BY DOKIPARTHI SANTHOSH KUMAR ROLL.NO: 09JE1E0046 Submitted in partial fulfillment of award of Degree of




This is to certify that the project entitled “INVESTMENT IN EQUITIES WITH REFERENCE TO ITI FINANCIAL SERVICES LTD” submitted to the JNTU KAKINADA UNVERSITY in partial fulfillment for the award of degree of Master of Business Administration has been carried out by Mr. BADIRI SAI BABU Hall-Ticket Number 09KP1E0005, who is a bonafide student of NRI INSTITUTE OF TECHNOLOGY (NRIIT), VISADALA ROAD, GUNTUR for the academic year 2009-11.




This is to certify that the project report titled “INVESTMENT IN EQUITIES WITH REFERENCE TO ITI FINANCIAL SERVICES LTD” submitted in partial fulfillment for the award of MBA Programme of Department of Business Management, JNTU KAKINADA UNVERSITY, KAKINADA, was carried out by Mr. BADIRI SAI BABU, under my guidance. This has not been submitted to any other university or institution for the award of any degree / diploma / certificate.

Name and Address of the Guide

Signature of the Guide


DECLARATION I hereby declare that this project report titled “INVESTMENT IN EQUITIES WITH REFERENCE TO NRI INSTITUTE OF TECHNOLOGIES” submitted by me to the Department of Business Management. JNTU KAKINADA UNVERSITY. is a bonafide work undertaken by me and it is not submitted to any other university or institution for the award of any degree / diploma / certificate or published any time before. KAKINADA. Place: Date: (BADIRI SAI BABU) 4 .

DEEPU. (BADIRI SAI BABU) 5 . under whose inspiring guidance and advice this study has been carried out.ACKNOWLEDGEMENT I express my gratitude to Mr. It is with great pleasure that I Express my gratitude to Mr. I also express my sincere thanks to the Staff Of ITI FINANCIAL SERVICES LTD who were of ready help in answering my various quires related to the project work. Shiva Kumar for giving me this opportunity to carry out the project work on “INVESTMENT IN EQUITIES” in Ventura Securities.


It facilitates faster and efficient transaction of stocks and share through the internet. provding online trading to be an instant success among the investors and intermediaries. brokers and internet 7 . a reality. bulk of the trading is being done through the net. are yet to completely transform the stock business through the net. the tendency of the investors to trade in their own currencies and securities. banks. and also due to the single trading currency. while keeping the basic principles of share trading intact. despise their inherent infrastructural limitations are fast progressing towards a scenario where a big chunk of the transactions would be online. However. with varying degrees of adoption in terms of percentage of trade carried out online. economic giants like the US and Japan where online trading had its origin. In the last decade. etc. The emergence and spiraling growth of online trading have thrown up a lot of challenges and opportunities for all major elements. viz. e-broking firms. In addition to replication the traditional stock trading business on the net. while. though online trading has made cross border trading much easier. e-consultants. rather then the existing ‘T+2’ time cycle. getting his orders executed with the click of a mouse in 20-30 seconds. Such a system will enable the execution of trade at‘t+o’. in the near future. limits the spread and success of it. web-advisors. Across the globe. stock exchanges and the depositories with the possibility of a ‘single window system’. European investors are best placed in cross border online trading given their historical and geographical associations with other nations. online trading has spread far and wide across the globe. The emergence of high-tech mechanisms like straight. Continuous Linking System (CLS) and Direct Access Trading (DAT) platform is sure to make the dream of an investor. investors. India and china. Through processing (STP). It also renders a harmonic integration of investors.Online trading symbolizes the perfect synergy between technology and the mind numbering intricacies of stock markets in bringing about a paradigm shift in the way financial markets operate in recent times. the euro. online trading has led to the mushrooming of a plethora of peripheral business units in the form of e-broking firms.

The presence of a wide array of e-broking firms has drastically cut down the brokerage cost for the investors. the market of e-broking is little overcrowded and hence over-brokered. are connected to the stock exchanges 24 hours a day to execute the orders placed by the investors. directly involve in the trade just by sitting in any corner of the world. could be restricted to online counseling and web-advising to the investors. of the trading mechanism. The introduction of futures and options trading in the recent past has made online trading more attractive. It is learnt that. as they are know. at present. The online portals or the e-broking firms. henceforth. In the current scenario. The role of these brokers. when the markets move in upward trends and trade volume increases. These investors. leaving them like a bunch of sitting ducks on the highway of market fluctuations and uncertainties. online trading portals are slowly replacing the physical presence of traditional brokers and sub brokers. All these market information and the easy trading opportunities have created an illusionary knowledge and over confidence among the investors. 8 . armed with the variety of market information and intelligence provided by online portals and consultancies.portals. The cost effectiveness and the fascination of online trading are enticing millions of retail traders to the stock markets. But this situation could be a double edged sword. They also provide the vital market information technical analysis and various other innovative services to the investors. it is expected that these firms will get enough to share. making it hugely difficult for the new entrants to negotiate the entry barriers. However.

The steps involved in the methods of trading have been given below: 9 . All said and done. It needs the evolution of a blend of well-tested technology and trading mechanism to make online trading universal and complete. These day traders are also responsible for most of the day to day price variations that are beyond the rational expectations prevailing in the market. trying to make money out of the minute-by-minute fluctuations in share prices. The stock exchanges operations at floor level are highly technical in nature. Another important worrying factor of online trading is the safety and regulation issues of stock business.M. TRADING PROCEDURE BEFORE ON-LINE THE TRADING RING: Trading on stock exchanges is officially done in the ring for a few hours from 11. various stages have to be completed in executing a transaction at a stock exchange. It is very difficult to have a foolproof system of trading. The members of their authorized assistants have to wear a badge or carries with them identify cards given by the exchange to enter the trading ring.30P. Non-members are not permitted to enter into stock market. investors and people involved in stock trading should keep in mind that the stock market is not a Mexican casino to gamble.00 A. To their dismay most of them end up bankrupt and simply disappear.Online trading has also given way to a new breed of investors known as ‘Day Traders’ who gamble in the market. Hence. Trading before or after official hour is called KERB TRADING. considering that the entire business is done on a seamless and a very fluid platform.M to 2. In the trading ring space is provided for specified and non-specified sections. The carry a Sauda block book or confirmation memos duly authorized by exchange and carry a pen with them. but a means of capital mobilization and equitable distribution in achieving the ends of economic growth.

To avoid delay it is placed generally over the phone. discretionary order. The orders may take any one of the forms such as at best order.). So. INTRODUCTION TO ONLINE TRADING Gone are the days of trading on the floor. They have to act through only member brokers. or in person. Prior to online trading. Since. The order placed may be any of the following varieties (largely classified on the basis of price limits that it imposes. letter. fax etc. the first task in transacting business on stock exchanges is to choose a broker of repute or banker. regional stock exchange was playing a very important role in capital markets. 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. immediate or cancel order. They can also appoint their bankers for this purpose. fax. which was unable to interact with other SE’s started developing this own screen based trading and 10 . Technology has changed the landscape of the stock markets. limit order. bankers can become members of stock exchange as per the present regulations. At present there are 4500 authorized brokers in ISE. Regional SE. telephone. Such people’s can ensure prompt and quick execution of a transaction at the possible price.  PLACEMENT OF ORDER: The next step in planning of order for the purchase or sale of Securities with the broker. The order is usually placed over telephone.  PLACING ORDER WITH THE BROKER: The next step is placing an order for the purchase/sale of securities with the broker. The order is usually by telegram.. The look of the stock exchanges has undergone metamorphic changes in the recent years. as they were local investors. limited discretionary order. It can also take the form of telegram or letter or in person. open order and stop loss order.

This also helped in accessing the quotes and other market information from other stock exchange. which are connected through VSATs/ leased lines/modems. which runs under Windows NT and sends signal to the satellite via VSAT/leased line/modem. The signal is directed to mainframe computer at NSE via VSAT at NSE’s office. a message is broadcast to the respective member. The main computer runs on a fault tolerant STRATUS mainframe computer at the Exchange. This order matches with the existing passive order (S) otherwise it waits for the active orders to enter the system. which proved vital in the functioning of the system as a whole. On order matching. Brokers have terminals (identified as the PCs in the given picture) installed at their premises. An investor informs a broker to place an order on his behalf. A message relating to the order activity is broadcast to the respective member. 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. The broker enters the order through his PC.connecting to other scrip’s which were not available with them. The order confirmation message is immediately displayed on the PC of the broker. 11 .


transfer To study the services provided by NSDL and CSDL. Demat a/c. To study the entire mechanism of trading online and dematerialization. To study various benefits of depositories. of securities and trading and settlement of Demat securities. To study the advantages of online trading system over manual system.OBJECTIVES To study the conceptual framework of online trading and de-materlisation. 13 . • • • • • • • • • To study about online trading procedure followed in ITI Financial Services Limited. To study the concept of dematerialization of shares that is procedure. To study the procedure of online trading of Demat securities. To compare the transaction changes of similar firms. To study how online trading system helps in improving market transperancy . To study how online trading system helps in smooth market operaton while retaining the flexibility of conventional trading practices.

On the close of the bargain. Inaudibility and also speculation and malpractice is more. 14 . the dealer sell as well as the broker makes a brief notes of the particulars of the deal. to whom the price is quoted. the price agreed upon. the broker or his authorized representatives goes to the stock exchange. also known as offer or bid price. he may lose the bargain. the scope of manipulation. Such notes are made on some pad and on it the number of shares. If he is not satisfied with the quote price he may turn to some other dealer . are noted. Hence the need to study the advantages of online trading system and its importance in making the market operations and smooth while retaining the flexibility of conventional trading practices. online trading came in to existence. the broker using ‘open outcry’ method makes an offer or bid price. quotes his own price quotation of the dealer suits the broker.. In the post pit or wing. The dealer. The floor of the stock exchange is divided in to a number of market also ‘post pit’ or wing based on particular securities dealt there. The disadvantages of outcry system are it lack transparency. the name of the party.for this. what membership number etc. in order to overcome the above problems.NEED OF THE STUDY In outcry the broker has to buy or sell securities for which he has received the orders . For making the necessary bargain. Basically the broker shouts while buying or selling the securities. he codes his purchase or sales price.

By studying the Online Trading and Clearing & Settlements.Scope of the study The scope of the project is to study and know about Online Trading and Clearing & Settlements dealt in ITI FINANCIAL SERVICES LTD. Secundrabad. By this we can access anywhere and know the present dealings in shares. The scope of the study is limited to ON-LINE trading mechanism of stock broking firm in particular ITI Financial Services Limited. a clear option of dealing in stock exchange is been understood. 15 . Unlike olden days the concept of trading manually is been replaced for fast interaction of shares of shareholder.

Also transparency is observed in transactions 16 . With the use of the online trading surveillance be came easy as there is very less scope for speculation. the agriculture industries growth and performance of corporate sector in particular . due to the following reasons. In turn. The invester is provided with best offer. shares and securities. There is need to study the capital market in India. Before the introduction of the online trading. Outcry prevalent. With the introduction of online trading liquidity will improve considerably which is very much essential for attracting small companies to the exchange. Here the member or the broker Would stand at specifies spot in trading hall. Stock market in India is more than a centuary old and has been functioning effectively through the medium of recognized stock exchange the stock market which is an integral part of the capital market has been major impact on the functioning of the economy. Stock exchange provides ready marketability and unequalled of ownership of stocks. number of shares he has and the price of the shares ultimately the deal would be made between the buyer and seller and transfer of the shares take place. and since the capital market is playing major role in Indian economy from the past several years. The present scenario to complete and survive the regional stock exchange would require sound infrastructure and trading system as per international standards.IMPORTANCE OF THE STUDY Stock exchange is an integral part of capital market it is the most perfect type market for securities wether govt or semi govt bodies or other public bodies also for shares and debentures issued by joint stock enterprises. reflecting the fundamentals in the economy would be influenced the tone of capital and stock markets. He is required to shut out the name of the company. Stock exchange provides liquidity to the listed company they give quotations to listed companies and help in trading and raising funds from the market.

Secondary data: - The secondary data is collected from various sources like the brochures and material provided by ITI Finaicial Services Limited. Primary data: - The data is collected by personal interaction with autherised members of ITI Financial Services Limited.RESEARCH AND METHODOLOGY Data source: The data source utilized to under taker the project is both primary and secondary data. 17 .

18 .  There was a constraint with regard to time allocation for the research study i.  Detailed study on the topic was not possible due to limited size of the project.e.  Problems of listing are not covered due to limited time and to keep the study in manageable limits  The data is collected from the primary and secondary sources and thus is subject to slight variation than what the study includes in reality  The study was restricted in Hyderabad. for a period of two months.LIMITATIONS OF THE STUDY  The study is confined to online trading procedure only.  The observations drawn are of past and present years only. No primary data is associated with the project.  Data collection was strictly confined to secondary source of data.

This book is divided into four sections. In his interview. Online trading has dramatically changed the way stock business has been conducted over the years. The first section deals with fundamentals and framework. banking. The second article. The fourth section is about the technology advancements in online trading. number of e-broking firms. brokerages and demographic patterns.” By Mayura jaiswal. Information technology has replaced the age-old share trading method with the faster and more accurate online stock trading. 19 .REVIEW OF LITERATURE Online trading marks a watershed in the application of technology in conducting trading business in stock markets. different value propositions in the online marketing and the future trends in e-trading. by Anup Bagchi. background and trading mechanisms involved. by Dr. traces the growth of online trading from the year 2000 using statistics on volume of online trading from the year 2000 using statistics on volume of online trading. “Online trading: Trading @ the speed of light. deeepad vashist and Abhay Kumar. The opening article. T R Rajarajan traces the evolution of securities trading from traditional system to trading through the internet. “share trading: Moving to the Net”. the author suggests that online trading should balance a technology centric approach to transactions with the human factor for a successful transition from traditional to online trading. “online trading: Issues and concerns”. jade smith (HSBC treasury and capital markets) discusses various aspects of online trading: the types of transactions conducted online. basic concepts. In the next article. It discusses the trading mechanism through the major components of online trading. the second section focuses on the implication of online trading the third section describes the implications for online investors. The first section on fundamentals and Framework deals with the evolution of online trading. technology and other infrastructure. viz. depositories.

By the late 1990’s. “ payments in India: The journey so far and the road ahead”. This gradual up scaling of technology has led to the rise in popularity and acceptance of online broking as a major way of stock trading. most of the stock exchanges had been automated. ‘clearing & settlement system at NSDL’. including cheque truncation. by Vinod Madhavan looks at how the multiple payment systems have developed in India and considers the need for technology and a legal framework to ensure that an electronically linked payments and clearing system. when the stock exchanges used software technology to interconnect brokers. the structure of a clearing account is described along with the process of settling trade in markets. can be implemented in future. Most stock exchanges began to use computers to replace the market makers or the floor traders who execute the trade on the floor. depositories and banks. With the emergence and growth of the internet. In the next article. the internet order place by clients were firs route through the stock brokers’ computer systems where the matching of orders took place and the trade was executed. Primarily used in the form of e-commerce to place and receive orders for commodities. With the book in software technology. 20 . the floor trader’s started taking computer orders from brokers and executed the trade. Now the thrust is on making the entire trading process completely seamless and risk free. The sixth article. the online trading platform became faster and faster with a lot of sophistication and increased security. and the “open outcry” method of trading had been slowly done away with. Subsequently. slowly it entered the financial markets as an alternative to the traditional system.The process of payment and settlement is an issue of importance in online stock trading. EVOLUTION OF ONLINE TRADING: Online trading had its origin in the US where the first E-trading of stocks began in 1983.

Basic principles and logic of stock trading remain the same as before. 1. is connected to the exchange through sophisticated software. and brokers of trading members can only trade with the exchange. DP Accounts 4. In the same way. the investors feel more empowered and are served with plenty of information. each investor has to trade only through the broker and needs to have a demat account and a broker’s account. who has to be a trading member. The diagram 1 and 2 depict both selling and buying of securities online. Each investor will be given a login account and a password in the broker’s site. 21 . broker/ E-broking firm 3. There are primarily 5 components in any online trading mechanism. The investor is required to trade through any of the approved brokers. The investor places the order with the broker and the broker gets the order executed from the exchange. only. The Exchange The process of online trading is driven by a front-end software which the stock exchange employs through satellite (like V-SAT) connections. Each broker.TRADING MECHANISM: The mechanism in online trading Is the replication of trading of physical securities through the internet in a much faster and convenient way. Investor 2. Investors can log in and lace orders anytime that will be sent to exchange and will be compared with all the orders and executed as per the prices. This software technology provides the necessary interface between the brokers. depositories and the banks. Bank Account 5.

the transactions can be executed in realtime (T+0). The technology used for interlinking these components and the security issues play a major role in the speed of transactions. When these issues are addressed. the credits for the investor can be directly to the investor’s bank account. instead of the present T+2 days time period. depositories and banks. All brokers are embers and account holders of DPs. The investor’s money is transferred to the account with the broker and used for transactions. The whole mechanism is interconnected and the speed of transaction depends on how well all these components operate in harmony with each other. viz. The transaction of cash is taken care of by banks. there are two more important players. Depositories (DP) handle the holding and selling of demat securities.In this linear chain of investor-broker-exchange channel. The depositories function in liaison with the stock exchange and act as an online store for shares and stocks. and similarly. 22 .


CUSTOMER APPROACH THROUGH PHONE/INTERNET KIOSK Funds transferred Broker buys 100 xyz @ market rate Hold Rs.30, 000

Yes, hold DP server

Bank server

Order accepted and goes to exchange

Share transferred


Trade done




BROKER SELLS 100 XYZ @ Rs.300/Funds Transferred Hold100 xyz shares Yes, Hold Bank Server Orders accepted and goes to exchange

DP server

Trades done


Share transferred


The schedule of setting the trade Is governed by the stock exchange rules. The following details are available in the depository software of the DP.

The pay in time decided by the stock exchanges for each settlement is the NSDL deadline time. The significance of NSDL time is that securities can be moved from the client account to the clearing account (client to clearing member), or from clearing account to the stock exchange (clearing member to stock exchange) or from one settlement to another (inter-settlement) only till the NSDL deadline of the relevant settlement. Securities cannot be transferred to a settlement after the NSDL deadline for that settlement is over.

No.of day Day 1 Day 2

Transactions day

Party with Obligation


T (if, Monday) T+1 (Tuesday)

Customer Customer

Trading Securities pay in to member broker

Day 2 Day 3

T+1 (Tuesday T+2(Wednesday)

Customer Member broker

Funds pay in to member broker Securities pay in to the stock exchange Funds pay in to the stock exchange

Day 3


Member broker


Day 3 T+2(Wednesday) Stock exchange Payout of securities to member broker Day 3 T+2(Wednesday) Stock exchange Payout of monies to member broker Day 4 T+3 (Thursday) Member broker Securities deposited into demat account of customer Day 4 T+3 (Thursday) Member broker Funds transferred into client’s bank account. 26 .

The mutual funds industry is doing well. • Online trading started in India in February 2000: Online trading is of 2 categories: Discount online brokers and the other one is the full service online broker. 27 . which is the way the developed world is investing. capital market reforms in India have outpaced all other sectors in the post-liberalization era. Discount online brokers allow one to trade via the internet through the broker at reduced (less than offline brokerage charges) rates. Full service online brokerage is linked to existing brokerage directly through the internet. Investors can save time and make money. is now the mantra of investment markets in India. IPO market is received and derivatives trading are catching on in India. If these investments can be made by the click of the mouse then the investment process will be the easiest.MAJOR ADVANTAGES OF ONLINE TRADING With the February 2003 announcement of Gilts trading available online. The options available for investments today are many. These brokers allow their clients to place online orders with the option of chatting to brokers if advice is needed. Online trading. To combine the speed of the internet and the intricacy of the trade and provide an interactive and integrated trading environment for all investments is the ultimate goal.

In terms of offering the service. 28 . Investors are empowered. Cost of execution of trade for small quantities can be done in proportionate fractions as that of big transactions. irrespective of small or big. now it is open to all those who are willing and capable of investing because of the simple and user friendly ways of online trading. • • Data and information are their for everyone and available everywhere. • • The internet made the stock market operations transparent.FOR THE INVESTORS: Online trading has created a new wave of changes among the investors because of its convenience and the sense of empowerment attached with executing the trade on their own If has also thrown in plenty of options to the investors in the form of various online broking firms which provide a whole lot of advisory and counseling services. In a nutshell. The stock market used to be a black box. making the information available and the benefits of the stock trading were highly concentrated with a particular group of investors who could afford the technical and advisory services. The biggest advantages of online trading is the equitable treatment of investors.

BEST PRICE FOR INVESTORS: Online trade offers the best price for the buying and selling transactions of the investors. Online trading provides. also with competition among the online service providers the brokerage charges are at their lowest in India. • Marketing the investor accounts and transaction of demat securities has manifold conveniences compared to the traditional method of transactions in physical securities. Also due to the high level of transparency with regard to display of information the investors are able to get the best quote for the shares. ONLINE TRADING BENEFITS Advent of online trading can shift the trading power from stock brokers to individual investors. by ensuring proper matching of their orders within the communications network itself. LIQUIDITY TO THE INVESTORS: 29 .FOR THE BROKERS: Brokers can gain on two accounts. howsoever small. could be a more active participant in the decision rather than leaving his portfolio at the sole discretion of his broker. • Surge in the volume of transactions will increase the profit even though the cost per transaction is less in case of online trading. The e-trading concept ensures that the investor. BROKERAGE IS THE LOWEST: As the process of online trade is thoroughly automated the transaction costs are low.

Conversely. right from logging on the broker’s site. TRANSPARENCY: Online trading gives greater transparency to the investors by providing them an audit trail. to the execution and settlement of his bank account. This reduces the settlement risk for the buyer. LEVEL PLAYING FIELD: Trading on the net. the brokerage firm and the stock accounts (demat account) which lead to easy and paperless trading for the client. to clearing and settlement and finally ending with a credit to the depository account of the investor. if the investor spots some opportunity to invest.When online trade and online banking are available. as in this case no short sale is possible.. 30 . QUICK TRADING: The investor is able to execute the entire trading transaction. Who is assured of the delivery of the securities. liquidity of the investments are very high as it is only a click away to disinvest and release the funds. in a very short period of time. thus bringing in transparency into the system. the seller will not be able to sell the securities unless he has their actual possession. HASSLE FREE TRADING: Online trading integrates the bank. This provides a level playing field for all investors In the securities market. All these stages were subject to inspection. he could immediately allocate money from his savings account and make his transactions.e. REDUCES THE SETTLEMENT RISK: This method of trading reduces the settlement risk for the investor. This involves a complete integrated electronic chain starting from order placement. i. gives even the smallest retail investor access to information that earlier was available only to the big traders.

This method is called the open outcry system. For this. he may turn to some other dealer. the broker or his authorized representatives goes to the stock exchange. If he is not satisfied with the quote price. quotes his own price when the quotation of the dealer suits the broker. The floor of the stock exchange is divided into a number of markets also known as ‘post pit’ or wing based on particular securities dealt there. the name of the party. also known as offer or bid price.OUTCRY SYSTEM: The broker has to buy or sell securities for which he has received the orders. On the close of the bargain. The dealer. are noted. he may loose the bargain. In the post pit or wing. For making the necessary bargain. to whom the price is quoted.. what membership number etc. 31 . the broker using ‘open outcry’ method makes an offer or bid price. Basically the brokers shout while buying or selling the securities. the price agreed upon. Such notes are made on some pad and on it the number of shares. the dealer as well as the broker makes a brief note of the particulars of the deal. he quotes his purchase or sale price.

The steps involved in this method of trading have given below: Choice of broker: 32 . MANUAL TRADING Trading procedure before introduction of online trading Trading on stock exchanges is officially done in the trading ring. In the trading ring the space is provided for specified and non-specified sections. The stock exchanges operations are floor level are technical in nature . Hence various stages have to be completed in executing a transaction at a stock exchange .Non-members are not permitted to enter in to stock market. They carry a sauda book or confirmation memos. Signal were more important in the outcry system any member who could not interpret In audibility was another disadvantage of the outcry system. Due to the above disadvantages of the outcry system the ITI Financial Servicees the buy/sell signal correctly often landed himself in disaster situation.DISADVANTAGES OF OUTCRY SYSTEM: • • • It lacks transparency. speculation and mal practice is more. The scope of manipulation. the members and their authorized assistants have to wear a badge or carry with them an identity card given by the exchange to enter the trading ring. • • Limited has shifted from outcry system to online trading. duly authorized by the exchange and carry a pen with them.

Limit Order. which are duly authorized by the exchange when the deal is struck. This works from 11:30 to 2. fax etc or in person. Limited Discretionary Order.M on all working days Monday to Friday. and a special one-hour session on Saturday. The members or the authorized assistants have to wear a badge given by the exchange to enter into the trading ring. the contract notes are drawn up and posted to the client. To avoid delay. have to act through member brokers only. Drawing Up and Bills: Both sale and purchase bills are prepared along with the contract note and it is posted on the same day or the next day. They carry a sauda Block Book or conformation memos. Immediate or Cancel Order. The orders may take any one of the forms such as At Best Orders. This in a purchase transaction. A contract note is written agreement between the broker and his clients for the transaction executed. and Open Order. Execution of order or contract: Orders are executed in the trading ring of the BSE. the process ends. With this.30 P. The order is usually placed by telegram. both broker and jobber make a note in their sauda block books.The prospective investor who wants to buy shares or the investors. From the sauda book. Stop Loss Order. who wants to sell shares and transact business. 33 . telephone. letter. once the shares are delivered to the client effects payment for the purchases and pays the stamp fees for transfer. it is placed generally over the phone. including other expenses incurred by the broker in the price itself. Placement of order: The next step is the placing order for the purchase or sale of securities with a broker. a bill is made out giving the total cost of purchase. They can also appoint their bankers for this purpose as per the present regulations.

The investor has to ensure that he marks “Submitted for Dematerialization” on the certificates before the shares are handed over to the DP for demat. These shares are fungible-which means that 100 shares of a security are the same as any other 100 shares of the security. an investor has to first open an account with a DP and then request for the Dematerialization Request Form. the process is as follows: after completion of transfer. 34 . request DP for Rematerialization of the same is made. Odd lot shares certificates can also be dematerialized. Briefly. Dematerialization can only be done to those certificates. which are already registered in your name and belong to the list of securities admitted for Dematerialization at NSDL. To get back dematerialized securities in the physical form. The company or its R&T agent would confirm the Demat request on its receipt from the DP to reduce risk of loss in transit. In order to dematerialize the certificates. Investor’s willing to exercise this option sends a Demat request along with the option letter sent by the company to his DP. the investor gets the option to dematerialize such shares. Dematerialized shares do not have any distinctive or certificate numbers. Dematerialization normally takes about fifteen to thirty days. Most of the active scrip’s in the market including all the scrip’s of S&P CNX NIFTY and BSE SENSEX have already joined NSDL. This list is steadily increasing.DEMATERLIZATION: Dematerialization is the process by which physical certificates of an investor are converted to an equipment number of securities in electronic from and credited in the investor account with his DP. which is DP and submit the same along with the share certificates.

you save 0. • You can receive your bonuses and rights issues into your DA as a direct credit. This has lead to reduction in brokerage to the extent of 0.5% by quite a few brokerage firms. You avoid the cost of courier / notarization. • There is no lost in transit. this eliminating risk of loss in transit. • In case of transfer of electronic shares.5% in stamp duty.Benefits of Demat: • It reduces the risk of bad deliveries. thus the overheads of getting a duplicate copy in such circumstances is reduced. • RBI has also reduced the minimum margin to 25% for loans against dematerialized securities as against 50% for loans against physical securities. • You can also expect a lower interest charge for loans taken against Demat shares as compared to loans against physical shares. in turn saving the cost and wastage of time associated with follow up for rectification. 35 .

) and CDSL (Central Depository Services India Ltd.DEMAT ACCOUNT What is Demat account and why it is required? Securities and Exchange Board of India (SEBI) is a board (corporate body) appointed by the Government of India in 1992 with its head office at Mumbai. DP’s are like agents of Depository. As we need bank account to save our money. As we buy and sell the stocks. financial institutions etc. So we don't have to possess any physical certificates. DP could be organizations involved in the business of providing financial services like banks. In India there are two such organizations called NSDL (National Securities Depository Ltd. Demat (short form of Dematerialization) is the process by which an investor can get stocks (also called as physical certificates) converted into electronic form maintained in an account with the Depository Participant (DP). accordingly our stocks will get adjusted in our account. Its one of the function is helping the business in stock exchanges and any other securities markets. 36 . All stocks what we possess will show in our demat account. make cheque payments etc. brokers.) Investor’s wishing to open Demat account has to go DP and open the account. Depository is an organization responsible to maintain investor's securities (securities can be stocks or any other form of investments) in the electronic form. They are all held electronically in our demat account. Opening the Demat account is as simple as opening the bank account with any bank. likewise we need to open a demat account if we want to buy or sell stocks.

A demat account can be opened with no balance of stocks. The DP will ask to provide some documents as proof of our identity and address. Electricity/ Landline phone bill etc. card ID. We need not need any stocks to open a demat account. Below PAN is card. we will be guided through the formalities of opening an account. And there is no minimum balance to be maintained either. has made it compulsory to open the demat account if you want to buy and sell stocks. How to start to open a Demat account? We have to approach a DP to open a Demat account. So a demat account is a must for trading and investing. Passport. 37 . A broker and a DP are two different people. Do we need any stocks to open a Demat account? No. A broker is a member of the stock exchange. Ration card. Driver’s license.Is a demat account must? The market regulator. Photo Employee ID card. IT returns. the Securities and Exchange Board of India (SEBI). who buys and sells stocks on his behalf and also on behalf of his customers. Following are the documents required to open Demat account. When we approach any DP. a Voter's list but we may not require all of credit them. Most banks are DP participants so we may approach them. You can have a zero balance in your account.

Points to remember while opening online account a) Make multiple enquiries and try getting low brokerage trading and dematting account. the DP will allot “Beneficial Owner Identification” Number.How much it cost to open a Demat account? The charges for account opening. e) Also enquire about their services charges and any other hidden charges if any. If we want to sell our stocks. Fund transfer from our bank account to trading account and visa versa. intraday or daily trading tips. d) Very important is about service they provide. Finally – After successfully opening the demat account. b) Also discuss about the margin they provide for day trading. The DP will debit our account with the number of stocks sold. We will receive the payment from our broker. 38 . annual account maintenance fees and transaction charges vary between various DP’s. If we want to buy stocks. which will be needed to mention for all our future transactions. Some online share trading account has integrated savings account which makes easy for us to transfer funds from our saving account to trading account. the research calls. inform our broker about our Depository Account Number. c) Discuss about fund transfer. The fund transfer should be reliable and easy. so that the stocks bought are credited into our account. f) And also see how reliable and easy is to contact them in case if any emergency. we need to place an order with our broker and give a 'Delivery Instruction' to your DP.

INDUSTRY PROFILE Following diagram gives the structure of Indian Financial System: 39 .

Again the money market is classified in to  Inter bank call money market  Bill market and  Bank loan market Etc. The unorganized market is composed of indigenous bankers. commercial papers. MONEY MARKET: Money market is a place where we can raise short-term capital. They are:  Money markets (short-term)  Capital markets (long-term) According to institutional basis again classified in to two types.  E. These markets are the centers that provide facilities for buying and selling of financial claims and services.FINANCIAL MARKET Financial markets are helpful to provide liquidity in the system and for smooth functioning of the system. bank and government (SEBI) registered/controlled activities and intermediaries. treasury bills. moneylenders.. individual professional and non-professionals. They are  Organized financial market  Non-organized financial market. According to functional basis financial markets are classified into two types. 40 . The financial markets match the demands of investment with the supply of capital from various sources.g. CD's etc. The organized market comprises of official market represented by recognized institutions.

The primary market is regulated by the Securities and Exchange Board of India (SEBI a government regulated authority). PRIMARY MARKET: Primary market is generally referred to the market of new issues or market for mobilization of resources by the companies and government undertakings. Underwriting contract make the shares predictable and remove the element of uncertainty in the subscription. E. Distribution refers to the sale of securities to the investors. modernization. etc. further and right issues to existing shareholders. underwriting. public offers. Primary market operations include new issues of shares by new and existing companies. and distribution. Function: The main services of the primary market are origination. Debentures. and issue of debt instruments such as debentures. Primary market is also referred to as New Issue Market. for new projects as also for expansion.: Shares.CAPITAL MARKET: Capital market is a place where we can raise long-term capital.g. diversification and up gradation. 41 . Again the capital market is classified in to two types and they are  Primary market and  Secondary market. bonds. Origination deals with the origin of the new issue. addition. and Loans etc.

Depository participant. Merchant banker/book building lead manager 2. The term investor protection has a wider meaning in the primary market. Adviser to the issue 5. The principal ingredients of investors’ protection are:  Provision of all the relevant information  Provision of accurate information and  Transparent allotment procedures without any bias.The following are the market intermediaries associated with the market: 1. the investing public should be protected. More the number of companies entering the primary market. the growth of secondary market depends on the primary market. Underwriter/broker to the issue 4. Depository 7. “The secondary market is a market where scrip’s are traded”. National Stock Exchange of India and Interconnected Stock Exchange of India. Outstanding securities are traded in the secondary market. SECONDARY MARKET The primary market deals with the new issues of securities. 42 . which is commonly known as stock market or stock exchange. Trading activities in the secondary market are done through the recognized stock exchanges which are 23 in number including Over The Counter Exchange of India (OTCE). the greater are the volume of trade at the secondary market. Registrar and transfer agent 3. Investors’ protection in the primary market: To ensure healthy growth of primary market. Thus. Banker to the issue 6. It is a market place which provides liquidity to the scrip’s issued in the primary market.

Bonds 43 . Listing of scrip’s provides liquidity and offers an opportunity to the investors to buy or sell the scrip’s. Share transfer agent 5. The bargains that are struck in the trading ring by the members of the stock exchanges are at the fairest prices determined by the basic laws of supply and demand. Investment advisor 4. The following are the intermediaries in the secondary market: 1. In the stock market.  Government securities. Depository participants. Portfolio Manager 3. Broker/member of stock exchange – buyers broker and sellers broker 2. The companies hitting the primary market are mandatory to list their shares on one or more stock exchanges in India. Depository 6. constituted for the purpose of assisting.” The securities include:  Shares of public company. Definition of a stock exchange: “Stock exchange means any body or individuals whether incorporated or not. purchases and sales of shares are affected in conditions of free competition. selling or dealing in securities.Secondary market operations involve buying and selling of securities on the stock exchange through its members. regulating or controlling the business of buying. Government securities are traded outside the trading ring in the form of over the counter sales or purchase. STOCK MARKETS IN INDIA: Stock exchanges are the perfect type of market for securities whether of government and semi-govt bodies or other public bodies as also for shares and debentures issued by the joint-stock companies.

the Mumbai stock exchange was recognized in 1927 and Ahmedabad in 1937. diversification and modernization. Before the control on securities under the constitution in 1950. By giving quotations to the listed companies. organizing new ventures and completing projects of expansion. central legislation was proposed and a committee headed by A. Over the hundred and twenty years during which the stock exchanges have existed in this country and through their medium.Gorwala went into the bill for securities regulation. Functions of Stock Exchanges: Stock exchanges provide liquidity to the listed companies. Soon after it became a central subject. it was a state subject and the Bombay securities contracts (control) act of 1925 used to regulate trading in securities. During the war boom. shares and debentures for financing their day-to-day activities. a number of stock exchanges were organized. The quoted companies with wide public interest have enjoyed some benefits and assets valuation has become easier for tax and other purposes. On the basis of the committee’s recommendations and public discussion.the backbone of the country’s economy-have secured capital of crores or rupees through the issue of stocks. These were organized as voluntary nonprofit-marking associations of brokers to regulate and protect their interests. 44 . the central and state government have raised crores of rupees by floating public loans. and industry. Municipal corporations. By obtaining the listing and trading facilities. trust and local bodies have obtained from the public their financial requirements.History of Stock Exchanges: The only stock exchanges operating in the 19th century were those of Mumbai setup in 1875 and Ahmedabad set up in 1894. the securities contract (regulation) act became law in 1956. trade and commerce.D. public investment is increased and companies were able to raise more funds. they help trading and raise funds from the market. Under this act.

Bangalore Stock Exchange Bhubaneshwar Stock Exchange Association Calcutta Stock Exchange Cochin Stock Exchange Ltd.Various Stock Exchanges in India: At present there are 23 stock exchanges recognized under the securities contracts (regulation). 45 . Mumbai Stock Exchange National Stock Exchange of India OTC Exchange of India Pune Stock Exchange Uttar Pradesh Stock Exchange Association Vadodara Stock Exchange Ltd. Jaipur Stock Exchange Ltd Kanara Stock Exchange Ltd Ludhiana Stock Exchange Association Ltd Madras Stock Exchange Madhya Pradesh Stock Exchange Ltd. Coimbatore Stock Exchange Delhi Stock Exchange Association Guwahati Stock Exchange Ltd Hyderabad Stock Exchange Ltd. Magadh Stock Exchange Limited Meerut Stock Exchange Ltd. Those are: Ahmedabad Stock Exchange Association Ltd. Act. 1956.

On its recognition as a stock exchange under the Securities Contracts (Regulation) Act. efficient and transparent securities market to investors using Enabling shorter settlement cycles and book entry settlements systems. have become industry benchmarks and are being emulated by other market participants. communication network. • • The standards set by NSE in terms of market practices and technology. • electronic trading systems. Ensuring equal access to investors all over the country through an appropriate Providing a fair.Out of these major stock exchanges were: NSE(NATIONAL STOCK EXCHANGE): The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges. which recommended promotion of a National Stock Exchange by financial institutions (FI’s) to provide access to investors from all across the country on an equal footing. It's that force which is guiding the industry towards new horizons and greater opportunities. Based on the recommendations. 1956 in April 1993. NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. NSE is more than a mere market facilitator. 46 . The NSE was set-up with the main objectives of: • • Establishing a nation-wide trading facility for equities and debt instruments. NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. and Meeting the current international standards of securities markets. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000 NSE's mission is setting the agenda for change in the securities markets in India.

Mumbai. admission.126 A in its Rules. Accordingly. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. who are from the broking community (one third of them retire ever year by rotation). three SEBI nominees or public representatives. Byelaws pertaining to constitution of the Executive Committee of the Exchange. popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association".BSE(BOMBAY STOCK EXCHANGE): The Stock Exchange. even older than the Tokyo Stock Exchange. matters regarding annulment of transactions. which was established in 1878. which decides the policies and regulates the affairs of the Exchange. It is the oldest one in Asia. six public representatives and an Executive Director & Chief Executive Officer and a Chief Operating Officer. consisting of three elected directors. It also strives to educate and enlighten the investors by conducting investor education programmers and making available to them necessary informative inputs. while providing an efficient and transparent market for trading in securities. of India under the Securities Contracts (Regulation) Act 1956. continuance and suspension of member-brokers. declaration of a member47 . The Governing Board consists of 9 elected directors.The Exchange. The Executive Director as the Chief Executive Officer is responsible for the day-today administration of the Exchange and the Chief Operating Officer and other Heads of Department assist him. The Exchange has inserted new Rule No. debt and derivatives upholds the interests of the investors and ensures redresses of their grievances whether against the companies or its own member-brokers. an Executive Committee. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. three SEBI nominees. Executive Director & CEO and Chief Operating Officer has been constituted. A Governing Board having 20 directors is the apex body. The Committee considers judicial & quasi matters in which the Governing Board has powers as an Appellate Authority.

The qualifications for becoming a member of a recognized stock exchange are given below: • • • • • • • The minimum age prescribed for the members is 21 years. He should be an Indian citizen. margins and other monies payable by the member-brokers to the Exchange. 1956” and “Securities Exchange Board of India 1952”. The minimum required education is a pass in 12th standard examination. norms. He should not be a defaulter of any other stock exchange. fees. He should not be convicted for fraud or dishonesty. etc. Three tier regulatory structure comprising  Ministry of finance  The Securities And Exchange Board of India  Governing bond Members of the stock exchange: The securities contract regulation act 1956 has provided uniform regulation for the admission of members in the stock exchanges. procedures and other matters relating to arbitration.broker as defaulter. He should be neither a bankrupt nor compound with the creditors. Regulatory Frame Work Of Stock Exchange A comprehensive legal framework was provided by the “Securities Contract Regulation Act. 48 . deposits. He should not be engaged in any other business connected with a company.

according to this act. Registering and regulating the working of intermediaries associated with securities market as well as working of mutual funds.STOCK EXCHANGE BOARD OF INDIA (SEBI) The securities and exchange board of India was constituted in 1988 under a resolution of government of India. Performing such functions and exercising such powers under the provisions of • • capital issues (control) act. • • Promoting and regulating self-regulatory organizations. 49 . in respect of the regulation of stock exchange were transferred to the SEBI. 1947and the securities to it by the central government. Prohibiting insider trading in securities. OBJECTIVES AND FUNCTIONS OF SEBI • • • To protect the interest of investors in securities. the SEBI shall constitute of a chairman and four other members appointed by the central government. With the coming into effect of the securities and exchange board of India act. 1992 some of the powers and functions exercised by the central government. It was later made statutory body by the SEBI act 1992. Regulating the business in stock exchanges and any other securities market. Regulating substantial acquisition of shares and take over of companies.

SEBI GUIDELINES TO SECONDARY MARKETS: (STOCK EXCHANGES): • Board of Directors of Stock Exchange has to be reconstituted so as to include non- members. 50 . public representatives and government representatives to the extent of 50% of total number of members. • All recognized stock exchanges will have to inform about transactions within 24 hrs. • Capital adequacy norms have been laid down for the members of various stock exchanges depending upon their turnover of trade and other factors.

The orders are of different types. Stop loss order: The orders are given to limit the loss due to unfavorable price movement in the market. Generally the approximation price is fixed. The order stands as this “buy BRC 100 shares around Rs. E. Discretionary order: The investor gives the range of price for purchase and sale.40”. the buyer or seller gives the freedom to the broker to execute the order at the best possible rate quoted on the particular date for buying. It may be lowest rate for buying and highest rate for selling.50. Limit orders: Orders are limited by a fixed price. A particular limit is given for waiting. If the price falls below the limit. ‘buy Reliance Petroleum at Rs. The broker can use his discretion to buy within the specified limit. the order has clearly indicated the price at which it has to be bought and the investor is not willing to give more than Rs.’Here. Best rate order: Here. the broker 51 .50.TYPES OF ORDERS: Buy and sell orders placed with members of the stock exchange by the investors.g.

’F’ and ‘Z’ groups. ROLLING SETTLEMENT SYSTEM: 52 .g. price. It gives the details regarding the name of the company. Buying and selling shares: To buy and sell the shares the investor has to locate register broker or sub broker who render prompt and efficient service to him. the order is executed. the investor should lodge the share certificate and transfer deed to the register or transfer agent of the company. The investor has to fill the transfer deed and stamp it.24. The ‘C’ group covers the odd lot securities in ‘A’.’B1’. The ‘A’ group represents those. number of shares bought. stop loss at Rs. Once matching order is found. In this physical trading form. and the date of delivery of share. ‘B1’&’B2’ groups. Share groups: The scrips traded on the BSE have been classified into ‘A’. The broker then delivers the contract note to the investor. brokerage. Sell BRC limited at Rs.’B2’.’C’. The order to buy or sell specifying the number of shares of the company of investors’ choice is placed with the broker. E. In the case of sale of shares on receiving payment from the purchasing broker. After receiving the order the broker tries to execute the order in his computer terminal.is authorized to sell the shares to prevent further loss. If it is bought in the DEMAT form.22. The stamp duty is one of the percentage considerations. once the broker gets the share certificate through the clearing houses he delivers the share certificate along with transfer deed to the investor. The ‘F’ group represents the debt market segment (fixed income securities). the broker effects the payment to the investor. The order may be of any type. The investor should be account holder in any of the depository participant. which are in the carry forward system. The Z group scrips are of the blacklisted companies. the broker has to give a matching instruction to his depository participant to transfer shares bought to the investors account.

A rolling period which offers a large number of days negates the advantages of the system. The depository processes the pay in requests and transfers the consolidated pay in files to clearing House/clearing Corporation 53 . The rolling settlement system is noted by T+N i. the settlement takes place n days (usually 1. the depositories accept from other DPs till 8p. The exchanges/clearing house/ clearing corporation would process and download the obligation files to the broker’s terminals late by 1.m and in electronic form upto 6 p. The time limit and the additional changes for the exception window are dedicated by the exchange. 2.e. SEBI made RS compulsory for trading in 10 securities selected on the basis of the criteria that they were in compulsory demat list and had daily turnover of about Rs.m. the settlement period is n days after the trading day. SEBI has introduced T+5 rolling settlement in equity market from July 2001 and subsequently shortened the cycle to T+3 from April 2002. Share settlement is likely to be completed much sooner after the transaction than under the fixed settlement system. Automated Lending and Borrowing Mechanism (ALBM) and Borrowing and lending Securities Scheme (BELSS) with effect from Dec 31.m on T+1.Under rolling settlement system. After the T+3 rolling settlement experience it was further reduced to T+2 to reduce the risk in the market and to protect the interest of the investors from 1st April 2003.30 p. Depository participants accept the instructions for pay in securities by investors in physical form upto 4 p. Then it was extended to “A” stocks in Modified Carry Forward Scheme. 3 or 5days) after the trading day.m for same day processing. Generally longer settlement periods are shortened gradually. 2001. The shares bought and sold are paid in for n days after the trading day of the particular transaction. Activities on T+1: Conformation of the institutional trades by the custodian is sent to the stock exchange by 11. Activities on T+2: The depository permits the download of the paying in files of securities and funds till 10.1 crore or more.00 am.30 am on T+2 from the brokers’ pool accounts. A provision of an exception window would be available for late confirmation.

is now a part of the Sharyans and Inga Group. The Sharyans Group has an impressive portfolio of businesses under its fold which mainly fall under the real estate and financial services categories.30 p. In the demat mode net basis settlement is allowed. With an unblemished and reputed track record. ITIFSL will soon touch the pinnacles of success in the financial services industry by being a dominant force in the broking as well as the distribution arena. Intime Spectrum (India’s largest Registry & Transfer Agents). ITIFSL. ITIFSL is all set become an imposing wealth management firm in the country by giving the best to its clients as well as stakeholders. The prominent subsidiaries of this Group are Prebone Yamane (Country’s largest debt broking company). COMPANY PROFILE ABOUT THE ORGANISATION ITIFSL is emerging as one of the top most wealth management companies in India with a daily turnover of over 200 crores and 116 branches spread all over the country. The exchange/clearing house/clearing corporation executes the payout of securities and funds latest by 1. Under the guidance of the Sharyans and Inga Group. The buy and sale positions in the same scrip can be settled and net quantity has to be settled. ITI FSL has been set up to engage in • • • • • • • Stock Broking Institutional Broking Derivatives Depository Services Distribution of Investment Products Distribution of Insurance Commodities Broking 54 . and Collin Stewarts India Private Limited (Portfolio Management Services & Research along with institutional broking operations for Collin Stewarts which is the largest wealth management company in the UK).by 11. originally promoted by the Investment Trust of India.m on T+2 to the depositories and clearing banks.00am/on T+2.

Wealth Manager and to deliver the Highest Standards of Service to customers and be Prominent in the horde of Finance Companies offering similar services". 55 . ITIFSL has over 116 Branch Offices spread across the country to offer better reach and service to the investor. Vision: "To be the most Preferred Financial Advisor. Creator.Headquartered in Chennai. The company currently marks its presence in the following regions: • • • • • • • Andhra Pradesh Delhi Karnataka Maharashtra Madhya Pradesh Tamil Nadu West Bengal Mission: ITI FSL's mission is to deliver value with commitment. ITI FSL has a growing network of offices across several states to ensure easy accessibility to our clients wherever they are. Emerging as one of the frontline Brokerage Houses and a dominant force in the Distribution arena. we are continuously engaged in the assessment of market conditions to balance risk and reward so as to optimize returns to our investors.

Why ITIFSL? • ITIFSL’s services are offered under total confidentiality and integrity with the sole purpose of maximizing returns for their clients. 56 . • • More than 100. Mumbai (BSE) and National Stock Exchange of India Ltd.380 terminals spread across 75 different locations. • Equity Broking . • ITIFSL operate on an alert and well-defined system in risk management and settlement mechanism. in semi urban. ITIFSL have heavily invested in technology (customized and ready to use software) involving front and back end operations offering seamless process and flawless execution and raising our service levels. (NSE).Corporate Member of The Stock Exchange.000 retail clients serviced from the above locations. • Pan India reach . urban and metropolitan areas.


it is important that you select the right financial planner.Given the critical inputs provided by the financial planner in helping you achieve your financial goals. he suggests changes to your financial plan so that you are able to achieve your investment objectives as planned. Your financial planner should be certified and registered as a broker or mutual fund agent with NSE. We also have memberships with commodity exchanges. Post-investment. ITI FSL has Trading and Clearing Memberships with major Stock Exchanges in India to offer broking services across market segments at all of the National-level Exchanges. We have AMFI certified professionals to advice you on mutual funds. BSE. he monitors your investments and ensures that you are on course to achieve your investment objectives. this is a pre-requisite from the compliance point of view. Here are the reasons why ITI is the right planner for you… Certification/Membership More than anything else. 58 . If necessary.ADVANTAGES TO INVESTERS Why you need a Financial Planner? The financial planner is someone who can help you invest across investment avenues based on your risk profile and investment objectives. Competence Gone are the days when financial planning simply required delivering application forms. AMFI etc. ITI FSL is a Depository Participant with CDSL. The traditional "one-size fits all" approach is passé.

we offer a "one-stop" solution for all your investment needs. Furthermore. On-line tools and calculators are some of our more popular value-add services. For this purpose. This is particularly common in a one-man setup where the financial planner's services begin and end with him. If the financial planner is preoccupied with some important clients or if he re-locates. One-stop shop Every individual has different needs and the same undergo a change over a period of time. Accessibility One of the common complaints from investors is that their financial planner is unavailable/inaccessible and therefore unable to provide adequate/prompt service. The financial planner should be capable enough to understand these needs and offer suitable products to fulfill them. mutual funds. In other words. the recommendations offered by ITI are backed by solid research. bonds to fixed deposits.With the increasing list of investment avenues on offer. you can be sure that you will get the best advice and service to achieve your financial goals. value-add services that can assist you in the investment process. ITI provides related. With ITI fine staff of professionals. To that end. Value-add services In addition to financial planning. ITI provides you with the entire range of investment products from stocks. competence and skill set are the basic criteria that investors should look for in an investment planner. selecting the one that suits you the best is becoming a challenge. These value-add services form an integral part of our offering. it 59 . with little or no backup. These tools can help you keep track of your investments.

Research Sound investment decisions depend upon reliable fundamental data and stock selection techniques. depending on your risk-return profile. ITIFSL made it possible for clients to view transaction costs and ledger updates in real time. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio. most respected for quality of its advice. Equities ITIFSL provided the prospect of researched investing to its clients. It is best to go with a financial planning initiative that is run by teams (as opposed to one-man setups) to ensure continuity of your financial plan. PRODUCTS AND SERVICES We are a one-stop financial services shop. and we want 60 . PMS Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. ITI has a team of professionals who are ever ready to serve you at any point of time. which was hitherto restricted only to the institutions. personalized service and cutting-edge technology. ITIFSL Equity Research is proud of its reputation for. We are spread across the country so that you can have access to us always. Research for the retail investor did not exist prior to ITIFSL. We at ITI FSL invest your resources into stocks from different sectors.leaves you in a soup because your financial plan is in limbo. ITI leveraged technology to bring the convenience of trading to the investor’s location of preference (residence or office) through computerized access.

On the whole. Commodities ITIFSL’s extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary.34 bn to Rs 20. The commodities market has several products with different and non-correlated cycles. Average monthly turnover on the commodity exchanges increased from Rs 0. backed by in-depth research and advice from research house and tools configured as investor friendly. No paperwork no queues and No registration charges. INVEST IN Mutual Fund ITIFSL offers you a host of mutual fund choices under one roof. the business is fairly insulated against cyclical gyrations in the business. The company was among the first to offer the facility of commodities trading in India’s young commodities market (the MCX commenced operations only in 2003).you to find the facts that you need. Invest Online ITIFSL has made investing in Mutual funds and primary market so effortless. They choose Ford Equity Research when they can clear your doubts. The Company’s commodities business provides a contra-cyclical alternative to equities broking.02 bn. APPLY IN IPOs 61 . Equity investment professionals routinely use our research and models as integral tools in their work. Its experience in securities broking has empowered it with requisite skills and technologies. All you have to do is register with us and that’s all.

we have employed a multi pronged approach and reach out to customers via our Network. it graduated the Company into a one-stop retail financial solutions provider. Wealth Management Service Imagine a financial firm with the heart and soul of a two-person organization.You could also invest in Initial Public Offers (IPO’s) online without going through the hassles of filling ANY application form/ paperwork Stay connected to the market: The trader of today. subscribe to ITIFSL Stock Messaging Service and get Market on your Mobile! Insurance An entry into this segment helped complete the client’s product basket. But how do you stay connected to the market while on the move? Simple. To ensure maximum reach to customers across India. concurrently. The annuity based income generated from insurance intermediation result in solid core revenues across the tenure of the policy. We offer you a dedicated group for giving you the most personal attentionat every level. you are constantly on the move. The company’s entry into the insurance sector de-risked the company from a predominant dependence on broking and equity-linked revenues. a number of private sector insurance service providers commenced operations aggressively and helped grow the market. Following the opening of the sector in 1999-2000. 62 . A world-leading wealth management company that sits down with you to understand your needs and goals. Direct and Affiliate channels.

Roles and Responcibilities in Organisation: We will give updates to customers in  Economic Outlook and Updates  Sector & Company Reports  Technical Recommendations  Daily Market Report  Daily Technical Outlook  Reports on New Fund Offerings  Weekly analysis of mutual funds – Fund Focus  Weekly debt report: Debt Dose  Offer daily technical calls through SMS to our clients 63 .


25% on transaction value 250 --------------Rs.2% on brokerage) STT (security transaction tax) 0.03% for Intraday and Rs. ITI Financial Services Ltd The company charges Rs. For Intraday based transactions Transaction value Deduct Brokerage (0.2% on brokerage) STT (security transaction tax) 0.99419.99842.0.0 Rs.100000 For Delivery based transactions Transaction value Deduct Brokerage (0.4 65 300 30.100.03%) Service Tax (10.0.30%) Service Tax (10.6 Rs.30% for delivery based transactions.125% on transaction value 125 --------------Rs.0 --------------30 3.ANALYSIS OF THE STUDY Most of the Stock trading companies charge a fixed amount per Rs.100000 .

9 ---------------- For Delivery based transactions Transaction value Deduct Brokerage (0.100000 50 5.99819.05% for Intraday and Rs.05%) Service Tax (10.40%) Service Tax (10.99309.125% on transaction value Rs.India Infoline Ltd The company charges Rs.2% on brokerage) STT (security transaction tax) 0.25% on transaction value 250 --------------Rs.0.100000 66 .40% for delivery based transactions For Intraday based transactions Transaction value Deduct Brokerage (0.2% on brokerage) STT (security transaction tax) 0.1 125 --------------Rs.2 --------------400 40.0.8 Rs.

25% on transaction value 250 --------------Rs.Share Khan Ltd The company charges Rs.2% on brokerage) STT (security transaction tax) 0.100000 For Delivery based transactions Transaction value Deduct Brokerage (0.8 --------------60 6.12 Rs.5% for delivery based transactions For Intraday based transactions Transaction value Deduct Brokerage (0.2% on brokerage) STT (security transaction tax) 0.0.125% on transaction value 125 --------------Rs.1%) Service Tax (10.5%) Service Tax (10.6% for Intraday and Rs.100000 .99199 ---------------67 500 51 Rs.99808.0.

0 125 99842.0 India nfoline Ltd 100000 50 5. but the net amount benefited to the customer is obtained from 68 .12 125 99808. India Infoline & Share Khan.1 125 99819.8 Interpretation: Though the transaction value is same for ITIFSL.9 Share Khan Ltd 100000 60 6.For Intraday Particulars Transaction value Brokerage Service Tax STT Net Amount ITIFSL Ltd 100000 30 3.

the brokerage charges are less. The reason.4 India Infoline Ltd 100000 400 40.8 250 99309.ITIFSL.0 250 99199.2 Share Khan Ltd 100000 500 51.6 250 99419. Also it is to be noted that the service tax is charged on brokerage amount.0 Interpretation: 69 . For Delivery Particulars Transaction value Brokerage Service Tax STT Net Amount ITIFSL Ltd 100000 300 30.

the brokerage charges are less.Though the transaction value is same for ITIFSL.If we order for shares and it will not be traded by Nse/Bse. F4 Key is used for market watch F5&F6 70 . ONLINE TRADING MECHANISM F1 Key is used for the buying of shares and to display the order entry table . The reason. F3 Key is used to display the pending entry eg:. Then the shares are known as in pending. For eg:Bse/Nse Company code Symbol Total quantity Price F2 Key is used for selling the shares and to display order entry. Also it is to be noted that the service tax is charged on brokerage amount. but the net amount benefited to the customer is obtained from ITIFSL. India Infoline & Share Khan.

Opening/yesterday closing price of the shares.Reliance:-symbol.of Orders Quantity of shares Price Seller Price Quantity orders No. Shift F7 To know the details of a particular company Eg:. dividend details F8 & F9 This keys are used to show all the executed order. Always the five buyers /sellers will not be same they will change with in seconds. particular trade. High /low rate of the shares. 71 .of of shares And we can see . % of changes in particular company. Eg:-which are already traded in the market picture F10 Key is used for message log At what time particular company shares were traded. particular time. company code. It will show the best five buyers of that particular and best five seller of that particular company.Key is used for market picture of a particular company if we enter some particular company name in the market picture. Last traded quantity and rate will be shown. Buyer No.

 Most of the customers prefer to invest in long term investments.  From the survey it is found that most of the customer’s satisfaction level is good with the advice given by their marketing executives and the information given in the broachers.  Most of the customers are interested to take part in the demo sessions of online trading in ITI Financial Services Limited.  The net amount for delivery based transactions(99419.4) is highest for ITIFSL followed by India Infoline Ltd & Share Khan Ltd  It was found that most of the customers are willing to take Demat Account rather than commodity account.F11 To add script to the screens F12 Key is used for market movement for particular script or share.0) is highest for ITIFSL when compared to India Infoline Ltd & Share Khan Ltd. 72 .  From the survey it is found that most of the customers are aware of online trading process of ITI Financial Services Limited. FINDINGS OF THE STUDY  The intraday net amount (99842.

India Infoline Ltd and Share Khan Ltd should decrease the brokerage charges to attract the customers.  Company should maintain good relation with the customers and respond quickly to the queries asked by the customers  The company should give demonstration to customers so that they can get complete knowledge about online trading.SUGGESTIONS  The competitors of ITIFinancial Services Limited Viz.  Company should increase awareness about the company’s products & service offered by them in the market.  Company should try to minimize the rejections by taking care while filling the application form.. 73 .

its advantage & disadvantage. The company should increase branch offices in Hyderabad & other areas in A. 74 . All the positive points are used to get the business for the firm. The strategy of giving more benefits to the high end customers is very useful. Because stock market is a volatile market. Again like every coin has its two sides.P. CONCLUSION New ideas are to be implemented to catch the customers. Anything & everything can happen to this market. But then again if anyone study the market well he can earn a lot. So finally it is the investor himself/herself has to decide where to invest. But again if any one wants to take risk & earns a lot he can go for shares. similarly every financial instrument has its own features.

co.sebi.indianstockmarket.com www.Bibliography: www.itifsl.nseindia.com www.in 75 .com www.com www.bseindia.

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