PROJECT ON

“ANALYSIS OF DEMAT ACCOUNT AND ONLINE TRADING”

A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR PARTIAL COMPLETION OF THE
DEGREE OF
BACHELOR IN COMMERCE (BANKING & INSURANCE)
UNDER THE FACULTY OF COMMERCE

BY

PREM PRABHAKAR TAYDE

ROLL NO:54

UNDER THE GUIDANCE OF

Ms. PRIYANKA BHALEKAR

TOLANI COLLEGE OF COMMERCE (AUTONOMOUS)

SHER-E-PUNJAB SOCIETY,

ANDHERI (EAST),

MUMBAI-400093

MARCH 2024
 CERTIFICATE

This is to certify that Mr. Prem Prabhakar Tayde has worked and duly completed her/his
Project work for the degree of Bachelor of Commerce (Banking & Insurance) under the
faculty of Commerce in the Subject of Project work and her/his project is entitled, “Analysis
of Demat Account and Online Trading” under my supervision.

I further Certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.

It Is her/his own work and facts reported by her/his personal findings and investigations.

Dr. Ishtiyaq Ms. Priyanka

Chiplunkar Bhalekar Dr. Vasudev Iyer

BBI Co-ordinator Internal Guide External Examiner I/c Principal

Date of Submission: 5th March,2024

 DECLARATION BY LEARNER

I the undersigned Mr. Prem Prabhakar Tayde here by, declare that the work embodied in this
project work titled “Analysis of Demat Account and Online Trading”, forms my own
contribution to the research work carried out under the guidance of Ms. Priyanka Bhalekar is
a result of my own research work and has not been submitted to any University for any other
Degree/Diploma to this or any other university.

Whenever reference has been made to previous works of other, it has been clearly indicated in
the bibliography.

I, hereby by further declare that all the information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

Prem Prabhakar Tayde

Certified By

Ms. Priyanka Bhalekar

Internal Guide
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and depth is so
enormous

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chanced to do this
project.

I would like to thank my I/c Principal, DR. VASUDEV IYER for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our Co-Ordinator DR. ISHTIYAQ CHIPLUNKAR, for his
moral support and guidance.

I would also like to express my sincere gratitude towards my project Guide, Ms.
PRIYANKA BHALEKAR whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially My Parents & Peers who supported me throughout
my project.
 STUDY OF DEMAT ACCOUNT AND ONLINE TRADING
INDEX

SR. TITLE PAGE

NO. NO.

1. INTRODUCTION 1-16

2. REVIEW OF LITERATURE 17-20

3. RESEARCH METHODOLOGY 21-23

4. DATA ANALYSIS AND INTERPRETATION 24-41

5. FINDINGS, CONCLUSION AND SUGGESTION 42-44

6. REFERENCES 45-46

7. APPENDIX 47-50
 EXECUTIVE SUMMARY

A demat account, sometimes known as a "dematerialized account," is a type of electronic

account used to store and manage financial securities such as stocks, bonds, and shares. It
allows you to trade or invest in securities without the need for physical paper certificates.

An electronic account used to keep shares, stocks, bonds, and other securities in a digital
format is called a demat account. It saves investors time and money by doing away with the
requirement for tangible share certificates. Physical share certificates are transformed into an
electronic format during the dematerialization process, which facilitates their management
and transfer. Investors can open a demat account with brokerage houses, banks, or other
financial organizations. Investors can use it to electronically purchase, sell, and transfer
securities. Investors receive statements from the demat account detailing their holdings,
transactions, and other information.

On the other hand, utilizing a trading platform that a brokerage business provides, buying and
selling securities over the internet is known as online trading. You may easily manage your
investments with this method from any location with an internet connection. Using an online
trading platform provided by a brokerage business to purchase and sell securities over the
internet is known as online trading. It is quick and accessible for investors to conduct trades
from any location with an internet connection. Real-time market data, research tools, and
sophisticated trading features are all offered via online trading platforms. Online order
placement, portfolio management, and investment monitoring are all available to investors.
Order types that are supported by the online trading platform include market, limit, and stop-
loss orders. It provides a selection of investment choices, such as derivatives, exchange-
traded funds (ETFs), mutual funds, equities, and bonds. Through the online trading platform,
investors may also access customer support services and educational materials.

In summary, an electronic account known as a demat account is used to store your stocks, and
online trading refers to the act of purchasing and selling securities via the internet by utilizing
a brokerage firm's platform.
 CHAPTER 1
INTRODUCTION

DEMAT ACCOUNT

What is Demat Account? Trading in the Stock market is very common there days. More and
More People are indulging in trading and investing in the stock market. The reason for such
increase in the participation in the stock market is the opportunity to make good returns.
Thus, the first question that comes to the mind of the beginner in the stock market is how to
trade in the stock market. The answer to this question is demat account. To put it another way,
Demat Account acts as a means to trade or invest in shares or securities. Without it, no
transaction in shares or securities is possible. In this article, you will understand the basic
concept of demat account and much more.

Investing in securities is one of the few potential areas you can invest and grow your money
with only a little bit of sensible effort. To do so, you need to know and follow a set of rules
and regulations. One of the key components of understanding the concept of
dematerialization. Technology and digitalization have changed considerably and we have
benefitted from it. Stock exchanges have evolved too and stock trading has moved from
physical share certificates and hard copy ledgers to dematerialized (or demat) accounts.

Meaning of Demat Account

Demat account or dematerialized account is an account that holds the shares and securities of
an individual in an electronic form. When an individual indulges in trading or investing in
shares or securities all the transactions are done through the Demat Account. To put it another
way, just like the banks hold the money of the individuals. Similarly, the Demat Account
holds the shares and securities of the individual in the account.

A demat account is opened by the investor at the time of registering with the investment
broker or sub-broker. This account is preferred for trading (buying and selling of stocks) to
enable electronic settlements. Almost every shareholder must have this account to trade in
stocks as required under Securities and Exchange Board of India (SEBI) laws. One cannot
trade in stocks without having legitimate demat account.

1
ONLINE TRADING

Nowadays, there is no need to go a bank or post office, or even leave your house for that
matter – you can simply trade online using your home computer or mobile phone. Online
trading is simply buying and selling assets through a brokerage’s internet-based proprietary
trading platforms. The use of online trading increased dramatically in the mid-to late- ‘90s
with the introduction of affordable high-speed computers and internet connection. Stocks,
Bonds, Mutual funds, Exchange trade funds (ETF), options, futures, and currencies can all be
traded online. Also known as e-trading or self-directed investing. Today, with the advent of
the internet in the digital era, more and more investors are using online trading platforms
serve as a hub with multiple tools for the investor or trader. The investor can place buy and
sell orders; place market, limit, stop, stop-loss, and stop-limit orders; check the status of an
order; view real-time stock quotes; read news on companies; view the list of securities
currently held through the dashboard; etc. An investor can also access his or her investment
statements, confirmation statements, and investment tax forms using the online system. Most
discount brokerages that are affiliated with banks also provide added convenience for their
digital clients by linking their bank account to their investment accounts. This way, an
investor can easily intimate a transfer between accounts held under the same financial
institution.

Meaning of Online Trading

Online trading is the act of purchasing and selling financial product on the Internet. The
trader buys and sells using an online trading platform. Online trading may include trading in
bonds, stocks (shares), futures, international currencies, and other financial instruments.
Online trading has made many financial operations possible. Stock trading, currency trading,
and other trading instruments have become increasingly popular due to the easy access
provide by the online space. Years ago, only stock brokers had access to information on stock
trading. More and more individuals obtain information around the web and get involved in
online trading.

2
Dematerialization: Denotation of the Concept

Dematerialization is the process of converting physical shares into electronic format. An

investor who wants to dematerialize his shares needs to open a DEMAT account with
Depository Participant. Investor surrenders his physical shares and in turn gets electronic
shares in his DEMAT account.

Thus, the basic idea of dematerialization is to store stocks, securities and share certificates of
the account holder in an electronic form rather than keeping the said stocks, securities and
certificates in physical form.

The National Securities Depository Limited, India’s first and largest depository system,
played a pivotal role as its key purpose was to create a platform which would be similar to the
standards followed by the international market dealing with dematerialization of accounts.
Not only does the National Securities Depository Limited use versatile and innovative
technologies to ensure soundless and safety of the Indian capital market, it also creates
settlement solutions which increase the efficiency by minimizing risk and reducing costs.

The Central Depository Services (India) Ltd came into existence in the month of February
1999, which was supported by the Bombay Stock Exchange. It was an attempt to create a
joint venture with nationalized banks like Bank of India, Bank of Baroda, State Bank of India
Union Bank of India, Standard Chartered Bank as well as Housing Development Finance
Corporation. The main objective of the Central Depository Services (India) Ltd. is providing
with suitable, reliable and assured depository services to investors affordably.

Presently, almost every Nationalized Banks, as well as private banks provide the facility to
open a Dematerialization Account to every investor. As per guidelines of the Securities
Exchange Board of India, the country’s stock market regulator, every investor must a
Dematerialization Account.

The Depositories Act,1996

In the year 1995, the Depositories Ordinance was introduced which was promulgated on
January 07, 1996 as the Depositories Act of 1996 [hereinafter “Act”]. The objective of the
Act was to provide the guidelines for the formation of the depositories to record the details of
ownership in the book-entry form.

3
The Act not only provided such guidelines but also made major amendments in the following
enactments, viz.-

• Companies Act, 1996

• Securities and Exchange Board of India Act, 1999
• Indian Stamp Act, 1899
• Income Tax Act, 1961
• Benami Transactions (Prohibition) Act, 1988.

The Depositories Act,1996 was formulated and enacted for providing regulation for the
depositories and other allied matters connected thereto.

The terminologies that we usually come across while discussing the topic of
dematerialization of Shares are categorically defined under the Depositories Act, 1996.

• As per Section 2 (a) of the Act, “Beneficial Owner” means a person whose name is
recorded as such with a depository. A Beneficial Owner holds all the benefits of the
dematerialized shares.
• As per Section 2 (b) of the Act, “Board” means the Securities and Exchange Board of
India established under section3 of the Securities and Exchange Board of India Act,
1992 (15 of 1992).
• As per Section 2 (e) of the Act, “Depository” means a company formed and
registered under the companies under the
• Companies Act, 1956 (1 of 1956) and which has been granted a certificate of
registration under sub-section (1A) of section 12 of the Securities and Exchange
Board of India Act, 1992 (15 of 1992).
• As per Section 2 (g) of the Act, “Participant” means a person registered as such under
sub-section (1A) of section 12 of the Securities and Exchange Board of India Act,
1992 (15A of 1992).

Depository:

The concept of Depository is known to the world since 1949 when the first depository
was set up in Germany. There were 112 depositories in operation by the year 2001. Every

4
depository operates under a country’s specific law and regulation in order to ensure
safety, liquidity, right and liabilities to the security holders.

A depository is an organization where the securities of an investor are held in electronic

form. A depository can be compared to a bank. To avail of the services of a depository,
an investor has to open an account with the depository through a depository
participant, just as he opens an account with the bank. Holding shares in the account is
kind to holding money in the bank.

At present, India has only two depositories-National Securities Depository Ltd. (NSDL)
and Central Depository Services Ltd (CDSL).

NDSL is the depository in the country, which is promoted by three major financial
institutions – Unit Trust of India, Industrial development Bank of India and National
Stock Exchange of India Limited. The Second depository of the country (CSDL) is set up
in 1999 by the Bombay Exchange and Bank of India.

However, most of the services offered by both these depositories are similar. Today
almost all the companies listed in dematerialized from with NSDL are available with
CSDL.

BANK DEPOSITORY

Holds funds in accounts. Holds securities in accounts.

Transfers funds between accounts. Transfer without handling securities.

Safekeeping of money Safekeeping of securities

5
Depository Participant:

A depository is an agent appointed by the depository and is authorized to offer depository

services to all investors. An investor cannot directly open a Demat account with the
depository. An investor has to open his account through a DP only. The DP in turn opens
the account with the depository. The DP in turns takes up the responsibility of
maintaining the account and updating them as per the instructions given by the investor
from time to time. The DP generates and provides the holdings statement between the
investor and the depository.

The person who holds a Demat account is a beneficiary owner. In case of a joint account,
the account holders will be beneficiary holders of that joint account. The Demat account
number of the beneficiary holder(s) is known as the BO ID. A DP id is the number of the
depository participant allotted by the depository.

Opening a Demat Account:

A demat account can be opened with no shares at all. It does not require any minimum
balance. The first step towards opening a demat account is to select a Depository
Participant, fill up the account opening form, and submit the document. Having a PAN
CARD is a compulsory requirement for opening a demat account. The rest of the steps
are explained here.

• Once you submit the form, you will get a copy of rules and regulations, terms of
agreement, and the charges you will incur.
• An in-person verification is also necessary. A member of the DP staff will
contact the individual to verify the details provided in the account opening form.
• After the verification, the DP person will provide an account number or client ID.
You can also check these details by checking your account details online.
• An annual maintenance fee is paid for a demat account. This fee covers the
account transaction charges. The fee is levied for debiting securities to and from
the account on a monthly basis. The charges are subject to your choice of the DP.
Some DPs charge as per the amount of the transaction while the others charge a
flat fee which is same for every transaction. The fee can also vary on the type of

6
 transaction (buying or selling). There can be another fee for converting the share
into physical form or vice-versa.

A: Procedure for purchasing dematerialized securities

The transactions relating to purchase of securities are:

1. The investor relating to purchase of securities through a broker.

2. He pays the broker who then arrange payment to the clearing corporation on the pay
in day.
3. The broker receives credit of securities in his clearing account (clearing member
pool account) on the pay-out day.
4. Broker gives instructions to its DP to debit clearing account and credits the investor’s
account.
5. The investor receives shares into his account. If standing instructions are not given at
the time of opening the account, the investor has to give ‘Receipt Instructions’ to
the Depository Participant for receiving credit
6. The investor has to ensure that the broker transfers the securities from his clearing
account to the investor’s depository account before book closure. If the securities
remain in the clearing account of the broker. The company would give corporate
benefits (dividend or bonus) to the broker. In that case, the investor will have to
collect the corporate benefits from the broker.

B: Procedure for sale of dematerialized securities

1. The investor sells the securities in any of the stock exchanges linked to the
National Securities Depository Limited (NSDL) through a broker.
2. He has to instruct his Depository Participant (DP) to debit his account with the
number of securities sold and credit broker’s clearing account.
3. The delivery instruction has to be given by the investors to his DP using the
delivery instruction slips, received by him at the time of opening the demat
account from the DP.
4. Before the pay-in-day, the investors broker gives instructions to its DP for
delivery to clearing corporation.

7
 5. The investor receives payment from the broker for the sale of securities.

BENEFITS OF DEMATERIALIZATION ACCOUNT

1. Safety: if we holding our shares, bonds etc. in physical (paper) form, there are
chances of its theft, mutilation, and loss. Moreover, we are also exposed to the risks of
fake papers, bad-delivery or delays at the time of transfer of physical securities.
However safely and securely.
2. Convenience: when we want to sell our dematerialized shares or redeem our
debentures in DEMAT account; there are no hassles of filing up transfer forms,
sending redemption requests or any other messy, costly and time-consuming paper
work. We can conveniently transfer our securities through electronic transfers or just
by signing one ’Delivery Instruction Slip’, which is nothing but our cheque book is
for DEMAT Accounts.
3. Common Bank: Dematerialization does not only help in trading stocks. It works for
debt instruments like bonds as well as mutual funds. An investor can hold all his
investments in a single demat account.
4. Automatic Updates: Despite being a common account for all your securities
truncations, you do not have to provide your details every time you deal with a
company. Your demat account represents you and has all the necessary information
regarding the transaction.
5. Odd-Lot Problem Resolved: This was a big obstacle in resolving the statements as
share were sold in lots. Buyers and sellers could not transact a single or odd number
of securities. Demat account has solved this problem and investors can trade any
number of shares they want.
6. Delivery Risks: With no paperwork, involved, the risk of fake shares, theft, and
wrong deliveries have also been eliminated. This is perhaps one of the biggest
benefits of the electronic trading process. The system will always credit securities in
the right demat account automatically, regardless of number and type of shares. This
applicable to other share transactions such as stock splits and stock bonuses as well.
7. Cost Reduction: A demat account does not require stamp duty for securities. This
has resulted in significant cost reduction. Earlier, the stamp duty was 0.5% for each
stock that can be avoided completely through dematerialization.

8
 TYPES OF DEMAT ACCOUNT:
1. Regular Demat Account:
Traders who reside in India use this type of account. Prior to BSDA, all investors
were required to open regular demat account. The charges and services of regular
demat services are more compared to BSDA. AMC are levied on all categories of
investors from small to high-value investors.
2. BSDA (Basic Services Demat Account):
This account type is designed for small investors. It provides limited basic services to
small investors with reduced charges. Any individual who has Demat Account or
plans to open an account where he is the sole holder can open an account under
BSDA. Under this plan, BSDA holders are not charged AMC if the value of securities
is under Rs. 50000 and if the value of securities is in the range of Rs. 50000-200000;
it would attract AMC of Rs.100. Anything above Rs.200000, then the account will be
treated as Regular Demat Account and charges will be levied accordingly.

3. Repatriable Demat Account:

This is a Demat Account which is useful to the Non-Resident Indians as it allows fund
transfers abroad. Such a demat account requires an associated NRE bank account.
4. Non-Repatriable Demat Account:
This account, too, is for the Non-Resident Indians. However, in this case, funds
cannot be transferred abroad, and this account requires an associated NRO bank
account.

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. When internet has affected all sectors, he could “stock
markets” the most important player of the economy, has remained far behind? Like all
other sectors internet has set its feet in the stock markets also. The stock market

9
 system provides single, nationwide securities. It enables LAN investors in one part of
the country to trade at the best quotes with an investor located in any other part of the
country through the member of the stock exchange and subsequently clears and settle
the trade in an efficient and costeffective manner. The primary objective of the stock
market is to provide clear opportunity to the investors throughout the country to trade
any security irrespective of the size of the order or the broker through whom the order
is routed. This provides the facility to execute the buy order at all lowest price in the
stock market located anywhere in the country without any extra cost to the investors.
There is will be no trading floor in the exchange. Instead, each trading member will
have a computer at its own office anywhere in India which will be connected to the
central computer system at the NSE through leased line or VSATs (very small
aperture terminals), for an interim transition period of 6 months & subsequently by
satellite link. VSATs are relatively smaller dishes similar to dish antenna for cable TV
& have the benefit of not being very nation quickly as it is easy to install, as against
the ground lines such as dial up modems leased lines, which are prone to disruptions,
satellite links, on the other hands ensure high speed, availability and quality of the
connection. This mode of trading is known as “Online Trading”

ONLINE TRADING by NSE & BSE:

The central computer located at the Exchange is connected to the workstations of the
Brokers through satellite using Very Small Aperture Terminals (VSATs). Orders
placed at based on price and time priority. Both the exchanges have switched over
from the open outcry trading system to a fully automated computerized mode of
trading known as BOLT (BSE On Line Trading) and NEAT (National Exchange
Automated Trading) system. It facilitates more efficient processing, automatic order
matching, faster execution of trades and transparency. The scrips traded on the BSE
have been classified into ‘A’, ‘B’, ‘C’, ‘F’, and ‘Z’ groups.

The ’A’ group shares represent those, which are in the carry forward system (Badla).
The ‘F’ group represents the debt market (fixed income securities) segment. The ‘Z’

10
 group scrips are the blacklisted companies. The ‘C’ group covers the odd lot securities
in ‘A’, ‘B1’ & B2’ groups and right renunciations. Key regulator governing Stock
Exchanges, Brokers, Depositories, Depositories Participants, Mutual Funds, FIIs and
other participants in Indian secondary and primary market is the Securities and
Exchange Board of India (SEBI) Ltd.

Objectives of Present Trading System:

➢ Reduce and eliminate operational inefficiencies inherent in manual system.

➢ Increased trading capacity in Stock Market Improve market transparency.
➢ Eliminate unmatched trades and delayed reporting Provide for on-line and off-line
monitoring control and surveillance of the market.
➢ Promote fairness and speedy matching Smooth market operations using
technology while returning the flexibility of conventional treading practices.
➢ Set up various limits, rules and controls centrally.
➢ Consolidate the trades data on electronic media to interface will the broker’s
backoffice system.
➢ Provide information on scrip prices, indices for all users of the system.
➢ Provide analytical data for use of Stock Market.

BENEFITS OF ONLINE TRADING:

▪ 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 before enjoyed only by the big prayers. 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
rupee price averaging whatever be your buying power.

11
 ▪ 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 handling
over these slips and consequent costs.
▪ 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.

▪ EASE OF TRADE:
It is 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 his investors.

TYPES OF ONLINE TRADING

1. DAY TRADING
Day Trading is one of the most common forms of trading. It’s a short-term strategy
where you buy and sell securities on the same day. Traditionally this type of trading
was normally carried out by professional traders. In recent year’s improvements in
technology and the emergence of a wide range of online CFD trading websites means
non-professional traders can also trade in these types of securities. Different types of
Day Trading take place, with different traders specializing in certain areas. The most
common types of day trading strategies include the following:
• Price Action Trading
• Scalping
• Rebate Trading
• Arbitrage

12
 • Momentum Day Trading
• Market Making
• News Trading/ playing
• Pattern Trading

2. POSITION TRADING:
Position trading is a long-term strategy where traders buy and hold securities for
longer periods of time. This type of trading often involves keeping securities for
weeks and even months. The decisions to buy and sell are normally, based on
extensive research of market trends and predicting changes in the market in the future.
The trader buys at the beginning of a trend and sells when the trend reaches is height.

3. SWING TRADING:
During certain stages of a trend, Swing Trading Often takes place. This type of trading
takes advantage of the price ‘swings’ that occur during certain stages of the lifecycle
of a particular trend. Traders try to predict highs and lows during a trend based on
their research and data they collect for a specific security. Unlike day trading, Swing
Trading involves keeping trades for more than a day to maximize the gains made
when a trend gains momentum. Once again, this type of trading depends on a trader’s
judgment and accuracy of data, they base their decisions on.

4. SCALPING:
Scalping is a fast way to trade. With this trading method, traders take advantage of
gaps created by bidding and asking spreads and orders flows. A profit is made by
selling at an asking price that’s higher than the spread or buying price of a security.
The fact that this is a short-term strategy reduces the risk taken by traders. More often
than not, Scalping involves smaller amounts, smaller profits per trade and more
frequent trading by traders who are also known as scalpers.

13
 5. ONLINE CFD TRADING:
CFD’s or contracts for Difference products let traders speculate on the price
movements of various types of stocks on the market. When you’re trading CFD
products you don’t own the stock. You simply buy the right to calculate on its market
price change in the future which could result in a rise or fall in value.

PROCESS OF ONLINE TRADING:

➢ Selection of a broker:
The buying and selling of securities can only be done through SEBI registered
brokers who are members of the Stock Exchange. The broker can be an
individual, partnership firms or corporate bodies. So, the first step is to select a
broker who will buy/sell securities on behalf of the investor or spectacular.

➢ Opening Demat Account with Depository:

Demat Account refers to an account which an Indian citizen must open with
Depository Participant (banks or stock brokers) to trade in listed securities in
electronic form. Second step in trading procedure is to open a demat account.

➢ Placing an Order:
After opening Demat Account, the investor can place the order. The order can
be placed to the broker either (DP) personally or through phone, email, etc.
Investor must place the order very clearly specifying the range of price at
which securities can be bought or sold.

➢ Executing the Order:

As per the Instructions of the investors, the broker executes the order i.e., he
buys or sells the securities. Broker prepares a contract note for the order
executed. The contract note contains the name and the price of securities,
name of parties and brokerage (commission) charged by him. Contract note is
signed by the broker.

14
 ➢ Settlement:
This means actual transfer of securities. This is the last stage in the trading of
securities done by the broker on behalf of their clients.

REASONS FOR ONLINE TRADING:

Each investor has one or other reasons to go for online trading instead of offline
trading. They are as follows:
1. They are independent. They fell they have control over their account; can
make their own decisions and don’t have to give reasons for their actions.
2. They have a reason to participate in the stock market and learn about it.
3. They find it interesting, cheap, easy, and fast and convenience.
4. A lot of information is online so they can keep up-to-date with what is
happening in the trading world.
5. They are sure and overconfident.

REASON FOR THE EMERGENCE OF ONLINE TRADING IN INDIA

The reasons for providing online trading facility to investors by the Indian companies
are various. They are as follows:

1. Online trading has a very good future in India as it is not exploited properly so far.
2. Consistent increase in the number of users of interest.
3. Consistent increase in the number of personal computer users.
4. Part of diversification.
5. Less investment in technology and other areas compared to the returns.
6. More awareness in investors about the stock market.
7. The increasing internet penetration in India has made it easier for people to access
online trading platforms and execute trades from the comfort of their homes or
offices.
8. Online trading offers a high degree of convenience as traders can access the markets
anytime, anywhere using a computer or a mobile device.

15
9. Online trading has significantly lowered the cost of trading in the stock market by
eliminating the need for intermediaries such as brokers and sub-brokers. This has
made it more affordable for retail investors to participate in the stock market.
10. Online trading platforms provide real-time market data and prices, enabling investors
to make informed decisions and execute trades with transparency.
11. Online trading platforms offer access to global markets, allowing investors to trade in
international stocks and diversify their portfolio.
12. Online trading offers faster and more efficient trade execution as orders are processed
electronically, reducing the time taken for trade settlement and minimizing errors.
13. The Indian government has implemented regulations to encourage the growth of the
online trading industry, making it easier for online brokers to offer their services to
investors.

16
 CHAPTER 2
REVIEW OF LITERATURE

This section covers the review of literature of some of the important studies, research papers,
various national as well as international journals, published articles in various official
standard books & referring to various websites on the internet on different aspects of
Depository system:

Bhatt & Bhatt (2012) in their paper entitled “Financial Performance Evaluation of
depositories in India (A comparative study of NSDL & CDSL)” explores the fact that the
trend of automation especially, Dematerialization, has enabled the Indian capital market to
take the world centre stage & scale to unprecedented heights, Securities market in India has
grown exponentially. The analysis of the progress of NSDL & CDSL in economic terms
clearly reveals that both the depositories have shown a remarkable progress in terms of
DEMAT accounts; DEMAT value & quantity, settlement value and quantity and the number
of depository participants. Their study reveals that both the depositories have been working
financially smoothly over a period of last six financial years.

Chaudhary & Malik (2011) in their paper “depository system in India: An appraisal” states
that majority of the participants are resided NSDL with stake of 55 percent. Thus, it acts as
the primary organization with the majority of participants in the system. Further the paper
analysis concludes that the respondents have no cleat & crisp idea regarding the services
offered by the DPs their clients. In order to overcome geographical & time barriers formal &
informal communication need to be developed. The majority of respondents were
comfortable with the prevailing fee structure followed by NSDL is benevolent.

George (1996) in his article “Towards a paperless settlement system” explains about the role
of the NSDL in revolutionizing the paperless stock settlement system in the country. He has
examined steps taken by the depository to ensure that the scripless trading system in a
success. He has also stressed the importance of the role of regulatory body in making the
depository system successful.

Jeyanthi (2007) in his research work “A study on National Stock Exchange of India Limited”
has highlighted that the NSE has created a niche for itself not only in the national arena but
also in the international market with the adaption of required structural changes. Therefore,

17
there is no doubt that NSE will be an attractive destination for the national & international
investors to park their funds in the years to come.

Javaid (2003) in his thesis “A study of operations of stock exchanges with the special
reference to Delhi Stock Exchange” discussed that Indian Stock Market has emerged as a
major source of finance for the corporate sector. It is an institution evolved in the industrial
developed capitalistic economies with free market mechanism. Stock exchange was termed as
institutional allocator of resources par excellence.

Kaur (2013) in her paper “Investors preference between DEMAT & REMAT and awareness
regarding depository & its various laws” explains the depository system in India, focusing on
the reasons for investors preference between REMAT & DEMAT. To sum up she concludes
that the growth rates of DEMAT account holder is increasing over years. The Indian system
of capital market is two tier system- Indian government allows holding securities in any form
i.e., either in physical securities or in electronic (DEMAT) form. The respondents feel that the
dematerialization provides enough services & it is convenient to use. Majority of people are
shifting towards dematerialization as compared to the past history & study.

Olekar & Talwar (2013) in their paper “Online trading & DEMAT account in India- Some
issues” observed that the banks normally levy a lower service charge compared to other
depository participant. He also found that when the numbers of users are more online. The
speed of transactions is affected.

Rao (1995) in his paper “Depository system: A boon for India capital markets” holds the
view that the introduction of depositories would improve the market efficiency. It is also
expected to arrest the prolonged depression in the stock market. The paper analysis shows the
manner in which the depository would help to receive the stock market. To sum up, he states
that the eligibility criteria will require companies to improve their internal systems. He is
hopeful that depository system will bring a sea change in corporate democracy, particularly in
corporate management, price discovery in market place & proxy exercise etc.

Sahoo (1995) in his article “The depositories ordinance, 1995 explained” has explained the
provision of Depositories Ordinance 1995, which provides a legal basis for the establishment
of depositories in securities with a view to ensure free & expeditious transfer of securities.

Singh & Goyal (2011) in their paper entitled “Analysis for affecting the Decision Making of
the Investors in Depository System” holds the view that most of the investors think that the

18
shorter settlement period, safety if securities provided by the DPs to the investors, reduction
in transaction costs, repatriation of sales proceeds of shares/ debentures are some of the
factors which affects the decision making of the investors in depository system. Opening
DEMAT account with DP is easy but they charge for providing this service. The education of
the investors plays an important role in decision making where the difference in the opinion
of the investors of found significant in most of the cases followed by other such as
occupation, age etc.

Sandeep Srivastava, Surendra S Yadav and P K Jain (2008) on “Derivative Trading in

Indian Stock Market: Broker’s Perception” found that high net worth individuals and
proprietary traders contribute to the major proportion of trading volumes in the derivative
segment. The survey also revealed investors are using these securities for risk management,
profit enhancement, speculation and arbitrage. It also emphasized to popularize option
instruments because they may prove to be a useful medium for enhancing retail participation.

A study by Gupta and Aggarwal (2012) found that the awareness and perception of
investors towards demat accounts and online trading have increased significantly in India
over the years. This is due to the convenience, security, and efficiency of demat accounts and
online trading platforms.

Another study by Rana and Pandey (2015) analysed the impact of online trading on the
Indian stock market. The study found that online trading has increased trading volume,
liquidity, and efficiency of the market. It has also made trading accessible to a wider range of
people and resulted in increased competition among online brokers, leading to lower
transaction costs and better services for investors.

A study by Kar (2018) explored the impact of demat accounts on the Indian capital market.
The study found that the introduction of demat accounts has led to increased transparency,
efficiency, and convenience of holding and trading securities. It has also reduced the risk of
fraud and malpractices associated with physical share certificates.

Mishra and Singh (2013) conducted a study on the importance of demat accounts in the
Indian capital market. The study found that demat accounts have improved the speed,
accuracy, and efficiency of settlement and delivery of securities. It has also made the process
of holding and trading securities more convenient and secure.

19
A study by Gupta (2011) explored the concept of online trading and its impact on the
financial markets. The study found that online trading has provided investors with easy access
to real-time market information and analysis, leading to increased participation in the
financial markets. It has also led to increased competition among brokers, resulting in lower
transaction costs and better services for investors. In conclusion, the literature review
suggests that demat accounts and online trading have brought significant benefits to
investors, including convenience, security, efficiency, and accessibility. These technologies
have also led to increased competition among brokers, resulting in lower transaction costs
and better services for investors.

20
 CHAPTER 3

RESEARCH METHODOLOGY

INTRODUCTION

A crucial component of any economic investigation is the use of appropriate and sound
technique. The scope of the study, questionnaire design, sample strategies, data collecting,
data analysis, and at the end, data presentation and interpretation are all included. This study
employs many research methodological components.

Data collection

The act of obtaining and assessing data on certain variables inside a pre-existing system in
order to assess results and provide pertinent answers is known as data collection. Research in
all fields of study involves gathering data. The researcher gathered primary and secondary
data while working on a study on the financial analysis of the automotive industry.

Collection of primary data: One complex questionnaire is used to gather the study's primary
data from the respondents. A small sample of respondents from the chosen sample were
covered in the pilot survey, which helped determine the final instruments to be utilized in the
investigation of respondents toward the "To Study the Investors Perception towards
Retirement Planning" questionnaires. The required modifications were made to the
questionnaire in light of the findings and experiences of the pilot survey. This stage of the
research process has been very helpful in improving the schedules' content in accordance
with the goals established for the investigation.

Collection of secondary data: The primary component of the investigation and a key
component of the operational strategy for the whole study design is the process of obtaining
accurate and significant data. Research reports, published books, journals, bulletins, and the
internet are the sources of the secondary data. Secondary data collection was aided by the
Mumbai University library, college libraries, public libraries, and online libraries.

21
Objective of Research

- To study the concept of demat account and online trading

- To study the attitude of investors towards demat account and online trading

- To know the procedures of opening demat account

- To identify the awareness level of customers regarding online trading

- To understand the factors influencing investment decision

- To analyse the role of share brokers in demat account and online trading

Hypothesis

1. H0: There is no significant difference in Demat Account and Online Trading.

H1: There is significant difference in Demat Account and Online Trading.
2. H0: Trading online in a demat account typically yields no profit at all.
H1: Online trading in a demat account does not typically result in a zero profit.

Scope of Study

➢ It provides a complete knowledge of various fundamental concepts of share

market and online trading.
➢ It will help in analysing the behaviour of consumers.
➢ It will help in knowing the parameters of investment on which they would like to
invest.
➢ From the study I have learned very much, about online trading and demat account.

Limitations of Research

➢ I was not able do survey in every area.

➢ Many traders and consumer were not revealing their investment as they were not
trusting.
➢ Sample size is limited to only 70 people.

22
 ➢ I was unable to survey to actual who trade and use demat account.
➢ I was only able to survey in limited locality which is near my house.

Sample size

Using the proper statistical methods and taking into account the population size, confidence
level, and margin of error, the sample size will be established. For accurate findings, a sample
size of at least 70 responses is advised.

23
 CHAPTER 4
DATA ANALYSIS, INTERPRETATION AND PRESENTATION

1. Gender

➢ Male
➢ Female
➢ Prefer not to say

Particulars % No. of Responses

Male 45.3% 24
Female 54.7% 29
Prefer not to say 0 0

Analysis:

The analysis show that blue colour represents 45.3% male and red colour represents 54.7%
female.

24
 2. Age

➢ 18-25
➢ 26-40
➢ 40-60

Particulars % No. of Responses

18-25 94.3% 50
26-40 0 0
40-60 5.7% 3

Analysis:

There are 3 age groups:

1. 94.3% responses are from 18-25 years age group.

2. 0 responses are from 26-40 years age group.
3. 5.7% responses are from 40-60 years age group.
3. Qualification

➢ Under Graduate

25
 ➢ Graduate
➢ Post Graduate

Particulars % No. of Responses

Under Graduate 69.8% 37

Graduate 28.3% 15
Post Graduate 1.9% 1

Analysis:

1. 69.8% of respondents are under graduate.

2. 28.3% of respondents are graduate.
3. 1.9% of respondents are post graduate.

26
 4. What is your occupation?

➢ Student
➢ Business
➢ Service
➢ Farming

Particulars % No. of Responses

Student 75.5% 40
Business 5.7% 3
Service 18.9% 10
Farming 0 0

Analysis:

1. 75.5% of respondents are students.

2. 5.7% of respondents are small businessmen who want to invest in it
3. 18.9% of respondents are doing service.
4. From my surveyed no one from farming sector.

27
 5. What is your annual income?

➢ Below 2 lakhs
➢ 2-5 lakhs
➢ 5-10 lakhs
➢ Above 10 lakhs

Particulars % No. of Responses

Below 2 lakhs 66% 35

2-5 lakhs 17% 9
5-10 lakhs 13.2% 7
Above 10 lakhs 3.8% 2

Analysis:

1. Maximum sample size of people surveyed has annual income below 2 lakhs is 66%.
2. Annual income of 2-5 lakhs people is 17%.
3. People from 5-10 lakhs their annual income is 13.2%.
4. Remaining 3.8% people is from above 10 lakhs annual income.

28
 6. Are you aware about online trading?

➢ Yes
➢ No
➢ Maybe

Particulars % No. of Responses

Yes 94.3% 50
No 3.8% 2
Maybe 1.9% 1

Analysis;

1. 94.3% people are aware about online trading.

2. 3.8% people are not aware about online trading.
3. Remaining 1.9% of people are maybe aware about online trading.

29
 7. Do you have Demat Account?

➢ Yes
➢ No

Particulars % No. of Responses

Yes 60.4% 32
No 39.6% 21

Analysis:

1. 60.4% are having demat account.

2. 39.6% are not having demat account.

30
 8. Do you invest in share market?

➢ Yes
➢ No

Particulars % No. of Responses

Yes 62.3% 33
No 37.7% 20

Analysis:

8. 62.3% people are investing in share market.

9. 37.7% people are not investing in share market.

31
 9. What type of trading do you generally do?

➢ Intraday
➢ Delivery
➢ Both
➢ NA

Particulars % No. of Responses

Intraday 26.4% 14
Delivery 28.3% 15
Both 18.9% 10
NA 26.4% 14

Analysis:

1. 26.4% of people trade intraday type of trading.

2. 28.3% of people trade delivery type of trading.
3. 18.9% of people trade in both terms.
4. 26.4% of people are not trading in any of this type.

32
 10. How much amount do you prefer to invest?

➢ Less than 10000

➢ 10000-20000
➢ 20000-50000
➢ Above 50000

Particulars % No. of Responses

Less than 10000 67.9% 36

10000-20000 26.4% 14
20000-50000 3.8% 2
Above 50000 1.9% 1

Analysis:

1. 67.9% of people invest less than 10000 in shares.

2. 26.4% of people prefer to invest 10000-20000 in shares.
3. 3.8% of people prefer to invest 20000-50000 in shares.
4. 1.9% of people prefer to invest in above 50000.

33
 11.What time period do you prefer in investment?

➢ 1 month
➢ 2 months
➢ 3-6 months
➢ More than 6 months

Particulars % No. of Responses

1 month 37.7% 20
2 months 17% 9
3-6 months 22.6% 12
More than 6 months 22.6% 12

Analysis:

1. 37.7% of people prefer to invest for 1 month.

2. 17% of people prefer to invest for 2 months.
3. 22.6% people prefer to invest for 3-6 months.
4. 22.6% people prefer to invest for more than 6 months.

34
 12.Name the company with which you are making investment.

➢ Share Khan
➢ India Bulls
➢ Reliance Money
➢ Other
➢ NA

Particulars % No. of Responses

Share Khan 11.3% 6

India Bulls 24.5% 13
Reliance Money 43.4% 23
Other 37.7% 20
NA 22.6% 12

Analysis:

1. 11.3% of people trade with Share Khan.

2. 24.5% of people trade with India Bulls.
3. 43.4% of people trade with Reliance Money.
4. 37.7% of people trade with other companies.
5. 22.6% of people are not trading with any of the company.

35
 13. Is online trading preferable for you?
➢ Yes
➢ No
➢ Maybe

Particulars % No. of Responses

Yes 56.6% 30
No 11.3% 6
Maybe 32.1% 17

Analysis:

1. 56.6% people say that online trading is preferable to them.

2. 11.3% of them are not preferable.
3. 32.1% people are saying that they are not sure about online trading.

36
 14. What is biggest problem do you face in online trading?

➢ Lack of knowledge or experiences

➢ Unsatisfactory services of broking firm
➢ Marketing uncertainty
➢ Charges by broking firms
➢ Other

Particulars % No. of Responses

Lack of knowledge or 60.4% 32

experiences
Unsatisfactory services of 32.1% 17
broking firm
Market Uncertainty 9.4% 5
Charges by broking firms 26.4% 14
Other 17% 9

Analysis:

60.4% of people assume that lack of knowledge or experiences is the major problem in online
trading where other say that the unsatisfactory services of broking firm, marketing
uncertainty & charges by broking firms respectively. Some people have other problem in
online trading.

37
 15. Are you satisfied with online trading?
➢ Yes
➢ No
➢ Maybe

Particulars % No. of Responses

Yes 50.9% 27
No 17% 9
Maybe 32.1% 17

Analysis:

1. 50.9% of people say that they are satisfied with online trading.
2. 17% of people are not satisfied with online trading.
3. 32.1% of people who don’t trade assume that online trading maybe suitable for them.

38
 16.Do you get the proper facility by your trading firm or company?

➢ Yes
➢ No
➢ Maybe

Particulars % No. of Responses

Yes 43.4% 23
No 15.1% 8
Maybe 41.5% 22

Analysis:

1. 43.4% of people say that they are provided proper facility by their trading firm or
company.
2. 15.1% of people do not get their proper facility by their company.
3. 41.5% of people think that the company may or may be not provide proper service to
the trader.

39
 17.Do you get proper returns by investing in share market?

➢ Yes
➢ No
➢ Maybe

Particulars % No. of Responses

Yes 35.8% 19
No 13.2% 7
Maybe 50.9% 27

Analysis:

1. 35.8% of people receive proper returns by investing in share market.

2. 13.2% of people don’t receive proper returns by investing in share market.
3. 50.9% of people think sometimes they receive good return and sometime not.

40
 18.Your opinion on online trading.

➢ Useful
➢ Somewhat Useful
➢ Not Useful

Particulars % No. of Responses

Useful 50.9% 27
Somewhat Useful 43.4% 23
Not Useful 5.7% 3

Analysis:

1. 50.9% of people say that online trading is useful.

2. 43.4% of people say that online trading is somewhat useful.
3. 5.7% of people say that online trading is not useful.

41
 CHAPTER 5
FINDINGS, CONCLUSION & RECOMMENDATION

FINDINGS

Online trading has made it more convenient for investors to buy and sell securities from
anywhere, at any time.

Online trading is much faster than traditional trading methods as it allows for real-time
transactions, which can be executed in a matter of seconds.

Online trading platforms usually charge lower fees and commissions than traditional brokers,
making it a cost-effective option for traders.

The online trading platform provides traders with access to real-time market information and
prices, which helps them make informed trading decisions.

Demat accounts provide a safer and more secure way to hold securities, as there is no
physical delivery of the shares. This reduces the risk of theft, loss, or damage.

Online trading has enabled more individuals to participate in the stock market, which was
previously dominated by institutional investors.

42
CONCLUSION

➢ Most of the people are aware of online trading.

➢ Most of the traders consider unsatisfactory services of broking firm as biggest problem in
trading.
➢ Most of people are having demat accounting and online trading.
➢ 50% of my sample size are not investing in share market.

➢ Equal numbers of people in sample size do intraday and delivery trading and most of them
do both intraday as well as delivery trading.
➢ According to my selected sample of group, 75% people prefer to invest less than 10k and
some of them prefer to invest more than 10k but less than 20k.
➢ Many people of my sample group would invest money.

➢ Many people of my sample group would invest money for 1month, some for 3 months,
and some for more than 6 months and very few for 3 to 6 months.
➢ More than 50% of me sample size thinks that online trading is preferable.
➢ Lack of knowledge and experiences is the biggest problem faced by a trader while doing
online trading.
➢ Many people get proper facility by their trading firm or company.

➢ Almost every people of selected sample group say that online trading is useful.
➢ Demat accounts have made the holding and trading of securities more convenient, secure
and efficient. Meanwhile, online trading platforms have made investing more accessible to a
wider range of people, with real-time market information and analysis at their fingertips.
➢ investors should also be aware of the risks involved in trading and should conduct
thorough research before making investment decisions.
➢ It is important to choose a reliable online broker and to keep updated with the latest
market developments to make informed investment decisions.

43
SUGGESTIONS

➢ As online trading is useful people should start doing online trading.

➢ Every people should have knowledge and experience in online trading.

➢ People should have demat account for online trading.

➢ People should start doing online trading.

➢ It is important to choose a reliable online broker and to keep updated with the latest
market development to make informed investment decisions. Online trading has made it easy
to trade in the stock market as now people can trade while sitting at their home. Now stock
market is easily accessible by the people.
➢ There are some problems while doing the trade through the internet. Major problems faced
by online trader is that the investors are loyal to their traditional brokers, they rely upon the
suggestions given by their brokers.
➢ Another major problem is that the people don’t have full knowledge regarding online
trading.
➢ They find it difficult to trade themselves, as a wrong entry made by them, can being them
huge losses.

44
 CHAPTER 6
BIBILOGRAPHY

• Securities and Exchange Board of India (SEBI) - https://www.sebi.gov.in/

• National Securities Depository Limited (NSDL) - https://nsdl.co.in/
• Central Depository Services Limited (CDSL) - https://www.cdslindia.com/
• Online Trading Academy - https://www.tradingacademy.com/
• Here are some references and sources that can provide more information on demat accounts
and online trading:
• "What is a Demat Account?" by The Economic Times. Available at:
https://economictimes.indiatimes.com/definition/demat-account
• "Demat Account: Meaning, Charges, Benefits, How to Open a Demat Account," by Grow.
Available at: https://groww.in/p/demat-account/
• "Online Trading Definition," by Investopedia. Available at:
https://www.investopedia.com/terms/o/online-trading.asp
• "SEBI Guidelines for Demat Account," by Karvy Online. Available at:
https://www.karvyonline.com/knowledge-center/article/sebi-guidelines-for-demat-account
• "Benefits of Online Trading," by Charles Schwab. Available at:
https://www.schwab.com/resource-center/insights/content/benefits-of-online-trading

• Chaudhary, K., & Malik, R. K. (2011). Depository system in India: An

appraisal. International Journal of Research in Social Sciences, 1(1), 207-220.
• George, P. (1996). Towards a Paperless Settlement System. Business World, October, 134-
135.
• Javaid, M. (2002). A study of operations of stock exchanges with special reference to Delhi
stock exchange.
• Kaur, I. (2013). Investors preference between DEMAT and REMAT and Awareness
regarding depository and its various laws. International Journal of Business and Management
Invention, 2013; II (5): 45-47. Books: 1. Beri G. C Marketing research.
• Olekar, R. O., & Talawar, C. Y. (2013). Online Trading and DEMAT Account in India-
Some Issues. International Journal of Management and Social Sciences Research, 2(4), 83-
88.

45
• Singh, S., & Goyal, S. (2011). Analysis of factors affecting the decision making of the
investors in depository system. Journal of Banking Financial Services and Insurance
Research, 1(3), 13-38.
• Gupta, N. K. (2011). Online Trading. International Journal of Engineering and Management
Research, 1(2), 1-7.
• Gupta, P., & Aggarwal, V. (2012). A Study on Investor Awareness and Perception Towards
Demat Account and Online Trading. International Journal of Research in Management and
Business Studies, 1(3), 1-6.
• Kar, S. (2018). Impact of Demat Account on the Indian Capital Market. International
Journal of Accounting and Financial Management Research, 8(4), 1-11.
• Mishra, D. K., & Singh, S. (2013). Demat Account: A Study on Its Importance in Indian
Capital Market. International Journal of Business and Management Invention, 2(5), 1-9.
• Rana, S., & Pandey, A. (2015). An Empirical Study of Online Trading in Indian Stock
Market. International Journal of Research in Management and Business Studies, 2(5), 1-8

46
 CHAPTER 7
APPENDIX

1. Gender
• Male
• Female
• Prefer not to say

2. Age
• 18-25
• 26-40
• 40-60

3. Qualification
• Under Graduate
• Graduate
• Post Graduate

4. What is your occupation?

• Student
• Business
• Service
• Farming

5. What is your annual income?

• Below 2 lakhs
• 2-5 lakhs
• 5-10 lakhs
• Above 10 lakhs

47
6. Are you aware about online trading?
• Yes
• No
• Maybe

7. Do you have Demat Account?

• Yes
• No

8. Do you invest in share markets?

• Yes
• No

9. What type of trading do you generally do?

• Intraday
• Delivery
• Both
• NA

10. How much amount do you prefer to invest?

• Less than 10000
• 10000-20000
• 20000-50000
• Above 50000

11. What time period do you prefer in investment?

• 1 month
• 2 months
• 3-6 months
• More than 6 months

48
12. Name the company with which you are making investment?
• Share Khan
• India Bulls
• Reliance Money
• Other
• NA

13. Is online trading preferable for you?

• Yes
• No
• Maybe

14. What is biggest problem do you face in online trading?

• Lack of knowledge or experiences
• Unsatisfactory services of broking firm
• Marketing uncertainty
• Charges by broking firms
• Other

15. Are you satisfied with online trading?

• Yes
• No
• Maybe

16. Do you get the proper facility by your trading firm or company?
• Yes
• No
• Maybe

49
17. Do you get proper returns by investing in share market?
• Yes
• No
• Maybe

18. Your opinion on online trading.

• Useful
• Somewhat useful
• Not useful

50