Investors Preference of Investment in Stock Market

A summer training project report Submitted in partial fulfillment of the requirements for the Award of degree of 2011-2013 By Omkar Yadav Roll no- AMF 28(MBA) Under the Guidance of Name of Corporate Guide Mr. Amit Gupta Assistant Manager (Sharekhan limited) Name of Internal Guide Prof. Dr Mahesh shitole

Institute of Management and Entrepreneurship Development Bharati Vidyapeeth University

CERTIFICATE FROM COMPANY This is to certify that Mr. Omkar son of Sh. Ram singar pursuing MBA from institute of management and entrepreneurship development, pune has successfully completed the project report in our organization on the topic title Investors Preference of Investment in Stock Market 03rd june to 23rd july 2012. During his project tenure in the company, we found him hard working, sincere and diligent person and his behaviour and conduct was good. We wish him all the best for his future endeavors.

Signature

Name and designation of the guide

CERTIFICATE OF ORIGNALITY This is to certify that the project report entitled investors Preference of Investment in Stock Market submitted to Bharati Vidyapeeth Deemed University, pune in partial fulfillment of the requirement for the award of the degree of MBA is an original work carried out by Mr. Omkar under the guidance of Mr. Amit Gupta The matter embodied in this project is a genuine work done by Mr. Omkar to the best of my knowledge and belief and has not been submitted before, neither to this university nor to any other university for the fulfillment of the requirement of any course of study.

Signature of the Student

Signature of the Guide Designation

CERTIFICATE This is to certify that the project titled investros preference of investment in stock market is an academic work done by omkar submitted in the partial fulfillment of the requirement for the award of the degree of MBA from Bharati Vidyapeeth Deemed University, Pune. It has been completed under the guidance of Mr. Mahesh Shitole and Mr. Amit Gupta. We are thankful to the Sharekhan limited for having allowed our student to undergo project work training. The authenticity of the project work will be examined by the viva examiner which includes data verification, checking the duplicity of information etc and it may be rejected due to non fulfillment of quality standards set by the institute. Dr. Sachin S. Vernekar (Director IMED)

ACKNOWLEDGEMENT

At the outset, I wish to express my sincere thanks to the almighty for showering his blessings on me to complete this project. I am deeply indebted to Mr. Amit Gupta (Assistant Manager) for giving me the opportunity to undergo my project in their esteemed organization and their timely suggestions & Valuable guidance. I also want to give thanks to Mr. Mahesh Shitole They constantly encouraged me and showed the right path from day first till the completion of my project. However, I accept the sole responsibility for any possible errors of omission and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

Omkar Yadav

Table of Content
Chapt er
I.

particular
Introduction
1 1.1 . 1 1.2 1.4 1.5 1.6 1.7 Overview of the industry

Page no.
7

Profile of the organisation Competitors information Industry analysis using porters five force model Other Players in the industry SWOT Analysis Statement of the Problem Objective and Scope of Study Data Collection Method Limitation of Study Customer Satisfaction New Development of Stock Market in India

15 20 21 26 38 39 39 40 42 43 44 46 56 57 58 59 60

II.

Research methodology
2.1 2.2 2.3 2.4

III.

Conceptual Discussion
3.1
3.2

IV. V.

Data Analysis 4.1 Primary data analysis with interpretation Finding, Conclusion and Suggestion
5.1 5.2 5.3 5.4 5.5

Conclusion Recommendation My learning Bibliography Questionnaire

CHAPTER 1 INTRODUCTION
OVERVIEW OF THE INDUSTARY

Stock exchanges to some extent play an important role as indicators, reflecting the performance of the countrys economic state of health. Stock market is a place where securities are bought and sold. It is exposed to a high degree of volatility. prices fluctuate within minutes and are determined by the demand and supply of stocks at a given time. Stock brokers are the ones who buys and sells securities on behalf of individuals and institutions for some commission. The Securities and Exchange Board of India (SEBI) is the authorized body, which regulates the operations of stock exchanges, banks and other financial institutions. The past performances in the capital markets especially the securities scam by Hasrshad Mehta has led to tightening of the operations by SEBI. In addition the international trading and investment exposure has made it imperative to better operational efficiency. With the view to improve, discipline and bring greater transparency in this sector, constant efforts are being made and to a certain extent improvements have been made.

HISTORY
HISTORY OF THE STOCK BROKING INDUSTRY

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meager and obscure. By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60. In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business. In 1887, they formally established in Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively known as "The Stock Exchange"). In 1895, the Stock Exchange acquired a premise in the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated. Thus in the same way, gradually with the passage of time number of exchanges were increased and at currently it reached to the figure of 24 stock exchanges.

DEVELOPMENT
An important early event in the development of the stock market in India was the formation of the Native Share and Stock Brokers Association at Bombay in 1875, the precursor of the

present-day Bombay Stock Exchange. This was followed by the formation of associations /exchanges in Ahmedabad (1894), Calcutta (1908), and Madras (1937). IN addition, a large number of ephemeral exchanges emerged mainly in buoyant periods to recede into oblivion during depressing times subsequently. In order to check such aberrations and promote a more orderly development of the stock market, the central government introduced a legislation called the Securities Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory on the part of a stock exchanges to seek government recognition. As of January 2002 there were 23 stock exchanges recognized by the central Government. They are located at Ahemdabad, Bangalore, Baroda, Bhubaneshwar, Calcutta, Chenni,(the Madras stock Exchanges ), Cochin, Coimbatore, Delhi, Guwahati, Hyderbad, Indore, Jaipur, Kanpur, Ludhiana, Mangalore, Mumbai(the National Stock Exchange or NSE), Mumbai (The Stock Exchange), papularly called the Bombay Stock Exchange, Mumbai (OTC Exchange of India), Mumbai (The Inter-connected Stock Exchange of India), Patna, Pune, and Rajkot. Of course, the principle bourses are the National Stock Exchange and The Bombay Stock Exchange , accounting for the bulk of the business done on the Indian stock market. While the recognized stock exchanges have been accorded a privileged position, they are subject to governmental supervision and control. The rules of a recognized stock exchanges relating to the managerial powers of the governing body, admission, suspension, expulsion, and re-admission of its members, appointment of authorized representatives and clerks, so on and so forth have to be approved by the government. These rules can be amended, varied or rescinded only with the prior approval of the government.

BSE (BOMBAY STOCK EXCHANGE)

BSE Limited is the oldest stock exchange in Asia What is now popularly known as the BSE was established as "The Native Share & Stock Brokers' Association" in 1875. Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient capital raising platform. Today, BSE is the world's number 1 exchange in the world in terms of the number of listed companies (over 4900). It is the world's 5th most active in terms of number of transactions handled through its electronic trading system. And it is in the top ten of global exchanges in terms of the market capitalization of its listed companies (as of December 31, 2009). The companies listed on BSE command a total market capitalization of USD Trillion 1.28 as of Feb, 2010. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification. It is also the first Exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BSE On-Line trading System (BOLT). Presently, we are ISO 27001:2005 certified, which is a ISO version of BS 7799 for Information Security. The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index. Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and options on the index are also traded at BSE.

NSE(NATIONAL STOCK EXCHANGE)

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NSE was incorporated in 1992 and was given recognition as a stock exchange in April 1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment. Subsequently it launched the Capital Market Segment in November 1994 as a trading platform for equities and the Futures and Options Segment in June 2000 for various derivative instruments. NSE has been able to take the stock market to the doorsteps of the investors. The technology has been harnessed to deliver the services to the investors across the country at the cheapest possible cost. It provides a nation-wide, screen-based, automated trading system, with a high degree of transparency and equal access to investors irrespective of geographical location. The high level of information dissemination through on-line system has helped in integrating retail investors on a nation-wide basis. The standards set by the exchange in terms of market practices, Products, technology and service standards have become industry benchmarks and are being replicated by other market participants. Within a very short span of time, NSE has been able to achieve all the objectives for which it was set up. It has been playing a leading role as a change agent in transforming the Indian Capital Markets to its present form. The Indian Capital Markets are a far cry from what they used to be a decade ago in terms of market practices, infrastructure, technology, risk management, clearing and settlement and investor service.

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NCDEX (NATIONAL COMMODITIES AND DERIVATIVES EXCHANGE)

NCDEX started working on 15th December, 2003. This exchange provides facilities to their trading and clearing member at different 130 centers for contract. In commodity market the main participants are speculators, hedgers and arbitrageurs. Exchange as on February 9 2012 offer contracts in 34 commodities comprising 23 agriculture commodity, 6 precious metals 2 energy, 1 polymer and 2 other metals. Promoters of NCDEX are 1. National Stock Exchange(NSE) 2. ICICI bank 3. Life Insurance Corporation(LIC) 4. National Bank for Agricultural and Rural Development (NABARD) 5. IFFICO 6. Punjab National Bank (PNB) 7. CRISIL WHY NCDEX? NCDEX is nationalized screen based system which is providing transparent, private and easy services. NCDEX is one of the traditional media which gives online information NCDEX is one of the Indian commodity exchange, constructed on the basis of the current national institutes the exchange has been established with the coloration of leading institutes like NABARD, LIC, NSI etc. In India NCDEX has maximum settlement guarantee fund. NCDEX has appointed two exports for checking quality at the time of delivery FACILITIES PROVIDED BY NCDEX NCDEX has developed facility for checking of commodity and also provides a wear house facility By collaborating with industrial partners, industrial companies, news agencies, banks and developers of kiosk network NCDEX is able to provide current rates and contracts rate.

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 To prepare guidelines related to special products of securitization NCDEX works with bank. To avail farmers from risk of fluctuation in prices NCDEX provides special services for agricultural. NCDEX is working with tax officer to make clear different types of sales and service taxes. NCDEX is providing attractive products like weather derivatives

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MCX (MULTI COMMODITY EXCHANGE)

Having started operations in November 2003, today, MCX holds a market share of over 85% (as on March 31, 2012 MCX had a market share of 86%) of the Indian commodity futures market. The Exchange has more than 2,170 registered members operating through over 3,46,000 including CTCL trading terminals spread over 1,577 cities and towns across India. MCX was the third largest commodity futures exchange in the world, in terms of the number of contracts traded in CY2011. MCX offers more than 40 commodities across various segments such as bullion, ferrous and non-ferrous metals, energy, and a number of agri-commodities on its platform. The Exchange introduces standardised commodity futures contracts on its platform. These contracts in futures exchanges provide an anonymous trading environment for ideal price discovery. The Exchange is the world's largest exchange in Silver and Gold, second largest in Natural Gas and the third largest in Crude Oil with respect to the number of futures contracts traded. Market Watch:

The market watch window is used to view the market details for a particular or group of contracts and for a particular instrument type. This window displays the following details: Symbol, Expiry, price quotation unit, buy qty, buy price, sell price, sell qty, last traded price, D.P.R, volume (in 000s), value (in lack),% change, average trade price, high, low, open, close & open interest.

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ABOUT SHAREKHAN COMPANY

Sharekhan is online stock trading company of SSKI Group, provider of India-based investment banking and corporate finance service. Sharekhan is one of the largest stock broking houses in the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI) has been among Indias leading broking houses for more than a century. Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com website, Sharekhan has around 510 offices (share shops) in 170 cities around the country. Share khan has state of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. You can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more. Type of Account:

1. Sharekhan Classic account:

Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. 2. Sharekhan Speed Trade account This account for active traders who trade frequently during the days trading session. Following are few popular features of SpeedTrade account: o o o o o Brokerage: Some stock trading companies charge direct percentage while others charge a fixed amount per Rs 100. Sharekhan charges 0.5% for inter day shares and 0.1% for intraday or you could say Sharekhan charges 50 paise per Rs 100. Single screen interface for cash and derivatives Real-time streaming quotes with Instant order Execution & Confirmation Hot keys similar to a traditional broker terminal Alerts and reminders Back-up facility to place trades on Direct Phone lines

15

Advantages of Sharekhan: Online trading is very user friendly and one doesn't need any software to access. They provide good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.

Disadvantages of Sharekhan: They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 Rs. (If you trade, you will lose majority of your money in brokerage). Hidden conditions and charges. They do not provide facility to book limit order trades during after-hours. Classic account holders cannot trade commodities. Cannot purchase mutual funds online.

HISTORY Sharekhan is 80 years old company which is started online in the year 2000 & it is the first company who started online in 1984 they ventured into institutional broking& corporate finance. CURRENT POSITION VISION To empower the investor with quality advice and superior service to help him take better investment decisions. We believe that our growth depends on client satisfaction. MISSION To provide the best customer service and product innovation tuned to diverse needs of clientele Continuous up-gradation with changing technology, while maintaining human values.

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 Respond to progressive globalization and achieving international standard.

Efficiency and effectiveness built on ethical practices.

CORE VALUE Customer satisfaction through Providing quality service effectively and efficiently Smile, it enhances your face value is a service quality stressed on periodic customer service Audits Maximization of stakeholder value Success through Teamwork, integrity and People

GENERAL INFORMATION

NAME

: S. S. KANTILAL ISHWARLAL SECURITEIS PVT. LTD.

HEAD OFFICE

: SHAREKHAN LTD. A 206, PHOENIH HOUSE, PHOENIH MILL COPUND, SENAPATI, BAPTA MARG, LOWER PAREL, MUMBAI - 400013

PH NO E-MAIL WEB SITE CHIEF EXECUTIVE OFFICER BRANCH OFFICES

: 1800 - 22 7500, 3970 75 00 : shrinivasb@branch.sharekhan.com : www.sharekhan.com : TARUN SHAH : 100 BRANCHES

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MARKET COVERAGE

Ground Network Largest in India

122 Franchisees and 28 branches Trade execution facility on BSE and NSE for Cash as well as Derivatives Depository/Demat account services Personalized Sharekhan research advice Uniform service standards

Sharekhans ground network includes over 250 centres across 123 cities in India and having around 120000 customers and an equal number of demat customers.

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Award-Winner

Winner of

Chip
magazines

Best

Financial Website Award

Sharekhan voted the most preferred stock broking brand in India In a countrywide study, Sharekhan emerges as the favorite of consumers. 8 July, 2005, Mumbai: Sharekhan, the retail broking arm of SSKI Group and one of the largest stock broking houses in the country, has won the prestigious Awaaz Consumer Vote Awards 2005 for the Most Preferred Stock Broking Brand in India, in the Investment Advisors category.

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Competitors information
MAJOR PLAYERS

1. S S KANTILAL ISHWARLAL SECURITIES PVT LTD. (www.sharekhan.com) 2. ICICI WEB TRADE LTD. (www.icicidirect.com)
3. INDIA INFOLINE 4. KOTAK SECURITIES LTD. (www.kotakstreet.com) 5. INDIABULLS (www.indiabulls.com) 6. MOTILAL OSWAL SECURITIES LTD. 7. HDFC SECURITIES LTD. (www.hdfcsec.com) 8. UTI SECURITIES LTD. 9. IDBI CAPITAL MARKET SERIVICES LTD. 10. REFCO SIFY SECURITIES PVT LTD. Parameters A/c Opening Fee Trading Sharekhan ICICI Direct Indiabulls India infoline A/c 750 975 900 750 Maintenance Fee 441 450 NIL NIL Brokerage Delivery 0.50 0.55 0.25 .50 Square Off 0.10 0.05 0.05 .05 Interface Banks Associated with HDFC, UTI, OBC, IDBI & Citibank ICICI Bank N.A. Citibank, HDFC, OBC, UTI & ICICI Kotak security HDFC Securities Motilal oswal Reliance money 750 700 550 950 50 NIL 900 190 0.59 0.50 .05-.09 .01 0.06 0.15 0.40 .01 Bank Kotak Bank & Citibank HDFC & Other 4 Banks ICICI and city bank NA

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Religare Anjal broking Way2wealth

499 390 350

300 300 332

.30 .30 .50

.03 .06 .05

NA NA

INDUSTRY ANALYSIS USING PORTERS 5 FORCES MODEL

POTENTIAL ENTERANT Investmart Various Banks Geojit Cipher UTI Securities Ltd. Refco Group Ltd. IDBI Capital Mkt. Services Ltd.

COMPETITORS COMPETITORS SUPPLIERS SUPPLIERS NSE NSE BSE BSE MCX MCX NCDEX NCDEX ICICI Web Trade Ltd ICICI Web Trade Ltd Kotak Securities Ltd Kotak Securities Ltd India Bulls India Bulls Motilal Oswal Securities Ltd Motilal Oswal Securities Ltd HDFC Securities Ltd HDFC Securities Ltd Reliance money Reliance money

BUYERS BUYERS Small Investors Small Investors Franchise/Business Franchise/Business Partners Partners HNIs HNIs MF Companies MF Companies HUF HUF Institutional Investors Institutional Investors

SUBSTITUTES SUBSTITUTES Mutual Funds Mutual Funds Insurance Insurance Bank FD Bank FD

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SUPPLIERS

NSE & BSE are playgrounds where common an investor trade through stock broking houses, for which they have to take permission from NSE/BSE. NSE & BSE are under the purview of SEBI, thats why stock broking houses like SSKI, have low bargaining power. But here there is one advantage that NSE/BSE have i.e. they cannot go for forward integration. MCX & NCDEX are stock exchanges which trade in commodities and derivatives. Here again stock broking houses have to follow rules and regulation of the same. Web maintainers are companies which maintain web sites & technical aspects of the same. Here stock broking houses like SSKI can have more bargaining power due to stiff competition among web maintaining companies. BUYERS

There are various types of investors who trade through stock broking houses like SSKI, which includes investors like small investors, medium net worth investors, business partners, institutional investors and mutual fund companies. Here the bargaining power of stock broking houses depends on how big the investor is. So here we can say that bargaining power of stock broking houses is high in case of small investors & HUF. While the bargaining power is moderate in case of HNI (High New Worth Investors)/ MNIs (Medium Net Worth Investors) and business partners. But the in case of mutual fund companies and institutional investors bargaining power is less.

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 There is competitive buzz in stock broking industry; competitors are offering low
brokerage and best services with added feature. So switching cost is pretty much less. So the buyer can easily switch over to competitors product. COMPETITORS The company is facing the competition from local as well as national level players. The local players provide facility for off-line trading while the national players like ICICIdirect.com and Kotakstreet.com, HDFC Security provide online trading services.

There are also other big names like Indiabulls, Motilal Oswal, encircles the company
form both the sides by providing online and off-line trading with competitive services. POTENTIAL ENTRANTS

The potential entrants in like Investmart, Jeojit and Cipher which are coming in near
future. Nationalized banks are also thinking to enter in this field by tying up with broking houses. E.g. Bank Of Baroda. SUBSTITUES Here substitutes are such instruments which can be used instead of investing in shares. The instruments like Bank FD, insurance, mutual funds are the substitutes. If the use of this instruments increase this may be disadvantage for the stock broking houses. The companies and banks which are having these instruments can plunge into this industry. ENTRY BARRIERS

Huge capital:- Capital is necessary not only for fixed facilities but also for customers
credit and absorbing start up losses. To start a stock broking house, one needs huge capital for technology up gradation and skilled manpower.

Technology:- Technology for stock broking houses is life saving device. Stock broking
requires huge capital to make their products user friendly, which in turn requires capital to employ skilled manpower. Thus, technology could be one of the entry barriers.

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Regulatory Constraints:- Obtaining a license is a tedious job for a stock broking house. It should comply with the regulation of the governing bodies like SEBI, NSDL, etc. For a stock broking houses to plunge into the stock broking industry, it needs to have some kind of financial background and expertise. Thus, regulators constraints could be an entry barrier.

Experience curve:- The core competency in this industry is the services which are
provided to the end-users and the research based activities which includes TIPS, fundamental as well as technical script analysis. Also the most important thing which helps already established firms is-TRUST which people would be having on firms like SSKI , Motilal Oswal, etc. this is very difficult for new companies to imitate.

Network:- The Reach to the customer is the key factor in the industry. The network of the companies like Motilal Oswal, Sharekhan, and ICICI is very efficient and spreaded all over India. It will take time for a new entrant to establish such a huge network (e.g. Marwadi), which say that,Network can come up as most difficult entry barrier to overcome.

Expected Retaliation:- Whenever a new player comes in the industry, the old companies have an option to reduce the prices of their product. This kind of practice is called expected Retaliation which is also possible in this industry in terms of less brokerage rates and reduced account opening charges. E.g. before the entry of so many mew companies, Sharekhan was having two types of accounts viz. speed trade speed trade plus, which were costing 1000 & 1500 account opening charges respectively. But due to competition, they have come up with only one account i.e. speed trade plus with the account charges of Rs.1000.

COMPETITIVE ANALYSIS

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Follower: The followers are those who just blindly follow the other player which are leader and challenges.

The players like Motilal Oswal, HDFC Securities, Kotakstreet are the followers.
LEADER: ICICIdirect.com is a leader in the online account which is having 1, 24,000 accounts in the country. While in offline account Sharekhan is leading with 64,000 offline accounts.

NICHER: ICICIdirect.com and Kotakstreet.com are the two stock broking houses which are focusing only on online investors. CHALLENGER: Sharekhan, Kotakstreet and Indiabulls come under this head. Sharekhan challenges competitors by providing quality services and research based advice. Indiabulls is also challenging with low brokerage rates and class one services.

OTHER PLAYERS IN THE INDUSTARY

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ICICI Direct
ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds ICICI Direct offers 3 different online trading platforms to its customers:

1. Share Trading Account:

Share Trading Account by ICICI Direct is mainly for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading, Margin Plus Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone. They also provide installable application terminal based application for high volume trader.

2. Wise Investment Account:

Along with MF and IPO investing in BSE and NSE, Wise Investment account also provide options to invest in Mutual Funds, around 19 Mutual Fund companies and bonds. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds. ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs, Bonds and stock trading. 3. Active Trader Account Active Trader account gives more personalized investment options to the investors. It allows investor to use online and offline stock trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI. Active Trader also provides commodity trading. Brokerage and fees: Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of demats transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.75% on delivery based trades. Advantages of ICICI Direct:

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3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. This feature makes ICICI the most interesting player in online trading facility. Unlike most of the online trading companies in India which require transferring money to the brokers pool or towards deposits, at ICICI Direct you can manage your own demat and bank accounts through ICICIdirect.com. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard. Trading is available in both BSE and NSE.

Disadvantages of ICICI Direct: Getting access to ICICIDirect.com website during market session can be frustrating. ICICI Direct brokerage is high and not negotiable. Not all stocks are available under Margin Plus Facility for linking account of ICICI Bank Only

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Reliance Money
Reliance Money, A group company of Reliance Capital Limited, is the financial services division of the Rs 10000 crores Reliance Anil Dhirubhai Ambani Group. Reliance Money has over 22 lakhs customers and more than 10'000 branches in around 5000 cities in India. Company is among the largest broking and distribution house of financial products and having share of more than 3% of total stock market volume at BSE & NSE. RelianceMoney.com enables its customer to invest & manage most of the services provided by Reliance Money including Equity (Stock) Trading, Commodity Trading, Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General insurances, Money Transfer, Forex exchange, Gold Coins and Credit Cards Services. Company recently entered in to Wealth Management with tools like investment in equity-linked portfolio management services, structured products, insurance and mutual funds. The Reliance Money stock trading websites uses special security features Security Token which makes online trading more secure without complexity. Stock Trading through RelianceMoney.com is available for BSE and NSE stock exchanges. Offline trading is also available through Reliance Money partners in more than 5000 city across India and through phone by dialing 022-39886000 The investment options available with Reliance Money online portal are as below: Equity (Stock) Trading at BSE, NSE and NSE F&O IPO Investment Derivatives Trading Forex Trading Commodity Trading (Gold, Silver, Crude etc....) at MCX, NCDEX and NMCE. Mutual Fund Investment Life & General Insurance Pure Swiss' Gold Coins (99.99% pure, 24 carat)

Trading platforms: Reliance Money provides 3 different trading platforms for equity trading: 1. Insta Trade 2. Fast Trade 3. Easy trade Reliance Money Technical Analysis (A paid service): Reliance Money offers a simplified, automated, sophisticated technical analysis to Indian retail broking consumers with the help of Recognia's Technical Analysis tools. Recognia, a Canada based company, has proprietary pattern recognition technology capable of recognizing patterns

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in the price charts of any publicly traded financial instrument including stocks, bon333ds, funds, commodities, currencies and indexes. The technical services are available for introductory free 7-day trial period to Reliance Money users. Post the trail period, this service is available to users at a nominal subscription of Rs. 99 for 3 months/ Rs. 179 for 6 months/ Rs. 299 for a year, i.e., less than Re 1 a day. Reliance Money Brokerage and fees: Reliance Money offers lowest brokerage rates in today's online stock trading industry in India. The brokerages are as low as 0.075% for delivery based trading and 0.02 for now delivery. For more detail about Reliance Moneys brokerage and fees visit the below section of this webpage. Advantages of Reliance Money Extra security features with 'Security Token', which is the most secure and tested technology in computer world. Simple, easy and fast online stock trading. Almost all investment options are available under one account including Equity Trading, Derivatives, Forex, Commodity, IPO, Mutual Funds and Insurance. Branches are available in all major cities and the number is growing.

Disadvantages of Reliance Money Customer Service is not that good. Small cap stocks are not available for trading.

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Kotak Securities

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, was set up in 1994. Kotak Securities is a corporate member of both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, Kotak Securities is one of the largest broking houses in India with wide geographical reach. Kotak securities online trading is the online trading portal of the Kotak Securities Ltd, the leading stock broking house of India. The online division of Kotak Securities Limited provides services like internet broking services, online IPO and mutual fund investments. Types of accounts: Kotak offers different account types according to users requirement: 1. Kotak Gateway Kotak securities gateway account opens the gateway to a world of investing opportunities for beginners. Kotak gateway user can trade anywhere, anytime using internet. Kotak also offers call and trade facility. They provide sms alert, research report, free news and market updates. Best feature of Kotak gateway is call and trade facility. Anybody can activate Kotak securities gateway account with any amount between Rs 20,000 to 5, 00,000. This can be in form of cash deposit or the value of the shares you buy. Brokerage will be charged based on the account type. For intraday trading brokerage is .06% both sides for less than 25 lakhs and .023% for more than 25 crores.

2. Kotak Privilege Circle This is the premium account for its users. Along with kotak gateway account benefits they provides independent market expertise and support through a dedicated relationship manager and a dedicated customer service desk which provides assistance in opening accounts, handling day-to-day problems, and more. They provides KEAT premium which is an exclusive online tool that lets you monitor what is happening in the market and view your gains and losses in realtime. One can activate Kotak securities privilege circle account with any amount more than Rs. 10, 00,000/- as margin, by way of cash or stock. For intraday trading brokerage is .06% both sides for less than 25 lakhs and .03% for more than 25 crores.

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3. Kotak High Trader This is the best offer for daily trader or intraday traders. This is an Auto Square Off product where you can enjoy the benefits of intra-day trading. Trader can get the 6 times exposure on the margin. They provide all the benefits which kotak gateway and privilege account provides. Trader can apply paper free order for IPO. One can activate Kotak securities high trader with any amount less than Rs 5, 00,000/- as margin, by way of cash or stock. The minimum brokerage that is applicable in the Kotak high trader account is 4 paisa on delivery and 4 paisa in the cash segment. 4. Kotak Freeway Frequent trader use this account type because freeway account enables its users to trade as many times as they like - at a fixed brokerage. One can activate Kotak securities freeway with any amount less than Rs. 1, 25,000/as margin, by way of cash or stock. They charge fixed brokerage of Rs.999/- a month and on delivery transaction brokerage is .59% on less than 1lakhs and .18% on more than 2 crores.

5. Kotak Flat This product is best suited for the needs of the Indian retail investor who actively invests through the internet. Kotak flat introduces the international trend of charging brokerages on per trade basis. Brokerage rate works up to 0.18% on delivery trades and 0.018% for intraday trades.

6. Kotak Assist This account most suits to long term investors. This account provides Complete assistance on all your financial investment.

Brokerage and Account opening fees: A trading account in Kotak requires you to have a minimum of Rs.1000 to start with, the bank account to have a minimum of Rs.2500. Brokerage: For Intra-day trading, Kotak brokerage is around 0.05%. For delivery trading, Kotak brokerage is around 0.45%.

Advantages of Kotak Securities Limited:

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 Kotak provides a Call & Trade facility to its customers wherein they can place and track their orders through phone when they are away from home. They provide daily SMS alerts, market pointers, periodical research reports, stock recommendations etc. Kotak provides exclusive online tool to monitor what is happening in the market and also investor can view gains/losses in real-time. Disadvantages of Kotak Securities Limited: In online trading sometimes delay comes. So it can be frustrating

Indiabulls

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Indiabulls is India's leading Financial Services and Real Estate Company having presence over 414 locations in more than 124 cities. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange Types of account: 1. Indiabulls Equity Trading Account Indiabulls Equity Trading Account is standard Online trading account from India bulls and along with online trading it also provides priority telephone access that gives you direct access to your Relationship Manager and full access to 'Indiabulls Equity Analysis'.

2. Power India bulls Power India bulls trading terminal is the most advanced new generation trading
platform with great speed. This trading terminal is built in JAVA.

Power India bulls is extremely reach in features including Live Streaming Quotes, Fast
Order Entry and execution, Tic by Tic Live Charts, Technical Analysis, Live News and Alerts, Extensive Reports for Real-time Accounting.

Brokerage and fees: Account opening fees: Rs 1200/- (Onetime, non-refundable) as below: 250/- Equity Trading Account opening charge 200/- Demat Account opening charge 750/- Software changes

Advantages of Indiabulls Brokerage is less compare to other online trading companies. Provide trading terminal 'powerbulls', a java based software. It's very fast in terms of speed and execution.

Disadvantages of Indiabulls Faces lots of complaints regarding portal breakdown.

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Motilal Oswal

Motilal Oswal Financial Services (MOSL), a leading brokerage firm, has exhibited robust and consistent growth in both institutional and retail broking. An established brand name and extensive geographic network covering 1,339 locations in over 426 cities and towns would provide it ample opportunities to cross-sell products and services. It has also forayed into related businesses like investment banking, private equity and asset management. We believe the stock offers quality exposure to the domestic equity broking and financial services market, which has impressive growth potential. Strong competitive positioning MOSL is one of the leading stock broking firms in India with a rapidly growing client base and wide distribution network. A respected research presence and extensive reach has resulted in robust growth in its retail business. The company also has a strong institutional equity business. It has consistently improved its market share in terms of traded volumes on the stock exchanges Diversifying into related businesses MOSL has forayed into related business like investment banking, private equity and asset management. Though all these business are linked to capital market, we believe the move would bring in various diversification benefits for the company going forward Customized investment management services MOSL offers customized investment management services to its retail clients. These services include planning, advisory, execution and monitoring a range of investment products. It also provides wealth management services. The company has classified its clients into three segments Mass Retail, Mid-Tier Millionaire and (PCG) Private Client Group. According to the needs of each segment, products and services are offered through the companys business locations and online channels. MOSL has a discretionary portfolio management business. The company is seeking to build this business rapidly. The target customer segment for wealth management business would largely be the HNW (high net-worth) segment. The growing client bases of its broking and distribution businesses would be a captive source for cross-selling these products. MOSL has recently launched a separate branded product (Purple) for catering to the needs of this segment. Strategy adopted by Motilal Oswal

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Religare

Religare Securities Ltd is a Ranbaxy promoter group company, is one of Indias largest and fastest growing integrated financial services institutions. The company offers a large and diverse bouquet of services ranging from equities, commodities, insurance broking, to wealth advisory, portfolio management services, personal finance services, Investment banking and institutional broking services. Religares retail network spreads across the length and breadth of the country with its presence through more than 900 locations across more than 300 cities and towns. Having spread itself fairly well across the country and with the promise of not resting on its laurels, it has also aggressively started eyeing global geographies Unique features and benefits of trading through Religare: Trade Reward - Trade Rewards is a unique offering from Religare that gives you dual benefits of hassle free investment experience online and an opportunity to earn while you invest. Zero Brokerage - Break the shackles. Get freedom from brokerage and avail zero brokerage on your trades through us. Exposure up to 20 times on your margin - Allowing you the freedom to trade without hassles throughout the day without having to worry about your cash margin. You can get exposure (on cash Segment) as high as 20 times for intraday trades. Of course conditions apply on above two. Interest on cash margin - Even while you are waiting to make your next trade or online investment, your unutilized cash does not lie idle with us. You earn interest on your unutilized cash margin.

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India Infoline
The India Infoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, portfolio management services, Mutual Funds, Life Insurance, Fixed Deposits, Gold Bonds and other small savings instruments to loan products and investment banking. Website of India Infoline for trading is www.5paisa.com. The company has a network of 976 business locations (branches and Sub-brokers) spread across 365 cities and towns. Today it has more than 800000 clients Trading Platform. 5Paisa offers 2 different online trading terminals to its customers: 1. Investor Terminal (IT): Investor Terminal is 5Paisa's equity trading terminal for low volume trader. This is web based terminal and could access from anywhere. This product provides limited features in comparison of Trader Terminal, which is another product provided by 5Paisa. 2. Trader Terminal (TT): Trader Terminal is for high volume equity traders. Trader Terminal provides high volume trading with powerful interface and fast order execution Brokerage and Account opening fees: Account opening fees Rs 500/- onetime non refundable Brokerage. 5 paisa offers charge only 5 paisa for Rs100 of intraday trade done, which is 0.05% brokerage. In case of in delivery trade, they charge an additional 0.20% for back office and securities handling.

Earlier the organizations which provided the facility of online trading was not safe enough to invest but some of the changes in the past years in the Indian share market have created the interest of trading in the shares by the people. Broadly we can classify three important factors which have contributed to the development of online trading in IndiaFirstly the major step was taken by the National Stock Exchange (NSE) in the year 1994 which allowed the electronic trading and seeing to this various other stock exchanges in India followed soon. This helped in making the fast, accurate and transparent transactions saving a lot of time then the traditional method of trading. The investors were also saved by the clutches of the fraud brokers at the times when the clients were not aware of the true prices of the shares. Secondly, in the year 1996 the dematerialization of the shares came (also known as DEMAT) which avoided the online presence of shares in an electronic form avoiding them from theft, pilferage or from other losses like counterfeiting and frauds regarding share transfer. The third step was the rapid growth of computer education and learning of internet by the people. With the evolving of internet the online trading became a hit and the investors became confident in investing just with a click of a mouse.

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With the happening of such events the ratio of trading has improved a lot. As it takes less time people praise this technology for trading purposes. Some people who traded rarely now even trades 2-3 times every day as it provides edge of researching about companies on the internet. The number of small investors is increasing on the daily basis that trades on the internet. If a person invests or trades in equities, derivatives, commodities etc through the use Internet it is known as online trading enabling the investor to connect electronically to buy or sell stocks, derivatives etc with the other investors. This can be done with the help of online service providers like investsmart, indiaInfoline etc. A person can access a stockbroker's website through a PC connected to Internet and can place his orders. The benefits areA person can see the latest market movement through streaming quotes. Reduces time lag due to self-execution and instant confirmation. Empowers traders to have a complete control over their trading decisions. A person can access his accounts and related information on the Website Provides greater convenience of trade as a person can trade from home or other convenient location. It is cheap in terms of cost associated and offers reduction in overheads A trader can view the historical charts on his computer The Internet revolution has changed the way to communicate and the way to do business in todays society bringing us closer and closer to vital sources of information. It provides us with means to directly interact with service-oriented computer systems tailored to our specific needs; therefore, we can serve ourselves better by making our own decisions This new access by the online trading customers to low-cost transactions and cutting-edge, realtime market information that formerly belonged only to brokers has opened up extraordinary new investment opportunities as well as a crucial need for state-of-the-art information. Today the investors use the Internet Client-Server technology to buy and sell the securities at an instant at any point of time. People investing online have reached the proportions. Online trading allows an investor to buy and sell shares on the exchange through Internet and helps in the direct control of his investments.

SWOT ANALYSIS
During this training at sharekhan, we had come to know the Strengths-WeaknessesOpportunities-Threats for the company and it is very useful for a company to analyze them. Therefore, the SWOT analysis is presented here and the suggestions for maintaining strengths and removing weaknesses are explained.

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Strength 1. Well-maintained infrastructure. 2. Lowest brokerage and other charges 3. Wide product range to enable the clients to choose the best alternative 4. A positive image in the existing clients. 5. Dedicated, Intelligent and Loyal staff. 6. The best investment advice correct up to 70-90 %. 7. On-line Trading products with tradetiger online trading software.

Weakness 1. Less awareness in the market. 2. Time consuming process for account opening, resolving the problems of the customers, etc. 3. Service quality is not maintained accordingly how they are promoted.

Opportunity 1. Slope of stock market towards delivery based transaction. 2. Large potential market for delivery and intra-day transactions. 3. Open interest of the people to enter in stock market for investing. 4. A large number of people still do not have demat account.

Threat 1. Decreasing rates of brokerage in the market. 2. Increasing competition against other brokers & DPs 3. Poor marketing activities for making the company known customers. 4. Losing the untapped market with the entry of the competitors. among the

CHAPTER 2 RESEARCH METHEDOLOGY

STATEMENT OF THE PROBLEM

India is a fastest growing country with population of over 1.2 million but still people are not aware of stock market and online trading that is why the invest in LIC, Gold, real estate and

38

bank but reluctant of invest in stock market and if they invest in stock market they do not know where to invest and how to invest in the market

OBJECTIVE
The main objective of the study is to analysis the awareness of online trading and major stimulant to invest in stock market their potential market among the people in Delhi. Ancillary objectives are:

1. To know the investment habit and purpose of investing, of the people of Pitampura
region.

2. To know the influencing force behind the decision making while trading in stock
market. 3. To determine what type of products the customers deal while doing the online trading 4. To find out the important factor which do mostly affect to the customer
5.

To develop a good strategy and process that improves the business of the organization.

RESEARCH DESIGN
Exploratory and Descriptive Research The research is primarily both exploratory and descriptive in nature. The sources of information are both primary and secondary. The secondary data has been taken by referring to various magazines, newspapers, internal sources and internet to get the figures required for the research purposes. The objective of the exploratory research is to gain insights and ideas. The objective of the descriptive research study is typically concerned with determining the frequency with which something occurs. A well structured questionnaire was prepared for the primary research and personal interviews were conducted to collect the responses of the target population.

39

The research methodology for the project completed in two phases: First 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 100 people who will be mainly from Pitampura region in Delhi. The sample will consist of people who are successively trade in stock market. Second Phase is the collection of Secondary Data: This involves the collection of Secondary data using internet and internal sources for comparison of Online trading account of other Broking houses in the market like ICICI Direct, MOTILAL Oswal, Religare and Reliance Money etc. This also involves talking to their executives regarding various features provided to the customer along with their Brokerage structure. Non Probability The non probability respondents have been researched by selecting the persons who do the stock trading. Those persons who do not trade in stocks have not been interviewed.

DATA COLLECTION METHOD

RESEARCH INSTRUMENTS
Questionnaire is a very common and widely use instrument for research. Researcher have used questionnaire as a tools to collect the information from various investors. Questionnaire consists of multiple option type questions to know about investment behaviour of respondent.

SAMPLING TECNIQUE
Initially, a rough draft was prepared a pilot study was done to check the accuracy of the Questionnaire and certain changes were done to prepare the final questionnaire to make it more

40

judgmental. Here researcher has adopted Non probability sampling method for choosing the respondent. Convenience sample ratio of 1:5 is adopted.

SAMPLING UNIT
The respondents who were asked to fill out the. These respondents comprise of the persons dealing in stock trading. The people have been interviewed in the open market, in front of the companies, telephonic interviews and through other sources also.

SAMPLING SIZE
The sample size was restricted to only 100 respondents. There were 526 investors who have recently opened a demat account with share khan in last 6 month. It was difficult to collect the data from all the investors in stipulated time so out of 526 investors researcher has selected 100 samples based on non probability sampling to represent all the population.

SAMPLING AREA
The area of the research was Pitampura, delhi.

LIMITATION OF THE STUDY

The various limitations of the study are: 1. People were not willing to answer the entire questionnaire due to the less time available to them. 2. Some respondents might be hesitant to divulge personal and financial information which can affect the validity of all responses. 3. There is lack of awareness among people about investing in stock market. So the people who are aware of such things were found in specific areas for survey purposes.

4. The survey was done in one region of Delhi and may not truly express the opinion of
whole country.

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5. A few people were unavailable for questionnaire so telephonic interview was conducted.

CHAPTER 3 CONCEPTUAL DISCUSSION

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

Customer Satisfaction
Applying conventional trading systems in India leads to many aspects of problems like manipulation, lot's of paperwork, insiders' illegal activities and etc. These problems cause traders' dissatisfaction and the lack of technological foundations creates an inefficient market. Stock market is growing up and the number of traders rapidly increasing, therefore following conventional method in handling and controlling the market, may in turn directs us

42

to lose the potential power of this market in order to integrate the traders' small capital. With no doubt, traders leave the market where there is no appropriate surveillance over the activities because the unsatisfied customer will not take all the risk in stock market. So it is clear that if stock market as a supervision organization could not offer suitable services to the traders, market expansion is meaningless. In other words, it seems that providing and recovering service quality in this market may enhance traders' satisfaction and encourage investing more and more. But how the traders' satisfaction can be measured and how can be proved that, there is a dramatically gap between what traders looking for and what traders receive as a service?

Stock market characteristics

High amounts spent on advertising: Because of relatively low barriers to entry, companies in this industry spend heavily on advertising in order to create a "brand" or "portal destination". The industry is in a race to lock up as many customers as possible, with the idea that a company can retain those customers by creating switching costs. Each company could create switching costs by customizing the company portal, making it costly for a customer who switches to competitors' site. Importance of technology: Companies in the industry compete on speed of access, speed of order processing, and system reliability. Conventional brokerages are not accustomed to dealing with this additional layer of complexity. Established online brokerages have an advantage over newly entering conventional brokerages in this area. Scale is important: With the large conventional brokerages entering the online business, gaining economies of scale will be important. Heavy advertising costs will need to be spread over a larger number of accounts. How successful a brokerage is at gaining and retaining customers over the next year will determine which online brokerages survive as independent businesses. Different service proposition: Online brokerages offer a different bundle of features compared to conventional brokerages. Convenient, twenty-four hours access for trading and research are defining characteristics of the online business. Convenience and low cost trades have been two primary drivers responsible for the significant transfer of investors from conventional brokerages to online brokerages.

Advantages and Disadvantages of investment in stock market

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

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

Control/Transparency: With online trading, power is literally at your fingertips. With

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

Efficiency: Getting information or feedback used to take minutes, sometimes even

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

Opportunity to take advantage of market movements: By trading online, you have

the ability to react quickly and take advantage of opportunities in the market that will hopefully enhance the value of your investments

Disadvantages
Despite all the advantages of Online Trading there are a few disadvantages. However, these disadvantages only apply to certain investors, the inexperienced investor, the traditional investor, and the busy investor. Expertise: Nobody involved in financial markets claims to know all the right moves, but everyone involved in the markets has an understanding of how things work. For an individual who knows nothing about stocks and nothing to look for might have a problem with online trading. Online trading does provide investors with sufficient research to make educated investments, but investors must be able to interpret the research and put it to use. Those individuals who do not have an understanding of the information might be better off letting a broker make the decisions.

Time: There are a lot of investors out there that are very well educated in the financial
markets but are too busy doing other things. Online trading requires an individual to do his or her own analysis. The research is provided by the online company, but the investor must go through the information and determine what is valuable to their investment strategies. This often times requires an individual to have some free time. Many investors just do not have the time to go through the research; therefore, using a broker is the only other option. For the traditional investor Online trading also has one major disadvantage:

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

investors grew up investing through a broker and interacting with that broker. Often time's traditional investors have very close relationships with their brokers and online

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trading eliminates the possibility of any relationships. Online trading might not be for everyone and often times are not. However, 82 percent of those people who invest online believe that most investors will invest online in five years. Whether or not this is true, trading online has become very popular and has opened a door to whole new perspective of investing. Whether you are a first time investor or a professional, online trading offers convenience, lower costs, and empowerment to all users.

NEW DEVELOPMENT IN STOCK MARKET Until July 10 MCX-SX could deal only in currency future and volume around 13,000 crore daily have been at a tickle. The SEBI approval for trading in equities, Equity future and options (F&O).

CHAPTER 4 DATA ANALYSIS

Ans.1 What is your education qualification?

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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

Ans. 2 What is your annual income?

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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 income level 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

Ans.3 What percentage of your monthly household income could be available for investment?

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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 of investment, 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

Ans.4 Where do you often invest your money?

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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 online trading

Ans.5 What is the primary objective of your investment in stock market?

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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

Ans.06. To operate a computer is easy for me

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INTERPRETATION 76% (26+51) of the total respondent believe that operate a computer is easy for me whereas 20%(13+7) of the respondent is having problem to operate a computer out of that 20% , 75 believe that they cant go for computer So, if 78% of the people who are dealing with the stock market is having computer at their house and around 76% of the same population dont have any problem to operate a computer So around 60 % is there who is having computer and they dont have problem to operate a computer

Ans.07 online trading is easy, fast and secure way of trading?

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INTERPRETATION 51% of the total respondent believe that online trading is a easy task Whereas 41% of the respondent believes that to deal with online Trading is not a easy task and 85 was confused to anything about that the trading via internet is an easy task or not. There is a difference between the people who believe and who dont believe is not very big that is only 10% , the reason of this problem can be if a person is doing its investment on its own he or she think of the problem of being mistaken in the transaction. So there is a need of proper training to do trading online.

Ans08.Services provided by Sharekhan to you is?

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INTERPRETATION 82% respondents are happy with the services provided by Sharekhan limited where as 8% people need some more improvement in the services some of them like their software called tradetiger.

Ans.09.How do you take decisions If You want to trade in stock market?

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INTERPRETATION In my study I was found that 26% of investor invest money independently analyzing the market and very less people about 7% use to take the advice of their relative for section of better stock. 25% investors usually seek the help of brokers to understand the market trend. 25% people rely on news and invest accordingly.

Ans.10. If You invest in stock market, what would be your first preference from the list given below?

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INTERPRETATION 40 percent respondent feel comfortable in investment in equity where as only 23 percent respondent go with commodity very less people like to invest in currency market. Now a day investors have many option to invest in stock market but due to lack of awareness people do not go with other tools of investment.

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CHAPTER 5 FINDING CONCLUSION AND SUGGETION

CONCLUSION

Most of the people in pitampura are investing in fixed return Instruments.

But there are investors who use Equity as an investment tool. Those people who want to invest in Derivatives & Commodities are investing mainly for reducing risk and they consider them as investment tool. People generally want to take trading decisions independently or under the guidance of Friends or Well Known Stock Broking Houses.

Literature and Self Experience can be taken as the best method to impart education
about stock market.

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RECOMMENDATION
Sharekhan needs to make its marketing team strong and also it should increase marketing activities such as promotional campaigns.

Sharekhan should educate the investors about stock market by organizing classes, corporate
presentations, taking part in consumer fairs, organizing events.

Company should show the benefits of trading in stock market. Sharekhan can also use Newspapers and Local News Channels as a medium of advertising. Sharekhan may also use its helpline number for giving education on Derivatives,
Commodity currency and equity market.

Company may appoint special team for giving education & attracting people towards
investment in stock market.

Sharekhan

need to conduct more training programme to their sales force so that

productivity could be improve in future.

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MY LEARNING
During the 50 days training I explore my knowledge of stock market. I also know that how to implement theory in practice. I also got the chance for trading Share khans product like Sales Executives so that it improve my convincing power and also give chance to meet different people .It also increase my confidence. It is a memorable experience to be a part of share khan family. I am always thankful to them.

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BIBLIOGRAPHY Books: Kothari C.R., Research Methodology, New Delhi, Vikas Publishing House pvt.Ltd. 1978

Pathak Bharti v.,Indian Financial Syatem,Delhi,Person Education(Singapore) Pvt.Ltd.

Websites:

1. www.bseindia.com 2. www.nseindia.com 3. www.sharekhan.com 4. www.ncdex.com. 5. www.mcx.com 6. www.moneycontrol.com

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Questioner

Name ___________________________
01. Education: Higher Secondary Senior Secondary
02. What is your annual income?

Mobile No ________________________

Professional Degree Post Graduate

Graduate

Below 100000 300000-400000

100000-200000 Above 400000

200000-300000

03. What percentage of your monthly household income could be available for investment? Less than 5%

5% to 10% More than 20%

10% to 15%

15% to 20%

04. Where you would like to invest your savings? Equity Term Deposit Mutual Fund others Insurance

05. What is your objective of investment?

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Capital Appreciation Wealth Preservation

Sources of Income other

Retirement Planning

06. To operate a computer is easy for me Strongly Agreed Disagree Agree Strongly Disagree Cannot say

07. Online trading is a fast and secure way of trading? Strongly Agreed Disagree Agree Strongly Disagree Cannot say

08. Services provided by Sharekhan to you is? Excellent Fair Very Good Poor Good

09. How do you take decisions If You want to trade in stock market? Independently: News Channels: Broker/Agent: News Papers: Internet: Friends and Relative:

10. If you invest in stock market, which would be your first preference from the list given below? Commodities: Currency: Equity: Derivatives:

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62