A PROJECT REPORT ON

“A STUDY ON THE CUSTOMER PERCEPTION OF ONLINE TRADING”

AT “SHARE KHAN LIMITED” BY S.MAHENDER H.T.NO:-088070181

Project submitted in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION
By

VATHSALYA COLLEGE OF BUSINESS MANAGEMENT (Affiliated to Osmania University) BHONGIR (2007 – 2009)
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CERTIFICATE

This is to certify that the project work entitled A STUDY ON CUSTOMER PERCEPTION ON ONLINE TRADING is the bonafide work done by S.MAHENDER H.T.NO:-088070181 As part of curriculum in the Department of Management Studies VATHSALYA COLLEGE OF BUSINESS MANAGEMENT BHONGIR in partial fulfillment for the award of degree of Master of Business Administration By Osmania University, Hyderabad This work has been carried out under our guidance

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Internal guide

Head, Management Department

Principal

DECLARATION

I hereby declare that this project report entitled “A STUDY ON THE CUSTOMER PERCEPTION OF ONLINE TRADING AT SHARE KHAN LIMITED” is an original project done under the guidance of

---------------------------------------------------& submitted by me ----------------in partial fulfillment of the requirement for the award of “MASTER OF BUSINESS ADMINISTRATION”. The findings and recommendations in this work are based on the information collected by me. This report has not been submitted else where for the award of any other University or Institute or published earlier.

HYDERABAD, Date : (S.MAHENDER)

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ACKNOWLEDGEMEN T

With the deep sense of gratitude, I wish to acknowledge the support and help extended by all the people, in successful completion of this project work. I express my sincere gratitude to --------------- for allowing me to take up this project and enlightened me in doing this project. I express my gratitude to our Principal AS.PRASAD for his consistent support, Head of the Department SATHISH for his encouragement. I would like to express my sincere thanks to my Internal GuideP.SRIKANTH, Co-Guide project coordinator for their immense support during my project report, Last but not the least; I would like to thank all the faculty members & my friends who have been a strong source of inspiration through out the project directly or indirectly.

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Summary & Conclusion 6. Review of Literature 3. Company Profile 4.S. Bibliography 7. Introduction 2.MAHENDER CHAPTERISATION Table of Contents CONTENTS  List of Tables  List of Figures 1.1 Presentation & Analysis 4. Data Analysis & Presentation 4.2 Interpretations 5. Appendices Appendices A: Questionnaire Appendices B: Organizational Structure PAGE NUMBERS 5 .

CHAPTER – 1 ‘INTRODUCTION’ 6 .

Ear. A stimulus is any units of input to any of the census. advertisement and commercials. The minimal difference that can be detected between to similar stimuli is called the differential threshold of J. Mouth. A 19th century German Scientist name Ernst Weber discovered the J. taste and feel.e. but an amount relative to intensity of first stimulus. smell.D between two stimuli wants not an absolute amount.e. The study of perception is largely the study of what we subconsciously add to or subtract from the raw sensory inputs to produce our own private picture of the world. Skin) that receive sensory input their sensory functions are to see. organizes and interprets stimuli in to a meaningful coherent picture of the world”. Nose.D (Just Noticeable Difference). hear. All the functions are called into play either singly or in combination in the evaluation and use of more consumer products.N. brand names. Sensory Receptors are the human organs i. 7 . (Eye.. packages. (sensory output) include products..N. example of stimuli i.PERCEPTION Perception is defined as the “The process by which an individual selects.

Consumer strategies for reducing perceived risk include increase information search. warranties. The concept of perceives risk has important implication for markets.D must be added for the majority of people to perceive a difference between the resulting stimulus and initial stimulus.According to Weber Law an additional level of stimulus equivalent to J. Who can facilitate the acceptance of new products promotional campaigns? THE NATURE OF PERCEPTION Another very important facet of individual behavior in organizations is perception. If every remainder of this chapter we focus on perception and attribution. The CEOs themselves and some supporters generally perceive their compensation as equitable where as others it as excessive. and seeking reassurance in form money back guarantee. pre purchase trail.N. buying a well known brand form reputable retailer. brand loyalty. 8 . buying the most experience brand.

A DEFINITION OF PERCEPTION Perception is the set of processes by which an individual becomes aware of and interprets information about the environment. Moreover. and an activity –is the focal point for perception. or both. We probably would hear to quite conflicting stories. Responses may include over behavior. from spoken words or visual images to movements and forms. A stimulus makes the individual aware of the object then must be interpreted. that we all perceive the same this in the same way. People often assume that reality is objective. The fans “saw” the same things but interpreted them in sharply contrasting ways. the receiver assimilates the varied types of incoming information for the purpose of interpreting it. Through the perceptual processes. A general discussion of behavioral concepts and processes mighty identify perception as a single process. interpretation triggers a response. To rest this idea. in perceiving we receive information in may guises. An object – another person. an event. we could ask students at the universities of Oklahoma and Nebraska to describe the most recent football game between their schools. 9 . These differences would arise primarily because of perception. changes in attributes. Finally. but perception actually consists of several distinct processes.

movement. Or a single car moving along next to two lanes of stalled traffic. MENTAL PROCESS Object → Awareness → Recognition → Interpretation → Response We also tend to focus our attention first on objects that are moving or changing. intensity. Most people can recall the most recent advertising slogans for Mc Donald’s and Coca Cola because they are repeated over on television and radio. We notice a flashing neon sign on a dark street.PERCEPTUAL PROCESS IN ORGANIZATIONS CHARACTERISTICS OF THE OBJECT Perception is influenced by characteristics of the objects that set it apart from its surroundings or cause the perceiver to be more or less aware of the object then would otherwise be the case. Such characteristics include contrast. a person walking through a group of standing people. Movement stimulates our awareness of an object before we become aware of its surroundings. Repetition also can increase out awareness of objects. 10 . if a subordinate repeats a request for additional budget support over and over again. repetition and novelty. Likewise. the manager is more likely to remember the request then if it had been made only once.

a marketing manager for IBM would eagerly read an article about a new advertising campaign by Hewlett. however. might skim right pass the article with out a second glance. self-concept and personality. The most important characterizes are salience. attitudes. The more salient object is to you.CHARACTERISTICS OF THE PERSON An individual personal characteristic also affect how he or she perceives and interprets things. disposition. Some one not affiliated with the school. Thus. the more attention you are likely to pay to it. 11 . Salience is the individual’s feeling about the object’s importance.Packard but probably would show significantly less interest in a new stock offering by Sears. If this morning’s newspaper contains an article about a dramatic tuition increase at a specific university. The reason is simple: The information the article contains would be far more salient to the students then to the outer person. students at that university probably would read it carefully.

Characteristics of the Object Contrast Inensity Movement Repetition Novelty Perceived Reality Characteristics of the Person Salience Disposition Attitude Self-concept Personality Situational Processes Selection Organization Stereotyping Halo effect Projection 12 .

She promptly berates the subordinate for what she perceives as slipshod work.As individual’s disposition also affects show he or she perceives things. This means that the same person may perceive the same object differently in different situations. that is objective information from the environment is interpreted and shaped as the individual perceives it. doubt in a lousy mood. she discovers that one of the subordinates has made an error in calculating unit costs. 13 . Disposition is a short term emotional response triggered by various environmental stimuli. situational process act as filters. organization. The manager disposition has made her not only more aware of the subordinate error but less tolerant of it. Back in her office. as we described earlier. SITUATIONAL PROCESS In a sense. stereotyping. The individual’s cognitions of the environment are influence. Suppose a manager has just been told that she will receive no pay raise next year because of low performance in her work group. by characteristics of both the object and the individual subtle interactions that are unique to particular situations may also occur between person and object. The major situational processes are selection. the halo effect and projection.

Suppose you walk into the reception area of an executive suite. Finally we infer that all people in certain categories take on the attributes we have decided on(all blacks are athletic. A typical reaction. sex). all people pursuing an MBA are aggressive and career driven) Needless to say. all people from Boston talk funny. it is to assume the woman is the secretary and the man is the executive. First. stereotypes are almost always inaccurate. all secretaries are woman. There you notice a man and a woman talking beside a secretary’s desk. Stereotyping consists of three steps. a relatively new addition to the field of organizational behavior. has links to perception. motivation and leadership. 14 . THE NATURE OF ATTRIBUTIONS Attributions theory. we identify categories by which he will sort people (race region. Here we discuss only its implications for perception. owing to a firmly entrenched stereotype. speech patterns and occupations). For attributions theory’s relationship to motivation and to leadership.STERIOTYPING: It is the process of categorizing people into groups on the basis of certain presumed traits or qualities. Next we associate attributes with those categories (athletic ability.

consistency and distinctiveness. Above figure illustrates the basic attribution theory framework. The process of attribution is based on perception of reality. Distinctiveness is the extent to which the same person behaves in the same way in other situations. As a result of impressions or attributions as to the cause of 15 . We then evaluate the behavior in terms of its degrees of consensus. and these receptions may vary widely among individuals. we observe behavior either our own or someone else’s. that is. Consensus is the extending to which the people in the same situation behave in the same way at different times.H. To start the process. Kelly are the best-known contributors to attribution theory.Consensus (High or Low) Observation of Behavior Consistency (High or low) Attribution of causes (High or low) Distinctiveness (High or low) Fritz Heider and H. Attribution theory suggests that we observe behavior and then attribute causes to it. we attempt to explain why people behave as they do.

promote some of his work group To others ATTRIBUTION ABOUT FAILURE Attribution Possible response 16 . External “Sam is successful because he has an easy job and a strong work group” Give Sam more work to do. We may believe the behavior is caused internally (by forces with in person) or externally (by forces in the person’s environment) ATTRIBUTION ABOUT SUCCESS Attribution Internal Possible response “Sam is successful because he Give Sam positive Works hard and has lots of ability” reinforcement promotes him. Holds him up as an example to others.behavior.

Internal “Sally is doing a poor job Because she lacks ability and Motivation” Send sally to a training program or change the incentive structure. hiring and performance appraisal. If we attribute a pay raise to our hard work. motivation. Attribution theory currently is getting deal of attention from Organizational behavior researchers in the areas of leadership. and a variety of other fields. if we think we were given the raise because the boss liked us. 17 . we may put more effort into cementing that friendship. reward systems. particularly in motivation. MANAGERIAL IMPLICATIONS OF PERCEPTION AND ATTRIBUTION Perception and attribution have many implications for managers in organizations. On other hand. performance appraisal. It holds considerable promise for increasing our understanding o behavior in organizational settings. incentive structure External Sally is doing a poor job because She lacks Increase Sally’s resources and strengthen the proper resource and has week work her work group group We also make attributions regarding our selves. communication. we may continue to work hard.

Through projection. Suppose an employee is experiencing some unexpected money trouble. The person doing the hiring may stereotype applications on the basis of raced or sex or allow the halo effect to distort an overall perception of a applicant. Consensus. ATTRIBUTION AND MOTIVATION Perceptions of the workplace play a major role in motivation. consistency and 18 . A person who believes his pay raise is attributable to effort (internal) rather than to his being the boss’s nephew (external) will hose to continue to work hard. PERCEPTION. An interviewer’s disposition during an interview or attitudes toward certain or the applicant’s attributes can also affect the interviewer’s perception of the applicant. she may assume everyone in the organization also care mainly about money. Contrast or novelty in the job applicant can affect his or her chances of getting at his job. attribution is also relevant to motivation. A large pay raise given to another employee will frustrate her and will intensity her efforts to get a pay and how they compare to one another. ATTRIBUTION.PERCEPTION. Because of her disposition (she is worried) and the salience of money (it is unusually important to be at the moment) she will be especially sensitive to issues of compensation. AND HIRING Perception can be also affecting him hiring of new employees. For example. Obviously as suggested earlier. manager with a toothache who believes pole should address professionally for a job interview us likely to be impressed by a applicant who shows up wearing sunglasses and flowered sort coat.

Several areas of performance evaluation are especially susceptible to perceptual distortion. 19 . identity strengths and provide a basis for giving rewards. ATTRIBUTION AND PERFORMANCE EVALUATION Performance evaluation is the assessment of an employee’s performance to correct shortcomings.distinctiveness each can also play a role in how the manager formulates a hiring decision. Suppose a manager prepares several performance evaluations of her subordinates in one afternoon. PERCEPTION. one right later the other. The contrast between two employees can affect the evaluation.

This order matches with the existing passive order(S) otherwise it waits for the active orders to enter the system. The order confirmation message is immediately displayed on the PC of the broker. a message is broadcast to the respective member. 20 . This also helped in accessing the quotes and other market information from other stock exchange which proved vital in the functioning of the system as a whole. which runs under Windows NT and sends signal to the satellite via VSAT/leased line/modem. A message relating to the order activity is broadcast to the respective member.ONLINE TRADING Gone are the days of trading on the floor. Regional SE. On order matching. The main computer runs on a fault tolerant STRATUS mainframe computer at the Exchange. An investor informs a broker to place an order on his behalf. Brokers have terminals (identified as the PCs in the given picture) installed at their premises which are connected through VSATs/ leased lines/modems. as they were local investors. The trading network is depicted in given below NSE has main computer which is connected through Very Small Aperture Terminal (VSAT) installed at its office. which was unable to interact with other SEs started developing this own screen based trading and connecting to other scrip’s which were not available with them. regional stock exchange was playing a very important role in capital markets. The look of the stock exchanges has undergone metamorphic changes in the recent years. The broker enters the order through his PC. Prior to online trading. The signal is directed to mainframe computer at NSE via VSAT at NSE’s office. Technology has changed the landscape of the stock markets.

TRADING NETWORK HUB ANTENNA SATELITE NSE MAINFRAME BROKERS PREMISES 21 .

 To know the benefit customer seek from online trading. 22 . Need of the study As Online trading becomes more sophisticated & complex. investors need a financial intermediary who provides the required knowledge and professional expertise on successful investment.Objectives of Study  To study the customer perception on online trading.

The opinions of the Respondents may be biased.Scope of the study • It covers the locality of Ramanthapur & nearby area & includes the customers having a Demat A/C. • 23 . Limitations • The sample size is limited to 100 Respondents.

CHAPTER-2 Research Methodology 24 .

Research Methodology Approaches The research had both qualitative & quantitative aspects enshrined in it. SAMPLE SIZE AND SAMPLING TECHNIQUE: For this study 100 Respondents are chosen. Duration of the study is 45 days. 25 . The sampling technique used is convenience sampling. The study was followed by quantitative research where a questionnaire was used to find consumer opinion about the online trading.

concepts of consumer perception and literature review.DATA SOURCE AND TYPE: Both primary and secondary data are used to complete the study  Primary data is obtained by administrating questionnaire to respondents. and text books.  QUESTIONNAIRE AND FIELD WORK: To collect primary data a structured questionnaire is used. The secondary data is obtained by the internet. 26 . journals. DATA CLASSIFICATION AND TABULATION: The collected data is scrutinized properly. It is used to study the profile of the company and dealer. Then the required tabulation as per the objectives of the study is made.

27 . Hence data is analyzed in terms of percentages and graphical representation also is made.STATISTICAL TOOLS: Most of the study is tabulated in one variant tabulation.

CHAPTER – 3 ‘REVIEW OF LITERATURE’ 28 .

Moontae Kim Journal: Journal of Product & Brand Management Year: 2008 Volume: 17 Issue: 4 Page: 265 . 29 .271 ISSN: 1061-0421 DOI: 10.Title: A comparative study of perceptions toward “scratch and save” promotions in Canada and Korea Author(s): Sungchul Choi.1108/10610420810887617 Publisher: Emerald Group Publishing Limited Acknowledgements: This work was supported by the University of Northern British Columbia's Research Seed Grant (2007-0326).

more so than in Korea. the results report that consumers with the highest savings expectations do not necessarily have the highest intention to shop. where the promotion tool is widely used but the countries have different cultural values. Practical implications – The findings suggest that when SAS promotions are presented in a country with high uncertainty avoidance. a country with a low uncertainty avoidance culture. retailers should explicitly indicate the value of the guaranteed minimum savings. subjects in Korea show consistently higher savings expectations from SAS promotions than subjects in Canada. Design/methodology/approach – An experiment was conducted to examine cross-cultural differences in SAS promotion evaluations between Canada (n=77) and Korea (n=78). Thus.emeraldinsight. By promising guaranteed savings. Findings – SAS promotions effectively stimulate favorable shopping intentions in Canada. Keywords: Canada. In addition. a country with a high uncertainty avoidance culture. This paper fills some of the gaps. Research limitations/implications – The study suggests cross-cultural differences in the applicability of the disjunction effect.com/10. a SAS promotion with guaranteed minimum savings is found to be very effective due to reduced ambiguity about its outcome. in Korea. Cross-cultural studies. South Korea Article Type: Research paper Article URL: http://www.Abstract: Purpose – The paper seeks to examine cross-cultural differences in how consumers evaluate “scratch and save” (SAS) promotions (which are characterized by uncertainty of savings outcomes) between Canada and Korea. Discounts. retailers can reduce consumers' relatively high concerns about unknown SAS outcomes. Promotional methods.1108/10610420810887 617 30 . Originality/value – Very little work has been undertaken into SAS promotions and no known empirical research has been undertaken into cross-cultural differences. However. which results in a greater advantage in building favorable perceptions.

1108/02632770410547534 Publisher: Emerald Group Publishing Limited 31 . Barry Haynes Journal: Facilities Year: 2004 Volume:22 Issue: 7/8 Page: 170 .Title: An evaluation of customer perception of FM service delivery Author(s): Derren Shaw.177 ISSN:0263-2772 DOI: 10.

This moves the debate about FM performance metrics more towards measuring and understanding customer perceptions and ultimately to customer management strategies.emeraldinsight. Uses factor analysis to establish basic underlying concepts or dimensions. Customer services quality. The implications are that FM managers can use service dimensions to measure the qualitative elements of FM service provision. Proposes a “gap” model which makes a comparison between service quality and the level of importance that customers place on each service dimension. Segmentation analysis allows FM managers to determine whether different service levels are required for customer segmentation groups. Allows the concepts and theories that are currently applied in the service quality literature to be applied in an FM context.com/10. Marketing theory Article Type: Research Paper Article URL: http://www. Uses a questionnaire as the main source of data collection.Abstract: Applies service quality theory to facilities management (FM). Keywords: Customer service management. resulting in a more customer-orientated approach to FM.1108/02632770410547534 32 . Facilities.

Research hypotheses are developed based on theory from the combined literatures of services.174 ISSN: 0309-0566 DOI: 10. service attribute-level performance and satisfaction that unfolds over time. and satisfaction unfolding over time Author(s): Pingjun Jiang. when measured 33 . and their effects on customer retention. This paper seeks to fill this gap in the literature. Bert Rosenbloom Journal: European Journal of Marketing Year: 2005 Volume:39 Issue: 1/2 Page: 150 . Design/methodology/approach – This paper builds propositions about the role of price and customer satisfaction at different stages on customers' intention to return.Title: Customer intention to return online: price perception. Data from the e-retailing industry related to two specific periods of shopping experience (at checkout and after delivery) are used in the empirical tests.1108/03090560510572061 Publisher: Emerald Group Publishing Limited Abstract: Purpose – Compared with the emphasis that service quality research has received in online marketing. and behavioral decision theory. and that price perception. Structural equation modeling is employed to test the hypothesized relationships. product pricing. attributelevel performance. much less work has been done on the role of price perception. Findings – The findings of this study indicate that after-delivery satisfaction has a much stronger influence on both overall customer satisfaction and intention to return than at-checkout satisfaction.

e-tailers might command higher customer retention through providing good performance in after-delivery service and continuously generating favorable price perceptions among customers because both have a strong and positive influence on return intention.emeraldinsight. as opposed to behavioral intentions. regarding customers' whole shopping experience with a particular e-retailer. Keywords: Consumer behaviour. Perception.on a comparative basis. Future study can investigate how satisfaction with shopping convenience has impacted customer acquisition.com/10. Research limitations/implications – The data are only available from surveying customers who have made purchases. Practical implications – This paper concludes that excellence pre-sales service is not necessarily an advantage that allows e-tailers to develop customer retention.1108/03090560510572 061 34 . Measures of actual return behavior. Customer satisfaction. Originality/value – This research conceptualizes and explores different aspects of satisfaction that unfold over time. has a direct and positive effect on customer overall satisfaction and intention to return. Prices Article Type: Research paper Article URL: http://www. In fact. Customer retention. It is a pioneer work that empirically investigates the relative contribution of at-checkout and after-delivery satisfaction in generating intention to return to an e-tailer. Internet. will also enhance the validity of the study.

The hypotheses were tested by applying structural equation modeling and running two group analysis using the PLS and LISREL softwares. Valuable comments provided by members of NSM's Marketing Faculty are recognized. Olsen Journal: Managing Service Quality Year: 2008 Volume: 18 Issue: 4 Page: 309 . The study is concerned with the impact of customers' perception of customer service (bad/good) on variables that are known to drive revenue.328 ISSN: 0960-4529 DOI: 10.1108/09604520810885581 Publisher: Emerald Group Publishing Limited Acknowledgements: The authors acknowledge data provided by the Norwegian Customer Satisfaction Barometer. Abstract: Purpose – The study is motivated by business' mixed response to increasing demand for customer service.Title: The impact of customers' perception of varying degrees of customer service on commitment and perceived relative attractiveness Author(s): Tor W. and commitment. leaving the question as to its impact on performance open. customer satisfaction.e. Design/methodology/approach – Data were collected through a survey among bank customers. Line L. Both authors have contributed equally to the paper. Two groups were sampled: customers who have experienced good or bad customer service. perceived relative attractiveness. i. 35 . Andreassen.

Research limitations/implications – The paper has only tested the model and hypotheses in one industry. Norway Article Type: Research paper Article URL: http://www. Practical implications – From this study.emeraldinsight. put different weights on every factor in the evaluation process.Findings – Customers that experience bad customer service do take into account the same variables in their evaluation as do customers that experience good customer service. Second. Typically. may harm the firm's competitive position in the marketplace. the relationships between the variables were stronger and the explained variance of each construct higher. analyses showed that customers experiencing bad customer service tend to consider more thoroughly all aspects of the service. Also the strength of the relationships between the variables seems to differ. Customer services quality. Consumer behaviour. saving the bottom line by cutting back on the human side of the customer interaction. Keywords: Banking. Future research should test the same model using different industries reflecting different customer involvement levels. Customer relations. service managers can learn that investing in customer service in ongoing customer relations is “the right thing to do” as it is linked to customer equity through customers' commitment to the firm. They do however. as customer service in such relationships drives perceived relative attractiveness. Originality/value – The impact of customer service on key performance variables in ongoing relations has to the knowledge never been studied before.com/10. than in the group of customers experiencing good customer service. However.1108/09604520810885 581 36 . the paths are not different across the groups.

CHAPTER – 4 ‘COMPANY PROFILE’ 37 .

central legislation proposed on a committee headed by A. 38 . Soon after it become a central subject. it was a state subject and the Bombay securities contract (control) Act of 1952 used to regulate trading in securities. the Bombay stock exchange in 1972 and the Ahmedabad in 1973. but they were not organized.HISTORY OF THE STOCK EXCHANGE The only stock exchanges operating in the 19th century were those of Bombay set up in 1875 and Ahmedabad set up in 1894.D. On the basis of committee’s recommendations and the public discussion the securities contract (regulation) Act become law in 1956. a number of stock exchanges were organized in Bombay. Ahmedabad and other centers. Under this Act. During the war boom.Gorwala went into the bill securities regulation.these were organized as voluntary non profit making organization of brokers to regulate and protect their interests. Before the controls on securities trading become a central subject under the constitution in 1950.

and other actives of stock exchanges. the recognition is granted under section 3 of the act by central finance ministry. arbitration and settlement of disputes. regulation of taravani business (jobbing). Opening/closing of stock exchanges. trading rules on exchanges. brokerage charges.Definition of the stock exchange “Stock exchange means any body or individuals whether incorporated or not. timing of trading. It can operate only if the government recognizes it. selling or dealing in securities. By-laws Beside the above act. It is an association of member brokers for the purpose of self regulation and protecting the interest of its members. Under the securities contract (regulation) act 1956. regulation of bank transfer. control of settlement. regulation of carryover business. which are concerned with following subjects. regulating or controlling the business of buying. fixation of market prices or making prices. 39 . constituted for the purpose of assisting. settlement and clearing of the trading. regulation of broker trading. fixation of margins. the securities contract (regulations) rules were also made in 1975 to regulate certain matters of trading of stock exchanges.

if necessary. the government can license some to the brokers to perform the function of a stock exchange in its absence. It is empowered by to acts namely the SEBI Act. Securities Exchange Board of India (SEBI) SEBI was set up an autonomous regulatory authority by the government of India in 1988 “to perform the interest of investors in securities and to promote the development of and to regulate the securities the securities markets and for matters connected therewith or incidental thereto”. Where there is no stock exchange. 40 . 1956 to perform the function of protecting investor’s rights and regulating the capital market. Recognition can be withdrawn. 1982 and the securities contract (regulation) Act. Stock exchanges are given monopoly in certain areas under section 19 of the above act is to ensure that the control and regulation are facilitated.Regulations of stock exchanges: The securities contract (regulation) is the basis for operations of the stock exchange o India. Recognition can be granted to a stock exchange provided certain conditions are satisfied and the necessary information is supplied to the government. One exchange can leally without the government permission or recognition.

banks and SEBI capital market ltd. Infrastructure leasing and financial services ltd.National Stock Exchange (NSE): The NSE was incorporated in NOVEMBER 1994 with an equity capital of Rs. in Mumbai popularly known as “BSE” was established in 1875 as “The native share and stock brokers association”. insurance companies. It may be noted that the stock exchange is the oldest one in Asia. Bombay Stock Exchange (BSE): This stock exchange. The International Securities Consultancy (ISC) of Hong Kong has helped in setting up NSE. ISC has prepared the detailed business plans and installation of hardware and software systems. 2 SEBI nominees. even older than the Tokyo Stock Exchange.25 Crores. as a voluntary non-profit making association . which decides the policies and regulates the affairs of the exchange.It has evolved over the years into its present status as the premier stock exchange in the country. and Stock Holding Corporation Ltd. A governing board comprising of 9 elected directors. 7 public representatives and an executive director is the apex body. this was founded in 1878. 41 . The promotions for NSE were financial institutions.

we reach out to customers like no one else. and a presence on internet through www. secure and hassle free.com. an organization with over eight decades of stock market experience. India’s leading stockbrokers the real arm of SSKI. Share khan offers you trade execution facilities on the BSE and the NSE. With more than 175 share shops in over 80 cities. We offer a suite of products and services. depositary services and most importantly. providing you with a multi-channel access to the stock markets. India’s premier online trading destination.sharekhan.com Share khan.sharekhan. investment advice tempered by 80 years of research and broking experience. for cash as well as derivatives.Company Profile www. 42 . To ensure that your trading experience with share khan is fast.

(For e. Telecom and media. Dematerialization in short called as “Demat is the process by which an investor can get physical certificates converted into electronic form. Rs 20 per scrip per day (the brokerage per scrip will be charged for the trades resulting in delivery on actual or Rs.SSKI group also comprises institutional broking and corporate finance. 20 whichever is more). total delivery value =2200. Brokerage @ 0. Our research team is rated as one of the best in the country.5% = rs 11. While the institutional broking division caters to the largest domestic and foreign institutional investors. SSKI is consistently ranked almagest the top domestic brokerage houses in India. The corporate finance division focuses on niche areas such as infrastructure. As the forerunner of investment research in the India market. Voted four times as the top domestic brokerage house by Asia money survey. but the min chargeable amt per scrip per day = Rs 20). If a customer buys 100 shares of sail. we provide the best research coverage amongst broking houses in India. so additional rs 9 will be charged as min delivery handling charges) 43 .g. SSKI holds a sizeable portion of the market in each of these segments.

• • • Into broking since 80 years. Indus Ind Bank UBI. securities pvt. (City Bank. IDBI. ltd. first caryle. UTI. SSKI owns 56% in share khan. Yes Bank & ICICI) 44 . Focused on providing equity solutions to every segment.COMPANY BACKGROUND: • Share khan is the retail broking arm of SSKI.up with 9 top international banks. ONLINE ACCOUNT TYPES Commercial Terms and Conditions to open online trading account Account Opening Fees: CLASSEC ACCOUNT: 750/.(Life Time opening charges) SPEED TRADE: 1.000/. Largest ground network of 210 branded share shops in 90 cities. HDFC. and balance ownership is HSBC. Oriental Bank of Commerce. and Intel pacific.

Brokerage:   Delivery – 0.10 % (Each leg) + Turnover Tax + Stamp Duty + Service Tax For 5 paisa (Each leg) + Turnover Tax + Stamp Duty + Service Tax For 0.Brokerage:  0. ( Minimum brokerage for shares below Rs.Advance Brokerage cheque.07% CLASSIC / WEBSITE FEATURES 45 . each leg of Intra-day trades.18 for delivery trades.50 % (Each leg) + Turnover Tax + Stamp Duty + Service Tax for 10 paisa (Each leg) + Turnover Tax + Stamp Duty + Service Tax For A minimum brokerage Rs. 50 )  trades resulting in delivery.40% Inntraday-0. (Minimum brokerage for shares below Rs.  each leg of Intra-day trades.e. 4 times your margin CLASSIC PREPAID A/C : Account opening Charges 750/2000/.  each leg of Intra-day trades.20 )  Exposure: You will be given a Trading account with 25 % margin i.

Free calls for order placement on toll-free Trusted. professional advice of tele-brokers Facility to enter after market orders online & via phone Daily research newsletter (investor eye) via e-mail Access to new IPO without any paperwork Advanced portfolio monitoring tools Integrated DP account with trading account Option of linking additional 4 DP accounts to trading account Choice of linking 4 banks to trading A/C for online payments Cash and derivatives trading in a single account E-mail confirmations for all transactions Choice of electronic/ physical contracts 46 .       shortly             Facility to integrate choice of 4 banks /DP / trading account Instant credit for shares sold from DP Automatic pick-up of shares from linked DP for pay-in Automatic deposit of shares into linked DP after pay-out 4 times leverage on margin trades Margin trading available for entire market session Slab wise brokerage structure for delivery and margin trades.

         47 . and most active updated live.SPEED TRADE PREPAID A/C : Account Opening Charges: 1000/Advance Brokerage Cheque: 6000/Brokerage:   Delivery : 0.05% SPEEDTRADE EXE FEATURES : All the features of classic Trade execution in 2-3 seconds Instant order / trade confirmations in the same window Hot keys similar to a broker’s terminal Multiple tic-by-tic intra-day charts \ with multiple indicators Availability of 2 ISP & 6 Servers ensuring maximum uptime Customized alerts based on multiple parameters Cancel all / square off all facility Window for top gainers.25 % Intraday – 0. top losers.

satellite links on other hands ensure high speed. VSAT’s are relatively smaller dishes similar to dish antenna for cable T.V and have the benefit of not being very expensive. each trading member will have a computer at his own office any where in India which will be connected to the central computer system at the NSE through leased lines or VSAT’s (Very Small Aperture Terminal). There will be no trading floor in the exchanges. for an interim transition period of six months and subsequently by satellite link. This provides the facility to execute the buy out any extra cost to the investors. It enables investors in one part of the country to trade at the best quotes with an investors located in any other part of the country through the members of the stock exchanges and subsequently clears and settles the trade in an efficient and cost effective manner. availability and quality of the connection.PRESENT TRADING MECHANISM The National system provides single. This code of trading is known as “On-line Trading”. A satellite network makes it possible to connect almost all the parts of the nation quickly as it is easy to install. Instead. as against the ground lines Such as dial up modems leased lines which are prone to disruptions. The primary objective of the stock market is to provide clear opportunity to the investors throughout the country to trade any securities irrespective of the size of the order or the broker through whom the order is routed. nation wide Securities. 48 .

Non-members are not permitted to enter into stock market. various stages have to be completed in executing a transaction at a stock exchange. The steps involved in the methods of trading have been given below: A. the first task in transacting business on stock exchanges is to choose a broker of repute or banker.30P. Hence.00 A. 49 . Since. They have to act through only member brokers. In the trading ring space is provided for specified and nonspecified sections. They can also appoint their bankers for this purpose. The stock exchanges operations at floor level are highly technical in nature.TRADING PROCEDURE BEFORE ON-LINE THE TRADING RING: Trading on stock exchanges is officially done in the ring for a few hours from 11. Such people’s can ensure prompt and quick execution of a transaction at the possible price. The members of their authorized assistants have to wear a badge or carry with them identify cards given by the exchange to enter the trading ring. bankers can become members of stock exchange as per the present regulations.M to 2. They carry a Sauda book or confirmation memos duly authorized by exchange.M. Trading before or after official hour is called KERB TRADING.CHOICE OF BROKER: The prospective investor who wants to buy shares or the investor who wants to sell his shares cannot enter into hall of the exchange and transact business. So.

letter. 50 . limit order.This works from 12:00 noon to 2:00 p. ENTRY OF ORDER INTO THE BOOKS: After receiving the order.PLACEMENT OF ORDER: The next step in planning of order for the purchase or sale of Securities with the broker. Orders are executed in the trading ring of the SHAREKHAN . immediate or cancel order.m discretionary order on all working days from Monday to Friday and a special hour session on Saturday. telephone. The orders may take any one of the forms such as at best order. Small ones out their business personally. fax etc. the member enters them in his books and the purchase and sale orders are distributed among his assistants to handle them separately in non-specified and odd-lots. open order and stop loss order. To avoid delay it is placed generally over the phone. discretionary order. The order is usually by telegram. or in person.. EXECUTION OF ORDER: Big brokers transact their business through their authorized clerk. limited discretionary order.

the deals are recorded in a Chaupri Rough notebook or transaction note or confirmation memos. An authorized representative of the stock exchange is also present in the hall to supervise the trading. he may make a counter bid/offer Ultimately the bargains may be closed at a price mutually acceptable to both the parties. The system has been designed to get the bet lids and offers from the jobber’s book as well as the best buy and sell orders from the book. If the quotation is not acceptable to the brokers. The authorized clerk/broker goes to the pit and jobbers offer two way quotes for the scrips they deal in. they act as market makers and provide liquidity to the market. the broker may go to another dealer and make a bargain. In case the quotation is not acceptable to him. All bargains on the stock exchanges are settled by word of mouth and there is no written contract signed immediately by the parties concerned. The prices at which different scrip are traded on a particular day published on the next day in the newspapers. Once the transaction is finalized. Soudha block books or confirmation memos are provided by the stock exchange. The details are recorded in these books also. 51 .The floor of the stock exchange is divided into number of markets (pits) according to the nature of security deal in.

net rate. A contract note is a written agreement between the broker and his client for the transaction executed. the brokerage chargeable.. Then the broker/authorized clerk prepares a contract note. it is prepared in a prescribed from and a copy of it is also sent to the client. It contains the details of the contract made for the purchase/sale of Securities. number of shares bought/sold. etc. name of the company. the authorized clerks enter the particulars of the business transacted during a particular day in ‘Kacha Sauda Book’ they are transferred to ‘Pucca Sauda Book’. which are maintained separately for the ready delivery contracts.PREPARATION OF CONTRACT NOTES Usually. 52 .

B. The hierarchy comprises: Corporate Manager Branch 1 Branch 2 Dealer 1 Dealer 2 Dealer 11 Dealer 12 The users of the trading system can logon as either of the user type.CORPORATE HIERARCHY The Trading member has the facility of defining a hierarchy amongst its users of the NEAT system. Dealer: Dealers are users at the lower most level of the hierarchy. B. A dealer can view and perform order and related activities only for oneself. Corporate Manager: The corporate manager is a term assigned to a user placed at the highest level in a trading firm. The significance of each type is explained below: A. 53 . The branch manager can set user order value limits for each of his branch. Branch Manager: The branch manager is term assigned to a user who is placed under the corporate manager. The facility to set Branch order value limits and user order value limits is available to the corporate manager.

COMPANY SERVICES 54 .

000 trading customers.. Mutual Funds. Sharekhan Services Sharekhan is one of India's leading financial services companies. we reach out to more than 800. Derivatives. We also offer personalized wealth management services for High Networth individuals. India's premier online destination. Portfolio Management Services and Insurance. 55 . Depository Services.With a physical presence in over 300 cities of India through more than 800 "Share Shops".What we can do for you. IPO. and an online presence through Sharekhan. Please click on the service in the image below to get additional information on it. We provide a complete life-cycle of investment solution in Equities.com.. Commodities.

KNOELEDGE CENTRE Trade Now Home -> Knowledge Centre 56 .

..In Equity Buying a stock is like owning a company. you should spend some of your precious time exploring this section to maximise the returns on your valuable money. Enter This Section Getting Started . In case you want stocks to really work for you. check out this section for various articles on investing in stocks. Enter This Section Advanced Investing . information and trivia about investments. Tata 57 . However history has demonstrated that the same is as far from the truth as is the Earth from the Sun. Time to share some experiences and have som. Enter This Section More on Investing .Knowledge Center Sharekhan School Knowledge Center Home School Stock Trivia Opinion Polls Book Reviews Guest Columns Sharekhan School Most people perceive trading in shares as a very easy means of making money. Puzzled? Learn the basics of learning to in. Learning To Invest . Happy reading! Enter This Section Opinion Poll s Stock Trivi a Share Your Opinions! Every investor's opinion counts. Who started the Tata Hydra Electric Power Supply Company? It will once again touch October lows It will breach even October levels and move below It has almost bottomed out and will not see those levels Sir Ratan Tata Sir Dorabji Tata Ratan N... So participate in this opinion poll and have your opinion heard! Where do you see market moving from here? Questions on Investing History.How to Begin Investing Time to take a break from the classroom.scheme Miscellaneous articles related to Investing in Stocks If your dil maange more. shares.Tips and Tricks You know the basics. Now you are eager to know how to make money. stocks. stock exchanges and Dalal Street. Learn the tricks of being a smart investor.

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invest in IPO and Mutual Funds and access all the research and transaction reports through our website.With a Sharekhan online trading account. Your Classic Account also comes with Dial-n-Trade completely free. which is an exclusive service for trading shares by using your telephone. you can buy and sell shares in an instant! Anytime you like and from anywhere you like! You can choose the online trading account that suits your trading habits and preferences . Dial-n-trade is an exclusive service for trading shares from your Landline telephone or Cell phone. • • • • • • • Freedom from paperwork Instant credit and money transfer Trade from any net enabled PC A next-generation online trading product that brings the power of your broker's terminal to your PC After hour orders Online orders on the phone Timely advice and research reports Real-time Portfolio tracking The Classic Account enables you to trade online on the NSE and the BSE. 59 .the Classic Account for most investors and TradeTiger for active day traders.

CHAPTER – 5 ‘Data Analysis & Presentation’ 60 .

of years 0 1-2 yrs 2-5 yrs Above 5 yrs 61 .yrs 0-1 yrs 1-2 yrs 2-5 yrs Above 5 yrs no of respondents 72 4 24 0 no. of respondents 80 60 40 20 0 72 0-1 yrs 24 4 1 no.

of respondents 80 70 60 50 40 30 20 10 0 75 25 yes no 1 doing online trading 62 . online trading No.Interpretation From the about diagram it can be understood that most of the respondents are having demat account form past one year. of respondents yes 75 no 25 no.

Interpretation From the above diagram it can be understood that majority of the respondents are doing online trading. Preference of trading Through broker online no of respondents 28 72 no. of respodents 80 70 60 50 40 30 20 10 0 72 28 T hrough broker online 1 preference of trading 63 .

Feel secure buying shares online Yes no no of respondents 64 8 no.Interpretation From the above diagram it can be understood that most of the respondents prefer to trade online. of respondents 70 60 50 40 30 20 10 0 64 Yes 8 no 1 feel s ecure buying online Interpretation 64 .

From the about diagram it can be understood that almost all the respondents who have done online trading feel secure in buying shares online. of respondents 6 0 5 0 4 0 3 0 2 0 1 0 0 2 4 5 6 D ily a We e kly 1 2 8 M n ly o th q arte u rly 1 freq uen y o c f partic atio ip n Interpretation From the about diagram it can be understood that majority of the respondents prefer to trade weekly once. 65 . Frequency of participation Daily Weekly Monthly quarterly no of respondents 24 56 12 8 no.

Stock broking company India info line Share khan Net worth India bulls other no of respondents 15 64 4 8 9 70 no. of account holders 60 50 40 30 20 10 0 15 64 India info line Share khan Net worth India bulls 4 1 stock broking companies 8 9 other Interpretation 66 .

of respondents 8 0 7 0 6 0 5 0 4 0 3 0 2 0 1 0 0 7 2 Ys e n o 3 1 s fac n atis tio Interpretation From the about diagram it can be understood that majority of the respondents are satisfied with online trading. Satisfaction Yes no no of respondents 72 3 no.From the about diagram it can be understood that majority of the respondents who have demat account belong to Share Khan ltd. 67 .

of respondents 10 0 8 0 6 0 4 0 2 0 0 1 2 8 8 Ye s N o 1 problem in m aintenan e c Interpretation 68 .Problem in maintenance Yes No no of respondents 12 88 no.

Right decision Yes no no of respondents 60 4 60 no. of respondents 60 50 40 30 20 10 0 1 right decis ion 4 Yes no Interpretation 69 .From the about diagram it can be understood that almost all of the respondents did not face any problem in maintaining Demat.

of respondents 80 70 60 50 40 30 20 10 0 72 Yes 3 1 money trans action online correct no 70 . Money transaction online correctly no of respondents Yes 72 no 3 no.From the about diagram it can be understood that that most the respondents who joined Share Khan think that they choose the right decision by joining Share Khan.

of respondents 4 0 3 5 3 0 2 5 2 0 1 5 1 0 5 0 3 6 2 8 2 4 H h re rn ig tu s Sa ty fe Be r tte re o se sp n 0 1 expec tations of res ponden ts o e th r 71 .Interpretation From the about diagram it can be understood that almost all respondents feels that through online money transaction is done correctly. Expectations from Share Khan no of respondents High returns 24 Safety 36 Better response 28 other 0 no.

Interpretation From the about diagram it can be understood that few people feels that Share Khan gives better response, few high return & remaining safety.

opening charges no of respondents low 28 average 40 high 32

no. of respondents

40 30 20 10 0 1 28

40 32 low av erage high

opening charges

Interpretation From the about diagram it can be understood that majority of the respondents feels that the opening charges are high or average.
72

facilities at Share Khan Excellent Very good Good Average Bad

no of respondents 12 16 24 36 8

no. of respondents

40 35 30 25 20 15 10 5 0

36 24 12 16 8 Excellent Very good G ood Av erage Bad 1 facilities

73

Interpretation From the about diagram it can be understood that most of the respondents gave positive response when asked about the facilities provided by Share Khan.

CHAPTER – 6 ‘Summary & Conclusion’

74

Findings
• It is found that 75 % of respondents have done online trading. • 72% of respondents prefer to do trading online. • Among who prefer to do online trading all of them feel secure in buying shares online.

56% of respondents prefer to trade weekly once. 72% of respondents are satisfied by online trading. 88% of respondents didn’t have any problem in maintaining Dmat account.

• 64% of respondents have D-mat account of Share Khan.
• •

• 93% of respondents who hold D-mat account in share khan feel that they have chosen the right decision.

Those who preferred to trading online feels online money transaction is done correctly. Majority of respondent expects better safety. Khan are low.

• Only 28% of the Respondents feel that opening charges at Share

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• Only 8% of the Respondents feel that facilities provided by Share Khan are bad. as well as to update account holders regularly about the safety & security measures that are offered by company. 76 . • Since most of respondents expect better safety from Share Khan that may be the reason why there is a great need to focus on safety measures. Suggestions • Try to persuade the remaining 25% to do online trading by telling them what benefits they can get by doing trading online. • Only 64% of respondents are having accounts with Share khan. its may be better to focus on added facilities so that customer feel satisfy. • It will be better if company takes regular feedback from account holder in order to know their satisfaction levels. there is a scope of huge growth in the market. • Majority of respondents feels that facilities provided by company are average. • Company may think of reducing account opening charges or giving some extra facilities. the remaining 36% are associated with different companies.

77 . To have a competitive advantage over competitors it needs to concentrate on Customer satisfaction. the ability to understand and predict customer’s needs and their behavior. Company must adopt proactive approach. advanced technology and Service quality to lead the race.Conclusion • The study reveals that Share khan is performing satisfactorily & above average.

I assure you that data will be used for academic purpose only and strict secrecy will be maintained.B. I am “S.Questionnaire Dear Sir / Madam.A from VATHSALYA COLLEGE OF BUSINESS MANAGEMENT BHONGIR. Therefore I am working on a project titled “Customer Perception on online trading” under the supervision of faculty. As Part of our curriculum I have to do project work in the area of marketing. 78 . I would also request you to share only relevant information relating to my topic. Thanking You.MAHENDER” pursuing M.

Personal details: Name: Address: Phone: 1) 2) 3) 4) 5) Do you have a Demat account? ( ) Yes ( ) No Since how long you have a demat account? ( ) 0-1 yrs ( ) 1-2 yrs ( ) 2-5 yrs ( ) above 5 yrs Have you ever done online trading? ( ) Yes ( ) No What kind of trading do you prefer for trading? ( ) through broker ( ) Online Do you feel secure in buying share online? ( ) Yes ( ) No 6) How frequently do you participate in trading activity? ( ) daily ( ) weekly ( ) monthly ( ) quarterly 7) Since how long you have been operating in trading activity? 79 .

( ) 0-1 yrs ( ) 1-2 yrs ( ) 2-5 yrs ( ) above 5 yrs 8) In which stock broking company do you have demat account? ( ) Karvy ( ) Share khan ( ) Net worth ( ) India bulls ( ) if other please specify_______________ 9) Are you satisfied with trading online? ( ) Yes ( ) No 10) Do you face any problem in maintaining demat account? ( ) Yes ( ) No 11) Do you think that you have taken a right decision to join in Share khan? ( ) Yes ( ) No 12) Do you feel money transaction is done correctly online? ( ) Yes ( ) No 13) What are the expectations of you from Share khan? ( ) High return ( ) Safety ( ) Better response ( ) if other specify ___________ 14) How do you feel about the opening charges of demat account in Share khan? ( ) Low ( ) Average ( ) High 15) How do you feel about facilities in trading at this company? ( ) excellent ( ) very good ( ) good ( ) average ( ) bad 80 .

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