is high then client will get profit and price of share fall
down the customer will be in loss at time of square off.
 CHAPTER: 3
FINANCIAL SYSTEM OVERVIEW

3.1 FINANCIAL SYSTEM- AN OVERVIEW:

The financial system of any country consists of specialized and non-
specialized financial institutions, organized and unorganized financial markets,
financial instruments and services that facilitate flow of funds from areas of
surplus funds to the areas of deficit. Financial system is a composition of various
institutions, markets, regulations, law practices, money managers, analysts, etc. By
making funds available, the financial system helps the growth of modern
economics and the increase in the standard of living among the citizens.

3.2 FINANCIAL MARKETS:

A financial market can be defined as the market in which financial assets are
created or transferred. Financial assets represents represent a claim to the payments
of a sum of money sometime in the future and/or periodic payment in the form of
interest or dividend. Financial Market performs an important function of
mobilization of savings and channeling them into the most productive uses. The
participants in the financial markets are financial institutions, agents, brokers,
dealers, borrowers, lenders, savers and others who are inter-linked by the laws,
contracts and communication networks.
Financial markets consist of Primary and SecondaryMarkets. The Primary
markets deal in new financial claims and securities and hence are known as new
issue markets. The secondary market deals in securities already issued, existing or
outstanding. Financial markets are also classified as Money and Capital Markets.
Money markets deals with transactions in short-term instruments (with period of
maturity one year or less, e.g. treasury bills), while capital market deals with
transactions in long-term instruments (with period of maturity above one year, e.g.
corporate debentures and government bonds).
On the basis of the type of the financial claim, financial markets are classified as
Debt and Equity markets. By the timing of delivery, financial markets are
classified as Cash or Spot markets and Forward or Future markets.

The classification of Financial markets can be summarized as follows:

 Money Market
 Debt Market
 Forex Market
 Capital Market.

MONEY MARKETS:
Money markets can be defined as a market for short term money and
financial assets that are near substitutes for money (any financial assets that can be
quickly converted into money with minimum transaction cost). One more
important function of this market is to channel savings into short term productive
investments like working capital. Money market aids banking, operates as a
medium of integration between sub markets, promotes maintaining of minimum
reserve in the form of cash and liquidity and controls the interest rates.
Money market is a collection of market for the instruments like Call money,
Treasury bills, Commercial papers, Certificate of deposits, Money Market Mutual
Funds, etc. A certain degree of flexibility in the regulatory framework exists and
there are constant endeavors for introducing a new instruments or innovating
dealing techniques. It is a wholesale market and the volume of funds or financial
assets traded are very large i.e. in crores of rupees.

ORGANIZED MONEY MARKET:

Indian financial system consists of money market and capital market. The money
market has two components - the organized and the unorganized. The organized
market is dominated by commercial banks. The other major participants are the
Reserve Bank of India, Life Insurance Corporation, General Insurance
Corporation, Unit Trust of India, Securities Trading Corporation of India Ltd.,
Discount and Finance House of India, other primary dealers, commercial banks
and mutual funds. The core of the money market is the inter-bank call money
market whereby short-term money borrowing/lending is effected to manage
temporary liquidity mismatches. The Reserve Bank of India occupies a strategic
position of managing market liquidity through open market operations of
government securities, access to its accommodation, cost (interest rates),
availability of credit and other monetary management tools. Normally, monetary
assets of short-term nature, generally less than one year, are dealt in this market.

UN-ORGANIZED MONEY MARKET:

Despite rapid expansion of the organized money market through a large network of
banking institutions that have extended their reach even to the rural areas, there is
still an active unorganized market. It consists of indigenous bankers and
moneylenders. In the unorganized market, there is no clear demarcation between
short-term and long-term finance and even between the purposes of finance. The
unorganized sector continues to provide finance for trade as well as personal
consumption. The inability of the poor to meet the ‘creditworthiness’ requirements
of the banking sector make them take recourse to the institutions that still remain
outside the regulatory framework of banking. But this market is shrinking.
FOREIGN EXCHANGE MARKET:
Every sovereign country in the world has a currency, which is a legal tender
in its territory, and which does not act as money outside its boundaries. Foreign
exchange or Forex market is the one where a country’s currency is traded for
another. The rate at which one currency is converted to another is known as the
rate of exchange. Forex market is the largest financial market in the world having a
daily turn over of couple of trillion dollars. The key participants in the Forex
market are importers (who need foreign currency to pay off their imports),
exporters (who want to convert their foreign currency receipts into domestic),
traders (who make a market in the foreign currency), foreign exchange brokers
(who bring together buyers and sellers), speculators (who tries to profit from
exchange rate movements) and portfolio managers who buy and sell foreign
currency. Speculative transactions account for more than 95% of the turnover on
the Forex markets.
In India, the key participants in the Forex markets are RBI, banks and
business undertakings. Business undertakings can participate in the Forex market
only to the extent that they need cover for the exchange exposure arising from a
merchant transaction or a foreign currency borrowing and cannot resort to
speculative transaction. One reason justified for the existence of the Forex market
is that each nation has decided to keep their sovereign right to have control on their
own currency. If every country had the same currency, then there will be no need
for a foreign exchange market.

CAPITAL MARKET
The function of the financial market is to facilitate the transfer of funds from
surplus sectors (lenders) to deficit sectors (borrowers). Normally, households have
investible funds or savings, which they lend to borrowers in the corporate and
public sectors whose requirement of funds far exceeds their savings. A financial
market consists of investors or buyers of securities, borrowers or sellers of
securities, intermediaries and regulatory bodies. Financial market does not refer to
a physical location. Formal trading rules, relationships and communication
networks for originating and trading financial securities link the participants in the
market.
Capital markets provide the resources needed by medium and large-scale
industries for investment purposes unlike money markets that provide the
resources for working capital needs. While money markets deal in short-term
claims (with a period of maturity 1 year or less) capital market deals in long-term
claims (with a period of maturity more than 1 year). Stock market and Government
bond markets are example of capital markets.
Capital market consists of primary and secondary markets. The primary
markets create long-term instruments through which corporate entities borrow and
the secondary market provides liquidity and marketability to these instruments.
Companies can raise capital in the primary market through the issue of shares and
debentures for which prior approval of The SEBI is required. The secondary
market that operates through the medium of stock exchanges is that segment of the
capital market where securities already issued are traded.
The primary market in which public issue of securities is made through a
prospectus is a retail market and there is no physical location. Offer for
subscription to securities is made to investing community. The secondary market
or stock exchange is a market for trading and settlement of securities that have
already been issued. The investors holding securities sell securities through
registered brokers/sub-brokers of the stock exchange. Investors who are desirous of
buying securities purchase securities through registered broker/sub-broker of the
stock exchange. It may have a physical location like a stock exchange or a trading
floor. Since 1995, trading in securities is screen-based and Internet-based trading
has also made an appearance in India. The secondary market consists of 22 stock
exchanges. The secondary market provides a trading place for the securities
already issued, to be bought and sold. It also provides liquidity to the initial buyers
in the primary market to re-offer the securities to any interested buyer at any price,
if mutually accepted..

CAPITAL MARKET PARTICIPANTS:

There are several major players in the primary market.These include the merchant
bankers, mutual funds, financial institutions, foreign institutional investors (FIIs)
and individual investors. In the secondary market, there are the stock exchanges,
stock brokers (who are members of the stock exchanges), the mutual funds,
financial institutions, foreign institutional investors (FIIs), and individual investors.
Registrars and Transfer Agents, Custodians and Depositories are capital market
intermediaries that provide important infrastructure services for both primary and
secondary markets.
3.3 COMPONENTS OF CAPITAL MARKET:
Following are the three main components of capital market:
1. New Issue Market
2. Financial Institutions
3. Stock Market

1. NEW ISSUE MARKET

The new issue market represents the primary market where new securities,
i.e. shares or bonds that have never been previously issued, are offered. Both the
new companies and the existing ones can raise capital on the new issue market.
The prime function of new issue market is to facilitate the transfer of funds from
willing investors to the entrepreneurs setting up new corporate enterprise or going
for expansion, diversification, growth or modernization. Besides, the helping
corporate enterprise in securing their funds, the new issue market channelises
saving of individuals and others into investors.
Issuing companies and the investors respectively represents the two facets of
this market, i.e. supply and demand. Also there is participation of intermediaries,
which help, in selling, transferring, underwriting etc. These agencies include
financial institution, underwriters, brokers, merchant bankers, etc.
It must be noted that although the functions and organization of new issue
market are quiet different from that of the secondary (stock) market, the sentiment
in the stock market influence the activity of new issue market.
Successful issue of new securities is a highly specialized activity and
requires both experience and skill. There are number of methods of marketing new
issue of securities. And the choice of method selection depends upon number,
character and sentiment of prospective buyers.
2. FINANCIAL INSTITUTIONS
Specialized Financial Institutions are the most active constituent of the
Indian Capital Market. Such organizations provide medium and long-term loans on
easy installments to big business house. Such institutions help in promoting new
companies during economic depressions.
The need for establishing financial institutions was felt in many countries
immediately after the Second World War to reestablish war-shattered economies.
Need for such institution was more in underdeveloped countries.
Following are the main special financial institutions that are most active
constituents of the Indian Capital Market.

1. The industrial Finance Corporation of India. (I.F.C.I)

2. The Industrial Credit and Investment Corporation of India. (I.C.I.C.I)
3. The Refinance Corporation of India. (R.F.C.)
4. State Financial Development Corporation. (S.F.Cs.)
5. National Industrial Development Corporations. (N.I.D.C.)
6. State Industrial Development Corporations. (S.I.D.Cs.)
7. National Small Industries Corporations. (N.S.I.C.)
8. Industrial Development Bank of India. (I.D.B.I.)
9. Unit Trust of India. (U.T.I.)
10.Life Insurance Corporation of India. (L.I.C.)
11.Nationalized Commercial Banks. (N.C.B.)
12.Merchant Banking Institutions. (M.B.Is.)

3. STOCK MARKET
 Capital Market also includes Stock market. It is a place where securities
which have been issued the past are traded. It is a secondary market. In stock
market the participants are Stock Exchanges, Brokers and the investors. The
investors want liquidity of their investments. The securities, which they hold,
should be easily sold when they need cash. Similarly there are others who want to
invest in new securities. So there should be a place where securities should be
purchased and sold. Stock exchange provides such a place where securities of
different companies can be purchased and sold via stock market.
One can trade in stock market two ways:
1. On Market
2. Off Market
In On market trading is done via stock exchanges, where the buyer and seller
don’t know each other. But one can also trade Off market without the
interference of stock exchange may be through stock broker or not. For example:
Raja and Gandhi are neighbors, Raja wants to Sell the shares of Zodiac JRD, which
he holds and Gandhi is ready to buy them at that price they can enter into
contract off market.
DEBT MARKET:
Traditionally debt instruments are known for generating a predetermined income
for a given period of time, other than in cases of default. Hence they are also
known as fixed income instruments. The debt markets in advanced are
significantly larger and deeper than equity markets. But in India, the trend is just
the opposite. The development of debt market in India has not been as remarkable
as in the equity market. However the debt markets in India have undergone a
considerable change in the last few years. Characterized by regulated interest rates,
limited players and lack of trading earlier, the markets have become more
integrated and less regulated. The debt market in India is divided into two
categories:
 Government securities market consisting of Central Government and State
Government securities.
 Bond market consisting of FI bond, PSU bonds and Corporate
bonds/debentures.

3.4 PRIMARY AND SECONDARY MARKET:

There are two ways for investors to get shares from the primary and secondary
markets. In primary markets, securities are bought by way of public issue directly
from the company. In Secondary market share are traded between two investors.
PRIMARY MARKET
Market for new issues of securities, as distinguished from the Secondary
Market, where previously issued securities are bought and sold.A market is
primary if the proceeds of sales go to the issuer of the securities sold.This is part of
the financial market where enterprises issue their new shares and bonds. It is
characterized by being the only moment when the enterprise receives money in
exchange for selling its financial assets.
Stocks available for the first time are offered through new issue market. The issue
may be a new company or an existing company. These issues may be of new type
or the security used in the past. In the new issuing houses, investment bankers act
as the channel of distribution for the new issues. They take responsibility of selling
the stocks to the public.
THE FUNCTION OF PRIMARY MARKET:
The main service functions of the primary market are origination, under writing
and distribution. Origination deals with the origin of the view issue. The proposal
is analyzed in terms of the nature of security, the size of issue, timing of the issue
and floatation method of issue. Underwriting contract makes the shares predictable
and removes the elements of uncertainty in the subscription. Distribution refers to
the sale of the securities to the investors. This is carried out with the help of the
lead manager and broker to the issue.

IPO – INITIAL PUBLIC OFFERING

Public issues can be classified into Initial Public offerings and further
public offerings. In a public offering, the issuer makes an offer for new
investors to enter its shareholding family. The issuer company makes detailed
disclosures as per the DIP guidelines in its offer document and offers it for
subscription. Initial Public Offering (IPO) is when an unlisted company makes
either a fresh issue of securities or an offer for sale of its existing securities or
both for the first time to the public. This paves way for listing and trading of
the issuer’s securities.

IPO is new shares Offered to the public in the Primary Market .The first
time the company is traded on the stock exchange. A prospectus is issued to
read about its risk before investing. IPO is a company's first sale of stock to the
public. Securities offered in an IPO are often, but not always, those of young,
small companies seeking outside equity capital and a public market for their
stock. Investors purchasing stock in IPO’s generally must be prepared to
accept very large risks for the possibility of large gains. Sometimes, just before
the IPO is launched, Existing share Holders get very liberal bonus issues as a
reward for their faith in risking money when the project was new.

SECONDARY MARKET
 The market where securities are traded after they are initially offered in the
primary market. Most trading is done in the secondary market. To explain further,
it is Trading in previously issued financial instruments. An organized market for
used securities. Examples are the New York Stock Exchange (NYSE), Bombay Stock
Exchange (BSE),National Stock Exchange NSE, bond markets, over-the-counter
markets, residential mortgage loans, governmental guaranteed loans etc.The
secondary market is the financial market for trading of securities that have
already been issued in an initial private or public offering. Alternatively, secondary
market can refer to the market for any kind of used goods. The market that exists
in a new security just after the new issue, is often referred to as the aftermarket.
Once a newly issued stock is listed on a stock exchange, investors and speculators
can easily trade on the exchange, as market makers provide bids and offers in the
new stock.

3.5 PRODUCTS DEALT IN SECONDARY MARKET

EQUITY: The ownership interest in a company of holders of its common and
preferred stock. The various kinds of equity shares are as follows –

EQUITY SHARES: An equity share, commonly referred to as ordinary share also

represents the form of fractional ownership in which a shareholder, as a fractional
owner, undertakes the maximum entrepreneurial risk associated with a business
venture. The holders of such shares are members of the company and have voting
rights. A company may issue such shares with differential rights as to voting,
payment of dividend, etc.

RIGHTS ISSUE/ RIGHTS SHARES: The issue of new securities to existing

shareholders at a ratio to those already held.
BONUS SHARES: Shares issued by the companies to their shareholders free of
cost by capitalization of accumulated reserves from the profits earned in the earlier
years.

PREFERRED STOCK/ PREFERENCE SHARES: Owners of these kind of

shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be
paid regularly before dividend can be paid in respect of equity share. They also
enjoy priority over the equity shareholders in payment of surplus. But in the event
of liquidation, their claims rank below the claims of the company’s creditors,
bondholders / debenture holders.

CUMULATIVE PREFERENCE SHARES:A type of preference shares on

which dividend accumulates if remains unpaid. All arrears of preference dividend
have to be paid out before paying dividend on equity shares.

CUMULATIVE CONVERTIBLE PREFERENCE SHARES: A type of

preference shares where the dividend payable on the same accumulates, if not paid.
After a specified date, these shares will be converted into equity capital of the
company.

PARTICIPATING PREFERENCE SHARE: The right of certain preference

shareholders to participate in profits after a specified fixed dividend contracted for
is paid. Participation right is linked with the quantum of dividend paid on the
equity shares over and above a particular specified level.

SECURITY RECEIPTS: Security receipt means a receipt or other security,

issued by a securitisation company or reconstruction company to any qualified
institutional buyer pursuant to a scheme, evidencing the purchase or acquisition by
the holder thereof, of an undivided right, title or interest in the financial asset
involved in securitisation.
GOVERNMENT SECURITIES (G-Secs): These are sovereign (credit risk-free)
coupon bearing instruments which are issued by the Reserve Bank of India on
behalf of Government of India, in lieu of the Central Government's market
borrowing programme. These securities have a fixed coupon that is paid on
specific dates on half-yearly basis. These securities are available in wide range of
maturity dates, from short dated (less than one year) to long dated (upto twenty
years).

DEBENTURES: Bonds issued by a company bearing a fixed rate of interest

usually payable half yearly on specific dates and principal amount repayable on
particular date on redemption of the debentures. Debentures are normally secured/
charged against the asset of the company in favour of debenture holder.

BOND: A negotiable certificate evidencing indebtedness. It is normally unsecured.

A debt security is generally issued by a company, municipality or government
agency. A bond investor lends money to the issuer and in exchange, the issuer
promises to repay the loan amount on a specified maturity date. The issuer usually
pays the bond holder periodic interest payments over the life of the loan. The
various types of Bonds are as follows-

ZERO COUPON BOND: Bond issued at a discount and repaid at a face value.
No periodic interest is paid. The difference between the issue price and redemption
price represents the return to the holder. The buyer of these bonds receives only
one payment, at the maturity of the bond

CONVERTIBLE BOND: A bond giving the investor the option to convert the
bond into equity at a fixed conversion price.

COMMERCIAL PAPER: A short term promise to repay a fixed amount that is

placed on the market either directly or through a specialized intermediary. It is
usually issued by companies with a high credit standing in the form of a
promissory note redeemable at par to the holder on maturity and therefore, doesn’t
require any guarantee. Commercial paper is a money market instrument issued
normally for a tenure of 90 days.

TREASURY BILLS: Short-term (up to 91 days) bearer discount security issued

by the Government as a means of financing its cash requirements.
3.6 ACCOUNT OPENING
To avail the services of depository one requires opening an account with any of the
depository participants. The e-invest account is an account which allows a
customer electronic trading on the exchange. Through this unique three in one
trading every customer opening an e-invest account gets a bank saving account.

 You can open a Depository Participant (DP) Account, either through

sharekhan branches or through Sharekhan Franchisee center.

 There is no fee for opening DP accounts with SharekhanI. However, deposit

(refundable) will be levied towards services which can be adjusted towards
billing charges.

All investors have to submit their proof of identity and proof of address alongwith
the prescribed account opening form.

1. I. Proof of Identity : Your signature and photograph must be authenticated

by an existing demat account holder with the same DP or by a bank
manager. Alternatively, you can submit a copy of Passport, Voters Id Card,
Driving Licence or PAN card with photograph.

2. II. Proof of Address : You can submit a copy of Passport, Voters Id Card,
Driving Licence, PAN card with photograph, ration card or bank passbook
as proof of address.
You must remember to take original documents to the DP for verification.
 3. III Passport-size photograph.

DEMATERIALISATION:
Dematerialisation is the process by which a client can get physical certificates
converted into electronic balances maintained in its account with the DP.

FEATURES:

 Holdings in only those securities that are admitted for dematerialisation by

NSDL can be dematerialised.

 Structure of holding in the securities should match with the account structure
of the depositoryaccount
If the shares are in the name of X and Y it cannot be dematerialised in to the
account of either X or Y alone. Further, if the shares are in the name of X
first and Y second and the account is in the name of Y first and X second,
then these shares cannot be dematerialized in this account. The
dematerialisation process can be initiated only by X first and Y second and
for this a depository account will have to be opened in the name of X first
and Y second.

 Only those holdings that are registered in the name of the account holder can
be dematerialised.

REMATERIALISATION:
Rematerialisation is the process by which a client can get his electronic holdings
converted into physical certificates. The client has to submit the rematerialisation
request to the DP with whom he has an account. The DP enters the request in its
system which blocks the client's holdings to that extent automatically. The DP
releases the request to NSDL and sends the request form to the Issuer/ R&T agent.
The Issuer/ R&T agent then prints the certificates, despatches the same to the client
and simultaneously electronically confirms the acceptance of the request to NSDL.
Thereafter, the client's blocked balances are debited.
FEATURES:

 A client can rematerialise his dematerialised holdings at any point of time.

 The rematerialisation process is completed within 30 days.

 The securities sent for rematerialisation cannot be traded.

TRADES:

When an investor sells in a market trade i.e. through a broker, the flow of securities
happens as follow:

THE FLOW OF SECURITIES (MARKET TRADE) CAN BE SHOWN

This settlement of the trade happens on the investor giving his DP an instruction to
debit his account and credit the brokers account for the said quantity of shares and
the broker in turn giving his DP the instruction of delivering the sharestothe
clearing corporation. Thus, on the respective DPs executing the instructions the
transfer of securities takes place.

In case of a market purchase, the securites come into the brokers account from the
clearing corporation on payout, thenteh broker provides instructions to his DP to
transfer stocks into the investor account. If the investor has not availed of
automatic credit facility, then he should provide a receipt instruction to his DP.

In case of an off-market trade, the securities move from the seller to the buyer on
the execution of respective instructions by the respective DPs.
Thus, the flow of securities essentially depends upon the parties to the trade
providing the relevant instruction to the respective DPs at the appropriate time.

PLEDGE:
Pledge enables you to obtain loans against your dematerialised shares. So you get
liquidity without having to sell your shares.

You can pledge your shares and the money can be utilised to finance your personal
needs, or you can make further investments.

A highly simplified procedure may be availed of for pledging of securities in the

electronic mode. The pledged securities continue to be reflected in the DP account
of the pledger but the concerned securities are "blocked" and can not be used for
any transactions. As and when the pledge is to be removed, based on confirmations
received from both the pledger and the pledgee, the blocked securities will be
released to "Free Balance" of the account holder.

CORPORATE BENEFITS:
Corporate benefits are benefits given by a company to its investors. These may be
either monetary benefits like dividend, interest or non-monetary benefits like
bonus, rights, etc. NSDL facilitates distribution of corporate benefits.

CLIENT REGISTRATION PROCESS

FORM SUBMISSION

SCRUTINY

SEGREGATE
 OPEN A/C OR REJECT

BANK

VALID

FORM

INTIMATES

CPU

OPEN A/C OR REJECT

DP
 CHAPTER: 4
OBJECTIVES & SCOPE

Online share trading is not a new concept for India too.NSE has started it in
1992. Still share-trading is not very popular among middle class people and they
think it as risky investment. If we see the growth of the Sensex .It has increased
more than 15 times in 16 years. In 1992 it was at just 1000 and today it is
about15000. It was at 21000 in January 2008.
During research it was my aim to find out different aspects of online
trading and people’s interest about it . Which companies are popular among
them, how much they know about these things, how much are they satisfied etc.?
Meanwhile I was also looking for prospect customers also for Sharekhan
Ltd. Following are the main objectives of the research:

4.1 PRIMARY OBJECTIVES:

 To find out potential customer by creating awareness among the people
foropening D-mat a/c
 To study the awareness and interest of customers for online trading
services.
 To find out customer’s satisfaction level.

4.2 SCOPE OF THE STUDY:

 To find out customer’s overall perception about the system.
 To know what motivates prospective customer to think about going for
online share trading.
 To know what options are used by customer in online trading.
 To get information regarding the current market share of the company.
 To know competitors of Sharekhan in the market.
 CHAPTER: 5
ORGANISATION STRUCTURE

5.1 OVERALL ORGANISATIONAL STRUCTURE

HEAD OFFICE

REGIONAL HEAD QUARTERS

REGIONAL HEAD QUARTERS

REGIONAL HEAD QUARTERS

5.2 FUNCTIONS OF DEPARTMENTS

REGIONAL HEAD QUATERS

REGIONAL BRANCHQUATERS
 SUPPORT FUNCTION

OPERATIONS DIVISION

ISO CELL

BRANCHES

OPERATIONS DIVISION

ACCOUNTS

BROKING

SUPPORT FUCTION

SYSTEM

FPO

HRD

RIS

ADMN.PURCHASE

DP

5.3 MARKETING

HEAD OF THE BRANCH

 MARKETING MANAGER

TRAINEE

ASSISTANT

SALES EXE.

5.4 ACCOUNTS

ASSISTANT

DOCUMENTRY

ACCOUNTANT MANAGER

HEAD OF THE BRANCH

ACCOUNT MANAGER
5.5 HR & ADMINISTRATION

RECURTMENT

PAY ROLE

HR DEVOLPMENT

HEAD OF THE BRANCH

HRM
 TRAINEES

SALES EXE.

CHAPTER: 6
STOCK EXCHANGES

6.1 FUNCTIONS OF STOCK EXCHANGES

The importance of stock exchanges will be clear from the following functions
performed by stock exchanges:
1. ENSURES LIQUIDITY OF CAPITAL: The stock exchange provides a place
where shares and stock are converted into cash. It provides a ready market for
buyers and sellers of securities. If exchanges were not there many persons would
have fear of blocking their savings in securities.
2. CONTINUOUS MARKET FOR SECURITIES: The securities once listed
continue to be traded irrespective of the fact that owners go on changing.
Exchanges provide regular market for trading in securities.
3. EVALUATION OF SECURITIES: The investors can evaluate the worth of
their shares from price quoted at different stock exchanges for those securities.
The securities are quoted under free atmosphere of demand and supply and prices
are set on the basis of free market.
4. MOBILIZING SURPLUS SAVINGS: Through stock exchanges the investors
are given a safe platform to invest their savings. Hence stock exchanges play an
important role in mopping up surplus funds of investors.
5. HELPFUL IN RAISING NEW CAPITAL: The new concerns raise capital for
first time and the existing units increase their capital for further expansion and
diversification purposes. The new concerns get themselves registered so that the
shares they issue can be further traded at exchanges.
6. SAFETY IN DEALINGS: The dealings in stock exchanges are governed by
well defined rules and regulations of Securities contract act; 1956. There is no
scope of manipulating the transactions. Every transaction is done according to the
procedure laid done and there is no fear in minds of trading parties.
7. LISTING OF SECURITIES: Only listed securities can be traded in stock
exchanges. Every company desires of listing its securities will apply to the
exchange authorities. But listing is allowed after critical examination of capital
structure, management and prospectus of company. Hence provide security to a
limit but it does not guarantee the financial stability, so the investors should make
analysis before investing.
8. CLEARING HOUSE FOR BUSINESS INFORMATION: The companies
listing securities with exchange have to provide financial statements, annual
reports and other reports to ensure maximum publicity of corporations operations
and working. The economic and other information provided at stock exchanges
help companies to make their policies.
9. PLATFORM FOR PUBLIC DEPTS.: The stock exchanges are also organized
market for government securities. However there is no any provision for a separate
counter for government securities but these are traded through brokers dealing in
these securities.
10. FAIR PRICE DETERMINATION: The prices in the stock market are
determined by the interplay of forces of supply and demand. In stock exchange
there is active bidding and a two way auction takes place as a result there is a free
competition in the stock market. The price is determined where the bargain is
stuck.
Stock exchanges also perform other functions that are useful for tax
purposes and hence protect the investor’s interest by eliminating dishonest and
irregular practices in the brokerage of trade.

6.2 THE BOMBAY STOCK EXCHANGE

Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich
heritage. Popularly known as "BSE", it was established as "The Native Share &
Stock Brokers Association" in 1875. 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, 1956.The Exchange's pivotal and pre-
eminent role in the development of the Indian capital market is widely recognized
and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons
(AOP), the Exchange is now a demutualised and corporatised entity incorporated
under the provisions of the Companies Act, 1956, pursuant to the BSE
(Corporatisation and Demutualization) Scheme, 2005 notified by the Securities
and Exchange Board of India (SEBI).

With demutualization, the trading rights and ownership rights have been
de-linked effectively addressing concerns regarding perceived and real conflicts of
interest. The Exchange is professionally managed under the overall direction of
the Board of Directors. The Board comprises eminent professionals,
representatives of Trading Members and the Managing Director of the Exchange.
The Board is inclusive and is designed to benefit from the participation of market
intermediaries.

In terms of organization structure, the Board formulates larger policy issues

and exercises over-all control. The committees constituted by the Board are
broad-based. The day-to-day operations of the Exchange are managed by the
Managing Director and a management team of professionals.

The Exchange has a nation-wide reach with a presence in 417 cities and
towns of India. The systems and processes of the Exchange are designed to
safeguard market integrity and enhance transparency in operations. During the
year 2004-2005, the trading volumes on the Exchange showed robust growth.

6.3 THE NATIONAL STOCK EXCHANGE

The National Stock Exchange (NSE) is India's leading stock
exchange covering various cities and towns across the country.
NSE was set up by leading institutions to provide a modern, fully
automated screen-based trading system with national reach. The
Exchange has brought about unparalleled transparency, speed &
efficiency, safety and market integrity. It has set up facilities that
serve as a model for the securities industry in terms of systems,
practices and procedures. NSE has played a catalytic role in
reforming the Indian securities market in terms of microstructure,
market practices and trading volumes. The market today uses
state-of-art information technology to provide an efficient and
transparent trading, clearing and settlement mechanism, and has
witnessed several innovations in products & services viz.
demutualization of stock exchange governance, screen based
trading, compression of settlement cycles, dematerialization and
electronic transfer of securities, securities lending and borrowing,
professionalization of trading members, fine-tuned risk
management systems, emergence of clearing corporations to
assume counterparty risks, market of debt and derivative
instruments and intensive use of information technology.
MISSION
NSE's mission is setting the agenda for change in the securities markets in India.
The NSE was set-up with the main objectives of:

 establishing a nation-wide trading facility for equities, debt instruments and

hybrids,

 ensuring equal access to investors all over the country through an

appropriate communication network,

 providing a fair, efficient and transparent securities market to investors using

electronic trading systems,

 enabling shorter settlement cycles and book entry settlements systems, and

 Meeting the current international standards of securities markets.

 CHAPTER: 7
THEORETICAL PERSPECTIVE

Bringing together under one site all the relevant factors to enable an informed
investment is what online trading is all about. There are several terms which are
commonly used for online share trading :
1.DEMAT A/c – This is a account where dematerialization takes place.
Dematerialization is the process by which physical certificates of an investor are
converted to an equivalent number of securities form and credited into the
investor’s account with his/her DP.
2.DP – A depository participant is an agent of the depository through which it
interfaces with the investor.
3.DEPOSITORY – A depository is an organization which holds securities of
investor in electronic form at request at request of the investor through a registered
repository participant. It also provides services related to transactions in securities.
4. SAVING A/c - This is a regular bank a/c which is linked to D Mat a/c and
trading a/c. required amount of money is used for trading from saving a/c.

DEMAT

ACCOUNT

5. TRADING A/c – This is a a/c through which actual trading i.e. buying and
selling takes place. In online share trading all three accounts are interlinked.
TRADING ACCOUNT

SAVING ACCOUNT

6. LIMIT ORDER- A price higher or lower than you wanted, you need to place a
limit order rather than a market order. A limit order is an order to avoid buying or
selling a stock at order to buy or sell a security at a specific price. A buy limit order
can only be executed the limit price or higher. When you place a market, you can’t
control the price at which your order will be filled. Remember that your limit order
may never be executed because the market price may quickly surpass your limit
before your order can be filled. But by using a limit order you also protect yourself
from buying the stock at too high prices.
7.MARKET ORDER- Market order is an order to buy or sell stock at the current
market price. Unless you specify otherwise, your broker will enter your order as a
market order.
8. ORDER- Investors have several options when it comes to placing an order to
buy or sell the securities. For example, whether you place an order directly with
your broker or trade online, you can instruct your broker to buy or sell at a
specified price. Or you can place an order that is good for one day only or for an
extended period.
9. STOP ORDER- A stop order is an order to buy to sell a stock once the price of
the stock reaches the specified price, know as stop price. When the specified price
is reached, your stop order becomes a market order.
Buy stop order- Investors typically uses a stop order when buying stock to limit a
loss or protect a profit on short sell.
Sell Stop order- A sell stop order helps the investors to avoid further losses or to
protect a profit that exists if the stock price continues to drop. A stop order to sell
is always placed below the current market price.
10. SHORT SELL- A short sell is generally the sale of a stock you do not own.
Investors who sell short believe the price of the stock will fall. If the price of the
stock drops, you can buy the stock at lower price and make the profit. If the price
of the stock rises and you buy it back later at higher price, you will incur a loss.

CHAPTER: 8
SWOT ANALYSIS
8.1 STRENGTH:

1) EMPLOYE MOTIVATION POLICY

2) RESEARCH TEAM

3) GOOD INFRASTRUCTURE

4) HELTHY FINACIAL MARKET

5) USER FRIENDLY WEB SITE

8.2 WEAKNES

1) INSUFFICIENT ADVERTISEMENT POLICY

2) NO ACCESS TO THE RURAL MARKET

8.3 OPPORTUNITY

1-Sharekhan having goog customer relation strategy so that it create good

opportunity to create goodwill and capture the market.

2-Growing initial public offer create opportunity to capture the new market

3- Positive outlook of people towards financial product becouse most of

investor more about financial instrument and working strategy of stock
brokers.

8.4 THREATS

1) MARKET UNCERTAINTY

2) STIFF COMPETITION

3) NEW ENTRY IN TO MARKET

4) GOVERNMENT POLICY

CHAPTER: 9
RESEARCH METHODOLOGY

Marketing research is a systematic design, collection, analysis & reporting of

Data which is relevant to specific market situation .
My research process is as follows.

9.1 DEFINES THE PROBLEM AND RESEARCH OBJECTIVES

The objective of the research conducted was to study of consumer’s preference for
online share trading. Secondary objective of the survey was to know the customer’s
satisfaction level. My other objectives were to find out the overall perception about
the system and what motivates the people to think about going for online share
trading.

9.2 DEVELOPING RESEARCH PLAN

The second stage of marketing research calls for developing a most efficient plan for
gathering needed information. Designing a research plan calls for taking decision on
data sources research, approach, research instrument, sampling plan and contact
methods.

9.3 DATA SOURCE

There are two types of methods used in data collection i.e. primary data &
secondary data.
A) PRIMARY DATA
Those data which are collected at first hand by the researcher especially for the
purpose of the study ,are known as primary Data .The data is collected directly
from the person in sample population. In this project research the collection of data
is directly interviewing customer.In the collection of the primary data, I have used
survey method and use the questionnaire methods.
There are mainly two methods for the collection of the primary data which are
given below,
  Observational Method.
 Survey Method.

OBSERVATION METHOD:-
In the observation method, it requires the observer. The observer will keenly
observe the person at the time of the interview & record his behavior accurately. it is
also one of The important method for the collection of data but it requires good &
experienced observer who can observer The behavior of the respondent properly and
record it with great accuracy.
SURVEY METHOD:-
It is most popular method for the collection of necessary data from the respondents.
I have used survey method for the collection of the necessary data.
Different types of the survey are given below,
 Personal interview.
 Telephonic survey.
 Mail questionnaires.

PERSONAL INTERVIEW:-
In the personal interview, the interviewer will personally meet the respondent and
will take is interview. The interviewer will ask question in face to face direction to
the respondents or group of respondents.
TELEPHONIC SURVEY:-
In the telephonic interview, the interviewer will make call to respondents, inform the
respondents about the purpose of the call and then he will ask the related questions
to the respondents. This method is used, when the information to be collected is
limited. It is mostly used when information to be collected is limited.
MAIL QUESTIONNAIRE:-
In the mail questioner the interviewer will mail the questionnaire to the respondents
and inform them about the purpose of the survey. Also the time limit for the
questionnaire is specified in the mail. This method is used when the area to be
covered is large and the survey has to be conducted in the specific limit.
In my survey, I have used the personal interview to know customer awareness
towards online share trading. I have visited respondents personally.

B) SECONDARY DATA
Any data which had been gathered earlier for other purposes are secondary data in
hand of marketing research. These data has been collected from company dealer like
Dealer profile, industrial profile, company profile are collected from the internet.
The secondary data are collected from the magazines, internet and
Web -sites. Different web sites like www.sharekhan.com and GOOGLE
Search engine help in collecting the detailed information.
9.4 RESEARCH APPROACH
Out of 4 ways of research approaches i.e.
1. Observation research.
2. Survey Research
3. Focus Group research
4. Experimental research.
 In this project the approach used was survey approach because the main
objective of our survey was to study of the market potential and have an idea
about the customer awareness.
9.5 SAMPLING
Research instruments can be of two types firstly questionnaire methods and
secondly mechanical instruments. In this survey the research instrument was
questionnaire method.
9.6 SAMPLING PLAN:-
Sampling size : 50
Field Work area : Delhi City
Random sampling
SAMPLING PROCEDURE:-
The sampling Procedure can be of two types:
1. Probable Samplings
2. Non-probable sampling
In this survey expert Judgments sampling method can be used.
CONTACT METHODS:
The method of contacts can be four types
1. Mail Questionnaire
2. Personal Interview
3. Telephonic Interview.
4. Internet

9.7 STATEMENT OF PROBLEM

Problem definition is one of the most important parts of the study. It is very
important to properly define the problem. If the problem is properly defined then
it will provide proper guide line for the further study. The properly defined
problem will direct the surveyor on the proper path. And it is truly said that a
properly defined problem is a half solve.
Here the main problem is to study on the INVESTOR PREFERENCES FOR ONLINE
TRADING (IN DELHI). Market potential is nothing but the finding out potential
customers for the product of organization; which gives maximum profitability. To
find out market potential study of competitors; consumer behavior; brand
positioning is must which gives idea about the market scenario. Online share
trading –share trading is nothing but the buying and selling shares as per the
market position, this is done through broker. Broker-broker is the person who
brings buyer and seller together.
So the problem is to know the market potential of online share trading and the
popularity of online share trading among the people. It is also to know which
options are preferred by customers.
 CHAPTER: 10
DATA ANALYSIS

10.1 INVESTMENT OPTIONS

Investment Valid Cumulative

Option Person Percent % Percent % Percent %
Bank 2 4.0 4.0 4.0
Insurance 20 40.0 40.0 44.0
Post office 10 20.0 20.0 64.0
Mutual-fund 18 36.0 36.0 100.0
Total 50 100.0 100.0

INTERPRETATION

This shows that most of people, who are observed, are interested in investing
in Insurance or Mutual Fund. 20% people are also interested in investing in
Post office.

10.2 BRAND AWARENESS

Companies No. of Respondents Percentage %
ICICI 22 45%
Sharekhan 16 31%
Kotak Securities 07 14%
HDFC Securities 05 10%
Total 50 100%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Percentage of

People
ICICI
Sharekhan

Kotak

Securities

HDFC

Securities

BRAND AWARENESS

INTERPRETATION

ICICI was at the top of the mind of 45% people out of 100% and Sharekhan
securing second position with 31%, followed by Kotak and HDFC with 14%
and 10% respectively.
10.3 IS ONLINE TRADING EASY?

Percent Valid Cumulative

Ans Respondents % Percent % Percent %

Tota Yes 41 82.0 82.0 82.0

l
No 9 18.0 18.0 100.0

50 100.0 100.0
INTERPRETATION

This proves most of people accept that online trading is easy. This is a plus
point for stock trading companies.

10.4 DO YOU NEED TRAINING?

An
s. Responden Perce Valid Cumulative
 ts nt % Percent % Percent %

To Yes 42 84.0 84.0 84.0

tal
No 8 16.0 16.0 100.0

50 100.0 100.0

INTERPRETATION

This shows that people need proper training for using online trading
although it is easy.
10.5 SOURCES OF ADVERTISEMENT

Sources No. of Percentage %

Respondents
News papers& 32 64%
magazines
Friends 10 20%
Internet & Other media 08 16%
Total 50 100%

0%

10%

20%

30%

40%

50%

60%

70%

Percentage

Of people

News papers

& magazines

Friends
Other media

SOURCES OF ADVERTISEMENT

Internet & Other media

INTERPRETATION

63% people come to know about online share trading through news
paper and magazines whereas 20% people come to know through
friends and 17% people come to know through other media like
internet, news channel etc.
10.6 WHICH IS BETTER, NSE OR BSE?

Cumulativ
Responde Percent Valid e Percent
Opstion
nts % Percent % %

NSE 44 88.0 88.0 88.0

BSE 6 12.0 12.0 100.0

Total 50 100.0 100.0

NSE
INTERPRETATION

This shows that most people like NSE in comparison of BSE.

10.7 AWARENESS OF E-BROKING

Reply No. of Respondents Percentage %

Yes 20 40%
No 30 60%
Total 50 100%
 percentage of people Awareness of e-broking

60%
50%
yes
40%
No
30%
20%
10%
0%
1

Awareness of e-broking
percentage of people

60%

40% y…

20%

0%
1
INTERPRETATION:60% people were unfamiliar of the term e-broking and only
40% people aware were with the concept of e-broking.

10.8 KNOWLEDGE THROUGH COMPANY WEBSITE

Reply No. of Respondents Percentage %

Yes 22 43%
No 28 57%
Total 50 100%

0%

10%

20%

30%

40%

50%
60%

Percentage

Of people
Yes

No

KNOWLEDGE THROUGH COMPANY WEBSITE

INTERPRETATION

Out of the total sample size 43% people have visited the website of any e-
broking company and 57% people have not visited any website regarding e-
broking.
10.9 VISIT BY COMPANY REPRESENTATIVE

Reply No. of Respondents Percentage %

Yes 12 24%
No 38 76%
Total 50 100%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Percentage of

People
Yes

No

VISIT BY COMPANY REPRESENTATIVE

INTERPRETATION

Only 24% people who are interested in online share trading have been
visited by the representatives of the e-broking company and rest of the
73% people have not been visited.

10.10 INTEREST IN E- BROKING

Reply No. of Respondents Percentage %

Yes 48 96%
No 02 04%
Total 50 100%
0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Percentage

Of people
Yes

No

INTEREST IN E-BROKING
INTERPRETATION

Out of the total sample size 97% people found the concept of e-broking
interesting and 03% people do not find it interesting.

10.11 PREFERRED SYSTEMS OF SHARE TRADING

System No. of Respondents Percentage %

Online 26 52%
Traditional 21 42%
 Can’t say 03 06%
Total 50 100%

PREFERED SYSTEMS OF SHARE TRADING

52%

42%

6%

Online

Traditional

Can’t say
INTERPRETATION

Regarding the preferences towards the different systems of share

trading, online share trading emerged as a clear cut winner with 53%
people preferring it, followed by traditional with 41% while 06%
people were unable to answer.

10.12 TRADITIONAL- INFLUENCING FACTORS

Reason No. of Percentage

Respondents %
Dependence on broker 20 40%
Lack of computer 14 28%
knowledge
Fear of fraudulence 16 32%
Total 50 100%

TRADITIONAL- INFLUENCING FACTORS

40%

28%

32%

Dependence on broker
Lack of computer knowledge

Fear of fraudulence

INTERPRETATION

39% people opt for traditional system of share trading because of

there dependence on broker, 29% people opt for traditional system of
share trading because of the lack of computer knowledge and 32%
people wants to stick with traditional system due to fear of
fraudulence.
10.13 PREFERENCE FOR INVESTMENT

Valid
Option Percent Percent Cumulative
Respondents % % Percent %
* Largecap 40 80.0 80.0 80.0
** Midcap 8 16.0 16.0 96.0
*** Smallcap 2 4.0 4.0 100.0
Total 50 100.0 100.0
INTERPRETATION

By seeing this we can say that people prefer to invest in largecap companies.
It may be due to less risk.

* Largecap :-Companies worth $5 billion or more.

** Midcap :-Companies worth $1 billion to $5 billion.

*** Smallcap :-companies worth $250 million to $1 billion.

10.14 INFLUENCING FACTORS

Factors No. of Respondents Percentage %

Transparency 32 64%
Hassle Free Service 07 14%
Economical 06 12%
Time saving 05 10%
Total 50 100%

INFLUENCING FACTORS
64%

14%
12%

10%

Transparency

Hassle Free Service

Economical

Time saving

INTERPRETATION

Out of the four fascinating factors of online share trading transparency

is at the top as 64% people has voted for it followed by hassle free
with 14%, economical with 12% and time saving with 10%
respectively.

10.15 FUTURE PLANNING FOR ONLINE TRADING

 Reply No. of Respondents Percentage %
Yes 26 52%
No 22 44%
Can’t say 02 04%
Total 50 100%

FUTURE PLANNING FOR ONLINE TRADING

52%

44%

4%

Yes

No

Can’t say

Percentage of people
INTERPRETATION

Out of the total sample size 53% people are planning to go for online
share trading and 43% people do not want to go for it while 4%
people have not yet decided.

10.16 REASONS FOR NOT ENTERING INTO E-BROKING

Reasons No. of Respondents Percentage %

Relationship with 27 54%
broker
Trade rarely 15 30%
Other reasons 08 16%
Total 50 100%
0%

10%

20%

30%

40%

50%

60%

Percentage of

People
Relationship

With broker

Trade rarely

Other reasons

REASONS FOR NOT ENTERING INTO E-BROKING

INTERPRETATION

55% people do want to do online share trading because they have

good relationship with there broker, 30% people trade rarely and 15%
have some other reasons.
 CHAPTER: 11
FINDINGS AND OBSERVATIONS

 It is found that people who were observed, they are yet investing in
Insurance. And mutual funds are also a good option for them. Post office
was 3rd favorable option for investing. It may be due to less knowledge of
Share market as well as it is considered risky.
 ICICI is found to be most popular among all. People are well aware of
various services providers like sharekhan.com, kotakstreet.com,
hdfcsecurities.com. Professionals and executive category are found to be in
favor of the online share trading. They showed interest in going for online
share trading.
 It is also seen that people think that online trading is convenient and easy to
operate but they also need initial guidance and training. So it must be
provided to them so that they can trade comfortably via online.
 According to most of the people observed NSE is better than BSE.
 People prefer to invest in largecap companies because of less risk.
 News and magazines are found to be of major source of information.
 93% people found to be aware of online trading of securities.
 43% people said that they have visited at least one of the websites for the
online share trading concept.
 The representative of at least one service provider has visited 24% people.
 90% of the total population agrees that the concept is easy, convenient &
interesting.
 Still only 53% people are sure to go for online share trading. 41% people
rarely want to go for online trading.
 People have highly voted for transparency feature of the online trading
followed by hassle free service, economical and time saving features.
 Business class prefer off line share trading as most of them have good
relationship with their broker.
 Business class which can be defined as the people who are self employed
entrepreneurs are found to be less interested and would like to stick to the
traditional system and are much dependent on their broker regarding
investments.
.
 CHAPTER: 12
LIMITATIONS

There is no activity without limitations so it had too. The main Limitation has been
faced during project research are as follows:-

 The research has been carried on time span of one an half month.
 The research is totally based on the personal opinion of the respondents
which may vary depending upon their personal view.
 The research has done along with achieving our target given by company.
 People’s response was also not favorable.
 Due to instability of market people were afraid of it, so they were less
interested in these things.
 CHAPTER: 13
SUGGESTIONS AND RECOMMENDATIONS

1. Although people have heard about online trading of securities still people
have great doubt about its operational feasibility as they are not clear about
the concept. Special awareness programs using various media mixes should
be carried out to remove fear from the minds of people and make it
familiarize.
2. More emphasis should be laid on the convenience that the trading facilities
offer by either introducing kiosks in the centre where the clients could have
a demonstration for themselves and understand the various features of the
product. This could help them determine how conventional mode of trading
is.
3. There are large numbers of prospective customers, who trades in small
volume or make infrequent transactions or like to hold the stock as a long
term investment. The current price structures are not at all suitable for such
population. E- Trading companies should look at such class.
4. Awareness campaigns like giving idea about futures and options,
derivatives, dividend policies will create interest in online trading. And this
helps organization for market positioning as well as mind positioning.
5. Sharekhan.com can go for banking business as it has large customer base.
Generally e-trading are not in banking business but this can be done as it
 will provide convenience. Many times customer faces problem because of
lack of coordination between management of e-trading company and bank.
6. Development in public relation management and customer relationship
management will lead organization towards strong brand image as well
goodwill.
7. Comparative study of customer care and services provide by other
companies will help develop business strategies as well business policies.
8. Seminars can be conducted at corporate level so as to increase potential
customer base. Corporate people do not go for share trading due to lack of
time. This kind of seminar will motivate them and make them aware about
e-trading.
9. Tie-up with banks will facilitate the customer as maximum customers have
their salary accounts in banks and this account can be used for net banking
as well share trading.
 CHAPTER: 14
CONCLUSION

Shares are the best kind of investment available over a long period of time.
And also share market is a place where money earns money. For investing in share
market every investor needs to have an agreement with a Depository Participants.
Depository Participants are the one who provide the services of DEMAT.
Sharekhan is very well known among the investors but from the analysis I
found that ICICI Direct Securities is one of the major competitors. During my
research I found that there is a large market which is untapped, as most of people
find the concept of online share trading very interesting but none of them have been
visited by the representative of any company.
During my research I also found that many people want to stick with the traditional
system of share trading because of lack of computer knowledge and also many
people are dependent of their personal broker. In the research I observed that
Sharekhan limited is not effective in the advertisement of its products.
 CHAPTER: 15
ANNEXURE

QUESTIONNAIRE

PERSONAL INFORMATION:

1. Name:
2. Gender: (a) Male (b)Female 3. Address:
4. Contact No.:

5. Age
(a) Between 20-22 years (b) Between 22-25years
(c) Between 25-30years (d) Above 30 years

6. Are you married?

(a) Yes (b) No

7. Education
(a) Postgraduate (b) Graduate
(c) 12th (d) below 12th

8. Are you employed?

(a) Yes (b) No
 9. What is your monthly income? (In Rs)
(a) Below 10000/-
(b) Between 10000-20000/-
(c) Between 20000-30000/-
(d) Above 30000/-
RESEARCH-QUESTIONS:

10. Which is the best investment-option for you?

(a)Bank (b) Insurance
(c)Post office (d) Mutual Funds
(e) Others

11. If yes, which company’s DEMAT a/c do you have?

(a)Sharekhan (b) ICICI
(c)Kotak Securities(d) HDFC

12. Which is the best company according to you?

(a)Sharekhan (b) ICICI
(c)Kotak Securities (d) HDFC

13. Do you agree that online trading is easy & convenient?

(a) Yes (b) No

14. Do you need training for online trading?

(a) Yes (b) No

15. How do you know about Sharekhan?

(a) News Paper (b) friend
 (c) Internet & Other media

16. Which is better according you?

(a) NSE (b) BSE

17. Are you interested to open a DEMAT a/c. with Sharekhan?

(a) Yes (b) No
18. Do you collect information which is shows on company website?
(a) Yes (b) No

19. Have you been visited by company representative?

(a)Yes (b) No

20. Are you interested in e-broking?

(a) Yes (b) No

21. Which is your preference for share trading?

(a) Online (b) Traditional
(c) Can’t say

22. Which is your traditional influencing factor?

(a) Dependent on broker
(b) Fear of fraudulence
(c) Lack of computer information

23. Which is your preference for investing?

(a) Large-cap (b) Mid-cap
 (c) Small-cap

24. Which is your Influencing factor?

(a) Transparency (b) ICICI
(c) Hassle free service (d) Time saving

25. Do you have future planning for online trading?

(a) Yes (b) No
(c) Can’t say

26. What is reason for not entering in E-Broking?

(a) The Relationship with broker
(b) Trade rarely
(c) Other reason