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SYNOPSIS ON ONLINE SHARE TRADING

INTRODUCTION
Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares through a website without any manual intervention from Stock Broker. In this case these Online Stock Trading companies are stock broker for the investor. They are registered with one or more Stock Exchanges. There are two different type of trading environments available for online equity trading. Installable software based Stock Trading Terminals This trading environment requires software to be installed on investors computer. This software is provided by the stock broker. These softwares require high speed internet connection. Web (Internet) based trading application This kind of trading environment doesn't require any additional software installation. They are like other internet websites which investor can access from around the world through normal internet connection. Brokerage: It's a recurring cost and can potentially draw down returns. Every player claims that his brokerage is the lowest or at least promises to charge the minimum once an investor opens an account and starts trading. But this promise is contingent on the trading volumes of the investor. Account opening and maintenance costs: In order to trade, an investor needs to open two accounts with the brokerage firm - a demat account to keep the shares and a trading account to trade. The equity brokerage industry in India is one of the oldest in the Asia region. India had an active stock market for about 150 years that played a significant role in developing risk markets as also promoting enterprise and supporting the growth of industry. The roots of a stock market in India began in the 1860s during the American Civil War that led to a sudden surge in the demand for cotton from India resulting in setting up of a number of joint stock companies that issued securities to raise finance. 2

This trend was akin to the rapid growth of securities markets in Europe and the North America in the background of expansion of railroads and exploration of natural resources and land development. Historical records show that as early as 1864, there were about 1,000 brokers with the stock markets functioning from three places in Mumbai; between 9 am to 7 pm at the junction of Meadows Street and Rampart Row, from day break till 9 am and from 7 pm to early hours of next morning at Bazargate. Share prices rose sharply even at that time. A share of Colaba Land Company during the boom period of the 1860s rose from Rs 10,000 at par to Rs 120,000 and that of Backbay Shares went up from Rs 2,000 to Rs 54,000. Bombay, at that time, was a major financial centre having housed 31 banks, 20 insurance companies and 62 joint stock companies. Reports on stock markets around that time indicate that an ordinary broker in 1864 earned Rs 200 per day which was huge sum those days. The boom period came to an abrupt end in 1865. In Jul 1865, the share mania ended with burst of the stock market bubble. An interesting aspect is that despite the collapse of the stock market, most of the brokers met their payment commitments. In the aftermath of the crash, banks, on whose building steps share brokers used to gather to seek stock tips and share news, disallowed them to gather there, thus forcing them to find a place of their own, which later turned into the Dalal Street. A group of about 300 brokers formed the stock exchange in Jul 1875, which led to the formation of a trust in 1887 known as the Native Share and Stock Brokers Association. A unique feature of the stock market development in India was that that it was entirely driven by local enterprise, unlike the banks which during the pre-independence period were owned and run by the British.

OBJECTIVES OF THE STUDY


1. Understanding the various products, features and services provided by the companies 2. Understanding the customer satisfaction level towards various companies 3. To know the parameters which define the satisfaction for customers 4. An insight into the whole industry and knowing the problems being faced by the customers.

SCOPE OF THE STUDY


The research involves the study about online trading and how does it help the customers to work efficiently. In this project we would be covering Delhi and NCR for getting the response for our primary research. The scope of the thesis would involve studying the online trading experience of customers and how well is the online trading performing in the Indian market. The scope would also involve studying the customer satisfaction.

DESIRED AREA OF RESEARCH


The area of research would be the online share trading at different share trading companies in Delhi and NCR. We would have special emphasis on the customer experience and the customer experience.

JUSTIFICATION
I choose this topic for the study as the online share trading is the hot topic and also a topic which would interest a lot of people in the industry. I read through a lot of article on news paper about online trading and this interested me to take on this topic.

RESEARCH METHODOLOGY
Research Methodology and Data Sources: The research will start with an Exploratory Research. It included in-depth and group interviews. Exploratory Research seeks to investigate preferences and satisfaction levels of people towards various services provided by different companies in Delhi. On the basis of this research various hypothesis were framed and tested on the basis of information collected through a survey. The survey was done on the basis of a questionnaire. Sampling: Customers of the Online Trading constituted the targeted universe of the survey. The sample size of 100 will be chosen from the population that formed the target group for the survey. Sampling will be through probability method in which every element of the population known chance of being included in the sample. The reason for considering Probability Sampling is to determine the sample error associated with the sample procedure. Under probability sampling, Stratified Sampling procedure will be used against other sampling procedures. This is so because it minimizes the problem of under or over sampling and also reduces sampling error. In this method the entire population is divided into mutually exclusive and exhaustive sub-sets known as Strata. Data Collection: The questionnaires were administered through Personal as well as Telephonic Interviews. Data collection begin with a Pre-Test (Pilot testing) of the questionnaire.

CHAPTERIZATION
1. SECURITIES MARKET OF INDIA 2. SECONDARY OVERVIEW 3. ONLINE TRADING 4. PORTERS FIVE FORCES ANALYSIS 5. COMPARITIVE ASSESSMENT a) COMPANY PROFILES I. ICICI DIRECT II. INDIA INFOLINE III. SHARE KHAN IV. RELIANCE MONEY V. KOTAK SECURITIES VI. INDIA BULLS VII. MOTILAL OSWAL 6. PRODUCTS AND PRICING COMPARISON 7. PROMOTIONAL STRATEGIES 8. PRIMARY SURVEY 1. AIMS OF SURVEY 2. METHODOLOGY 3. FINDINGS 9. BIBLIOGRAPHY 10. QUESTIONAIRE

BIBLOGARPHY
1. Options, Futures, and other Derivatives by John C Hull
2.

Fratzscher, Oliver (2006), Emerging Derivative Market in Asia in EAP Flagship on Asian Financial Market and Development, World Bank Report. Available at http://siteresources.worldbank.org/EXTBANKING/Resources/Derivate-MarketsFratzscher.pdf

3.

4. Business Newspaers: Economic Times, Hindu Business Line. WEBSITES www.nseindia.com www.icicidirect.com www.exchange4media.com www.businessworldindia.com www.expressmoney.in www.hindustantimes.com www.nsdl.co.in www.sebi.gov.in www.sensex.in www.indiabulls.com www.sharekhan.com

QUESTIONNAIRE
1. Are you interested in Share Market? Yes No 2. 3. 4. 5. You are trading since how many years? More than 10 years 5-10 years 3-5 years 1-3 years Less than 1 year You are trading online since how many years? More than 5 years 3-5 years 1-3 years Less than 1 year Which online trading company do you trade with? ICICI direct since______________ India Bulls since______________ Kotak Securities since______________ Reliance Money since______________ Share Khan since______________ India Infoline since______________ IL & FS Invest Smart since______________ Religare Securities since______________ Motilal Oswal Securities since______________ Anand Rathi Securities since______________ Angel Broking since______________ BLB Limited since______________ What kind of type of trading are you into? Intraday Delivery Futures & Options

6. How often do you trade? Everyday Once/Twice/thrice in a week Once/twice/thrice in a month Quarterly Annually 8

7.

Criteria for selecting? Company/Brand Services Brokerage Basket of Products Exposure Limits Reference(colleagues/friends/family) Brand Loyalty Others

8. Please rate any or all of the five companies mentioned below based on your experience Rating from 1 to 5 1= Very Poor 2= Poor 3= Fair 4= Good 5= Excellent

PARAMETERS

I DIRECT

IBULLS

KOTA K

RMONE Y

S. KHAN

INFO LINE

RELIG ARE

IL&FS

PRODUCT BROKERAGE FLEXIBILTY IN BROKERAGE MARGIN TRADING SOFTWARE NAME USER FRIENDLY SPEED & UPDATIONS ACCOUNT OPENING PROCESS DURATION

CHARGES VALIDITY MAINTENAN CE CHARGES TRADE ADVISORY HELP TIPS & RESEARCH MAILS/SMS QUERRY AND PROBLEM HANDLING SKILLS CUSTOMER HELP CUSTOMER CARE ATTITUDE ADDRESS TO PROBLEMS SATISFACTION PAST EXPERIENCE SERVICES GIVEN VS PROMISED EXPECTATIO NS 9. What are the problems do you face in online trading with your preferred company?

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10. What kind of help and assistance and in how much time you are provided with? 11. Any comments/ suggestions / recommendations for ONLINE TRADING COMPANIES?

NAME ADDRESS PHONE NO EMAIL ADD OCCUPATION

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