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Project Report submitted to
in partial fulfillment, for the award of the Degree of MASTER OF BUSINESS ADMINISTRATION Sam Higginbottom Institute of Agriculture, Sciences and Technologies Allahabad, Uttar Pradesh- 221007
SUBMITTED BY: Virendra Kumar (09MBA056)
“Knowledge is an experience gained in life, it is the choicest possession which should be happily shared with others”. Above all I love own my deep sense of gratitude to Almighty God for his blessing, mercy; guidance and strength that made that it possible for me to accomplish this great task. I take this opportunity to express my sincere thanks to my advisor Mr. Manish Tirkey. Joseph school of business studies, San Higginbottom Institute of Agriculture, Technology And Science, Allahabad whose able guidance impetus behind my effort from very conception to the end this work. My sincere and profound thank to Prof. Dr. Masood Naseer (Dean) and all the faculty members of Joseph school of business studies, SHATS whom the completion of this project would have been virtually impossible. I wish to thank Mr.Sanjay Rai (Branch manager) who trusted in my ability and gave me this opportunity and helped me with his valuable insights in selecting our research topic named “OPENNNIG OF DMANT ACCOUNTS AND UNDERSTANDING THE USER ATTITUDE TOWARDS ONLINE TRADING WITH PARTICULER REFERENCE TO ANGEL BROKING” as part of our training. I am indebted to Mr. Narendra Singh, (Asst.unit Manager) our coordinator who gave me valuable time and shared with me his views and ideas now and again on the research topic during the course of the study. I also express our heartfelt thanks to Ms. Neha Prajapati (Crm-Advisor) for giving us the proper direction, guidance and encouragement and providing all the materials necessary in successfully completing our project work. I acknowledge profusely the contribution of Mr. Sheraz (Risk management) who helped me in carrying out the study. During the study, I had to meet many personnel in the organization to conduct lot of personnel interviews. I thank each and everyone who cooperated with me and gave their valuable time and shared their knowledge as well as experience with me. Therefore I could complete a meaningful study. Last but not the least I express gratitude to my friends for their prayer and continuous encouragement render to me throughout the period of my work without which it would not have been a reality. Thank each & every person and soliciting his or her good wishes for my future.
Table of Contents
Chapter No. Contents List of Tables List of Figures Abbreviations Introduction Company Profile Product Profile Need and Scope of the Study Objectives of the Study Limitation of the Study Research Methodology Research Design Research Tools Area of work Statistical tools used for analysis Result and Discussion IV Recommendation V Conclusions Page No
NSE- National Stock Exchange of India Ltd. BSE-Bombay stock Exchange of India Ltd. SEBI-Securities Exchange Board of India NCFM-NSE’s Certification in Financial Markets NSDL-National Securities Depository Limited CSDL-Central Securities Depository Limited NCDEX-National Commodity and Derivatives Exchange Ltd. NSCCL-National Securities Clearing Corporation Ltd. FMC-Forward Markets Commission NYSE-New York Stock Exchange AMEX-American Stock Exchange OTC-Over-the-Counter Market LM-Lead Manager IPO-Initial Public Offer DP-Depository participant DRF-Demat Request Form RRF-Remat Request Form NAV-Net Asset Value EPS-Earnings Per Share DSCR-Debt Service Coverage Ratio S&P-Standard & Poor IISL-India Index Services & Products Ltd CRISIL-Credit Rating Information Services of India Limited
CARE-Credit Analysis & Research Limited ICRA-Investment Information and Credit Rating Agency of India IGC-Investor Grievance Cell IPF-Investor Protection Fund
INTRODUCTION In a shot span of 22 years since inception, the Angel Group has emerged as one of the top three retail stock broking houses in India, having membership of BSE, NSE and the two leading Commodity Exchanges in the country i.e. NCDEX & MCX. Angel Broking is also registered as a Depository Participant with CDSL. The group is promoted by Mr. Dinesh Thakkar, who started this business as a sub-broker in 1987 with a team of 3. Today the angel group is managed by a team of 1937 direct employees and has a nation wide network comprising of 31+ Regional hubs, 150+ branches and 9000+ sub brokers & business associates. Angel is 100% focused on retail stock broking business unlike any other larger national broking house. The group currently services more than 730000+retail clients. Angel habitually generates value added features without the cost burden being passed on to the clients as they strongly believe that better understanding of client’s needs and wants is their top priority. Their e-broking facility is one such effort, which gives the client a platform to access state of the art trading facility at the click of a button. Angel has always strived for delivering customer delight and developing strong long term bonds with its clients as well as channel partners. Angel thrives on a vision to introduce new and innovative products and services constantly. Moreover, Angel has been among
the pioneers to introduce the latest technological innovations and integrate them efficiently within its business. Mumbai – 400 093 BRANCH OFFICE: ANGEL STOCK BROKING LTD. Sardar Patel Marg. 7. Civil Lines. G-1. Akruti Trade Centre. The mainline Business Activities of Angel are: • • • • • • • • • • Stock Broking Derivatives Trading Online Trading Wholesale debt market operations Depository services with CDSL Fundamental Research Services Technical Research Services IPO Distribution and Advisory Mutual Fund Distribution and Advisory Commodities Trading COMPANY’S PROFILE NAME OF THE COMPANY: REGISTERED OFFICE: ANGEL STOCK BROKING LTD. MIDC Marol. LDA Centre-2. Allahabad-211001 FORM OF ORGANISATION: Private Sector 6 . G-5. Andheri (E). Road No.
PROMOTER: ACCOUNTING YEAR: Mr. Dinesh Thakkar 1ST April to 31st March 7 .
com) REGIONAL OFFICES • • • • • • • • • Ahmedabad Bengaluru Chennai Cochin Coimbatore Hyderabad Indore Jaipur Kanpur : Mr. Phani Sekhar 8 . Ltd. Angel Securities Ltd.Source: ppt. Options Segment Angel Commodities Broking Member on the NCDEX & MCX Ltd. NBFC registered with RBI Mimansa Systems Pvt. Rajen Shah : Mr. of Angel broking MANAGEMENT TEAM Chairman and Managing Director : Mr. Ltd. For Software Development (Source : www. Dinesh Thakkar Chief Investment Officer Senior Research Analyst Table 1 ANGEL GROUP COMPANIES Member on the BSE Depository Participant with CDSL Angel Capital & Debt Market Membership on the NSE Cash and Futures & Ltd.harmony. Angel Infin Pvt.angeltrade. Member on the BSE Angel Broking Ltd.
F & O.• • • • • • • • • • • Kolkata Lucknow Ludhiana Mumbai Nagpur Nashik New Delhi Pune Rajkot Surat Visakhapatnam Instant Online Fund Transfer with Multiple Banks BSE. MCX and NCDEX in a single screen Efficient uptime and greater stability for high speed Customized solutions as per client’s requirements Personalized Advisory services for HNI clients Call and Trade at 150+ branches across the country State of the art Technology and Infrastructure DP with CDSL with automated pay-in facility Instant Online technical support for clients The Unique Features of Angel : ANGEL’S VISION 9 . NSE.
angelbroking.com 10 .Source: www.
ANGEL’S BUSINESS PHILOSOPHY Source: www.angelbroking. Wealth Preservation : As wealth grows. focus is shifted to striking a balance between asset creation and preservation. OBJECTIVE OF ANGEL INVESTMENT PHILOSOPHY 11 .” Angel’s investment philosophy is based on two key attributes: 1.com INVESTMENT PHILOSOPHY “Given the client’s risk profile. Wealth preservation applies to day-to-day financial life which includes managing cash flow and overall risk management. maximize performance by adhering to disciplined investment approach backed by quality research. Wealth Creation: The creation of Wealth can be categorized as: Having money work for client Having others work for client Client Working for Money 2.
steady & sustainable returns Margin of safety Low volatility PRODUCT AND SERVICE EQUITY-NSE/BSE/NSE FNO/BSE FNO COMMODITY-MCX/NCDEX CURRENCY TRADING IPO ADVISORY PORTFOLIO MANAGEMENT SERVICES DEPOSITORY SERVICES THIRD PARTY PRODUCT AS MF/INSURANCE INVESTMENT ADVISORY NRI SERVICES E-Broking Products Angel Investor Browser Based Static rates. works behind most firewalls 4 exchanges in single screen Investors (Delivery based clients) PREAPID BROKERAGE ATTRACTIVE FOR ALL GROUP OF CLIENTS SPECIAL BROKERAGE RATE 4 exchanges in single screen Investors and Traders 4 exchanges in single screen Traders Angel Trade Browser Based Streaming quotes Angel Diet Application Based Streaming quotes 12 .Angel’s objective at all time is to protect and then grow client’s portfolio. Angel’s investment philosophy is outlined by in-depth focus on a disciplined long term investment approach in potential multi-baggers. which would result in out-performing the market along with wealth creation. The primary aim is to avoid the thoughts of the declining market and not necessarily outperform the rapidly rising market but to consolidate both the periods. The 3 important tenets that we look for in any stock are: Consistent.
OTHER BENEFITS NO MINIMUM BROKERAGE WILL BE CHARGED Portfolio Management Services (PMS) ANGEL OYSTER ANGEL BLUCHIP ANGEL GROWTH ANGEL LOTUS ANGEL GOLD ANGEL USP Top 3 best broking firm in India Award by dun & Bradstreet for largest distribution network in 2009 Covet major volume driver award in best from 2004-05 to 2008-09 No 1 position in terms of trading terminals Ifc stake 12.35% in angel broking ltd Personalize services 24*7 web-enabled back offices Retail centric research Transparency Customized services Four free e-broking software Free e-chopda software Quality assurance Auto pay in facility Pay-out of fund facility from 18 banks Auto pay in-facility in case share sold from demat (poa) Minimum charges –lowest transaction charges in the country One stop shop for all financial requirement Interest on debit from t+4 days M-connect facility Share kept in pool account can be used as margin trading 700000+client based and 9000+channel partner One to one communication between client and relationship managers Effective investment advice and research reports for clients Daily calls before market hours Instant query resolution 13 .
14 . is a type of broking account which dematerializes paper-based physical stock shares. As of April 2006. your depository account with your DP would be credited with the dematerialized securities. Fill demat request from (DRF) (obtained from a depository participant or DP with whom your depository account is opened). 2. After dematerialization. Deface the share certificate(s) you want to dematerialize by writing across Surrendered for dematerialization. Submit the DRF & Share certificate(s) to DP. The dematerialized account is used to avoid holding physical share: the share are bought and sold through a stock broker. DP would forward them to the issuer / their R&T Agent. The Securities and Exchange Board of India (SEBI) mandates a demat account for share trading above 500 shares. it become mandatory that any person holding a demat account should possess a Permanent Account Number (PAN).ANGEL DEMAT ACCOUNT OVERVIEW OF DEMAT ACCOUNT In India. 3. 4. and the deadline for submission of PAN details to the depository lapsed on January 2007. Procedure 1. Demat account the abbreviation for dematerialized account. The account is popular in India.
CLEARING CORPORATION This term applies to an entity responsible for clearing and settlement of trades done by clearing members on a recognized stock exchange. 20 . T+2 rolling settlement In a rolling settlement. the investor has to open an account with a registered DP. for all trades executed on trading day. NSE holidays. India. A Clearing corporation/ clearing House of a stock exchange is admitted to the depository system for clearing and settlement of securities traded on their respective stock exchanges. Saturdays and Sunday s are excluded. T day the obligations are determined on the T+1 day and settlement on T+2 bases i. which enables securities to be processed by book entry. This is called settlement in the mechanism through which all parties to a transaction get their receivables i. To achieve this purpose.DEPOSITORY: A “Depository” is a facility for securities.e. i. To avail of the services offered by a depository. For arriving at settlement day all intervening holidays. or received money for the shares you sold. a depository is an organization. Settlement Once you have bought or sold shares. A tabular representation of the settlement cycle for rolling settlement is given below: Pay-in The securities sold are delivered to the exchange by the sellers and funds for the securities purchased are made available to the exchange by the buyers. which holds the beneficial owner’s securities in electronic form. For electronic settlement of securities in demat form. A depository functions somewhat similar to a commercial bank. on the 2nd working day. either funds or shares is known as ‘clearing and settlement’ or simply ‘settlement’. which include bank holidays. the depository may immobilize the securities or dematerialize them(so that they exist only as electronic records). Pay-out The securities purchased are delivered to the buyers and the funds for the securities sold are given to the sellers by the exchange. the concerned CC/CH of stock exchange needs to have electronic connectivity with the depository . the transaction is complete only when you have got the shares you purchased. Settlement NC The number is a unique number given to each settlement period of a particular exchange in order to differentiate that settlement that settlement from all the other settlements of that particular exchange. through a registered Depository Participant (DP). e.e.
Auction On account of non-delivery of securities by the trading member on the pay-in day. Transaction Off market -market transaction is a sale or purchase in which cc/ch is involved. Delivery based Trading: . The first thought popping up in your mind would be – where do these shares come from which you are selling without possessing them in your portfolio of stocks. These come from your broker/brokerage firm that lends you the shares in lieu of your investment as collateral. Short Selling Short selling is selling the shares which you do not own. On market .off market transaction is a sale or purchase in between two client and in which cc/ch is not involved. Contract note Contract Note is a confirmation of trades done on a particular day on behalf of the client by a trading member.Buy today Sell any time. You short sell these shares but subsequently you have to close the short by buying back the shares from market and then return it to your broker/brokerage firm. Trading type Intra Day Trade: . 21 . Demat Demat is an abbreviation of Dematerialization. T for T share Exchange considers each trading individually and settlement of each trade executed settled separately hence these shares are not allowed in intraday. BTST Buy today Sell tomorrow. Trading Trading Account is an account required for buying & Selling Shares.Both Buying and Selling is done on the same day. You are also charged some interest for the loan of shares you have taken. the securities are put up for auction by the exchange. The term ‘short’ here signifies that you do not hold the shares being sold.
5%(on both sides) from his broker. 300/- Rs. Forwards A Forward Contract is a customized contract between two entities. Derivative Derivative is a product whose value is derived from the value of one or more basic variables.give the buyer the right but not obligation to sell a given quantity of the underlying asset. Future An agreement between two parties to buy or sell an asset at a certain time in the future at a certain price.FOREX. 11/. called underlying. at a given Price on or before given future date.50p) Ans: Brokerage = Brokerage rate * value of the transaction =0. 21/.50p*(10000 shares *50) =2500/-Rs.700/Investors Rs. Types of Options: Call’s – give the buyer the right but not the obligation to buy a given quantity of the underlying asset. a SUB-BROKER can claim maximum brokerage Amount of 1.txn 22 .Brokerage As per SEBI guidelines. DP AMC & Transaction Charges Charges Annual Membership Charges Deliveries/Debit (Market & Off Market) Within Angel DP Outside Angel DP (Charges are inclusive of CDSL tariff) SCHEMES H. Options A contract which gives the right. but not an obligation. what is the brokerage that the client can be charged?(brokerage rate-0. commodity can be the underlying asset. at a given price on or before a given future date. to buy or sell the underlying at a stated date and at a stated price. Index . where settlement takes place on a specific date in the future at today’s pre-agreed price. 11/.txn Rs. Equity. 16/-txn Rs.I./Traders Rs.txn Rs.N. a STOCK BROKER/DP can charge maximum brokerage Amount of 2. Puts’. If client has sold 1oooo shares of a scrip@ 50.5%(on both sides) to his clients. As per SEBI guidelines.
Securities trading were unorganized and the main trading centers were Bombay and Calcutta. Despite speculation non payment or defaults were not very frequent. During the first and the second five year plan the government emphasis was on the development of the agricultural sector and public sector under takings. 23 . The government enacted the securities contracts act in 1956 to regulate stock markets. In the 1950s speculation became rampant. The stock exchanges in Calcutta and ahemedabad also have trading centre came up later. The Bombay stock exchange was recognized in may 1927 under the Bombay securities contract control act 1925. The capita market was not well organized and develops during the British rule because the British government was not interested in the economic growth of the country. Until the end of the 19th century. As a result many foreign companies depended on the London capital market for funds rather then on the Indian Capital Market. the stock market came to the known as satta bazaar.native shares and stock broker’s association Bombay. These stock brokers organized an informal association in 1875. Of the to Bombay was the chief trading centre were in bank shares were the major trading stock Trading was at that time limited to a dozen brokers their trading place was under a banyan tree in front of the Town hall Bombay. In the post independence period also the size of the capital market remained small. The company’s act 1956 was also enacted.INDUSTRY DETAIL THE HISTORY OF THE INDIAN CAPITAL MARKET The history of Indian capital market back to the 18 th century when east India company securities were traded in the country.
who raised money from capital market. This led to a slump in market Capitalization at the BSE by about 20 % over night and the stock market did not open for nearly a fortnight. July 6th. many unscrupulous promoters. speculation. The scrip. Major capital market scams took place in the 1990s. The Unit Trust of India came into existence in 1964. The government’s liberalization process. Reliance Textiles is Still a Hot favorite trading at all stock exchanges. The 1990s will go down as the most important decade in the history of capital market of India liberalization and globalization were the new terms coined and marketed during this decade. participation by small investors.In 1960 badla came in to existence. Badla provided a mechanism for carrying forward positions as well as for borrowing funds. . A little known entrepreneur. The securities scam of March 1992 involving Brokers as well as Bankers was one of the biggest scam in the history of capital market. 1974 when the Government promulgated the dividend restriction ordinance. default. tapped the Capital Market. In the 1970s Badla Trading was resumed under the disguised form of “Hand delivery contracts” this revived the market. restricting the payment of dividend by companies to 12 % of the face value or 1/3 of the profits of the companies that can be distributed as computed under section 369 of the companies act whichever was lower. proved to be fly-by-night operators. Ban of Badla. In the subsequent years owing to free pricing. and resumption of Badla continued. Convertible debentures emerged as a popular instrument in primary market. The first Mutual Funds of India. Dhirubhai Ambani. Financial institutions such as LIC and GIC helped to revive the sentiment by emerging as the most important group investors. 24 . The 1980s witnessed an explosive growth of the securities market in India.
The primary function of the system is to provide a link between savings and investment for the creation of new wealth and to permit portfolio adjustment in the composition of the existing wealth. Moreover. 25 . fairly integrate. Trading of futures commenced from June 2000 and Internet trading was permitted in February 2000. rolling settlement was introduced in January 1998 for all companies. As a result of the scam Badla discontinued from July 2001. mature more global and modernized.The 1991-92 the Indian stock market witnessed a sea change in terms of technology. The Bombay stock exchange was subject to nation wide competition by two new stock exchange-National Stock Exchange set up in 1994 and over the counter Exchange of India set up in 1992. Technology brought Radical changes in the trading mechanism. It has been a long journey for the Indian capital market. The Indian capital market entered the 21st century with the Ketan Parekh scam. Now the capital market is organized. The National securities clearing corporation and National securities depository limited were set up in April 1995 and November 1996 respectively for improved clearing and settlement and dematerialized trading.
SAVINGS FINANCE INVESTMENT CAPITAL FORMATIOON ECONOMIC GROWTH Figure 1 : Concept of Financial System The progress of savings. supervision control and regulation are equally significant. markets instruments. and services. Thus financial management is in integer part of the financial system. On the basis of the empirical evidence we can defined inter relationship between varied segments of the economy are illustrated below: FINANCIAL SYSTEM FINANCIAL MARKET FINANCIAL INSTITUTION FINANCIAL INSTRUMENTS FINANCIAL SERVICES 26 . finance and investment involves financial institutions. Above all.
Stock exchange is a market in which securities are bought and sold and it is an essential component of a develop capital market. and dealing in securities”. A stock exchange. encourage investments in securities and assist corporate growth stock exchange is regarded as “an essential concomitant of the capitalist system of economy. It is indispensable for the proper functioning of corporate enterprise. It brings together large amounts of capital necessary for the economic progress of a country. By evaluating alternative investments and monitoring the activities of borrowers.” STOCK EXCHANGES India boasts of the oldest stock exchange in Asia -. therefore specialization in production. imparting marketability and liquidity to securities. regulating and controlling of business in buying. selling. There are 23 recognised exchanges spread across the country. liquidity and risk characteristics encourage saving in financial form. prize and exchange risk in the market. thus. “ it is an association. Access to a variety of financial instruments enables an economic agent to pool. weather incorporated or not .it is the barometer of general economic progress in a country and exerts a powerful and significant influence as a depressant or stimulate of business activity I t may be defined as the place or market where securities of joint stock companies and of government or semi government bodies are dealt in. widely accepted medium of exchange reduces the costs of transaction. established for the purpose of assisting. The use of a stable. It facilitates trade and. financial intermediaries increase the efficiency of resource use. it provides necessary mobility to capital and directs the flaw of capital into profitable and successful enterprises . It is the citadel of capital and the pivot of money market. but a process of consolidation is now under way. organization or body of individuals.the Bombay Stock Exchange is 125 years old. Financial assets with attractive yield. The securities contracts (regulation) act . 1956. Many of the regional stock exchanges have started aligning themselves with one or both of the two large exchanges (the Bombay Stock 27 .Figure 2 : Financial System A financial system provides services that are essential in a modern world. defines stock exchange as follows.
India has put in place a regulatory regime for internet trading of stocks. the level of penetration of online trading is extremely small. The Securities and Exchange Board of India (SEBI). but the Bombay Stock Exchange is actively considering demutualisation. As of October 2000. SEBI is currently working on mandatorily shifting all stocks in a phased manner to the rolling settlement system. The country has made rapid strides towards a dematerialised trading environment on the basis of a competing depositories model. The other unpopular system is that of rolling settlements where trades of each day are settled on a T+5 basis. currently. The National Stock Exchange is an unlisted for-profit company set up by some of the leading financial institutions of India. but trading in the exchanges is in mandatory dematerialised mode in most important stocks. Investors have the choice of holding their stocks in physical or dematerialised form. about 98per cent of the trading in the stock exchanges is in dematerialised mode. 28 . Trading and settlement India’s stock exchanges are fully computerised order driven or order-cum-quote driven systems. However. More brokers are expected to follow when the exchanges put in place an ASP (Application Service Provider) model for online trading software. Practically all the trading takes place in the account period settlement system in which all trades during a weekly account period are netted off and the net obligations are settled five business days after the end of the period. The stock exchanges currently run two parallel settlement systems. Most of the remaining stock exchanges are brokerowned (mutual) organisations. the apex regulator of the capital market has regulations that mandate a minimum number of outside directors on the governing board and provide greater autonomy to the professional executives in the day-to-day running of the exchange. A large number of online brokers have started operations.Exchange and the National Stock Exchange) both of which have VSAT networks that give them a nation wide reach.
. 217. Bhubaneswar. Road.700 001..B.Further improvements in the settlement system to T+3 or beyond would have to wait for improvements in the payment system. However. J.682 035. Calcutta .400 001. The Ahmedabad Stock Exchange Association Ltd. As a result. Ernakulam. Put simply.. 29 . account period settlement does not give rise to significant systemic risks in India because of stringent end of day and intra-day margining systems. THE CULCUTTA STOCK EXCHANGE ASSOCIATION LTD.. Veekshanam Road P. BANGALORE STOCK EXCHANGE LTD. 7. Unity Building. First Floor. Jharpada Cuttack Road.. there have been no settlement failures in the principal stock exchanges during the last five years Table 2 Name THE BOMBAY STOCK EXCHANGE Address Phiroze Jeejeebhoy Towers.380 001 'M' Block. COCHIN STOCK EXCHANGE LTD. Mumbai. and the systemic risk is taken care of by using futures style margining. Budhraja Building.. HUBANESHWAR STOCK EXCHANGE ASSN. the weekly settlement is regarded as akin to a one-week futures contract. LTD. Cochi . Ahmedabad . Bangalore. Lyons Range. 3529. Orissa .751 006. Exchanges also have clearing houses to guarantee settlements on the exchange. Manek Chowk. The exchange imposes daily mark to market and initial margins on the brokers to eliminate settlement risk. Dalal Street.C.
'Exchange Building'. M.452 002. Clock Tower. LTD. Rambhavan Complex. Guwahati .302 003. Asaf Ali Road. JAIPUR STOCK EXCHANGE LTD.T.183. Bank Street.I. KANARA STOCK EXCHANGE LTD. PUNE STOCK EXCHANGE LTD. New Delhi 110 002.Budhwar Peth. Bada Sarafa. Kodialbail. Road. THE MAGADH STOCK EXCHANGE LTD.781 001. MADRAS STOCK EXCHNAGE LTD. 1177. Patna . MADHYA PRADESH STOCK EXCHANGE LTD. Saraf Building Annexe A.. Premises. 67. Chennai .575 003. Jaipur . Indore ..600 001 THE GAUHATI STOCK EXCHANGE LTD. THE LUDHIANA STOCK EXCHANGE ASSN. Sinha Library Road.500 001.THE DELHI STOCK EXCHANGE ASSN. Ludhiana 141 008. Rajasthan Chamber Bhawan. LTD. Hyderabad . THE HYDERABAD STOCK EXCHANGE LTD...800 001. Post Box No. Bihar Industries Assn. Second Line Beach. Bank of Maharashtra Bldg. 11. 3&4/4B. Lajpat Rai Market. Mangalore .. 4th Floor. Road. 30 .
400 005. Pune 411 002. 14/113. Vadodara . POPAT BHAI Rajkot . Parade. Kingsway Building. VADODARA STOCK EXCHANGE LTD. LTD. Maker Towers "F" Cuffe OTC EXCHANGE OF INDIA.. MEERUT STOCK EXCHANGE LTD. THE UTTAR PRADESH STOCK EXCHANGE ASSN.380 002. Bombay Bazar. Padam Towers. Mumbai 18 31 . Meerut Cantonment . Bajirao Road.390 005. Worli. Kanpur . THE NATIONAL STOCK EXCHANGE OF INDIA LTD. SAURASHTRA KUTCH STOCK EXCHANGE LTD.Civil Lines.208 001 101. Chamber Tower. RBC. A-Wing. Sayaji Gunj. COIMBATORE STOCK EXCHANGE 8/732. Bombay .2nd Floor. Tilak Toad. 345. Coimbatore 641 018.250 001. Paradise Complex. Mahindra Towers.Avvinashi Road.
In it. Singapore. Hong Kong. 1999. Membership of the organization is 32 . In the same year it has Five Stock Exchanges established connectivity with it for offering trade in Demat securities and 765 companies signed up with it to get their securities admitted for dematerialization. and New Zealand. Australia. ACG has 22 members including depositories from Japan. State Bank of India Bank of India Bank of Baroda HDFC Bank CDSL has also attained membership of the Asia – Pacific Central Securities Depository Group (ACG).OVERVIEW ABOUT CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED (CDSL) CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in India. BSE has a 45 % stake while others have 55 % stake. It was set up BSE and other co – sponsored with the net worth of Rs. It commenced its operations on March 22. Other co – sponsored are as under. It has 13 DPs in 91 cities across 168 locations covering 320 cities. 104 crores. Malaysia.
expected to help CDSL enhancing its knowledge base and contributing to the development of other member organizations in the best international practices. settlement risk management. would help CDSL to secure foreign institutional investors’ business through their custodian. cross-border linkage and technological development. in turn. This. Operations Performed by CDSL Carrying out actually share transactions To do PSU disinvestments To provide Centralized system at one e-space To secure Foreign Institutional Investors’ business Dematerialization of the Securities Pledge creation in against the securities Trading and settlement on day-to-day basis Work as a custodian of its clients 33 .
10 .50 NIL .com SHAREKHAN UTI SECURITIES MARWADI GROUP HDFC SECURITIES Trading A/c 100 100 NIL NIL NIL NIL Demat A/c 460 400 750 750 600 125 399 Brokerage Delivery .50 Square Off .55 .50 .12 .COMPETITORS STOCK HOLDING CORPORATION OF INDIA LIMITED ICICI direct.18 .30 .15 34 .10 NIL .06 .75 .com SHARE KHAN UTI SECURITIES MARWADI GROUP HDFC SECURITIES KOTAK SECURITIES KARVY STOCK BROKING LIMITED RELIANCE MONEY ANAGRAM SECURITIE Table 3 Opening Fee Parameters ANGEL SHCIL ICICI Direct.
RELIANCE MONEY ANAGRAM SECURITIES 100 NIL 100 NIL 750 400 .10 (source: Angel Broking Trading.12/trade .com) 35 .KARVY STOCKBROKING LTD.30 Rs.40 .05 .
SEBI Act and the Depositories Act. Government and SEBI issues notification. guidelines. and (d) The Depositories Act. preventing transactions in securities by regulating the business of dealing insecurities (b) The Companies Act. 36 . Under these Acts. The self-regulatory organizations (SROs) like Stock Exchanges have also laid down their rules. insider trading. for prevention of unfair trade practices. SEBI has framed regulations under the SEBI Act and the depositories Act for registration and regulations of all market intermediaries. RULES AND REGULATIONS The Government has framed rules under the SCRA. and circulars which need to be compiled with the market participants. etc. 1956. which is a uniform law relating to companies throughout India (c) The SEBI Act.REGULATORY ENVIRONMENT DETAILS LEGISLATION The four main legislations governing the securities market are: (a) The Securities Contracts (Regulation) Act. 1992 for the protection of interests of investors and for promoting development of and regulating the securities market. 1996 which provides for electronic maintenance and transfer of ownership of dematerialized securities. 1956.
37 . The responsibility for regulating the securities markets shared by Department of Economic Affairs (DEA). Reserve Bank of India (RBI).REGULATORS The regulators ensure that the market participants behave in a desired manner so that the securities market continues to be a major source of finance for corporate and government and the interest of investors are protected. Securities and Exchange Board of India (SEBI) and Securities Appellate Tribunal (SAT). Department of Company Affairs (DCA).
the three main objectives are: To protect the interests of the investors in securities To promote the development of securities market To regulate the securities market FUNCTIONS OF SEBI The main functions entrusted with SEBI are: Regulating the business in stock exchange and any other securities market Registering and regulating the working of stock brokers. undertaking inspection. Registering and regulating the working of collective investment schemes Promoting and regulating self-regulatory organizations Prohibiting fraudulent and unfair trade practices in the securities market Promoting investors education and training of intermediaries in securities market Prohibiting insiders trading in securities Regulating substantial acquisition of shares and take over of companies Calling for information. intermediaries and self-regulatory organizations in the securities market. trustees of trust deed.OBJECTIVES OF SEBI The promulgation of the SEBI ordinance in the parliament gave status to SEBI in 1992. 38 . conducting enquiries and audits including mutual funds of the stock exchanges. According to the preamble of the SEBI. portfolio managers. share transfer agents. investment advisers and such other intermediaries who may be associated with securities market in any manner. registrars to an issue. bankers to the issue. merchant bankers. underwriters.
as required by section 12: 1. Credit rating agency 16. Banker to an issue 5. Any other intermediary associated with the securities market 39 . Sub-broker 3.REGISTRATION OF INTERMEDIARIES The intermediaries with securities market shall buy. Portfolio manger 10. Foreign institutional investor 15. Registrar to an issue 7. Share transfer agent 4. Custodian of securities 14. Collective investment schemes 17. Venture capital funds 18. Depository 12. Stock-broker 2. Underwriter 9. Depository participant 13. sell or deal in securities after obtaining the registration from SEBI. Merchant banker 8. Trustee of the trust deed 6. Investment advisor 11. Mutual funds 19.
INNOVATIVE PRACTICE EMPLOYED 40 .
it is possible to get real time data online without the need of contacting broker. Without objective there is no meaning of research. To find the awareness of online trading in angel broking To find the feature of online trading which can convert the offline traders to online trading. RESEARCH OBJECTIVE: There must be an objective behind any research. The main aim of research is to find out the truth which is hidden and which has not been discovered yet. To identify potential customers 41 . In the past. the software is directly made available to the end-user and he/she can access real time data immediately. As each research has some or the other objectives the following are the objectives of this research: • • • • The primary objective of study is to demat account of angel broking. investors had no option but to contact their broker to get real time access to market data. But now with the concept of e-Broking. In e-Broking system.RESEARCH INTRODUCTION: This research has been conducted to find out the current and the future scenario of eBroking. The purpose of research is to discover answers to questions through the application of scientific procedures.
Out of various research methods the research method. It decides the sources of data and methods for gathering data. It is a blue print that of a house devised by an architect. which was most suitable to my research. There are many methods for conducting the research some of them are as under: The design of a research is a plan or a model that helps researcher to conduct a formal investigation and survey. was Exploratory Research because it provides me all the opportunities to cover the all the aspect that I require to conduct the research and get an appropriate out come. It is an application of methods and procedures for acquiring the information needs for getting a desire out come. A good design insures that the information obtained is relevant to the research question and that it was collected by objectives. Since. SAMPLING DESIGN: The Sampling Design taken here is Non-Probability Convenience based Sampling.RESEARCH METHODOLOGY RESEARCH DESIGN: For any researcher the research methodology is the most important criteria to decide before the actual research process starts. research design is simply the frame work or plan for a study. My approach to research is descriptive and quite specific. 42 .
DATA COLLECTION: The task of data collection begins after a research problem has been defined and research design/plan chalked out. The normal procedure is to interview some people individually or in a group to get a sense of how people feel about the topic. the researcher should keep in mind two types of data. The data collected is through questionnaire & information provided by the respondent. So far as this research is concerned. which are collected for the first time. are called primary data. 1) Primary Data: The data.e. directly from the respondents to the base of knowledge & belief of the research. it is called secondary data. So far as this research is concerned Internet and the Company brochures and pamphlets have been referred to. primary data is the main source of information. 2) Secondary Data: When data are collected & compiled in a published nature. While designing about the method of data collection to be used for the study. 43 . There are 2 sources of data i.
with little bit of observation. So far as this research is concerned. due to time constraint the sample size taken is of 100 respondents of Allahabad city. Table 1 Sample Universe Type of Sampling Sample size Research Instrument Allahabad city Non Probability Convenience based Sampling 55 respondents A structured formatted questionnaire Taking in to consideration that the research instrument selected by me was the questionnaire because it gives more flexibility in terms of collection of the data and one has a chance to meet the responder personally and have an idea of getting an important unknown data that can be collected through their behavior. 44 . So for this purpose sample size has to be determined well in advance and selection of sample also must be scientific so that it represents the whole universe.Sampling Process: It is true that it’s very difficult to do the research with the whole universe. As we know that it is not feasible to go for population survey because of the numerous customers and their scattered location. Mode of data collection: Personal visit & filling up of the questionnaire.
of sampling 35 10 10 55 Ag e 10 21-35 10 35 36-50 51-65 The Sampling technique was Random sampling so. 35 users fall in the age group of 21-35. 10 user falls in the age group of 36-50 and 10 user falls under the age group of 51-65. The above graph indicates the age group of the people investing in share market or interested to invest in share.The following are the findings from this research • Please tell me your age? Table2 Different group of Age 21-35 36-50 51-65 Total No. 45 . It can be noted that among the 100 respondents. there is no fixed number of respondents for the specific age group.
The highest no. of users fall under the category of businessman.• What is your occupation? Table3 No. This shows that persons having their business can easily invest in share market whenever they are free or whenever they wish to trade. The category of others include mostly students. Servant Employee Others Total The above graph shows the occupation of the persons who invest in share or interested to invest in share market. of Sampling 25 5 10 15 55 Type of Occu Pation Businessman Govt. 46 .
5 lac 3. There are almost 5 users that fall in the income range of Rs.5 – 5 lac 5 or more lac Total No. So even if they invest. 47 . 1 lac. 5 lac or more have less time to trade or look after the markets themselves. It can be interpreted that persons in the income range of Rs. 5 lac or more. 20 17 8 5 5 55 The above graph shows the income of the person. More of them fall under the category of less than Rs.What is your average annual income? Table4 Income Less than 1 lac 1 – 2 lac 2 – 3. they usually prefer offline trading.
BOI BOB).Estate. After that invest their money in Post Office. SBI. 48 . LIC.Do you have any saving account? In which bank? Saving account bank Commercial Post office LIC Estate Total No. of investors 22 12 11 10 55 The above graph shows that more people have saving in commercial bank (i.e.
This shows that the concept of e-Broking is not so prevalent in the market. The users of online trading are very less compared to that of offline traders. Among 55 respondents only 9 respondents use online trades and the rest use offline trading. • In which Stock Broking House do you prefer to invest ? 49 . 9 46 □ Offline Trading Graph 1 The above graph shows the users and non users of online trading. People still prefer to use the traditional offline method of trading.Which mode of trading alternative do you use? □ Online Trading Table 5 Online Trading Online users Offline users No.
This shows that Angel has more market area to cover by its unique features. This shows the strong position of competitors in the market and the scope for Angel to expand its business.Table6 Broking House Angel India-bulls India Infoline Others No. 10 10 20 15 Graph 5 The above graph shows the various broking houses from where the user prefers to invest. 50 .
DATA ANALYSIS AND FINDINGS There are lots of players in the market including number of broker and sub brokers in the market. 51 . low brokerage. The study may not include the sub brokers as for the sake of convenience. the funding facilities. the deposit ratios etc… This survey is especially focused on the For any researcher it is important that how one has analyzed his or her data in way that it can be clearly interpreted by him and the proper results can be derived. I restricted my survey taking into consideration their Name. The facilities of angel broking demat account is better than other broking house but very few people know about it. Fame & also the products and services they give to their customers such as trading on phone. low trade charges.
CONCLUSIONS 1. 2. Angel haves good return on investment. it will take time for people to change their mode of trading. Angel Demat Account is better than other Demat. it can be concluded that presently the concept of e-Broking is not prevalent in the market. Other persons falling in the category of employee. The persons investing from other broking houses can be converted to the customers of Angel Broking by conveying its unique features and the low brokerage cost and the rest can be educated about stock market. Such people can be made aware about the benefits of demat a/c and e-Broking and it’s uses should be properly conveyed so that people become ready to invest in share market. From the research carried out. servants because these persons are either not investing or investing through other broking houses. As it is a new concept. The investors are mostly businessman. Still the traditional method of offline trading is preferred by the people. The potential customer for Angel Broking House consist of professionals. servants or students are either not aware of Demat account or are not mentally prepared for using e-Broking concept. employees and govt. A good brand is always welcomed over here people are aware of 52 . govt. 4. 3. quality.
The result may have varied. • Sample Size: The Sample size taken is only 55 due to time constraint.LIMITATIONS OF THE STUDY The limitations of this study are as follows: • Area: The area was limited only to Jamnagar city. which may not result in very accurate results. if it was conducted somewhere else. • Time Limit: The time limit taken for conducting the research was very less which could also be one of the limitations of the study. 53 .
and they can be conveyed to trade with Angel Broking by conveying the unique features and low brokerage provided by the Company. to solve the queries of customers. 54 . people regarding the benefits of e-Broking.RECOMMENDATIONS • • • • The Company can create awareness among the customers regarding invest in To make the concept of e-Broking powerful. the Company must educate the A person having sound knowledge about trading in share market can be appointed The potential customer can be identified by knowing the competitor’s customer share market so that they can open their demat account.
.DISCUSSION GUIDE 1) What is your name? …………………………………………………………………… 2) Please tell me your name ……………………………………………………………………. 6) (If yes) do you have a saving account? In which bank? ………………………………………………………………………. 11) Which broking house? ………………………………………………………………………… 12) Have heard about angel broking? ………………………………………………………………………… 13) Are you aware about e-Broking? 55 ... 9) What are the best methods of investment method according to you? ………………………………………………………………………… 10) Have you ever invest in share market? …………………………………………………………………………. 7) Do you have any other investment? ………………………………………………………………………. 3) What is your Occupation? ……………………………………………………………………… 4) What is your yearly average income? ……………………………………………………………………. 5) Do you have any source of income? ……………………………………………………………………. 8) (If yes) Whom have you invested with? ………………………………………………………………………...
……………………………………………………………………………. MCX and NCDEX in a single screen □ No installation required □ Advantages of mobility □ Intraday / Historical charts with various indicators 15) Is there any disadvantage of e-Broking? □ Yes □ No 16) If yes. then which features of e-Broking you like the most? □ Instant Online Fund Transfer with Multiple Banks □ BSE. then specify that ___________________________________________________________ ___________________________________________________________ ___________________________________________________________ ___________________________________ Thank you for you kind cooperation 56 . NSE. 14) If yes. F & O..
angeltrade.bse.harmony. Prentice-Hall of India. Marketing Management.Diamond Pocket Books (P) Ltd.gov.sebi.angelbroking.in 57 .nseindia.com www. 2002.com www. New Delhi Angel Brochures and Pamphlets WEBSITES : • • • • • • www. • • Kotler Philip. Eleventh Edition.BIBLIOGRAPHY BOOKS : • Dynamic memory How to Succeed in Share Market by Ashwini Sharma.angeltrade.com www. Publisher.com www.com www.