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Industry overview
Technology has changed the way you do trading. The entire process is speedy
with limited to zero paper work. NSE launched internet trading in early February
2000. It is the first stock exchange in the country to provide a web-based access to
PROCESS: Log on to the brokers’ site of your choice where you get real time
quotes, place a buy or sell order on the spot, and direct the site to debit the requisite
amount and depository account will reflect the changes which you can view
Internet Service Provider (ISP), a saving and a depository account with any bank
NSE introduced for the first time in India a fully automated screen based
investor across the length and breadth of country a safe and easy way to invest. The
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(NEAT) is a fully automated screen-based trading system which adopts the
When investors think of the stock market, they may imagine a specific place - such
as a stock exchange. In fact, the stock market is the abstract idea of stock trading
and stock exchange. All selling of stocks - at stock exchanges and in other ways -
When investors think of the stock market, they may imagine a specific place - such
as a stock exchange. In fact, the stock market is the abstract idea of stock trading
and stock exchange. All selling of stocks - at stock exchanges and in other ways -
affects the market overall. Following stock market information in the news can help
you make the right decisions about stock market investing. Luckily, today you can
get stock market data from a wide variety of sources. Knowing the stock market
price of your investments, being able to answer the question what is the stock
market and watching the market's ups and downs can help you become a stronger
investor.
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Why Stock Market Is Needed?
The stock market is simply a term for the overall market or industry that is
concerned with buying and selling company stock, both private and publicly traded
securities. The stock market does many things. It helps to set prices of stocks. The
more a stock is traded on the market and the more in demand the stock, the higher
is its value. Having a stock market that is interconnected with stock markets around
the world helps traders and investors to see how specific stocks are doing.
Of course, the stock market is mainly present to create money. Through the market,
investors - both companies and individuals - can buy stocks, which effectively
make them own a small part of a company. If the company prospers, investors are
rewarded with dividends and profits. Companies, by becoming public and offering
stocks to the public, can raise money and improve their profile through business
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Who Can Invest In the Market?
Stockbrokers and individuals can invest in the market. Individual investors invest a
lot although many businesses - such as financial institutions - invest more in the
financial advisor initially. This type of advisor can provide advice and can help
ensure that an investor's money gets a good return. More experienced investors may
be interested in one of the online investing options. These allow almost anyone
with a fast internet connection and a subscription to an investment site to buy and
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Before you begin to invest, you will want to learn about the stock market and get
the latest stock market information. This will ensure that you understand how this
type of investment works. Next, you will want to decide what your long-term goals
are. How much money do you want to make and by when? Having goals will make
it easier for you to make investment decisions. Finally, you will want to put aside
money for investing and get this money to a broker or advisor regularly so that it
can be invested for you. With these simple steps, you can start investing and seeing
When a company first offers stock, the way it determines price is quite complex.
profitability of the stock, overall market conditions, and other market factors.
However once the stock is being traded, it is investors themselves who determine
price of stock. If a stock starts to sell a lot, its price starts to climb because there is a
greater demand (and usually fewer investors willing to sell). When everyone starts
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selling a specific stock -its price drops due to panic or some other reason. Since
Companies such as the S&P, Euronext, and the FTSE are called stock market
indices and they capture the movement of stock prices. Usually, these indices are
business.
Getting the latest stock market information is a key priority for almost all investors.
If you wish to try stock market investing, it is important to understand and study the
market in order to make the right investment decisions. This can help you work
with an advisor - or even alone, if you wish - to make the most profits possible.
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OBJECTIVE OF STUDY
The growth of the share markets in India has opened more avenues for
investment to average Indian investor. Indian income levels are raising at a much
faster rate, as a result the demand for investment options is also on the rise.
network with individual customers & employees & continuously strengthen the
network for the mutual benefits for both sides, through Interactive, Individualized
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& Value Added Contacts continuously & over a long period of time. And what are
METHODOLOGY
Research Design
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Research design is the conceptual structure within which the research would take
Types of Research
I used a descriptive type of research. It is one which includes surveys and fact –
Data Sources
a) Primary data
b) Secondary data
Primary Data are those, which are collected afresh and for the first time and thus
happen to be original in character. Primary data will not only be relevant for
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Secondary Data are those which have already been collected by someone else and
For my research data has been procured from both primary and secondary sources.
Research Approach:
a) Quantitative Approach
b) Qualitative Approach
rigorous quantitative analysis in a formal and rigid fashion. This approach can be
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In this research a quantitative as well as Qualitative approach was used.
Research Instruments:
The various research instruments at the hands of the researcher are as follows: -
Sample Size
This refers to the number of items to be selected from the universe to constitute a
sample.
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For my research the sample size 50 customers surveyed.
LITERATURE REVIEW
World stock markets are booming, and emerging stock markets account for a
measure of stock market development. This article collects and compares a broad
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data from forty-four developing and industrial countries during the period from
1986 to 1993. The empirical results exhibit wide cross-country differences for each
The article constructs aggregate indexes and analyzes them to document the
relationship between the emergence of stock markets and the growth of financial
research into the links among stock markets, economic development, and corporate
financing decisions.
aggregate equity price index experiences abnormal returns of 3.3 percent per month
with the prediction of standard international asset pricing models that stock market
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Stock Market Development and Long-Run Growth Is the financial system
important for economic growth? One line of research argues that it is not; another
Moreover, some theories provide a conceptual basis for the belief that larger, more
efficient stock markets boost economic growth. This article examines whether there
In many developing countries with emerging stock markets, banks are fearful of
stock market development because they think that stock markets will reduce the
volume of their business. This article empirically analyzes the effects of stock
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market development on firms' financing choices using data from thirty developing
and industrial countries from 1980 to 1991. The results imply that initial
debt-equity ratio for firms and thus more business for banks. In stock markets that
are already developed, further development leads to a substitution of equity for debt
levered as the stock market develops, whereas small firms do not appear to be
Eighteen Nations
This study examines the relationships among stock prices in eighteen national stock
markets by using unit root and cointegration tests for the period 1961--92. All the
markets were analyzed individually and collectively in regions to test for market
efficiency. The results from unit root tests suggest that the world equity markets are
weak-form efficient. The cointegration test results show that there are only a small
number of significant cointegrating vectors over the last three decades. However,
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the number of significant cointegrating vectors increases after the October 1987
stock market crash, a result that is consistent with the contagion effect.
Applying the measure to stock returns from twenty-four national markets indicates
that market segmentation tends to be much larger for emerging markets than for
developed markets, and that the measure tends to decrease over time. Along several
dimensions, the proposed measure yields results that are consistent with reasonable
priors about the relations between effective integration and explicit capital controls,
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Exchange rate and stock price interactions in emerging financial
Interactions are investigated between exchange rates and stock prices in the
emerging financial markets of India, Korea, Pakistan and the Philippines. The
motivation is to establish the causal linkages between leading prices in the foreign
exchange market and the stock market; the linkages have implications for the
with a policy shift towards independently floating exchange rates. Some recent
monthly observations on the IFC stock price index and the real effective exchange
rate over 1985:01 - 1994:07. The results show unidirectional causality from
exchange rates to stock prices in all the sample countries, except the Philippines.
This finding has policy implications; it suggests that respective governments should
The stock market as a source of finance: a comparison of U.S. and Indian firms in
seeking funding, a firm's main choice is between external and internal financing.
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And, says the author, the evidence suggests that the stock market plays only a
limited role providing finance for both U.S. and Indian firms. The author finds that
internal finance plays less of a role for Indian firms than for U.S. firms - and
external debt a bigger role. This is consistent with theoretical predictions, given
that information and agency problems are less severe for Indian firms than for U.S.
and Japanese financial systems than American and British systems.) The author's
estimate of the role of the stock market as a source of finance is lower than other
of funds, rather than the financing of net asset growth and capital expenditures. To
the extent that these findings for India are generalizable to the other developing
countries - analysis was restricted to the stock market's role in providing finance -
the author concludes that the development of stock markets is unlikely to spur
emerging markets in Eastern Europe and Latin America, foreign investors have
played a much more active role in privatization, chiefly by investing in those stock
markets.
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Working of a stock market
Working of a stock market to learn more about how you can earn on the stock
shares in the market has to first place his order with a broker. When the buy order
of the shares is communicated to the broker he routes the order through his system
to the exchange. The order stays in the queue exchange's systems and gets executed
when the order logs on to the system within buy limit that has been specified. The
shares purchased will be sent to the purchaser by the broker either in physical or
demat format
Indian Stock Market Overview. The Bombay Stock Exchange (BSE) and the
National Stock Exchange of India Ltd (NSE) are the two primary exchanges in
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India. In addition, there are 22 Regional Stock Exchanges. However, the BSE and
NSE have established themselves as the two leading exchanges and account for
about 80 per cent of the equity volume traded in India. The NSE and BSE are equal
in size in terms of daily traded volume. The average daily turnover at the exchanges
has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore in 1998-99 and
further to Rs 2,273 crore in 1999-2000 (April - August 1999). NSE has around
1500 shares listed with a total market capitalization of around Rs 9, 21,500 crore
(Rs 9215-bln). The BSE has over 6000 stocks listed and has a market capitalization
of around Rs 9, 68,000 crore (Rs 9680-bln). Most key stocks are traded on both the
exchanges and hence the investor could buy them on either exchange. Both
exchanges have a different settlement cycle, which allows investors to shift their
positions on the bourses. The primary index of BSE is BSE Sensex comprising 30
stocks. NSE has the S&P NSE 50 Index (Nifty) which consists of fifty stocks. The
BSE Sensex is the older and more widely followed index. Both these indices are
calculated on the basis of market capitalization and contain the heavily traded
shares from key sectors. The markets are closed on Saturdays and Sundays. Both
the exchanges have switched over from the open outcry trading system to a fully
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transparency. The scrips traded on the BSE have been classified into 'A', 'B1', 'B2',
'C', 'F' and 'Z' groups. The 'A' group shares represent those, which are in the carry
forward system (Badla). The 'F' group represents the debt market (fixed income
securities) segment. The 'Z' group scrips are the blacklisted companies. The 'C'
group covers the odd lot securities in 'A', 'B1' & 'B2' groups and Rights
Indian secondary and primary market is the Securities and Exchange Board of India
(SEBI) Ltd.
considered as a trading period and trades executed during the day are settled based
on the net obligations for the day. At NSE and BSE, trades in rolling settlement are
settled on a T+2 basis i.e. on the 2nd working day. For arriving at the settlement
day all intervening holidays, which include bank holidays, NSE/BSE holidays,
Saturdays and Sundays are excluded. Typically trades taking place on Monday are
Concept Of Buying Limit Suppose you have sold some shares on NSE and are
trying to figure out that if you can use the money to buy shares on NSE in a
different settlement cycle or say on BSE. To simplify things for ICICI Direct
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customers, we have introduced the concept of Buying Limit (BL). Buying Limit
simply tells the customer what is his limit for a given settlement for the
desired exchange. Assume that you have enrolled for a ICICI Direct account, which
requires 100% of the money required to fund the purchase, be available. Suppose
you have Rs 1,00,000 in your Bank A/C and you set aside Rs 50,000 for which you
would like to make some purchase. Your Buying Limit is Rs 50,000. Assume that
you sell shares worth Rs 1,00,000 on the NSE on Monday. The BL therefore for the
NSE at that point of time goes upto Rs 1,50,000. This means you can buy shares
upto Rs 1,50,000 on NSE or BSE. If you buy shares worth Rs 75,000 on Tuesday
on NSE your BL will naturally reduce to Rs 75,000. Hence your BL is simply the
amount set aside by you from your bank account and the amount realized from the
sale of any shares you have made less any purchases you have made. Your BL of
Rs 50,000, which is the amount set aside by you from your Bank account for
purchase is available for BSE and NSE. As you have made the sale of shares on
NSE for Rs.100000, the BL for NSE & BSE rises to 1,50,000. The amount from
sale of shares in NSE will also be available for purchase on BSE. ICICI Direct
makes it very easy for its customers to know their BL on the click of a mouse. You
just have to specify the Exchange and settlement cycle and on a click of your
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.
process by which an investor can get physical certificates converted into electronic
form maintained in an account with the Depository Participant. The investors can
dematerialize only those share certificates that are already registered in their name
are two such organizations viz. NSDL and CDSL. The depository concept is similar
to the Banking system with the exception that banks handle funds whereas a
services offered by a depository has to open an account with the depository through
whom the depository services can be availed by the investors is called a Depository
the business of providing financial services like banks, brokers, custodians and
financial institutions. This system of using the existing distribution channel (mainly
constituting DPs) helps the depository to reach a wide cross section of investors
spread across a large geographical area at a minimum cost. The admission of the
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DPs involves a detailed evaluation by the depository of their capability to meet with
the strict service standards and a further evaluation and approval from SEBI.
Realizing the potential, all the custodians in India and a number of banks, financial
institutions and major brokers have already joined as DPs to provide services in a
shares, you save 0.5% in stamp duty. Avoids the cost of courier/ notarization/ the
need for further follow-up with your broker for shares returned for company
bonuses and rights into the depository account as a direct credit, thus eliminating
risk of loss in transit. Lower interest charges for loans taken against demat shares as
compared to the interest for loan against physical shares. RBI has increased the
per borrower as against Rs 10 lakh per borrower in case of loans against physical
securities. RBI has also reduced the minimum margin to 25% for loans against
dematerialized securities, as against 50% for loans against physical securities. Fill
up the account opening form, which is available with the DP. Sign the DP-client
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agreement, which defines the rights and duties of the DP and the person wishing to
open the account. Receive your client account number (client ID). This client id
along with your DP id gives you a unique identification in the depository system.
Fill up a dematerialization request form, which is available with your DP. Submit
your share certificates along with the form; (write "surrendered for demat" on the
face of the certificate before submitting it for demat) Receive credit for the
account. You can open a depository account with any DP convenient to you by
following these steps: Fill up the account opening form, which is available with the
DP. Sign the DP-client agreement, which defines the rights and duties of the DP
and the person wishing to open the account. Receive your client account number
(client ID). This client id along with your DP id gives you a unique identification in
you can open. However, if your existing physical shares are in joint names, be sure
to open the account in the same order of names before you submit your share
dematerialization request form, which is available with your DP. Submit your share
certificates along with the form; (write "surrendered for demat" on the face of the
certificate before submitting it for demat) Receive credit for the dematerialized
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shares into your account within 15 days. In case of directly purchasing
dematerialized shares from the broker, instruct your broker to purchase the
dematerialized shares from the stock exchanges linked to the depositories. Once the
order is executed, you have to instruct your DP to receive securities from your
broker's clearing account. You have to ensure that your broker also gives a
matching instruction to his DP to transfer the shares purchased on your behalf into
your depository account. You should also ensure that your broker transfers the
shares purchased from his clearing account to your depository account, before the
book closure/record date to avail the benefits of corporate action. Stocks traded
under demat: Securities and Exchange Board of India (SEBI) has already specified
for settlement only in the dematerialized form in for 761 particular scripts.
Investors interested in these stocks receive shares only in demat form without any
instruction to your broker. While SEBI has instructed the institutional investors to
sell 421 scripts only in the demat form. The shares by non institutional investors
can be sold in both physical and demat form. As there is a mix of both form of
stocks, it is possible if you have purchased a stock in this category, you may get
delivery of both physical and demat shares. Opening of a demat account through
ICICI Direct : Opening an e-Invest account with ICICI Direct, will enable you to
automatically open a demat account with ICICI, one of the largest DP in India,
thereby avoiding the hassles of finding an efficient DP. Since the shares to be
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bought or sold through ICICI Direct will be only in the demat form, it will avoid
the hassles of instructing the broker to buy shares only in demat form. Adding to
this, you will not face problems like checking whether your broker has transferred
Going Short: If you do not have shares and you sell them it is known as going short
rolling settlement cycle you will have to cover by end of the day on which you had
g o n e s h o r t .
Concept Of Margin Trading: Normally to buy and sell shares, you need to have the
money to pay for your purchase and shares in your demat account to deliver for
your sale. However as you do not have the full amount to make good for your
purchases or shares to deliver for your sale you have to cover (square) your
settlement cycle. In case the price during the course of the settlement cycle moves
in your favor (risen in case of purchase done earlier and fallen in case of a sale done
earlier) you will make a profit and you receive the payment from the exchange. In
case the price movement is adverse, you will make a loss and you will have to
make the payment to the exchange. Margins are thus collected to safeguard against
any adverse price movement. Margins are quoted as a percentage of the value of the
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transaction. Important facts for NRI customers: Buying and selling on margin in
borrowing of money or shares by your broker to make sure that the settlement takes
building a leveraged position at the beginning of the settlement cycle and squaring
off the trade before the settlement comes to end. As the trade is squared off before
the settlement cycle is over, there is no need to borrow money or shares. Buying On
Margin : Suppose you have Rs 1,00,000 with you in your Bank account. You can
use this amount to buy 10 shares of Infosys Ltd. at Rs 10,000. In the normal course,
you will pay for the shares on the settlement day to the exchange and receive 10
shares from the exchange which will get credited to your demat account.
Alternatively you could use this money as margin and suppose the applicable
margin rate is 25%. You can now buy upto 40 shares of Infosys Ltd. at Rs 10,000
value Rs 4,00,000, the margin for which at 25% i.e. Rs 1,00,000. Now as you do
not have the money to take delivery of 40 shares of Infosys Ltd. you have to cover
(square) your purchase transaction by placing a sell order by end of the settlement
cycle. Now suppose the price of Infosys Ltd rises to Rs. 11000 before end of the
settlement cycle. In this case your profit is Rs 40,000 which is much higher than on
the 10 shares if you had bought with the intent to take delivery. The risk is that if
the price falls during the settlement cycle, you will still be forced to cover (square)
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the transaction and the loss would be adjusted against your margin amount. Selling
On Margin : You do not have shares in your demat account and you want to sell as
you expect the prices of share to go down. You can sell the shares and give the
margin to your broker at the applicable rate. As you do not have the shares to
deliver you will have to cover (square) your sell transaction by placing a buy order
before the end of the settlement cycle. Just like buying on margin, in case the price
moves in your favor (falls) you will make profit. In case price goes up, you will
Types Of Orders: There are various types of orders, which can be placed on the
exchanges: Limit Order : The order refers to a buy or sell order with a limit price.
Suppose, you check the quote of Reliance Industries Ltd.(RIL) as Rs. 251 (Ask).
You place a buy order for RIL with a limit price of Rs 250. This puts a cap on your
purchase price. In this case as the current price is greater than your limit price,
order will remain pending and will be executed as soon as the price falls to Rs. 250
or below. In case the actual price of RIL on the exchange was Rs 248, your order
will be executed at the best price offered on the exchange, say Rs 249. Thus you
may get an execution below your limit price but in no case will exceed the limit
buy price. Similarly for a limit sell order in no case the execution price will be
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below the limit sell price. Market Order : Generally a market order is used by
investors, who expect the price of share to move sharply and are yet keen on buying
and selling the share regardless of price. Suppose, the last quote of RIL is Rs 251
and you place a market buy order. The execution will be at the best offer price on
the exchange, which could be above Rs 251 or below Rs 251. The risk is that the
execution price could be substantially different from the last quote you saw. Please
refer to Important Fact for Online Investors. Stop Loss Order : A stop loss order
allows the trading member to place an order which gets activated only when the last
traded price (LTP) of the Share is reached or crosses a threshold price called as the
trigger price. The trigger price will be as on the price mark that you want it to be.
For example, you have a sold position in Reliance Ltd booked at Rs. 345. Later in
case the market goes against you i.e. go up, you would not like to buy the scrip for
more than Rs.353. Then you would put a SL Buy order with a Limit Price of
Rs.353. You may choose to give a trigger price of Rs.351.50 in which case the
order will get triggered into the market when the last traded price hits Rs.351.50 or
above. The execution will then be immediate and will be at the best price between
351.50 and 353. However stock movements can be so violent at times. The prices
can fluctuate from the current level to over and above the SL limit price, you had
quoted, at one shot i.e. the LTP can move from 350…351…and directly to 353.50.
At this moment your order will immediately be routed to the Exchange because the
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LTP has crossed the trigger price specified by you. However, the trade will not be
executed because of the LTP being over and above the SL limit price that you had
specified. In such a case you will not be able to square your position. Again as the
market falls, say if the script falls to 353 or below, your order will be booked on the
SL limit price that you have specified i.e. Rs. 353. Even if the script falls from
353.50 to 352 your buy order will be booked at Rs. 353 only. Some seller,
somewhere will book a profit in this case form your buy order execution. Hence, an
investor will have to understand that one of the foremost parameters in specifying
on a stop loss and a trigger price will have to be its chances of executionability as
and when the situation arises. A two rupee band width between the trigger and stop
loss might be sufficient for execution for say a script like Reliance, however the
same band hold near to impossible chances for a script like Infosys or Wipro. This
vital parameter of volatility bands of scrips will always have to be kept in mind
Circuit Filters And Trading Bands: In order to check the volatility of shares, SEBI
has come with a set of rules to determine the fixed price bands for different
securities within which they can move in a day. As per Sebi directive, all securities
traded at or above Rs.10/- and below Rs.20/- have a daily price band of ±25%. All
securities traded below Rs. 10/- have a daily price band of ± 50%. Price band for all
securities traded at or above Rs. 20/- has a daily price band of ± 8%. However, the
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now the price bands have been relaxed to ± 8% ± 8% for select 100 scrips after a
cooling period of half an hour. The previous day's closing price is taken as the base
price for calculating the price. As the closing price on BSE and NSE can be
significantly different, this means that the circuit limit for a share on BSE and NSE
can be different.
which means something in return. Badla is the charge, which the investor pays for
carrying forward his position. It is a hedge tool where an investor can take a
short-selling the charge is termed as 'undha badla'. The CF system serves three
needs of the stock market : Quasi-hedging: If an investor feels that the price of a
stock he can participate in the volatility of the share. ? Stock lending: If he wishes
to short sell without owning the underlying security, the stock lender steps into the
CF system and lends his stock for a charge. ? Financing mechanism: If he wishes to
buy the share without paying the full consideration, the financier steps into the CF
system and provides the finance to fund the purchase The scheme is known as
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"Vyaj Badla" or "Badla" financing. For example, X has bought a stock and does not
have the funds to take delivery, he can arrange a financier through the stock
exchange 'badla' mechanism. The financier would make the payment at the
of the shares on X's behalf. You will only have to pay interest on the funds you
have borrowed. Vis-à-vis, if you have a sale position and do not have the shares to
deliver you can still arrange through the stock exchange for a lender of securities.
An investor can either take the services of a badla financier or can assume the role
of a badla financier and lend either his money or securities. On every Saturday a CF
system session is held at the BSE. The scrips in which there are outstanding
positions are listed along with the quantities outstanding. Depending on the demand
and supply of money the CF rates are determined. If the market is over bought,
there is more demand for funds and the CF rates tend to be high. However, when
the market is oversold the CF rates are low or even reverse i.e. there is a demand
for stocks and the person who is ready to lend stocks gets a return for the same. The
scrips that have been put in the Carry Forward list are all 'A' group scrips, which
have a good dividend paying record, high liquidity, and are actively traded. The
scrips are not specified in advance because it is then difficult to get maximum
return. All transactions are guaranteed by the Trade Guarantee Fund of BSE, hence,
there is virtually no risk to the badla financier except for broker defaults. Even in
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the worst scenario, where the broker through whom you have invested money in
badla financing defaults, the title of the shares would remain with you and the
shares would be lying with the "Clearing house". However, the risk of volatility of
Securities lending Securities lending program is from the NSE. It is similar to the
Badla from the BSE, only difference being the carry forward system not being
allowed by the NSE. Meaning this is a where in a holder of securities or their agent
lends eligible securities to borrowers in return for a fee to cover short positions.
sensitive in the form of influencing the price of a scrip, is procured or/and used
from sources other than the normal course of information output for unscrupulous
financial information about the company before it becomes public, in practice, the
Most companies warn employees about insider trading. SEBI has strict rules in
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place that dictates when company insiders may execute transactions in their
company's securities. All transactions that do not conform to these rules are, in
Nothing can seem quite so intimidating as the stock exchange; a hotbed of wealth
and commerce all converging in one place; fortunes won and lost; businesses built;
The stock exchange can mean a variety of things for a variety of people. To
understand the stock exchange you must understand its role in today’s economy.
To begin with, the stock exchange offers corporations the opportunity to fund their
operations and grow their business. The money made from investors who believe in
the products and services offered by the business is used to finance growth; profits
are passed onto the stock holders in the form of increased stock prices which they
can use to realize a profit upon the sale of the stock. This opportunity – to be traded
on the public stock market - is only offered to businesses of a certain size. It can
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Of course, the bigger picture of all this buying, selling, and growth of corporations
is the impact it has on the greater economy. A strong economy is dependent upon a
viable and thriving stock exchange and the same can be said for the other way
magnitude; to witness first-hand a nation’s financial axis. The stock exchange does
– a place of opportunity.
To learn all you need to know about the stock exchange, go online. You’ll find
tremendous resources at your disposal that will explain the complexities of the
stock exchange while laying the groundwork for your possible participation.
If you decide to become a part of trading on the stock exchange you can either
begin with online trading – a safe and minimally risky venture for novices – or see
a professional stock broker who can guide you through the stock exchange with
e a s e .
Either way, the stock exchange offers a bevy of opportunities for those looking to
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do something else with their money than having it sit in a bank account. Explore all
your options and you’re sure to find that you’ll be comfortable in no time.
and within seconds, hit a new high. The 30-share index took 5 days to reach 17,000
from 16,000.
The Sensex opened with a positive gap of 70 points at 16,969. The index is now up
Following is the timeline on the rise and rise of the Sensex through Indian stock
market history.
1 0 0 0 , J u l y 2 5 , 1 9 9 0
On July 25, 1990, the Sensex touched the magical four-digit figure for the first time
and closed at 1,001 in the wake of a good monsoon and excellent corporate results
37
2 0 0 0 , J a n u a r y 1 5 , 1 9 9 2
On January 15, 1992, the Sensex crossed the 2,000-mark and closed at 2,020
followed by the liberal economic policy initiatives undertaken by the then finance
3 0 0 0 , F e b r u a r y 2 9 , 1 9 9 2
On February 29, 1992, the Sensex surged past the 3000 mark in the wake of the
S i n g h .
4000,March30,1992
On March 30, 1992, the Sensex crossed the 4,000-mark and closed at 4,091 on the
expectations of a liberal export-import policy. It was then that the Harshad Mehta
On October 8, 1999, the Sensex crossed the 5,000-mark as the BJP-led coalition
38
6000,February 11 , 2000
On February 11, 2000, the InfoTech boom helped the Sensex to cross the
On June 20, 2005, the news of the settlement between the Ambani brothers boosted
investor sentiments and the scrips of RIL, Reliance Energy, Reliance Capital and
IPCL made huge gains. This helped the Sensex crossed 7,000 points for the first
t i m e .
the Sensex -- crossed the 8000 level following brisk buying by foreign and
The Sensex on November 28, 2005 crossed the magical figure of 9000 to touch
9000.32 points during mid-session at the Bombay Stock Exchange on the back of
frantic buying spree by foreign institutional investors and well supported by local
39
operators as well as retail investors.10,000 February 6, 2006
The Sensex on February 6, 2006 touched 10,003 points during mid-session. The
The Sensex on March 21, 2006 crossed the magical figure of 11,000 and touched a
life-time peak of 11,001 points during mid-session at the Bombay Stock Exchange
for the first time. However, it was on March 27, 2006 that the Sensex first closed at
The Sensex on April 20, 2006 crossed the 12,000-mark and closed at a peak of
The Sensex on October 30, 2006 crossed the magical figure of 13,000 and closed at
13,024.26 points, up 117.45 points or 0.9%. It took 135 days for the Sensex to
move from 12,000 to 13,000 and 123 days to move from 12,500 to 13,000.
40
14,000 December 5, 2006
The Sensex on December 5, 2006 crossed the 14,000-mark to touch 14,028 points.
It took 36 days for the Sensex to move from 13,000 to the 14,000 mark.
The Sensex on July 6, 2007 crossed the magical figure of 15,000 to touch 15,005
points in afternoon trade. It took seven months for the Sensex to move from 14,000
to 15,000 points.
The Sensex scaled yet another milestone during early morning trade on September
19, 2007. Within minutes after trading began, the Sensex crossed 16,000, rising by
450 points from the previous close. The 30-share Bombay Stock Exchange's
sensitive index took 53 days to reach 16,000 from 15,000. Nifty also touched a new
41
The Sensex finally ended with its biggest-ever single day gain of 654 points at
The Sensex scaled yet another height during early morning trade on September 26,
2007. Within minutes after trading began, the Sensex crossed 17,000.
42
OVERVIEW OF INDUSTRY AS A WHOLE
Capital Market
investment. The securities markets provide channels for the allocation of savings to
from those with surplus funds (investors) to those in need of funds (companies)
43
Savings are linked to investments through a range of financial products called
securities.
1. Stock Exchanges
3. Investors
44
The primary market in the channel for the sale of new securities, while the
secondary market deals in securities previously issued. So, the secondary market
45
STOCK EXCHANGE
The market or place where securities, viz. shares are exchange traded or
simply where buying and selling talks place, is called stock exchange or stock
market. Presently, the stock market in India consists of twenty-three regional stock
exchanges and two national exchanges, namely, the National Stock Exchange
The Bombay Stock Exchange (BSE) is the largest Stock Exchange, in the
country, where maximum transactions, in terms of money and shares take place.
The other major stock exchanges are Calcutta, Madras and Delhi Stock Exchanges.
46
Background: The BSE Sensitive Index (1978-79) has, to a considerable
extent, been serving the purpose of quantifying the price movements as also
The number of companies listed on the Bombay Stock Exchange has registered a
phenomenal increase from 992 in the year 1980 to about 4800 companies by the
end of July 2005 and their combined market capitalization rose from Rs. 5,421
the present market trends in a more effective manner and providing a better
newly emerged industry groups. Towards this end, the Exchange constructed and
launched on 27th May 1994, two index series viz. the BSE-200 and the DOLLEX.
Coverage: The equity shares of 200 selected companies from the specified
and non-specified lists of this Exchange have been considered for inclusion in the
sample for `BSE-200'. The selection of companies has primarily been done on the
basis of current market capitalization of the listed scrips on the exchange. Besides
47
volumes of turnover and certain fundamental factors were considered for the final
Choice of Base Year: The financial year 1989-90 has been chosen as the base year
for the price stability exhibited during that year and due to its proximity to the
current period.
LOGO OF NSE
48
1. The National Stock Exchange of India Limited has genesis in the report of
2000.
49
NSE Group
2. NSE.IT Ltd.
securities;
50
4. To operate a tight risk containment system.
2. NSE.IT Ltd
the country.
NSE.IT possesses the wealth of expertise acquired in the last six years by
the country.
NSE.IT is an Export Oriented Unit with STP and plans to go global for
various IT services in due course. In the near future the company plans to
51
3. India Index Services & Products Ltd. (IISL)
indices have been developed in the recent past, within India and
52
a. DotEx was a joint venture between I-flex Solutions Ltd. and
volumes.
53
NSE, depository participants and banks can offer
i n v e s t o r s .
securities, NSE joined hands with the Industrial Development Bank of India
54
(IDBI) and the Unit Trust of India (UTI) to promote dematerialization of
securities.
· LISTING
to apply to one or more stock exchanges, for getting its shares listed.
The detailed and elaborate procedure of getting the shares listed on a stock
55
Once the shares are listed, they are divided into two categories:
1. GROUP“A”SHARES
amount of capital, and equally a large scope for investment. These shares
non-specified shares.
56
VARIOUS ORDERS AND TRANSACTIONS
SETTLEMENT CYCLES
There are various types of orders, which can be placed by the buyer or
1. Market Order
2. Limit order
The seller specifies the minimum price that the security must fetch, and
3. A Day order
57
A day order remains valid only for the day when it is placed. If the order
4. A Week order
5. A Month order
6. An open order
An open order is an order, which is valid for one month. An open order
Similarly there are certain types of transactions, which are allowed on the
The delivery and payment is effected within the time or on the date
whichever is shorter.
58
These transactions also referred to as the transaction for "the account", are
The delivery and payment is affected within any time exceeding fourteen
days following the date of the contact as may be stipulated when entering
into the transaction provided the governing board or the president of the
59
CAPITAL MARKET PROCESSES
capital market for funds, by issuing shares for the first time. There are
Private Placement
60
Private placements are arranged through a merchant banker / investment
banker, who acts as an agent for the issuer and brings together the issuer and
the investors. Since the publics at large are not involved in a private
placement, and since allotments are mainly made to a few sophisticated and
Book building is basically a process used during an IPO for efficient price
discovery, i.e., for fixing an appropriate price for the issue that reflects
market and investor perceptions. During the period for which the market is
kept open, bids are collected from investors at various prices, which have to
be equal to or above a certain fixed “floor price” (minimum price). After the
bid closing date, the final offer price is fixed after taking into account the
61
SEBI
1988 and was given legal status in 1992 to promote and regulate the stock
markets in India.
The SEBI is the main regulatory body in the Indian capital market scenario.
62
Market Intermediaries and their role
The stock market is the meeting place for suppliers of funds and users of
fund. It is difficult for suppliers and users of funds to directly meet each
1. The amount of funds supplied by the supplier might not match the
issued by the user may not match the preference of the supplier
3. Substantial search costs and time will have to be spent for one party
sub-brokers.
63
Rolling Settlement
Earlier, the Indian stock exchanges were following the Account Period
period of 5 working days. At the end of the period, they are clubbed
together, positions are netted off and the balance is settled about a week
after the trading period. The members realize the sales proceeds and
the exchange.
However, now the Indian capital markets have moved over to the
settlement system, all trades executed on a day are netted off on that day
64
INVESTOR PROTECTION IN THE INDIAN CAPITAL
MARKETS
In order to protect the interests of the investors, SEBI has issued the DIP
1. They aim to secure full disclosure relevant information about the issuer and
the nature of the securities so that investors can make fully informed
decisions
2. Issuers are required to disclose any material “risk factors” involved in the
65
D E P O S I T O R Y
converted from physical form (share certificates) into electronic form (credit
accounts
between accounts
physical +shares
66
The bank is responsible for safekeeping money; a depository is
system, the process of transfer is made much easier and faster, by merely
passing book entries in the depository records, upon the instructions of the
67
d. Corporate Action: A depository handles corporate actions in 2 ways: By
corporate benefit
It has been made mandatory for all new IPOs to be traded in dematerialized
form. It has also been made compulsory for public listed companies making
68
IPOs worth more than Rs 10 crore to do the same only in dematerialized
form.
person who would like to avail the services of a depository has to enter into
STOCK BASICS
THE BULLS
finding jobs, GDP is growing and stock is rising. Picking stocks during a
bull market is easier because everything is going up. Bull markets cannot
69
last forever though, and sometimes they can lead to dangerous situation if
stocks become overvalued. A bull is a person who expects the share prices
THE BEARS
When the economy is bad, recession is looming and stock prices are falling
it leads to bear market. Bear markets make it tough for investors to pick
profitable stocks. One solution to this is to make money when stocks are
the sidelines until you feel that the bear market is nearing its end, only
short sales. A short sale is a position where the investor sells the shares
without holding those in anticipation that the prices will come down and he
will create a long position in the same shares to cancel the short position
70
CATEGORIES OF SHARES
i. Evergreen
These stocks are steady compounders, churning out steady
their markets, with sound strategies that will help them achieve and
sustain market dominance in the long run. They have strong brands,
to compound at between 18-20% per annum for the next five to ten
years.
a. Apple Green: These are stocks that have the potential to be steady
71
because their potential in the five to ten years' time is still not very
clear, although they might grow at rates faster than that of the
niche businesses, that have the potential to grow and dominate their
niches. Even better, they might turn out to be real giants, if their
c. Ugly Duckling : These are companies that are trading below their
Pick and wait for a predator who finds its assets undervalued to
come along. This could be a long wait but the returns could be
startlingly high.
72
e. Cannonball: These are companies with valuable assets or brands
Pick and wait for a predator who finds its assets undervalued to
come along. This could be a long wait but the returns could be
startlingly high.
COMPANY PROFILE
73
Religare, a Ranbaxy promoter group company, is one of the leading integrated
financial services institution of India. The company offers a large and diverse
Investment banking and institutional broking services. The services are broadly
clubbed across three key business verticals- Retail, Wealth management and the
all its businesses, structured and being operated through various subsidiaries.
Religare’s 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
74
Vision - To build Religare as a globally trusted brand in the financial services
75
Mission - Providing financial care driven by the core values of diligence and
transparency.
Brand Essence -Religare is driven by ethical and dynamic processes for wealth
creation
Brand Identity
Name Religare is a Latin word that translates as 'to bind together'. This name has
been chosen to reflect the integrated nature of the financial services the company
offers. The name is intended to unite and bring together the phenomenon of money
and wealth to co-exist and serve the interest of individuals and institutions, alike.
Symbol
The Religare name is paired with the symbol of a four-leaf clover. The four-leaf
clover is used to define the rare quality of good fortune that is the aim of every
financial plan. It has traditionally been considered good fortune to find a single four
leaf clover considering that statistically one may need to search through over
76
Each leaf of the four-leaf clover has a special meaning in the sphere of Religare.
The first leaf of the clover represents Hope. The aspirations to succeed. The dream
The second leaf of the clover represents Trust. The ability to place ones own faith
goal with the balance that brings satisfaction to all not in the binding but in the
The third leaf of the clover represents Care. The secret ingredient that is the
cement in every relationship. The truth of feeling that underlines sincerity and the
triumph of diligence in every aspect. From it springs true warmth of service and
The fourth and final leaf of the clover represents Good Fortune. Signifying that
rare ability to meld opportunity and planning with circumstance to generate those
77
Hope. Trust. Care. Good fortune. All elements perfectly combine in the
emblematic and rare, four-leaf clover to visually symbolize the values that bind
Accent usage
The diacritical tilde mark ( ˜ ) over the letter A in the Religare typeface indicates a
Pronunciation
rel•i•ga•re (rel'i-gâir)
78
Top Management Team
Mr. Sunil Godhwani is the CEO and Managing Director of our Company. He is a
engineering and finance from Polytechnic Institute, New York. He has more than
Mr. Godhwani joined our Board on July 13, 2006. He was appointed as CEO and
Managing Director of our Company on April 9, 2007. Mr. Godhwani is also the
79
Managing Director of our Company, he was Managing Director of Religare
Mr. Shachindra Nath (Group Chief Operating Officer) aged 36 years, carries the
overall responsibility for managing the key operations of our group. He joined RSL
on May 8, 2000. RSL, at that relevant point of time, was a subsidiary of Fortis
bachelor’s degree in law from the Banaras University, Varanasi, and a post
graduate diploma in intellectual property rights from the Amity Law College,
Delhi.
Prior to joining us, he was at Abhipra Capital Limited as a Senior Consultant and
Divisional Incharge and held several key positions there from 1998 until 2000. In
the past, he has also worked with Obeetee Textiles Limited, R. D & Company and
Garware Wall Ropes Limited. He has over 14 years of experience in the financial
services industry.
80
Mr. Anil Saxena- Group Chief Finance Officer, Religare Enterprises Limited
Mr. Anil Saxena (Group Chief Finance Officer), aged 38 years, carries the overall
responsibility for management and supervision of our group and has played a key
role in driving its growth. He joined RSL on August 1, 2001. RSL, at that relevant
point of time, was a subsidiary of Fortis Financial Services Limited, our Promoter
of Delhi.
Institute of the Cost and Works Accountants of India. Prior to joining us, he was at
their Vice-President. In the past, he has also worked with Fortis Financial Services
Limited and R. Singhania & Co. He has over 15 years of experience in the financial
services industry.
81
Board of Directors - Religare Enterprises Limited
82
PRODUCTS OFFERED
products under one roof through the Branch Network and Online mode
83
a. Mutual Funds
b. Insurance
c. Saving Products
3. Personal Credit
a. Personal Loans
Institutional Spectrum- To Forge & build strong relationships with Corporate and
Institutions
84
1) Institutional Equity Broking
2) Investment Banking
worth Individuals
4) Arts Initiative
85
New Initiatives
86
DATA ANALYSIS
87
The Various Players for Online Trading which are competing with each
other are:
a) Religare.com
b) Indiabulls .com
c) ICICIDirect.com
d) HDFCsec.com
e) 5paise.com
f) KotakStreet.com
g) Unicon Investment
RELIGARE
Company Background
88
Online Account Types
Normal Account
· Brokerage:
Delivery 0.50%
NIL for the first year and Rs.250 p.a from onwards.
89
Speed-e A/c
• Brokerage:
INDIABULLS
Company Background
90
IndiaBulls is a retail financial services company present in 70 locations covering 62
cities. It offers a full range of financial services and Products ranging from Equities
Pricing of IB Accounts
Signature Account
Account Opening: Rs
Brokerage: Negotiable
Power IndiaBulls
91
Demat: Rs 200, No AMC for this DP
Brokerage: Negotiable
ICICI Direct
Company Background
of ICICI Bank Limited and the Website is owned by ICICI Bank Limited.
Account Type
1. Cash on spot
2. Margin Plus
Premium trading interface of ICICIDirect Link is given to DBC partners and HNI’s
92
Demat: NIL, 1st year charges included in Account Opening Plus a facility to open
Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes.
HDFC Securities
Company Background
The HDFC BANK, HDFC and Chase Capital promote HDFC SECURITIES LTD.
HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1 advantage
93
• Demat: NIL, 1st year charges included in Account Opening
Brokerage:
Company Background
Indiainfoline was founded in 1995 and was positioned as a research firm in 2000
e-broking was started under the brand name of 5paisa.com. Apart from offering
94
online trading in stock market the company offers Mutual funds online. It also acts
• Brokerage:
95
Trader Terminal
d. Brokerage:
KOTAK STREET
Company Background
96
Kotak Street is the retail arm of Kotak securities. Kotak Securities limited is a joint
• Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction
• High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55
Keat Lite / Keat Desktop are trading interfaces. Keat Desktop with advanced tools
PRICING OF KOTAK
97
e) Brokerage Slab wise: Higher the volume, lower the brokerage.
Even older customers (on 0.25% & 0.40%) have been moved to
Unicon Investment
Company Background
Unicon is the retail broking arm of GLOBE Capital Securities Pvt. Ltd.
a) Unicon Plus
b) Unicon Swift
• Account Opening: Rs 1200 (1000+200), 1200 Rs. For trading account (500
brokerage in Month)
98
• Initial Margin: 10 times
• Brokerage:
leveraged delivery trades from T+1 day @ 21% p.a, on a daily basis
· In Indiabulls Rs.500 per month will be charged for access to a research even
99
· In ICICI direct, the trader have to sell his\her shares with the maximum time
of T+1 day where in Religare Ltd. it is T+2 day which is known as BTST.
· The choice of bank account is only limited to ICICI Bank where in Religare,
Religare Ltd.
· Also the website interface provided by the ICICI direct to its customers is
· Like ICICI direct, HDFC Securities is also having a slow website interface.
· Broking is the very small unit of HDFC Bank that’s why proper focus on
and Rs.5000/- in trader terminal for all the traders where it is not the same
in Religare Ltd.
his/her account.
100
· In 5 paisa, accounting system is manual and also online fund transfer
an account.
101
PEST ANALYSIS
a) Political
b) Economic
c) Social
d) Technological
Political Factors
As we know that the investment options in India are increasing day by day and also
the foreign investors are coming to India for investing their money. So, the
government should focus on cutting off the various taxes which restrict foreign
Different broking houses are also suffering from multiplicity of taxes. Every
broking house has to pay different taxes which automatically levied on the clients
Moreover, different broking house is under a strict licensing regime. Every broking
house has to take the license to operate and have to follow the SEBI guidelines
102
governed by the government. No broking house can make their own rules rather
As we know that, according to SEBI guidelines PAN Card is must to have for every
person to open his/her account which is sometimes very dissatisfactory for a normal
person because it takes almost 15-20 days in the making of a PAN Card.
So, the government should focus on this issues as they can easily affect the whole
investment industry.
Economical Factors
The GDP, GNP, disposable income of our country is sharply increasing and the
expectation that the economy will remain strong in the medium term is a positive
Other macro economic factors like the reduction in different taxes will also
investment is increasing year after year which is of course a very good sign for the
whole Indian economy but to maintain this constant rate of increase in investment,
government have to take some remedial actions in order to maintain the good rate
of investment.
Social Factors
103
Social factors also act as a strong influencing force in the investment sector. Indians
Indians are the firm believer that the foreign companies are far better than Indian
companies so that’s why most of the Indians like to invest their money in foreign
Indians are also the believer that Foreign companies pay more interest or dividend
Foreign companies.
So, the government should take necessary steps in creating awareness among the
people that the Indian firms are also doing very well and also going with shoulder
Technological Factors
competitors. As the technology is increasing very fast, broking houses also have to
adapt the technological changes in order to retain and increase the database for their
company.
104
SWOT ANALYSIS
105
A SWOT analysis focuses on the internal and external environments,
STRENGTHS
1 ASSUMPTION ACCURACY
Religare Ltd. is known for its high prediction accuracy. Religare Ltd. claims
that they are having an 90% prediction accuracy which is also a great
2 RESEARCH REPORTS
Religare Ltd. also sends daily reports to their customers on their e-mail for
various information. Various reports are send to the customers for various
106
information such as how the market will behave in future or how was the
market on previous day. Various reports which are send to the customers
are:
· Pre Report.
· Post Report.
Online fund transfer facility from leading Banks. Tie up with ten banks.
HDFC
CITI Bank
IDBI
OBC
IndusInd Bank
ICICI
Yes Bank
107
UTI Bank
Bank of India
4 EXPOSURE
5 RELATIONSHIP MANAGER
Last but not the least is Relationship Manager. Religare Ltd. provides the
out their queries and also they can have the information regarding the
investment option in which they can invest their money by taking minimum
WEAKNESS
1. BRANDING
Though the company has a efficient products but it still requires the
investor when one begins trading is that one must get timely delivery
of shares and proceeds from sale of shares. Also ones cash balances
with the broker must be safe and secure. Though this confidence in the
108
broker comes with time and experience, good and transparent
2. SERVICES
increases the faith of a customer but this is the one thing on which
OPPORTUNITIES
a. Ever-increasing Mark
After the NSE brought the screen based trading system, stock
markets are now more secured which has attracted lot of retail
investors and the demand is increasing day by day. This has resulted
109
b. LATEST TECHNOLOGIES.
improving technology and adapt the changes than they can have the
capital.
THREATS
· New Competitors
with that investment options are also increasing. Because of this new
110
competitors are taking place in the market as a broking house. This
Another biggest threat for Religare Ltd. is the brokerage charge from
111
The sample size of 50 customers has been taken from whom the various
questions have been asked and data is analysed on the basis of the answers
given by them.
V a l i d Cumulative
Particulars Frequency Percent Percent Percent
Valid yes 42 82.4 82.4 82.4
no 8 17.6 17.6 100.0
Total 50 100.0 100.0
112
By compare the above data I can say that 82.4% people are aware about the
online share trading. So we easily say that there is opportunity for all online
V a l i d Cumulative
Particulars Frequency Percent Percent Percent
Valid Indiabulls 12 23.5 23.5 23.5
Religare 9 17.6 17.6 41.2
Unicon 7 13.7 13.7 54.9
5paisa 12 23.5 23.5 78.4
I C I C I 10 21.6 21.6 100.0
113
direct
Total 51 100.0 100.0
Indiabulls
Religare
Unicon
5paisa
ICICI
direct
1
Frequen
cy
0
IndiaBull Religare Unico 5pais ICICI
114
By this survey we can easily conclude that 5 Paisa and India bulls are top into
the market in de-mat account with 23.5%. And then ICICI in next place with
21.6 percent and Religare are on fourth place with 17.6% and Unicon
V a l i d Cumulative
Particulars Frequency Percent Percent Percent
Valid yes 32 62.7 62.7 62.7
no 18 37.3 37.3 100.0
Total 50 100.0 100.0
115
Ye
B y
N
above
survey
we can
say that
62.7%
o f
people know about Religare investment. So it is good for Religare that in this
Frequenc V a l i d Cumulative
y Percent Percent Percent
Valid yes 24 49.0 49.0 49.0
no 26 51.0 51.0 100.0
Total 50 100.0 100.0
Yes
No
116
Are you satisfied with your company
N
Ye
49% o f
people
says t h a t
they are satisfied by the services provide by their firm but it is breaking that
117
What are your company’s brokerage charges? (Intraday/Delivery)(Charges in
paisa)
Frequen V a l i d Cumulative
cy Percent Percent Percent
Valid 0-5/10-25 11 21.6 21.6 21.6
5-10/25-50 29 56.9 56.9 78.4
25-50/more
10 21.6 21.6 100.0
then 1 rupee
Total 50 100.0 100.0
0-5/10-25
5-10/25-50
118
What is your 0-5/10-2
company brokerage
(Charges in charge?
Frequen
cy
0
5-10/25-5 25-50/more then 1
What is your company brokerage charge?
B y t h i s
survey we can say that maximum firms taken brokerage between 5-10/25-50
V a l i d Cumulative
Particulars Frequency Percent Percent Percent
Valid 0-5 8 17.0 17.6 17.6
5-8 17 33.0 33.3 51.0
119
8-10 25 50.0 49.0 100.0
Total 50 100.0 100.0
0-5
5-8
8-10
2
How much exposure your company provides
1
Frequen
cy
0
5- 8-1
0-
120
By this we
can say maximum firms provide exposure between 8-10 times of total invested
Frequenc V a l i d Cumulative
y Percent Percent Percent
Valid shares 20 39.2 39.2 39.2
mutual
14 27.5 27.5 66.7
funds
bonds 7 13.7 13.7 80.4
derivatives 10 19.6 19.6 100.0
Total 51 100.0 100.0
121
2 which ofShare
In these Financial Instruments do you invest
Frequen
cy
aware about
shares and some are aware about mutual funds and derivatives. And less
Which factor that you consider most attract you before investing in a
particular company?
122
Frequenc V a l i d Cumulative
y Percent Percent Percent
Valid f i n a n c i a l
11 21.6 21.6 21.6
position
current market
18 35.3 35.3 56.9
position
goodwill/ brand
9 17.6 17.6 74.5
name
future prospect 13 25.5 25.5 100.0
Total 51 100.0 100.0
Which factor
Investing
that you
in consider
a particular
most attract you
2
Frequen
cy
0
Current Goodwill of Future
Positio a
Financial
123
This is
very important things comes that maximum investors attracts towards current
market position of the company and it is35.6% of total people then 25.5% of
people attracts towards future prospects and left people are attracted through
124
SCOPE
There are various scopes for Religare Ltd. which I have found by this study such as:
· Many people are now eying towards investment and are ready to invest their
money which is a very good sign for Religare Ltd. to increase the database
competitors.
competitors.
125
LIMITATIONS
126
PROBLEMS FACED BY ONLINE TRADING
COMPANIES
As some of the people are doing trading with their existing brokers so they
feel comfortable with them only and not want to switch on to another
broker.
2. LACK OF KNOWLEDGE.
Since the knowledge of stock market is very less, it took lot of time in
3. BUSY SCHEDULE.
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4. RISKY PROFILE.
Some people think that investing money in shares is having a lot of risk and
rather a waste of time so they don’t want to invest their money in shares.
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DIFFICULTIES IN ONLINE TRADING
· FRAUD
trading is Fraud which can be faced by any trader. Fraud can take
prevails online.
should be there for traders so that they can take their decisions
instantly.
· LACK OF KNOWLEDGE
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· Traders who do trading online face the problem of proper
of a broking house, that’s why traders are not sure of investing their
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RECOMMENDATIONS
I would like to suggest some measures to Religare Ltd. so that they can compete
· Religare is having very few offices due to which it is very difficult for their
existing customers to reach to them. So, Religare must open some new
customers as well.
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· Service is the first priority for any customer on which company should
customers.
· Religare should try to reduce their cost such as account opening charges,
· Religare should contact their customers on regular basis for the problems
which they are facing which make the customer happy and can give
CONCLUSION
Here, the numbers of banks with a strong online presence are very few again,
dominated by new private banks and foreign banks. Both have lesser reach owing
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to a smaller network in the country. The relative inability of large public-sector
Internet penetration in India is still very low and concerns about security also tend
to predominate. In markets like the US, online brokerages are advertised very
heavily. Online trading in India has so far not seen similar levels of aggressive
advertising, with the exception of ICICI Direct and India bulls. Besides, only scripts
that have been compulsorily dematerialized can be traded on the net here.
use for the immediate future. Online trading firms can also market themselves
aggressively to students who are entering the professional arena, ensuring that their
entry into equity happens online. One of the major issues governing trading is the
Hence, not withstanding the current sentiment in the market, potential for online
the largest online stock trading country by the turn of the next decade.
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APPENDICES
BIBLIOGRAPHY
· Business Standard
· Business Times
· Economic Times
URLs
· www.religare.in
· www.moneycontrol.com
· www.icicidirect.com
· www.nseindia.com
· www.bseindia.com
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ANNEXURE
QUESTIONNAIRE
Dear Respondent,
research to compare different charges and services provided by trading firm to its
clients.
(a) Yes
(b) No
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2. In which company you have a De-mat account?
(b) Religare
(c) Unicon
(d) 5 Paisa
(a) Yes
(b) No
(a) Yes
(b) No
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(a) 0-5/10-25
(b) 5-10/25-50
(a) Shares
(c) Bonds
(d) Derivatives
company?
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(d) Future prospect
9. Do you prefer long term investment or short term investment and why? (Not
Personal Information
Name:
Age:
Phone No:
Occupation:
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