CHAPTER - I

INTRODUCTION

1
 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.
(b) Second, fill in the symbol, series and the default quantity.

2
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.

3
 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.

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  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’.

5
 CHAPTER II

RESEARCH METHODOLOGY

6
 2.1 NEED OF THE STUDY
The present study to review the online trading procedure a case study of ONLINE TRADING
at Karvy Stock Broking Limited., as the exchange has changed its trading from it and there is
need to assess theperformance of the capital market.Maintaining good records requires
discipline, just like good trading. Unfortunately, many commodity traders don’t take the time
to track their trading history, which can offer a wealth of information to improve their odds of
successmost professional traders, and those who consistently make money from trading
commodities, keep diligent records of their trading activity. The same cannot be said for the
masses that consistently lose at trading commodities.

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 2.2 OBJECTIVES OF THE STUDY
 It is to analyze the changes in trading after the exchange shifted from outcry to online
trading system.
 It is to study the functions of Karvy Stock Broking Limitedthrough various departments.
 To know the online screen based trading system adopted by Karvy StockBroking
Limitedand about its communication facilities.
 The appropriate configuration to set the network, which would link the Karvy Stock
Broking Limitedto individual / members.
To know about the latest and future development in the stock exchange trading system.

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 2.3 SCOPE OF THE STUDY
‘Investor can assess the company financial strength and factors that affect the company.
Scope of the study is limited. We can say that 70% of the analysis is proved good for the
investor, but the 30% depends upon market sentiment.
The topic is selected to analyses the factors that affect the future EPS of a company based on
fundamentals of the company.
The market standing of the company studied in the order to give a better scope to the Analysis
is helpful to the investors, share holders, creditors for the rating of the company since 2014-15
to 2018-19 collected the data in KARVY BROKAING LIMITED

2.4 PERIOD OF STUDY

The study covers for the period of 1 month i.e from
01-01-2019 to 31-01-2019.

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 2.5 Methods of Data Collection
The data collection methods include both primary and secondary
Primary method: This method includes the data collected from the personal interaction with
authorized members, clerks of the Karvy,Inc.

Secondary method: The secondary data collection method includes:

 The lecturers delivered by the superintendents of respective departments.
 The brochures and material provided by Karvy Stock Broking Limited.
 The data collected from the magazines of the NSE, economic times, etc.
 Various books relating to the investments, capital market and other related topics.
The data was collected from the company website and the other data is collected from
other websites and employees in that organization

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 2.7 LIMITATIONS OF THE STUDY
The study confines to the past and present system of the trading procedure in the and the
Indiainfoline study is confined to the coverage of all the related issues in brief. The data is
collected from the primary and secondary sources and thus is subject to slight variation than
what the study includes in reality.
The study is confined to online trading procedure only. Problems of listing are not
covered due to limited time and to keep the study in manageable limits.
 Time constraint was a major limiting factor. Forty five days were insufficient to even
grasp the theoretical concepts.
 Several other strategies that could have been studied were not done.
 Lack of knowledge with the brokers.
 Difference of theory from practice.
Absence of required knowledge and technology.

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 CHAPTER - III
REVIEW OF LITERATURE

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 ONLINE TRADING
Before getting in to the online trading we should know some things about the internet, e-
commerce and etc
Internet
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 everything 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.
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.
Now we can enter in to the concept known as online trading.
In the past, investors had no option but to contact their broker to get real time access to market
data.
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
Requirements for net trading
For investors:
1. Installation of a computer with required specification
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

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  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.
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.
(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.

15
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:
Following steps explain the step by step approach to on-line trading:
 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
 Order 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.

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 ONLINE TRADING HAS LED TO ADDITIONAL FEATURES SUCH AS:
 Limit / stop orders: orders that can be go unfilled, but there is an extra Charge for this
leeway facility since one need to hold a price.
 Market orders: orders can be filled at unexpected prices, but this type is much more
risky, since you have to buy stock at the given price.
 Cash account: where funds have to be available prior to placing the order.
 Margin account: where orders can be placed against stocks, to increase Purchasing
power.
ADVANTAGES OF ONLINE TRADING:
 Online trading has made it possible for anyone to have easy and efficient access to
more reports and charts than it was previously possible if one went to any brokers'
office. Thus we have access to a lot more information online.
 Online trading has let room for smaller organizations to compete with multinational
organizations since it is no longer a leg it issue. Being online does not identify the size
of any particular organization, therefore, this additional power to the underdogs.
 Online trading has allowed companies to locate themselves where they want as
physical location is not an issue anymore. Companies can establish themselves
according to their gains and losses, for instance where tax (sales and value added
taxes) is best suited to them.
 Online trading gives control to individuals and they can exercise it over accounts thus
comprehend what is going on when they trade. It is like going back to school and re-
educating oneself on how to trade online.
 Individuals’ benefit by saving comparatively a lot more when trading online as the
cost per trade is less.
 Individuals can invest in a variety of products, unlike earlier when people bought
bonds, mutual funds, and stock for long-term basis and sat on them. Now they can
invest in stocks, stock and index options mutual funds, government, and even
insurance.

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INVESTORS REASONS TO TRADE ONLINE:
 They have control over their accounts, can make their own decisions and don’t have to
give reasons for their actions. They are independent.
 They have a reason to participate in the market and learn about it.
 It is 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.
 It will give investors a greater choice and better realization.
 The immediate impact will be competition and benefits will accrue to the investors.
 It will lead to brokerage commissions going down and brokers striving to increase
business afloat.
 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 can create their own portfolio.
HERE ARE THE POSSIBLE DISADVANTAGES:
 When network crashes, there will be problems and delays due to a large influx of rapid
online trading criteria.
 Individuals are restricted to first-hand financial guidance. This simply means that the
individual is himself / herself alone to.
 A tax (sales tax and value added tax) evaluation becomes an issue, especially when
you are trading internationally.
 One has no idea with whom he is dealing with on the other end.
 According to a study conducted by Mary Rowland, careful investor: is online trading
bad for your portfolio, the more one trades the less returns one gets, meaning that an
addicted trader gets, carried away online and begins to trade for too much which
causes losses for him / her.
STOCK EXCHANGES IN INDIA
Stock exchanges are the perfect type of market for securities whether of government and
semi-govt bodies or other public bodies as also for shares and debentures issued by the
joint-stock companies. In the stock market, purchases and sales of shares are affected in
conditions of free competition. Government securities are traded outside the trading ring

18
 in the form of over the counter sales or purchase. The bargains that are struck in the
trading ring by the members of the stock exchanges are at the fairest prices determined by
the basic laws of supply and demand.
Definition of a stock exchange:
“Stock exchange means any body or individuals whether incorporated or not, constituted
for the purpose of assisting, regulating or controlling the business of buying, selling or
dealing in securities.” The securities include:
 Shares of public company.
 Government securities.
 Bonds
History of Stock Exchanges:
The only stock exchanges operating in the 19th century were those of Mumbai setup in
1875 and Ahmedabad set up in 1894. These were organized as voluntary non-profit-
marking associations of brokers to regulate and protect their interests. Before the control
on securities under the constitution in 1950, it was a state subject and the Bombay
securities contracts (control) act of 1925 used to regulate trading in securities. Under this
act, the Mumbai stock exchange was recognized in 1927 and Ahmedabad in 1937. During
the war boom, a number of stock exchanges were organized. Soon after it became a
central subject, central legislation was proposed and a committee headed by A.D.Gorwala
went into the bill for securities regulation. On the basis of the committee’s
recommendations and public discussion, the securities contract (regulation) act became
law in 1956.

Functions of Stock Exchanges:

Stock exchanges provide liquidity to the listed companies. By giving quotations to the
listed companies, they help trading and raise funds from the market. Over the hundred and
twenty years during which the stock exchanges have existed in this country and through their
medium, the central and state government have raised crores of rupees by floating public
loans. Municipal corporations, trust and local bodies have obtained from the public their
financial requirements, and industry, trade and commerce- the backbone of the country’s

19
economy-have secured capital of crores or rupees through the issue of stocks, shares and
debentures for financing their day-to-day activities, organizing new ventures and completing
projects of expansion, diversification and modernization. By obtaining the listing and trading
facilities, public investment is increased and companies were able to raise more funds. The
quoted companies with wide public interest have enjoyed some benefits and assets valuation
has become easier for tax and other purposes.
Various Stock Exchanges in India:
At present there are 23 stock exchanges recognized under the securities contracts (regulation),
Act, 1956. Those are:
Ahmedabad Stock Exchange Association Ltd.
Bangalore Stock Exchange
Bhubaneshwar Stock Exchange Association
Calcutta Stock Exchange
Cochin Stock Exchange Ltd.
Coimbatore Stock Exchange
Delhi Stock Exchange Association
Guwahati Stock Exchange Ltd
Hyderabad Stock Exchange Ltd.(Presently not working)
Jaipur Stock Exchange Ltd
Kanara Stock Exchange Ltd
Ludhiana Stock Exchange Association Ltd
Madras Stock Exchange
Madhya Pradesh Stock Exchange Ltd.
Magadh Stock Exchange Limited
Meerut Stock Exchange Ltd.
Mumbai Stock Exchange
National Stock Exchange of India
OTC Exchange of India
Pune Stock Exchange Ltd.
Saurashtra Kutch Stock Exchange Ltd.
Uttar Pradesh Stock Exchange Association

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Vadodara Stock Exchange Ltd.
Out of these major stock exchanges were:
NSE
The National Stock Exchange of India Limited has genesis in the report of the High Powered
Study Group on Establishment of New Stock Exchanges, which recommended promotion of a
National Stock Exchange by financial institutions (FI’s) to provide access to investors from all
across the country on an equal footing. Based on the recommendations, NSE was promoted
by leading Financial Institutions at the behest of the Government of India and was
incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the
country. On its recognition as a stock exchange under the Securities Contracts (Regulation)
Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM)
segment in June 1994. The Capital Market (Equities) segment commenced operations in
November 1994 and operations in Derivatives segment commenced in June 2000
NSE's mission is setting the agenda for change in the securities markets in India. The NSE
was set-up with the main objectives of:
 Establishing a nation-wide trading facility for equities and debt instruments.
 Ensuring equal access to investors all over the country through an appropriate
communication network.
 Providing a fair, efficient and transparent securities market to investors using
electronic trading systems.
 Enabling shorter settlement cycles and book entry settlements systems, and
 Meeting the current international standards of securities markets.
The standards set by NSE in terms of market practices and technology, have become industry
benchmarks and are being emulated by other market participants.
NSE is more than a mere market facilitator. It's that force which is guiding the industry
towards new horizons and greater opportunities.
BSE
The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The
Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the
Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making

21
Association of Persons (AOP) and is currently engaged in the process of converting itself into
demutualised and corporate entity.
It has evolved over the years into its present status as the premier Stock Exchange in the
country. It is the first Stock Exchange in the Country to have obtained permanent recognition
in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act 1956.The
Exchange, while providing an efficient and transparent market for trading in securities, debt
and derivatives upholds the interests of the investors and ensures redresses of their grievances
whether against the companies or its own member-brokers. It also strives to educate and
enlighten the investors by conducting investor education programmers and making available
to them necessary informative inputs.
A Governing Board having 20 directors is the apex body, which decides the policies and
regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors,
who are from the broking community (one third of them retire ever year by rotation), three
SEBI nominees, six public representatives and an Executive Director & Chief Executive
Officer and a Chief Operating Officer.
The Executive Director as the Chief Executive Officer is responsible for the day-to-day
administration of the Exchange and the Chief Operating Officer and other Heads of
Department assist him.
The Exchange has inserted new Rule No.126 A in its Rules, Byelaws pertaining to
constitution of the Executive Committee of the Exchange. Accordingly, an Executive
Committee, consisting of three elected directors, three SEBI nominees or public
representatives, Executive Director & CEO and Chief Operating Officer has been constituted.
The Committee considers judicial & quasi matters in which the Governing Board has powers
as an Appellate Authority, matters regarding annulment of transactions, admission,
continuance and suspension of member-brokers, declaration of a member-broker as defaulter,
norms, procedures and other matters relating to arbitration, fees, deposits, margins and other
monies payable by the member-brokers to the Exchange, etc.
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

22
 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.
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.

23
  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:
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

24
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.
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.

25
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.
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.

26
 CHAPTER - IV
INDUSTRY PROFILE
&
COMPANY PROFILE

27
INDUSTRY PROFILE
Stocks that respond to interest rate moves, coupled with select debt schemes, are likely to be
the winners in 2015, with the Reserve Bank of India expected to start easing its monetary
policy.
Fund managers said economic prospects have improved, but the New Year may be tougher for
equity investors to make money as valuations of many stocks are rich after the broad-based
rally in 2014. Concern over interest rate hike in the US and weak global crude oil prices may
also keep investors on.
India is among the top-performing emerging markets in 2014. So far in 2014, the Sensex has
gained 34%. Smaller companies have fared even better, with the BSE Mid Cap index surging
56% and the BSE Small Cap Index jumping 75%.
Though the falling crude prices have improved the prospects of the Indian economy, India
may not be spared if there is an emerging market sell-off. "On the global front, oil exporting
nations could face problems, and there could be a global risk aversion.
Market participants consider probable interest rate cuts by the Reserve Bank of India (RBI) as
the biggest trigger for the economy and the markets. The extent of monetary policy easing
would determine the strength of rally in shares of the so-called interest rate-sensitive sectors
such as banks, auto, real estate and bonds.
Fund managers said debt funds could offer good returns in the coming year as a fall in interest
rates could lead to an appreciation in bond prices. With wholesale price inflation coming at nil
for November, expectations of interest rate cuts as early as in the March quarter are high.
"Shortterm rates can fall more than long-term rates. We expect consumer inflation to be in the
range of 5-5.5%, and expect RBI to cut interest rates by 50 basis points in 2015," said Dhawal
Dalal, executive V-P and head (fixed income), DSP BlackRock Mutual Fund. If interest rates
fall by 50 basis points, investors could see a 5% capital appreciation on their long-term gilt
fund portfolio.
Measured by BSE Sensex, stock market has generated a positive return of about 9 per cent for
investors in 2013, while gold prices fell by about three per cent and its poorer cousin silver
plummeted close to 24 per cent.

28
After outperforming stock market for more than a decade, gold has been on back foot for two
consecutive years now vis-a-vis equities, shows an analysis of their price movements.
"Gold's under-performance was mainly due to prices falling in dollar terms amid anticipated
tapering over last several months combined with FII investment in Indian stocks.
"This movement has been equally true for global markets as 2013 saw gold losing its shine
and markets coming back with a bang," said Jayant Manglik, President Retail Distribution,
Religare Securities.
"As always, gold and stock prices follow opposite trends and this year was no different except
that both changed direction," he said.
Improvement in the world economy has brought the risk appetite back amongst retail
investors and this has drenched the liquidity from safe havens such as gold leading to its
under-performance, an expert said.
In 2012, the Sensex had gained over 25 per cent, which was nearly double the gain of about
12.95 per cent in gold. The appreciation in silver was at about 12.84 per last year.
According to Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio, "Markets have
particularly shown great strength post July-August 2013 when RBI took some strong
measures to control the steeply depreciating rupee."
"When the US Fed gave indications that it might taper its stimulus programme given the
economy shows improvement, a knee-jerk correction was seen in most risky assets, including
stocks in Indian markets. However, assurance by the Fed about planned and staggered
tapering in stimulus once again proved to be a catalyst for the markets."
"External factors affecting Indian stocks seem to be negative for the first half of 2014 due to
continued strength of the US dollar and benign in the second half. By that time, elections too
would have taken place. A combination of domestic and international factors point to a
bumper closing of Indian markets in 2014 with double-digit percentage growth," he said.
Stock market segment mid-cap and small-cap indices have fallen by about 10 per cent and 16
per cent, respectively, in 2013.
Foreign Institutional Investors have bought shares worth over Rs 1.1 lakh crore (nearly USD
20 billion) till December 19. In 2012, they had pumped in Rs 1.28 lakh crore (USD 24.37
billion).

29
Evolution
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years
ago. The earliest records of security dealings in India are meager and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used to
be transacted towards the close of the eighteenth century.
By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
recognized by banks and merchants during 1840 and 1850.
The 1850's witnessed a rapid development of commercial enterprise and brokerage business
attracted many men into the field and by 1860 the number of brokers increased into 60.
In 1860-61 the American Civil War broke out and cotton supply from United States of Europe
was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about
200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began
(for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs.
87).
At the end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business. In 1887, they formally established in Bombay,
the "Native Share and Stock Brokers' Association" (which is alternatively known as " The
Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it
was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.
Other leading cities in stock market operations
Ahmadabad gained importance next to Bombay with respect to cotton textile industry. After
1880, many mills originated from Ahmadabad and rapidly forged ahead. As new mills were
floated, the need for a Stock Exchange at Ahmadabad was realized and in 1894 the brokers
formed "The Ahmadabad Share and Stock Brokers' Association".
What the cotton textile industry was to Bombay and Ahmadabad, the jute industry was to
Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta.

30
After the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares, which
was followed by a boom in tea shares in the 1880's and 1890's; and a coal boom between 1904
and 1908. On June 1908, some leading brokers formed "The Calcutta Stock Exchange
Association".
In the beginning of the twentieth century, the industrial revolution was on the way in India
with the Swadeshi Movement; and with the inauguration of the Tata Iron and Steel Company
Limited in 1907, an important stage in industrial advancement under Indian enterprise was
reached.
Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies generally
enjoyed phenomenal prosperity, due to the First World War.
In 1920, the then demure city of Madras had the maiden thrill of a stock exchange functioning
in its midst, under the name and style of "The Madras Stock Exchange" with 100 members.
However, when boom faded, the number of members stood reduced from 100 to 3, by 1923,
and so it went out of existence.
In 1935, the stock market activity improved, especially in South India where there was a rapid
increase in the number of textile mills and many plantation companies were floated. In 1937,
a stock exchange was once again organized in Madras - Madras Stock Exchange Association
(Pvt) Limited. (In 1957 the name was changed to Madras Stock Exchange Limited).
Lahore Stock Exchange was formed in 1934 and it had a brief life. It was merged with the
Punjab Stock Exchange Limited, which was incorporated in 1936.
Indian Stock Exchanges - An Umbrella Growth
The Second World War broke out in 1939. It gave a sharp boom which was followed by a
slump. But, in 1943, the situation changed radically, when India was fully mobilized as a
supply base.
On account of the restrictive controls on cotton, bullion, seeds and other commodities, those
dealing in them found in the stock market as the only outlet for their activities. They were
anxious to join the trade and their number was swelled by numerous others. Many new
associations were constituted for the purpose and Stock Exchanges in all parts of the country
were floated.

31
The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940)
and Hyderabad Stock Exchange Limited (1944) were incorporated.
In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and the
Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947,
amalgamated into the Delhi Stock Exchnage Association Limited.
Post-independence Scenario
Most of the exchanges suffered almost a total eclipse during depression. Lahore Exchange
was closed during partition of the country and later migrated to Delhi and merged with Delhi
Stock Exchange.
Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963.
Most of the other exchanges languished till 1957 when they applied to the Central
Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only
Bombay, Calcutta, Madras, Ahmadabad, Delhi, Hyderabad and Indore, the well established
exchanges, were recognized under the Act. Some of the members of the other Associations
were required to be admitted by the recognized stock exchanges on a concessional basis, but
acting on the principle of unitary control, all these pseudo stock exchanges were refused
recognition by the Government of India and they thereupon ceased to function.
Thus, during early sixties there were eight recognized stock exchanges in India (mentioned
above). The number virtually remained unchanged, for nearly two decades. During eighties,
however, many stock exchanges were established: Cochin Stock Exchange (1980), Uttar
Pradesh Stock Exchange Association Limited (at Kanpur, 1982), and Pune Stock Exchange
Limited (1982), Ludhiana Stock Exchange Association Limited (1983), Gauhati Stock
Exchange Limited (1984), Kanara Stock Exchange Limited (at Mangalore, 1985), Magadh
Stock Exchange Association (at Patna, 1986), Jaipur Stock Exchange Limited (1989),
Bhubaneswar Stock Exchange Association Limited (1989), Saurashtra Kutch Stock Exchange
Limited (at Rajkot, 1989), Vadodara Stock Exchange Limited (at Baroda, 1990) and recently
established exchanges - Coimbatore and Meerut. Thus, at present, there are totally twenty one
recognized stock exchanges in India excluding the Over The Counter Exchange of India
Limited (OTCEI) and the National Stock Exchange of India Limited (NSEIL).
The Table given below portrays the overall growth pattern of Indian stock markets since
independence.

32
It is quite evident from the Table that Indian stock markets have not only grown just in
number of exchanges, but also in number of listed companies and in capital of listed
companies. The remarkable growth after 1985 can be clearly seen from the Table, and this
was due to the favouring government policies towards security market industry.
Trading Pattern of the Indian Stock Market
Trading in Indian stock exchanges are limited to listed securities of public limited companies.
They are broadly divided into two categories, namely, specified securities (forward list) and
non-specified securities (cash list). Equity shares of dividend paying, growth-oriented
companies with a paid-up capital of atleast Rs.50 million and a market capitalization of atleast
Rs.100 million and having more than 20,000 shareholders are, normally, put in the specified
group and the balance in non-specified group.
Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery
transactions "for delivery and payment within the time or on the date stipulated when entering
into the contract which shall not be more than 14 days following the date of the contract" :
and (b) forward transactions "delivery and payment can be extended by further period of 14
days each so that the overall period does not exceed 90 days from the date of the contract".
The latter is permitted only in the case of specified shares. The brokers who carry over the
outstandings pay carry over charges (cantango or backwardation) which are usually
determined by the rates of interest prevailing.
A member broker in an Indian stock exchange can act as an agent, buy and sell securities for
his clients on a commission basis and also can act as a trader or dealer as a principal, buy and
sell securities on his own account and risk, in contrast with the practice prevailing on New
York and London Stock Exchanges, where a member can act as a jobber or a broker only.
The nature of trading on Indian Stock Exchanges are that of age old conventional style of
face-to-face trading with bids and offers being made by open outcry. However, there is a great
amount of effort to modernize the Indian stock exchanges in the very recent times.
Over The Counter Exchange of India (OTCEI)
The traditional trading mechanism prevailed in the Indian stock markets gave way to many
functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long

33
settlement periods and benami transactions, which affected the small investors to a great
extent.
To provide improved services to investors, the country's first ringless, scripless, electronic
stock exchange - OTCEI - was created in 1992 by country's premier financial institutions -
Unit Trust of India, Industrial Credit and Investment Corporation of India, Industrial
Development Bank of India, SBI Capital Markets, Industrial Finance Corporation of India,
General Insurance Corporation and its subsidiaries and CanBank Financial Services.
Trading at OTCEI is done over the centres spread across the country. Securities traded on the
OTCEI are classified into:
 Listed Securities - The shares and debentures of the companies listed on the OTC can
be bought or sold at any OTC counter all over the country and they should not be
listed anywhere else
 Permitted Securities - Certain shares and debentures listed on other exchanges and
units of mutual funds are allowed to be traded
 Initiated debentures - Any equity holding atleast one lakh debentures of a particular
scrip can offer them for trading on the OTC.
OTC has a unique feature of trading compared to other traditional exchanges. That is,
certificates of listed securities and initiated debentures are not traded at OTC. The original
certificate will be safely with the custodian. But, a counter receipt is generated out at the
counter which substitutes the share certificate and is used for all transactions.
In the case of permitted securities, the system is similar to a traditional stock exchange. The
difference is that the delivery and payment procedure will be completed within 14 days.
Compared to the traditional Exchanges, OTC Exchange network has the following
advantages:
 OTCEI has widely dispersed trading mechanism across the country which provides
greater liquidity and lesser risk of intermediary charges.
 Greater transparency and accuracy of prices is obtained due to the screen-based
scripless trading.
 Since the exact price of the transaction is shown on the computer screen, the investor
gets to know the exact price at which s/he is trading.

34
  Faster settlement and transfer process compared to other exchanges.
 In the case of an OTC issue (new issue), the allotment procedure is completed in a
month and trading commences after a month of the issue closure, whereas it takes a
longer period for the same with respect to other exchanges.
Thus, with the superior trading mechanism coupled with information transparency investors
are gradually becoming aware of the manifold advantages of the OTCEI.
National Stock Exchange (NSE)
With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock
market trading system on par with the international standards. On the basis of the
recommendations of high powered Pherwani Committee, the National Stock Exchange was
incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and
Investment Corporation of India, Industrial Finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.
Trading at NSE can be classified under two broad categories:
(a) Wholesale debt market and
(b) Capital market.
Wholesale debt market operations are similar to money market operations - institutions and
corporate bodies enter into high value transactions in financial instruments such as
government securities, treasury bills, public sector unit bonds, commercial paper, certificate
of deposit, etc.
There are two kinds of players in NSE:
(a) Trading members and
(b) Participants.
Recognized members of NSE are called trading members who trade on behalf of themselves
and their clients. Participants include trading members and large players like banks who take
direct settlement responsibility.
Trading at NSE takes place through a fully automated screen-based trading mechanism which
adopts the principle of an order-driven market.
Trading members can stay at their offices and execute the trading, since they are linked
through a communication network. The prices at which the buyer and seller are willing to
transact will appear on the screen.

35
When the prices match the transaction will be completed and a confirmation slip will be
printed at the office of the trading member.
NSE has several advantages over the traditional trading exchanges. They are as follows:
 NSE brings an integrated stock market trading network across the nation.
 Investors can trade at the same price from anywhere in the country since inter-market
operations are streamlined coupled with the countrywide access to the securities.
 Delays in communication, late payments and the malpractice’s prevailing in the
traditional trading mechanism can be done away with greater operational efficiency
and informational transparency in the stock market operations, with the support of
total computerized network.
Unless stock markets provide professionalized service, small investors and foreign investors
will not be interested in capital market operations. And capital market being one of the major
source of long-term finance for industrial projects, India cannot afford to damage the capital
market path. In this regard NSE gains vital importance in the Indian capital market system.
Preamble
Often, in the economic literature we find the terms ‘development’ and ‘growth’ are used
interchangeably. However, there is a difference. Economic growth refers to the sustained
increase in per capita or total income, while the term economic development implies sustained
structural change, including all the complex effects of economic growth. In other words,
growth is associated with free enterprise, where as development requires some sort of control
and regulation of the forces affecting development. Thus, economic development is a process
and growth is a phenomenon.
Economic planning is very critical for a nation, especially a developing country like India to
take the country in the path of economic development to attain economic growth.
Why Economic Planning for India?
One of the major objective of planning in India is to increase the rate of economic
development, implying that increasing the rate of capital formation by raising the levels of
income, saving and investment. However, increasing the rate of capital formation in India is
beset with a number of difficulties. People are poverty ridden. Their capacity to save is
extremely low due to low levels of income and high propensity to consume.

36
Therefor, the rate of investment is low which leads to capital deficiency and low productivity.
Low productivity means low income and the vicious circle continues. Thus, to break this
vicious economic circle, planning is inevitable for India.
The market mechanism works imperfectly in developing nations due to the ignorance and
unfamiliarity with it. Therefore, to improve and strengthen market mechanism planning is
very vital. In India, a large portion of the economy is non-monitised; the product, factors of
production, money and capital markets is not organized properly. Thus the prevailing price
mechanism fails to bring about adjustments between aggregate demand and supply of goods
and services. Thus, to improve the economy, market imperfections has to be removed;
available resources has to be mobilized and utilized efficiently; and structural rigidities has to
be overcome. These can be attained only through planning.
In India, capital is scarce; and unemployment and disguised unemployment is prevalent. Thus,
where capital was being scarce and labour being abundant, providing useful employment
opportunities to an increasing labour force is a difficult exercise. Only a centralized planning
model can solve this macro problem of India.
Further, in a country like India where agricultural dependence is very high, one cannot ignore
this segment in the process of economic development. Therefore, an economic development
model has to consider a balanced approach to link both agriculture and industry and lead for a
paralleled growth. Not to mention, both agriculture and industry cannot develop without
adequate infrastructural facilities which only the state can provide and this is possible only
through a well carved out planning strategy. The government’s role in providing infrastructure
is unavoidable due to the fact that the role of private sector in infrastructural development of
India is very minimal since these infrastructure projects are considered as unprofitable by the
private sector.
Further, India is a clear case of income disparity. Thus, it is the duty of the state to reduce the
prevailing income inequalities. This is possible only through planning.

37
 COMPANY PROFILE
Background:
Karvy Stock Broking Limited, one of the cornerstones of the Karvy edifice, flows freely
towards attaining diverse goals of the customer through varied services. Creating a plethora of
opportunities for the customer by opening up investment vistas backed by research-based
advisory services. Here, growth knows no limits and success recognizes no boundaries.
Helping the customer create waves in his portfolio and empowering the investor completely is
the ultimate goal.
Stock Broking Services
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 and Bombay 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", which analyzes the latest stock market trends and takes a close look at the various

38
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 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.
To empower the investor further we have made serious efforts to ensure that our research calls
are disseminated systematically to all our stock broking clients through various delivery
channels like email, chat, SMS, phone calls etc.
Our foray into commodities broking has been path breaking and we are in the process of
converting existing traders in commodities into the more organized mainstream of trading in
commodity futures, both as a trading and risk hedging mechanism.
In the future, our focus will be on the emerging businesses and to meet this objective, we have
enhanced our manpower and revitalized our knowledge base with enhances focus on Futures
and Options as well as the commodities business.
Depository Participants
The onset of the technology revolution in financial services Industry saw the emergence of
Karvy as an electronic custodian registered with National Securities Depository Ltd
(NSDL) and Central Securities Depository Ltd (CSDL) in 1998.

39
Karvy set standards enabling further comfort to the investor by promoting paperless trading
across the country and emerged as the top 3 Depository Participants in the country in terms
of customer serviced.
Offering a wide trading platform with a dual membership at both NSDL and CDSL, we are a
powerful medium for trading and settlement of dematerialized shares. We have established
live DPMs, Internet access to accounts and an easier transaction process in order to offer more
convenience to individual and corporate investors. A team of professional and the latest
technological expertise allocated exclusively to our demat division including technological
enhancements like SPEED-e, make our response time quick and our delivery impeccable. A
wide national network makes our efficiencies accessible to all.
Karvy Consultants Limited was started in the year 1981, with the vision and enterprise of a
small group of practicing Chartered Accountants. Initially it was started with consulting and
financial accounting automation, and carved inroads into the field of registry and share
accounting by 1985. Since then, it has utilized its experience and superlative expertise to go
from strength to strength…to better its services, to provide new ones, to innovate, diversify
and in the process, evolved as one of India’s premier integrated financial service enterprise.
Today, Karvy has access to millions of Indian shareholders, besides companies, banks,
financial institutions and regulatory agencies. Over the past one and half decades, Karvy has
evolved as a veritable link between industry, finance and people. In January 1998, Karvy
became the first Depository Participant in Andhra Pradesh. An ISO 9002 company, Karvy's
commitment to quality and retail reach has made it an integrated financial services company.
An 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 16 million individual investors in
various capacities, and provides investor services to over 300 corporates, comprising the who
is who of Corporate India.
KARVY covers the entire spectrum of financial services such as Stock broking, Depository
Participants, Distribution of financial products - mutual funds, bonds, fixed deposit, equities,
Insurance Broking, Commodities Broking, Personal Finance Advisory Services, Merchant
Banking & Corporate Finance, placement of equity, IPOs, among others.

40
Karvy has a professional management team and ranks among the best in technology,
operations and research of various industrial segments.
Today, Karvy service over 6.5 lakhs customer accounts spread across over 250 cities/towns in
India and serves more than 85 million shareholders across 7500 corporate clients and makes
its presence felt in over 15 countries across 5 continents. All of Karvy services are also backed
by strong quality aspects, which have helped Karvy to be certified as an ISO 9002 company
by DNV.
ACHIEVEMENTS:
 Among the top 5 stock brokers in India (4% of NSE volumes)
 India's No. 1 Registrar & Securities Transfer Agents
 Among the top 3 Depository Participants
 Largest Network of Branches & Business Associates
 ISO 9001:2000 certified operations by DNV
 Among top 10 Investment bankers
 Largest Distributor of Financial Products
 Adjudged as one of the top 50 IT uses in India by MIS Asia
 Full Fledged IT driven operations
 First ISO-9002 Certified Registrars in India
 Ranked as “The Most Admired Registrar” by MARG
 Largest mobilize of funds as per PRIME DATABASE
 First depository participant from Andhra Pradesh.
 Handled over 500 public issues as Registrars.
 Handling the Reliance account, which accounts for nearly 10 million account
holders?
Range of services:
 Stock broking services
 Distribution of Financial Products (investments & loan products)
 Depository Participant services
 IT enabled services
 Personal finance Advisory Services

41
  Private Client Group
 Debt market services
 Insurance & merchant banking
 Mutual Fund Services
 Corporate Shareholder Services
 Other global services
Besides these, they also offer special portfolio analysis packages that provide daily technical
advice on scrips for successful portfolio management and provide customized advisory
services to help customers make the right financial moves that are specifically suited to their
portfolio. They are continually engaged in designing the right investment portfolio for each
customer according to individual needs and budget considerations.

Karvy stock broking is a member of National Stock Exchange (NSE), The Bombay Stock
Exchange (BSE), and The Hyderabad Stock Exchange (HSE). The services provided are multi
dimensional and multi-focused in their scope: to analyze the latest stock market trends and to
take a close looks at the various investment options and products available in the market.
Besides this, they also offer special portfolio analysis packages.

Karvy is recognized as a leading merchant banker in the country, Karvy is registered with
SEBI as a Category I merchant banker. This reputation was built by capitalizing on
opportunities in corporate consolidations, mergers and acquisitions and corporate
restructuring.

Karvy has a tie up with the world’s largest transfer agent, the leading Australian company,
Computer share Limited. It has attained a position of immense strength as a provider of
across-the-board transfer agency services to AMCs, Distributors and Investors. Besides

42
providing the entire back office processing, it also provides the link between various Mutual
Funds and the investor.

Karvy global services limited covers Banking, Financial and Insurance Services (BFIS),
Retail and Merchandising, Leisure and Entertainment, Energy and Utility and Healthcare
sectors.

Karvy Insurance Broking Pvt. Ltd. provides both life and non-life insurance products to
retail individuals, high net-worth clients and corporates. With Indian markets seeing a sea
change, both in terms of investment pattern and attitude of investors, insurance is no more
seen as only a tax saving product but also as an investment product.

Karvy Inc. is located in New York to provide various financial products and information
on Indian equities to potential foreign institutional investors (FIIs) in the region. This entity
would extensively facilitate various businesses of Karvy viz., stock broking (Indian equities),
research and investment by QIBs in Indian markets for both secondary and primary offerings.
Quality Policy:
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.

43
  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

44
 CHAPTER - V
DATA ANALYSIS AND
INTERPRETATION

45
DATA ANALYSIS & INTERPRETATION
OUTCRY SYSTEM
The broker has to buy or sell securities for which he has received the orders. For this, the
broker or his authorized representatives goes to the stock exchange. This method is called the
open outcry system. Basically the brokers shout while buying or selling the securities. The
floor of the stock exchange is divided into a number of markets also known as ‘post pit’ or
wing based on particular securities dealt there.
In the post pit or wing, the broker using ‘open outcry’ method makes an offer or bid price.
For making the necessary bargain, he quotes his purchase or sale price, also known as offer or
bid price. The dealer, to whom the price is quoted, quotes his own price when the quotation of
the dealer suits the broker, he may loose the bargain. If he is not satisfied with the quote price,
he may turn to some other dealer. On the close of the bargain, the dealer as well as the broker
makes a brief note of the particulars of the deal. Such notes are made on some pad and on it
the number of shares, the price agreed upon, the name of the party, what membership number
etc., are noted.
DISADVANTAGES OF OUTCRY SYSTEM:
 It lacks transparency.
 The scope of manipulation, speculation and mal practice is more.
 Signal were more important in the outcry system any member who could not interpret the
buy/sell signal correctly often landed himself in disaster situation.
 In audibility was another disadvantage of the outcry system.
 Due to the above disadvantages of the outcry system the Networth Stock Broking Ltd
has shifted from outcry system to online trading from February 29th 1997.
MANUAL TRADING
Trading procedure before introduction of online trading
Trading on stock exchanges is officially done in the trading ring. In the trading ring the space
is provided for specified and non-specified sections, the members and their authorized
assistants have to wear a badge or carry with them an identity card given by the exchange to
enter the trading ring. They carry a sauda book or confirmation memos, duly authorized by
the exchange and carry a pen with them.

46
The stock exchanges operations are floor level are technical in nature .Non-members are not
permitted to enter in to stock market. Hence various stages have to be completed in executing
a transaction at a stock exchange .The steps involved in this method of trading have given
below:
Choice of broker:
The prospective investor who wants to buy shares or the investors, who wants to sell
shares and transact business, have to act through member brokers only. They can also appoint
their bankers for this purpose as per the present regulations.
Placement of order:
The next step is the placing order for the purchase or sale of securities with a broker. The
order is usually placed by telegram, telephone, letter, fax etc or in person. To avoid delay, it is
placed generally over the phone. The orders may take any one of the forms such as At Best
Orders, Limit Order, Immediate or Cancel Order, Limited Discretionary Order, and Open
Order, Stop Loss Order.
Execution of order or contract:
Orders are executed in the trading ring of the BSE. This works from 11:30 to 2.30 P.M on
all working days Monday to Friday, and a special one-hour session on Saturday. The members
or the authorized assistants have to wear a badge given by the exchange to enter into the
trading ring. They carry a sauda Block Book or conformation memos, which are duly
authorized by the exchange when the deal is struck; both broker and jobber make a note in
their sauda block books. From the sauda book, the contract notes are drawn up and posted to
the client. A contract note is written agreement between the broker and his clients for the
transaction executed.
Drawing Up and Bills:
Both sale and purchase bills are prepared along with the contract note and it is posted on the
same day or the next day. This in a purchase transaction, once the shares are delivered to the
client effects payment for the purchases and pays the stamp fees for transfer, a bill is made out
giving the total cost of purchase, including other expenses incurred by the broker in the price
itself. With this, the process ends.

47
DEMATERLIZATION:
Dematerialization is the process by which physical certificates of an investor are converted to
an equipment number of securities in electronic from and credited in the investor account
with his DP. In order to dematerialize the certificates, an investor has to first open an account
with a DP and then request for the Dematerialization Request Form, which is DP and submit
the same along with the share certificates. The investor has to ensure that he marks
“Submitted for Dematerialization” on the certificates before the shares are handed over to the
DP for demat. Dematerialization can only be done to those certificates, which are already
registered in your name and belong to the list of securities admitted for Dematerialization at
NSDL.
Most of the active scrip’s in the market including all the scrip’s of S&P CNX NIFTY and
BSE SENSEX have already joined NSDL. This list is steadily increasing.
Briefly, the process is as follows: after completion of transfer, the investor gets the option to
dematerialize such shares. Investor’s willing to exercise this option sends a Demat request
along with the option letter sent by the company to his DP. The company or its R&T agent
would confirm the Demat request on its receipt from the DP to reduce risk of loss in transit.
Dematerialized shares do not have any distinctive or certificate numbers. These shares are
fungible-which means that 100 shares of a security are the same as any other 100 shares of
the security. Odd lot shares certificates can also be dematerialized.
Dematerialization normally takes about fifteen to thirty days. To get back dematerialized
securities in the physical form, request DP for Rematerialization of the same is made.
Rematerialization is the process of converting electronic shares in to physical shares.
Benefits of Demat:
 It reduces the risk of bad deliveries, in turn saving the cost and wastage of time
associated with follow up for rectification. This has lead to reduction in brokerage
to the extent of 0.5% by quite a few brokerage firms.
 In case of transfer of electronic shares, you save 0.5% in stamp duty. You avoid the
cost of courier / notarization.
 You can receive your bonuses and rights issues into your DA as a direct credit, this
eliminating risk of loss in transit.

48
  You can also expect a lower interest charge for loans taken against Demat shares
as compared to loans against physical shares.
 There is no lost in transit, thus the overheads of getting a duplicate copy in such
circumstances is reduced.
 RBI has also reduced the minimum margin to 25% for loans against
dematerialized securities as against 50% for loans against physical securities.
TRADING AND SETTLEMENT AT SHARE KHAN
The NSE first introduced online trading in India. The Online trading system imparted a
greater level of transparency and investors preferred exchanges that offered Online trading
because of the following factors:
The ease of operation from the view of the both members and the investors.
 Increase in the confidence of the investors because of higher level of transparency.
 Facilities better monitoring of the market by the exchange.
 The best price achieved in buying and selling.
All these resulted in ever-increasing volumes on the exchanges offering the online trading.
TRADING PROCEDURE AT SHARE KHAN STOCK BROCKING
Share Khan deals in buying and selling equity shares and debentures on the National Stock
Exchange (NSE), the Bombay Stock Exchange (BSE) and the Over-The-Counter Exchange of
India (OTCEI).
Share Khan is provided with a computer and required software from their registered stock
exchanges. These centers are called “Broker Work Stations”. These computers are connected
to the server at the stock exchanges through cable.
The member or broker sitting in his office can send the quotations, orders, negotiations, deals,
in-house deals, auction orders etc., through the computer. The Central trading system (CTS)
will accept these orders and send it for match. If there is any mistake in the order, CTS will
reject the orders and send respective error message to the member concern. All these
operations are in built. The main objective of CTS is to monitor the Stock Exchanges
operations.

49
Order placed by the broker will be sent for a match and if the match is found suitable, the
transaction will be executed. Otherwise, the order will be deleted automatically after
completion of trading time. The carry forward transactions (Good Till cancellation) are
forwarded to the next day. Even if the match is not found with in the prescribed period, the
order will not cancel.
TRADING SESSION
Trading timings are from 9:55 A.M. to 3:30 P.M. on all 5 days of the trading period.
Monday to Friday is the trading period in all the stock exchanges. SEBI has stipulated that all
the stock exchanges in India must have same trading period.
BROKER WORK STATION:
At the broker workstation the BBO’s, the last traded price, the day‘s opening price,
previous day’s closing price, highest and lowest prices, the weighted average price and total
trade value will be available continuously, as the BBO for each scrip.
Other information will be available on query from the BWS. These include top gainers /losers
of the day. Trader-wise, scrip wise net position, client wise net position, top scrip by the
volume/value, market summary etc.
Brokers are also provided with information relating to the companies in the matter of Book
closure, Dividend declarations, resolutions in board meeting, information about liquidated
companies, company report etc.
ORDERS:
 Orders can be done one at a time or in a batch mode.
 The submitted order will be accepted at the CTS, after validation if it finds any invalid
reason the order is return back to the BWS, with the appropriate error message.
 If Accepted at the CTS it will be added to the local pending order book.
 The order will then be taken up for matching, if it is a buy order the system tries to
find a sell order, which fits the requirement of the buy order, when such match is
found a trade gets executed. Each trade involves two brokers and
respective traders who sent the order. Both these traders are informed of the trade
being executed at their respective BWS.
 At the BWS the trade is added to the local trade book.

50
Orders sent by the brokers are two types:
 Good for the day (GFD)
 Good till cancellation(GTC)
Good for the day:
This is also called as “market order”. For an order if the member selects the deal as
good for the day, the order is treated as market order. If a “best bid” founds match with “best
order” then the transaction gets executed. If the match is not found then after trade time the
order gets cancelled that day. Next day he has to place a new order.
For example if a member wants to purchase 1000 shares of Wipro info @ 400 each through
Good for Day order. If the correct match is not found, order gets cancelled automatically and
new quotation has to be placed the next day.
Good till cancellation:
This order is forwarded to the last trading day of that settlement period. This is also
called as carry forward order like GFD; broker has to select the option of GTC for the order. If
the order finds match with in the trading settlement period, the order is executed. If no match
is found, the order is cancelled on the last day of settlement period. This order is not carried
forward to the next settlement period.
For example, if a member a place purchase order of 500 shares of SBI @ 690 per share and
selects the order as GTC and place an order. If the match is not found on that day it will be
forwarded to the next day until trading settlement period day.
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 Networth Stock Broking Ltd
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.
Spot settlement: under this method, the delivery of securities and payment for them are
affected on the day of the contract itself.

51
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.

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The given flow chart clearly explains the process of online trading:

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 a c c o u n t q u an tity
lim its

O rd e rs ac 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 a c 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 ree 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

STOCK TRADES

53
 The stock order entry screen, located at the top of the platform, allows you to buy, sell, and
sell short. The Save to Basket button can save any order that you may want to place later.
To Place an Order
1. Click the Equities tab at the top of the page. The screen will show
"EQUITIES" at the top right-hand corner to let you know that you are in
stock-trading mode.
2. Select Buy, Sell, or Short from the drop-down menu below SIDE.
3. Enter the number of shares in Qty box.
4. Enter the symbol m Symbol box.
5. For a market order, click Market. For a limit order, enter the limit price
and click the Limit button. For a Good Till Canceled order, click GTC.
6. Click Submit to send the order,
7. If it is a GTC order, select 15 Days or 30 Days for the GTC order. Click
OK to send the order. If you do not want to send the order or if you want
to make changes, click Cancel.

8. A window will appear (as the picture) asking you to confirm the order. If all details are
correct, click OK to send the order. If you do not want to send the order, or if you want
to make changes, click Cancel.

54
To Save an Order into the Basket
You can enter an order and click the shopping cart icon to save it. Click Basket tab to see
the trades you have saved. Orders saved to the Basket are not sent to the market until you
decide to do so. This is not the same as placing Good Till Canceled or other open orders.
To Place an Order from the Watch List
You can also place an order from your Watch List

55
OPTION QUOTES AND OPTION TRADES
To Get Option Quotes
1. Click the Option Chain tab to open the option quote screen.
2. Enter the stock symbol in the Equity Symbol field.
3. Select the strike price from By Strike.
4. Select the expired month from the By Exp. Month.
5. Select the range of option quotes you would like to view from
Calls, Puts, or All
6. Click Go. The screen will list all the option symbols and current Market prices
associated with your criteria.
7. To Place an Option Trade
1. Click the Option button at the top left hand corner to open the option order entry
screen. OPTION will appear at the upper right-hand corner to let you know that you
are in Option mode.
1. Follow the above steps to open the option quote screen and get the option symbol.
2. In the Option Chain quote screen, double click the symbol, which you would like to
place an order.
3. The option order entry screen at the top will show the real-time quote of the option.
4. Select: Buy to Open, Sell to Open, Buy to Close, or Sell to Close from the drop-down
menu below SIDE.
5. Enter the number of contracts in the # of Contracts field.
6. Click Market, or enter a limit price and click Lim (Limit). For a Good Till Canceled
order, click GTC.
7. Click Submit
8. If it is a GTC order, select 15 Days or 30 Days for the GTC order. Click OK to send
the order. If you do not want to send the order or if you want to make changes, click
Cancel.

56
9. A window will appear (as the picture) asking you to confirm your order. If the information
is correct, click OK to send the order. If you click Cancel, the order will not be sent to
market.
LEVEL I QUOTE
The Level I real-time streaming quote updates automatically every five seconds and
continually throughout market hours.
To Get Quotes
1. Enter a symbol in the field located on the left-hand side. You can also click the small
arrow at the right to select a symbol you previously entered in the same day.
2. Press the Enter key on your keyboard or select Get Quotes (under the Select
Action drop-down menu) to display real-time streaming quotes.
a) Detailed Quotes:
Detailed quote, intra-day charts, and the latest news.
b)News:
Recent News.
c) Charts:
Six different chart types - intra-day, one month, three months, six months, one year and
Interactive.
d) SEC Filings:
The company's reports to the SEC.
e) Profile
A description of the company and fundamental information about its stock.
f) Historical:
The open, high, low and closing prices, change and volume of any given stock in the past six
years.

57
Bid:
Highest price at which someone currently offers to buy the stock.
Bid Size:
Number of shares, in hundreds, of the offer at the current Bid.
Change:
The difference between the price of the Last trade and the stock's previous Close price.
% Change:
The percent difference between the price of the Last trade and the stock's previous Close
price.
Close:
The last trade price on the previous trading day.
High:
Highest trade price of the stock during the current trade date.
Last:
Most recent trade price of the stock during the current trade day.
Low:
Lowest trade price of the stock during the current trade day.
Open:
The opening price for the stock on the current trade date.
Tick:
Located to the right of the symbol. Indicates whether the current Bid is higher or lower than
the previous Bid.
Current Bid is higher:
Tick will show an arrow pointing up.
Current Bid is lower:
Tick will show an arrow pointing down.
Current Bid is same:
Tick will show "UC" (unchanged).
Volume:
Total number of shares of the stock traded during the current trade date

58
Close:
The last trade price on the previous trading day.
High:
Highest trade price of the stock during the current trade date.
Last:
Most recent trade price of the stock during the current trade day.
Low:
Lowest trade price of the stock during the current trade day.
Open:
The opening price for the stock on the current trade date.
Tick:
Located to the right of the symbol. Indicates whether the current Bid is higher or lower than
the previous Bid.
Current Bid is higher:
Tick will show an arrow pointing up.
Current Bid is lower:
Tick will show an arrow pointing down.
Current Bid is same:
Tick will show "UC" (unchanged).
Volume: Total number of shares of the stock traded during the current trade date

59
ACCOUNT SCREEN
To View Account Information
1. Click the Accounts tab to see your account information.
To Switch to another Account
2. Click the Accounts tab to open the Account screen.
3. Click Change Account button.
4. Select the new account number.

ORDER SCREEN
To View an Order You Placed
1. Click the Orders tab. The system will show all intra-day (same day)
1. Trades and their current status, which including pending, canceled, filled.
To View Detailed Log for a Specific Order
1. Open the Order screen by following the above steps.
2. Click order sequence number in the UOI field.
3. Click TRANSACTIONS button.

1. A detailed order log will be displayed in a pop-out window.

2. Click OK to close the window.

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To Cancel an Open Order
1.Open the Order screen by following the above steps.
2.To cancel one open order, select it and click Cancel.

3.To cancel all open orders, click Cancel All.

To Export Order Records to an Excel File

1. In the Order screen, click Import to Excel at the bottom.
2. Choose the location on your computer where you want to save the file and click Save.
BASKET TRADING
You can fill your basket with orders in advance, and place them later with just one click.
To Set Up Your Basket
1. Click the Basket tab to open the Basket window.
2. Select a basket from the drop-down menu at left.
3. To re-name the basket, click Rename Cart, type a new name into the pop-up
window, and click OK.

61
To Enter Orders Directly into the Basket
1. Click the Basket tab to open the Basket window.
2. Select a basket from the drop-down menu at left.
3. Click New Row at left to add stocks to the basket. OK.
4. Double click the empty field under Action and select your action:
Buy, Sell or Short
5. Double click on the empty field below Qty until it changes to written mode. Enter
the number of shares you would like to trade.
6. Double click on the empty field under Symbol until it changes to written mode.
Enter the stock symbol.
7. Double click on the empty field under Price. Enter a price for a limit order, or
select Mkt for a market order.
8. Double click on the empty field under Account. Choose the account number
from the drop-down menu.
To Save an Order to a Basket from the Order Entry Screen
You can save an order to a basket from the order entry screen and send the order to market
later.
1. In the Order screen, enter all the required information about the order.
2. Click the shopping cart icon.
3. From the drop-down menu, select the basket in which you want to save the
order. Click OK to save, or Cancel to not save the order into the basket.

62
Remove an Order from the Basket
1. Click the Basket tab to see the Basket screen, and select one of
the baskets from the drop-down menu.
2. Select the order you want to remove.
3. Click Remove at right.
To Get Quotes for Stocks in the Basket
1. Click the Basket tab to see the Basket screen, and select one of
the baskets from the drop-down menu.
2. Select the order for which you would like to see a quote.
To Execute an Order in the Basket
1. Click the Basket tab to see the Basket screen, and select one of
the baskets from the drop-down menu.
2. To execute all orders listed in the basket, click Execute AH.
3. To execute only one order, select the order and then click Execute.
When you Execute trade(s) in the Basket, the Basket Order(s) will still display in the basket
until you remove the order(s).

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KEYS USED FOR TRADING
 Fl - BUY
 F2 - SELL
 F3 - PENDING ORDERS (BUYING & SELLING)
 F6 - MARKET DEBTS (COMPANY ENQUIRY)
 F7 - ARBITRAGE ORDERS
 F8 - HOW MANY TRADING HAS BEEN DONE
 SHIFT+F8 - NET POSITION OF THE COMPANY'S SHARES
 CTRL+F8 - SETTLEMENT OF NET POSITION FOR EXPOSURE
 SHIFT+F9 - NEWS
 F ll - ADDING A NEW COMPANY IN TO THE N/W
 F12 - TEMPORARY LOCKING OF WINDOWS

64
STOCK MARKET

Company :MAHINDRA & MAHINDRA LTD. 500520

Period: 14-Dec-2018 to 18-Jan-2019
Table No:- 4.1 All Prices in
No. of No. of
Date Open High Low Close WAP Total Turnover
Shares Trades
14/12/18 1,248.55 1,295.90 1,229.00 1,287.00 1,255.48 55,320 3,728 6,94,53,132
15/12/18 1,290.00 1,304.00 1,280.05 1,289.05 1,292.57 35,800 2,362 4,62,74,112
16/12/18 1,259.00 1,265.00 1,210.80 1,218.90 1,226.22 2,55,714 13,289 31,35,60,609
17/12/18 1,212.00 1,253.00 1,196.30 1,246.90 1,215.97 5,18,515 8,511 63,04,99,221
18/12/18 1,238.10 1,258.20 1,235.60 1,244.30 1,246.58 64,089 3,395 7,98,91,795
21/12/18 1,245.10 1,284.15 1,241.80 1,277.15 1,271.30 81,176 3,546 10,31,98,831
22/12/18 1,278.90 1,278.90 1,241.65 1,258.50 1,262.01 45,394 1,775 5,72,87,880
23/12/18 1,260.10 1,270.70 1,249.00 1,252.85 1,257.06 39,206 1,697 4,92,84,181
24/12/18 1,257.05 1,270.55 1,254.45 1,257.70 1,260.48 26,545 1,199 3,34,59,343
28/12/18 1,261.10 1,267.25 1,244.00 1,246.80 1,252.23 39,240 1,782 4,91,37,574
29/12/18 1,253.70 1,270.00 1,251.05 1,265.00 1,262.67 28,979 1,525 3,65,90,984
30/12/18 1,265.00 1,274.00 1,258.00 1,262.30 1,265.93 39,991 1,686 5,06,25,781
31/12/18 1,262.00 1,277.55 1,256.60 1,271.55 1,265.68 46,012 2,299 5,82,36,506
1/01/19 1,265.00 1,278.00 1,256.35 1,263.45 1,271.44 36,146 1,527 4,59,57,382
4/01/19 1,263.45 1,263.45 1,241.55 1,244.20 1,248.61 37,977 1,650 4,74,18,589
5/01/19 1,247.00 1,270.35 1,238.60 1,248.05 1,253.46 71,582 2,806 8,97,25,044
6/01/19 1,254.00 1,254.00 1,218.10 1,223.70 1,235.72 52,194 2,441 6,44,97,419
7/01/19 1,215.00 1,221.00 1,170.00 1,193.60 1,190.55 1,25,618 5,298 14,95,54,639
8/01/19 1,194.05 1,207.85 1,191.10 1,196.70 1,199.38 36,048 1,978 4,32,35,151
11/01/19 1,197.00 1,197.00 1,154.60 1,163.60 1,170.23 31,778 2,110 3,71,87,479
12/01/19 1,165.00 1,190.00 1,152.00 1,182.15 1,175.74 37,137 2,144 4,36,63,282
13/01/19 1,195.00 1,214.00 1,176.60 1,205.40 1,199.54 69,277 3,566 8,31,00,868
14/01/19 1,190.00 1,198.35 1,169.55 1,187.95 1,185.04 39,797 2,233 4,71,61,000

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15/01/19 1,200.00 1,200.00 1,171.00 1,176.55 1,184.02 38,029 2,189 4,50,27,105
18/01/19 1,178.55 1,186.00 1,157.00 1,167.00 1,170.49 29,406 1,763 3,44,19,352

Fig No:- 5.1 MAHINDRA & MAHINDRA LTD.

INTERPRETATION:
On open value has risen from 1248.55 to 1287.00 than compare to higher value
of EPS 1170.49. Then coming to lower price from 1178.55 to 1167.00. Wholly the
conclusion is 1278.51 rises.
The comings to the volume on the same dates or days volumes are increased.
Because on this session MAHINDRA & MAHINDRA LTD value is raised i.e. percentage
of 10.24%.

Company :CIPLA LTD. 500087

Period: 14-Dec-2018 to 18-Jan-2019
Table No:- 4.2 All Prices in
Date Open High Low Close WAP Total Turnover

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 No. of No. of
Shares Trades
14/12/18 639.00 643.50 632.00 639.20 638.04 50,485 1,956 3,22,11,353
15/12/18 635.00 640.80 635.00 637.65 638.71 32,914 1,331 2,10,22,588
16/12/18 641.00 644.00 636.95 638.30 639.76 44,123 1,847 2,82,28,248
17/12/18 638.00 644.50 637.30 643.10 641.72 79,367 2,726 5,09,31,085
18/12/18 643.10 648.75 640.15 642.15 644.51 40,180 2,012 2,58,96,420
21/12/18 643.15 649.00 640.80 643.10 645.10 59,227 1,620 3,82,07,509
22/12/18 643.10 648.30 641.45 644.20 644.78 57,685 1,281 3,71,94,274
23/12/18 645.00 649.00 645.00 647.35 647.00 29,959 1,183 1,93,83,611
24/12/18 648.00 654.50 645.20 648.25 649.97 44,548 1,461 2,89,54,926
28/12/18 649.50 657.20 647.00 655.15 653.30 89,861 3,626 5,87,06,385
29/12/18 656.70 660.00 652.45 653.15 655.44 30,465 1,407 1,99,67,963
30/12/18 653.95 657.05 650.25 652.85 653.73 42,532 1,393 2,78,04,575
31/12/18 652.85 654.90 648.00 649.50 651.07 67,382 2,672 4,38,70,064
1/01/19 651.00 658.00 649.00 654.70 654.44 29,250 978 1,91,42,272
4/01/19 654.70 654.70 638.40 645.55 645.60 69,956 2,385 4,51,63,394
5/01/19 646.05 649.95 638.25 641.15 643.08 63,759 2,307 4,10,02,318
6/01/19 641.00 657.60 638.00 652.40 649.54 73,697 2,202 4,78,68,915
7/01/19 650.00 650.00 630.40 639.15 642.40 73,410 2,306 4,71,58,507
8/01/19 637.80 645.00 614.35 622.45 627.16 1,61,578 6,879 10,13,34,575
11/01/19 620.00 620.00 604.55 610.25 609.02 1,04,974 3,945 6,39,31,159
12/01/19 609.80 618.00 605.75 611.65 611.61 67,242 2,400 4,11,26,104
13/01/19 614.90 616.00 597.00 608.70 608.19 93,778 3,449 5,70,34,537
14/01/19 605.00 616.00 597.05 613.90 607.58 85,215 3,066 5,17,74,553
15/01/19 614.00 616.80 602.20 607.40 610.79 68,078 2,666 4,15,81,687
18/01/19 607.00 607.00 586.10 590.85 595.97 86,285 2,957 5,14,22,858

Fig No:- 5.2 CIPLA LTD.

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 INTERPRETATION:
On open value has risen from 639.00 to 639.23. Then compare to higher value of
EPS 595.97. Then coming to lower price from 607.00 to 590.85. Wholly the conclusion is
632.89 raised.
Then coming to the volume on the same dates or days volumes are increased.
Because totally this session CIPLA LTD. EPS value is increased i.e. percentage of 2.57%.

Company :BHARAT HEAVY ELECTRICALS LTD. 500103

Period: 14-Dec-2018 to 18-Jan-2019
Table No:-4.3 All Prices in
No. of No. of
Date Open High Low Close WAP Total Turnover
Shares Trades
14/12/18 166.00 169.00 164.25 167.05 167.40 2,66,781 2,858 4,46,58,077
15/12/18 167.00 167.90 164.25 166.10 165.64 2,44,644 2,761 4,05,21,833

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16/12/18 167.00 170.10 167.00 168.05 168.77 2,77,083 3,372 4,67,62,896
17/12/18 169.20 170.10 165.55 168.90 167.83 3,91,578 3,739 6,57,18,257
18/12/18 169.00 169.00 165.50 166.85 167.21 2,51,109 3,665 4,19,87,902
21/12/18 166.10 168.40 166.05 167.15 167.36 1,55,963 2,279 2,61,01,950
22/12/18 168.50 168.65 165.30 166.15 167.23 2,82,314 2,548 4,72,10,128
23/12/18 167.00 172.90 167.00 172.10 171.19 5,25,932 5,571 9,00,32,125
24/12/18 173.50 174.60 171.55 172.50 172.95 5,38,363 3,643 9,31,08,320
28/12/18 174.00 174.30 171.25 171.65 172.64 2,29,088 2,497 3,95,50,809
29/12/18 173.30 173.30 166.45 168.65 168.92 4,05,649 4,114 6,85,21,063
30/12/18 169.25 170.90 168.50 169.50 169.88 2,66,837 3,087 4,53,29,553
31/12/18 170.00 170.25 167.45 169.25 168.88 2,33,092 2,130 3,93,65,369
1/01/19 169.00 172.25 168.40 171.00 170.85 3,07,638 2,879 5,25,58,655
4/01/19 170.90 170.95 164.00 165.10 167.30 4,56,534 4,034 7,63,78,683
5/01/19 165.15 168.05 164.30 166.45 166.28 2,94,282 3,420 4,89,32,919
6/01/19 167.00 175.00 164.80 165.40 166.86 42,74,783 4,863 71,32,79,951
7/01/19 164.50 164.50 153.00 153.85 157.07 8,48,439 9,043 13,32,67,804
8/01/19 157.00 157.00 152.30 153.70 154.36 4,85,388 5,013 7,49,26,767
11/01/19 153.00 153.00 148.30 149.75 149.85 4,19,505 4,988 6,28,64,005
12/01/19 150.00 153.40 149.35 150.50 151.19 4,16,805 4,339 6,30,17,538
13/01/19 152.00 153.25 143.05 147.95 147.75 5,35,730 5,273 7,91,53,749
14/01/19 146.00 146.80 142.65 143.80 144.35 3,72,347 4,220 5,37,48,252
15/01/19 143.80 145.00 135.50 136.50 140.21 5,71,407 6,832 8,01,16,838
18/01/19 136.00 148.00 131.90 142.35 141.85 10,91,305 10,569 15,47,96,532

Fig No:- 5.3 BHARAT HEAVY ELECTRICALS LTD.

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 INTERPRETATION:
On open value has decreased from 166.00 to 167.50 than compare to higher
value of EPS 430.92. Then coming to lower price from 136.00 to 142.35. Wholly the
conclusion is 154.68 rises.
The comings to the volume on the same dates or days volumes are increased.
Because on this session BHARAT HEAVY ELECTRICALS LTD value is raised i.e.
percentage of 1.62 %.

Company :MARUTI SUZUKI INDIA LTD. 532500

Period: 14-Dec-2018 to 18-Jan-2019
Table No:-4.4 All Prices in
No. of No. of
Date Open High Low Close WAP Total Turnover
Shares Trades
14/12/18 4,510.00 4,580.00 4,482.00 4,569.80 4,528.09 70,147 4,568 31,76,31,797
15/12/18 4,595.00 4,636.00 4,562.30 4,620.60 4,596.26 32,883 4,402 15,11,38,884

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16/12/18 4,650.00 4,654.00 4,603.00 4,618.95 4,623.96 34,332 4,051 15,87,49,782
17/12/18 4,640.00 4,678.00 4,574.05 4,666.00 4,616.31 48,577 4,636 22,42,46,596
18/12/18 4,678.00 4,701.00 4,611.00 4,620.25 4,657.10 50,317 6,030 23,43,31,115
21/12/18 4,602.00 4,656.20 4,602.00 4,639.60 4,637.90 22,585 2,751 10,47,46,940
22/12/18 4,635.00 4,644.00 4,535.05 4,617.75 4,616.43 18,446 1,955 8,51,54,685
23/12/18 4,617.10 4,653.00 4,617.10 4,635.20 4,634.94 19,997 2,327 9,26,84,851
24/12/18 4,644.00 4,644.00 4,588.75 4,594.40 4,603.48 19,885 1,893 9,15,40,249
28/12/18 4,610.00 4,640.00 4,590.00 4,635.35 4,622.11 13,598 1,817 6,28,51,410
29/12/18 4,629.40 4,655.90 4,610.10 4,638.60 4,632.28 15,004 2,495 6,95,02,797
30/12/18 4,639.00 4,642.00 4,578.05 4,588.45 4,610.61 18,181 2,116 8,38,25,582
31/12/18 4,587.00 4,641.65 4,567.15 4,615.35 4,593.65 72,811 3,456 33,44,68,391
1/01/19 4,630.50 4,665.00 4,606.55 4,635.05 4,637.06 45,948 3,156 21,30,63,532
4/01/19 4,640.00 4,656.30 4,575.00 4,583.40 4,605.97 19,220 2,703 8,85,26,662
5/01/19 4,581.00 4,600.00 4,556.55 4,568.35 4,575.05 21,855 3,023 9,99,87,631
6/01/19 4,598.00 4,600.00 4,464.10 4,479.55 4,524.33 29,414 3,395 13,30,78,742
7/01/19 4,464.00 4,464.00 4,252.00 4,266.55 4,301.70 82,747 7,946 35,59,53,177
8/01/19 4,281.00 4,325.80 4,195.80 4,215.65 4,236.66 81,035 9,299 34,33,17,570
11/01/19 4,210.00 4,298.00 4,145.00 4,279.45 4,250.48 60,237 6,577 25,60,36,348
12/01/19 4,299.00 4,322.00 4,261.50 4,269.65 4,289.24 25,846 3,355 11,08,59,621
13/01/19 4,292.00 4,309.95 4,223.05 4,293.40 4,275.41 38,036 3,787 16,26,19,399
14/01/19 4,250.00 4,284.85 4,214.60 4,249.65 4,245.26 34,194 3,691 14,51,62,474
15/01/19 4,266.00 4,338.00 4,251.10 4,273.30 4,295.78 30,669 4,191 13,17,47,424
18/01/19 4,287.55 4,290.00 4,174.40 4,227.60 4,224.52 29,996 4,384 12,67,18,845

Fig No:- 5.4 MARUTI SUZUKI INDIA LTD.

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INTERPRETATION:
On open value has increased from 4510.00 to 4569.80. Then compare to higher
value of EPS 4295.78. Then coming to lower price from 4287.55 to4227.60. Wholly the
conclusion is 4351.47 increased.
Then coming to the volume on the same dates or days volumes are increased.
Because totally this session. MARUTI SUZUKI INDIA LTD. EPS value is increased i.e.
percentage of 7.88%.

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 CHAPTER - VI
FINDINGS
SUGGESTIONS
&
CONCLUSION

FINDINGS
 The volume on the same dates or days volumes are increased. Because totally this session.
MARUTI SUZUKI INDIA LTD. EPS value is increased i.e. percentage of 7.88%.
 The volume on the same dates or days volumes are increased. Because on this session
BHARAT HEAVY ELECTRICALS LTD value is raised i.e. percentage of 1.62 %.

73
 The volume on the same dates or days volumes are increased. Because totally this session
CIPLA LTD. EPS value is increased i.e. percentage of 2.57%.
 The volume on the same dates or days volumes are increased. Because on this session
MAHINDRA & MAHINDRA LTD value is raised i.e. percentage of 10.24%.

SUGGESTIONS
 There must be prohibition on disposal of promoters share holding, and also restrictions
and the expansion without prior approval of the financial institutions for declaration of
higher amount/ rate.

74
 The availability of derivative products in eluding index futures, index options, individual
stock futures and individual stock options re-enforces the overall attractiveness of this
market to foreign and domestic investors.
 Volume of paper work is small but it is very complicated to maintain data in system so
tries to reduce that by regular audit and updating data.
 Most of the DPs do not have the necessary infrastructure to handle the high work load of
transactions leading to may error by DPs, so by giving full infrastructure information to
every DO can avoid this problem.
 The pool account doesn’t know the true owner of the share and hence dividends are paid
to the broker instead of owners by this the broker can do any manipulation or any fraud
with the owner, for this the owner can loose his dividend.
 If the shares are fake/forged which delivery by the broker the share holder can loose that
shares an have to receive another lot of issued shares from the broker in 21 days, this
system stands abused.

CONCLUSION
 The depository systems has reduced the lag in delivery and settlement of securities but
also supported the cause of providing more liquidity to the security holder, the need for
setting up of a depository paper less trading.

75
 Through online trading system and settlement became inevitable and unavoidable for the
smooth and the efficient functioning of the capital market.
 This system has proved its worthiness by increasing in the speed of transactions within
T+3 days which are earlier T+5 days.
 It has been fairly long since derivative trading started off on the Indian Indexes.
 The introduction of derivative trading was hailed by the punters in the capital markets but
has not really brought about a wave so as to speak.
 There are several factors, which impede the growth of the derivative markets in India of
these factors the absence of clear guidelines on tax-related issues and the high cost of
transactions are the most prominent.
 Now it is T+2days started from 1 April 2003.

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 BIBLIOGRAPHY

BOOKS:
1. Investment management -V.K.Bhalla
2. Investment management -Preethi Singh
3. Security Analysis And Portfolio Management -V.A.Avadhani
4. Marketing of Financial Services-V.A.Avadhani
5. Indian Financial System -M.Y.Khan
6. Security Analysis And Portfolio Management -Punithavathy Pandian

WEBSITES:
 https://www.karvy.com/
 https://www.bseindia.com/
 https://www.sebi.gov.in/about-sebi.html
 https://www.moneycontrol.com/
 https://economictimes.indiatimes.com/
 https://www.nseindia.com/

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