“A STUDY ON ONLINE TRADING”

(Portfolio Management)

AT

Submit ed in partial fulfillment of PG M

PGDM Batch 2010-12

Submitted To Su mitted B

Prof. Jagadish Redd Hari Moh n Dwivedi

Reg. No. 6106

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰 󰁐󰁡󰁧󰁥 󰀱
 󲀜 A STUDY ON ONLINE TRADING 󲀝

(Portfolio Management)

AT

Submit ed in partial fulfillment of PG M

PGDM Batch 2010-12

Submitted By

Hari Mohan Dwivedi

Reg. No. 6106

Faculty Guide Director A ademics

Prof. Jagadish Redd Dr. Sabyasachi Rath

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰 󰁐󰁡󰁧󰁥 󰀲
 Declaration

I Hari Mohan Dwivedi, hereby declare that the project titled “Portfolio
Management, A Study On Online Trading“ is an original work carried out
under the guidance of Prof. Jagadish Reddy.

The report submitted is a bonafide work of my own efforts and has not been
submitted to any institute or published before.

Signature of the Student

Hari Mohan Dwivedi

Date

Place

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󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳
 Faculty Guide Certificate

I Prof. Jagadish Reddy certify Mr. Hari Mohan Dwivedi that the work done
and the training undertaken by him is genuine to the best of my Knowledge
and acceptable.

Signature

Date

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀴
 Acknowledgement

I would like to express our gratitude to all those who have gave us the possibility
to complete this project. I am very much thankful to our Director of Vishwa
Vishwani Institute of System & Management, Dr. Sabyasachi Rath, who has
given me this opportunity to be a part of a corporate house for 6 weeks. So have
decided to do my Summer Internship Program in India Infoline. I want to thank
to our Internal Faculty Guide Prof. Jagadish Reddy for showing us the path to
commence this project in the first instance, to do the necessary research work
and to help for using departmental data. He looked closely at the final version of
the project for correction and offered suggestions for Improvement.

Especially, I would like to give our special thanks to our External Faculty Guide
Mr. Sanjay Ojha whose patient love enabled us to complete this work. He has
shown me the real corporate world.

󰁓󰁩󰁧󰁮󰁡󰁴󰁵󰁲󰁥 󰁯󰁦 󰁓󰁴󰁵󰁤󰁥󰁮󰁴

Hari Mohan Dwivedi

󰁄󰁡󰁴󰁥

󰁐󰁬󰁡󰁣󰁥

INDEX

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󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀵
 Chapter No. Content Page
No.

Chapter 1 Introduction 1-18

Online Trading

Chapter 2 Company Profile 19-22

Industry Profile 23-26

Literature Review 27-32

Chapter 3 Research 33-37

Methodology
Chapter 4 Data Collection 38

Analysis & 39-45

Interpretation

Chapter 5 Recommendation 46

Conclusions 47

Bibliography Web site Referred 48

Books Referred

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 Chapter 1

Introduction

Investing in securities such as shares, debentures, and bonds is profitable as

well as exciting. It is indeed rewarding, but involves a great deal of risk and calls
for scientific knowledge as well artistic skill. In such investments both rationale
and emotional responses are involved. Investing in financial securities is now
considered to be one of the best avenues for investing one savings while it is
acknowledged to be one of the best avenues for investing one saving while it is
acknowledged to be one of the most risky avenues of investment.

“It is rare to find investors investing their entire savings in a single security.
Instead, they tend to invest in a group of securities. Such a group of securities is
called portfolio”.

Creation of a portfolio helps to reduce risk, without sacrificing returns. Portfolio

management deals with the analysis of individual securities as well as with the
theory and practice of optimally combining securities into portfolios.

Meaning of online trading

“Change is the law of nature”. There were times when man was a wanderer
or a normal. He himself had to go place to place in search of food, water and now
everything is available at your doorstep just at the click of the mouse. The growth
of information technology has affected almost all sectors of life. Internet has
enabled us to get every information at our doorstep.

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󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀷
When Internet has affected all sectors he could “stock markets” the most
important player of the economy, has remained far behind? An online investor
sitting at home at a personal computer also foregoes proper investment advice
and financial planning, perhaps among the most valuable services provided by

traditional brokers.

Evolution of broking in india:

 Stockbrokers will offer on their sites features such as live portfolio

manager, live quotes, market research and news, etc. to attract more
investors.
 Brokers will offer online broking and relationship management by

providing and offering analysis and information to investors during

broking and non-broking hours based on their profile and needs, i.e.
customized services.
On-line asset allocation, portfolio management, financial planning, tax planning,
insurance services, etc. and enables the investors to take better and well
considered decisions.
The actual definition of “Online Trading” is as explained below:

“Online trading is a service offered on the internet for purchase and sale of
shares. In the real world you place orders on your stockbroker either verbally
(personally or telephonically) or in a written form (fax).” In online trading, you
will access a stockbroker’s website through your internet enabled PC and place
orders through the broker’s internet based trading engine.

Objectives of Online Trading:

Internet trading is expected to

 Increase transparency in the markets,

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󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀸
 Enhance market quality through improved liquidity, by increasing quote
continuity and market depth,
 Reduce settlement risks due to open trades, by elimination of mismatches,
 Provide management information system,
 Investor protection
 Creation of a fair and efficient market, and
 Reduction of the systematic risks.

Some of the brokers offering net trading include ICICI direct, kotakstreet, etc.

Requirements for net trading:

• For investors:
1. Installation of a computer with required specification
2. Installation of a modem
3. Telephone connection
4. Registration for on-line trading with broker
5. A bank account
6. Depository account
7. Compliance with SEBI guidelines for net trading

The following should be produced to get a demat account and online trading
account:
As identity
identity proof & address proof any one of the
the following:
following:
 Voter ID card
 Driving license
 PAN card( in case of to trade more than 50000)
 Ration card
 Bank pass book
 Telephone bill

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󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀹
 • Other requirements, which are necessary
 First page of the bank pass book and last 6 months statement.
 Bank manager’s signature along with bank’s seal, manager registration code
on photograph.

• For stock brokers:

1. Permission from stock exchange for net trading
2. Net worth of Rs. 50 lac
3. Adequate back-up system
4. Secured and reliable software system
5. Adequate, experienced and trained staff
6. Communication of order (trade confirmation to investor by e-mail)
7. Use of authentication technologies
8. Issue of contract notes within 24 hours of the trade execution
9. Setting up a website.
The user should have the user id and password to enter into the
electronic ring. He should also have demat account and bank account. The
system permits only a registered client to log in using user id and password.
Order can be placed using place order window of the website.

• Procedure for net trading

Step 1: Those investors, who are interested in doing the trading over internet
system i.e. NEAT-IXS, should approach the brokers and get them self registered
with the Stock Broker.

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󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀱󰀰
Step 2: After registration, the broker will provide to them a Login name,
Password and personal identification number (PIN).

Step 3: Actual placement of an order. An order can then be placed by using the
place order window as under:

(a) First by entering the symbol and series of stock and other parameters like
quantity and price of the scrip on the place order window.

(b) Second, fill in the symbol, series and the default quantity.

Step 4: It is the process of review. Thus, the investor has to review the order
placed by clicking the review option. He may also re-set to clear the values.

Step 5: After the review has been satisfactory, the order has to be sent by
clicking on the send option.

Step 6: The investor will receive an "Order Confirmation" message along with
The order number and the value of the order.

Step 7: In case the order is rejected by the Broker or the Stock Exchange for

certain reasons such as invalid price limit, an appropriate message will appear at
the bottom of the screen. At present, a time lag of about 10 seconds is there in
executing the trade.

Step 8: It is regarding charging payment, for which there are different mode.
Some brokers will take some advance payment from the investor and will fix
their trading limits. When the trade is executed, the broker will ask the investor
for transfer of funds to his account.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀱󰀱
The time gap has narrowed in every stage of operation. Confirmation and
execution of trade reaches the investor within the least possible time, mostly
within 30 seconds. Instant feedback is available about the execution.

Step by step procedure in online trading:

Following steps explain the step by step approach to on-line trading:

 Log on to the stock broker's website

 Register as client/investor
 Fill the application form and client broker agreement form on the requisite
value stamp paper
 Obtain user ID and pass word
 Log on to the broker's site using secure user ID and password
 Market watch page will show real time on-line market data
 Trade shares directly by entering the symbol or number of the security
 Brokers server will check your limit in the on-line account and demat account
for the number of shares and execute the trade
 Order is executed instantly (10-30 seconds) and confirmation can be obtained.
 Confirmation is e-mailed to investor by broker
 Contract note is printed and mailed in 24 hours
 Settlement will take place automatically on the settlement day
 Demat account and the bank account will get debited and credited by
electronic means.

Concept of share trading

The concept of share broking emerged after the establishment of the joint stock
companies. The ownership of the companies was divided into small parts and

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
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that every part was called share. So, the term “Share” denominates some part in
the ownership of the company. The shares are freely transferable subject to the
some certain restrictions.
The whole process of finding the buyers and sellers of the securities by the

brokers is called the Share Broking. The origination of the Indian securities
market may be traced back to 1975, when enterprise brokers under a Banyan
tree established the Bombay Stock Exchange (BSE). Over the last 130 years, the
Indian securities market has evolved continuously to become one of the most
dynamic, modern international standards both in terms of structure and in terms
of operating efficiency.

Settlement cycle schedule

S. No. Day Description of activity trade

1 T Trading Day
2 T+2 PAY IN BY 10.30 am.
3 T+2 PAY – OUT BY 2 pm.
4 T+3 Auction of shortage in deliveries
5 T+5 Auction pay-in by 10.30 (1 am/ pay Out by 2 pm.)

Online trading has lead to additional features such as:

 Limit / stop orders: orders that can be go unfilled, but there is an extra
Charge for this leeway facility since one need to hold a price.
 Market orders: orders can be filled at unexpected prices, but this type is
much more risky, since you have to buy stock at the given price.
 Cash account: where funds have to be available prior to placing the order.

Advantages of online trading:

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀱󰀳
 Online trading has made it possible for anyone to have easy and efficient
access to more reports and charts than it was previously possible if one went
to any brokers' office.
Thus we have access to a lot more information online.
 Online trading has let room for smaller organizations to compete with
multinational organizations since it is no longer a leg it issue. Being online
does not identify the size of any particular organization, therefore, this
additional power to the underdogs.
 Online trading has allowed companies to locate themselves where they want
as physical location is not an issue anymore. Companies can establish
themselves according to their gains and losses, for instance where tax (sales
and value added taxes) is best suited to them.

Features of online trading:

The Online Trading is having many features which make it most suitable for the
investors to go for. Some of these features are as follows:

 Freedom of information

The Internet can provide a new sense of control over your financial
future. The amount of investment information available online is truly
astounding. It's one of the best aspects of being a wired investor. For the first
time in history, any individual with an Internet connection can:

 Know the price of any stock at any time

 Review the price history of any stock in chart format
 Follow market events in-depth

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀱󰀴
 Receive a wealth of free commentary and analysis about stock
markets and the global economy
 Conduct extensive financial research on any company
One of the great appeals of using an online trading account is the fact that
the account belongs to you, and is under your direct control.
When you wantto buy or sell stock, you no longer need to call your broker on the
phone;hope that he is in the office to place your order; possibly argue with the
broker about the order; and hope that the transaction is executed instantly.
This method of trading reduces the settlement risk for the investor, as in this
case all short sell orders are squared off at the specified cut-off time and not
allowed to be carried forward.
In the case of a demat account your demat account is checked by us before

executing your sell transaction. This reduces the settlement risk for the
buyer, who is assured of the delivery of the securities and for you as a seller
of the securities.

Investors reasons to trade online:

 They have control over their accounts, can make their own decisions and
don’t have to give reasons for their actions. They are independent.
 They have a reason to participate in the market and learn about it.
 It is interesting, cheap, easy, fast, and convenient.
 A lot of information is online so they can keep up-to-date with what is
happening in the trading world.
 It will give investors a greater choice and better realization.
 The immediate impact will be competition and benefits will accrue to the
investors.
 It will lead to brokerage commissions going down and brokers striving to
increase business afloat.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀱󰀵
Benefits of on line broking

1) Less Costly:

The most significant advantage of the online broking is the cost reduction in
the brokerage. Due to the power of the Internet one has the privilege of
becoming the clients of really large brokerages with the benefits of enjoying the
low charges hithelio before enjoyed only by the big players. As the DP account
has got linked to the trading account most players do not charge a minimum
transaction cost thus truly allowing one to buy a single share and achieve
meaningful rupee price averaging whatever be your buying power.

2) Peace of Mind:

One can never have complete peace of mind but online investing does away
with the hassles of filling up instruction slips, visits to the broker for handing over
these slips and consequent costs.

3) Keeping Records:

The site one trades on keeps a record of all transactions down to unexecuted
orders and cancelled orders thus keeping one abreast of all your transactions 24
hours a day. No paperwork means more time at one’s disposal for research and
analysis.

4) Access to Information and investment Tools:

Most online investing sites have a wealth of information for their registered

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀱󰀶
members. This includes research reports, results, analysis and even gossip and
the buzz in the market.

5.) Unparalleled Safety:

Most sites are secure using 128-bit algorithms -highest available

commercially anywhere in the world. Moreover even if somebody broke in and
tampered with one’s account the money from the stocks he sold or the stock
bought from the money in his account is in his account only.

6.) Reduces the settlement risk:

This method of trading reduces the settlement risk for the investor, as in this
case no Short sale is possible i.e. the seller will not be able to sell the securities
unless he has their actual possession. In the case of a demat account (required
for an online transaction), when a seller wants to sell the securities, his demat
account is checked by the Depository Participant before executing the sale
transaction.

7.) Offers greater transparency:

Online trading gives greater transparency to the investors by providing them

an audit trail. This involves a complete integrated electronic chain starting from
order placement, to clearing and settlement and finally ending with a credit to the
depository account of the investor.

9.) Ease of trade:

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀱󰀷
It is the ease of doing the trade through net, with a click of mouse; one can
buy or sell any share that is dematerialized. Other than the above-mentioned
advantages, Internet trading provides some additional advantages to the
investors, brokers and also helps the nation to channelize the resources. Net
trading would increase competition in the market hence increase in the
bargaining power of the investors..

Here are the possible disadvantages:

 When network crashes, there will be problems and delays due to a large
influx of rapid online trading criteria.

 Individuals are restricted to first-hand financial guidance. This simply means

that the individual is himself / herself alone to.
 A tax (sales tax and value added tax) evaluation becomes an issue, especially
when you are trading internationally.

Stock Market In India

Stock exchanges are the perfect type of market for securities whether of
government and semi-govt bodies or other public bodies as also for shares and

debentures issued by the joint-stock companies. In the stock market, purchases

and sales of shares are affected in conditions of free competition. Government
securities are traded outside the trading ring in the form of over the counter sales
or purchase.

Definition of a stock exchange:

“Stock exchange means any body or individuals whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of

buying, selling or dealing in securities.”

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀱󰀸
The securities include:-
1. Shares of public company.
2. Government securities.
3. Bonds

History of Stock Exchanges:

The only stock exchanges operating in the 19th century were those of
Mumbai setup in 1875 and Ahmadabad set up in 1894. These were organized as
voluntary non-profit-marking associations of brokers to regulate and protect
their interests. Before the control on securities under the constitution in 1950, it
was a state subject and the Bombay securities contracts (control) act of 1925
used to regulate trading in securities. Under this act, the Mumbai stock exchange

was recognized in 1927 and Ahmadabad in 1937. During the war boom, a
number of stock exchanges were organized.

Functions of Stock Exchanges:

Stock exchange is established into the main purpose of providing a market place
for the members to deal in securities under well laid down regulations and to
protect the interest of the investors. The main functions of stock exchange are;
1. It brings the companies and investors together so that the investors can

put risk capital into companies and thus, companies can use the capital.
2. It provides an orderly regulated market for securities.
3. It provides continuous, ready and open market for selling and buying
securities.
4. It promotes savings and investment in the economy by attracting funds
from the investors.
5. It facilitates take overs by means of acquiring majority of shares traded on
the stock market.
6. It enables the investors to evaluate the net worth of
of their holdings.
7. It also allows the companies to float their shares in the market.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀱󰀹
Various Stock Exchanges in India:

At present according to SEBI 2011 guidelines

guidelines these are stock exchanges
exchanges
recognized under the securities contracts (regulation), Act, 1956.
 Ahmedabad Stock Exchange Ltd
 Bangalore Stock Exchange Ltd.
 Bhubaneswar Stock Exchange Ltd.
 Bombay Stock Exchange Ltd.
 Calcutta Stock Exchange Ltd.
 Cochin Stock Exchange Ltd.
 Coimbatore Stock Exchange Ltd.

 Delhi Stock Exchange Ltd.,

 Gauhati Stock Exchange Ltd.
 Interconnected Stock Exchange of India Ltd.
 Jaipur Stock Exchange Ltd.
 Ludhiana Stock Exchange Ltd.,
 Madhya Pradesh Stock Exchange Ltd
 Madras Stock Exchange Ltd.
 MCX Stock Exchange Ltd
 National Stock Exchange of India Ltd.
 OTC Exchange of India
 Pune Stock Exchange Ltd.
 U.P. Stock Exchange Limited
 United S
Stock
tock Exchange of India Limited
 The Vadodara Stock Exchange Ltd

Major stock exchanges:

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀲󰀰
  NSE
The National Stock Exchange of India Limited has genesis in the report of the
High Powered Study Group on Establishment of New Stock Exchanges, which

recommended promotion of a National Stock Exchange by financial institutions

(FI’s) to provide access to investors from all across the country on an equal
footing. Based on the recommendations, NSE was promoted by leading Financial
Institutions at the behest of the Government of India and was incorporated in
November 1992 as a tax-paying company unlike other stock exchanges in the
country. On its recognition as a stock exchange under the Securities Contracts
(Regulation) Act, 1956 in April 1993, NSE commenced operations in the
Wholesale Debt Market (WDM) segment in June 1994.

The NSE was set-up with the main objectives of:

o Establishing a nation-wide trading facility for equities and debt
instruments.
o Ensuring equal access to investors all over the country through an
appropriate communication network.
o Providing a fair, efficient and transparent securities market to investors
investors
using electronic trading systems.
o The standards set by NSE in terms of market practices and technology,

have become industry benchmarks and are being emulated by other

market
o NSE is more than a mere market facilitator. It's that force which is guiding
the industry towards new horizons and greater opportunities.

 BSE
The Stock Exchange, Mumbai, popularly known as "BSE" was established in

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀲󰀱
1875 as "The Native Share and Stock Brokers Association". It is the oldest one in
Asia, even
even older than the Tokyo
Tokyo Stock Exchange,
Exchange, which
which was established
established in 1878.
1878.
It is a voluntary non-profit making Association of Persons (AOP) and is
currentlyengaged in the process of converting itself into demutualised and

corporate entity. Accordingly, an Executive Committee, consisting of three

elected directors, three SEBI nominees or public representatives, Executive
Director & CEO and Chief Operating Officer has been constituted. The
Committee considers judicial & quasi matters in which the Governing Board has
powers as an Appellate Authority, matters regarding annulment of transactions,
admission, continuance and suspension of member brokers,

 Members of the stock exchange:

The securities contract regulation act 1956 has provided uniform regulation for
the admission of members in the stock exchanges. The qualifications for
becoming a member of a recognized stock exchange are given below:
 The minimum age prescribed for the members is 21 years.
 He should be an Indian citizen.
 He should be neither a bankrupt nor compound with the creditors.
 He should not be convicted for fraud or dishonesty.
 He should not be engaged in any other business connected with a

company.
 He should not be a defaulter of any other stock exchange.
 The minimum required education is a pass in 12th standard examination.

 Securities and Exchange Board of India (SEBI)

The securities and exchange board of India was constituted in 1988 under a
resolution of government of India. It was later made statutory body by the SEBI
act 1992.according to this act, the SEBI shall constitute of a chairman and four

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀲󰀲
other members appointed by the central government. With the coming into effect
of the securities and exchange board of India act,
1992 some of the powers and functions exercised by the central government, in
respect of the regulation of stock exchange were transferred to the SEBI.

Objectives and functions of SEBI

 To protect the interest of investors in securities.

 Regulating the business in stock exchanges and any other securities
Market.
 Registering and regulating the working of intermediaries associated with
securities market as well as working of mutual funds.
 Promoting and regulating self-regulatory organizations.
 Prohibiting insider trading in securities.
 Regulating substantial acquisition of shares and take over of companies.

SEBI guidelines to secondary markets: (stock exchanges):

 Board of Directors of Stock Exchange has to be reconstituted so as to include

non-members, public representatives and government representatives to the
extent of 50% of total number of members.
 Capital adequacy norms have been laid down for the members of various
stock exchanges depending upon their turnover of trade and other factors.
 All recognized stock exchanges will have to inform about transactions within
24 hrs.An investor considering investment in securities is faced with the
problem of choosing from among a large number of securities and how to
allocate his
h is funds over this group
grou p of securities.
se curities.

Internet Based Trading Through Order Routing Systems

Internet based trading on conventional exchanges, uses the Internet

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀲󰀳
as a medium for communicating client orders to the exchange, through broker
web sites.
Broker’s web sites may serve a variety of functions. These may include;
 Allowing the clients to directly trade through investors;
 Advertise the broker dealers’ services to potential investors;
 Offer market information and investment tools similar to those offered by
information vendor or SRO web sites;
 Offer real-time or delayed quote information, continuously update
quotes while the user visits other sites, or allow investors to create a
personal stock ticker;
 Account information and research reports.
In an Order Routing system, a broker offering Internet trading facility
provides an electronic template for the customer to enter the name of the
security, whatever it is to be bought or sold, the quantity and whatever the order
is a market or limit order. Once the broker’s system receives this information.

Features
 Instant Loading
 Works behind a Proxy
 Live Streaming quotes

 Multiple Watch lists

 NSE& BSE Access
 Single order form for Cash and
and FnO
FnO
 Point and Click order entry
 Hot Key Functions
 Market Depth Window
 Back Office access

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀲󰀴
 Client Broker Relationship

• Know Your Client:

The stock Exchange must ensure that brokers have sufficient, verifiable

information about clients, which would facilitate risk evaluation of clients.

• Broker- Client Agreement:

Brokers must enter into an agreement with clients spelling out all obligations
and rights. This agreement should also inter alia, the minimum service standards
to be maintained by the broker for such service specified by SEBI/Exchange for
the internet based trading from time to time.

• Investor Information:

The broker web site providing the internet based trading facility should
contain information meant for investor protection such as rules and regulations
affecting client broker relationship arbitration rules, investor protection rules etc.
The broker web site providing the Internet based trading facility should also
provide and display prominently, hyper link to the web site/page on the web site
of the relevant stock exchange (s) displaying rules/ regulations/ circulars.

• Order/Trade Confirmation:

Order/Trade confirmation should also be sent to the investor through email

at client’s discretion at the time specified by the client in addition to the other
made of display of such confirmation of real time basis on the broker web site.
The investor should be allowed to specify the time interval on the web site itself
with in which he would like to receive this information through email.

• Handling Complaints by Investors:

Exchanges should monitor complaints from investors regarding service

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀲󰀵
provided by brokers to ensure a minimum level of service. Exchange should have
separate cell specifically to handle Internet trading related complaints. It is
desirable that exchanges should also have facility for on-line registration of
complaints on their web site.

• Risk Management:
Exchanges must ensure that brokers have a system-based control on the
trading limits of clients, and exposures taken by clients. Brokers must set
predefined limits on the exposure and turnover of each client.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀲󰀶
 Chapter 2

Company Profile

India Infoline is a one-stop financial services shop, most respected for quality
of its advice, personalized service and cutting-edge technology.

The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd
(NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading
players in the Indian financial services space. IIFL offers advice and execution
platform for the entire range of financial services covering products ranging from
Equities and derivatives, Commodities, Wealth management, Asset
management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds
and other small savings instruments.
A network of
of over 2,500 business
business locat
locations
ions spread over
over more than 500 cities
cities and
towns across India facilitates the smooth acquisition and servicing of a large
customer base.

• India Infoline Pvt Ltd

IIFL has been awarded the ‘Best Broker, India’ by Finance Asia and the ‘Most
improved brokerage, India’ in the Asia Money polls. India Infoline was also
adjudged as ‘Fastest Growing Equity Broking House - Large firms’ by Dun &
Bradstreet. A forerunner in the field of equity research, IIFL’s research is
acknowledged by none other than Forbes as ‘Best of the Web’ and ‘…a must
read for investors in Asia’. Our research is available not just over the Internet but
also on international wire services like Bloomberg, Thomson First Call and
Internet Securities where it is amongst one of the most read Indian brokers. India
Infoline Limited is listed on both the leading stock exchanges in India,

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀲󰀷
 • India Infoline Group :
The India Infoline group, comprising the holding company, India Infoline
Limited and its wholly-owned subsidiaries, straddle the entire financial services
space with offerings ranging from Equity research, Equities and derivatives
trading, Commodities trading, Portfolio Management Services, Mutual Funds,
Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to
loan products and Investment banking. India Infoline also owns and manages the
websites www.indiainfoline.com and www.5paisa.com The company has a

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀲󰀸
network of 596 branches spread across 345 cities and towns. It has more than
500,000 customers.

•
India Infoline Ltd
India Infoline Limited is listed on both the leading stock exchanges in India,
viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange
(NSE) and is also a member of both the exchanges. It is engaged in the
businesses of Equities broking, Wealth Advisory Services and Portfolio
Management Services. It offers broking services in the Cash and Derivatives
segments of the NSE as well as the Cash segment of the BSE. It is registered
with NSDL as well as CDSL as a depository participant, providing a one-stop

solution for clients trading in the equities market.

• India Infoline Media and Research Services Limited :

The content services represent a strong support that drives the broking,
commodities, mutual fund and portfolio management services businesses.
Revenue generation is through the sale of content to financial and media
houses, Indian as well as global.
It undertakes equities research which is acknowledged by none other than
Forbes as 'Best of the Web' and '…a must read for investors in Asia'. India
Infoline's research is available not just over the internet but also on
international wire services like Bloomberg (Code: IILL), Thomson First Call
and Internet Securities where India Infoline is amongst the most read Indian
brokers

• India Infoline Commodities Limited :

India Infoline Commodities Pvt Limited is engaged in the business of
commodities broking. Our experience in securities broking empowered us with
the requisite skills and technologies to allow us offer commodities broking as a

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀲󰀹
contra-cyclical alternative to equities broking. We enjoy memberships with the
MCX and NCDEX, two leading Indian commodities exchanges, and recently
acquired membership of DGCX.

• India Infoline Marketing & Services :

India Infoline Marketing and Services Limited is the holding company of India
Infoline Insurance Services Limited and India Infoline Insurance Brokers Limited.
India Infoline Insurance Brokers Limited India Infoline Insurance Brokers Limited
is a newly formed subsidiary which will carry out the business of Insurance
broking.

India Infoline Investment Services Limited :

Consolidated shareholdings of all the subsidiary companies engaged in loans
and financing activities under one subsidiary. India Infoline Investment Services
Private Limited consists of the following step-down subsidiaries.

 India Infoline Distribution Company Limited (distribution of retail loan

products)
 Moneyline Credit Limited (consumer finance)

 India Infoline Housing Finance Limited (housing finance)

• IIFL (Asia) Private Limited :

IIFL (Asia) Private Limited is wholly owned subsidiary which has been
incorporated in Singapore to pursue financial sector activities in other Asian
markets. Further to obtaining the necessary regulatory approvals, the company
has been initially capitalized at 1 million Singapore dollars.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳󰀰
 Industry Profile

The Indian broking industry is one of the oldest trading industries that have been

around even before the establishment of the BSE in 1875. Despite passing
through number of changes in the post liberalization period, the industry has
found its way onwards sustainable growth. With the purpose of gaining a deeper
understanding about the role of the Indian stock broking industry in the country’s
economy, we present in this section some of the industry insights gleaned from
analysis of data received through primary research.

• A BRIEF HISTORY

India Infoline was originally incorporated on October 18, 1995 as Probity

Research and Services Private Limited at Mumbai under the Companies Act,
1956 with Registration No. 11 93797. India Infoline commenced operations as an
independent provider of information, analysis and research covering Indian
businesses, financial markets and economy, to institutional customers. India
Infoline became a public limited company on April 28, 2000 and the name of the
Company was changed to Probity Research and Services Limited. The name of
the Company was changed to India Infoline.com Limited on May 23, 2000 and
later to India Infoline Limited on March 23, 2001.
India Infoline broking services was launched under the brand name of
5paisa.com through our subsidiary, India Infoline Securities Private Limited and
www.5paisa.com, the e-broking portal, was launched for online trading in July
2000.

• Facilities
India Infoline’s main offices are located in approximately 4,000 square feet
of office space located in Mumbai, India. India Infoline Branches collectively
occupy an additional 10,000 square feet of office space located throughout India,

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳󰀱
As on March 31, 2005, India Infoline has 73 branches across 36 locations in
India.

• Terminals
Almost 52% of the terminals
terminals in the
the sample are
are based in the Western region
region of
India, followed by 25% in the North, 13% in the South and 10% in the East.
Mumbai has got the maximum representation from the West, Chennai from the
South, New Delhi from the North and Kolkata from the East.

• Branches & Sub-Brokers

The maximum concentration of branches is in the North, with as many as 40%
of all branches located there, followed by the Western region, with 31%
branches. Around 24% branches are located in the South and East constitutes
for 5% of the total branches of the total sample.
In case of sub-brokers, almost 55% of them are based in the South. West and
North follow, with 30% and 11% sub-brokers respectively, whereas East has
around 4% of total sub-brokers.

(i)

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󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳󰀲
 (ii)

• Financial Markets

The financial markets have been classified as cash market, derivatives market,
debt market and commodities market. Cash market, also known as spot market,
is the most sought after amongst investors.
derivatives and commodities market. Firms that are into cash, derivatives and
debt are 7%. On the other hand, firms into cash and commodities are 3%, cash &
debt market and commodities alone are 2%. 4% firms trade in all the markets.

(iii)

In the cash market, around 34% firms trade at NSE, 14% at BSE and 52%
trade at both exchanges. In the equity derivative market, 48% of the sampled
broking houses are members of NSE and 7% trade at BSE, while 45% of the

sample operate in both stock exchanges. Around 43% of the broking houses

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳󰀳
operating in the debt market, trade at both exchanges with 31% and 26% firms
uniquely at NSE and BSE respectively.

(iv)

• Products
The survey also revealed that in the past couple of years, apart from trading,
the firms have started offering various investment related value added services.
The sustained growth of the economy in the past couple of years has resulted in
broking firms offering many diversified services related to IPOs, mutual funds,
company research etc.
More than 50% of the sample broking houses deal in mutual fund investment
services. The average growth in assets under management in the last two years
is almost 48%. Company research is another lucrative area where the broking

firms offer their services; more than 33% of the firms are engaged in providing
company research services.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳󰀴
 (v)

Of the total sample of broking houses providing trading services, 52% are based
in the West, followed by 25% from North, 13% from South and 10% from the
East. Around 50% of the firms offering IPO related services are based in the
West as compared to 27% in North, 13% in South and 10% in East. In providing
mutual funds services, the Western region was dominant amounting to 49%
followed by 27% from North; The South and the East are almost at par with 13%
and 11% Respectively.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳󰀵
 Literature Review

This chapter brings up relevant literature required to find answers and

connect to our research questions. First, vital literature about online trading
along with key concepts of different terms, drivers of growth and the
necessity of its existence will be presented so that it becomes easier to
understand the research area.

ECOMMERCE

Electronic commerce, commonly known as e-commerce or e-Commerce, or e-

business consists of the buying and selling of products or services over
electronic systems such as the Internet and other computer networks. The
amount of trade conducted electronically has grown extraordinarily with
widespread Internet usage.

Background
This section is intended to offer sufficient background of the research area

that covers the general idea of e-commerce and the position of online
trading as one of the major element of each economy.

E-commerce and the Position of Online Trading

In business today electronic commerce (e-commerce) is one of the
common topics being discussed. Kalakota and Whinston (1996) defined
ecommerce as "The buying and selling of information, products and
services via computer networks, the computer networks primarily

being the Internet. It is streamlining business processes, restructuring

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳󰀶
whole industries and re-shaping of customer and supplier relationship
(Daniel et al., 2002).

Online Trading and Customer Satisfaction

Applying conventional
conventional trading systems in India leads to many aspects of
problems like manipulation, lot's of paperwork, insiders' illegal activities and etc.
These problems cause traders' dissatisfaction and the lack of technological
foundations creates an inefficient market.

Different Models for Measuring Service Quality

According
According to literature,
literature, service
service quality
quality dimensions
dimensions identified
identified by different
different
authors. These dimensions are measured in order to find out the degree of
satisfaction in current market and find the relationship between service
qualities dimensions which online trading can provide and traders'
satisfaction.
1. Tangibles: Physical facilities, equipment and appearance of personnel.
2. Reliability: Ability to perform the promised service dependably and
accurately.
3. Responsiveness: Willingness to help customers and provide prompt
service.
4. Assurance (including competence, courtesy, credibility and security):
Knowledge and courtesy of employees and their ability to inspire trust and
confidence.

Online trading
Countries all over the world have invested heavily to leverage the Internet
and transform their conventional businesses into e-businesses. E-businesses
are defined as the use of Internet based information and communication
technologies (ICT) by organizations to conduct transactions, share

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳󰀷
information and maintain relationships. New technologies such as World Wide
Web have made a profound on all business around the world. E-business
enables organizations to reduce cost, increase demand and create new
business models.

Definitions of Online Trading

The Internet revolution has been changing the fundamentals of the society. It
changes the shape of communication and also trading process. It shifts closer
and closer to vital sources of information and new trading environment by the
name of "online trading". It provides users with means to directly
interact with service- oriented computer systems tailored to their specific needs.
In online trading, you will access a stockbroker's website through your
internet-enabled PC and place orders through the broker’s internet-based
trading engine. These orders are routed to the Stock Exchange without
manual intervention and executed thereon in a matter of a few seconds.
(www.investsmartindia.com)
They divided into three categories
• Full-service
• Discount
• Online
There are two basic ways to day trade electronically. The first is through
"Conventional Online Trading", using your Internet browser and a Web based
broker. The second is by way of "Direct Access Trading systems", using
specialized software and a private network.

The growth of online trading

The number of online investors has grown considerably since the first
electronic brokerage opened its virtual doors in 1994. These e-brokerages
have attracted 16 million investors in less than Seven years, now accounting

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳󰀸
for over 40% of retail stock trades.
Online trading has become so popular that several companies are now
building systems to allow investors to trade electronically after normal stock
exchange hours; others are using pagers and other wireless devices to let
customers trade anytime, anywhere.

Online Trading trends

·Security issues fading: Concerns centered on security issues
(encryption) and customer service issues (upgraded server and
network equipment) are fading as consumers become accustomed to
using the internet on a weekly or even daily basis for many types of
transactions.

Pricing stabilization:
The online brokerage industry has seen severe price competition over the last
two years, with every competitor lowering commission rates in an attempt to gain
as many new accounts as possible. There is a belief that, prices have started to
stabilize and further price reductions are unlikely from the present level. While
new entrants will have to align commission rates lower to be competitive, rates of
established online brokerages will be stable over the next year.

Online Trading characteristics

· High amounts spent on advertising: Because of relatively low barriers
to entry, companies in this industry spend heavily on advertising in
order to create a "brand" or "portal destination". The industry is in a
race to lock up as many customers as possible, with the idea that a
company can retain those customers by creating switching costs.

Importance of technology: Companies in the industry compete on

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀳󰀹
speed of access, speed of order processing, and system reliability.
Conventional brokerages are not accustomed to dealing with this
additional layer of complexity. Established online brokerages have an
advantage over newly entering conventional brokerages in this area..

Advantages and Disadvantages of online trading

Trading online the same as other systems has advantages and also
disadvantages. Below the main points are summarized:

Advantages
· Quick access/Convenience: You can place your orders from
anywhere and at any time. All you need is a personal computer. When you trade
online, you save yourself a lot of time.
You need not call your stockbroker to give your orders or to find out what
happened to your trade.

 Control/Transparency: With online trading, power is literally at

your fingertips. With a few keystrokes, you can place your orders and get all the
information you need without any assistance or intervention of a stockbroker.
You do not have to discuss or reveal your trades or plans with your stockbroker.
You become an empowered,

 Efficiency: Getting information or feedback used to take minutes,

sometimes even days. With online trading, you get these faster because
you get online, real-time information on your account balance, order
status, and stock quotes with the best three levels of bids and offers.

Opportunity to take advantage of market movements:

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀴󰀰
By trading online, you have the ability to react quickly and take advantage of
opportunities in the market that will hopefully enhance the value of your
investments

Disadvantages
Despite all the advantages of Online Trading there are a few disadvantages.
However, these disadvantages only apply to certain investors, the
inexperienced investor, the traditional investor, and the busy investor.

 Expertise: Nobody involved in financial markets claims to know all

the right moves, but everyone involved in the markets has an
understanding of how things work.
For an individual who knows nothing about stocks and nothing to look for might
have a problemn with online trading.

 Time: There are a lot of investors out there that are very well
educated in the financial markets but are too busy doing other things.
Online trading requires an individual to do his or her own analysis. The
research is provided by the online company,

For the traditional investor Online trading also has one major
disadvantage:

 Informality: Using an online service to make trades is very informal.

Traditional investors grew up investing through a broker and interacting with that
broker. Often time's traditional investors have very close relationships with their
brokers and online trading eliminates the possibility of any relationships. Online
trading might not be for everyone and often times are not.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀴󰀱
 Chapter 3

Research Methodology

• Introduction:
Research methods are all those methods/techniques that are used for
conducting to the researcher’s use in performing research. Here more emphasis
is made on collection of the data directly through the customers with directly
interacting with them.

Title of the study:

Statement of the Problem:

As online trading
trading of
of securities has been introduce
introduced
d very recently
recently in India,
India, so as to
help the common people from all over the country to invest in the share market.
To make the share market truly democratic in nature, it is considered as a vital
step. We are unaware of the market condition. This study is totally concerned
about the expectations and behavior of the online-traders.

Review of the Literature:

Review of the literature is nothing but the subs seeing fact or retiring or viewing
back of the literature, which is available of the same time. To the best of the
knowledge and believe of the researcher, online trading is new to the market. So
review of the literature is not available and as per as the study concerned, it is
immaterial to review of the literature.

Objectives of the Study:

The objectives of my research project is –

1. To determine the growth and future of online trading industry in India

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀴󰀲
 2. To understand the customer perception of online trading.
3. To see the type of technology used by stock exchanges and by the
Indian customer in online trading
4. To determine what type of products the customers deal while doing the
online trading.
5. To understand the presence of major online traders in the Indian
market and looking about the features provided by them
6. To find out the important factor which do mostly affect to the customer
• Data Collection Instruments:

󰀱) The research instrument in the study is questionnaire method.

2) Personal interview was conducted along with it.
3) The set of questionnaires were used for all respondents.
Research has mainly one instrument for collecting the primary data, i.e
.questionnaire. Here the questionnaire has been made much easy to understand
and answer, and hence clearly it takes lesser time to respond.

• Sampling Design:
Sampling methods or technique may be classified into two generic types.
a. Probability or random sampling and
b. Non-probability of non-random sampling.

Probability or random sampling:

It is based on theory of probability. It provides known zero change for selection of

each population element. Under this sampling design every item of the universe
has an equal chance of inclusion in the sample. It is so to say a lottery method in
which individual units are picked up from the whole group, not deliberately but by
some mechanical process.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀴󰀳
Non-probability or non-random sampling
It is not based on the theory of probability. This simply does not provide change
of selection of each population element. The only merits of this type of

sampling are simplicity convenience and low cost. Non-probability sampling is

classified into.
1) Convenience or accidental sampling
2) Judgment sampling

Sampling Procedure:

In this study non-probability sampling and particularly the Convenience sampling

has been used.

Conceptual Definition of the Study:

Shares:

Share is a share in the Share Capital of the Company. Shares are the tools,
which are giving the ownership rights to its holders

Bonus shares:
Bonus shares are shares issued by a company out of its accumulated profits to
the existing equity share holders either as fully paid shares or partly paid shares
free of cost.

Demat:
Demat is the abbreviation for the dematerialization. In this the shares are kept in
the electronic form. In other words Demat means dematerialization it means from

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀴󰀴
physically form converted into electronically form. Demat shares introduced in
1998 earlier days is transaction only physically like bonds.

Cash Trading:

This is delivery based trading system. This is generally done with the intention of
taking delivery of shares on monies.

Margin Trading:
Customers can also do an intra-trading up o four times their available funds.
Where in they take in long buy/short sell position in stokes with the intension of
squaring of the position within the same settlement cycle.

Spot Trading:

When customers are looking at an immediate liquidity option, ‘cash on spot’ may
work best for them. On selling shares through ‘cash on spot’, money is credited
to their bank account the same evening and not on the exchange payout date.

T + 2 settlements:

T (Trading day) + 2 settlement means the settlement of transaction will be taken

place after 3 days from day of transaction. It is controlled by Government of India
under SEBI (Securities Exchange Board of India).

BTST:
Buy Today Sell Tomorrow (BTST) is a facility that allows customers to sell shares
even on day after the buy order date. Without this, they have to wait for the
receipt of shares into their demat account.

Call Trade:

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀴󰀵
Call Traded allows customers to call on a local number in their city and trade on
the Telephone through customer Service Executives.

Call in Advance:

The amount received from the shareholders before a call is made is known as
calls paid in advance or calls in advance.

Calls in Arrears:
When a call is not paid by the members within the date specified in the call
notice, the amount of call unpaid on the shares is called calls in arrears.

Surrender of shares:
Surrender of shares means the return (i.e. giving back) of shares bya
shareholder to the company voluntarily for cancellation. It is a shortcut to the long
and cumbersome procedure of forfeiture of shares.

Market Order:
Customers can trade by placing market orders during market hours that allow
them to trade at the best obtainable price in the market at the time of execution of
the order.

Limit Order:This allows customer to place a buy/sell order at a price defined by

them. The execution can happen at a price more favorable than the price, which
is defined by them. They can place limit orders during holidays and non-
marketing hours too.

Respondent Profile:
The respondents were from various age groups.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀴󰀶
The respondent’s behavior towards the researcher is friendly and helping
attitude. The respondents were eager to give suggestions.

Limitations Of The Study:

Questionnaire contained a few number of the questions to facilitate the

respondent. Area under the study was limited. I had limited time to get the
detailed information about Online trading of Shares

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀴󰀷
 Chapter 4

Data Collection
Analysis & Interpretation

Sources of Data:
Two types of data is collected in this study
1. Primary Data
2. Secondary Data

1. Primary Data:
It involves collection of data from sources from which the researcher directly
collect data that have not been previously collected. In this study, primary data
are collected by the use of two types of methods:
Questionnaire
Interviews In this study questionnaires are used to collect the data from the
respondents, since where the questionnaires are not adequate ,researcher has
used personal interview method for collecting data to draw the effective
conclusion.

2. Secondary Data
These are the data collected from various sources, used in addition to the
primary data in the research. The various sources are the government
publications, research organizations, journals, newspapers, websites etc
The website under are.

• www.motilaloswal.com
• www.investmentz.com
• www.outlookmoney.com
• www.capitalbuy.com
• www.sherkhan.com

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀴󰀸
 Data Analysis
1. Gender?
A) 󰁍󰁡󰁬󰁥 B) 󰁆󰁥󰁭󰁡󰁬󰁥

Sales

󰁍󰁡󰁬󰁥

󰁆󰁥󰁭󰁡󰁬󰁥

2. Age?
A) 18󰀭28 B) 9󰀭39 C) 40󰀭49 󰁄)>49

Series 1

20
10 󰁓󰁥󰁲󰁩󰁥󰁳 1
0
A B C 󰁄

3. Educational Qualification?

A) 󰁈󰁓C B)10+2 C)󰁇󰁲󰁡󰁤󰁵󰁡󰁴󰁥 󰁄)󰁐󰁯󰁳󰁴 󰁇󰁲󰁡󰁤󰁵󰁡󰁴󰁥

Series 1

20
10 󰁓󰁥󰁲󰁩󰁥󰁳 1
0
A B C 󰁄

4. Occupation
A) B󰁕󰁓󰁉󰁎󰁅󰁓󰁓 B)󰁓󰁅󰁒󰁖󰁉C󰁅 C)󰁓󰁔󰁕󰁄󰁅󰁎󰁔 4)󰁒󰁅󰁔󰁉󰁒󰁅󰁄

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰 󰁐󰁡󰁧󰁥 󰀴󰀹
 󰁓󰁥󰁲󰁩󰁥󰁳 󰀱

40

20
󰁓󰁥󰁲󰁩󰁥󰁳 1
0
A B C C󰁡󰁴󰁥󰁧󰁯󰁲󰁹 4

INCOME?
A) B󰁅󰁌󰁏󰁗 1 󰁌A󰁋󰁈 B) 1󰀭2 󰁌A󰁋󰁈 C) 2󰀭5 󰁌A󰁋󰁈 󰁄) >5 󰁌A󰁋󰁈󰁓

󰁓󰁥󰁲󰁩󰁥󰁳 󰀱

20

10 󰁓󰁥󰁲󰁩󰁥󰁳 1
0
A B C 󰁄

Idea about Trading or investment in shares?

A) 󰁙󰁅󰁓 B) 󰁏

󰁓󰁥󰁲󰁩󰁥󰁳 󰀱
20

10
󰁓󰁥󰁲󰁩󰁥󰁳 1
0
A B

Are you interested in EMAT account?

󰁙󰁅󰁓 B) 󰁏

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰 󰁐󰁡󰁧󰁥 󰀵󰀰
 󰁓󰁥󰁲󰁩󰁥󰁳 󰀱
25
20
15

10 󰁓󰁥󰁲󰁩󰁥󰁳 1
5
0
A B

Are you trading any w ere?

A) 󰁹󰁥󰁳 B) 󰁏

󰁓󰁥󰁲󰁩󰁥󰁳 󰀱
15
14
13
12 󰁓󰁥󰁲󰁩󰁥󰁳 1
11
A B

IF YES?

A)󰁉󰁎󰁄󰁉A 󰁉󰁎󰁆󰁏󰁌󰁉󰁎󰁅 B) 󰁅󰁌󰁉󰁇A󰁒󰁅 C) 󰁓󰁈A󰁒󰁅󰁋󰁈A󰁎 󰁄)󰁋A󰁒󰁖󰁙 󰁅) 󰁉C󰁉C󰁉

󰁆) 󰁒󰁅󰁌󰁉A󰁎C󰁅

󰁓󰁥󰁲󰁩󰁥󰁳 󰀱

2
󰁓󰁥󰁲󰁩󰁥󰁳 1

0
A B C 󰁄 󰁅 󰁆

IF YOU ARE INTERES ED THEN WHERE YOU WOULD LIKE TO INVEST YOUR
MONEY?

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰 󰁐󰁡󰁧󰁥 󰀵󰀱
A) 󰁅󰁑󰁕󰁉󰁔󰁙 B) 󰁅󰁒󰁉󰁖A󰁔󰁉󰁖󰁅󰁓 C) 󰁆󰁏󰁒󰁅󰁘 󰁔󰁒A󰁄󰁉󰁎󰁇 󰁄)
C󰁏󰁍󰁍󰁏󰁄󰁉󰁔󰁙

󰁓󰁥󰁲󰁩󰁥󰁳 󰀱

20

10 󰁓󰁥󰁲󰁩󰁥󰁳 1
0
A B C 󰁄

If you are interested in DEMAT account then what% of INCOME ou would like
to invest in shares?
A) <5% B) (5󰀭10)% C) (10󰀭20)% 󰁄) >20 󰁅) 󰁎/A

󰁓󰁥󰁲󰁩󰁥󰁳 󰀱
10

0
󰁓󰁥󰁲󰁩󰁥󰁳 1
A 󰁓󰁥󰁲󰁩󰁥󰁳 1
B
C
󰁄
󰁅

Do you thin
think
k in
inv
vestm
estme
ent in
in share
shares
s mark
market
et is
is better
better than
than any
any o
oth
th r investment?
A) 󰁙󰁅󰁓 B) 󰁎󰁏

󰁙󰁅󰁓

󰁎󰁏

Which media do you prefer the most as an investor?

(󰁡) 󰁔.󰁖 (󰁢) 󰁎󰁥󰁷󰁳󰁰 󰁰󰁥󰁲 (󰁣) 󰁍󰁡󰁧󰁡󰁺󰁩󰁮󰁥󰁳 (󰁤) 󰁊󰁯󰁵󰁲󰁮󰁡󰁬󰁳

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰 󰁐󰁡󰁧󰁥 󰀵󰀲
 󰁓󰁥󰁲󰁩󰁥󰁳 󰀱

30

20 󰁓󰁥󰁲󰁩󰁥󰁳 1
10

0
A B C 󰁄

Where do you often invest your money?

(󰁡) 󰁅󰁱󰁵󰁩󰁴󰁹 ( 󰁢) 󰁍󰁵󰁴󰁵󰁡󰁬 󰁵󰁮󰁤 (󰁣) 󰁉󰁮󰁳󰁵󰁲󰁡󰁮󰁣󰁥 (󰁤) 󰁔󰁥󰁲󰁭 󰁤󰁥󰁰󰁯󰁳󰁩󰁴󰁳 (󰁥) 󰁏󰁴󰁨󰁥󰁲󰁳

󰁓󰁥󰁲󰁩󰁥󰁳 󰀱
20

15

10
󰁓󰁥󰁲󰁩󰁥󰁳 1
5

0
A B C 󰁄

What is the primary o jective of your investment?

(󰁡) C󰁡󰁰󰁩󰁴󰁡󰁬 󰁡󰁰󰁰󰁲󰁥󰁣󰁩󰁡󰁴󰁩󰁯󰁮 (󰁢) 󰁓󰁯󰁵󰁲󰁣󰁥 󰁯󰁦 󰁩󰁮󰁣󰁯󰁭󰁥
(󰁣) 󰁒󰁥󰁴󰁩󰁲󰁥󰁭󰁥󰁮󰁴 󰁰󰁬󰁡󰁮󰁮󰁩󰁮󰁧 (󰁤) 󰁗󰁥󰁡󰁬󰁴󰁨 󰁰󰁲󰁥󰁳󰁥󰁲󰁶󰁡󰁴󰁩󰁯󰁮
󰁰󰁲󰁥󰁳󰁥󰁲󰁶󰁡󰁴󰁩󰁯 󰁮 (󰁥) 󰁅󰁤󰁵󰁣󰁡󰁴󰁩󰁯󰁮 󰁦󰁵󰁮󰁤󰁩󰁮󰁧

󰁓󰁥󰁲󰁩󰁥󰁳 󰀱
20

15

10
󰁓󰁥󰁲󰁩󰁥󰁳 1
5

0
A B C 󰁄 󰁅

Online trading is an e sy and fast way of trading

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰 󰁐󰁡󰁧󰁥 󰀵󰀳
(󰁡) 󰁓󰁴󰁲󰁯󰁮󰁧󰁬󰁹 󰁡󰁧󰁲󰁥󰁥 (󰁢) A󰁧󰁲󰁥󰁥 (󰁣) C󰁡󰁮󲀙󰁴 󰁳󰁡󰁹 (󰁤) 󰁄󰁩󰁳󰁡󰁧󰁲󰁥󰁥

󰁓󰁥󰁲󰁩󰁥󰁳 󰀱

20
󰁓󰁥󰁲󰁩󰁥󰁳 1
0
A B C 󰁄

Introduction of online trading helped attract new Investors thus increasing the
trading volumes at St ck Market
(󰁡) 󰁓󰁴󰁲󰁯󰁮󰁧󰁬󰁹 󰁡󰁧󰁲󰁥󰁥 (󰁢) A󰁧󰁲󰁥󰁥 (󰁣) C󰁡󰁮󲀙󰁴 󰁳󰁡󰁹 (󰁤) 󰁄󰁩󰁳󰁡󰁧󰁲󰁥󰁥

󰁓󰁥󰁲󰁩󰁥󰁳 󰀱
30
25
20
15
10 󰁓󰁥󰁲󰁩󰁥󰁳 1
5
0
A B C 󰁄

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰 󰁐󰁡󰁧󰁥 󰀵󰀴
 Interpretations

The numbers of investors are increasing at a greater speed during the recent
trend.
• Online Trading is easy to operate and it should be made more secure.
• Per-capita income level is quite high and has good opportunities for
investments.
• Investors want to invest in share markets for more returns even
though there is risk.
• Trend shows that there is mixture of investors
investors who trade daily and
also investors who hold for long term. 40% of the traders are daily
traders so Online Trading will be very helpful to them.
• People are aware of online trading but 68% say that it is not yet
settled in Indian psyche.
• 50% prefer news paper media, 36% prefer T.V media and rest 14%
prefer journals and magazines. Hence most of them follow television
broadcasting.
• Equity has an equal priority to Term Deposits. Hence people can be
attracted towards investment in Capital markets.
• Objective of investment is source of income as well as for wealth

preservation.
• Many are making trading as a source of income hence investments
can increase.
• Most of the people believe Online trading as safe and secure but
there are few who think it is not. May because Online Trading works
with internet platform.
• Hence care should be taken to make internet safer.
• Almost 60% believe that Online Trading is faster way
way of trading.
Hence there is a wide scope of opportunities in Online trading in this
fast moving world.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀵󰀵
 • Online Trading has brought reforms in to markets.
• Longer the trading more the amount invested in the markets.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀵󰀶
 Chapter 5

Recommendation

I recommend the exchange authorities to take steps to educate Investors

about their rights and duties. I suggest to the exchange authorities to increase
the investors’ confidences.

• I recommend the exchange authorities to be vigilant

vigilant to curb wide
fluctuations of prices.
• The speculative pressures are responsible for the wide
wide changes in the
price, not attracting the genuine investors to the greater extent towards the

market.
• Genuine investors are not at all interested in the speculative gain as their
investment is based on the future profits, therefore the authorities of the
exchange should be more vigilant to curb the speculation.
• Necessary steps should be taken by the exchange to deal with the
situations arising due to break down in online trading.
• Effective monitoring of transaction have to be done in avoid uncertainties.
• Internet cost have to be
be reduced in order attract online trading users.
•

Transparency has to maintain in the Share Markets.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀵󰀷
 Conclusion

Things have changed for the better with the SHAREKHAN going on-line coupled

with endeavor to stream line the whole trading system, things have changed
dramatically over the last 3 to 4 years. New and advanced technologies have
breached geographical and cultural barriers, and have brought the countrywide
market to doorstep.

• In the present scenario to compete

compete with the Broker’s would require sound
infrastructure and trading as per international standards.
• The introduction of on-line trading would
would influence the investors resulting
in an increase in the business of the exchange. It has helped the brokers
handling a vast amount of transactions and this can be an efficient trading,
delivering, settlement system with adequate protection to investors.
• 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.
• 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.

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀵󰀸
 Bibliography

Web site Referred

• http://www.5paisa.com
• http://www.moneycontrol.com
• http://www.capitaline.com
• http://www.sharekhan
http://www. sharekhan ltd.com
• http://www.indiainfoline.com
• http://www.icicidirect.com
• http://www.hdfcsecurity.com
• www.bseindia.com
• www.sebi.com
•
www.economictimes.com
• www.nseindia.com

Books Referred:

 Investment management
-V.K.Bhalla
 Investment management
-Preethi Singh
 Security Analysis And Portfolio Management
-V.A.Avadhani
 Marketing of Financial Services
-V.A.Avadhani
 Indian Financial System
-M.Y.Khan

󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶
󰁁󰁅󰀱󰀰󰀯󰁖󰁖󰁉󰁓󰁍󰀯󰁐󰁇󰁄󰁍󰀯󰀶󰀱󰀰󰀶 󰁐󰁡󰁧󰁥 󰀵󰀹