SYNOPSIS ON

ONLINE TRADING IN INDIA

WITH REFRENCE TO SHAREKHAN SECURITIES LIMITED
Submitted in partial fulfilment of the requirement of the

MASTER OF BUSINESS ADMINISTRATION

Submitted by
J. MANISHA
H.T NO: 140520672101
Under the guidance of
Ms P. Preethi

BADRUKA PG CENTRE
( Affiliated to Osmania university)

Kachiguda , Hyderabad
2020-2022

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INTRODUCTION
Online trading involves investments activity which
takes place over the internet and it does not
require physical inclusion of the broker. An
investor has to register with an online trading
portal like ICICIdirect.com, motilaloswal.com and
sharekhan.com and many companies like that and
investor gets into an agreement. As the servers of
online trading portal are connected all the time to
the stock exchanges and designated banks the
order processing is done in real time and investors
can also have updates on trading. They can also
check the status of their orders either through
email or through the interface that it cannot be
accessed by a third party. Some options are
usually given to users such as to link their bank
account, Demat accounts and brokerage accounts
into a single interface. They are two broad models
in play in the online brokerage space-
1.Bank-backed firms
2.Entrepreneur-floated firms
Bank -backed brokerage such as ICICI direct and
HDFC securities have expanded on the basis of
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their brand name and the trust in investors in
them. the integrated 3-in-1 accounts offered by
these bank-backed brokerages help their parent
bank by giving it accounts along with float income.
The reason why online trading has developed
over conventional offline brokerage firms is that
this conventional method struggled with
unfavorable economies. Staff cost is just one
example of it. As the markets open 330 min a day
one dealer can at best execute 500 trades in a
day while online company like ICICI direct
executes 150,000-200,000 trades a day on the
national stock exchange alone accounting for 3-4
% of NSE trades of 5 million a day. It would also
demand huge expenses in real estate and support
systems.
The offline model has got a downfall in the form
of lower bandwidth and it costs and the costs and
the cost of bandwidth has fallen to one -eighth of
the what it was in 2000 giving online broking an
advantage especially in the case of lower -volume
retail investors.

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Today 30% of volumes on the NSE comes from
this and it may up to 50% in three- four years
providing explosive growth for online broking in
India.
THE EMERGENCE OF E-BROKING IN INDIA
The Indian trader being fancied by the
democratized world of online trading or also
known as e-broking. The regular and the attractive
advertisements in the print media and electronic
media have added to this fancy world.
But as we compare to the western countries in
the India online trading has not still grasped the
market, but has done a very important amount of
progress in the past years and the future of online
trading is bright. At present some of the dominant
players in the online trading market of share
market are
1.Sharekhan.com
2.ICICIdirect.com
3.Unicon
4.5paisa.com
5.Indiabulls
6.Kotak securities
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 7.Motilal oswal
8.Geojit securities
9.Angel trade
10. Reliance money
Earlier the share market was not safe enough to
investment but some of the changes in the past
ten years in the Indian share market have created
the interest of trading in the shares by the people.
Broadly we can classify three important factors
which have contributed to the development of
online trading in India.
Company profile:

SHAREKHAN
Sharekhan was founded by Mumbai-based
entrepreneur Shirpal morakhia in 2000. Sharekhan
pioneered the online retail brokerage industry and
leveraged on the first wave of digitization, when
dematerialization (demat) of securities came into
effect and electronic trading was introduced in the
stock exchanges.
In India, Sharekhan has 4800+ employees, and is
present in over 575 cities through 153 branches,
and more than 2,500 business partners. The
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company has 1.4 million customer base and on an
average, executes more than 4 lakh trades per day.
Sharekhan is one of the leading retail brokerage
of SSKI group which was running successfully since
1992 in the country. It is the retail broking arm of
the Mumbai based SSKI group. Which has over
eight decades of experience in the stock broking
business. Sharekhan offers its customers a wide
range of equity related services including trade
execution on BSE, NSE, derivatives depository
services, online trading, investment advice etc.
The firm’s online and trading and investment site-
www.sharekhan.com was launched on feb 8,2000.
The site gives access to superior content and
transaction facility to retail customers across the
country.
The no. of trading members currently stands at
over 6.5 lakhs. While online trading currently
accounts for just over 2per cent of the daily
trading in stocks in India. Sharekhan alone
accounts for 22 per cent of the volumes traded
online.

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PRODUCTS OFFERED BY SHAREKHAN
1.Equity in online and offline trading
2.Portfolio management services
3.Offline & online trade in commodities and
derivatives
4.Mutual fund advisory & insurance.
5.Classic account
6.Dial-n-trade
7.Portfolio management services
8.IPO on-line
9.Online fund transfer
REASONS TO CHOOSE SHAREKHAN LIMITED
 Experience
 Technology
 Accessibility
 Knowledge
 Convenience
 Customer service
 Investment advice
 Benefits

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GROWTH
According to an article by krishnamoorty in 2005 after
inception of online trading in India in the year 2000
online trading is gained momentum with trading
volumes growing by 150 per cent per aNearly two
billion people are connected to the Internet. During
the last twenty years, the technology revolution has
had an intense and irreversible impact on the world
and Indian stock market has also witnessed these
changes. From its formal inception in the 19th century,
the Indian capital market has come a long way and can
be said to be in a maturity stage, backed by a
developed legal system. The internet has made
financial products and services available to more
customers and eliminated geographical barriers. Earlier
investors were solely dependent on their brokers but
nowadays they are participating more in buying and
selling of shares with the help of internet. E-trading has
saved time, energy and money as it helps to access the
market from any where at any time. The primary
objective of this research paper is to analyze the
impact of internet growth on the stock market
transactions. The paper also discusses the current state
of internet trading in India and particularly the scope of
online trading market available in India.

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SCOPE OF THE STUDY
SEBI in September 1996 has issued guidelines to
the stock exchanges to go for online trading
procedure by the end of the year 1996. Following
its directions ASIT C.MEHTA has installed the
online trading system. The major need for this
study is to know the effectiveness of the online
system in comparison with the outcry or mock
trading to study its advantages and recommend for
beneficial and effective use of the system.
OBJECTIVES OF THE STUDY
The objective of the study includes the study of the
below mentioned aspects.
The know more about online trading trends
in India.To study about the backup measures with
respect to primary communications
liabilities, in order to achieve network availability &
connectivity back-up options. Knowing about the
latest & future development in the stock exchange
trading system. Clearly defining each & every term
of the stock exchange trading products. To know
the on-line screen based trading system adopted
by Angel Broking Limited and about its
communication facilities for the appropriate
configuration to set network. This would link the
Angel Broking Limited individual brokers/members.
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LITERATURE REVIEW
Online Stock Trading in India: An Empirical
Investigation With IT fuelling Indian economy,
Internet is adopted as effective tool in catalyzing
the business activities. Latest developments in
information technology have altogether changed
the business done traditionally. As financial system
is becoming more complex it has become need of
the hour where investors should comprehend the
data and understand recent intricacies of online
trading. In Indian context e-trading is relatively new
phenomenon, which has yet to gain some
significant meaning. In the past Investors have no
other option to get market information except to
contact their local broker? But Internet trading in
stock market is becoming medium of exchange
whereby investor can order stock exchange on
simple mouse click sitting at his place. Keeping in
view current market requirement an attempt has
been made in this research paper to analyze
current status of online trading in Indian scenario.
Facts highlighted in this study clearly reveal that
although online trading is picking up its speed to
tap investors yet it is expected to adopt creative

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strategies to lure customers from physical trading
to net trading.

RESEARCH METHODOLGY
RESEARCH DESIGN
 NON - PROBABILITY
The non- probability respondents have been researched
by selecting the persons who does the stock trading.
Those who do not trade in stocks have not been
interviewed.
 EXPLORATORY AND DESCRIPTION RESEARCH
The research is primarily both exploratory and descriptive
in nature. The sources of information are both primary and
secondary. The secondary data has through online.
SAMPLING METHODOLOGY
Sampling technique
Initially a rough draft was prepared a pilot study was done to
check to check the accuracy of the questionnaire and certain
changes were done to prepare the final questionnaire to make
it more judgemental.
Sample size :100.
LIMITATIONS
The study is only up to the extent of online trading of the stock
exchange. The study is restricted to selected companies.
There is lack of awareness among people about investing in stock
market.

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Some of the respondents who did not to online trading were able to
respond to only some questions.

CHAPTERZIATION
1.Introduction
Online trading
Company profile
2.Literature review
3.Data analysis
4.Research methodology
5.Data analysis and interpretation
6.Findings & conclusion
7.learnings
8.bibliography

CONCLUSION
Online trading is growing rapidly with the rising level of education
among the customers.
present scenario to compete with the Broker’s would require sound
infrastructure and trading as per international standards. The
concept of business has changed today, this is a service oriented
industry hence the survival would require them to provide the best
possible service to the clients.

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BIBLIOGRAPHY
Economic times
www.onlinetrading.com
www.sharekhan.com
www.icicidirect.com
www.scribd.com
www.indiabulls.com
www.kotakservices.com

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 QUESTIONAIRE
1.do you trade online or not?
Yes
No
2.Which of the following companies are you aware of ?
ICICIDirect.com
Sharekhan.com
Indiabulls
Kotak securities
Religare
Any other
3.In which of the following do you trade online?
Mutual funds
Equity
Initial public offer(IPO)
Commodities
Future& options
4.Through which technology do you trade online?
Web based technology
Aplet based/vm/softaware based technology
5.Do you feel online trading is secure?
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 Yes
No
6.Do you think online trading has helped in growth and
development of Indian stock market?
Yes no
7. which of trading methods do you prefer?
Online offline
8.Do you think online trading is easy and fast way of trading?
Yes no
9.What is your highest education level?
Graduate PG
10TH other
10.What is your stream of education?
Science commerce
Economics other
11.Do you think introduction of online trading has helped in
attracting the new investors thus increasing the trading volumes at
stock market?
Yes no
12.Do you find easy to operate a computer?
Yes no
13. How do you trade?
Phone computer
14.At what timings do you trade?
Office hours non office hours
Free time after market trade
15. you are trading since how many years?

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 More than 10 years
5-10 years
3-5 years
1-3 years
Less than 1year

16. What kind of trading are you into?

Intraday
Delivery
Future&options
17.How often do you trade?
Everyday once//twice a week
Once a month quarterly annually
18. What problems do you face during online trading?
A.
19. What kind of help assistance and in how much time are you
provided with?
A.
20. Any comments/suggestions/recommendations on online trading
companies?
A.

THANK YOU

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