Sony Project - CD

Online Trading at Karvy Stock Broking Ltd.
STUDY
ON
ONLINE TRADING
AT
KARVY STOCK BROKING

Submitted in Partial Fulfillment of the Requirement for the Award of Degree of
MASTER OF BUSINESS ADMINISTRATION
BY
S. VIJAY NIRMALA
H.T NO: 1174-14-672-059
UNDER THE GUIDANCE OF
Mrs. K.B. SARALA
S.D SIGNODIA COLLEGE OF ARTS & COMMERCE & P.G CENTRE

AFFILATED TO OSMANIA UNIVERSITY
CHARKAMAN, HYDERBAD -500002.
(2014 – 2016)
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2
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ACKNOWLEDGEMENT
I am extremely grateful to Mr. G. Ashok Kumar, Manager of karvy stock broking for
giving me permission to carry out the project work in the organization.
I would like to thank all the staff members of karvy stock broking for the help extended in
my project work.
I would also like to express my sincere gratitude to Dr. Pallavi K. Ranganath, Director of
Shankerlal Dhanraj Signodia College of Arts & Commerce & P.G Centre. Mrs. K.B.
Sarala, my project guide of College.
I am also very thankful to my friends who have helped me in completing this project work.
A feeling of indebtedness extends itself to all who have directly or indirectly helped me in my
endeavor.
S. VIJAY NIRMALA
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DECLARATION
I S. Vijay Nirmala hereby declare that this Project Report titled “A Study On Online
Trading at karvy stock broking submitted by me to the Department of Business
Management, Shankerlal Dhanraj Signodia College of Arts & Commerce & P.G Centre
Affiliated To Osmania University, Hyderabad, is a bonafide work undertaken by me and it
is not submitted to any other University or Institution for the award of any degree / diploma
certificate or published any time before.
Place: Hyderabad
Date: Signature of the student
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ABSTRACT
Traditionally stock trading is done through stockbrokers, personally or through
telephones. As number of people trading in stock market increase enormously in last few
years, some issues like location constrains, busy phone lines, miss communication etc start
growing in stock broker offices. Information technology (Stock Market Software) helps
stockbrokers in solving these problems with Online Stock Trading.
Online Stock Market Trading is an internet based stock trading facility. Investor can
trade shares through a website without any manual intervention from Stock Broker.
In this case these Online Stock Trading companies are stock broker for the investor.
They are registered with one or more Stock Exchanges. Mostly Online Trading Websites in
India trades in BSE and NSE.
The scope of the project is to clearly understand online trading by studying in a
detailed manner. The traditional way of manual trading is replaced by online trading for the
purpose of fast interaction of shares and easy access ability and to avoid delays in transaction.
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INDEX
CHAPTER.
TITLE Page. No:
NO:
INTRODUCTION
OBJECTIVES
1 SCOPE 1-7
RESEARCH METHODOLOGY
LIMITATIONS
2 REVIEW OF LITERATURE 8-46
3 COMPANY PROFILE 47-57
DATA ANALYSIS
4
& INTERPRETATIONS 58-73
FINDINGS, SUGGESTIONS & CONCLUSION

5 74-78
BIBLIOGRAPHY
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CHAPTER-I
INTRODUCTION
8
INTRODUCTION
India is well-established securities market with long history of organized trading. The
growth in the stock exchanges of the country is spectacular and can be attributed to increase
in the number of instruments offered, listed companies and tight credit policy of banks. As a
result of which Indian corporate sector has been relying upon capital markets for raising
funds for their needs. Consequently, a large population of the investors small and big has
been created in India.
The project I undertaken in this context is to study ONLINE TRADING and growth
of STOCK EXCHANGE.
ONLINE TRADING
Online trading is a service offered on the internet for purchase and sale of shares. In
the real world you place orders on your stockbroker either verbally (personally or
telephonically) or in a written form (fax).” In online trading, you will access a stockbroker’s
website through your internet enabled PC and place orders through the broker’s internet
based trading engine. These orders are routed to the stock exchange without manual
intervention and executed thereon in a matter of a few seconds. The net is used as a mode of
trading in internet trading. Orders are communicated to the stock exchange through website.
Procedure for Net Trading:
Step 1: Those investors, who are interested in doing the trading over internet system i.e.
NEAT-IXS, should approach the brokers and get them self registered with the Stock Broker.
Step 2: After registration, the broker will provide to them a Login name, Password and
personal identification number (PIN).
Step 3: Actual placement of an order. An order can then be placed by using the place order
window as under:
(a) First by entering the symbol and series of stock and other parameters like
quantity and price of the scrip on the place order window.
9
(b) Second, fill in the symbol, series and the default quantity.
Step 4: It is the process of review. Thus, the investor has to review the order placed by
clicking the review option. He may also re-set to clear the values.
Step 5: After the review has been satisfactory, the order has to be sent by clicking on the send
option.
Step 6: The investor will receive an "Order Confirmation" message along with the order
number and the value of the order.
Step 7: In case the order is rejected by the Broker or the Stock Exchange for certain reasons
such as invalid price limit, an appropriate message will appear at the bottom of the screen. At
present, a time lag of about 10 seconds is there in executing the trade.
Step 8: It is regarding charging payment, for which there are different mode. Some brokers
will take some advance payment from the investor and will fix their trading limits. When the
trade is executed, the broker will ask the investor for transfer of funds to his account.
STOCK EXCHANGE:
The stock exchange is an organized market for purchase and sale of listed industrial
and financial securities. The securities traded on stock exchanges included shares and
debentures of public limited companies, govt. securities etc. according to securities contract
[regulations] act-1956, “stock exchanges is an associations, organization or body of assisting,
regulating and controlling business in selling and securities.”
History of Stock Exchange

Stock exchanges are the most perfect type of market for securities, whether of govt.
and semi-govt. bodies and also for shares and debentures issued by the joint stock companies
in the stock market, purchases and sale of shares are made in conditions of free competition.
Govt. securities are traded outside the trading ring in the form of over the counter sale or
purchase.
The bargains that are stuck in the trading ring by the members of the stock exchanges
are at the fairest prices determined by the basis laws of demand and supply. The only stock
exchanges operating in the 19th century were those of Bombay, set up in 875 and Ahmadabad,
set up in 1894.
10
These were organized as voluntary non-profit making association of brokers to

regulate and protect their interests before the control on securities, trading became a central
subject and the Bombay securities. Under this act, the Bombay stock exchange was
recognized in 1927 and Ahmadabad and other centers, but they were not recognized.
Soon after they become a central subject, central legislation was proposed and a
committee, headed by A.D GORWALA went into the bill of securities contract, which
became law in 1956.
Growth of Stock Exchanges in India

The stock market activities in India were relatively on a low key during the beginning
of the decade of 80’s mainly because of the allies regime till 947. Afterwards, the government
of India concentrated more on administration and less on development and pursuit of the
philosophy of public sector dominating the economy Stock exchanges were placed under the
exclusive regulation of the government through proclamation in 1930 of the constitution of
India.
During the 1950’s & 1960’s Indian economy was dominated by the public sector,
which was considerate as the major vehicle for economic and industrial development. This
trend has changed since mid 80’s with liberalization of government polices and greater
freedom given to private sector.
This policy of progressively deregulating the economy led to the emergence of stock
markets as a major instrument of finance for industry and trade. India can boast of being one
of the oldest stock market in Asia. The Bombay stock exchange (BSE) as founded in 1875,
while the London stock exchange was established in 1773.
Bombay Stock Exchange

The Bombay stock exchange (BSE) started as an association of just 6 dealers. The
number later grow to 300 in 1875, and then to 361 in 1909 and in 1917, there were 451
dealers. Premchand roychand was the prominent associated with the exchange and he was the
first broker who could both speak and write English.
Prior to 1914, trading or BSE was confined to a few scrip’s, particularly of cotton
textiles, ginning & pressing companies. The stock exchange has many firsts to its credit.
 BSE was the first stock exchange to be established in India.
11
 The exchange was the first to be recognized under the securities contract act, 1956.
 It was the first exchange in the country to have a permanent building with the trading
hall.
 The exchange took the initiative in switching over to the screen based trading (SBT)
in 1995.
The Bombay stock exchange transacts about two thirds of the business in the country.
It registered the highest per hour velocity of transactions next only to Taipei (June-oct 1990).
The exchange helps materially to make Mumbai, the chief center of money and capital
markets and contributes in no small measure to the importance of the city as ‘financial capital
of India’.
OBJECTIVES OF STUDY
 The primary objective is to analyze the changes in trading after the exchange shifted
from outcry to online trading system.
 The secondary objective is to study the functions of the Stock Exchange and through
various departments.
 Trace the growth of Stock exchange since its inception till date and to study online
trading procedures.
 To know about the latest and future development in stock exchange trading system.
Clearly defining each and every term of the stock exchange trading procedures.
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SIGNIFICANCE OF THE STUDY
The present study “to review the online trading procedures” a caste study of stock
exchange as the exchanged has changed from outcry system to online trading system on 31
January 2009, there is need to access the performance on the capital market.
NEED OF THE STUDY
Stock exchanges are the integral part of the capital market. It is the most perfect type
of the capital market for securities whether of govt. bodies or other public bodies as for
shares and debentures issued by the stock enterprise.
Stock exchange provides liquidity to the listed co.’s they give quotations to the listed
co. and help in Handing, raising funds from the market stock. Exchanges provide ready
marketability and unequalled facility for the transfer of ownership of stock shares and
securities.
Stock market in India is more than century old and has functioning effectively
through the medium of recognized stock exchange the stock market which is integral part of
the capital as major impact on the functioning of the economy in turn the monsoon and
agricultural, industrial growth and performance of the corporate sector in particular reflection
the fundamentals in the economy would influenced the some of capital stock markets and
since the capital market in playing a major role in the Indian economy from the past several
years there is an essential need to study the tone of the capital markets in India.
SCOPE OF THE STUDY
 This study also includes knowing the performances of Stock Exchange.
 This study is about the process and how the online trading will function.
 The scope of the study analyses us to know the online trading activities are carried out
in stock Exchange.
 The scope of the study is limited to studying and analyzing the general functioning of
stock Exchange.
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METHODOLOGY
More points to be included
Data collection method includes primary and secondary data.
 Primary Collection Method: This method includes the data collected from the
personal discussions with the authorized clerks and members of exchange.
 Secondary Collection Method: The secondary collection method includes the lecture
of the superintend of the department of market operations EDP etc, also the data
collected from the new magazines of the NSE, HSE and Bombay Stock Exchange and
different books relating to the issue of the study.
LIMITATIONS OF THE STUDY
 The project deals with only the general functioning of Stock Exchange.
 The study is confined to all related issues in brief.
 The reference period of the project covers one month Nov 2014, over which price
fluctuations for the above mentioned scrip’s were analyzed.
 The figures, which are given, are based on the information provided by the star
employees of the Stock exchange
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CHAPTER-II
LITERATURE OF REVIEW
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INDIAN ECONOMIC SCENARIO
The economic development of any country depends upon the existence of a well-
organized financial system. “Financial system” is a border term, which brings financial
institutions, which support the financial system.
At the time of independence in India at 1947 there was no strong financial

institutional mechanism in the country. The industrial sector also had no access to the savings
of the community. The capital market was very primitive and shy. The private as well as the
unorganized public sector played a key role in the provision of “liquidity” on the whole
chaotic conditions prevailed in the system at that time.
With the adoption of the theory of mixed economy, the development of the financial
system took a different turn so as to socio-economic and political objectives. The government
stared creating new financial institutions to supply finance both for agriculture and industrial
development and it also progressively started nationalizing some important financial
institutions.
The main function of financial system is to mobilize the savings and invest them in
productive ventures. Thus the financial system provides the intermediation between the
savers and the investors and promotes faster economic development.
Unorganized sector:
In these markets, there are a number of money lenders indigenous bankers, traders
etc., who lend money to public. There are also private finance companies, chit funds etc,
whose activities are not controlled by RBI.RBI has taken steps to bring the unorganized
sector under the organized fold. They have not been successful. The regulations concerning
their financial dealings are still inadequate and their financial instruments have not been
standardized.
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FOLLOWING DIAGRAM GIVES THE STRUCTURE OF INDIAN FINANCIAL

SYSTEM:
17
FINANCIAL MARKET:
In the organized markets, there are standardized rules and regulations governing their
financial dealings. There is also a high degree of institutionalization. These markets are
subject to strict supervision and control by RBI or other regulatory bodies. The organized
markets are classified into two.
(i) Money market

(ii) Capital market
MONEY MARKET:
Money market is a place where we can raise short-term capital.

Again the money market is classified in to
 Inter bank call money market
 Bill market and
 Bank loan market Etc.
 E.g.; treasury bills, commercial papers, CD's etc.
CAPITAL MARKET:
The capital market is a market for financial assets, which have a long or indefinite
maturity. It deals with long-term securities, which have a maturity period of above 1 year.
Capital market may be further divided into three viz.
1. Industrial securities market.

2. Government securities market and
3. Long term loans market
Industrial securities Market:
As the name implies, it is a market for industrial securities, viz.
1. Equity shares
2. Preference shares
3. Debentures
This industrial securities market is sub divided into two. They are:
1. Primary or New issue market
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2. Secondary market or Stock exchange.

Primary Market:
Primary market is a market for new issues or new financial claims. It deals with
public for the first time. Here borrows exchange new financial securities for long term funds.
Secondary market:
Secondary market is a market for secondary sales of securities. In other words,

securities, which have already passed through the new issue market, are traders in this
market. Generally, such securities are quoted in the stock exchange and it provides a
continuous and regular market for buying and selling of securities. This market consists of all
stock exchanges in India are regulated under the securities contracts (Regulations) act 1956.
The Bombay Stock Exchange is the principal stock exchange in India, which sets the tone of
the other stock market.
Secondary Stock Market Structure
Regular Stock Over the counter National stock
Exchange (21A) Exchange of India Exchanges (1)
Exchanges (1)
For big companies with paid up Computerized trading for Recognized in April 1993
capital above Rs.5 crores as the case smaller companies with and started operations late
may be trading and physical paid up capital of Rs.30 only in Govt. securities and
operations includes principal Lakhs to Rs. 25 crores No. money market instruments.
exchange like Bombay, Calcutta, trading ring started Equity trading started in
Delhi etc., and regional exchanges operations in October 1992. November 1994.
like Cochin, Indore etc., The B.S.C., The upper limit of Rs.25 Computerized trading with
H.S.C., and D.S.C., are on crores was removed in country wide trading
electronic trading and other 1997. network.
exchanges are also getting into the
electronic firm.
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STOCK EXCHANGE:
What is a stock exchange

The stock exchange is an organized market for purchase and sale of listed industrial
and financial securities. The securities traded on stock exchanges included shares and
debentures of public limited companies, govt. securities etc. according to securities contract
[regulations] act-1956, “stock exchanges is an associations, organization or body of assisting,
regulating and controlling business in selling and securities.”
History of Stock Exchange

Stock exchanges are the most perfect type of market for securities, whether of govt.
and semi-govt. bodies and also for shares and debentures issued by the joint stock companies
in the stock market, purchases and sale of shares are made in conditions of free competition.
Govt. securities are traded outside the trading ring in the form of over the counter sale or
purchase. The bargains that are stuck in the trading ring by the members of the stock
exchanges are at the fairest prices determined by the basis laws of demand and supply.
The only stock exchanges operating in the 19th century were those of Bombay, set up
in 875 and Ahmadabad, set up in 1894. These were organized as voluntary non-profit making
association of brokers to regulate and protect their interests before the control on securities,
trading became a central subject and the Bombay securities. Under this act, the Bombay stock
exchange was recognized in 1927 and Ahmadabad and other centers, but they were not
recognized. Soon after they become a central subject, central legislation was proposed and a
committee, headed by A.D GORWALA went into the bill of securities contract, which
became law in 1956.
Growth of Stock Exchanges in India

The stock market activities in India were relatively on a low key during the beginning
of the decade of 80’s mainly because of the allies regime till 947. Afterwards, the government
of India concentrated more on administration and less on development and pursuit of the
philosophy of public sector dominating the economy Stock exchanges were placed under the
exclusive regulation of the government through proclamation in 1930 of the constitution of
India.
20
During the 1950’s & 1960’s Indian economy was dominated by the public sector,
which was considerate as the major vehicle for economic and industrial development. This
trend has changed since mid 80’s with liberalization of government polices and greater
freedom given to private sector.
This policy of progressively deregulating the economy led to the emergence of stock
markets as a major instrument of finance for industry and trade. India can boast of being one
of the oldest stock market in Asia. The Bombay stock exchange (BSE) as founded in 1875,
while the London stock exchange was established in 1773.
Regulatory Frame Work of Stock Exchange
A comprehensive legal framework was provided by the “Securities Contract

Regulation Act, 1956” and “Securities Exchange Board of India 1952”. Three tier regulatory
structure comprising
 Ministry of finance
 The Securities and Exchange Board of India
 Governing body
Members of the stock exchange:

The securities contract regulation act 1956 has provided uniform regulation for the
admission of members in the stock exchanges. The qualifications for becoming a member of
a recognized stock exchange are given below:
 The minimum age prescribed for the members is 21 years.
 He should be an Indian citizen.
 He should be neither a bankrupt nor compound with the creditors.
 He should not be convicted for fraud or dishonesty.
 He should not be engaged in any other business connected with a company.
 He should not be a defaulter of any other stock exchange.
 The minimum required education is a pass in 12th standard examination.
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SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

The securities and exchange board of India was constituted in 1988 under a resolution
of government of India. It was later made statutory body by the SEBI act 1992.according to
this act, the SEBI shall constitute of a chairman and four other members appointed by the
central government.
With the coming into effect of the securities and exchange board of India act, 1992
some of the powers and functions exercised by the central government, in respect of the
regulation of stock exchange were transferred to the SEBI.
Objectives and Functions of Sebi
 To protect the interest of investors in securities.

 Regulating the business in stock exchanges and any other securities market.
 Registering and regulating the working of intermediaries associated with
securities market as well as working of mutual funds.
 Promoting and regulating self-regulatory organizations.
 Prohibiting insider trading in securities.
 Regulating substantial acquisition of shares and take over of companies.
 Performing such functions and exercising such powers under the provisions of
capital issues (control) act, 1947and the securities to it by the central government.
SEBI GUIDELINES TO SECONDARY MARKETS: (STOCK EXCHANGES):
 Board of Directors of Stock Exchange has to be reconstituted so as to include non-

members, public representatives and government representatives to the extent of 50%
of total number of members.
 Capital adequacy norms have been laid down for the members of various stock
exchanges depending upon their turnover of trade and other factors.
 All recognized stock exchanges will have to inform about transactions within 24 hrs.
Types of orders:
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Buy and sell orders placed with members of the stock exchange by the investors. The
orders are of different types.
Limit orders: Orders are limited by a fixed price. E.g. ‘buy Reliance Petroleum at
Rs.50.’Here, the order has clearly indicated the price at which it has to be bought
and the investor is not willing to give more than Rs.50.
Best rate order: Here, the buyer or seller gives the freedom to the broker to execute the
order at the best possible rate quoted on the particular date for buying. It may be
lowest rate for buying and highest rate for selling.
Discretionary order: The investor gives the range of price for purchase and sale. The broker
can use his discretion to buy within the specified limit. Generally the approximation
price is fixed. The order stands as this “buy BRC 100 shares around Rs.40”.
Stop loss order: The orders are given to limit the loss due to unfavorable price movement in
the market. A particular limit is given for waiting. If the price falls below the limit,
the broker is authorized to sell the shares to prevent further loss. E.g. Sell BRC
limited at Rs.24, stop loss at Rs.22.
Buying and selling shares: To buy and sell the shares the investor has to locate register
broker or sub broker who render prompt and efficient service to him. The order to
buy or sell specifying the number of shares of the company of investors’ choice is
placed with the broker. The order may be of any type. After receiving the order the
broker tries to execute the order in his computer terminal. Once matching order is
found, the order is executed. The broker then delivers the contract note to the
investor. It gives the details regarding the name of the company, number of shares
bought, price, brokerage, and the date of delivery of share. In this physical trading
form, once the broker gets the share certificate through the clearing houses he
delivers the share certificate along with transfer deed to the investor. The investor
has to fill the transfer deed and stamp it. The stamp duty is one of the percentage
considerations, the investor should lodge the share certificate and transfer deed to
the register or transfer agent of the company. If it is bought in the DEMAT form, the
broker has to give a matching instruction to his depository participant to transfer
shares bought to the investors account. The investor should be account holder in any
of the depository participant. In the case of sale of shares on receiving payment from
the purchasing broker, the broker effects the payment to the investor.
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Share groups: The scrips traded on the BSE have been classified into ‘A’,’B1’,’B2’,’C’,’F’
and ‘Z’ groups. The ‘A’ group represents those, which are in the carry forward
system. The ‘F’ group represents the debt market segment (fixed income securities).
The Z group scrips are of the blacklisted companies. The ‘C’ group covers the odd
lot securities in ‘A’, ‘B1’&’B2’ groups.
ROLLING SETTLEMENT SYSTEM:

Under rolling settlement system, the settlement takes place n days (usually 1, 2, 3 or
5days) after the trading day. The shares bought and sold are paid in for n days after the
trading day of the particular transaction. Share settlement is likely to be completed much
sooner after the transaction than under the fixed settlement system.
The rolling settlement system is noted by T+N i.e. the settlement period is n days after
the trading day. A rolling period which offers a large number of days negates the advantages
of the system. Generally longer settlement periods are shortened gradually.
SEBI made RS compulsory for trading in 10 securities selected on the basis of the
criteria that they were in compulsory demat list and had daily turnover of about Rs.1 crore or
more. Then it was extended to “A” stocks in Modified Carry Forward Scheme, Automated
Lending and Borrowing Mechanism (ALBM) and Borrowing and lending Securities Scheme
(BELSS) with effect from Dec 31, 2001.
SEBI has introduced T+5 rolling settlement in equity market from July 2001 and
subsequently shortened the cycle to T+3 from April 2002. After the T+3 rolling settlement
experience it was further reduced to T+2 to reduce the risk in the market and to protect the
interest of the investors from 1st April 2003.
Activities on T+1: conformation of the institutional trades by the custodian is sent to
the stock exchange by 11.00 am. A provision of an exception window would be available for
late confirmation. The time limit and the additional changes for the exception window are
dedicated by the exchange.
The exchanges/clearing house/ clearing corporation would process and download the
obligation files to the broker’s terminals late by 1.30 p.m on T+1. Depository participants
accept the instructions for pay in securities by investors in physical form upto 4 p.m and in
electronic form upto 6 p.m. the depositories accept from other DPs till 8p.m for same day
processing.
24
Activities on T+2: The depository permits the download of the paying in files of
securities and funds till 10.30 a.m on T+2 from the brokers’ pool accounts. The depository
processes the pay in requests and transfers the consolidated pay in files to clearing
House/clearing Corporation by 11.00am/on T+2. The exchange/clearing house/clearing
corporation executes the pay-out of securities and funds latest by 1.30 p.m on T+2 to the
depositories and clearing banks. In the demat mode net basis settlement is allowed. The buy
and sale positions in the same scrip can be settled and net quantity has to be settled.
BOMBAY STOCK EXCHANGE

The Bombay stock exchange (BSE) started as an association of just 6 dealers. The
number later grow to 300 in 1875, and then to 361 in 1909 and in 1917, there were 451
dealers. Premchand roychand was the prominent associated with the exchange and he was the
first broker who could both speak and write English.
Prior to 1914, trading or BSE was confined to a few scrip’s, particularly of cotton
textiles, ginning & pressing companies. The stock exchange has many firsts to its credit.
 BSE was the first stock exchange to be established in India.

 The exchange was the first to be recognized under the securities contract act, 1956.
 It was the first exchange in the country to have a permanent building with the trading
hall.
 The exchange took the initiative in switching over to the screen based trading (SBT)
in 1995.
The Bombay stock exchange transacts about two thirds of the business in the country.
It registered the highest per hour velocity of transactions next only to Taipei (June-oct 1990).
The exchange helps materially to make Mumbai, the chief center of money and capital
markets and contributes in no small measure to the importance of the city as ‘financial capital
of India’.
LIST OF RECOGNISED STOCK EXCHANGES AND THEIR ADDRESS.
25
The stock exchange, Mumbai
Phiroze jeejeebhoy towers,
Dalal street Fort

01
Mumbai – 400001.
The Stock exchange, Ahmedabad
Kamdhenu complex, opp. Sahajanand college, panjara pole Ahmedabad-

02
380015.
Bangalore stock exchange ltd.,
03 Stock exchange tower,
51, 1 cross, j.c. road, Banglore-560027
Bhuvanshwar stock exchange assn. Ltd., 217 budhraja building,
Jharpad cuttack road,

04
Bhuvaneshwar-751006
The Calcutta stock exchange Ltd., 7, Lyons Range,
05 Calcutta-700001.
Cochin stock exchange Ltd.,
Exchange House, 38/1431,
Kaloor road extn

06
Ernakulam, Cochin – 692035,KERALA
The Delhi stock exchange assn. Ltd.,
DSE HOUSE 3/1, Asaf ali road

07
New Delhi – 110002.
08 The gauhati stock exchange
Saraf building annexe, A.T. road
26
Gauhati - 781001.
Hyderabad stock exchange
09 Bank street,
Hyderabad – 500001
Jaipur stock exchange
Rajasthan chamber bhawan

10
M.I.Road,
Jaipur-302003.
Kanara stock exchange
11 4th floowr, rambhavan complex
Kodialbail, Mangalore – 575003.
The Iudhina stock exchange Assn, Ltd.,
Lajpat rai market

12
Clock tower
Ludhina - 141008.
Madras stock exchange Ltd.,
Exchange building
13 Post box no. 183
11, second line beach
Madras – 452002
Madhya Pradesh exchange Ltd.,
14 67, bada sarafa
Indore – 452002
15 Magadh stock exchange Ltd.,
27
Bihar industries Assn.
Premises, sinha library road,
Patan – 800001
Pune stock exchange Ltd.,
16 PMT commercial building
Deccan gymkhana, Pune – 411004
Saurashtra kutch stock exchange
4, swani narayan gurukul bldg,

17
dhebarbhai Rd
Rajkote – 380002
Uttar Pradesh stock exchange Ass.Ltd.,
18 Padam tower 14/113, civil lines
Kanpur – 208001
The Vadodara stock exchange Ltd.,
Paradise complex
19 Opp. Commercial college
Tilak road, sayajiganj
Baroda – 390005
The coimbatore stock exchange Ltd.,
20 Avassashi Rd,
Coimbatore
21 The Meerut stock exchange Ltd.,
22 OTC exchange stock exchange Ltd.,
92, marker towers ‘F’
28
cuffe parade
Mumbai – 400005
National stock exchange
Trade world
23
Kamala mills compound
Lower parel, Mumbai – 400013
GLOBAL SCENARIO
Online trading has become very popular in the last couple of years because of the
convenience of case and use. Numerous companies have gone has existed for as long as we
can remember and talk about it, we are referring to trade in financial services, including
securities, through the WORLD WIDE WEB.
Online trading has basically replaced a phone call with the Internet. Instead of
interacting with brokers over phone, the consumer is clicking the mouse. Online trading has
given customers real time access to account information, stock quotes, elaborate market
research, and interacting trading.
INDIA
India ranks amongst the top 10 countries in terms of the market. India is gradually
opening its stock market to foreign investors. A beginning was made on 27 th January 2000,
when the chairman of the securities and exchange board of India (SEBI) authorized stock
exchange to provide internet based trading service to investors and also announced that
foreign companies and individuals could now trade on Indian stock exchange.
ONLINE TRADING
Before getting in to the online trading we should know some things about the internet,
e-commerce and etc.
1. Internet
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Internet is a worldwide, self-governed network connecting several other smaller

networks and millions of computers and persons, to mega sources of information. This
technology shrinks vast distances, accelerating the pace of business reforms and
revolutionizing the way companies are managed. It allows direct, ubiquitous links to anyone
anywhere and anytime to build up interactive relationships.
A combination of time and space, called the Internet promises to bring unprecedented
changes in our lives and business. Internet or net is an inter-connection of computer
communication networks spanning the entire globe, crossing all geographical boundaries.
It has re-defined the methods of communication, work study, education, business,

leisure, health, trade, banking, commerce and what not it is virtually changing every thing
and we are living in dot.com age. Net being an interactive two way medium, through various
websites, enables participation by individuals in business to business and business to
consumer commerce, visit to shopping arcades, games, etc. in cyber space even the
information can be copied, downloaded and retransmitted.
The use of Internet has grown 2000 percent in last decade and is currently growing at
10 percent per month. In India, growth of Internet is of recent times. It is expected to bring
changes in every functional area of business activity including management and financial
services. It offers stock trading at a lower cost. Internet can change the nature and capacity of
stock broking business in India.
2. E-commerce
Electronic commerce is associated with buying and selling over computer

communication networks. It helps conduct traditional commerce through new way of
transferring and processing of information. Information is electronically transferred from
computer to computer in an automated way. E-commerce refers to the paperless exchange of
business information using electronic data inter change, electronic technologies. It not only
reduces manual processes and paper transactions but also helps organization move to a fully
electronic environment and change the way they operated.
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PC’s and networking attempts to introduce banks of the tools and technologies
required for electronic commerce. The computers are either workstations of individual office
works or serves where large databases and information reside. Network connects both
categories of computers; the various operating systems are the most basis program within a
computer. It manages the resources of the computer system in a fair and efficient manner.
3. Concept of online trading.
In the past, investors had no option but to contact their broker to get real time access
to market data. The net brings data to the investor on-line and net broking enables him to
trade on a click of mouse. Now information has become easily accessible to both retail as
well as big investor.
EVOLUTION OF BROKING IN INDIA:
The evolution of a broking in India can be categorized in three phases -
 Stockbrokers will offer on their sites features such as live portfolio manager, live
quotes, market research and news, etc. to attract more investors.
 Brokers will offer online broking and relationship management by providing and
offering analysis and information to investors during broking and non-broking
hours based on their profile and needs, i.e. customized services.
 Brokers (now e-brokers) will offer value management or services like initial
public offering online, on-line asset allocation, portfolio management, financial
planning, tax planning, insurance services, etc. and enables the investors to take
better and well considered decisions.
Meaning of Online Trading
Online trading is a service offered on the internet for purchase and sale of shares. In
the real world you place orders on your stockbroker either verbally (personally or
telephonically) or in a written form (fax).” In online trading, you will access a stockbroker’s
website through your internet enabled PC and place orders through the broker’s internet
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based trading engine. These orders are routed to the stock exchange without manual
intervention and executed thereon in a matter of a few seconds. The net is used as a mode of
trading in internet trading. Orders are communicated to the stock exchange through website.
In India:
Internet trading started in India on 1st April 2000 with 79 members seeking permission
for online trading. The SEBI committees on internet based securities trading services has
allowed the net to be used as an Order Routing System (ORS) through registered stock
brokers on behalf of their clients for execution of transaction. Under the ORS the client enters
his requirements (security, quantity, price buy/sell) on broker’s site.
Objectives:
Internet trading is expected to
 Increase transparency in the markets,
 Enhance market quality through improved liquidity, by increasing quote

continuity and market depth,
 Reduce settlement risks due to open trades, by elimination of mismatches,
 Provide management information system,
 Introduce flexibility in system, so as to handle growing volumes easily and to

support nationwide expansion of market activity.
Besides, through internet trading three fundamental objectives of securities

regulation can be easily achieved, these are:
 Investor protection
 Creation of a fair and efficient market, and
 Reduction of the systematic risks.
REQUIREMENTS FOR NET TRADING:
For investors:
1. Installation of a computer with required specification
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2. Installation of a modem
3. Telephone connection
4. Registration for on-line trading with broker
5. A bank account
6. Depository account
7. Compliance with SEBI guidelines for net trading
The following should be produced to get a demat account and online trading account:
As identity proof & address proof any one of the following:
 Voter ID card
 Driving license
 PAN card( in case of to trade more than 50000)
 Ration card
 Bank pass book
 Telephone bill
Other requirements, which are necessary
 First page of the bank pass book and last 6 months statement.
 Bank manager’s signature along with bank’s seal, manager registration code on
photograph.
For stock brokers:
1. Permission from stock exchange for net trading
2. Net worth of Rs. 50 lac
3. Adequate back-up system
4. Secured and reliable software system
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5. Adequate, experienced and trained staff
6. Communication of order (trade confirmation to investor by e-mail)
7. Use of authentication technologies
8. Issue of contract notes within 24 hours of the trade execution
9. Setting up a website.
The net is used as a medium of trading in internet trading. Orders are communicated
to the stock exchange through website. Internet trading started in India on 1st April 2000 with
79 members seeking permission for online trading. The SEBI committees on internet based
securities trading services has allowed the net to be used as an Order Routing System (ORS)
through registered stock brokers on behalf of their clients for execution of transaction.
Under the Order Routing System the client enters his requirements (security, quantity,
price, and buy/sell) in broker's site. They are checked electronically against the clients
account and routed electronically to the appropriate exchange for execution by the broker.
The client receives a confirmation on execution of the order. The customer's portfolio and
ledger accounts get updated to reflect the transaction. The user should have the user id and
password to enter into the electronic ring.
He should also have demat account and bank account. The system permits only a
registered client to log in using user id and password. Order can be placed using place order
window of the website.
PROCEDURE FOR NET TRADING
Step 1: Those investors, who are interested in doing the trading over internet system i.e.
NEAT-IXS, should approach the brokers and get them self registered with the Stock Broker.
Step 2: After registration, the broker will provide to them a Login name, Password and
personal identification number (PIN).
Step 3: Actual placement of an order. An order can then be placed by using the place order
window as under:
(a) First by entering the symbol and series of stock and other parameters like
quantity and price of the scrip on the place order window.
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(b) Second, fill in the symbol, series and the default quantity.
Step 4: It is the process of review. Thus, the investor has to review the order placed by
clicking the review option. He may also re-set to clear the values.
Step 5: After the review has been satisfactory, the order has to be sent by clicking on the send
option.
Step 6: The investor will receive an "Order Confirmation" message along with the order
number and the value of the order.
Step 7: In case the order is rejected by the Broker or the Stock Exchange for certain reasons
such as invalid price limit, an appropriate message will appear at the bottom of the screen. At
present, a time lag of about 10 seconds is there in executing the trade.
Step 8: It is regarding charging payment, for which there are different mode. Some brokers
will take some advance payment from the investor and will fix their trading limits. When the
trade is executed, the broker will ask the investor for transfer of funds to his account.
Internet trading provides total transparency between a broker and an investor in the
secondary market. In the open outcry system, only the broker knew the actually transacted
price. Screen based trading provides more transparency. With online trading investors can see
themselves the price at which the deal takes place.
The time gap has narrowed in every stage of operation. Confirmation and execution of
trade reaches the investor within the least possible time, mostly within 30 seconds. Instant
feedback is available about the execution. Some of the websites also offer.
 News and research report
 BSE and NSE movements
 Stock analysis
 IPO and mutual fund centers
STEP BY STEP PROCEDURE IN ONLINE TRADING:
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 Log on to the stock broker's website
 Register as client/investor
 Fill the application form and client broker agreement form on the requisite value
stamp paper
 Obtain user ID and pass word
 Log on to the broker's site using secure user ID and password
 Market watch page will show real time on-line market data
 Trade shares directly by entering the symbol or number of the security
 Brokers server will check your limit in the on-line account and demat account for the
number of shares and execute the trade
 2Order is executed instantly (10-30 seconds) and confirmation can be obtained.
 Confirmation is e-mailed to investor by broker
 Contract note is printed and mailed in 24 hours
 Settlement will take place automatically on the settlement day
 Demat account and the bank account will get debited and credited by electronic
means.
SETTLEMENT OF TRANSACTIONS:
Clearing of transaction in the form of shares and cash is called settlement. Buyers will
take the delivery of shares through the depository participants like SHARE KHAN and
others.
Finally, the settlement is made by means of delivering the share certificates along with
the transfer deeds. The transferor (or the seller) duly signed transfer deed. It bears a stamp of
the selling broker. The buyer then fills up the certificates fills up the particulars in the transfer
deed. Settlement can be done in the following way.
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 Spot settlement: under this method, the delivery of securities and payment for them
are affected on the day of the contract itself.
 Rolling settlement: Under this rolling settlement the trading is on “T+2”,basis i.e. if
Monday is trading day then Wednesday is the paying day . In case on non-delivery,
the securities will go for auction.
DETAILS OF PROCEDURES:
 Delivery in: The members who are in pay-out position delivers share certificates in
to clearing house within the settlement period along with the delivery Chelan filled in
with the details of share certificates which has folio numbers or distinctive numbers
etc.
 Delivery out: The buyer of shares who made pay in position will take delivery of
shares from the clearing house.
 Pay-in: The member who is in paying position shall pay for value of shares with in
the trading settlement period (T+2).
 Payout: The cheques paid in the clearinghouse will be paid to members who are in
paying position.
All disputes arising between members regarding non-deliveries, non-

payments, good and bad deliveries pertaining to the settlement will be settled by the
settlement committee of the exchange.
ON-LINE TRADING HAS LED TO ADDITIONAL FEATURES SUCH AS:
 Limit/orders: orders that can go unfilled but there is an extra is charged for
this leewat facility since one needs to hold.
 Market orders: orders can be filled at unexpected price, but this type is more
risky, since you have to buy stock at given price.
 Cash account: where funds have to be available prior to placing the orders and
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 Margin account: where orders be placed against stock, to increased

purchasing power.
THE GIVEN FLOW CHART CLEARLY EXPLAINS THE PROCESS OF ONLINE

TRADING:
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L o g in
B u y t r a n s c a t io n S e ll t r a n s c a t io n
T h e s y s te m w ill c h e c k y o u r
T h e s y s te m w ill c h e c k b u y in g d p ac c o u n t q u a n tity
lim its
O rd e rs a c c e p te d R e je c t e d o r d e r s w o u ld b e o rd e rs ac c e p te d
c o m m u n ic a t e d a lo n g w it h r e a s o n s
y o u r o r d e r is t r a n s m it t e d t o e x c h a n g e f o r e x e c u t io n
p e n d in g b u y o r d e r s o n e x e c u t io n p e n d in g s e ll o r d e r s
w o u ld b e d is p la y e d o f y o u r o rd e rs w o u ld b e d is p la y e d
o n y o u r s c re e n o n y o u r s c re e n
y o u m a y e d it y o u r y o u m a y d e le t e y o u m a y e d it y o u r y o u m a y d e le t e y o u r
p e n d in g o r d e r y o u r p e n d in g o r d e r p e n d in g o r d e r p e n d in g o r d e r
f la s h e d o n y o u r c o n f o r m a t io n c o u l c o n t r a c t n o t e w o u ld
s c r e e n im m e d ia t e ly d b e s e n d to y o u r b e s e n t t o b y m a il
o n e x e c u t io n e - m a il a n d m o b ile o r h a n d d e liv e r y
ADVANTAGES OF ON-LINE TRADING
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 On-line trading has made it possible for any one to have easy and efficient excess to more
reports and charge than it was previously possible if one want to any broker’s office.
Thus, we have to excess to lot more information on-line to self teach ourselves.
 On-line trading has left room for smaller organization to compete with multinational
organizational organizations since size is no longer a legit issue. Being online does not
identify the size of any particular organization, therefore this additional power to the
underdogs.
 On-line trading has allowed companies to locate themselves there they want has physical
location is not an issue any more. Companies can established themselves according to
their gains and losses, for instance, where tax (sales and value added tax is to best them.
 On-line trading gives control to individuals and they can exercise it over account thus
comprehend what is going on when they trade. It is like going back to school and
reeducating oneself on how trade on on-line.
 Individual benefit by having comparatively a lot more when trading online has the cost
per trade is less.
 Individuals car invest in variety of products, unlike earlier when people brought bonds,
mutual fund and stock for long-term basis and sat on them. Now they can invest in stocks,
stock and indexes, index options, mutual funds, individuals, government and even
insurance.
 On-line trading has made it possible for one to find investment options that were not
available on regular basis, like offbeat net stocks, eccentric unique things and trading in
global market.
INVESTORS REASONS TO TRADE ONLINE
 They have control over their accounts; can make their own decisions for their
actions they are independents.
 They have reasons to particulars in the market and learn about it.
 It interesting, cheap, easy, fast, and convenient.
 A lot of information is online so they can keep up to date with what is happening in the
trading world.
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 It is in the interest of the small investors because rates will be available immediately
across the country execution will be immediate.
 It will give investors a great choice and batter realization.
 The immediate impact will be competition and benefits will be accruing to the investors.
 It will lead to brokerage, commissions going down and brokers striving to increase
business float.
 Investors will now go to place, which have better trading conditions and also members
to offer them better facilities.
 They have access to numerous tools to invest, and their portfolio.
DISADVANTAGES OF ON-LINE TRADING
 When network crashes, there will be possible and delays due to a large influx of traffic
and rapid online trading criteria. For instance, on 27 th October 1997, there was a one day
crash, which caused online trading on the NET YORK stock exchange to exchange to
stop and brokers were unable to conduct business. Individuals are restricted to firs-hand
financial guidance. This simply means that the individuals are himself / herself along to.
Make decision.
 Tax (sales tax and value added tax) evaluation becomes an issue, especially when you are
trading internationally.
 Changes are that one has no idea who one is dealing with on the other end.
 So it is advisable to gather all the possible information about the party one is dealing
with. In short, do the homework and prepared.
 Online trading has left individuals open to too much on the other end, so it is advisable to
gather all the possible information about the party one is dealing with. In short, do the
homework and prepaid.
 Online trading has left individuals open to much information. This is harmful since it
leaves brokerages wide open to sensitive data.
 According to a study conducted buy mary Rowland, careful investor: is online trading bad
for your portfolio, the more one trades the less returns one gets, meaning that an addicted
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trader gets, carried away online and being to trade far too much causes losses for him or
her.
The study also shown that smart investment is better than “fast investment, simply put,
speed should be considered to be a major factor that would lead any online trader to think
they know the market.
 Individuals think that are trading with the market directly and know what they are doing
but the truth is that even though the technology has taken over, the basic rules of trading
are the same. It seems that the middlemen has been removed, but that is not so. When the
individuals click on a mouse, his trade goes through a broker. The commissions on line
pertain to the intermediary.
 There is a need for more effective communication links over the Internet and the ability of
the server to server it deal with a large volume of visitors.
COMPUTERIZATION
The stock exchange business operations are equipped with modern communications
system. On-line computerizations for simultaneously carrying out the trading transactions,
monitoring functions have been introduced at the exchange since 1988 and the settlement and
delivery system has become simple and easy to the exchange members.
The SE On-line securities trading system was build around the most sophisticated
state art computers, communications system and the proven VECTOR software from CMC
capital and was one of the most powerful SET system in country, operating in wan
environment, connected through 9.6KBPS 2 wire leased lines from the offices of the
members to the office of stock exchange at somajiguda.
where the central systems CHALLENGES-L DESK SIDE SERVER made connected
to all the members who were provided with COMPAQ DESKPRO 2000/DESLTOP 5120
computers connected through MOTORLA 3265 V.34 MANAGEABLE STAND ALONE
MODEMS (28.8KBPS) for carrying out business from computers terminals located in the
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offices of members. SE is the only exchange in the country, which has provided infrastructure
to its members trading through WAN and leased lines from day one.
In the age of electronic trading On-line information on rates from other, major
markets was an essential input for efficiency. SE provided ON-line rates from BSE and NSE
which not only enhanced the members to avail arbitraging opportunities between exchange.
SETTLEMENT GUARANTEE FUND:
The Exchange has introduced trade guarantee fund on 25th January 2000. This will
insolate the trading member from the counter party risks while trading with another member.
The trading member and his investor will be assured of the timing completion of the pay out
of the funds and securities not with standing the default, if any, of any, of any trading member
of the exchange. This short fall, if any, arising from the default of any member will be met
out of the settlement grantee funds. Several pay-in worth of crores of rupees in all the
settlements have been successful completed after the introduction of settlement guarantee
without utilizing any amount from the settlement guarantee fond. The settlement grantee fond
will be a major step in the rebuilding this confidence of the members and the investors in SE.
The settlement grantee fond as the corpus of rupees 2 cr initially which would be raised in the
future suitable, he trade guarantee fund had strict rules and regulations to be complied by the
members to avail their guarantee facility. The host system facilitated monitoring the
compiling of members in respect such rules and regulations.
CURRENT PLANS
A. Depository Participant
The exchange had also become depository with National securities depository limited
(NSDL) and central depository service limited (CSDL). Requisite infrastructure for NSDL is
in place. Our own DP is fully operational and execution time came down substantially. The
depository function can be undertaken by the exchange etc., the trade of all the exchanges
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having online trading which get into national depository can also be settled at Hyderabad by
this exchange it’s self. In short all the trades of all the investors of any exchange at
Hyderabad in dematerialized securities can be settled by the exchange its self as participant of
NSDL and CSDL.
B. Floating of a subsidiary company for the membership of major stock exchanges

of the count:
The exchange as floated a subsidiary company in the name and style of M/S HSE
securities limited for obtain the membership of NSSE and BSE. The process of acquiring the
membership of NSE as already been completed and SEBI was kind enough to grant its
registration M/S HSE securities limited some of the members also field their application
seeking sub-broker ship with M/S securities Ltd.
And the processes of registration were completed. M/S HSE securities Ltd procured
the hardware/software, connectivity etc, and conducted mock trading for a month time went
live smoothly on NSE segment. The subsidiary will also acquire BSE membership shortly
after stabilizing the operations at NSE in the derivative segment.
NSE CASH NSE F&O BSE CASH
Years Rs. In Lakhs Rs. In Lakhs Rs. In Lakhs
2010-11 336236.81 -- --
2011-12 426143.50 16657.08 --
2012-13 617808.46 312203.56 17558.59
2013-14 484189.11 354370.71 39519.96
C. Facility trade nse, derivative trading, net trading etc:
The exchange incorporated a subsidiary “” HSE SECURITIES LIMITED” with a

paid up capital of Rs. 4 cr to take NSE membership, so that the members of the exchange had
accessed to the NSE trading screen has sub brokers, derivative trading and net trading etc. the
member of this exchange had equal opportunity of participating in such trading like any other
44
NSE member. The subsidiary of the exchange commenced trading with HSE members as sub
brokers on NSE segment.
The NSE system which now put in place as been executed at very minimal cost
compare to other exchanges. During the year the exchange also acquired their membership of
BSE and trading will commence soon. The technological changes are sweeping through and
affected the securities trading all over the world. In view of the fast moving technological
changes, HSE intends to have a “BROKERS PLAZA” which will enable the members to
offer their clients trading on internal platform.
D. Commodities exchange :
The exchange by seeking the support of the state government is planning to setup on-
line commodities exchange to trade in certain commodities since our state is one of the major
agrieconomies. In a view of the existing networking facility available with the exchange for
on-line trading through wan, the commencement of commodities market will ensure with
efficient cleaning, settlement and guarantee system, delivery system, real time price and trade
information disseminations system, transparency in operation and trading experience and
expertise in similar business, online commodity trading with WAN connectivity will
minimize the middle men operation and provide price support to the producers.
STOCK BROKERS INSURANCE SYSTEM
HSE as taken a comprehensive stock brokers insurance policy converting the

members to an extent of Rs 10 lacs each and insurance the clearinghouse. HSE is one of the
few to have such comprehensive insurance policy coverage.
TRADE GUARANTEE FUND
The exchange has implemented track guarantee trade? Done through exchange this
will protect the trading members from the country party risks while trading with another
member. In other words, the trading member and his investors will be assumed of the timely
completion of the trading member of the exchange, the shortfalls if arising from the default of
any member will be met out of any member will be met out of trade guarantee fund. The
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trade guarantee fund has stiff rules and regulation to be compiled with by the members to
avail the guarantee facility. The host systems will facility monitoring the compliance of
members in respect of such rules & regulation.
The trade guarantee fund has stiff rules and regulation to be compiled by the members
to avail the guarantee facility. The host system will facilitate monitoring the compliance of
members in respect of such rules & regulation.
INTER CONNECTED MARKET SYSTEM (ICMS)
The HSE is the conveyor of a committee constitute by the federation of India of

Indian of Indian stock exchange for implementing inter connected market system in which
the screen based trading system of various stock exchange will be inter connected to create a
large national market SEBI has already confirmed that it will welcome the creation of ICMS
the host will provide the members of HHSE and its investors access a large national of stock
exchange.
The inter connected stock exchange is a national exchange and all HSE members can
have trading terminal with access to the national market without any fee, will be a boom to
the members of any exchange.
VOLUME
It is hearing that after implementing that host HSE daily turnover has fairly stabilized
at a level of 20crs. This should enable in improving our ranking among India stock exchange
for 6th position for the exchange and its members, and to render excellent services to investors
in this region. The number of transitions, turnover of the exchange number of listed
companies and the paid capital has grown substantially as may be seen from the folio figures.
The number of transactions, turnovers of the exchange, numbers of listed companies

and the paid up capital listed have grown up substantially as my be seen from the following
figures.
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YEAR NUMBER OF TURNOVERS LISITED PAID UP

TRANSATIONS (IN CRORES) COMPANIES CAPITAL
(INCRORES)
2001-02 515.95 587.75 236 2740.56
2002-03 421.99 676 274 10228.48
2003-04 603.44 984.46 372 13156.15
2004-05 860.64 1160.48 668 18588.71
2005-06 720.52 1107.3 727 20159.31
2006-07 240.64 479.98 851 22050.69
2007-08 427.83 1860.86 852 18705.10
2008-09 513.13 1236.51 856 18753.93
2009-10 513.44 1236.51 869 19128.95
2010-11 427.05 977.83 934 14717.08
2011-12 34.474 41.26 932 13616.12
2012-13 4.203 4.58 928 13974.78
2013-14 2.277 2.73 865 8420.16
2014-15 4.401 14.13 820 14456.95
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ON-LINE SURVEILLANCE:
SE pay’s special attention to market surveillance and monitoring exposure of the

members, particularly the mark to market losses. By taking prompt steps to collect the
margins for mark to market losses, risk of default by members is avoided in any settlement it
is heading that there has been no default by members, particularly the mark to market losses.
By taking prompt steps to collect the margins for mark to market losses, risk of default by
members is avoided in any settlement it is hearing that there have been no default by
members since the introduction of screen base trading the Exchange restricted the effective
trading volumes and linked to the capital deposited with the exchange restricted the effective
trading volumes and linked to the capital deposited with the exchange to obviate defaults and
losses and contain speculation.
BASEMINIMUM GROSS EXPOSURE INTRA DAY
CAPITAL LIMIT TRADIN
Rs.4.00LACS 40.00LACS 132.00LACS
ADDITIONAL CAPITAL UPTO
Rs.6.00 LACS Rs.60.00 LACS Rs.132.00 LACS
FURTHER ADDITIONAL CAPITAL UPTO
Rs.8.00 LACS Rs.48.00 LACS Rs.96.00 LACS
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ONLINE TRADING ON SECURITIES EXCHANGE:

The exchange has introduced screen based trading system named as HOST
(Hyderabad stock exchange online securities trading system) from 20 th February 1997
exchange was following the manual system trading computers are delivered to all eligible
members. The representative of M/S Tata Eixsi (India) LTD have taken up the installation
computer regarding earthling ups etc.
The software installed is “VECTOR” (vector engine for centralized trading & online
reporting) a product developed by CMC to implement a fully automated trade execution
system.
System:
This system built around a central computer, which will be called the central trading
system placed at the exchange. The broker interact with the CTS through broker work station
(BWS) other users of the system are surveillance connected to the work through their own
workstation, the surveillance work station (SWS).
Objectives
 The vector system has been developed to help the SE in meeting the following
objectives.
 Reduce the eliminate operational influent inherent in manual system.
 Increase trading capacities in the stock exchange.
 Promote fair ness and speedy matching.
 Provide for online and offline monitoring control surveillance of the market.
 Smooth market operations using technology while relating the flexibility of conventional
trading practice.
 Set up various limits rules and controls centrally.
 Consolidate the track data and interface with clearing and settlement.
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 Provide public information on scripts price indicate for all the users of the system.
 Provide analytical data for the use of the stock exchange.
OVERVIEW
The vector system has been developed to computers the trading activity of the broker
as well as some of the allied activities of the stock exchange relating to the trading function.
In the computerized scenario the broker / trader sit with in their own office and send their
quotes order trades negotiated deals. In house deals auction order of the trading engine (CTE)
using the BWS.
The best bid and best offer (best BID & offer) for each scripts the buy and the sell
order placed by the brokers are matched at the best available price in the market for the scrip
at that time subsequent to matching trade confirmation are sent to the respective work stations
which can be printed on – line. News feeds from other stock exchange are received at the
CTS and broad cast to all the user work station news related to broad meetings. Right/bonus,
dividend record dates ‘ book closer dates, financial results other script related information
stock exchange, news, political and other news will be received & entered by the market
operations & broadcast to all the user workstations. Other market news is also available at the
BWS. Similarly prices of the various scripts in this stock exchange can be made available
using VECTOR software in the form of news feeds to be passed on to the respective agency.
Trading Session
The trading session in from 10.00 to 3.45pm on all weekday’s i.e., from Monday to
Friday. This the actual trading session where quotes, order would continuously come to the
CTS from BWS’s based on parameters for the market scrip. Order sent by the BWS’s will be
executed.
System Development
The exchange as introduced screen based trading system named as HOST (host online
securities trading system) from 20th February 1997. The exchange was following the manual
system of trading. CMC has developed a computerized screen based trading system to replace
congenital manual system.
50
Trading computers are the delivered to all eligible members by the representatives of
M/S Tata Exist (India) ltd have taken up the installation of computers regarding earthlings
UPS’s etc.
The software installed is “VECTOR (VERSATILE ENGINE FOR CENTRALIZED

TRADING AND ONLINE REPORTING) a products developed by CMC to implement a
fully automated trade execution system.
Broker Workstation
At the bws the best bbo’s the last trade price the day’s opening price, previous day’s
closing price, highest and lowest prices. The highest average price the total traded volumes
will be available continuously also bbo’s for each scrip. Other information will be available
on query from the bws. These include top ten gainers/losers of the day; trade wise scrip wise
net position top ten scripts by the volume/value market summary etc.
The bws has powerful profiting future, which enables each trader to customize his or
her screen layouts, as it’s convenient. The individual user may set profiles at bws, for lie
scripts that he is interested in watching columns of introduction available etc.
Unique Features of Bws
He BWS as the unique feature, which facilitates opening of the multiple windows on
different planes on the BWS screen. BWS application has multiplied screens for entry display
of pending order etc. when May windows are opened at the same time, the screen overlap and
cause operational convenience. The screen space is to maximum possible information needs
to be displayed the BWS provides for and watch different set if screen windows.
Order
Order can be entered into the system either one at a time or in a batch mode the
submitted order will be accepted at the CTS after validation if found invalid for any reason
the order is returned back to BWS with the appropriate error message if accepted it the CTS
will be added to the local pending order book.
The order will be taken up for matching if it is a buy order system tries to find a sell
order which fits the requirements of the buyer order when such a match is found a trade gets
execute e4ach trade involves two brokers and respective trader who sent order both these
51
BWS’s are informed of the trade is added to the local trade book and pending quantity
decreased by the trade quantity in the local pending order.
Limit Orders
A limit orders is received at the CTS and kept on hold till it finds a match the
retention period of the order can be till end of or date till end of settlement at the end of
pending orders that fall within the criteria for removal will be cancelled from the CTS.
Market Orders
For a market order immediate match is sought market order will not be executed if the
price at which trade could be executed deviates from the BBO price beyond the market
protecting percentage limit for the scrip as specified by the BWS.
Settlement System
The SE has weekly settlement period for several years. The settlement period is from
Tuesday to Monday for the transactions carried out in the earlier week.
The exchange issues daily volume report of the day’s transaction in the evening to all
the members. If the any discrepancies arises that should be reported to the exchange before
12:30 pm on the next working day. Daily volume report indicates the information of selling
price circuit breaker. Day’s top ten scrip’s (turn wise, transaction wise).
The exchange will process all the transactions data of the members in a particular
settlement and issues an adjustment report to the members by end of the weekly settlement
period on Monday along with delivery challans.
The adjustment report consists of various parts:
PART A: internal adjustments of transactions of transaction in the settlement.
PART B: net receivable securities from members.
PART C: net deliverable securities members.
PART D: Odd-lot transactions if any.
PART E: Spot transaction if any.
52
At the end of the report the total / receivable amount will be shown effects in the pay in and
payout of the members in the settlement.
After receiving the adjustment report the delivering member shall have to deposit the
securities to the clearing house, which accepts the securities from Monday to Wednesday with
delivery challans, and transfer form, on Tuesday securities will be realized to the receiving
payout members will be released on next day i.e., Friday all the pay in, payout will be done
through exchange clearing house bank.
In case of book closure/record date’s special delivery will take place on Monday
provided 10 days available from Monday to book closures date.
Surveillance
Surveillance can be done during the continuous trading session for monitoring the
broker scrip’s and the market, this is referred to as online may be used for analysis. Analysis
and monitoring reports that can be generated. For the continuous trading session the
surveillance work station user can set up a member of alerts any scrip’s broker or index the
workstation profile will be automatically reported to the user. During the continuous trading
session details of scrip broker or index that pass the alert or violate their circuit breakers are
displayed on message window. There are three messages windows i.e., one for each scrip and
index, different colors indicates the importance of the message and BWS user is modified
when BWS user id denied access to the system a number of are available for the SWS user.
53
CHAPTER-III
COMPANY PROFILE
54
INTRODUCTION OF COMPANY
HISTORICAL BACKGROUND:
The birth of Karvy was on a modest scale in 1981. It began with the vision and
enterprise of a small group of practicing Chartered Accountants who founded the flagship
company Karvy Consultants Limited. We started with consulting and financial accounting
automation, and carved inroads into the field of registry and share accounting by 1985. Since
then, we have utilized our experience and superlative expertise to go from strength to
strength…to better our services, to provide new ones, to innovate, diversify and in the
process, evolved Karvy as one of India’s premier integrated financial service enterprise.
Thus over the last 20 years Karvy has traveled the success route, towards building a
reputation as an integrated financial services provider, offering a wide spectrum of services.
And we have made this journey by taking the route of quality service, path breaking
innovations in service, versatility in service and finally…totality in service.
Our highly qualified manpower, cutting-edge technology, comprehensive

infrastructure and total customer-focus has secured for us the position of an emerging
financial services giant enjoying the confidence and support of an enviable clientele across
diverse fields in the financial world.
Our values and vision of attaining total competence in our servicing has served as the
building block for creating a great financial enterprise, which stands solid on our fortresses of
financial strength - our various companies. With the experience of years of holistic financial
servicing behind us and years of complete expertise in the industry to look forward to, we
have now emerged as a premier integrated financial services provider.
55
And today, we can look with pride at the fruits of our mastery and experience –
comprehensive financial services that are competently segregated to service and manage a
diverse range of customer requirements.
PROFILE OF KARVY FINANCIAL POLICY’S:
It is an undisputed fact that the stock market is unpredictable and yet enjoys a high
success rate as a wealth management and wealth accumulation option. The difference
between unpredictability and a safety anchor in the market is provided by in-depth
knowledge of market functioning and changing trends, planning with foresight and choosing
one’ s options with care. This is what we provide in our Stock Broking services.
We offer services that are beyond just a medium for buying and selling stocks and
shares. Instead we provide services which are multi dimensional and multi-focused in their
scope. There are several advantages in utilizing our Stock Broking services, which are the
reasons why it is one of the best in the country. We offer trading on a vast platform; National
Stock Exchange, Bombay Stock Exchange and Hyderabad Stock Exchange. More
importantly, we make trading safe to the maximum possible extent, by accounting for several
risk factors and planning accordingly.
We are assisted in this task by our in-depth research, constant feedback and sound
advisory facilities. Our highly skilled research team, comprising of technical analysts as well
as fundamental specialists, secure result-oriented information on market trends, market
analysis and market predictions. This crucial information is given as a constant feedback to
our customers, through daily reports delivered thrice daily; The Pre-session Report, where
market scenario for the day is predicted, The Mid-session Report, timed to arrive during
lunch break, where the market forecast for the rest of the day is given and The Post-session
Report, the final report for the day, where the market and the report itself is reviewed. To add
to this repository of information, we publish a monthly magazine “ Karvy; The
Finapolis & rdquo;, which analyzes the latest stock market trends and takes a close look at
the various investment options, and products available in the market, while a weekly report,
called “ Karvy Bazaar Baatein”, keeps you more informed on the immediate
trends in the stock market. In addition, our specific industry reports give comprehensive
56
information on various industries. Besides this, we also offer special portfolio analysis
packages that provide daily technical advice on scrips for successful portfolio management
and provide customized advisory services to help you make the right financial moves that are
specifically suited to your portfolio.
Our Stock Broking services are widely networked across India, with the number of
our trading terminals providing retail stock broking facilities. Our services have increasingly
offered customer oriented convenience, which we provide to a spectrum of investors, high-
networth or otherwise, with equal dedication and competence.
But true to our spirit, this success is not our final destination, but just a platform to
launch further enhanced quality services to provide you the latest in convenient, customer-
friendly stock management. Over the years we have ensured that the trust of our customers is
our biggest returns. Factors such as our success in the Electronic custody business has helped
build on our tradition of trust even more. Consequentially our retail client base expanded very
fast.
57
KARVY ALLIANCES:
Mutual Fund Services | Issue Registry | Corporate Shareholder Services
Karvy Computershare Private Limited is a 50:50 joint venture of Karvy Consultants

Limited and Computershare Limited, Australia. Computer share Limited is world's largest --
and only global -- share registry, and a leading financial market services provider to the
global securities industry.
The joint venture with Computer share, reckoned as the largest registrar in the world,
servicing over 60 million shareholder accounts for over 7,000 corporations across eleven
countries spread across five continents. Computer share manages more than 70 million
shareholder accounts for over 13,000 corporations around the world.
Karvy Computer share Private Limited, today, is India's largest Registrar and Share Transfer
Agent servicing over 300 corporate and mutual funds and 16 million investors.
Mutual Fund Services Issue Registry | Corporate Shareholder Services

We have traversed wide spaces to tie up with the world’s largest transfer agent, the leading
Australian company, Computershare Limited. The company that services more than 75
million shareholders across 7000 corporate clients and makes its presence felt in over 12
countries across 5 continents has entered into a 50-50 joint venture with us.
With our management team completely transferred to this new entity, we will aim to
enrich the financial services industry than before. The future holds new arenas of client
servicing and contemporary and relevant technologies as we are geared to deliver better value
and foster bigger investments in the business. The worldwide network of Computershare will
hold us in good stead as we expect to adopt international standards in addition to leveraging
the best of technologies from around the world.
Excellence has to be the order of the day when two companies with such similar
ideologies of growth, vision and competence, get together.
58
MUTUAL FUND SERVICES
We have attained a position of immense strength as a provider of across-the-board

transfer agency services to AMCs, Distributors and Investors.
Nearly 40% of the top-notch AMCs including prestigious clients like Deutsche AMC
and UTI swear by the quality and range of services that we offer. Besides providing the entire
back office processing, we provide the link between various Mutual Funds and the investor,
including services to the distributor, the prime channel in this operation.
Carrying the ‘limitless' ideology forward, we have explored new dimensions in every
aspect of Mutual Fund servicing right from volume management, cost effective pricing,
delivery in the least turnaround time, efficient back-office and front-office operations to
customized service. We have been with the AMCs every step of the way, helping them serve
their investors better by offering them a diverse and customized range of services. The ‘first
to market' approach that is our anthem has earned us the reputation of an innovative service
provider with a visionary bent of mind.
Our service enhancements such as ‘Karvy Converz', a full-fledged call center, a top-
line website (www.karvymfs.com), the ‘m-investor' and many more, creating a galaxy of
customer advantages.
59
ISSUE REGISTRY
In our voyage towards becoming the largest transaction-processing house in the

Indian Corporate segment, we have mobilized funds for numerous corporate, Karvy has
emerged as the largest transaction-processing house for the Indian Corporate sector. With an
experience of handling over 700 issues, Karvy today, has the ability to execute voluminous
transactions and hard-core expertise in technology applications have gained us the No.1 slot
in the business. Karvy is the first Registry Company to receive ISO 9002 certification in India
that stands testimony to its stature
Karvy has the backing of skilled human resources complemented by requisite

technological packages to ensure a faster processing capability. Karvy has the benefit of a
good synergy between depositories and registry that enables faster resolution to related
customer queries. Apart from its unique investor servicing presence in all the phases of a
public Issue, it is actively coordinating with both the main depositories to develop special
models to enable the customer to access depository (NSDL, CDSL) services during an IPO.
Our trust-worthy reputation, competent manpower and high-end technology and

infrastructure are the solid foundations on which our success is built.
CORPORATE SHAREHOLDER SERVICES
60
Karvy has been a customer centric company since its inception. Karvy offers a single
platform servicing multiple financial instruments in its bid to offer complete financial
solutions to the varying needs of both corporate and retail investors where an extensive range
of services are provided with great volume-management capability.
Today, Karvy is recognized as a company that can exceed customer expectations

which is the reason for the loyalty of customers towards Karvy for all his financial needs. An
opinion poll commissioned by “The Merchant Banker Update” and conducted by the reputed
market research agency, MARG revealed that Karvy was considered the “Most Admired” in
the registrar category among financial services companies.
We have grown from being a pure transaction processing business, to one of complete
shareholder solutions. http://karisma.karvy.com
Karvy Global Services Limited
The specialist Business Process Outsourcing unit of the Karvy Group. The legacy of
expertise and experience in financial services of the Karvy Group serves us well as we enter
the global arena with the confidence of being able to deliver and deliver well.
Here we offer several delivery models on the understanding that business needs are
unique and therefore only a customized service could possibly fit the bill. Our service matrix
has permutations and combinations that create several options to choose from.
Be it in re-engineering and managing processes or delivering new efficiencies, our

service meets up to the most stringent of international standards. Our outsourcing models are
designed for the global customer and are backed by sound corporate and operations
philosophies, and domain expertise. Providing productivity improvements, operational cost
control, cost savings, improved accountability and a whole gamut of other advantages.
We operate in the core market segments that have emerging requirements for
specialized services. Our wide vertical market coverage includes Banking, Financial and
61
Insurance Services (BFIS), Retail and Merchandising, Leisure and Entertainment, Energy and
Utility and Healthcare.
Our horizontal offerings do justice to our stance as a comprehensive BPO unit and
include a variety of services in Finance and Accounting Outsourcing Operations, Human
Resource Outsourcing Operations, Research and Analytics Outsourcing Operations and
Insurance Back Office Outsourcing Operations.
KARVY COMTRADE LIMITED
At Karvy Commodities, we are focused on taking commodities trading to new

dimensions of reliability and profitability. We have made commodities trading, an essentially
age-old practice, into a sophisticated and scientific investment option.
Here we enable trade in all goods and products of agricultural and mineral origin that
include lucrative commodities like gold and silver and popular items like oil, pulses.
Our technological and infrastructural strengths and especially our street-smart skills make us
an ideal broker. Our service matrix is holistic with a gamut of advantages, the first and wide
national network, spanning the length and breadth of India, further supports these advantages.
Regular trading workshops and seminars are conducted to hone trading strategies to
perfection. Every move made is a calculated one, based on reliable research that is converted
into valuable information through daily, weekly and monthly newsletters, calls and intraday
alerts. Further, personalized service is provided here by a dedicated team committed to giving
hassle-free service while the brokerage rates offered our commitment to excel in this sector
stems from the immense importance those commodities broking has to a cross-section of
investors – farmers, exporters, importers, manufacturers and the Government of India
itself.
Quality Policy
62
To achieve and retain leadership, Karvy shall aim for complete customer satisfaction,
by combining its human and technological resources, to provide superior quality financial
services. In the process, Karvy will strive to exceed Customer's expectations.
Quality Objectives
As per the Quality Policy, Karvy will:
 Build in-house processes that will ensure transparent and harmonious relationships
with its clients and investors to provide high quality of services.
 Establish a partner relationship with its investor service agents and vendors that will
help in keeping up its commitments to the customers.
 Provide high quality of work life for all its employees and equip them with adequate
knowledge & skills so as to respond to customer's needs.
 Continue to uphold the values of honesty & integrity and strive to establish
unparalleled standards in business ethics.
 Use state-of-the art information technology in developing new and innovative

financial products and services to meet the changing needs of investors and clients.
 Strive to be a reliable source of value-added financial products and services and

constantly guide the individuals and institutions in making a judicious choice of same.
 Strive to keep all stake-holders(shareholders, clients, investors, employees, suppliers

and regulatory authorities) proud and satisfied.
Overview:
KARVY is a premier integrated financial services provider, and ranked among the top
five in the country in all its business segments, services over 20 million individual investors
in various capacities, and provides investor services to over 300 corporate, comprising the
who's who of Corporate India.
KARVY covers the entire spectrum of financial services such as Stock broking,
Depository Participants, Distribution of financial products like mutual funds, bonds, fixed
deposit, Merchant Banking & Corporate Finance, Insurance Broking, Commodities Broking,
63
Realty Services, Personal Finance Advisory Services, placement of equity, IPO’s, among
others. Karvy has a professional management team and ranks among the best in technology,
operations, and more importantly, in research of various industrial segments.
At Karvy Commodities, we are focused on taking commodities trading to new

dimensions of reliability and profitability. We have made commodities trading, an essentially
age-old practice, into a sophisticated and scientific investment option. Here we enable trade
in all goods and products of agricultural and mineral origin that include lucrative
commodities like gold and silver and popular items like oil, pulses and cotton through a well-
systematized trading platform.
Our technological and infrastructural strengths and especially our street-smart skills
make us an ideal broker. Our service matrix is holistic with a gamut of advantages, the first
and foremost being our legacy of human resources, technology and infrastructure that comes
from being part of the Karvy Group.
Our wide national network, spanning the length and breadth of India, further supports
these advantages. Regular trading workshops and seminars are conducted to hone trading
strategies to perfection. Every move made is a calculated one, based on reliable research that
is converted into valuable information through daily, weekly and monthly newsletters, calls
and intraday alerts. Further, personalized service is provided here by a dedicated team
committed to giving hassle-free service while the brokerage rates offered are extremely
competitive. Our commitment to excel in this sector stems from the immense importance that
commodities broking has to a cross-section of investors – farmers, exporters,
importers, manufacturers and the Government of India itself.
64
CHAPTER-IV
DATA ANALYSIS
65
ANALYSIS OF TWO COMPANIES:
1. ACC Cement Limited
2. Megasoft Computer Services Limited
1. ACC CEMENT LTD:
Futures of acc cements
Date Open High Low Close Trades Qty Value

DD/MM/YY Rs Rs Rs Rs ('000) Volume Rs
20/01/2015 740 761.90 740 748.3 12201 538146 4,046.32
21/01/2015 745 762.00 737 752.5 13479 709297 5,307.47
22/01/2015 760 763.00 746.55 753.1 15589 648160 4,897.71
23/01/2015 754 779.20 740.25 745.65 14939 760500 5,795.78
66
Close Rs
1000
100
Close Rs
10
1
20/1/2015 21/1/2015 22/1/2015 23/1/2015
Chart of ACC Cement ltd.
800000
700000
600000
500000
Trades Qty ('000)
400000
Trades Qty Volume
300000
200000
100000
0
20/1/2015 21/1/2015 22/1/2015 23/1/2015
Interpretation:
 The price rose from 748.3 on first day to 21 st JAN, there it stood at 753 as high. As
the players in the market with an intention to short or correct the market, the player’s
showed a bearish attitude for the next day where the price fell to 745.65 and
immediately rose to 753.1. Later being the last trading day of the week again the
players became bears as to keep a negative for the next week, which surge the price to
745.65 for the last day of the trading week
67
 In the trading week most of the players closed up their contracts to make profit. As
the price was low, the open interest was low and the number of characters traded
decline to 14939.
 There always exist an impact of price moments on open interest and contracts traded.
The futures market is also influenced by cash market, Nifty index future, and new
related to the underlying assessed or sector (Industry), FII’s involvement, national and
international affairs etc.
2. MEGASOFT COMPUTER SERVICES LIMITED:
Futures Of Megasoft Computer Services Limited
Date Open High Low Close Trades Qty Volume Value
(DD/MM/YY) (Rs) (Rs) (Rs) (Rs) ('000) (Rs)
20/1/2015 436 448.50 435.35 445.15 35515 3945121 17,487.70
21/1/2015 446 457.85 437.05 451.35 32977 3259767 14,632.77
22/1/2015 457 469.85 457 467.05 32556 3546642 16,444.96
23/1/2015 461 466.90 458.3 464.55 19125 1475381 6,831.17
68
Close (Rs)
1000
100
Close (Rs)
10
1
20/1/2015 21/1/2015 22/1/2015 23/1/2015
4500000
4000000
3500000
3000000
2500000 Trades Qty ('000)
2000000 Volume
1500000
1000000
500000
0
20/1/2015 21/1/2015 22/1/2015 23/1/2015
INTERPRETATION:
 The price rose from 445.15 on first day to 21 st JAN, there it stood at 464.55 as high.
As the players in the market with an intention to short or correct the market, the
player’s showed a bearish attitude for the next day where the price fell to 467.05.
Later being the last trading day of the week again the players became bears as to keep
69
a negative for the next week, which surge the price to 464.55 for the last day of the
trading week.
decline to 19125.
Price Date OpenPrice High Price Low Price Close Traded Value Trade
Price Quantity
1/1/2015 2240 2240 2175 2181.25 1610732971 735018
2/1/2015 2120 2205 2150.05 2187.05 2055041042 942219
3/1/2015 2181 2227 2181 2214.45 2060041900 936420
4/1/2015 2215.25 2249.8 2215 2234.2 1745381038 781056
7/1/2015 2235 2262 2222.55 2252.1 1717942890 765755
8/1/2015 2250 2282.7 2240 2264.1 1522681196 672332
9/1/2015 2250 2272.8 2226.3 2251.9 1218862478 541886
10/1/2015 2250 2250 2195 2232.05 1840407507 829120
11/1/2015 2240 2250 2205.25 2214.65 1379559144 620165
14/1/2015 2210 2241 2190 2226.15 1456089114 657210
15/1/2015 2220 2229.8 2160 2210.8 8685038357 391768
16/1/2015 2196 2224.7 2186.1 2193.1 1472718930 668346
17/1/2015 2195 2203.95 2171.1 2181.1 1125694104 513507
70
18/1/2015 2184.7 2205 2144.95 2199.5 2109771681 966091
21/1/2015 2209 2248.8 2195 2236.55 2067742503 927593
22/1/2015 2259 2260 2220 2223.75 1867776316 836551
23/1/2015 2217.5 2223.8 2151.3 2162.4 1638345480 749135
24/1/2015 2170 2188.5 2150 2159.1 1698482891 785921
28/1/2015 2175 2216.95 2167 2186 1373472313 625894
29/1/2015 2188 2188 2150 2166.6 1138676973 526226
30/1/2015 2155.05 2190 2142 2170.3 1315880755 608331
31/1/2015 224.7 2315 2188.1 2257.2 2500856563 1120777
DATA ANALYSIS:
Price Reading
Infosys interpretation:
71
It was found that the price of Infosys stock is quoted at 1st January 2015 2181.25. On
15th January it increased in the next week it increases to 2193.1 again in the next week it is
noticed that price followed an increasing trend to 2257.2 due to improvement in market
conditions. This shows a good sign for an investor.
Price Open High Low Close
Date Price Price Price Price
1/1/2015 411 411 393.6 394.75
2/1/2015 398 399.45 393.65 397.1
3/1/2015 399 402 394.5 400.5
4/1/2015 402 405.8 401 402.45
7/1/2015 404 408.5 403 405.4
8/1/2015 408 418.75 404.6 415.05
9/1/2015 415.25 426 411.05 418.6
10/1/2015 415 417.9 409.25 416.1
11/1/2015 417.5 420.75 413.65 415.45
14/1/2015 417 418.7 411 411.85
15/1/2015 415 415.45 407.15 409.05
16/1/2015 408.9 409 401 402.25
17/1/2015 402 406.4 394.1 399.3
18/1/2015 399.05 404 402.55 406.45
21/1/2015 403 409 402.55 406.45
22/1/2015 405 407.1 397 398.5
23/1/2015 398.5 398.5 385.8 389.6
24/1/2015 390 393.4 385.9 387.5
28/1/2015 390 406.7 389.05 399.35
29/1/2015 400 400.7 393.2 398.25
30/1/2015 396.1 402.1 391.5 395.5
72
DATA ANALYSIS:
Price Open High Low Close

Date Price Price Price Price
1/1/2015 411 411 393.6 394.75
9/1/2015 415.25 426 411.05 418.6
16/1/2015 408.9 409 401 402.25
23/1/2015 398.5 398.5 385.8 389.6
30/1/2015 396.1 402.1 391.5 395.5
73
Interpretation:
It was found that the stock price is quoted at 1st January is 394.75. On 16th January it
increased to 409.5. Again in the next drastically it decreased 406.45 and on the 31st January
395.5. As trend is decreasing it shows a bad sign to investor.
74
Date Open High Low Close Volume Change Change%
31/1/2015 36.1 36.15 35.96 36.06 17,168,000 0.140 -0.39%
30/1/2015 35.6 36.22 35.59 36.2 19,284,700 0.670 1.886%

Date Open High Low Close Volume Change Change%
1/1/2015
29/1/2015 35.24
35.82 35.39
35.97 35.15
35.43 35.22
35.53 16,206,700
18,164,900 0.020
0.440 0.057%
-1.22%
8/1/2015 36.03 36.21 36.01 36.06 12,023,100 0.070 -0.19%
28/1/2015
15/1/2015 35.9
36.28 36.19
36.48 35.87
36 35.97
36 14,333,800
17,385,000 0.240
0.220 0.672%
-0.61%
22/1/2015 36 36.19 35.42 35.5 18,183,400 0.510 -1.42%
24/1/2015
29/1/2015 35.89
35.82 36.1
35.97 35.71
35.43 35.73
35.53 18,067,700
18,164,900 0.230
0.440 0.648%
-1.22%
23/1/2015 35.5 35.82 35.38 35.5 22,461,100 - -
22/1/2015 36 36.19 35.42 35.5 18,183,400 0.510 -1.42%
21/1/2015 35.73 36.12 35.48 36.01 17,066,200 0.130 0.362%
18/1/2015 35.41 35.88 35.28 35.88 43,320,800 0.510 1.442%
17/1/2015 35.65 35.71 35.27 35.37 14,736,500 0.370 -1.04%
16/1/2015 35.81 36.12 35.48 35.74 17,997,100 0.260 -0.72%
15/1/2015 36.28 36.48 36 36 17,385,000 0.220 -0.61%
14/1/2015 35.8 36.22 35.78 36.22 17,368,600 0.400 1.117%
11/1/2015 36.03 36.14 35.75 35.82 13,175,700 0.310 -0.86%
10/1/2015 35.85 36.23 35.8 36.13 15,613,900 0.390 1.091%
9/1/2015 35.88 36.11 35.7 35.74 15,559,400 0.320 -0.89%
8/1/2015 36.03 36.21 36.01 36.06 12,023,100 0.070 -0.19%
7/1/2015 36.12 36.28 36.05 36.13 12,305,200 0.010 0.028%
4/1/2015 35.82 36.23 35.72 36.12 20,328,900 0.570 1.603%
3/1/2015 35.74 335.83 35.45 35.55 17,964,600 0.050 -0.14%
2/1/2015 35.08 35.69 35.06 35.6 17,910,800 0.380 1.079%
1/1/2015 35.24 35.39 35.15 35.22 16,206,700 0.020 0.057%
75
DATA ANALYSIS:
Interpretation:
It was noticed that the price of the GE stock is quoted 35.2. On 15 th January it
increased to a rate of 36 and in the next week it increased to 36.01. Again in the last week
also it increased to 36.06 this shows good sign to the investor as its price increasing
throughout the month and market conditions of the GE is good.
Conclusion
Out of all companies, which are selected, are randomly chosen for the study. Each of
the companies is ranked as follows for investment purpose.
76
COMPANY NAME RANK
INFOSYS 2
GE 1
Tech Mahindra 3
Ranking are given on the basis of the price fluctuation. Wider the fluctuation, bigger
is the rank given to the company,
It suggested to the investors that, if they want to make any investment in the month of
January based on the study made for whole period of month i.e., January 1st to January 31st
according to the ranks given above first preference should be given to GE, next preference is
given to INFOSYS and third position given to TECH MAHINDRA
77
78
79
80
CHAPTER-V
FINDINGS AND SUGGESTION
81
FINDINGS:
decline to 19125.
 The acc price rose from 748.3 on first day to 21 st JAN, there it stood at 753 as high.
As the players in the market with an intention to short or correct the market, the
player’s showed a bearish attitude for the next day where the price fell to 745.65 and
immediately rose to 753.1. Later being the last trading day of the week again the
players became bears as to keep a negative for the next week, which surge the price to
745.65 for the last day of the trading week.
 The mega soft price rose from 445.15 on first day to 21st JAN, there it stood at 464.55
as high. As the players in the market with an intention to short or correct the market,
the player’s showed a bearish attitude for the next day where the price fell to 467.05.
Later being the last trading day of the week again the players became bears as to keep
a negative for the next week, which surge the price to 464.55 for the last day of the
trading week.
 It was found that the price of Infosys stock is quoted at 1st January 2015 2181.25. On
15th January it increased in the next week it increases to 2193.1 again in the next week
it is noticed that price followed an increasing trend to 2257.2 due to improvement in
market conditions. This shows a good sign for an investor.
 It was found in GE that the stock price is quoted at 1st January is 394.75. On 15th
January it increased to 409.5. Again in the next drastically it decreased 406.45 and on
the 31st January 395.5. As trend is decreasing it shows a bad sign to investor.
 It was noticed that the price of the GE stock is quoted 35.2. On 15 th January it
increased to a rate of 36 and in the next week it increased to 36.01. Again in the last
week also it increased to 36.06 this shows good sign to the investor as its price
increasing throughout the month and market conditions of the GE is good.
82
SUGGESTION:
I suggest the exchange authorities take steps to educate investors about their right and
duties, try to increase investor confidence. I suggest the exchange authorities to be vigilant to
curb wide fluctuations of prices on the exchange in the prices, not attracting the genuine
investors to the greater extent towards the market. Try to explain them how the fraud will
take place so that they will be alert and they can take necessary steps to avoid the frauds.
Genuine investors are not at all interested in the speculative gain as their investment is
based on the future profits, therefore the authorities of the exchange should be more vigilant
in imposing heavy margin to curb the speculative of securities.
Necessary steps should be taken by the exchanges to deal with the situation arising
due to break down in online trading.
83
CONCLUSION
CONCLUSIONS:
 Due to the changes in the technology BSE has changed its trading activities into Online
trading system. So that transactions will be performed efficiently.
 Things are changed for the better with the BSE going online coupled with the endeavor to
stream line the whole trading system; things have changed dramatically over the last 3 to
4 years. New and advanced technologies have been reached geographical cultural
barriers, and have brought the country wide market to the door step. Birders of the
Regional stock Exchanges (RSE) have suddenly been thrown to intense competition from
their counter parts across the country
 Tips are available for trading on online and invest wisely. So that the investors can avoid
the fraud.
 The introduction of the online trading would influence in the investors resulting in an
increase in the business of the stock exchange. It has helped the broker handling a vast
amount of transactions and this can be achieved with the vary delivering and settlement
system with the adequate protection to investors. The trading of the BSE of the first day
was 1.8 crores.
 Due to the invention of the online trading there has been grater benefit to the investors as
they could sell / buy shares as and when required & that to with online trading, it will
inspire confidence in investors resulting in increase business of the exchange.
 The regional stock exchange has a greater scope than compared to the earlier times
because of invention of online trading.
 The concept of business has changed, today this is a service oriental industry hence the
survival would require them to provide the best possible to the client.
 The longer trading time had helped the investors as well as the brokers to make much
interest in the trading of securities” has they got extra time to take tin the security market.
 The existing system can be further improved by introduction of stock loss facility, which
will help reduce investor’s losses.
 Also there is a need for exchanges to set up standing committee into breakdown of online
trading.
84
REFERENCE AND BIBILIOGRAPHY
INCLUDE TEXT BOOK FROM SYLLABUS COPY
Financial Services
Investment management
REFERENCE:
 Derivative dealers module work book -NCFM

 Financial Market and Services – Gordan & Natrajan
 Financial Management – Prasanna Chandra
i. News Papers:
 Economic Topics
 Times Of India
 Business Standard
ii. Magazines:
 Business today
 Business world
 Business India
BIBILIOGRAPHY:
 www.karvy.com
 www.nseindia.com
 www.bseindia.com
 www.sebi.com
 www.google.com
85

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Online Trading at Karvy Stock Broking Ltd.

KARVY STOCK BROKING

MASTER OF BUSINESS ADMINISTRATION

H.T NO: 1174-14-672-059

UNDER THE GUIDANCE OF

Mrs. K.B. SARALA

S.D SIGNODIA COLLEGE OF ARTS & COMMERCE & P.G CENTRE

Trading at karvy stock broking submitted by me to the Department of Business

Affiliated To Osmania University, Hyderabad, is a bonafide work undertaken by me and it

certificate or published any time before.

Traditionally stock trading is done through stockbrokers, personally or through

stockbrokers in solving these problems with Online Stock Trading.

India trades in BSE and NSE.

The scope of the project is to clearly understand online trading by studying in a

2 REVIEW OF LITERATURE 8-46

3 COMPANY PROFILE 47-57

FINDINGS, SUGGESTIONS & CONCLUSION

Procedure for Net Trading:

History of Stock Exchange

These were organized as voluntary non-profit making association of brokers to

Growth of Stock Exchanges in India

Bombay Stock Exchange

 BSE was the first stock exchange to be established in India.

SIGNIFICANCE OF THE STUDY

NEED OF THE STUDY

SCOPE OF THE STUDY

 This study also includes knowing the performances of Stock Exchange.

More points to be included

Data collection method includes primary and secondary data.

LIMITATIONS OF THE STUDY

 The study is confined to all related issues in brief.

INDIAN ECONOMIC SCENARIO

At the time of independence in India at 1947 there was no strong financial

FOLLOWING DIAGRAM GIVES THE STRUCTURE OF INDIAN FINANCIAL

(i) Money market

Money market is a place where we can raise short-term capital.

1. Industrial securities market.

As the name implies, it is a market for industrial securities, viz.

1. Primary or New issue market

2. Secondary market or Stock exchange.

Secondary market is a market for secondary sales of securities. In other words,

Secondary Stock Market Structure

Regular Stock Over the counter National stock

Exchange (21A) Exchange of India Exchanges (1)

What is a stock exchange

History of Stock Exchange

Growth of Stock Exchanges in India

Regulatory Frame Work of Stock Exchange

A comprehensive legal framework was provided by the “Securities Contract

Members of the stock exchange:

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

Objectives and Functions of Sebi

 To protect the interest of investors in securities.

SEBI GUIDELINES TO SECONDARY MARKETS: (STOCK EXCHANGES):

 Board of Directors of Stock Exchange has to be reconstituted so as to include non-

ROLLING SETTLEMENT SYSTEM:

BOMBAY STOCK EXCHANGE

 BSE was the first stock exchange to be established in India.

LIST OF RECOGNISED STOCK EXCHANGES AND THEIR ADDRESS.

The stock exchange, Mumbai

Phiroze jeejeebhoy towers,

Dalal street Fort

The Stock exchange, Ahmedabad