A Project Report on

“DEMAT ACCOUNT & ONLINE TRADING”

A Project Report Submitted In Partial Fulfillment of the Requirements the Degree

of

MASTER OF BUSINESS ADMINISTRATION (FM) 2020-2022

By

HEMANT KUMAR AHIRWAR

( 201145095016 )

Under the supervision of

MS. SHIVIKA BHATNAGAR, TEACHING ASSISTANT ( IEF BU JHANSI )

MR. MAHENDRA SINGH, ASSISTANT MANAGER

INSTITUTE OF BANKING, ECONOMICS & FINANCE

BUNDELKHAND UNIVERSITY JHANSI

( 2020 – 2022 )

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 DECLARATION

I HEMANT KUMAR AHIRWAR hereby declare that the Summer Training Report,
entitled “A Study On Demat Account & Online Trading” submitted to the Institute
of Economic & Finance, Bundelkhand University in partial fulfillment of the
requirements for the award of the Degree of MBA ( FM ) is a record of original training
undergone by me during the period Jul-Aug 2021 under the supervision and guidance of
Ms. Shivika Bhatnagar, Institute of Economic & Finance, Bundelkhand University and
it has not formed the basis for the award of any Degree/Fellowship or other similar title
to any candidate of any University.

I also declare that this project report is my own preparation and not copied from
anywhere else.

Place: Jhansi Signature of the Student

Date: Hemant Kumar Ahirwar
MBA ( FM )
Institute Of Banking, Economics and Finance
Bundelkhand University, Jhansi

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 INSTITUTE OF BANKING, ECONOMICS & FINANCE

BUNDELKHAND UNIVERSITY JHANSI

CERTIFICATE

This is to certify that the Summer Training Report entitled “A Study On Demat
Account & Online Trading” in partial fulfillment of the requirement for the award of
the Degree of Master Of Business Administration (FM) is a record of original training
undergone by Hemant Kumar Ahirwar (201145095016) during the year 2020-2021 of
his study in the Institute Of Banking, Economics & Finance Bundelkhand
University, under my supervision and the report has not formed the basis for the award
of any Degree/Fellowship or other similar title to any candidate of the University.

Place: Jhansi Signature of the guide

Date: Ms. Shivika Bhatnagar

Institute Of Banking, Economics and Finance

Bundelkhand University, Jhansi

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 ACKNOWLEDGEMENT

Behind every study their stands a myriad of people whose help and contribution make it
successful.

Firstly, I would hereby like to offer my sincere thanks to my project guide , MS

SHIVIKA BHATNAGAR of Institute of Economics & Finance , Bundelkhand
university Jhansi, who helped me as a torch bearer, a friend and guide during my entire
project duration. I Would hereby like to offer my sincere thanks to Mr. Mahendra
Singh, Assistant Manager. I would also like to thanks Dr. C.B. SINGH (H.O.D) who
provided me an opportunity to work in Dissertation Project.

I deem it to be my proud privilege to work under the talented and inspiring guidance
of MS SHIVIKA BHATNAGAR express my deepest sense of gratitude not only for
solving the problem but also for showing keen interest during the course of
investigations without his untiring help present work never have been possible.

Hemant Kumar Ahirwar

MBA ( FM ) 2nd Year

Roll no- 201145095016

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 CONTENTS

CHAPTER NO. PARTICULARS PAGE NO.

Declaration
Certificate
Company certificate

Acknowledgement

CHAPTER - 1 Introduction
CHAPTER - 2 Company Profile
 Objectives of the study
CHAPTER - 3  Demat Account
 Dematerialization
 Depository and depository
participants

CHAPTER - 4 Online Trading

CHAPTER - 5 Research Methodology
CHAPTER - 6 Data Analysis and Interpretation
CHAPTER – 7 Findings
CHAPTER - 8 Conclusion
CHAPTER - 9 Suggestions & Recommendatuons
CHAPTER – 10 Limitations of the study
CHAPTER – 11 Reference
CHAPTER – 12 Annexure

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 CHAPTER - 1

INTRODUCTION OF DEMAT ACCOUNT & ONLINE TRADING

A Demat Account is an account that allows investors to hold their shares in an electronic
form. The abbreviation of a Demat Account is Dematerialisation Account. To open a
free Demat account online, you need to upload few documents. A Demat account
number is compulsory to enable electronic settlements of all the trades.

Online trading involves the trading of securities through an online platform. Online

trading portals facilitate the trading of various financial instruments such as
equities, mutual funds, and commodities. Angel One offers Angel Speed Pro – an
online trading platform that helps investors and traders to buy/sell stocks and other
financial instruments.

To begin trading online you need to open an online trading account with an
online broking firm. Reliance offers reliable Demat and trading accounts services
with low maintenance cost and affordable brokerage. It is essential to choose a
broker who is a registered member of all the stock exchanges and is certified by
the SEBI

Reliance Securities Limited is a broking arm of Reliance Capital. It is one of India’s

largest retail broking houses with over 1 million customers and a pan-India presence at
more than 1,700 locations. The company is a corporate member of both the Bombay
Stock Exchange (BSE) and the National Stock Exchange (NSE), and provides access
to equities, derivatives, IPO's, mutual funds, bonds and corporate FDs.

Reliance Securities offers secure online trading platforms & investment

activities in a cost effective and convenient manner. To enable wider
participation, it also provide the convenience of trading offline through variety
of means including live Chat, Call and Trade, Branch Dealing Desks and
network of affiliates.

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 CHAPTER - 2

COMPANY PROFILE

Reliance Securities Limited is a broking arm of Reliance Capital. It is one of India’s

largest retail broking houses with over 1 million customers and a pan-India presence at
more than 1,700 locations. The company is a corporate member of both the Bombay
Stock Exchange (BSE) and the National Stock Exchange (NSE), and provides access
to equities, derivatives, IPO's, mutual funds, bonds and corporate FDs.

Reliance Securities, the broking & distribution arm of Reliance Capital, is one
of the India’s leading retail broking houses, providing customers with access to
equities, derivatives, currency, IPOs, mutual funds, bonds, and corporate FDs
amongst others. The large array of financial offerings helps customers fulfilling
their investment objectives on one platform.

OUR OFFERINGS

Reliance Securities offers secure online trading platforms & investment

activities in a cost effective and convenient manner. To enable wider
participation, it also provide the convenience of trading offline through variety
of means including live Chat, Call and Trade, Branch Dealing Desks and
network of affiliates.

Focus on timely & error-free execution represents its core strength. Our best in
class research offerings, high degree of compliance with stock exchange
regulations, ethical business standards, & strong risk management capabilities.
Reliance Securities positions itself amongst strong & innovative brands in the
financial services space.

Reliance Securities intends to change the way people transact in financial

markets and avail financial services

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 OTHER INVESTMENT SOLUTIONS

We also offer a range of financial products, facilitated with an array of financial

planning tools, so that you can invest as per your risk appetite.

MUTUAL FUNDS

BONDS & FDS

INSURANCE

RETIREMENT SOLUTIONS

STRUCTURED PRODUCTS

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Type Private

Founded 17 June 2005

Headquarters Reliance Centre, Santa Cruz (East), Mumbai

, 

India

Area served India

Key people Lav Chaturvedi

Chief Executive Officer

Products Equity Broking

Number of employees 900

Website www.reliancesmartmoney.com

OBJECTIVE OF THE STUDY

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 To study the concept of online trading.
 To know the procedure of opening DEMAT ACCOUNT.
 To know that how many people in the city are aware of the RELIANCE
SECURITIES LTD.
 To know where people have already opened their demat a/c and on what basis.
 To study the present online trading scenario in India.
 To study the challenges in online trading in India.
 To study the SWOT analyses of online trading in India.

CHAPTER – 3

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 3.1 DEMAT ACCOUNT

A Demat Account is an account that allows investors to hold their shares in an electronic
form. The abbreviation of a Demat Account is Dematerialisation Account. To open a
free Demat account online, you need to upload few documents. A Demat account
number is compulsory to enable electronic settlements of all the trades.

A Demat account is similar to a bank account, where you hold your money and
respective transaction entries are done in the bank’s passbook. Similarly, securities are
held in electronic form and are debited or credited accordingly from a Demat Account.
A Demat account can be opened with zero balance of shares.

How Demat Account Works in India?

NSDL operates under NSE and CDSL operates under BSE. A depository is similar to a
bank where securities are held in an electronic form.

When investors buy shares, their respective broker credits them from the investor’s
account accordingly and an investor can view their holdings online or in the holding
statement.

When an investor needs to sell shares, he/she needs to give a delivery instruction note in
which details of shares sold are filled, to their respective broker. The account is debited
and the investor is paid for the shares being sold. In the case of online trading, the
account will spontaneously reflect the stocks sold and the amount credited to the
account.

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 3.2 PROCEDURE FOR OPENING A DEMAT ACCOUNT

Here are the steps for opening a demat account with reliancesmartmoney.com:

1. Choose an intermediary
You may choose a bank, a brokerage, or any other financial institution as your
intermediary. An intermediary works as a middle-man between the stock exchange and
the investor. You can start your online account opening procedure by filling up an
account opening form with reliancesmartmoney.com.
2. Documents required to open a demat account
Along with your account application form, you need to enclose documents for identity
and address proof.
List of mandatory documents to open a KYC account online with
reliancesmartmoney.com are:
o Identity Proof
o Address Proof
o Income Proof
o A cancelled cheque for account linking
o Pan Card
o Passport size photographs

3. Demat account Charges

Charges (
Particulars
Rs.)

Annual Maintenance Charges (AMC) levied on monthly basis

Individual / HUFs/ Trust

Accounts activated prior to September 01, 2015 300/- p.a.

Accounts activated on or after September 01, 2015 400/- p.a.
NRI / Foreign Nationals Nil
Corporate / Non-Individuals 1000/- p.a.

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Lifetime Free AMC 2500/-

Basic Services Demat Account (BSDA)

Holding value at any date up to Rs. 50,000/- Nil

Holding value at any date between Rs. 50,001/- to Rs. 200,000/- 100/- p.a.

Lifetime free DP AMC: Pay refundable deposit amount of Rs 2,500/- to avail existing

AMC debit balance waiver in demat account along with no monthly DP AMC charges
for lifetime.
4. Contract
Next, you should sign an agreement with your intermediary that includes details on the
rights and duties of the investor and the intermediary. You will receive a copy of this
agreement and details of charges, for future reference. It is wise to check the document
carefully before signing it.
5. Demat account number
After completing all the steps above, your bank/ brokerage firm (intermediary) will open
your demat account. They will then provide you with your demat account number, also
known as beneficial owner identification number (BO ID). This will complete your
account opening procedure.
After opening your demat account, you may start trading in equities. Investing in
equities can provide good long-term returns on your investments. Additionally, you can
be more well-versed and #makeasmartmove with the investment choices by using the
research provided on reliancesmartmoney.com.

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 3.3 BENEFITS OF DEMAT ACCOUNT

 Easy Accessible Trades

A convenient way to hold securities where you can easily access (buy/sell) information
anytime, anywhere through net banking via computer, smartphone or any other smart
device. The USP here stands that a single Demat account can hold both equity and debt
investments.

 Less Paperwork

A Demat account is much secure and safer than paper- shares and also reduces
paperwork for the transfer of securities. Also, the risks associated with physical
documents such as delays, theft or face securities can all be avoided.

 Easy and Instant Transactions

Demat accounts reduce the time-consuming process of receiving dividends, interests or

funds, something which is all auto-credited into the account. Be it stock splits, bonus
issues or public issues, it’s all very convenient to update the investor’s account.

 Safe and Secure

Transfer of securities is done by DP (Depository Participant), eliminating the need to

notify companies. Facilitates automatic credit into De-mat account for shares arising out
of bonus/split, consolidation/merger, etc. A specific type or quantity of share can be
frozen by the account holder which can stop the inflow or outflow of the money for a
specific period of time as per the holder’s requirement.

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 3.4 FEATURES OF DEMAT ACCOUNT

 Online Trading is convenient

You can easily trade through multiple platforms: Web, mobile and Call & Trade service.

 Investors can track their investments anytime

Trades are easily accessible; investors can buy and sell securities at any time and
anywhere

 Investors are able to review all of their options instead of depending on a

broker

All the facts and methods to follow a task are stated online and in some simple and user-
friendly ways.

 Faster and Secure Transactions

A point where physical transfers would take one month or so which has become
simplified with a cost-effective method as there are no more stamp duties on transfer of
securities.

 Hassle-free trading experience

You can easily trade through multiple platforms: Web, mobile and Call & Trade service
that lets you have hassle-free and convenient handling.

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 3.5 DEMATERIALISATION AND IT’S PROCESS

The capital market in India has been growing rapidly. The latest statistics also show that
Individual investors make up around 45% to 39% of the total volumes of the Indian
equity markets. The rapid increase of digital technologies has transformed the entire
trading system of the country. New people are joining the league and people from
different places can invest in a large number of products owing to The Securities and
Exchange Board of India which introduced the electronic book-keeping of shares.

Dematerialization Process
Dematerialization is the process of converting your physical shares into electronic form.
This consists of four primary parties: depository, issuer, beneficial owner and depository
participant.
There are two depositories in India — National Securities Depository Limited and
Central Securities Depository Limited. The issuer is the company that floats the shares
whereas the depository participant is a SEBI-registered entity that acts as an
intermediary between the investor and the depository. Investors avail depository services
only through depository agents.

However, there are some rules to get the shares dematerialized:

1. In the process of dematerialization, a company revises its Article of Association

through a special resolution in the general meeting, allowing it to issue shares in
electronic form.
2. Private companies, then, have to register with both NSDL and CDSL. The
depositories have their own set of criteria for registration and the issuer has to
comply with them.

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 3. Post-registration, the depositories provide a unique ISIN for each of the shares.
An ISIN is a 12-digit code, used to identify different securities such as shares,
bonds, etc.
4. The companies get access to depository services only through an intermediary. If
the issuer wants to transfer the dematerialized shares, it has to arrange for Demat
connectivity from depositories.

3.6 Benefits of Dematerialization

 Safety: Dematerialization eliminated the chances of shares being lost, forged or

misplaced, increasing the safety of the holding. They are stored in secure
depositories, which has made theft a thing of the past.
 Convenience: Dematerialization of shares gave a substantial boost to investor
convenience. With a Demat account,shares can be easily transferred within a
couple of days to transfer ownership.
 Cost-efficiency: Electronic trading doesn’t require cumbersome paperwork
which reduces a lot of expenses.
 Flexibility: Dematerialization led to increased flexibility and therefore improved
access for small investors. Now, one can buy/sell even a single share without any
restriction on the numbers.

What is Rematerialization?
Rematerialization is the process of reconverting electronic shares to physical certificates.
You can opt to rematerialise your shares anytime you want which is done within 30
days. However, rematerialized shares are illiquid as they cannot be traded.
Difference between Dematerialization and Re-materialization

 Dematerialized shares have unique ISINs while rematerialized shares have

distinct numbers.
 Dematerialized transactions take place electronically, but re-materialized shares
are traded physically. As per the latest SEBI norms, rematerialized shares cannot
be traded.
 Dematerialized shares are maintained by depositories, while rematerialized
shares are maintained by respective companies.

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  Since electronic shares are stored in secure depositories, investors need to pay
the maintenance charges with annual fees ranging in between Rs. 500-1000.
Rematerialized shares are stored by individual investors which do not levy any
maintenance charges.
 The most significant difference between dematerialization and re-
materialization is the safety of the securities. The threat of theft is lower in
dematerialized shares, while it is easier to forge/steal physical certificates.

How does the Dematerialization and Re-materialization of Securities happen?

The process of Dematerialization and Re-materialization is:

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 Dematerialization:

 To initiate the process of dematerialization, you need to open a demat

account through a depository participant.
 Fill a dematerialization request form and submit it to the depository participant
with the physical certificates. Mention ‘Surrendered for Dematerialization’ on all
the security certificates.
 After submission of the form and certificates, the DP verifies the details and
forwards the form to the company and the registrars through the depository.
 Post-approval, the physical certificates are destroyed and the exact amount of
electronic shares are credited to the Demat account.
 The shares are credited in the Demat account of the investor after receiving
confirmation from the depository.
 The entire process takes 15-30 days.

However, if you have dematerialized shares and want to convert them back to physical
shares, you have to go through re-materialization.

Rematerialization:

 Fill a Remat request form and submit it to the depository participant.

 On receiving the form, the DP verifies the details and if everything is in order,
they issue an acknowledgement slip with stamp and sign.
 Post-verification of details, the DP intimates the depository about the re-
materialization request. The DP enters the request in software and a Re-
materialization request Number is generated.
 The depository forwards the request with the documents to the registrar of the
company.
 The registrar, then, verifies all the details. In case of any discrepancies, the
registrar will demand its rectification and forward the request to the DP.
 If all the details are found correct, the registrar informs the depository and
proceeds to print the certificates.

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  The registrar sends the physical certificates to the client. Post-conversion, the
shares are allotted distinct numbers by the registrar.
 The depository on receiving the confirmation, informs the DP who then notifies
the investor and updates the account. The entire process takes 30 days.

3.7 REASONS FOR DEMATERIALISATION REQUEST REJECTION

1. Lost certificates: The physical share certificates are not received by the depository or
have been reported lost or stolen in the past.

2. Discrepancy in the number of shares: The number of shares mentioned on the

demat form does not match the true number of shares.

3. Forged share certificate: The forms are not authentic and have either been forged or
are outright fakes.

4. Incorrect Details: Address mismatch or discrepancies in KYC documents as

mentioned on the demat form.

5. Physical Signature mismatch: The signature on the demat form does not match the
signature on the file.

6. Inconsistent ISIN (International Securities Identification Number): There is a

mismatch in the ISIN mentioned on the form and the ISIN number assigned to the
holding company. 

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 3.8 HOW TO AVOID DEMAT ACCOUNT REJECTION ?

1. Prove DRF: Make sure you substantiate your DRF (Demat Request Form) with a
physical certificate. You should ideally receive a certificate with every unique DRF.

2. Check Name: Most name mismatches occur when physical forms are carried forward
from one generation to the next. Make sure to check the name on the certificate, and if
there is a mismatch, submit a legal affidavit confirming the new name on the certificates.

3. Mismatch Signatures: Signatures that don’t match with the specimen signature are a
common reason for rejection. Make sure you verify the signature on the demat form.
This is  especially true if you are signing after a long time. Any major discrepancies in
signature will need to be authorised before a magistrate. The process is tedious and
requires considerable time, and is therefore best avoided.

4. Check ISIN Number: Confirm your ISIN number with the RTA (transfer registrar).
If there is a mismatch, your dematerialisation request form is sure to get rejected. If that
does not help, check with the respective holding company to ensure that multiple ISINs
were not issued. 

5. Double Check KYC Docs: Double check all your KYC documents to make sure they
match the information on your form. Items like permanent address, father’s name, first
and last name order, and others.

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 3.9 WHAT IS DEPOSITORY AND DEPOSITORY PARTICIPANT

The term depository refers to a facility in which something is deposited for storage or
safeguarding or an institution that accepts currency deposits from customers such as
a bank or a savings association. A depository can be an organization, bank, or
institution that holds securities and assists in the trading of securities. A depository
provides security and liquidity in the market, uses money deposited for safekeeping to
lend to others, invests in other securities, and offers a funds transfer system. A
depository must return the deposit in the same condition upon request.

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 3.10 Functions of a Depository
 

1. Serves as a link between public companies and investors/shareholders

A depository functions as a connecting link between the public companies that issue
financial securities, and the investors or shareholders. The securities are issued by agents
associated with depositories, who are known as depository participants. The agents are
responsible for transferring the securities from the depositories to the investors. A
depository participant can be a bank, an institution, or a brokerage.
 

2. Eliminates risk related to owning physical financial securities

A depository allows traders and investors to hold securities in dematerialized form; thus,
eliminating the risk related to holding physical financial securities. The buyers and
sellers now do not need to check whether the securities have been transferred
successfully without any loss or theft. The depository system reduces such risks by
allowing the securities to be held and transferred in electronic form.
 

3. Allows the provision of loans of mortgages to interested parties

A depository holds the securities of customers and gives them back when the customers
want. The customers receive interest on the deposits, while the depository earns even
more interest by lending the deposits to other people or businesses in the form of loans
or mortgages.
 

4. Reduced paperwork and accelerates the process of transferring securities

When a trade occurs, a depository transfers the ownership of securities from the account
of one investor to another. It helps in reducing the paperwork associated with the
finalization of a trade and accelerates the process of transfer of securities.
 

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 3.11 Types of Depository Institutions :

The following are the three main categories of depository institutions:

1. Commercial Banks

Commercial banks are for-profit organizations and generally owned by private investors.
The range of services offered by commercial banks depends on the size of the banks. For
example, the services offered by the smaller banks are limited to consumer banking,
small mortgages and loans, simple deposits, banking for small-business, and other
services. The market range is also limited in the case of smaller banks.
On the contrary, larger banks and global banks offer a wide range of services such as
foreign exchange-related services, money management, and investment banking. Some
larger and global banks may also offer services for other banks and large organizations.
The services offered by the large banks is the most diverse among all depository
institutions.
 

2. Credit Unions

Credit unions are financial cooperatives implying that these depository institutions are
owned by members of a particular group. The profits earned are either paid to the
members as dividends or reinvested into the organization. The members of the credit
unions are the ones that own accounts in the institution; hence, the depositors are also
partial owners and receive dividends.
Since credit unions are non-profit institutions, they pay no federal or state tax. Hence,
the interest rate charged by credit unions on loans is lower, and they pay a higher interest
rate on deposits.

3. Savings Institutions

The banks serving a local community and loan institutions are called savings
institutions. The local residents deposit money in the banks, and their money is offered

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back in the form of mortgages, consumer loans, credit cards, and loans for small
businesses.
Savings institutions can sometimes be set up as corporations or as financial cooperatives
allowing the depositors to get an ownership share in the organization.

3.12 DEPOSITORY PARTICIPANTS

Depository Participant (‘DP’) is the agent or the registered stockbroker of a depository.

A depository is an institution or organisation which holds the securities of an investor
through the depository participant and also provides services in relation to these
securities. It holds the securities of the investors in the form of shares, debentures,
Government securities, bonds, mutual fund units, etc. in an electronic form. It acts as a
link between the companies which issue shares and its shareholders.

A person cannot contact the depository directly. Through the DP, a person can open and
maintain a Demat account. They are the link between the depository and the investors.
An agreement between the DP and the depository regulates their relationship.
Depositories Act, 1996 defines a DP as a person registered under Section 12 of the
Securities Exchange Board of India (‘SEBI’) Act, 1992. Section 12 of the SEBI Act
states that no DP shall buy, sell or deal in securities unless registered with SEBI.

Types of Depository Participants in India

There are two types of Depositories in India. Thus, a DP may be operating under any
one of the two depository institutions. The two depository institutions are-

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  National Securities Depository Limited (NSDL)

The National Securities Depository Limited (NSDL) is promoted by the National Stock
Exchange, Unit Trust of India and Industrial Development Bank of India among others.
The activities of NSDL are carried out through service providers such as the DP, Share
Transfer Agents and Clearing Corporations of Stock Exchanges. DP’s are known as the
business partners in NSDL.

The DP’s need to register with NSDL to be able to provide services to the investors and
the clearing members. The depository services provided by NSDL are accessible to the
investors through the DP registered with them. The investors need to open a depository
account with the DP to avail the depository services such as trading account
maintenance, dematerialisation, rematerialisation of securities, etc.

 Central Depository Services (India) Limited (CDSL)

The Central Depository Services Limited (CDSL) is promoted by the Bombay Stock
Exchange, Bank of India and State Bank of India among others. The DP’s registered
under the CDSL help the investors to avail the services provided by the CDSL.

The DP’s of CDSL act as a link between the CDSL and the investors. The investors can
obtain the balances in their accounts recorded and maintained by the CDSL through the
DP’s. The DP’s provide the investors with a statement of their accounts at regular
intervals which gives details of their transactions and securities held by them.

Eligibility Criteria

The Depositories Act, 1996 and SEBI (Depositories & Participants) Regulations, 1996
provide the list of entities who are eligible to become a Depository Participant. The list
of entities that qualify to become a DP is:

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 Public Financial Institutions.

 Scheduled Banks including Foreign Banks approved by the Reserve Bank of

India (RBI).

 State Financial Corporation established under the State Financial Corporations

Act, 1951.

 Institutions engaged in granting financial services, promoted by the entities

mentioned above, jointly or severally.

 Custodian of Securities who is granted Certificate of Registration under the SEBI

Act, 1992.

 Clearing House or Clearing Corporation of a Stock Exchange.

 Stock Broker who is granted Certificate of Registration under the SEBI Act,
1992.

 Non-Banking Financial Company having a net worth of not less than Rs.50 lakh.

 Registrar of Issue and Transfer Agents who have a minimum net worth of Rs.10
crore.

Apart from the above eligibility criteria, the NSDL and CDSL have also added certain
eligibility criteria to be registered as DP under them. The NSDL and CDSL are
empowered to set their own eligibility criteria in their Bye-Laws. They are-

 A Stock Broker must have a minimum net worth of Rs.3 crores to be registered
under NSDL and a minimum net worth of Rs.2 crores to be registered under
CDSL.

 A Stock Broker having a net worth of Rs.1 crore may be admitted as DP under
the category ‘Limited Depository Participant’ in CDSL, subject to the condition
that they will increase their net worth to Rs.2 crores.

 The applicant for DP under NSDL should not be convicted for misappropriation
of funds and securities, embezzlement of funds, fraudulent conversion, theft or
forgery in any of the five years preceding the filing of the application.

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 The applicant for DP under NSDL should not be barred, expelled or suspended by
SEBI or any stock exchange.

Registration Under NSDL

The procedure for registration of a DP under the NSDL is as follows:

 An applicant who wishes to be registered as a DP with NSDL should submit an

application in Form E along with the necessary documents mentioned below

 Board Resolution authorising the applicant to become a Participant and

Networth Certificate.

 Information about the applicant in Form A.

 Additional information required by SEBI.

 If the applicant and subsidiaries of the applicant are registered as members

of a stock exchange or CDSL as a Participant, then status report issued by
the stock exchange or CDSL.

 Business History of the applicant such as background and details of the

experience of promoters and directors, core business areas, applicant’s
background and track record in the prescribed format.

 Payment of application fee and entry fee.

 The application will be produced before the Member Committee of NSDL for
approval. Upon approval, the application will be forwarded to SEBI for grant
of registration as DP of NSDL.

 The applicant will have to install the necessary infrastructure, hardware and
software after receiving the approval of the Member Committee of NSDL.
The NSDL will conduct a pre-activation on-site inspection of the installations
by the applicant.

~ 29 ~
  On completion of the inspection by NSDL, the applicant will be activated as a
Participant in a pilot environment for testing purposes.

 On receiving the approval from SEBI and after the prescribed fees paid to
SEBI and NSDL, the applicant needs to enter into an agreement with NSDL
as a DP of NSDL. After entering into the agreement, the applicant will be
made operational in the NSDL system as a Participant.

Registration Under CDSL

The procedure for registration of a DP under the CDSL is as follows:

 An applicant who wishes to be registered as a DP under CDSL should submit an

application in Form E accompanied with the following annexures:

 List of directors and last three years shareholding pattern of the applicant.

 Brief Profile of the applicant, such as the history and activities of the
applicant.

 List of entities in which the director/promoter of the applicant is also

director/promoter.

 Shareholding pattern and list of directors of all groups of

companies/holding or subsidiaries and activities carried out by them.

 Duly notarised copy of Memorandum and Articles of Association. The

object clause of MOA must permit the company to carry out DP activities.

 Certified copy of Board Resolution for joining as DP and Networth

Certificate.

 Certified copy of last three years annual reports and previous year’s
Balance Sheet.

 Experience and background of the key personnel who will handle DP

functions.

~ 30 ~
  Payment of application fee and application processing fees.

 The application will be scrutinised by the CDSL to find out if there is any
requirement for further documentation/information.

 The applicant should procure the computer hardware and establish connectivity
with CDSL. The applicant should also have two trained staff who are NISM
certified or have attended five days of DP training conducted by CDSL.

 On installation of hardware and connectivity, the CDSL will forward the

application to SEBI for approval.

 On receipt of approval from SEBI and payment of registration and annual fees,
the SEBI will grant the Certificate of Registration to an applicant.

 The applicant will then enter into an agreement with CDSL as a DP of CDSL.

 Upon entering into the agreement, a unique DP-ID number is generated by CDSL
for creating the DP account with them.

3.13 Functions of a Depository Participant

 To open accounts of investors.

 Dematerialisation/Demat of securities. The Demat process is converting the

physical certificates of investors into an equivalent number of securities in
electronic form.

 Rematerialisation/Remat of securities. The Remat process is converting securities

held in electronic form in the Demat account back to the form of the physical
certificates.

 Transfer of securities,i.e. changing the beneficial ownership of securities.

 Settlement of trades which are done on the exchange connected to the depository.

 Pledging and Unpledging of securities for a loan against shares.

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 3.14 Policies & Procedures

This Policy and Procedure document of Reliance Securities Limited (RSL) contains
important information on trading in Equities, F&O and Currency Derivative
segment(s) of the Exchange(s) through RSL. All clients should read this document
before trading. Since the dimensions of Securities Trading are dynamic and ever-
changing, Clients are further advised to keep themselves updated with the changing
environment and Regulatory provisions, frame work and environment.

Refusal of orders for penny / ill liquid stocks

 Penny / ill liquid stocks are generally considered to be highly speculative and high risk
bearing because of their lack of liquidity, large bid-ask spread, small capitalization and
limited compliance and disclosure. Hence depending on the market condition and Risk
perception, RSL will identify such stocks as Penny stocks or ill liquid stocks, RSL may
from time to time refuse limit orders in such stocks either based on quantity or value
without any reasons given to the client. RSL does not advice/encourage trading in penny
stocks.

 The penny stock or ill liquid stock would be identified based on, including but not
limited to, following criteria:

a. Ill liquid stock identified by the Stock exchange(s) on periodic basis.

b. Any other stock which RSL considers ill liquid based on its own criteria.

Setting up clients exposure limits

 As a part of sound risk management policy of RSL, the client will not be allowed to
place orders in far month’s contract i.e. any order having expiry cycle of three months
(far away contracts ) in the Derivatives Segment.
 The margin / security deposited by the client with RSL are not eligible for any interest.

Applicable brokerage rates

 RSL is entitled to charge brokerage within the limits imposed by exchanges from time to
time. The brokerage to be charged by RSL shall be exclusive of all statutory levies such

~ 32 ~
 as services Tax, Stamp duty, SEBI turnover fees, Securities Transaction Tax and other
taxes and transaction expenses as they exist from time to time and as they apply to the
account and transactions of the Clients and for the services rendered to the Clients. Any
revision in brokerage will be made only after giving 15 days notice by way of
communication through email.

 In order to provide competitive advantage and scale of economy and operations to the
clients, RSL will provide new / innovative and economical Brokerage Rate Structure as
mentioned / made available on the Website / portal of RSL and as may be mutually
agreed and modified from time to time. It shall however be ensured that the Brokerage
shall not exceed maximum permissible under the applicable regulations.

Imposition of penalty / Delayed payment charges

 The client agrees that any amounts which are overdue from the client towards trading or
on account of any other reason (including shortfall in margin requirement or margin
provided in form of collateral in lieu of cash margin) to RSL will be charged with
delayed payment charges / penalty at such rates as may be determined by RSL. Further
where RSL has to pay any fine or bear any punishment from any authority in connection
with / as a consequence of / in relation to any of the orders / trades / deals / actions of the
client, the same shall be borne by the client. The client agrees to pay to RSL brokerage, ,
all taxes, duties levies imposed by regulatory authorities, transaction expenses,
incidental expenses such as postage, courier etc. as they apply from time to time to the
client's account / transactions / services that the client avails from RSL.

 The penalty / delayed payment charges imposed by RSL shall be debited to the account/
ledger of the clients. Any change / revision in the scale of penalty / delayed payment
charges will be informed to the clients through email. If RSL has to pay fine/bear any
penalty levied by any authority in connection with /as consequence of any
orders/trades/deals/actions of client, the same shall be recovered from the client. In
Derivatives segment, DPC will be levied from T+1 day on the ledger debits. DPC on
non-cash margin will be levied from T day onwards. In Cash segment, DPC will be
levied from T+2 day onwards.

~ 33 ~
 Right to sell client’s securities or close client’s positions without giving notice to the
client, on account of non-payment of client’s dues
 RSL has margin based RMS system; client may take exposure up to the amount of
margin available with us and/or collaterals pledged with us. Client may not be allowed
to take position in case of nonavailability / shortage of margin as per RMS policy of
RSL. The existing position of the client and/or shares pledged with us as collateral are
also liable to be squared off / closed out without giving notice due to shortage of
margin / non making of payment for their pay in obligation / outstanding debts. RSL will
have the right to close out all open positions and/ or sell client's securities and/or shares
pledged with us as collateral, without any notice to clients, as and when the client
defaults in his settlement/sale delivery/margin/MTM obligations in any segment of the
exchanges. The close out/selling will be only to extent of shortages in Margins, MTM or
settlement obligations on all segments of exchange

Conditions under which a client may not be allowed to take further position or the
broker may close existing position of a client
 In the event where overall position in any scrip /derivative contract has reached the limit
prescribed by regulators/exchanges.

 RSL has the right to stop/block the client to trade in case there is a debit balance in
his/her account.

 RSL may disallow the client to take a position in certain scrips if instructed by the Risk
Management department.

 Reasonable doubt as to the transaction being cross trade, circular trade, fraud, price
manipulation or market rigging.

Temporarily suspending or closing a client's account at the client's request

 On the written request of the client, the client account can be suspended temporarily and
can be reactivated on the written request of the client only. During suspension period,

~ 34 ~
 the market transaction will be prohibited. However client's pending settlement can take
place. RSL can withhold the payouts of client and suspend his trading account due to
surveillance action or judicial or / and regulatory order/action requiring client
suspension.

 On the written request of the client, the client account can be closed provided the client
adheres to formalities for account closure including settlement of all dues in the account
and closing of all open position. If the client wishes to again open a broking account
then the client shall have to complete the KYC and account opening formalities once
again.

Deregistering a client

RSL may terminate the Stock broker client documents/Rights and Obligations in
addition to termination clause in documents/Rights and Obligations in any of the
following circumstances:

 If the action of the Client are prima facie illegal / improper or such as to manipulate the
price of any securities or disturb the normal / proper functioning of the market, either
alone or in conjunction with others. If there is any commencement of a legal process
against the Client under any law in force;

 If the Client has found to be of unsound mind or of other disability by a competent

authority and the findings is in force.

 If the Client has been convicted by a Court of any offence involving moral turpitude

 On the death of the Client.

 If a receiver, administrator or liquidator has been appointed or allowed to be appointed

for the Client. f. If the client being declared a defaulter by any of the regulatory bodies
of the country or under any law being in force or In the event RSL becoming aware of
any proceedings being initiated against the client by any of the regulatory bodies of the
country or under any law being in force or the client being involved in any criminal

~ 35 ~
 proceedings or any illegal business or the member becoming aware of the client's past
offences which are illegal or prohibited by the regulatory bodies of the country or under
any law being in force.

 On the specific written directions of any statutory/legal authority/Regulatory Authority.

 If the Client becomes un-discharged insolvent or applies to be adjudicated as an

insolvent

 If the Client being a partnership firm, has any steps taken by the Client and /or its
partners for dissolution of the partnership;
 If the Client have taken or suffered to be taken any action for its reorganization,
liquidation or dissolution;

 If the Client has made any material misrepresentation of facts, including (without
limitation) in relation to the Security; If there is reasonable apprehension that the Client
is unable to pay its debts or the Client has admitted its inability to pay its debts, as they
become payable

Policy for Dormant Accounts

 A Trading Account (irrespective whether having debit or credit balance) shall be

classified as dormant account in case there are no transactions ( trading and/ or fund
receipts) for a period in excess of 12 (Twelve) calendar months from the last transaction
date. The Dormant Accounts shall be frozen for further transaction(s).

 On classification of any account as dormant accounts as stated above, RSL will inform
the client through either direct phone or e-mail or letter to the contact details/address last
available with RSL within seven days of such classification. A dormant account can be
re-activated on receipt of a request for reactivation along with valid proof of identity.
RSL will reactivate the dormant account after proper verification of the same. RSL shall
levy a charge of Rs. 100/- for such reactivation. The balances lying in the dormant
account shall be returned to the client at the time of the calendar quarterly/monthly
settlement.

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 CHAPTER – 4

4.1 WHAT IS ONLINE TRADING

Online trading involves the trading of securities through an online platform. Online

trading portals facilitate the trading of various financial instruments such as
equities, mutual funds, and commodities. Angel One offers Angel Speed Pro – an
online trading platform that helps investors and traders to buy/sell stocks and other
financial instruments.

How to Trade Online

To begin trading online you need to open an online trading account with an
online broking firm. Reliance offers reliable Demat and trading accounts services
with low maintenance cost and affordable brokerage. It is essential to choose a
broker who is a registered member of all the stock exchanges and is certified by
the SEBI

4.2 Benefits of online trading:

 It eliminates the middleman:

You can buy and sell without even speaking to your broker. This makes online trading
alluring for someone who does not have the finances to work with full-service brokers.

 It’s cheaper and faster: When a broker executes your trades, it costs you more money.
On the other hand, when you trade online, a brokerage charge is levied but it is always
less than what a traditional broker who has to place a trade physically, would charge
you. Online trading is almost instantaneous.

 It offers greater investor control: One of the most important advantages of online

trading is that it gives you greater control over your investments. You can trade
whenever you want with online trading during the trading hours and you can also take
your own decision without any interference from the broker.

~ 37 ~
 You can monitor your investments in real time: Your online trading platform has a lot
of advanced tools and interfaces to monitor your investing performance and to do your
own research. You can see real time gains or losses whenever you login from your
phone or computer.

4.3 How does online trading work?

When you buy or sell a stock through online trading, you order gets executed within
seconds. But, within these seconds lots of operations take place which you are
unaware, such as:

 Your order is registered.

 Your order is placed in a database

 It searches for a for a seller and when both buyer and seller is matched, a confirmation
message is sent to both the parties.

 The order and the price are reported to the regulatory bodies. These regulatory bodies
look over all the trading activities and are displayed to all the investors.

 Your trading records are stored in case regulators want to study your past transactions.

 A contract is sent to your broker who sold the shares and the broker who bought them.

 After all this, the brokers have 3 days to exchange the cash and shares which is called
settlement.

 After this process, the money or the shares are officially in your account.

~ 38 ~
 4.4 What Is the Stock Market?

A stock exchange is a marketplace where securities, such as stocks and bonds, are

bought and sold. Bonds are typically traded Over-the-Counter (OTC), but some
corporate bonds can be traded on stock exchanges. Stock exchanges allow companies to
raise capital and investors to make informed decisions using real-time price information.
Exchanges can be a physical location or an electronic trading platform. Though people
are typically familiar with the image of the trading floor, many exchanges now use
electronic trading.

NSE introduction

The NSE or National Stock Exchange is the leading stock exchange of India. It is
the fourth largest in the world (based on equity trading volume). Based in Mumbai
and established in 1992, it was the first stock exchange in India to offer a screen-
based system for trading.

The NSE was initially set up with an aim to usher in transparency to the Indian
market system, and it has ended up delivering on its aim quite well. With the help of
the government, the NSE successfully offers services such as trading, clearing as
well as the settlement in debt and equities comprising domestic and international
investors.

BSE introduction

The BSE or the Bombay Stock Exchange is a lot older than its cousin. It was Asia’s
first stock exchange. With a trading speed of 6 microseconds, the BSE is the fastest
stock exchange in the world.
The BSE does have some interesting history. A man named Premchand Roychand
founded the Native Share and Stock Brokers Association in the 19th century. In
those times, it used to function in Dalal Street under a banyan tree - where traders
would gather together to buy and sell stocks. Gradually, the network expanded and
the exchange was established by the name of Bombay Stock Exchange in 1875.

~ 39 ~
 4.5 Securities and Exchange Board of India (Sebi)

SEBI is a statutory regulatory body established on the 12th of April, 1992. It monitors
and regulates the Indian capital and securities market while ensuring to protect the
interests of the investors, formulating regulations and guidelines. The head office of
SEBI is at Bandra Kurla Complex, Mumbai.

Functions of SEBI

 SEBI is primarily set up to protect the interests of investors in the securities

market.

 It promotes the development of the securities market and regulates the business.

 SEBI provides a platform for stockbrokers, sub-brokers, portfolio managers,

investment advisers, share transfer agents, bankers, merchant bankers, trustees of
trust deeds, registrars, underwriters, and other associated people to register and
regulate work.

 It regulates the operations of depositories, participants, custodians of securities,

foreign portfolio investors, and credit rating agencies.

 It prohibits insider trading, i.e. fraudulent and unfair trade practices related to the
securities market.

 It ensures that investors are educated on the intermediaries of securities markets.

 It monitors substantial acquisitions of shares and take-over of companies.

 SEBI takes care of research and development to ensure the securities market is
efficient at all times.

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 CHAPTER – 5

RESEARCH METHODOLOGY

The research methodology defines what the activity of research is, how to proceed,
how to measure progress, and what constitutes success. It provides us an
advancement of wealth of human knowledge, tools of the trade to carry out research,
tools to look at things in life objectively; develops a critical and scientific attitude,
disciplined thinking to observe objectively (scientific deduction and inductive
thinking); skills of research particularly in the ‘age of information’. Also it defines
the way in which the data are collected in a research project. In this paper it presents
one components of the research methodology from a real project; the theoretical
design and framework respectively.

Sources of Data:-

Data, facts ,figures, other relevant material of past and present and surveying are the
basis for study and analysis. Without an analysis of factual data no specific
inferences can be drawn on the questions under study. Inferences based on
imagination or guesses cannot provide correct answer to research questions. The
relevance adequacy and reliability of data determine the quality of the findings of a
study. For the purpose of the present study, data from two sources has been collected,
namely primary data and secondary data.

PRIMARY DATA:

Primary data is source from which the researcher collects the data. It is a first hand
data, which is used directly for the analysis purposes. Primary data always gives a
researcher a fairer picture. In the present study primary data has been collected using
questionnaires. For the purpose of collecting the same, 50 respondents have been
randomly selected. Even the response of the respondents was taken into
consideration. In this study, primary data plays a vital role for analysis,
interpretation, conclusion and suggestions.

SECONDARY DATA:

~ 41 ~
 Secondary data is data which is collected and compiled for other purposes.
Secondary data also plays a key factor in providing more information which will
influence the analysis. Few of the main sources of secondary data include
newspapers, magazines, business journals, internet .

Research Design: Exploratory research design is been taken.

Exploratory research design: Exploratory research is research conducted for a

problem that has not been clearly defined. It often occurs before we know enough to
make conceptual distinctions or posit an exploratory relationship. Exploratory
research helps determine the best research design, data collection method and
selection of subjects.

Sample Area : Agra city is being taken as a sample area for study.

Sample Size : The research made use of primary data, which was collected by the
50 respondents but out of which only 40 has responded to the questions that’s why
the research has been carried on 40 respondents.

Data Collection Instrument: Structured Questionnaire

Sampling Procedure : We have used a Non Probabilistic Sampling Technique that

is, Convenience Sampling.

~ 42 ~
 CHAPTER – 6

DATA ANALYSIS & INTERPRETATION

The data has been analyzed by using the SPSS software. Originally SPSS is an
acronym of Statistical Package for Social Science but now it stands for Statistical
Product & Service Solutions. It is one of the most popular Statistical Package which
can perform highly complex data manipulation & analysis with simple instruction. It
is used for quick analysis of high volume of Social Science data, collected from
different methods of research. SPSS is a computer program that is basically used for
survey, authoring & deployment, data mining, text analytics, statistical analysis &
collaboration. Major functions of SPSS are:

• It summarizes the data.

• It determine, whether there are significant differences between groups or not.

• Inspect the relationships among variables and graph result. We have tried to
establish relationship between two factors i.e. satisfaction level of services provided
by the company and success of Reliance in online trading of stock by using
correlation method of Karl Pearson applying two tailed test with the help of SPSS
Software.

~ 43 ~
 INTERPRETATION:

The analysis was done by performing a two tail test on Pearson correlation. It has
been found that there is high positive correlation of 0.804 at 1% level of significance
between two factors i.e. satisfaction level of services provided by the company and
success of Reliance in online trading of stock.

Q1.Do you know about online trading?

.Do you know about online trading?

90
80
70
60
.Do you know about online trad-
50 ing?
40
30
20
10
0
YES NO

INTERPRETATION: In my study,87% of the respondents are aware about online

trading in stock market

Q 2. Do you have a DMAT Account ?

Do you have a DMAT Account ?

70
60
50
40 Do you have a DMAT Account ?
30
20
10
0
YES NO

~ 44 ~
INTERPRETATION: 60% of respondents do not have demat account.

Q 3. Do you feel safe while trading online?

Do you feel safe while trading online?

60

50

40
Do you feel safe while trading
30 online?

20

10

0
YES NO

INTERPRETATION: 55% of respondents feel safe while trading, whereas others are
not

Q4. In which stock you most trade online?

stock most you trade online

35

30

25

20 Series 1
15

10

0
EQUITY MUTUAL FUND COMMODITIES F&O OTHERS

INTERPRETATION: 28% of respondents invests in Equities, 25% trade in

MutualFunds, 10% trade in Commodities, 5% in F&O Equities and 32% in Others.

Q 5. Do you receive updated online information regarding the stock market

from your dealer/broker?

~ 45 ~
 Do you receive updated online information
70

60

50

40 Do you receive updated online

information
30

20

10

0
YES NO

INTERPRETATION: 62% of respondents receive updated online information.

Q 6. Do you believe that your trader/broker is very successful in online trading?

INTERPRETATION: 40% of respondents are agree that their trader is very

successful in online trading, whereas 15% are strongly agree, 5% are disagree ,10%
are strongly disagree and 30% are moderate views

Q 7.Are the stock broking services provided by Reliance Securities Ltd. Is

INTERPRETATION: 38% of respondents are agree that stock broking services

provided by Sumpoorna is satisfactory, whereas 15% are strongly agree, 7% are
disagree ,10% are strongly disagree and 30% are moderate views.

Q8.What percentage of your annual income do you invest in share market ?

INTERPRETATION: 70% of people invest only upto 10% of their annual income in
share market

~ 46 ~
Q9.No. of years of online trading experience in stocks at this firm?

INTERPRETATION:72% of respondents have experience of Below 5 years and

remaining have experience of 5-10 years.

Q 10. How was your DMAT Account opened ?

INTERPRETATION: 17% of respondents says that their account was opened

through referral clients, 22% through personal acquaintance, 13% through call/walk
in, and 48% through others.

Q 13.Do you feel that there is more transparency in online trading?

INTERPRETATION: 52% of respondents feel that there is transparency in online

trading whereas 48% of respondents feel that there is no transparency.

Q 14. Any other company whose service you like?

INTERPRETATION: Majority of respondents feel that the service of Indian Bulls is

good than other companies including Reliance.

Q 15. AGE

INTERPRETATION: In my research 57% of respondents are between the age group

of 15-30 , 20% are of 31-45 and 23% are of 46-60.

Q 16. Income per month

INTERPRETATION: 45% of respondents have income Below 15000, 10% have

15000-30000, 23% have Above 45000 and 22% have 30000-45000

~ 47 ~
Q 17. Educational Qualification

education qualifications
60
50
40
education qualifications
30
20
10
0
Graduate Post Graduate Other categories

INTERPRETATION: 55% respondents are Post Graduated, 27% are Graduated and
18% are of other categories.

~ 48 ~
 CHAPTER – 7

FINDINGS

 The investment decision of investors is influenced by their own decision and

through friends & relatives.
 Majority of investors invest only upto 10% of their annual income in share
market.
 Reliance Securities Ltd has a great competition with other broking agencies
like Kodak, Angel etc. because they are also using new technologies to retain
customers.
 The number of players is increasing at a steady rate and today there are over a
dozen of brokerage houses who have opted to offer net trading to their
customer and prominent among them are reliance, India bulls, Kotak street,
Karvy.
 Investors perception changes with the fluctuations in share market.
 On applying correlation analysis (using SPSS) on the primary data collected,
it has been found that there exists a positive relationship between the two
factors viz. the satisfaction level of services provided by Reliance and its
success in online trading.

~ 49 ~
 CHAPTER – 8

CONCLUSION

In today’s scenario when all services are going to be online or in electronic form
Reliane securities Ltd. Is creating awareness of online trading so that the client can
trade from anywhere from the World. Reliane securities Ltd. takes care of client
portfolio and whenever the value of his/her portfolio will decrease by 30% then that
client is always informed by his/her relationship Manager. Reliane is a company that
has helped in handling a vast amount of transactions and this can be an efficient
trading, delivering, settlement system with adequate protection to investors. The
introduction of on-line trading would influence the investors resulting in an increase
in the business of the exchange. Due to invention of online trading there has been
greater benefit to the investors as they could sell / buy shares as and when required
and that to with online trading. The broker’s has a greater scope than compared to the
earlier times because of invention of online trading.

~ 50 ~
 CHAPTER – 9

SUGGESTIONS & RECOMMENDATIONS

• Allocation of news in such a way that Reliance Securities Ltd maintain a

consistency level throughout the month.

• Can improve in that areas where service provide by other major competitors is very
strong in this area.

• To increase the awareness level of the company among the public.

• 24*7 customer support can increase its value.

• The company must spread the awareness to its clients for the service like F&O
Equities to increase the satisfaction level of clients as we have find that there is
positive aspect between the satisfaction level of services provided by Reliance
success in online trading.

~ 51 ~
 CHAPTER – 10

LIMITATIONS OF THE STUDY

 It is always a problem to get an enthusiastic response. There were not many

willing participants; lack of cooperation remains an aberration in most of the
survey based researches.
 The respondents’ behavior changes according to stock market fluctuations.
 The study is only restricted to the Agra city.
 Time constraint is also one of the factor

~ 52 ~
 CHAPTER – 11

REFERENCES

WEBSITES :
 www.reliancesmartmoney.com
 www.investopedia.com
 www.bseindia.com
 www.nseindia.com www.moneycontrol.com
 www.wikipedia.org

NEWSPAPER :

 The Times of India

 The Economic Times

~ 53 ~
 CHAPTER - 12

ANNEXURE

Dear respondent, I am a student of MBA, is conducting a research on A Study of

Online Trading in Indian Stock Market”. I would be extremely thankful if you
spare some time to answer the following questions. All the facts disclosed by you
will be used for academic purpose only.

1. Do you know about online trading?

□ Yes □ No

2. Do you have a DMAT Account ?

□ Yes □ No

3. Do you feel safe while trading online?

□ Yes □ No 4. In which stock you most trade online?

□ Equity □ Mutual Funds □ Commodities □ F&O Equities □ Other

5. Do you receive updated online information regarding the stock market from
your dealer/broker?

□Yes □No

6.. Do you believe that your trader/broker is very successful in online trading?

□ Strongly Agree □Agree □Moderate □Disagree □Strongly Disagree

7. Are the stock broking services provided by Reliance is satisfactory ?

□ Strongly Agree □Agree □Moderate □Disagree □Strongly Disagree

8. . What percentage of your annual income do you invest in share market ?

~ 54 ~
□ Up to 10% □ 10-15% □ 15-20% □ More than 20%

9. . No. of years of online trading experience in stocks at this firm?

□ Below 5 years □ 5 to 10

10. How was your DMAT Account opened ?

□ Personal acquaintance □ Referral-Clients □ Call/Walk in □ Others

11.What is your opinion relating to the rate of interest of margin funding facility
of Reliance ?

□ Excellent □Good □ Average □ Poor

12. Are you aware of T+2 method of trading?

□Yes □No

13. Do you feel that there is more transparency in online trading?

14. Any other company whose service you like?

□ Karvy □ Angel Broking □ Indian bulls □ Share khan □ Reliance

15. Name………………………

16. Age

□ 15 to 30 □ 31 to 45 □ 46 to 60 □ above 60

17. Income per month

□ Below 15,000 □ 15000 to 30,000 □ 30,000 to 45,000 □ above 45,000

18. Education qualification

□ Graduation □ Post graduation □ Other

~ 55 ~