Online Trading at Stock Market in india

7/30/2019 Online Trading at Stock Market in india

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SUMMER TRAINING PROJECT REPORT

ON

A Study on Online Share Trading At Nirmal Bang

Prepared and presented to

UNDER THE GUIDANCE OF

COMPANYS GUIDE NAME: FACULTY NAME:

Mr. AMIT KUMAR SINGH Mr.Prashant Mahanty

RELATIONSHIP MANAGER

BY

SWARUP GHOSH

Roll no: 5123611019

RAIPUR INSTITUTE OF TECHNOLOGY

Mandir Hasaud,Raipur


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PREFACES:

In the economy for tightening Business nuts and bolt of any company industries or enterprises it

is necessary to measure it market position in a certain time interval with ever changing theoriesand the concept of market.

For this assessment we need the robust methodology of survey. Although surveys does not

reveal the absolute solution of any objectives, but it provides the inclination towards a good

output.

Nirmal Bang a good share trading company in Indian market. In this project we compare the

future of this company. Find the awareness level, market potential of this company etc.

The preparation of this report provides you great pleasure in releasing our work and market

experiences in few pages which shows overall and experienced knowledge and the practical

approach about the style of a professional and thing which we found various affecting to our

marketing and product image.

The project termed as Stock Exchange & Online Share Trading at Nirmal Bang has made

an effort to find out the issues concerning with the NIRMAL BANG SECURITIES PVT LTD.


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TABLE OF CONTENT:

Title page 1-1

Certification from organization

Certification from project guide

Acknowledgement 2-2

Prefaces 3-3

Executive summary

Topic 6-6

Brief introduction 7-8

Research methodology 9-9

Finding & suggestion 10-10

Industry profile & company profile 11-13

Names of stock exchanges 14-15

On line share trading in India 16-18

Stock market 19-20

Market participants 21-21

History 22-23

Importance of stock market 24-36


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Company profile 37-43

Products and services 44-51

Taxation for Indian resident 52-54

Demat services 55-58

Mandatory document for account opening 59-65

Investors rights and obligation 66-71

Terms and condition 72-83

Internet trading agreement 84-98

Services management of Nirmal Bang 99-101

Research methodology 102-105

Analysis 106-111

Finding and recommendation 112-111

Limitation 115-115

Bibliography 116-116


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Company Profile


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ABOUT NIRMAL BANG GROUP:

Founded in 1986 by Lt.ShriNirmal Bang Group is recognized as one of the largest retailbroking houses in India, providing an array of financial products and services.

Our retail and institutional clients have access to product such as equities, derivatives,commodities, currency derivatives, mutual fund, IPOs, insurance, depository services and

PMS.

Throughout our history, we have fostered one overriding purpose each client withpersonal services and quality work by adhering to the principal, we have grown to

become a successful as well-respect firm of highly qualified professional.

The group is headed by Mr. Dilip Bang and Mr. Kishore Bang who bring forwardindustry expertise, insight and most important, create an environment of unmatched to

client.

We are registered members of the Bombay Stock Exchanges limited (BSE), NationalStock Exchanges of India limited (NSE), Multi Commodity Exchanges of India limited

(MCX), National Commodity & Derivatives Exchanges limited (NCDEX), National

Multi Commodity Exchanges of India limited (NMCE) and also depository participants

of NSDL and CDSL.

MISSION:

To work together with integrity and make customer feel valued.Vision:

TO CREATE VALUABLE RELATIONSHI PS AND PROVIDE THE BEST FI NANCIALSERVICES MOST PROFESSIONAL.

Core value:

RESPECT OUR COLLEAGAUES AND THE BUSINESS I TSELF .


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VARIOUS DEPARTMENTS OF ORGANISATION

FINANCEI think organisation is an family and finance department is the family member like an father

which mobilise the funds from the market and deploy it in the organisationaccording to the

requirement.

The five basic corporate finance functions are described as those functions related to; 1) raising

capital to support company operations and investments (aka, financing functions); 2) selecting.

To handle the financial affairs of the company, relationship between procurement and other

functions of an organisation.

The financial section of the organisation will keep manual/electronic records of money received

and paid out by the organisation. This information will then be used to produce various financial

statements for tax purposes and to comply with legal requirements. The information will also be

used to produce management accounts to enable senior managers to plan and review business

strategy.

The finance department or unit may also be responsible for administering employee expenses

and salaries. For payment of wages the finance department will need to take into account

statutory deductions such as tax, and employee contributions such as pension or loanrepayments.

MARKETING

The marketing department will research customer needs to develop strategy and product to

satisfy that customer need. In its research, the marketing department will investigate the market

they are aiming at; the type of consumer making up the market (age, background sex etc) and thepreferences of the consumer within that market. The marketing department will then need to

marry consumer preferences with producing a product that is profitable. Once the product has

been designed by the production department marketing will then need to package, advertise, and

promote the product.


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Sales are responsible for persuading the consumer to purchase the end product, manufactured

through marketings research. The Sales Departments selling strategy could involve mailshots,

travelling sales representatives, telephone sales and devising the sales interview.

HUMAN RESOURCES

Human resources or Personnels main responsibility is the recruitment, selection, training and

development of staff. This will involve developing staff to maximise their potential in a manner

that furthers the organisations objectives.

Human resources may also need to comply with legislation applicable to the country in which

they are based. For example in the UK employers will need to maintain accurate personal records

in a manner that is compliant with the UK Data Protection Act 1984.

Human resources often adopt a welfare role which includes looking after employees whilst they

are at work. They may also create policies that balance organisational needs with those of the

employee. They will also interpret employee welfare legislation and ensure that the organisation

is complying with the applicable legislation.

RESEARCH AND DEVEPOLMENT

The aim of research and development is to improve existing products, create new and better

products, improve production methods, and create effective processes. This will enable the

organisation to reduce costs, increase profitability and remain ahead of the competition. As not

all research will lead to new/improved products/processes companies will need to allocate a

specific portion of their budget to research and development activities.


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Product and services

COMPANY AND ITS PROODUCT LINE

Our key product offerings are as follows : Equity Commodity Currency Derivatives Back Office Portfolio Management Mutual funds IPOs Advisory Service

FEATURES OF PRODUCT

1. Equity :

A stock represents a unit of ownership in a company. Shares are issued by stock corporations or

associations limited by shares and traded on the stock exchange, where on a continuous basis,

prices are calculated by matching demand and supply.

The bearer or owner of a share, called a shareholder, owns part of the company's capital stock,

indicated either as a percentage of the total share capital or as a par value that is printed on the

share certificate. The rights vested in the shares are regulated by the German Stock Corporation

Act and the company's charter.

Basic shareholder rights include:

the right to attend the annual general meeting, the right to vote at the annual general meeting, the right to receive a share of the company's profits, the right to subscribe to new shares.

2.Commodity :
http://www.boerse-frankfurt.de/EN/index.aspx?pageID=44&NewsID=309http://www.boerse-frankfurt.de/EN/index.aspx?pageID=44&NewsID=309http://www.boerse-frankfurt.de/EN/index.aspx?pageID=44&NewsID=309http://www.boerse-frankfurt.de/EN/index.aspx?pageID=44&NewsID=309


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The commodities market is one of the most volatile markets to trade in, where fortunes are

literally made and lost within a day. Unlike stocks, commodities do not go under and cease to

exist (unless the resource has been completely depleted,) but like stocks, the value can be

affected by political turmoil, wars or cultural shifts. Commodities markets are some of the oldest

open markets in the world, and there are several features the investor should be aware of before

getting involved.

3.Portfolio management

4. MARKETING STRATEGY

Tele calling Direct sales Corporate sales Making new customer through references.

5. COMPETITORS:

Multiple Trading Systems Update your Portfolio with Current Prices View Trades Handles Stocks, Options, Warrants and

CFDs

Increases your knowledge many times over 23 Customisable reports Dynamic Profit & Loss Calculations Trader's Diary Position Size Calculator


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Religare Share khan Indiabulls Kotak securities Reliance money

6.MAJOR PROBLEMS:

Negative perception among people Down trend in market Competitor Risk factor Lack of awareness

7. ACHIEVEMENT

3rd leading broking agency in India CNBC takes active advice from N.B Analyst Mr. Kunal shah

A. WIDE OPTION WHILE TRADING:

A product for every need:

Nirmal Bang is the most comprehensive website, which allows you to invest in shares,mutual funds, derivatives (Future and Option) and other financial products. Simply put,

we offer you products for every investment need of yours.

Trading in shares:

Nirmal Bang offers you various options while trading in shares.

Cash trading:


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This is a delivery based system, which is generally done with the information of takingdelivery of shares or monies.

Margin Trading:

You can also do an intra-settlement trading up to 3 to 4 times your available funds, where

in you take long buy/short sell position in stocks with in the intention of squaring off the

position within the same day settlement cycle.

In margin trading, you take buy/sell position in stocks(s) with the intention of acquiring

off the position within the same settlement cycle. If, during the course of the settlement

cycle, he price moves in your favor (rises in case you have a buy position or falls in case

you have a sell position), you make profit. In case you have the option to take/give

delivery of buy/sell position respectively if you have sufficient cash/securities to do so.

Normally to buy shares, you have to place (ensure availability of limit) 100% of the

order value, while to sell shares, you need to have shares in your Demat account.

However, margins are blocked only to safeguard any adverse price movement. At

present, you have to place 33.33% of the order value as margin. With margin trading, you

can leverage on your trading limit by taking buy/sell positions much more than what you

could have taken in cash segment. However, the risk profile of your transaction goes up.

Margin PLUS Trading:

Through Margin PLUS you can do an intra-settlement trading up to 10 times youravailable funds, where in you take long buy/sell position in stock with the intention of

squaring off the position within the same days settlement cycle. Margin PLUS will give

a much higher leverage in your limits.

Margin PLUS is an order placement feature where you can take a position at market priceand also place a cover order for the position specifying the SLTP and the limit price. This

will minimize the loss cover at the time of taking the position itself. There by it gives a

clear view of maximum downside involved in a particular position at a particular price,

Nirmal Bang wont levy a normal margin ranging from 21% to 50%. It would block he

maximum loss which customer can suffer.


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Spot Trading:

This facility can be used only for selling you is demat stocks which already exist inyouredemat account. When you are looking at an immediate liquidity option, cash on

spot may work the best for you, on selling shares through cash on spot, money is

certified to your bank a/c the same evening & not on the exchange payout date.

BTST:

Buy today sell tomorrow (BTST) is a facility that allows you sell shares even on 1 st and2nd day after the buying order date, without you having to Waite for the receipt of shares

into your demat account.

Call N Trade:

Call N Trade allow you call on a local number in your city & trade on the telephonethrough our customer services Executive.

Trading in NSE/BSE: through Nirmal Bang you can trade on NSE and BSE.

Market order:

This is an order to buy sell securities at the best price obtainable in the market at the timeit is matched by the exchange. Therefore, change of its getting executed are better. Incase of market order for NSE, all market order placed which are not executive fully; it

becomes a limit order for the balance quantity at the last traded price.

Market Order in BSE: Explanation:


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Market order can be placed only during market hours (i.e., when the Exchanges is open for

trading).

You could trade by placing market orders during market hours that allows you to trade at the best

obtainable price in the market at the time of execution of the order.

Limit Order:

Limit Order is an order to buy or sell securities in which you specify the maximum price per unit

in case of a buy order and the minimum price per unit in case of sell order. The actual transaction

can be at a price more favorable than the price specified.

Allow you to place a buy/sell order at a price defined by you. The execution can happen at a

price more favorable than the price, which is defined by you, limit orders can be placed by you

during holidays & non market hours too.

Online confirmation of Order and trade:

You get online confirmation of orders and trades- the status of any order is updated on real-time

basis in the Order Book. As soon as you place your order they are validated by the system and

sent to the exchange for execution. The entire process is fully automation and there are no

manual interventions.

GTC, GTD and IOC Order:

A Good Till cancelled (GTC) order remains in the system until the trading members cancels it.

However, the system cancels this order if it is not trade within a number of days parameterized

by the Exchanges. A Good Till Days/Date (GTD) order allows the user to specify the number of

days/date till which the order should stay in the system if not executed. The maximum number of

days for which the GTC/GTD order can remain in the system is notified by the exchange from

time to time after which the day/date on which the order is placed and inclusive of holidays. An


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immediate or cancel (IOC) order allows the user to buy or sell a security as soon as the order is

released into the system, falling which the order is cancelled from the system. Partial match is

possible for the order and the unmatched portion of the order is cancelled immediately.

Disclose Quantity (DQ) Order:

Normally, the order quantity is disclosed in full to the market. An order with a disclosed quantity

(DQ) condition/attribute allows the trading members to disclose only a part of the order quantity

to the market. For example, an order of 1000 with a disclosed quantity condition of 200 will

mean that 200 is displaced to the market at a time. After this traded, another 200 is automatically

released soon till the full order is executed. DQ (Disclosed Quantity) should not be less that 10%

of the order quantity and at the same time should not be greater than or equal to the order

quantity.

Stop Loss Order:

A stop loss order allows the client to place an order which gets activated only when the market

price of the relevant securities reached or crosses a threshold price specified by the investors in

the form of stock loss trigger price. When a stop loss trigger price (SLTP) is specified in a limit

order, the order becomes one which is conditional on the market price of the stock crossing the

specified SLTP. The order remains passive (i.e. not eligible for execution) till the condition is

satisfied. Once the last traded price of the stock reached or surpasses the SLTP, the orderbecomes activated (i.e. eligible for execution by being taken up in the matching process of the

exchange) and then on behave like a normal limit order. It is used as a tool to limit the maximum

loss on a position.

StopLoss by Order:

A short sell reliance shares at Rs. 325 in experience that the price will fall. However, in the

event the price rises above his buy price A would like to limit sell order specifying a stock loss

trigger price Rs. 305 and a limit price of Rs. 300. The stop loss trigger prices price has to be

between the limit prices an trade price at the time of placing the stop loss order. Once the last

trade price touches or crosses Rs. 305, the orders get converted into a limit sell order at RS. 300.


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Switch:

To suit your changing needs you may wish to shift monies between different schemes. You can

switch your monies online form one schemes to another in the some fund family without any

hassles.

Systematic investment plans (SIP)

SIP allows you to invest a certain some of money over a period of time periodically. Just fill in

investment amount, the period of investment and the frequency of investing and submit. We willdo the rest for you automatically investing periodically for you.

Systematic withdrawal plan:

This allows you to withdraw or certain some money over up period of time periodically.

Transfer-in: we can convert to existing mutual funds into electronic more through a transfer-in

request.

3: IPOS and BONDS Online:

You can also invest in initial public offers (IPOs) and bonds online without going through the

hassles of filling any application form/paperwork.

Get in-depth analysis for new IPOs issue (initial public offering) which are about to hit the

market and analysis on these. IPO calendar, recent IPO listing, prospectus/offer document, and

IPO analysis are few of the features, which helps you keep, keep on talk of the IPO markets.


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DEMAT SERVICES

Company offering

Nirmal Bang is a registered member (Depository participant) of CDSL.

In this system, physical security holding are converted into electronic (or in other words,

dematerialized) holdings.

Why NIRAML BANG Demat Account?

Demat A/C free open. Demat access through internet and phone. Portfolio valuation on the account statements. Online execution of transactions at branches. Special rates for stock market intermediaries and sub brokers. Transaction update from back-office four times a day.

Transfer of shares and settlements

Transfer and settlements have never been easy as it under the depository system. All that is

required is an instruction slip from you. If you are selling securities then it has to be a delivery

instruction slip. If you are purchasing securities it has to be a receipt instruction slip or standinginstruction for credit.

Receipt of Corporate Benefits

Even securities establishment like bonus and right can be credit to your Demat account

electronically. All you have to do is choose the right option in the share application from. Crash

benefits like dividend and interest will, however be forward to you directly and not through the

depository.

Holding & Transaction Statements

We provide statements of holding cum transaction every month at Zero cost.


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Dematerialization of shares

At you request we arrange to convert your physical holding into electronic from. To do this

would require to open an account with CDSL through us called Beneficiary Account in the

name and style in which the shares are held and lodge the share certificates with us accompanied

by a dematerialized request from, separate for each scrip.

You are required to only make sure that CDSL has admitted that scrip for dematerialization. An

upto date list will be provided to you which will be constantly updated.

Rematerialization

You have the option to convert your electronic shares back to physical shares.

What a customer expect from the company:

1. Wide range of services under one roof.2. 24 hours and ease to access.3. Personalized attention.

What company offers to it customers?

1. Extensive product range.2. Enhance customer through relationship managers.3. Understand local market dynamic.4. Expanding geographical and online presence.5. Provide a wide array of services such as brokerage, depositary services, mutual fund and

equity distribution, commodities trading and customers loans.

6. Offer innovation products such as power Nirmal Bang signature client account.7. Improve customer education through in-house equality research.


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8. Improve interface and customer experiences through research.9. Improve customers interface and customer experience through technology.10.Continually invest and quality of systems.11.Improved speed and quality of services12.Enhance data mining to improve risk management processes.


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Industry profile


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BOMBAY STOCK EXCHANGES:

This stock exchanges, Mumbai, popularity known as BSE was established in 1875 as The

native share and stock brokers associations, as a voluntary non-profit making association.

It has an evolved over the years into its status as the premiere stock exchanges in the country. It

may be noted that the stock exchanges the oldest one in Asia, even older than the Tokyo Stock

Exchanges, which was founded in 1878.

The exchanges, while providing an efficient and transparent market for trading in securities,upholds the interests of the investors and ensures redressed of their grievances, whether against

the companies or its own members brokers.

It also strives to educate and enlighten the investors by making available necessary informative

inputs and conducting investors education programmers.

A governing board comprises of elected directors, 2SEBI nominees, 7 public representatives and

an executive director is the apex body, which decides the policies and regulates the affairs of the

exchanges.

The executive director as the chief executive officer is responsible for the day todayadministration of the exchanges. The average daily turnover of the exchange during the year

2000-01 (April-March) was Rs 3984.19 crores and average numbers of daily trades 5.69 Lakhs

However the averages daily turnover of the exchanges during the year 2001-2002 has declined to

Rs. 1224.10 crores and number of average daily trades 5.69 Lakhs.

The average daily turnover of the exchanges during the year 2001-2003 has declined and number

of average daily trades during the period is also decreased.

The Ban on all deferral products like BLESS AND ALBM in the Indian capital markets by SEBI

with effect from July 2, 2001, abolition of account period settlements, introduction of

compulsory rolling settlements in all scripts trades on the exchanges.

With effect from dec31, 2001 etc. have adversely impacted the liquidity and consequently there

is a considerable decline in the daily turnover at theexchanges. The average daily turnover of the

exchanges present scenario is 110363 (Laces) and number of average daily trades 1057(laces).


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NATIONAL STOCK EXCHANGES:

The NSE was incorporated is now 1992 with an equity capital of Rs 25 crores. The international

securities consultancy (ISC) of Hong Kong has helped in setting up NSE.

ISE has prepared the details business plans and installation of hardware and software system.

The promotion for NSE were financial institutions, insurances companies, banks and SEBI

capital markets Ltd, infrastructure leasing and financial services Ltd and stock holding

corporation Ltd.

It has been set up to strengthen the move towards professionalization of the capital market as

well as provide nation wide securities trading facilities to investors. NSE is not an exchange inthe traditional sense where broker own and manage the exchanges.

A two tier administrative set up involving a company board and a governing aboard of the

exchanges is envisaged. NSE is a national market for shares PSU bonds, debentures and

government securities since infrastructure and trading facilities are provided.


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NAME OF THE STOCK EXCHANGE:

Bombay stock exchange. Calcutta stock exchange. Ahmadabad share and stock brokers association. Delhi stock exchange association Ltd. Madras stock exchanges association Ltd. Indore stock brokers association Ltd. Bangalore stock exchanges. Hyderabad stock exchanges. Cochin stock exchanges. Pune stock exchanges. U.P stock exchanges. Ludhiana stock exchanges. Jaipur stock exchanges. Gawhati stock exchanges Ltd. Maghad stock exchanges Ltd. Vsdodard stock exchanges Ltd. Coimbatore stock exchanges Ltd. The Meerut stock exchanges. National stock exchanges. Mangalore stock exchanges Ltd, Patana. Bhuveneshwar stock exchange association. Over the counter exchange of India. Bombay saurastrakuth stock exchange Ltd. Integrated stock exchange.


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Introduction to stock market

A stock market is a public marketfor the trading of company stock and derivatives at anagreed price these are securities listed on a stock as well as those only traded privately.

The since of world stock market was estimated at about $36.6 trillions US at thebeginning of October 2008. The total world derivatives market has been estimated at

about $791 trillion faceoff nominal value.

11 times the size of the entire world economy. The value of the derivatives market,because it is stated in terms of national values, cannot be directly compared to a stock or

a fixed income security, which traditionally refers to an actual value.

Moreover, the vast majority PF derivatives cancels each other out (i.e., a derivativesbet on an event occurring is offset by a comparable derivatives bet on event not

occurring).

Many such relatively illiquid securities are valued as market to model, rather than anactual market price. The stock are listed and traded on stock exchanges which are entities

of an corporation of mutual organization specialized in the business of bringing buyers

and sellers of the organization to a listing of stock and securities together.

The stock market in the united states in the united states includes the trading of allsecurities listed on the NYSE Euro next, the NASDAQ, the Amex, as well as on the

many regional exchanges, e.g. OTCBB and Pink sheets. European examples of stock

exchanges included the London Stock Exchange, the Deutsche Borse.

MARKET PARTICIPANTS:

Afew decades ago, worldwide, buyers and sellers were individuals investors, such aswealthy businessman, both long family histories (and emotional ties) to particular

corporations.

Overtime, market have become more institutionalized buyers and sellers are largerinstitutions (e.g. Pension funds, insurance companies , mutual funds, index funds,


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exchange traded funds, hedge funds investors groups, banks and various other financial

institutions).

The rise of the institutional investors has brought with t some improvement in marketoperations. This, the government was responsible for fixed(and exorbitant) fees being

markedly reduced for the small investors, but only after the large institutions had

managed to break the brokers solidfronts on fees. (They then went to negotiated fees,

but only for large institutions.

However, corporate governance (at least in the west) has been very much adverselyaffected by rise of (largely absentee) institutional owners

INTRODUCTION OF ONLINE TRADING

Online Trading has existed amongst people for ages and with the arrival of the internet, online

trading is the buzzword of the day. With the internet as a platform it is very easy to trade in the

instruments of your choice as and when you want. Gone are the days when you actually had to

make daily rounds of the stock exchange or go to your broker. Now you need not even make any

calls but can simply trade as and when you want by the click of a mouse. There are several web

sites online that allow you to trade on the stock exchange or the commodity exchange or any

other case.

These web sites that allow online trading act as brokerages and allow you to make your

transactions using their web site. As any normal broker would do these web sites would also

charge a small brokerage fee on your every transaction. These days people want to be trading on

every thing like stocks trading, commodity trading, currency trading, futures trading as well as

on mutual funds and derivatives. Hence there are ample opportunities for people to invest and

trade in something that would give you the desired results. The forms of trading can be done

though an online brokerage.


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A key to trading successfully is to have good knowledge about what is happening around you.

Yes many people try and predict what the markets are going to do next but every future

prediction is based on the present. And hence having the knowledge of what is happening and

how is it going to impact the market is necessary to make good profits. You also need to

diversify your investments. Hence you could invest a part of your total portfolio in stocks,

another part could be dedicated to currency trading, another part could be used for commodity

trading etc. This is generally done by investors so that if one market or one form of investment is

going through a bad phase then other forms of investments will keep the portfolio in balance.

While trading it is important to remember that the markets can be a risky proposition and hencenot all your wealth or income be dedicated to trading. It is also important to understand that the

markets can be volatile at times or at times function in a very unprecedented manner. And hence

at such times it is important to have diversified your investments in order to minimize your

losses. If you are not well aware of trading then do not worry for trading is no rocket science and

definitely online trading is very simple to understand. This web site will tell you about the

various online web sites where you can make an online trading account. Also the web site will

throw light on what the different forms of online trading are.

Importance of online trading

The world is built on capital, we humans are always wishing for that next big money-maker. It

seems that everyone always wants more cash. Some strive for a higher education; others compete

for that big promotion. No matter what the method, we all find a way of increasing our income.

Investing is a common form of making an extra buck. With the craze of the stock market in full

affect, many of us gamble on that up-and-coming business, or reputable product that has the


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potential to increase in value. We know that shares can sky-rocket in value if purchased at the

right time.A blessing to many investment junkies is stock trading online. The stock market is

now at your fingertips.If youve never played the stock market, it may be time to check it out.

Many people make millions in buying and selling. Havent you heard about certain shares?

Those people got rich. Its amazing where a little gamble can take you .With stock trading online

anyone can have constant access to the market. Hop on your computer and check out the

websites that can help you with this process. It doesnt matter if youre looking to spend a little

or invest a lot, there is something just waiting for you. The great thing about the Internet is the

information. You can find an abundance of trading tips and facts about the stock market for free.

This way when you begin stock trading online, you wont be in the dark. A few years back, my

best friend hopped on the stock market bandwagon, and purchased some shares. When he began

this little venture, he purchased on the recommendation of a buddy who had been trading for

years. After buying a number of shares at 10 bucks a pop, he was ready to go. It wasnt long

before the shares had increased to 60 bucks a pop. He took the safe road and sold immediately. I

think that this was a wise decision. He made the cash and lost nothing. With stock trading online,knowing when to fold is key. Just like with gambling, you have to know when to cash out. Make

some money, but dont get greedy. Before you know it, the shares have dropped below your

purchase price. Stock trading online is a wonderful way to turn a profit and make that extra cash.

Before you jump online and start investing, check out some websites for info and pointers on the

game of stock trading. A better understanding of the business will pay off in the end.

BENEFITS OF ONLINE TRADING

Commissions

One of the biggest, if not the biggest, benefit of trading stocks online is the reduced stock broker

commissions youll be expected to pay. In most cases, when trading stock online, brokers will

charge you a commission of between $7 and $10 per trade. However, if you trade in sufficiently

large enough volume, it is possible for you to negotiate with your broker so that these brokers

fees can be as low as $0.01 of the transaction value.

Control

When you use a broker in the real world you may find that your broker will not agree to execute

a trade, believing your decision to buy or sell the stock in question is flawed. When you trade

stock online this is no longer a problem, your broker has no input as to when you buy and sell

stockyou do!

Portfolio

In the real world some brokers will not buy certain stockfor example, some penny stocks. This

may limit the stock you are able to have as part of your investment portfolio. However, when


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you trade online, subject to availability, you can trade in any stock - on any stock exchange - you

want!

Information

With the use of computer software programs, you can use stock charts, technical indicators and

real time stock prices to help you make the investment decision you want to make, when you

want to make it.

Time

One of the essential elements about trading stock is the time it takes to execute the trade, as this

can mean the difference between making a profit and making a loss. In the real world you have

to phone your broker and ask him to sell/buy the stock. The broker then phones the trader, who

gives the broker the price. The broker than tells you the price and you either agree to buy/sell ornot to. If you agree to buy/sell, the trader then phones the order through to the trader. Online you

push your mouse over a cursor and press buy/sell.A much quicker sell.

Volume

Assuming you are happy paying the commission, you can trade as large or small as you want

over the Internet. In the real world, most brokers require a minimum buy/sell that is out of the

reach of most individual traders.

Major advantages of online share trading:

Paperless transactionsyour share certificates get deposited in electronic form (DMAT) inyour web trade account.

Orders can be also placed offline during non-market hours.

For NRIs this is the easiest option to invest in Indian markets.

The disadvantages of online trading include, need to fulfill specific activity and account

minimums as demanded by the broker, greater risk if trades are done extensively on margin,monthly software usage fees, chances of trading loss because of mechanical/platform failures

and need of active speedy internet connection. Online traders are fully responsible for their

trading decisions and there will be often no one to help them in this process. The fees involved in

trading vary considerably with broker, market, ECN and type of trading account and software.

Some online brokers may also charge inactivity fees on traders.


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Major Disadvantages of Online Trading

Online trading is risky if trading is done extensively on margin.

There are chances of trading loss in case of mechanical/platforms failure.

Online traders fall sort of constant support and suggestion.

The fee of online brokers vary.

Definition of online trading

As per the web the sale of goods or services over the Internet. Customers must enter and submit

their credit card details online; the sale will often proceed without the retailer and customer ever

having personal contact. Www. Stanlake.co Online trading over the Internet, without thephysical inclusion of a broker. Orders are reports are entered and returned via terminals.

Online Trading Patterns:

Online Trading should be screen-based system only. T+ 2 settlement (T means trading day). It is a Stock wise and Financial wise. Shares or security should be in D-Mat only. Penalty clauses should be applied. Notionally any trade will be done by buying / selling took place by NSE. It is only cheque system but no cash system. This is no intermediaries from 1-10-2004. It is agreement between stockbrokers and investors. It not even through authorized person.

Sources of the online marketing:

In the online marketing the most important is to know the customer, and in order to know the

customers the company must collect information and store it in the customers database and do


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the datab ase marketing.A customer database is the organized collection of comprehensive

information about individual customers or prospects that are current, accessible and actionable

for such marketing purpose as lead generation led qualification. Database marketing is the

process of building, maintain and using customers databases and other databases for the purpose

of contacting, transacting, and building relationship.

Customer mailing list is totally different from customer database. A customer mailing list is

simply a set of names, address and telephone numbers. A customer database contains much more

information. Companies accumulate this information through customer transactions,

registrations, and telephone queries. A customer database would ideally would contain the

customer past purchase, demographic, psychographics and other useful information.

BACKGROUND OF THE STUDY

Online community is defined as a gathering of individuals in a computer mediated environment

who are united by a common purpose and governed by self-determined policies. Online

community has five characteristics they are Purpose, Boundary, Mutuality Rules, and Self-

organization.

Why do people join online trading?

Internet has changed the pace of all activities in all over the world.The share tr ad ing has alsobeen affe cted with the winds of the changes . Now the complicated procedure of share

trading in share market has become very easy because of the usage of the Internet in this typeof trading. The customers are getting the trading accounts through which they can trade in themarket. And for paying the money also they have no need to go anywhere, the money will bedebited or credited to customers account automatically. So in the online trading the customerscan by sitting in the home only, trade in the share market.Online trading will probably be one of the biggest drivers of penetration as well as successes onthe net. Even in India, however farfetched the idea might be seen, and right now. The reasonsfor this are:

A lot more than shares will be traded on the net. The savings on customers brokerage expenses on online trading will be oneof the most satisfying wages to gate. The transparency, anonymity and certainty it offers are sure fire ways to enhance loyalty.


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Online trading tips, trading tips for working in share market India

Online stock trading has so many benefits that have attracted the investors all round the world.

Investors especially the retail investors have found it easier and safer to invest in the stockmarket through online trading portals. The system is not only hassle free but also transparent andcost you less. But there are some aspects that you need to be careful about before you starttrading online and during the trading.

Firstly you have to be careful about selecting the online the online trading service provider.There are so many service providers who are offering online trading facility to its customers.You have to select the company that is most suitable for you.

Before you actually start to trade with company you have to make sure that they are offering aholistic solution for online stock trading. They should provide you with a DP account, a trading

account and also with a seamless process to transfer fund to and from your bank to the tradingaccount. It is always wise to select a company that can offer you all these facilities. It will betterfor you as you have to deal with one single company and thereby the process of onlinetradingwill be simpler.

Always select an online trading portal that is absolutely secured. As you will trade through thewebsite and also provide personal information in the browser. So it is important that you use awebsite that is absolutely secured so that your personal information is safe.

Then you should compare the brokerage for trading at different portals. Remember that everytime you buy or sell stocks online you have to pay brokerage. Though brokerage for online

trading is significantly lower than conventional trading, still you should find the lowest rate asthat will definitely increase your profit margin.

These are the few things that you should consider for choosing the service provider and whenyou have opened an account and started trading you have to take care of few other things. One ofthe major benefit of online trading is that you can gain from the regular stock tips that are offeredfree of cost by your service provider. The companies usually have a panel of experts whoanalyze the market trend and provide profitable stock trading tips that you can follow to planyour stock investment. Apart from the regular tips for trading you can also get valuableinformation regarding different sectors and companies that is also helpful in fundamental andtechnical analysis of the stocks.

Though the online trading is easy and cost you less in terms of brokerage you should never go byyour impulse and make investment without thoroughly considering the potential of the stocks.Remember that the basic guideline for stock investment holds good in online stock trading aswell. So you must follow your stock investment strategy and choose stocks that you think willgive you good return. While doing online trading make it a habit to take the note of the dailytrading details that you can easily download from the trading portal.
http://www.sharetipsinfo.com/online-trading.htmlhttp://www.sharetipsinfo.com/online-trading.htmlhttp://www.sharetipsinfo.com/technicalanalysis-stockmarket.htmlhttp://www.sharetipsinfo.com/technicalanalysis-stockmarket.htmlhttp://www.sharetipsinfo.com/online-trading.htmlhttp://www.sharetipsinfo.com/online-trading.html


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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; therefore, they can serve themselves better by making their own decisions. There

are lots of definitions for online trading. Hereby, four main definitions are mentioned:

Referring to two websites which are active in trading fields they define online trading in thismanner: The increasingly popular activity of buying and selling securities over the internet, or

to a lesser extent, through a broker's proprietary software. Likewise Fan et al. define it in this

way: The 'online trading' is defined as a process of trading financial products especially stocks

over the Internet, and online stock trading site is a web site that helps traders or customers to

buy and sell the financial products over the Internet.

Also online trading is described as service offered on the internet for purchase and sale of

shares. In the real world you place orders with your stockbroker. In online trading, you will

access a stockbroker's website through your internet-enabled PC and place orders through the

brokers internet-based trading engine. These orders are routed to the Stock Exchange withoutmanual intervention and executed thereon in a matter of a few seconds.

Furthermore there is another definition for online trading which defines it in this way: Online

trading is placing an order for a trade using the internet. Online trading is not a strategy, but a

means to enter a trade. Online trading can be used to enter a short trade or day trade, or a

longer-term position in a stock, bond, commodity or option.


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Each of these definitions describe online trading from somehow different aspect, but

something is common and that the services which have provided to traders. They divided

into three categories

Full-service

Discount

Online

Investors who do not have time to research investments on their own will likely rely on a full-

service broker to help them construct an investment portfolio, manage their investments, or

make recommendations regarding which investments to buy. Full-service brokers have access to

a wide range of reports and analyses from the company's large staff of financial analysts. These

analysts research companies and recommend investments to people with different financial

needs. Persons who prefer to select their own investments generally use a discount or online

broker and pay lower commission charges. Discount firms usually do not offer advice about

specific securities. Online brokerage firms make their trades over the Internet in order to keep

costs down and fees low. Discount brokerage firms usually have branch offices, while online

firms do not. Most brokerage firms now have call centers staffed with both licensed sales

agents and customer service representatives who take orders and answer questions at all

hours of the day.

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. It is important for

day traders to understand the key features of, and the differences between, these two forms of

electronic trading. Trend Trader offers a choice of trading platforms:

To have an overview on the evolution of online trading, the growth and trend of it has

presented.

BENEFITS OF ONLINE TRADING TO INVESTORS

Some online brokerage firms reported 100+ per cent annual growth rates through theyear 2000. The increase was because of the benefits investors can gain from online

investing. These benefits include low transaction costs, speed, convenience, boundary

spanning abilities, and immediate access to financial information. According to,

transaction costs have been driven down because of the increased number of online


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brokerage firms. In fact, the dramatic increase of online brokerage firms has led to

increased competition and lowered commissions that an investor must pay per trade.

Along with low transaction costs, the main strategy of online discount brokerages is thespeed and delivery of almost instantaneous transactions. In todays world of fast food

and 24-hour service, investors cannot help but want the same type of fast service applied

to the financial industry. That is why many investors enjoy the conveniences e-

brokerages offer by allowing them to go online and complete transactions at almost any

time during the day or night. Time is saved because investors do not have to phone their

broker during normal business hours in order to complete their transactions.

Another benefit of online trading is its ability to span boundaries. Many investors areinterested in buying foreign stocks and with online trading systems in place; these

investors are drawn to its boundary spanning capabilities. This is also true for foreign

investors who want to invest in the U.S. market. Now, with the Internet, they have easier

access to make their overseas transactions.

A final benefit investors can derive from online trading is access to instantaneousinformation. Vakil and Lu (2005) stated that the Internet has given people access to

immediate financial information whenever they want it. They felt that the availability of

this financial information should lead investors to make better-informed choices. This

thought is also shared by Bhasin (2005-2006), especially since the information that isnow available to the average investor was once only available to people working in the

business of finance.

BENEFITS OF ONLINE TRADING TO BROKERS/FINANCIAL PLANNERS

The investors are just one group affected by the development of online investing;another group that has been influenced is the brokers/financial planners. With e-brokerages attracting twelve million investors from 1994 to 2000, it may seem like

traditional financial planners will soon be extinct. However, this is not the case, as many

people in the financial industry have witnessed that the growth of online trading has

created benefits for them as well. This includes increased publicity, lower start-up costs,

increased client base, ease of communication, and risk management. The attention that

has been given to online brokerages in terms of advertising has encouraged more people


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to trade and thus, in the long run, this has created more business for the financial markets

in general. Financial planners feel that average people will be drawn into trading online

because of its novelty and then they will eventually realize that they need a financial

planner in order to help them get a comprehensive view of their finances.

A second benefit, according to Barber and Odean (2001), is that the fixed start-up costsof opening an online brokerage are far lower than opening a traditional brokerage service.

Therefore, many brokers might consider putting a part of their services online, thus

reduce their staff costs. The staff costs can be reduced because it does not take as many

personnel to run an e-brokerage site as it does to manage a traditional brokerage firm.

E-brokerages have also allowed brokers wider access to a variety of different people,therefore increasing their client base and allowing them to offer many different types of

services to their customers. Ameritrade and E-Trade are examples of firms that have

found new ways to deliver traditional services and new services.

Another benefit to brokers is ease of communication. Many financial planners see thegreatest gift that the Internet has given them as allowing them to improve communication

with their clients. They appreciate the fact that the Internet has saved them money by

reducing the costs of communication and by making it easier to get information to their

customers.

One final benefit that online trading has for brokers is that it makes risk managementmuch easier. When an investor places a trade online, the system first can check the

investors bank account to make sure that the individual has the funds available to make

the trade and this lowers the credit and payment risk that traditional brokers have had to

deal with in the past.

Growth of online trading

According to an article by Krishnamurthy B in 2005 after inception of online trading in India in

the year 2000 online trading is gained momentum with trading volumes growing by 150 per

cent per annum in the years 2005-2008 and it was more than approx. 200% in the year 2008 The

volume of all trades executed through the Internet on the National Stock Exchange had grown

from less than Rs 100 crores (Rs 1 billion) in June 2003 to over Rs 950 crores (Rs 7 billion) in

July 2008 which was a handsome growth in the year 2005in the starting of 2008 the growth of


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online share was good but at the mid of the year when subprime crisis affected India including

all over the world, market of online trading got shrunk by more than 50%.

Now the growth of online trading is on its right track ,Indian stock market has been announced

the one of the Safe and stable market of the world, so here in India the online trading is growing

like anything in comparison to the whole world

At the end of July 2008, there were more than 168 registered brokers on the NSE and the

number of Internet trading subscribers to about 2.024 million. In the year 2010 India has 8

crores (80 million) internet user, the % of internet user is growing in each year.

At the same time the number of subscribers trading through the portal of Kotak Securities had

gone up significantly by 150 per cent and the number of online trading customers had grown

from 30,000 to 75,000. And the company expected to have at least 130,000 customers by the

end of that fiscal. In the recent past years of 2005 ICICIDirect and Indiabulls recorded an

annual volume growth of 100 per cent and Indiabulls had about 30 per cent of India's onlinetrading volumes.

Today the total volume of online trade in India is about 29-31% of total trades. According to

brokers the better broadband connectivity across the country and wider awareness of equity as

an asset class will raise the online trade volumes to over 50% of total trade. In India the

demography is such that 75% of the population is under the age of 36 and more than 50% of the

75% is under age of 25 and this is another supporting factor.

The Chief Executive of Reliance Money Ltd says that online investing is still at a nascent stage

in India and expects that Internet-based trading will eventually take about half of the total stock

market trading as like with developed markets such as the US. Philippines has the highest

online trade with about 55-60% execution of trade is online. The reason is because they had

wider Internet connectivity years before India. The biggest challenge in India remains better

Internet connectivity. The earlier Web-based technology used for Internet trading has been

replaced by specialized software which gives real-time global data streaming rates to trader

helping investors to analyze the market trends and helps in faster execution of trades. Earlier the

investors made trade calls over the phone which sometimes led to the delays. Example of the

tools used in these days online trading


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Online share trading in India was at a boom in the end of 2006 with daily-traded volumes more

than tripling from Rs 1,500 crores to Rs 5,000 crores in the last one year and terminals was set

up in small towns such as Rajkot, Hubli and Vijayawada .In that year the share of online trading

rose dramatically from 7% last year to 20% as a percentage of overall traded volumes. Due to

this factor the top five US brokerage firms decided to make a foray into India in the next yeardriven by strategic interest. Also at that time non-metros accounted for half of the daily turnover

of online trading.Graph is showing the declining in the turnover of online trading in Indian

stock exchange during slowdown in economy due to subprime mortgage crisis


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Scope of the study

Since the year 2000 a big boom has been witnessed in the Indian Stock Market when the market

showed the coming up of Online Trading System. Many online stock trading companies came

but initially due to lack of online trading some companies vanished and some survived. The

companies which survived are getting the handsome returns also attracting the foreignInvestment Companies. Nowadays this sector is facing cut-throat competition and also provides

huge growth prospects. The study then goes to evaluate and analyze the findings so as to present

a clear picture of the trends in the online trading sector.

Objectives of the study

The objectives of my research project is

1. To determine the growth and future of online trading industry in India2. 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 customer7. To develop a good strategy and process that improves the business of the organization8. To be able to compare and analyze the various Financial Products.9. Business development and revenue generation.10.To know more about the NirmalBang Investment Solution.


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Document required for Account opening

MANADATORY DOCUMENT:-

1. PROOF OF IDENTITY (For individual /Karta / Sole proprietor / Authorized person (s) forPartnership, corporate and Trust)

Photocopy of PAN card Passport size photos

1.PROOF OF ADDRESS (For individual / Karta / Sole proprietor / Authorized person (s)for Partnerships, Corporate and Trust)

Photocopy of any one of the following:

Passport, Voter ID Card, Driving license, Bank Passbook, Rent Agreement, Ration Card,

Current Telephone Bill, Current Electric Bill, Flat Maintenance Bill, and Certificate Issued

by employer registered under MAPIN, Insurance Policy.

2. BANK AND DP PROOF:I. Letter from clients banker certifying the account number and the period from which the

accounts in operation as per prescribed format.

II. Copy of a pas book / bank statement containing name of the clientIII. Copy of current transaction statement / holding statement / certification by DP containing the

name of DP and client

3. PROOF OF INCOME AND ASSETS:I. Copy of the salary of the constituent for the last monthII.Income tax statement for the last 2 financial years

III.Assets liability statementIV.Copy of the values certificate in case of immovable propertyv. Bank statement


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4. FOR MINORS:In additional to the abovementioned documents, the following documents would also be

required for minors.

I.Birth certificate of Minor.

5. ADDITIONAL DOCUMENTS FOR NON-INDIVIUALS:I. Copy of the balance sheet for the last 2 financial years (copies of annual balance sheet to

be submitted every years)II. Copy of latest share holding pattern including list of all those holding more than 5% in the

share capital of the company, duly certified by the company secretary/ whole time

Director/MD. (copy of updated shareholding patterns to be submitted every year)

III. Copies of the memorandum and articles of association in case of a company / bodycorporate or partnership deed in case of a partnership firm

IV. Copy of the Resolution of Board of Directors approving participation in equity /derivatives/ debts trading and naming authorized persons for dealing in securities.

V. Photographs of partners/whole time directors, individual promoters holding 5% or more,either directly or indirectly, in the shareholding of the company and of persons authorized

to deal in securities.VI. Net worth certified by Chartered accountant.VII. Declaration on letterhead of firm as per prescribed format for sole proprietorship and

partnership Firms.


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RESEARCH METHODOLOGY

The research methodology for the project completed in two phases:

First Phase is the collection of Secondary Data:

This involves the collection of Secondary data using internet and internal sources for collecting

data about the firm and about the online trading. This also involves talking to their executives

regarding various features provided to the customer along with their Brokerage structure.

Second Phase is Collection of Primary Data and Analysis:

After collecting the Secondary data the next phase will be collection of primary data using

Questionnaires. The questionnaire will be filled by around 50 people who will be mainly from

Raipur region. The sample will consist of people who are employed or work as free lancers

dealing in investment options to know their financial requirements. Based on these requirements

different investments will be informed to them for further perusal.


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DATA ANALYSIS

Q.1 What is your education qualification?

INTERPRETATION

The people who are dealing with the stock market either online or offline. mort of them are

graduate, 49%of the total respondent who are dealing with the stock market are graduate, then

16% are post graduate and 22% people is having professional degree. So here this is showing

that qualification up to graduation or more than that is in the favor of the online trading pattern


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Q.2 What is your annual income?

INTERPRETATION

58% respondent are having the income level of 100000-200000 ,21% is having 200000-300000

, 12% in having 300000-400000 , 7% of the total respondent are having income more than

400000 per annum and only 2% are having less than 100000 per annum.

To invest in the stock market minimum 100000 or more than this should be the annual incomelevel of the people. In India the per capita income in also increasing so we can say that there is a

good opportunity for the online trading market


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Q.3What percentage of your monthly household income could be available for

investment?

INTERPRETATION

According to the data 23% of the total respondent invest less than 5% of their income, 41%

respondents are saying that they invest 5%-10% of their monthly income (which is highest)

Whereas the 21% investor do the investment 10%-15% of their total monthly income,13 invest

between 15%-20% of the total income and only 2% does more than 20% of their income invest

in the market

We can easily understand that 75% of the total population is having a good amount ofinvestment, so the investment is there in the market, good number of people are ready to invest

a good amount in the market 91% of respondent is in the income level of 100000 300000

(according to the last question analysis).

So we can say that stock brokerage houses will have to do a good business with the help of

Online trading system with few value addition services


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Q.4Where do you often invest your money?

INTERPRETATION

Highest number of respondent is having their investment in the equity that is 65% whereas the

investment available for the mutual fund, term deposit and insurance is 14%, 12% and 9% So

the investor for equity is high which is again showing the n number of opportunity for onlinetrading


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Q.5What is the primary objective of your investment?

INTERPRETATION

13% of the respondent invests the money for the reason capital appreciation but most of the

investor is having same motive that is source of income and retirement plan, wealth

preservation and education funding for children or other are only 10%

From the analysis we can have idea that the main objective of the investor to earn the money

through trading in stock market 77% of the respondent achieves their objective with the help of

investment in the equity market, because most of the investment takes place in the form of

equity (explanation of 4th ans.)

So we can say that there is a huge potential in the market for the trading in the stock market


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Q.8 Do you owe a Computer?

INTERPRETATION

78% of the total respondent who are dealing with the stock market is having computer in their

house and only 22% is not having computer in their house

The people who is having computer that is 78% can also go for online trading which can be a

large number of people who will go for online trading they dont need to do a additional

investment for computer to go for online trading


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Q.7 To operate a computer is easy for me.

INTERPRETATION

60% respondents reply that using computer is easy for them and rest of the 40% replies that they

have some problems in using the computers.

0

10

20

30

40

50

60

70

yes no

no

yes


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Q.8 Introduction of online trading helped to attract the new Investors thus increasing the trading

volumes at Stock Market?

INTERPRETATION : 76% respondents replies that yes introduction of online trading attract

new customers.

76%

24

yes

no


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Q.9At what time do you trade?

INTERPRETATION

45% of the total respondents do trading in office timing while 32% do trading in non office

timing and 23% of the respondents do the trading in free time

Here the people who do the trading in office timing they face the problem of not in the

continuous touch of the stock market, so online trading can be one of the good solution of this

problem.


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RECOMMENDATION

The companies should come up with more and more innovative features in their web portals.

We came to know about most important factor about the product with the help of factoranalysis, so we should go for change the product according to the customer need.

We should also focus upon the value added services. Generally company does claim thatif you will by the product you will get these benefits but company doesnt provide the

services here. So services always does matter when we talk of ONLINE TRADING

Company should also look for the problem which customer generally face when they dotrading (like problem of operating properly)

The customer should be educated regularly regarding the new technologies andtechniques of trading online and also other relevant information.

The companies should look after to develop more safe and secure ways of transactingbusiness online.

The companies should make maximum efforts to detect fraud cases and minimize them


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LIMITATION

The various limitations of the study are:

1. People were not willing to answer the entire questionnaire due to the less time availableto them.

2. Some respondents might be hesitant to divulge personal and financial information whichcan affect the validity of all responses.

3. There is lack of awareness among people about investing in stock market. So the peoplewho are aware of such things were found in specific areas for survey purposes.

4. Most people are comfortable with traditional system in small towns and like to trade fromtheir respective brokers, hence not providing a true opinion of theirs.

5. Some of the respondents who did not do online trading were able to respond to only fewquestions.

6. The survey was done in the some major metro cities and may not truly express theopinion of whole country.


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CONCLUSION

The online trading is growing with a rapid pace with the rising level of education among the

customers. The other factors being that the Indian Investor nowadays wants to deal himself in

trading rather than depending upon other middlemen. They also consider the factors like time

saving in doing the online transactions, convenience etc. Although some people feel that onlinetrading is not secure but the people doing the trading online is happy about the increasing

security concerns among the companies.

The year 2008 has not been so good for the stock market and the Sensex and Nifty has been

dipping and affecting the business negatively for these companies but the same trend reversed in

2009 - 2010. This is due to the fact that at these times people do not prefer to open the DMAT

and Trading accounts. So the companies have to reduce their account opening fees to attract

more and more customers. Also people trade very less in the bearish market and the companys

profits against brokerage fees soars downwards. It is also a found fact that during the bearish

market the ratio of online trading becomes very less. Also there is an intense competitionamong the companies and the companies come up with new and new promotion schemes such

as discounted and negotiable brokerages, Zero balance accounts, waiving a/c opening fee and

AMC etc. As the internet penetration is growing in India this business holds a huge potential for

growth.

Now if the existing company will have to capture the market they will have to look for the

innovation in their product as well as service mix.

The mantra for success in the current situation will be educating the customers about the

benefits of online trading and the amount of ROI that can be generated through it.


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OVERALL EXPERIENCE

The last two months has been a great learning experience for me because I came to know about

many aspects of online trading which I didnt know in last 6 years of using the online trading

facilities. Some of the learning of mine is:

I improved my communication skills by learning how to talk to different kind of peopleas it requires the different approach to handle each person.

I became aware about various aspects of working of stock exchange I learnt few things about back office work I learnt about the consumer perception about the stock market and online trading. Patience was the thing I learnt the most as I have to approach various persons to whom I

had to explain same things again and again while approaching or calling them at regular

Intervals.

Online Trading at Stock Market in india

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