ASIAN SCHOOL OF MANAGEMENT, PUNE

A STUDY ON

“INVESTOR PREFERENCE FOR ONLINE TRADING”
AT

SHAREKHAN Ltd. IN PUNE

A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF

POST GRADUATE DIPLOMA IN MANAGEMENT
2009-2011

SUBMITTED BY:

SANDEEP RAI

IN GUIDENCE OF

Dr. RAJAN DHAMDERE

ASIAN SCHOOL OF MANAGEMENT, PUNE
Address: Landmark Center, Opp. City Pride, Pune-Satara Road, Pune-411009 Contact No.: 020-24501000/1/2/3…../30 Website- www.asianschoolofmanagement.com

CERTIFICATE
This is certify that Mr. Sandeep Rai student of Asian School Of Management, Pune has successfully completed the project work in partial fulfillment of requirement for the completion of PGDM course of prescribed by ASOM. This report is the record of authentic work carried out by him during period from 15 Dec.2009 to 4 Feb. 2010 in which he has worked under my guidance. He has completed his project work on the following topic: A STUDY OF “INVESTOR PREFERENCE FOR ONLINE TRADING” at SHAREKHAN Ltd. IN PUNE

Date: Place: Pune

Dr. Rajan Dhamdere (Internal Guide)

Mrs. Madhavi Khare (Director)

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www.sharekhan.com

TO WHOMESOEVER IT MAY CONCERN

This is to certify that Mr. Sandeep Rai a student of Asian School of Management, Pune has successfully completed his winter internship programme from 15 Dec. 2009 to 4 Feb. 2010. He has successfully completed her project. The topic of her project is “Investor Preference For Online Trading” During the project work we found Mr. Sandeep Rai to be hardworking and sincere. We wish him all the best for his future.

Regards

Ranjeet Kumar Sales Manager Sharekhan Ltd. Pune

Regd office: A-206, Phoenix House, Phoenix Mills Compound, Senapati Bapat Marg, Lower Parel, Mumbai – 400013. Tel: 91-22-67482000. Fax: 91-22-2498 2626. Sharekhan Ltd.: BSE Cash-INB011073351; F&O-INF011073351; CD-INE011073351;NSE-INB/INF231073330; CD-INE231073330; MCX Stock Exchange: CD-INE261073330 DP: NSDL-IN-DP-NSDL-233-2003; CDSL-IN-DP-CDSL-271-2004; PMC INP000000662; Mutual 3|Page Fund: ARN 20669. For any complaints email at igc@sharekhan.com ; Investing in equities involves risk. Please carefully read the risk disclosure document as prescribed by SEBI & relevant exchanges.

SHAREKHAN LIMITED

BRANCH: G-15, Ashoka Mall, Ground Floor, Opp. Hotel Sun N Sand, Bundgarden Road, Pune- 411001. Tel.: 020-6600 4020

DECLARATION

I, Sandeep Rai here by state that the report entitled A STUDY OF “INVESTOR PREFERENCE FOR ONLINE TRADING” at SHAREKHAN Ltd. in Pune is a genuine and bonafide work prepared by me under the able guidance of Mr. Ranjeet Kumar, Sales Manager of SHAREKHAN Ltd. The empirical findings in this report are based on the data collected by myself and the matters present in this report are not copied from any sources. This project report is submitted to Asian School of Management, Pune in partial fulfillment for the award of PGDM.

Date: Place: Pune

Sandeep Rai

4|Page

There are dozens of hands buttressed me all through the programme it does not go without thanking all of those who constantly keep me on the move. I would like to express my sincere thanks and gratitude to External guide Mr. I express my gratitude to our Director Mrs. Ranjeet Kumar.ACKNOWLEDGEMENT The report what. Internal Guide for guiding me to work on this project. Madhavi Khare who has supported me to complete this project My sincere thanks to Dr. Rajan Dhamdere. I would like to give heartily thanks to Asian School of Management. Sales Manager who have give a good support to grad the external exposure and to complete a project in SHAREKHAN Ltd. I give my sincere thanks to all my faculties and friends who have gathered me the wisdom of knowledge. This work is dedicated to my parents who have supported me throughout my study. Pune who have give us an opportunity to learn something practical apart from book by including the in-plant training in our PGDM programme. I have presented is not the made outcome of my labor alone. Sandeep Rai 5|Page .

1 FINANCIAL SYSTEM.TABLE OF CONTENT PAGE No.2 SCOPE OF THE STUDY 31 31 30 5 5.1 OVERALL ORGANISATIONAL STRUCTURE FUNCTIONS OF DEPARTMENTS MARKETING ACCOUNTS HR & ADMINISTRATION 33 33 34 34 35 32 6 STOCK EXCHANGES 6.3 THE NATIONAL STOCK EXCHANGE 37 39 40 36 6|Page .4 OBJECTIVE 2 COMPANY PROFILE 2.3 TWO IN ONE ACCOUNT 2.5 PROCESS OF ONLINE TRADING 12 13 13 14 14 10 3 FINANCIAL SYSTEM OVERVIEW 3.3 SCOPE OF THE PROJECT 1.1 COMPANY 1.5 PRODUCTS DEALT IN SECONDARY MARKET 3.4 ONLINE TRADING ACCOUNT 2.2 PROJECT TITLE 1. 8 9 9 9 9 CH.2 5.4 PRIMARY AND SECONDARY MARKET 3.1 SERVICES PROVIDED BY SHAREKHAN 2.3 5.6 ACCOUNT OPENING 16 16 20 22 24 26 15 4 OBJECTIVES & SCOPE 4.3 COMPONENT OF CAPITAL MARKET 3.2 THE BOMBAY STOCK EXCHANGE 6.1 FUNCTIONS OF STOCK EXCHANGES 6.AN OVERVIEW 3.5 ORGANISATION STRUCTURE 5. 1 TOPIC EXECUTIVE SUMMARY 1.2 FINANCIAL MARKETS 3.2 PRODUCT PROFILE 2. No.4 5.1 PRIMARY OBJECTIVES 4.

7 8 THEORETICAL PERSPECTIVE SWOT ANALYSIS 8. NSE OR BSE 10.6 WHICH IS BETTER.4 DO YOU NEED TRANNING 10.3 IS ONLINE TRADING EASY? 10.1 DEFINES THE PROBLEM 9.4 THREATS 45 45 45 45 41 44 9 RESEARCH METHODOLOGY 9.5 SAMPLING 9.4 RESEARCH APPROACH 9.14 INFLUENCING FACTOR 10.6 SAMPLING PLAN 9.2 WEAKNES 8.13 PREFERENCE FOR INVERTMENT 10.7 AWARENESS OF E-BROKING 10.12 TRADITIONAL-INFLUENCING FACTORS 10.7 STATEMENT OF PROBLEM 47 47 47 49 49 49 50 46 1 0 DATA ANALYSIS 10.3 DATA SOURCE 8.3 OPPORTUNITY 8.1 INVESTMENT OPTION 10.11 PEFERRED SYSTEMS OF SHARE TRADING 10.5 SOURCES OF ADVERTISEMENT 10.15 FUTURE PLANNING FOR ONLINE TRADING 10.16 REASONS FOR NOT ENTERING IN TO E-BROKING 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 51 1 1 1 2 1 3 FINDING AND OBSERVATION LIMITATIONS SUGGESTIONS AND RECOMMENDATIONS 68 70 72 7|Page .2 DEVELOPING RESEARCH PLAN 9.8 KNOWLEDGE THROUGH COMPANY WEBSITE 10.9 VISIT BY COMPANY REPRESENTIVE 10.1 STRENGTH 8.10 INTEREST IN E-BROKING 10.2 BRAND AWARENESS 10.

1 4 1 5 CONCLUSION ANNEXURE 74 76 8|Page .

1. SECONDARY OBJECTIVE  To know and understand the thinking and perception of different people about D-mat account and online trading account and share market  To see the interest of people for SHAREKHAN LTD. I have targeted students.Secondary Data PRIMARY DATA :.Primary data is the data which is actually collected from the field it is a fresh data which is not used by anybody.1 COMPANY: . For conducting the research the data was collected through1-Primary Data 2. 1.SHAREKHAN LTD.  To find potential customer of SHAREKHAN LTD. who involved in trading activities and generate the business for SHAREKHAN LTD.  To create the image about SHAREKHAN financial product.CHAPTER: 1 EXECUTIVE SUMMARY 1.4 OBJECTIVE The objective behind conducting this project is as followed:PRIMARY OBJECTIVE  To find out the people who are willing to be an agent for SHAREKHAN LTD.2 PROJECT TITLE:“INVESTORS PREFERENCE FOR ONLINE TRADING”. businessmen.3 SCOPE OF THE PROJECT The research has been conducted within the geographical area of PUNE city. Primary data was collected using the following techniques# Questionnaire Method # Direct Interview Method # Observation Method 9|Page .  Promotion of the product. 1. and other people.

News Paper and Websites. This data has been published in magazine.It is the second hand data it used by the other person before we use it. SECONDARY DATA :. 10 | P a g e . where face to face formal interview was taken. Further direct interview method. Lastly observation method was used continuously with the questionnaire method.The main tool used was the questionnaire method.

equities. continues to remain the largest shareholder. Sharekhan's lineage and relationship with SSKI Group provide it a unique position to understand and leverage the growth of the financial services sector.) through its pan India presence of 200 branches and 310 franchises across 170 cities.Sharekhan.www. Sharekhan's management team is one of the strongest in the sector and has positioned Sharekhan to take advantage of the growing consumer demand for financial services products in India through investments in research. Known for its jargon-free. SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong research-driven focus.CHAPTER: 2 COMPANY PROFILE Sharekhan is one of the top retail brokerage houses in India with a strong online trading platform. online trading. etc. The Company's online trading and investment site .com . investor friendly language and high quality research. Commodities. Derivatives. derivatives. It is the retail broking arm of the Mumbai-based SSKI Group. Depository services. pan-Indian branch network and an outstanding technology platform. margin funding. Further. Sharekhan was established by Morakhia family -in 1999-2000 and Morakhia family. Sharekhan offers its customers a wide range of equity related services including trade execution on BSE. the SSKI group ventured into institutional broking and corporate finance over a decade ago.was launched on Feb 8. The company provides equity based products (research. Company team members are widely respected for 11 | P a g e . 2000. etc. Presently SSKI is one of the leading players in institutional broking and corporate finance activities. Sharekhan is one of the leading retail broking brands in the country. The site gives access to superior content and transaction facility to retail customers across the country. Investment advice. With a legacy of more than 80 years in the stock markets. NSE. depository. the content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information.

content or for that matter the online trading facility. a veteran equities solutions company with over 8 decades of experience in the Indian stock markets.their commitment to transactions and their specialized knowledge in their areas of strength.making it among the most significant players raising equity in the Indian market. 2.Sharekhan Limited. The common thread of empowerment is what Sharekhan's all about! "Sharekhan has always believed in collaborating with like-minded Corporates into forming strategic associations for mutual benefit relationships" says Jaideep Arora. Director .1 SERVICES PROVIDED BY SHAREKHAN 12 | P a g e . SSKI. If you experience Company profile. one that helps you make informed decisions and simplifies investing in stocks. you'll find a common thread. The team has completed over US$5 billion worth of deals in the last 5 years .

It is used for keeping share in our account . over a period of time.1 account to its customer i.2. holding and trading in Demat form has the following benefits : 13 | P a g e .2 PRODUCT PROFILE SHAREKHAN is one of the leading Depository Participants (DP) in the country with over 8 Lac demat accounts.3 TWO IN ONE ACCOUNT:SHAREKHA is providing 2-in. SHAREKHAN Demat services offers you a secure and convenient way to keep track of your securities and investments. without the hassle of handling physical documents that get mutilated or lost in transit. the share transfer to your D-mat account And amount price of that share you purchased deducted from your saving account. 2.e. After placing order to BSE or NSE for share . FEATURES & BENEFITS As opposed to the earlier form of dealing in physical certificates with delays in transaction. D-mat account is used for holding share for particular period . SHAREKHAN is Depository participants both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). 1) Demat Account 2) Online Trading Account D-MAT ACCOUNT :It is called as demateralised account.

Client gives the order through online trading account to purchase the share of particular company. The order goes to BSE or NSE.Settlement of Securities traded on the exchanges as well as off market transactions. No concept of Market Lots. Dividend Mandate. registration of power of attorney. Signature.700 to the customer . 2. Pledging of Securities.299. can be effected across companies held in demat form by a single instruction to the Depository Participant (DP). Change of address. No stamp duty on transfer of securities held in demat form. Order is executed and share of particular company company comes to client D-MAT account where he hold the share until price of share rise. Auto Credit of Public Issue refunds to the bank account. • • It is provided for Rs. Auto credit of Rights / Bonus / Public Issues / Dividend credit through ECS.4 ONLINE TRADING ACCOUNT:Online trading account is used for purchasing the share or to sale the share of particular company.5 PROCESS OF ONLINE TRADING For online trading SHAREKHAN provides ID and password to client so that client can easily do login on sharekhan . transmission etc. Electronic credit in public issue. Client has to give the cheque on name of SHAREKHAN LTD. Normal plan is also available at Rs. 14 | P a g e . Shorter settlements thereby enhancing liquidity.com for online trading. ONLINE TRADING CONCEPT ONLINE TRADING ACCOUNT 2 IN 1 ACCOUNT D-MAT ACCOUNT 2.

Share is sell through his D-mat account And money get deposited in his saving account. INTRA DAY TRADING In intra day trading the share is purchase and sale on the same day. If the prices of share fall down then he will be in loss.As the share come to client D-mat account the cost amount is deducted from client saving account. The share market starts at 9. if the client purchases the share and prices of share rise then he can sell his share and he will get the profit.m.30 p. If client purchases the share and he does not sell it at market closing time then the share automatically sell i. called square off. and close at 3. 15 | P a g e . When client want to sell his share he give the order through online trading account.e.50 a.m. If price of share is high then client will get profit and price of share fall down the customer will be in loss at time of square off.

3.2 FINANCIAL MARKETS: A financial market can be defined as the market in which financial assets are created or transferred. financial instruments and services that facilitate flow of funds from areas of surplus funds to the areas of deficit.CHAPTER: 3 FINANCIAL SYSTEM OVERVIEW 3. organized and unorganized financial markets. By making funds available. The Primary markets deal in new financial claims and securities and hence are known as new issue markets. existing or outstanding. savers and others who are interlinked by the laws. Financial markets are also classified as Money and Capital Markets. Financial system is a composition of various institutions. Financial markets consist of Primary and Secondary Markets. Money markets deals with 16 | P a g e . law practices. brokers. lenders. agents. borrowers. the financial system helps the growth of modern economics and the increase in the standard of living among the citizens.AN OVERVIEW: The financial system of any country consists of specialized and non-specialized financial institutions. etc. Financial Market performs an important function of mobilization of savings and channeling them into the most productive uses. The secondary market deals in securities already issued. regulations. dealers. analysts. markets.1 FINANCIAL SYSTEM. Financial assets represents represent a claim to the payments of a sum of money sometime in the future and/or periodic payment in the form of interest or dividend. The participants in the financial markets are financial institutions. money managers. contracts and communication networks.

Certificate of deposits. A certain degree of flexibility in the regulatory framework exists and there are constant endeavors for 17 | P a g e . e. One more important function of this market is to channel savings into short term productive investments like working capital. Money market aids banking. corporate debentures and government bonds). On the basis of the type of the financial claim. financial markets are classified as Cash or Spot markets and Forward or Future markets. operates as a medium of integration between sub markets.transactions in short-term instruments (with period of maturity one year or less. By the timing of delivery. Treasury bills.g. e. Money Market Mutual Funds. Money market is a collection of market for the instruments like Call money. etc.g. treasury bills). financial markets are classified as Debt and Equity markets. The classification of Financial markets can be summarized as follows: o Money Market o Debt Market o Forex Market o Capital Market. MONEY MARKETS: Money markets can be defined as a market for short term money and financial assets that are near substitutes for money (any financial assets that can be quickly converted into money with minimum transaction cost). while capital market deals with transactions in long-term instruments (with period of maturity above one year. promotes maintaining of minimum reserve in the form of cash and liquidity and controls the interest rates. Commercial papers.

and which does not act as money outside its boundaries.introducing a new instruments or innovating dealing techniques. The money market has two components . Life Insurance Corporation. Forex market is the largest financial market in the world having a daily turn over of couple of trillion dollars. other primary dealers. The unorganized sector continues to provide finance for trade as well as personal consumption. Unit Trust of India. commercial banks and mutual funds. Foreign exchange or Forex market is the one where a country’s currency is traded for another. General Insurance Corporation. The inability of the poor to meet the ‘creditworthiness’ requirements of the banking sector make them take recourse to the institutions that still remain outside the regulatory framework of banking. It consists of indigenous bankers and moneylenders. access to its accommodation. there is no clear demarcation between shortterm and long-term finance and even between the purposes of finance. cost (interest rates). in crores of rupees. ORGANIZED MONEY MARKET: Indian financial system consists of money market and capital market. It is a wholesale market and the volume of funds or financial assets traded are very large i. The rate at which one currency is converted to another is known as the rate of exchange. The organized market is dominated by commercial banks. traders (who make a market in the foreign currency).the organized and the unorganized. In the unorganized market. exporters (who want to convert their foreign currency receipts into domestic). FOREIGN EXCHANGE MARKET: Every sovereign country in the world has a currency. The key participants in the Forex market are importers (who need foreign currency to pay off their imports). Normally. speculators (who tries to profit from exchange rate movements) 18 | P a g e . Discount and Finance House of India. availability of credit and other monetary management tools. The core of the money market is the inter-bank call money market whereby short-term money borrowing/lending is effected to manage temporary liquidity mismatches. generally less than one year. which is a legal tender in its territory. monetary assets of short-term nature. But this market is shrinking.. there is still an active unorganized market. are dealt in this market. UN-ORGANIZED MONEY MARKET: Despite rapid expansion of the organized money market through a large network of banking institutions that have extended their reach even to the rural areas. The other major participants are the Reserve Bank of India.e. Securities Trading Corporation of India Ltd. foreign exchange brokers (who bring together buyers and sellers). The Reserve Bank of India occupies a strategic position of managing market liquidity through open market operations of government securities.

Capital markets provide the resources needed by medium and large-scale industries for investment purposes unlike money markets that provide the resources for working capital needs. Business undertakings can participate in the Forex market only to the extent that they need cover for the exchange exposure arising from a merchant transaction or a foreign currency borrowing and cannot resort to speculative transaction. the key participants in the Forex markets are RBI. CAPITAL MARKET The function of the financial market is to facilitate the transfer of funds from surplus sectors (lenders) to deficit sectors (borrowers). A financial market consists of investors or buyers of securities. then there will be no need for a foreign exchange market.and portfolio managers who buy and sell foreign currency. The secondary market that operates through the medium of stock exchanges is that segment of the capital market where securities already issued are traded. The secondary market or stock exchange is a market for trading and 19 | P a g e . Offer for subscription to securities is made to investing community. If every country had the same currency. Stock market and Government bond markets are example of capital markets. borrowers or sellers of securities. The primary markets create long-term instruments through which corporate entities borrow and the secondary market provides liquidity and marketability to these instruments. households have investible funds or savings. which they lend to borrowers in the corporate and public sectors whose requirement of funds far exceeds their savings. Formal trading rules. banks and business undertakings. While money markets deal in short-term claims (with a period of maturity 1 year or less) capital market deals in long-term claims (with a period of maturity more than 1 year). One reason justified for the existence of the Forex market is that each nation has decided to keep their sovereign right to have control on their own currency. Financial market does not refer to a physical location. Speculative transactions account for more than 95% of the turnover on the Forex markets. Normally. In India. intermediaries and regulatory bodies. Companies can raise capital in the primary market through the issue of shares and debentures for which prior approval of The SEBI is required. The primary market in which public issue of securities is made through a prospectus is a retail market and there is no physical location. relationships and communication networks for originating and trading financial securities link the participants in the market. Capital market consists of primary and secondary markets.

and individual investors. It also provides liquidity to the initial buyers in the primary market to re-offer the securities to any interested buyer at any price. the new issue market channelises saving of individuals and others into investors. shares or bonds that have never been previously issued. Issuing companies and the investors respectively represents the two facets of this market. are offered. It may have a physical location like a stock exchange or a trading floor. Since 1995. i. 3. diversification. Registrars and Transfer Agents. foreign institutional investors (FIIs). CAPITAL MARKET PARTICIPANTS: There are several major players in the primary market. New Issue Market 2. The secondary market consists of 22 stock exchanges.e. financial institutions. NEW ISSUE MARKET The new issue market represents the primary market where new securities. if mutually accepted. Stock Market 1. Financial Institutions 3.settlement of securities that have already been issued. trading in securities is screen-based and Internet-based trading has also made an appearance in India. financial institutions. The prime function of new issue market is to facilitate the transfer of funds from willing investors to the entrepreneurs setting up new corporate enterprise or going for expansion.e. which help. Custodians and Depositories are capital market intermediaries that provide important infrastructure services for both primary and secondary markets. The investors holding securities sell securities through registered brokers/sub-brokers of the stock exchange. Also there is participation of intermediaries. The secondary market provides a trading place for the securities already issued. the helping corporate enterprise in securing their funds. mutual funds. foreign institutional investors (FIIs) and individual investors.3 COMPONENTS OF CAPITAL MARKET: Following are the three main components of capital market: 1. there are the stock exchanges. Both the new companies and the existing ones can raise capital on the new issue market..These include the merchant bankers. Besides. in 20 | P a g e . growth or modernization. the mutual funds. i. stock brokers (who are members of the stock exchanges). to be bought and sold. Investors who are desirous of buying securities purchase securities through registered broker/sub-broker of the stock exchange. In the secondary market. supply and demand.

I.I) 3.) 4. (S. The Industrial Credit and Investment Corporation of India.I. underwriters. (R. (M.) 3. Nationalized Commercial Banks.I. The Refinance Corporation of India. These agencies include financial institution.D. 1. (N.C. (N. character and sentiment of prospective buyers. Merchant Banking Institutions.C.F. Such organizations provide medium and long-term loans on easy installments to big business house. Successful issue of new securities is a highly specialized activity and requires both experience and skill. State Financial Development Corporation.I. the sentiment in the stock market influence the activity of new issue market.C. State Industrial Development Corporations. merchant bankers.) 9.D.T.) 8. Following are the main special financial institutions that are most active constituents of the Indian Capital Market. 2.I. It is a secondary market. Need for such institution was more in underdeveloped countries. In stock market the participants are Stock Exchanges. (I. There are number of methods of marketing new issue of securities. (L. Life Insurance Corporation of India. (U. Such institutions help in promoting new companies during economic depressions. (N.C. Industrial Development Bank of India.I.I. The investors want liquidity of their 21 | P a g e .) 6.C. The industrial Finance Corporation of India.) 5. Brokers and the investors. (S. Unit Trust of India. National Small Industries Corporations. etc. It must be noted that although the functions and organization of new issue market are quiet different from that of the secondary (stock) market. The need for establishing financial institutions was felt in many countries immediately after the Second World War to reestablish war-shattered economies.selling.B. It is a place where securities which have been issued the past are traded.B. STOCK MARKET Capital Market also includes Stock market.B.C. transferring.S.D.) 11.Is. FINANCIAL INSTITUTIONS Specialized Financial Institutions are the most active constituent of the Indian Capital Market.Cs.) 12. (I. And the choice of method selection depends upon number.Cs.) 7. brokers. (I. National Industrial Development Corporations.) 10.I) 2.C. underwriting etc.F.C.F.

Raja wants to Sell the shares of Zodiac JRD. 3. as distinguished from the Secondary Market. The debt markets in advanced are significantly larger and deeper than equity markets. the trend is just the opposite. The development of debt market in India has not been as remarkable as in the equity market. limited players and lack of trading earlier. The debt market in India is divided into two categories: o Government securities market consisting of Central Government and State Government securities. The securities. Characterized by regulated interest rates. securities are bought by way of public issue directly from the company. In Secondary market share are traded between two investors. Off Market In On market trading is done via stock exchanges. So there should be a place where securities should be purchased and sold. PRIMARY MARKET Market for new issues of securities.This is part of the financial market where 22 | P a g e . For example: Raja and Gandhi are neighbors. But one can also trade Off market without the interference of stock exchange may be through stock broker or not. where the buyer and seller don’t know each other.investments. DEBT MARKET: Traditionally debt instruments are known for generating a predetermined income for a given period of time. However the debt markets in India have undergone a considerable change in the last few years. Stock exchange provides such a place where securities of different companies can be purchased and sold via stock market. But in India. the markets have become more integrated and less regulated. where previously issued securities are bought and sold. PSU bonds and Corporate bonds/debentures. Similarly there are others who want to invest in new securities. other than in cases of default. should be easily sold when they need cash. On Market 2. Hence they are also known as fixed income instruments. In primary markets. o Bond market consisting of FI bond. A market is primary if the proceeds of sales go to the issuer of the securities sold. One can trade in stock market two ways: 1. which they hold. which he holds and Gandhi is ready to buy them at that price they can enter into contract off market.4 PRIMARY AND SECONDARY MARKET: There are two ways for investors to get shares from the primary and secondary markets.

This paves way for listing and trading of the issuer’s securities. The proposal is analyzed in terms of the nature of security. Investors purchasing stock in IPO’s generally must be prepared to accept very large risks for the possibility of large gains. The issuer company makes detailed disclosures as per the DIP guidelines in its offer document and offers it for subscription. investment bankers act as the channel of distribution for the new issues. This is carried out with the help of the lead manager and broker to the issue. Origination deals with the origin of the view issue. it is Trading in 23 | P a g e .enterprises issue their new shares and bonds. under writing and distribution. THE FUNCTION OF PRIMARY MARKET: The main service functions of the primary market are origination. Stocks available for the first time are offered through new issue market.The first time the company is traded on the stock exchange. In the new issuing houses. Sometimes. Most trading is done in the secondary market. It is characterized by being the only moment when the enterprise receives money in exchange for selling its financial assets. IPO is new shares Offered to the public in the Primary Market . IPO is a company's first sale of stock to the public. To explain further. SECONDARY MARKET The market where securities are traded after they are initially offered in the primary market. Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. Existing share Holders get very liberal bonus issues as a reward for their faith in risking money when the project was new. IPO – INITIAL PUBLIC OFFERING Public issues can be classified into Initial Public offerings and further public offerings. just before the IPO is launched. but not always. These issues may be of new type or the security used in the past. those of young. In a public offering. Securities offered in an IPO are often. the issuer makes an offer for new investors to enter its shareholding family. timing of the issue and floatation method of issue. small companies seeking outside equity capital and a public market for their stock. A prospectus is issued to read about its risk before investing. the size of issue. Distribution refers to the sale of the securities to the investors. The issue may be a new company or an existing company. Underwriting contract makes the shares predictable and removes the elements of uncertainty in the subscription. They take responsibility of selling the stocks to the public.

The various kinds of equity shares are as follows – EQUITY SHARES: An equity share. 24 | P a g e . is often referred to as the aftermarket. An organized market for used securities. Examples are the New York Stock Exchange (NYSE). commonly referred to as ordinary share also represents the form of fractional ownership in which a shareholder.National Stock Exchange NSE. their claims rank below the claims of the company’s creditors. Once a newly issued stock is listed on a stock exchange. The market that exists in a new security just after the new issue. undertakes the maximum entrepreneurial risk associated with a business venture. governmental guaranteed loans etc.5 PRODUCTS DEALT IN SECONDARY MARKET EQUITY: The ownership interest in a company of holders of its common and preferred stock. A company may issue such shares with differential rights as to voting. residential mortgage loans. But in the event of liquidation. Alternatively. secondary market can refer to the market for any kind of used goods.The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering. as a fractional owner. They also enjoy priority over the equity shareholders in payment of surplus. BONUS SHARES: Shares issued by the companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years. PREFERRED STOCK/ PREFERENCE SHARES: Owners of these kind of shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity share. over-the-counter markets. payment of dividend.previously issued financial instruments. bondholders / debenture holders. bond markets. RIGHTS ISSUE/ RIGHTS SHARES: The issue of new securities to existing shareholders at a ratio to those already held. 3. The holders of such shares are members of the company and have voting rights. as market makers provide bids and offers in the new stock. etc. Bombay Stock Exchange (BSE). investors and speculators can easily trade on the exchange.

evidencing the purchase or acquisition by the holder thereof. A bond investor lends money to the issuer and in exchange. the issuer promises to repay the loan amount on a specified maturity date. DEBENTURES: Bonds issued by a company bearing a fixed rate of interest usually payable half yearly on specific dates and principal amount repayable on particular date on redemption of the debentures. title or interest in the financial asset involved in securitisation. The issuer usually pays the bond holder periodic interest payments over the life of the loan. issued by a securitisation company or reconstruction company to any qualified institutional buyer pursuant to a scheme. if not paid. of an undivided right. in lieu of the Central Government's market borrowing programme. These securities have a fixed coupon that is paid on specific dates on half-yearly basis. SECURITY RECEIPTS: Security receipt means a receipt or other security. these shares will be converted into equity capital of the company. BOND: A negotiable certificate evidencing indebtedness.CUMULATIVE PREFERENCE Shares. municipality or government agency. from short dated (less than one year) to long dated (upto twenty years). It is normally unsecured. CUMULATIVE CONVERTIBLE PREFERENCE SHARES: A type of preference shares where the dividend payable on the same accumulates. GOVERNMENT SECURITIES (G-Secs): These are sovereign (credit risk-free) coupon bearing instruments which are issued by the Reserve Bank of India on behalf of Government of India. Participation right is linked with the quantum of dividend paid on the equity shares over and above a particular specified level. PARTICIPATING PREFERENCE SHARE: The right of certain preference shareholders to participate in profits after a specified fixed dividend contracted for is paid. Debentures are normally secured/ charged against the asset of the company in favour of debenture holder. The various types of Bonds are as follows- 25 | P a g e . After a specified date. A type of preference shares on which dividend accumulates if remains unpaid. These securities are available in wide range of maturity dates. All arrears of preference dividend have to be paid out before paying dividend on equity shares. A debt security is generally issued by a company.

• All investors have to submit their proof of identity and proof of address alongwith the prescribed account opening form. It is usually issued by companies with a high credit standing in the form of a promissory note redeemable at par to the holder on maturity and therefore. I. Through this unique three in one trading every customer opening an e-invest account gets a bank saving account. deposit (refundable) will be levied towards services which can be adjusted towards billing charges.ZERO COUPON BOND: Bond issued at a discount and repaid at a face value. doesn’t require any guarantee. No periodic interest is paid. 1. you can submit a copy of Passport. COMMERCIAL PAPER: A short term promise to repay a fixed amount that is placed on the market either directly or through a specialized intermediary. either through sharekhan branches or through Sharekhan Franchisee center. Voters Id Card. Driving Licence or PAN card with photograph. 3. at the maturity of the bond CONVERTIBLE BOND: A bond giving the investor the option to convert the bond into equity at a fixed conversion price. The buyer of these bonds receives only one payment. Commercial paper is a money market instrument issued normally for a tenure of 90 days. Proof of Identity : Your signature and photograph must be authenticated by an existing demat account holder with the same DP or by a bank manager. 26 | P a g e . There is no fee for opening DP accounts with SharekhanI. The e-invest account is an account which allows a customer electronic trading on the exchange. The difference between the issue price and redemption price represents the return to the holder. • You can open a Depository Participant (DP) Account. However. Alternatively. TREASURY BILLS: Short-term (up to 91 days) bearer discount security issued by the Government as a means of financing its cash requirements.6 ACCOUNT OPENING To avail the services of depository one requires opening an account with any of the depository participants.

The Issuer/ R&T agent then prints the certificates. if the shares are in the name of X first and Y second and the account is in the name of Y first and X second. Proof of Address : You can submit a copy of Passport. Driving Licence. Voters Id Card. The dematerialisation process can be initiated only by X first and Y second and for this a depository account will have to be opened in the name of X first and Y second. PAN card with photograph. REMATERIALISATION: Rematerialisation is the process by which a client can get his electronic holdings converted into physical certificates. III Passport-size photograph. DEMATERIALISATION: Dematerialisation is the process by which a client can get physical certificates converted into electronic balances maintained in its account with the DP. Further. then these shares cannot be dematerialized in this account. The DP enters the request in its system which blocks the client's holdings to that extent automatically. 27 | P a g e .2. Structure of holding in the securities should match with the account structure of the depositoryaccount If the shares are in the name of X and Y it cannot be dematerialised in to the account of either X or Y alone. You must remember to take original documents to the DP for verification. 3. The client has to submit the rematerialisation request to the DP with whom he has an account. FEATURES: • Holdings in only those securities that are admitted for dematerialisation by NSDL can be dematerialised. The DP releases the request to NSDL and sends the request form to the Issuer/ R&T agent. ration card or bank passbook as proof of address. • • Only those holdings that are registered in the name of the account holder can be dematerialised. II.

The securities sent for rematerialisation cannot be traded. the flow of securities happens as follow: THE FLOW OF SECURITIES (MARKET TRADE) CAN BE SHOWN This settlement of the trade happens on the investor giving his DP an instruction to debit his account and credit the brokers account for the said quantity of shares and the broker in turn giving his DP the instruction of delivering the sharesto the clearing corporation. TRADES: When an investor sells in a market trade i. If the investor has not availed of automatic credit facility. then teh broker provides instructions to his DP to transfer stocks into the investor account. FEATURES: • • • A client can rematerialise his dematerialised holdings at any point of time. then he should provide a receipt instruction to his DP. the flow of securities essentially depends upon the parties to the trade providing the relevant instruction to the respective DPs at the appropriate time. Thus. Thus. PLEDGE: 28 | P a g e . In case of a market purchase. the securities move from the seller to the buyer on the execution of respective instructions by the respective DPs. Thereafter. the client's blocked balances are debited.e.despatches the same to the client and simultaneously electronically confirms the acceptance of the request to NSDL. the securites come into the brokers account from the clearing corporation on payout. In case of an off-market trade. The rematerialisation process is completed within 30 days. on the respective DPs executing the instructions the transfer of securities takes place. through a broker.

NSDL facilitates distribution of corporate benefits. the blocked securities will be released to "Free Balance" of the account holder. rights. or you can make further investments. based on confirmations received from both the pledger and the pledgee.Pledge enables you to obtain loans against your dematerialised shares. As and when the pledge is to be removed. These may be either monetary benefits like dividend. CORPORATE BENEFITS: Corporate benefits are benefits given by a company to its investors. A highly simplified procedure may be availed of for pledging of securities in the electronic mode. You can pledge your shares and the money can be utilised to finance your personal needs. The pledged securities continue to be reflected in the DP account of the pledger but the concerned securities are "blocked" and can not be used for any transactions. So you get liquidity without having to sell your shares. interest or non-monetary benefits like bonus. etc. CLIENT REGISTRATION PROCESS 29 | P a g e .

FORM SUBMISSIO N SCRUTINY SEGREGAT E OPEN A/C OR REJECT VALID BANK FORM INTIMATES CPU OPEN A/C OR REJECT DP 30 | P a g e .

If we see the growth of the sensex .NSE has started it in 1992. Still share-trading is not very popular among middle class people and they think it as risky investment.CHAPTER: 4 OBJECTIVES & SCOPE Online share trading is not a new concept for India too.It has increased more than 15 times in 16 31 | P a g e .

how much are they satisfied etc. To know what options are used by customer in online trading. To know what motivates prospective customer to think about going for online share trading. In 1992 it was at just 1000 and today it is about15000. It was at 21000 in January 2008. 32 | P a g e . To know competitors of Sharekhan in the market.years. To find out customer’s satisfaction level. To get information regarding the current market share of the company. During research it was my aim to find out different aspects of online trading and people’s interest about it . Which companies are popular among them.1 PRIMARY OBJECTIVES:    To find out potential customer by creating awareness among the people for opening Demat a/c To study the awareness and interest of customers for online trading services. 4.2 SCOPE OF THE STUDY:      To find out customer’s overall perception about the system. how much they know about these things. 4.? Meanwhile I was also looking for prospect Following are the main objectives of the research: customers also for Sharekhan Ltd.

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PURCHA OPERATIONS SUPPORT FUCTION 34 | P a g e .2 FUNCTIONS OF DEPARTMENTS REGIONAL HEAD QUATERS REGIONAL BRANCHQUATERS OPERATIONS DIVISION SUPPORT FUNCTION BRANCHES ISO CELL BROKING FPO RIS DP ACCOUNTS SYSTEM HRD ADMN.1 OVERALL ORGANISATIONAL STRUCTURE HEAD OFFICE REGIONAL HEAD QUARTERS REGIONAL HEAD QUARTERS REGIONAL HEAD QUARTERS 5.CHAPTER: 5 ORGANISATION STRUCTURE 5.

4 ACCOUNTS HEAD OF THE BRANCH ACCOUNTANT MANAGER DOCUMENTRY ASSISTANT ACCOUNT MANAGER 35 | P a g e .3 MARKETING HEAD OF THE BRANCH MARKETING MANAGER SALES EXE. ASSISTANT TRAINEE 5.5.

5 HR & ADMINISTRATION HEAD OF THE BRANCH HRM HR DEVOLPMENT PAY ROLE RECURTMENT SALES EXE. TRAINEES 36 | P a g e .5.

CHAPTER: 6 STOCK EXCHANGES 6.1 FUNCTIONS OF STOCK EXCHANGES 37 | P a g e .

There is no scope of manipulating the transactions. 3. SAFETY IN DEALINGS: The dealings in stock exchanges are governed by well defined rules and regulations of Securities contract act. The new concerns get themselves registered so that the shares they issue can be further traded at exchanges. 7. CONTINUOUS MARKET FOR SECURITIES: The securities once listed continue to be traded irrespective of the fact that owners go on changing. Exchanges provide regular market for trading in securities. It provides a ready market for buyers and sellers of securities. If exchanges were not there many persons would have fear of blocking their savings in securities. Hence stock exchanges play an important role in mopping up surplus funds of investors. annual reports and other reports to ensure maximum publicity of corporations operations and working. ENSURES LIQUIDITY OF CAPITAL: The stock exchange provides a place where shares and stock are converted into cash. HELPFUL IN RAISING NEW CAPITAL: The new concerns raise capital for first time and the existing units increase their capital for further expansion and diversification purposes. 2. CLEARING HOUSE FOR BUSINESS INFORMATION: The companies listing securities with exchange have to provide financial statements. 6. Every company desires of listing its securities will apply to the exchange authorities. LISTING OF SECURITIES: Only listed securities can be traded in stock exchanges. EVALUATION OF SECURITIES: The investors can evaluate the worth of their shares from price quoted at different stock exchanges for those securities. Every transaction is done according to the procedure laid done and there is no fear in minds of trading parties. The securities are quoted under free atmosphere of demand and supply and prices are set on the basis of free market. But listing is allowed after critical examination of capital structure. The economic and other information provided at stock exchanges help companies to make their policies. Hence provide security to a limit but it does not guarantee the financial stability. management and prospectus of company. 1956. 38 | P a g e . 8. MOBILIZING SURPLUS SAVINGS: Through stock exchanges the investors are given a safe platform to invest their savings.The importance of stock exchanges will be clear from the following functions performed by stock exchanges: 1. so the investors should make analysis before investing. 5. 4.

The price is determined where the bargain is stuck. In stock exchange there is active bidding and a two way auction takes place as a result there is a free competition in the stock market.: The stock exchanges are also organized market for government securities. 10. 6. Stock exchanges also perform other functions that are useful for tax purposes and hence protect the investor’s interest by eliminating dishonest and irregular practices in the brokerage of trade.2 THE BOMBAY STOCK EXCHANGE 39 | P a g e . FAIR PRICE DETERMINATION: The prices in the stock market are determined by the interplay of forces of supply and demand. However there is no any provision for a separate counter for government securities but these are traded through brokers dealing in these securities.9. PLATFORM FOR PUBLIC DEPTS.

The committees constituted by the Board are broad-based. The Exchange is professionally managed under the overall direction of the Board of Directors. 1956. the trading volumes on the Exchange showed robust growth. The Board is inclusive and is designed to benefit from the participation of market intermediaries. the Board formulates larger policy issues and exercises over-all control. 6. 2005 notified by the Securities and Exchange Board of India (SEBI). Earlier an Association of Persons (AOP). it was established as "The Native Share & Stock Brokers Association" in 1875. In terms of organization structure. The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals. SENSEX. the Exchange is now a demutualised and corporatised entity incorporated under the provisions of the Companies Act.3 THE NATIONAL STOCK EXCHANGE 40 | P a g e . the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act. pursuant to the BSE (Corporatisation and Demutualization) Scheme. is tracked worldwide. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index. Popularly known as "BSE". 1956. During the year 2004-2005. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. With demutualization. representatives of Trading Members and the Managing Director of the Exchange. The Board comprises eminent professionals.Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage.

and Meeting the current international standards of securities markets. dematerialization and electronic transfer of securities. providing a fair. The market today uses state-ofart information technology to provide an efficient and transparent trading. debt instruments and hybrids. • • • 41 | P a g e . screen based trading. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure. MISSION NSE's mission is setting the agenda for change in the securities markets in India. enabling shorter settlement cycles and book entry settlements systems. securities lending and borrowing. practices and procedures. market of debt and derivative instruments and intensive use of information technology. It has set up facilities that serve as a model for the securities industry in terms of systems. safety and market integrity. fully automated screen-based trading system with national reach. clearing and settlement mechanism. compression of settlement cycles.The National Stock Exchange (NSE) is India's leading stock exchange covering various cities and towns across the country. ensuring equal access to investors all over the country through an appropriate communication network. NSE was set up by leading institutions to provide a modern. fine-tuned risk management systems. professionalization of trading members. The NSE was set-up with the main objectives of: • • establishing a nation-wide trading facility for equities. speed & efficiency. The Exchange has brought about unparalleled transparency. market practices and trading volumes. efficient and transparent securities market to investors using electronic trading systems. demutualization of stock exchange governance. and has witnessed several innovations in products & services viz. emergence of clearing corporations to assume counterparty risks.

CHAPTER: 7 42 | P a g e .

SAVING A/c . required amount of money is used for trading from saving a/c. LIMIT ORDER. 3. But by using a limit order you also protect yourself from buying the stock at too high prices. 2. buying and selling takes place. you need to place a limit order rather than a market order. DP can offer depository services only it gets proper registration from SEBI. 4. 43 | P a g e . 5. DEPOSITORY – A depository is an organization which holds securities of investor in electronic form at request at request of the investor through a registered repository participant. In online share trading all three accounts are interlinked. TRADING A/c – This is a a/c through which actual trading i. Remember that your limit order may never be executed because the market price may quickly surpass your limit before your order can be filled.A price higher or lower than you wanted.e.THEORETICAL PERSPECTIVE Bringing together under one site all the relevant factors to enable an informed investment is what online trading is all about. A buy limit order can only be executed the limit price or higher. DP – A depository participant is an agent of the depository through which it interfaces with the investor. It also provides services related to transactions in securities.This is a regular bank a/c which is linked to D Mat a/c and trading a/c. When you place a market. There are several terms which are commonly used for online share trading : 1. Dematerialization is the process by which physical certificates of an investor are converted to an equivalent number of securities form and credited into the investor’s account with his/her DP. DEMAT ACCOUNT SAVING ACCOUNT TRADING ACCOUNT 6. A limit order is an order to avoid buying or selling a stock at order to buy or sell a security at a specific price. you can’t control the price at which your order will be filled. DEMAT A/c – This is a account where dematerialization takes place.

MARKET ORDER.Market order is an order to buy or sell stock at the current market price. 9.Investors have several options when it comes to placing an order to buy or sell the securities.Investors typically uses a stop order when buying stock to limit a loss or protect a profit on short sell. whether you place an order directly with your broker or trade online.7. If the price of the stock rises and you buy it back later at higher price. know as stop price.A stop order is an order to buy to sell a stock once the price of the stock reaches the specified price. Investors who sell short believe the price of the stock will fall. 10. For example. your broker will enter your order as a market order. you will incur a loss. Buy stop order. When the specified price is reached. 8. The order is entered at a stop price that is always above the current price. Or you can place an order that is good for one day only or for an extended period. A stop order to sell is always placed below the current market price. 44 | P a g e . your stop order becomes a market order. ORDER.A short sell is generally the sale of a stock you do not own. Sell Stop order. STOP ORDER. Unless you specify otherwise. If the price of the stock drops. you can buy the stock at lower price and make the profit. SHORT SELL. you can instruct your broker to buy or sell at a specified price.A sell stop order helps the investors to avoid further losses or to protect a profit that exists if the stock price continues to drop.

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3OPPORTUNITY 1-Sharekhan having goog customer relation strategy so that it create good opportunity to create goodwill and capture the market. 8.2 WEAKNES 1) INSUFFICIENT ADVERTISEMENT POLICY 2) NO ACCESS TO THE RURAL MARKET 8.1 STRENGTH: 1) EMPLOYE MOTIVATION POLICY 2) RESEARCH TEAM 3) GOOD INFRASTRUCTURE 4) HELTHY FINACIAL MARKET 5) USER FRIENDLY WEB SITE 8. 2-Growing initial public offer create opportunity to capture the new market 3.CHAPTER: 8 SWOT ANALYSIS 8.4 THREATS 1) MARKET UNCERTAINTY 2) STIFF COMPETITION 3) NEW ENTRY IN TO MARKET 4) GOVERNMENT POLICY 46 | P a g e .Positive outlook of people towards financial product becouse most of investor more about financial instrument and working strategy of stock brokers.

CHAPTER: 9 RESEARCH METHODOLOGY 47 | P a g e .

OBSERVATION METHOD:In the observation method. 9.1 DEFINES THE PROBLEM AND RESEARCH OBJECTIVES The objective of the research conducted was to study of consumer’s preference for online share trading. research instrument. sampling plan and contact methods. 9. My research process is as follows. Survey Method. I have used survey method and use the questionnaire methods. Designing a research plan calls for taking decision on data sources research. it requires the observer.2 DEVELOPING RESEARCH PLAN The second stage of marketing research calls for developing a most efficient plan for gathering needed information. The observer will keenly observe the person at the time of the interview & record his behavior accurately. analysis & reporting of Data which is relevant to specific market situation . primary data & secondary data. approach. collection.e. Secondary objective of the survey was to know the customer’s satisfaction level. 9. My other objectives were to find out the overall perception about the system and what motivates the people to think about going for online share trading. • • Observational Method.3 DATA SOURCE There are two types of methods used in data collection i.Marketing research is a systematic design. There are mainly two methods for the collection of the primary data which are given below. A) PRIMARY DATA Those data which are collected at first hand by the researcher especially for the purpose of the study .The data is collected directly from the person in sample population. In the collection of the primary data.are known as primary Data . In this project research the collection of data is directly interviewing customer. it is also one of The 48 | P a g e .

B) SECONDARY DATA 49 | P a g e . It is mostly used when information to be collected is limited. Also the time limit for the questionnaire is specified in the mail. MAIL QUESTIONNAIRE:In the mail questioner the interviewer will mail the questionnaire to the respondents and inform them about the purpose of the survey. This method is used. when the information to be collected is limited. • • • Personal interview. The interviewer will ask question in face to face direction to the respondents or group of respondents. SURVEY METHOD:It is most popular method for the collection of necessary data from the respondents. the interviewer will make call to respondents. PERSONAL INTERVIEW:In the personal interview. TELEPHONIC SURVEY:In the telephonic interview. This method is used when the area to be covered is large and the survey has to be conducted in the specific limit. I have used the personal interview to know customer awareness towards online share trading. Telephonic survey. Mail questionnaires. I have visited respondents personally. inform the respondents about the purpose of the call and then he will ask the related questions to the respondents. the interviewer will personally meet the respondent and will take is interview.important method for the collection of data but it requires good & experienced observer who can observer The behavior of the respondent properly and record it with great accuracy. Different types of the survey are given below. In my survey. I have used survey method for the collection of the necessary data.

9. Different web sites like www.e.5 SAMPLING Research instruments can be of two types firstly questionnaire methods and secondly mechanical instruments. Probable Samplings 2. Experimental research. CONTACT METHODS: The method of contacts can be four types 1. In this project the approach used was survey approach because the main objective of our survey was to study of the market potential and have an idea about the customer awareness.sharekhan.4 RESEARCH APPROACH Out of 4 ways of research approaches i. company profile are collected from the internet. Internet : 50 : Pune City 9. Observation research. 9. These data has been collected from company dealer like Dealer profile. Mail Questionnaire 2.com and GOOGLE Search engine help in collecting the detailed information. In this survey the research instrument was questionnaire method.Any data which had been gathered earlier for other purposes are secondary data in hand of marketing research. Focus Group research 4.6 SAMPLING PLAN:Sampling size Field Work area Random sampling SAMPLING PROCEDURE:The sampling Procedure can be of two types: 1. 9. 2. internet and Web -sites. Non-probable sampling In this survey expert Judgments sampling method can be used. Survey Research 3.7 STATEMENT OF PROBLEM 50 | P a g e . Telephonic Interview. Personal Interview 3. 4. industrial profile. 1. The secondary data are collected from the magazines.

brand positioning is must which gives idea about the market scenario. Market potential is nothing but the finding out potential customers for the product of organization. It is very important to properly define the problem. Online share trading –share trading is nothing but the buying and selling shares as per the market position. 51 | P a g e . If the problem is properly defined then it will provide proper guide line for the further study. which gives maximum profitability. So the problem is to know the market potential of online share trading and the popularity of online share trading among the people. Here the main problem is to study on the INVESTOR PREFERENCES FOR ONLINE TRADING (IN PUNE). Broker-broker is the person who brings buyer and seller together. consumer behavior. It is also to know which options are preferred by customers. To find out market potential study of competitors. And it is truly said that a properly defined problem is a half solve. The properly defined problem will direct the surveyor on the proper path. this is done through broker.Problem definition is one of the most important parts of the study.

CHAPTER: 10 DATA ANALYSIS 52 | P a g e .

2 BRAND AWARENESS 53 | P a g e .1 INVESTMENT OPTIONS Investment Option Bank Insurance Post office Mutual-fund Total Person 2 20 10 18 50 Percent % 4.0 64.0 44.0 36. are interested in investing in Insurance or Mutual Fund.0 20.0 INTERPRETATION This shows that most of people.0 36.0 40.10.0 100. who are observed. 10.0 100. 20% people are also interested in investing in Post office.0 Valid Percent % 4.0 Cumulative Percent % 4.0 20.0 100.0 40.

Companies ICICI Sharekhan Kotak Securities HDFC Securities Total No. of Respondents 22 16 07 05 50 Percentage % 45% 31% 14% 10% 100% BRAND AWARENESS 45% 40% 35% 30% Percentag e of Peopl e 25% 20% 15% 10% 5% 0% ICICI Sharekhan Kotak HDFC Securities Securities INTERPRETATION 54 | P a g e .

0 100.0 Valid Percent % 82.0 55 | P a g e .0 18. followed by Kotak and HDFC with 14% and 10% respectively.ICICI was at the top of the mind of 45% people out of 100% and Sharekhan securing second position with 31%. 10.0 100.0 100.0 18.0 Cumulative Percent % 82.3 IS ONLINE TRADING EASY? Respondent Percent Ans s % Yes No Total 41 9 50 82.

0 84.0 100.0 100.4 DO YOU NEED TRAINING? An s.0 16.0 84.INTERPRETATION This proves most of people accept that online trading is easy. Yes No Tot al Valid Cumulativ Responde Perce Percent e Percent nts nt % % % 42 8 50 84.0 100.0 56 | P a g e .0 16. This is a plus point for stock trading companies. 10.

of Respondents 32 10 08 50 Percentage % 64% 20% 16% 100% SOURCES OF ADVERTISEMENT 70% 60% 50% Percentage40% Of people 30% 20% 10% 0% News papers & magazines Friends Internet Other media& Other media INTERPRETATION 57 | P a g e . 10.5 SOURCES OF ADVERTISEMENT Sources News papers & magazines Friends Internet & Other media Total No.INTERPRETATION This shows that people need proper training for using online trading although it is easy.

news channel etc.6 WHICH IS BETTER. NSE OR BSE? Opstion NSE BSE Total Respondent Percent Valid s % Percent % 44 6 50 88.0 88.0 12.63% people come to know about online share trading through news paper and magazines whereas 20% people come to know through friends and 17% people come to know through other media like internet. 10.0 NSE INTERPRETATION 58 | P a g e .0 12.0 100.0 Cumulative Percent % 88.0 100.0 100.

10. of Respondents 20 30 50 Percentage % 40% 60% 100% Awareness of e-broking e l p o e p f o e g a t n e c r e p 60% 50% 40% 30% 20% 10% 0% 1 yes No 59 | P a g e .This shows that most people like NSE in comparison of BSE.7 AWARENESS OF E-BROKING Reply Yes No Total No.

10.8 KNOWLEDGE THROUGH COMPANY WEBSITE Reply Yes No Total No.INTERPRETATION 60% people were unfamiliar of the term e-broking and only 40% people aware were with the concept of e-broking. of Respondents 22 28 50 Percentage % 43% 57% 100% KNOWLEDGE THROUGH COMPANY WEBSITE 60% 50% 40% Percentag Of epeople 30% 20% 10% 0% Yes No 60 | P a g e .

INTERPRETATION Out of the total sample size 43% people have visited the website of any e-broking company and 57% people have not visited any website regarding e-broking. of Respondents 12 38 50 Percentage % 24% 76% 100% VISIT BY COMPANY REPRESENTATIVE 80% 70% 60% 50% 40% 30% 20% 10% 0% Yes No Percentage of People INTERPRETATION 61 | P a g e .9 VISIT BY COMPANY REPRESENTATIVE Reply Yes No Total No. 10.

of Respondents 48 02 50 Percentage % 96% 04% 100% INTEREST IN E-BROKING 100% 90% 80% 70% 60% Percentage 50% Of people 40% 30% 20% 10% 0% Yes No INTERPRETATION 62 | P a g e .Only 24% people who are interested in online share trading have been visited by the representatives of the e-broking company and rest of the 73% people have not been visited. 10.BROKING Reply Yes No Total No.10 INTEREST IN E.

Out of the total sample size 97% people found the concept of e-broking interesting and 03% people do not find it interesting. 10.11 PREFERRED SYSTEMS OF SHARE TRADING System Online Traditional Can’t say Total No. of Respondents 26 21 03 50 Percentage % 52% 42% 06% 100% PREFERED SYSTEMS OF SHARE TRADING 6% 42% 52% Online Traditional Can’t say INTERPRETATION 63 | P a g e .

INFLUENCING FACTORS Reason Dependence on broker Lack of computer knowledge Fear of fraudulence Total No.12 TRADITIONAL.INFLUENCING FACTORS 32 % 40 % 28 % Dependence on broker fraudulence Fear of Lack of computer knowledge INTERPRETATION 64 | P a g e .Regarding the preferences towards the different systems of share trading. 10. online share trading emerged as a clear cut winner with 53% people preferring it. of Respondents 20 14 16 50 Percentage % 40% 28% 32% 100% TRADITIONAL. followed by traditional with 41% while 06% people were unable to answer.

0 4.0 Cumulative Percent % 80. 29% people opt for traditional system of share trading because of the lack of computer knowledge and 32% people wants to stick with traditional system due to fear of fraudulence.Companies worth $5 billion or more. 10. 65 | P a g e .0 16.13 PREFERENCE FOR INVESTMENT Option * Largecap ** Midcap *** Smallcap Total Respondents 40 8 2 50 Percent % 80.0 100.0 INTERPRETATION By seeing this we can say that people prefer to invest in largecap companies.0 100. It may be due to less risk.0 96. * Largecap :.0 4.39% people opt for traditional system of share trading because of there dependence on broker.0 Valid Percent % 80.0 16.0 100.

Companies worth $1 billion to $5 billion.** Midcap :. *** Smallcap :. 10.14 INFLUENCING FACTORS Factors Transparency Hassle Free Service Economical Time saving Total No. of Respondents 32 07 06 05 50 Percentage % 64% 14% 12% 10% 100% INFLUENCING FACTORS 10% 12% 14% 64% Transparency Hassle Free Service Economical Time saving INTERPRETATION 66 | P a g e .companies worth $250 million to $1 billion.

10.15 FUTURE PLANNING FOR ONLINE TRADING Reply Yes No Can’t say Total No. of Respondents 26 22 02 50 Percentage % 52% 44% 04% 100% FUTURE PLANNING FOR ONLINE TRADING Can’t say 4% No 44% Yes Percentage of people 52% INTERPRETATION 67 | P a g e . economical with 12% and time saving with 10% respectively.Out of the four fascinating factors of online share trading transparency is at the top as 64% people has voted for it followed by hassle free with 14%.

16 REASONS FOR NOT ENTERING INTO E-BROKING Reasons Relationship with broker Trade rarely Other reasons Total No. of Respondents 27 15 08 50 Percentage % 54% 30% 16% 100% REASONS FOR NOT ENTERING INTO E-BROKING 60% 50% 40% Percentage of People 30% 20% 10% 0% Relationship Trade rarely Other reasons With broker INTERPRETATION 68 | P a g e .Out of the total sample size 53% people are planning to go for online share trading and 43% people do not want to go for it while 4% people have not yet decided. 10.

69 | P a g e . 30% people trade rarely and 15% have some other reasons.55% people do want to do online share trading because they have good relationship with there broker.

People are well aware of various services providers like sharekhan. 41% people rarely want to go for online trading. It may be due to less knowledge of Share market as well as it is considered risky.  90% of the total population agrees that the concept is easy.  ICICI is found to be most popular among all.  Still only 53% people are sure to go for online share trading. economical and time saving features.  People prefer to invest in largecap companies because of less risk.  The representative of at least one service provider has visited 24% people.com.com.  News and magazines are found to be of major source of information.  Business class prefer off line share trading as most of them have good relationship with their broker.  According to most of the people observed NSE is better than BSE. . They showed interest in going for online share trading. they are yet investing in Insurance. Professionals and executive category are found to be in favor of the online share trading.  It is also seen that people think that online trading is convenient and easy to operate but they also need initial guidance and training. 70 | P a g e .  Business class which can be defined as the people who are self employed entrepreneurs are found to be less interested and would like to stick to the traditional system and are much dependent on their broker regarding investments. convenient & interesting. Post office was 3rd favorable option for investing.CHAPTER: 11 FINDINGS AND OBSERVATIONS  It is found that people who were observed. So it must be provided to them so that they can trade comfortably via online. kotakstreet. hdfcsecurities.com.  People have highly voted for transparency feature of the online trading followed by hassle free service.  93% people found to be aware of online trading of securities.  43% people said that they have visited at least one of the websites for the online share trading concept. And mutual funds are also a good option for them.

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CHAPTER: 12 LIMITATIONS
There is no activity without limitations so it had too. The main Limitation has been faced during project research are as follows:-

 The research has been carried on time span of one an half month.  The research is totally based on the personal opinion of the respondents which
may vary depending upon their personal view.

 The research has done along with achieving our target given by company.  People’s response was also not favorable.  Due to instability of market people were afraid of it, so they were less interested in
these things.

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CHAPTER: 13 SUGGESTIONS AND RECOMMENDATIONS
1. Although people have heard about online trading of securities still people have great doubt about its operational feasibility as they are not clear about the concept. Special awareness programs using various media mixes should be carried out to remove fear from the minds of people and make it familiarize. 2. More emphasis should be laid on the convenience that the trading facilities offer by either introducing kiosks in the centre where the clients could have a demonstration for themselves and understand the various features of the product. This could help them determine how conventional mode of trading is. 3. There are large numbers of prospective customers, who trades in small volume or make infrequent transactions or like to hold the stock as a long term investment. The current price structures are not at all suitable for such population. E- Trading companies should look at such class. 4. Awareness campaigns like giving idea about futures and options, derivatives, dividend policies will create interest in online trading. And this helps organization for market positioning as well as mind positioning. 5. Sharekhan.com can go for banking business as it has large customer base. Generally e-trading are not in banking business but this can be done as it will provide convenience. Many times customer faces problem because of lack of coordination between management of e-trading company and bank. 6. 7. Development in public relation management and customer relationship management will lead organization towards strong brand image as well goodwill. Comparative study of customer care and services provide by other companies will help develop business strategies as well business policies. 8. Seminars can be conducted at corporate level so as to increase potential customer base. Corporate people do not go for share trading due to lack of time. This kind of seminar will motivate them and make them aware about e-trading.

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9. Tie-up with banks will facilitate the customer as maximum customers have their

salary accounts in banks and this account can be used for net banking as well share trading.

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During my research I also found that many people want to stick with the traditional system of share trading because of lack of computer knowledge and also many people are dependent of their personal broker. In the research I observed that Sharekhan limited is not effective in the advertisement of its products. For investing in share market every investor needs to have an agreement with a Depository Participants. 76 | P a g e . Sharekhan is very well known among the investors but from the analysis I found that ICICI Direct Securities is one of the major competitors. as most of people find the concept of online share trading very interesting but none of them have been visited by the representative of any company.CHAPTER: 14 CONCLUSION Shares are the best kind of investment available over a long period of time. Depository Participants are the one who provide the services of DEMAT. And also share market is a place where money earns money. During my research I found that there is a large market which is untapped.

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: 5. Address: (a) Male (b)Female 4. What is your monthly income? (In Rs) (a) Below 10000/78 | P a g e . Name: 2. Contact No. Are you employed? (a) Yes (b) No 9.CHAPTER: 15 ANNEXURE QUESTIONNAIRE PERSONAL INFORMATION: 1. Gender: 3. Education (a) Postgraduate (c) 12th (b) Graduate (d) below 12th 8. Are you married? (a) Yes (b) No 7. Age (a) Between 20-22 years (c) Between 25-30years (b) Between 22-25years (d) Above 30 years 6.

If yes.(b) Between 10000-20000/(c) Between 20000-30000/(d) Above 30000/- RESEARCH-QUESTIONS: 10. which company’s DEMAT a/c do you have? (a)Sharekhan (e) ICICI (d)Kotak Securitie (f) HDFC 12. Do you need training for online trading? (a) Yes (b) No 15. Which is the best investment-option for you? (a)Bank (b) Insurance (c)Post office (d) Mutual Funds (e) Others 11. Which is better according you? (a) NSE (b) BSE 17. Are you interested to open a DEMAT a/c. How do you know about Sharekhan? (a) News Paper (c) Internet & Other media (b) friend 16. Which is the best company according to you? (a)Sharekhan (b) ICICI (c)Kotak Securitie (d) HDFC 13. Do you agree that online trading is easy & convenient? (a) Yes (b) No 14. with Sharekhan? (a) Yes (b) No 79 | P a g e .

Have you been visited by company representive? (a)Yes (b) No 20. Are you interested in e-broking? (a) Yes (b) No 21. Do you collect information which is shows on company website? (a) Yes (b) No 19. Which is your preference for investing? (a) Large-cap (c) Small-cap (b) Mid-cap 24. What is reason for not entering in E-Broking? (a) The Relationship with broker (b) Trade rarely (c) Other reason 80 | P a g e . Which is your preference for share trading? (a) Online (b) Traditional (c) Can’t say 22. Which is your traditional influencing factor? (a) Dependent on broker (b) Fear of fraudulence (c) Lack of computer information 23. Do you have future planning for online trading? (a) Yes (b) No (c) Can’t say 26.18. Which is your Influencing factor? (a) Transparency (c) Hassle free service (b) ICICI (d) Time saving 25.

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