A PROJECT REPORT ON

“A STUDY ON ONLINE TRADING PROCESS AT KALPATARU

MULTIPLIER LTD, BHOPAL”

Submitted by

NIKITA SHARMA

Reg No: 2016MBA006

Under the guidance of

Dr B.Padmapriya

Associate Professor

Programme Leader MBA

Jagran Lakecity Business School

Submitted in Partial Fulfilment of the requirements

Of Jagran Lakecity university for the Award of the degree in

Master of Business Administration

Jagran Lakecity Business School

JAGRAN LAKECITY UNIVERSITY

BHOPAL-462001

Session 2016-2018
 DECLARATION

I hereby declare that my summer internship training project report title “A Study of how to

trade in share market” is an authentic work done by me as a part of study.

The project was undertaken as a part of the course curriculum of MBA programme of

JAGRAN LAKECITY UNIVERSITY Bhopal this has not been submitted to any other

examination body.

Date: - Nikita Sharma

Signature: - MBA III Semester

 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind

support and help of many individuals and organizations. I would like to extend my sincere

thanks to all of them.

I am highly indebted to Dr B.Padmapriya (Associate Professor and Programme Leader

MBA) for her guidance and constant supervision as well as for providing necessary

information regarding the project & also for her support in completing the project.

I would like to express my gratitude towards my parents & member of kalpataru multiplier

LTD for their kind co-operation and encouragement which help me in completion of this

project.

I would like to express my special gratitude and thanks to industry persons for giving me

such attention and time.

My thanks and appreciations also go to my colleague in developing the project and people

who have willingly helped me out with their abilities.

Nikita Sharma Dr B.Padmapriya

MBA III Semester Associate Professor

Place:- Bhopal Programme Leader MBA

Date:-
 EXECUTIVE SUMMARY

This report is all about the online trading process of Kalpataru Multiplier Ltd and the main
aim of this report is to have an adequate knowledge of product and services of the Kalpataru
Multiplier Ltd.

Initial part of this project report focuses on the online trading process of Kalpataru Multiplier
Ltd. We learnt how they help their customers to buy and sell shares online and what are the
different ways through which a person can enter into a stock market instead going for the
online trading process.

Further the project tells about the profile of the company. It provides knowledge about the
company’s history, mission, vision and objective of the company. Also it gives special
emphasis on the online trading process of the company.

This study suggests the overall trading process of Kalpataru Multiplier Ltd from intraday
trading to future option trading in the stock market.

The study altogether gives knowledge about what are the various ways for entering into a
stock market and how a person can easily buy and sell shares through stock broking agents.
 TABLE OF CONTENT

Particulars Page No.

1. Introduction 1-2
1.1 Internship Objective
1.2 Scope Of Study
1.3 Time Frame
1.4 Geographical Area
2. Stock Exchange In India 3-9
2.1 Bombay Stock Exchange
2.2 National Stock Exchange
3. Company Profile 10-15
3.1 Introduction
3.2 Rewards And Achievements
3.3 Mission Vision And Objective
3.4 Clearing Members Of Kalpataru Multiplier Ltd
3.5 Organizational Structure
4. Departments 16-18
4.1 Marketing Department
4.2 Human Resource Department
5. Product And Services 19-33
5.1 Product And Services Of Kalpataru Multiplier Ltd
5.2 Trading Options In Kalpataru Multiplier Ltd
5.3 Trading Process Of Stock Market
5.4 Online Trading Process Of Kalpataru Multiplier Ltd
6. Learning And Outcomes 33-38
6.1 Conclusion And Recommendation
7. Bibliography 39
 CHAPTER I

INTRODUCTION
1.1 OBJECT IVE OF THE STUDY
• To understand & analyze the marketing strategies of online trading of Kalpataru
Multiplier ltd.
• To improve the format of daily sales report (DSR)
• To learn how to open the Demat account of potential customers in favour of
kalpataru multiplier ltd.
• To analyse the market trends of Mutual Funds investment.
• To study some of the mutual funds schemes and observe the funds management
process of mutual funds.
• To explore the recent developments in the Mutual Funds in India.

1.2 SCOPE OF STUDY

The matter included in the report is observed during the time of internship. It explains
specifically what is share market how share are traded, what are the various modes to enter
into a share market and how to build a portfolio.

1.3 TIME FRAME

The duration of internship is of 45 days, started from 15th May17 to 1st July17.

1.4 GEOGRAPHICAL AREA

The study was confined to Kalpataru Multiplier Ltd situated in Western Block, 1st floor,
above Central Bank, GTB complex, T.T. Nagar, Bhopal, Madhya Pradesh.
 CHAPTER II

STOCK EXCHANGE OF INDIA

2.1 STOCK EXCHANGES IN INDIA

2.1.1 BSE (BOMBAY STOCK EXCHANGE)

The Bombay Stock Exchange (BSE) is an Indian stock exchange located at dalal street, kala
ghoda, Mumbai (formerly Bombay), Maharashtra, India.

Established in 1875, the BSE is Asia’s first stock exchange, It claims to be the world's fastest
stock exchange, with a median trade speed of 6 microseconds,The BSE is the world's 11th
largest stock exchange with an overall market capitalization of more than $ 2 Trillion as of
July, 2017. More than 5500 companies are publicly listed on the BSE. Of these, as of
November 2016, there are only 7,800 listed companies of which only 4000 trade on the stock
exchanges at BSE and NSE. Hence the stocks trading at the BSE and NSE account for only
about 4% of the Indian economy.

2.1.2 History

Bombay stock exchange was founded by Premchand Roychand. He was one of the most
influential businessmen in 19th-century Bombay. A man who made a fortune in the stock
broking business and came to be known as the cotton king, the bullion king or just the big
bull. He was also the founder of the native share and stock brokers association, an institution
that is now known as the BSE.

The bombay stock exchange is the oldest exchange in Asia. Its history dates back to 1855,
when 22 stockbrokers would gather under banyan trees in front of Mumbai's town hall. The
location of these meetings changed many times to accommodate an increasing number of
brokers. The group eventually moved to Dalal Street in 1874 and became an official
organization known as "The Native Share & Stock Brokers Association" in 1875.

On august 31, 1957, the BSE became the first stock exchange to be recognized by the Indian
government under the securities contracts regulation Act. In 1980, the exchange moved to the
Phiroze Jeejeebhoy towers at Dalal street, fort area. In 1986, it developed the S&P BSE
SENSEX index, giving the BSE a means to measure the overall performance of the exchange.
In 2000, the BSE used this index to open its derivatives market, trading S&P BSE SENSEX
futures contracts. The development of S&P BSE SENSEX options along with equity
derivatives followed in 2001 and 2002, expanding the BSE's trading platform.

Historically an open outcry floor trading exchange, the Bombay Stock Exchange switched to
an electronic trading system developed by CMC Ltd. in 1995. It took the exchange only 50
days to make this transition. This automated, screen-based trading platform called BSE On-
line trading (BOLT) had a capacity of 8 million orders per day. The BSE has also introduced
a centralized exchange-based internet trading system, BSEWEBx.co.in to enable investors
anywhere in the world to trade on the BSE platform. Now BSE has raised capital by issuing
shares and as on 3rd may 2017 the BSE share which is traded in NSE only closed with
Rs.999 .

The BSE is also a partner exchange of the united nations sustainable stock exchange
initiative, joining in September 2012

2.1.3 Indices

The launch of S&P BSE SENSEX in 1986 was later followed up in January 1989 by the
introduction of the BSE national index . It comprised 100 stocks listed at five major stock
exchanges in India – Mumbai, Calcutta, Delhi, Ahmedabad and Madras. The BSE national
index was renamed BSE-100 index from 14 October 1996 and, since then; its calculations
take into consideration only the prices of stocks listed at BSE.

The BSE disseminates information on the price-earnings ratio, the price to book value ratio,
and the dividend yield percentage of all its major indices on day-to-day basis. The values of
all BSE indices are updated on a real-time basis during market hours and displayed through
the BOLT system, the BSE website, and news wire agencies. All BSE indices are reviewed
periodically by the BSE index committee. This committee, which comprises eminent
independent finance professionals, frames the broad policy guidelines for the development
and maintenance of all BSE indices. The BSE index cell carries out the day-to-day
maintenance of all indices and conducts research on development of new indices.

SENSEX is significantly correlated with the stock indices of other emerging markets. The
S&P BSE small cap index accounts for 45% of the annual turnover, while the S&P BSE
midcap Index and the S&P BSE large cap Index account for 21% and 30% respectively
2.3 NATIONAL STOCK EXCHANGE NSE

The National stock exchange of India (NSE) is the leading stock exchange of India, located in
Mumbai. The NSE was established in 1992 as the first demutualized electronic exchange in
the country. NSE was the first exchange in the country to provide a modern, fully automated
screen-based electronic trading system which offered easy trading facility to the investors
spread across the length and breadth of the country. Vikram Limaye is Managing Director &
chief executive officer (MD & CEO) of NSE.

National Stock Exchange has a total market capitalization of more than US$1.41 trillion,
making it the world’s 12th-largest stock exchange as of March 2016. NSE's flagship index,
the NIFTY 50, the 51 stock index (50 companies with 51 securities inclusive of DVR), is
used extensively by investors in India and around the world as a barometer of the indian
capital markets. However, only about 4% of the indian economy / GDP is actually derived
from the stock exchanges in India.

NSE was set up by a group of leading indian financial institutions at the behest of the
government of India to bring transparency to the Indian capital market. Based on the
recommendations laid out by the government committee, NSE has been established with a
diversified shareholding comprising domestic and global investors. The key domestic
investors include Life insurance corporation of India, State Bank of India, IFCI Limited
IDFC Limited and Stock Holding Corporation of India Limited. And the key global investors
are Gagil FDI Limited, GS strategic investments Limited, SAIF II SE Investments Mauritius
Limited, Aranda Investments (Mauritius) Pte Limited and PI Opportunities Fund I.
NSE offers trading, clearing and settlement services in equity, equity derivatives, debt and
currency derivatives segments. It is the first exchange in India to introduce electronic trading
facility thus connecting together the investor base of the entire country. NSE has 2500
VSATs and 3000 leased lines spread over more than 2000 cities across India.

The exchange was incorporated in 1992 as a tax-paying company and was recognized as a
stock exchange in 1993 under the Securities Contracts (Regulation) Act, 1956, when P. V.
Narasimha Rao was the Prime Minister of India and Manmohan Singh was the Finance
Minister. NSE commenced operations in the Wholesale Debt Market (WDM) segment in
June 1994. The capital market (equities) segment of the NSE commenced operations in
November 1994, while operations in the derivatives segment commenced in June 2000.

Unlike countries like the United States where nearly 70% of the GDP is derived from larger
companies and the corporate sector, the corporate sector in India accounts for only 12-14% of
the national GDP (as of October 2016). Of these only 7,800 companies are listed of which
only 4000 trade on the stock exchanges at BSE and NSE. Hence the stocks trading at the BSE
and NSE account for only around 4% of the Indian economy, which derives most of its
income related activity from the so-called unorganized sector and households.

2.2.1 Technology

NSE’s trading systems, is a state of-the-art application. It has an up time record of 99.99%
and processes more than 450 million messages every day with sub millisecond response time.

NSE has taken huge strides in technology in these 20 years. In 1994, when trading started,
NSE technology was handling 2 orders a second. This increased to 60 orders a second in
2001. Today NSE can handle 1, 60,000 orders/messages per second, with infinite ability to
scale up at short notice on demand, NSE has continuously worked towards ensuring that the
settlement cycle comes down. Settlements have always been handled smoothly. The
settlement cycle has been reduced from T+3 to T+2/T+1.
2.3 What are the Sensex and the Nifty?

The Sensex is an "index". What is an index? An index is basically an indicator. It gives you a
general idea about whether most of the stocks have gone up or most of the stocks have gone
down.

• The Sensex is an indicator of all the major companies of the BSE.

• The Nifty is an indicator of all the major companies of the NSE.

If the Sensex goes up, it means that the prices of the stocks of most of the major companies
on the BSE have gone up. If the Sensex goes down, this tells you that the stock price of most
of the major stocks on the BSE have gone down.

Just like the Sensex represents the top stocks of the BSE, the Nifty represents the top stocks
of the NSE.

Just in case you are confused, the BSE is the Bombay Stock Exchange and the NSE is the
National Stock Exchange. The BSE is situated at Bombay and the NSE is situated at Delhi.
These are the major stock exchanges in the country. There are other stock exchanges like the
Calcutta Stock Exchange etc. but they are not as popular as the BSE and the NSE. Most of
the stock trading in the country is done though the BSE & the NSE.

Besides Sensex and the Nifty there are many other indexes. There is an index that gives you
an idea about whether the mid-cap stocks go up and down. This is called the “BSE Mid-cap
Index”. There are many other types of indexes.

There is an index for the metal stocks. There is an index for the FMCG stocks. There is an
index for the automobile stocks.
 CHAPTER III

COMPANY PROFILE
3.1 COMPANY PROFILE

INTRODUCTION OF KALPATARU MULTIPLIER LTD

Kalpataru is a wishful Devine tree and in present context a widely trusted, time and
transparent share broker, investment advisor and D.P of this region.

Kalpataru offers a complete solution to all your investment problems, needs and requirements
since 1992.

Kalpataru is a spectrum of vision, vibgyor, style, standard, creativity, craze and honesty. All
the seven colours of share business can be felt and enjoyed in kalpataru. Their field of
operation is share trading, commodity, Derivative (F&O) trading, currency, IPO, Demat,
Mutual fund and Pan Card Services.

The tag line of Kalpataru Multiplier Ltd is “whenever and where ever you need, you will find
kalpataru at your door step to help you trade and transact with any stock exchange in India or
abroad”.
3.2 REWARDS AND ACHIEVEMENTS

Since Kalpataru is adding more weight and value to Kalpataru broking business and advisory
consultation, Success appreciation, recognition are bound to follow in the key to
competiveness and success ultimately. Kalpataru follow in words & spirit.

Kalpataru reaped a bumper Crop of Awards, some important and uncommon awards and
achievements are:

A. 11th position in India on the basis of commission earned in IPO business.

B. Rajiv Gandhi Award on “MAIN HOON DON” Award had given by none other than
AMITHABH BACHCHAN the Millennium Star and Brand Ambassador of ICICI.
3.3 MISSION, VISION AND OBJECTIVE OF THE KALPATARU MULTIPLIER
LTD

1. MISSION: - To exceeding expectation of our client be our partners, on all service

parameters.

2. VISION : - To provide you a variety of conveniences and bring to you top Quality
Personalized Services and satisfaction in share Trading

3. OBJECTIVE: - Kalpataru aim at exceeding expectation of our client, who happen to

be our patrons, on all service parameters, with this objective in mind; they provide
you a variety of conveniences and bring to you Top Quality Personalized Service and
Satisfaction in Share Trading.
3.4 CLEARING MEMBERS OF KALPATARU MULTIPLIER LTD

Bombay Stock Exchange Ltd. (BSE) SEBI Reg. No. INB011115236MEMBER

ID : 3016

National Stock Exchange Ltd. (NSE) SEBI Reg. No. INB-

231115230MEMBER ID : 11152

MCX Stock Exchange Ltd. (MCX-SX) SEBI Reg. No. INE -

261115230MEMBER ID : 53100

Multi Commodity Exchange (MCX) FMC Reg. No.

MCX/TCM/PROP/0834FMC Reg. No. MCX/TCM/PROP/0834

National Commodities Exchange of India (NCDEX) FMC Reg. No.

NCDEX/TCM/PROP/0896MEMBER ID : 00921

Depository Participant (DP) of CDSL

3.5 ORGANIZATIONAL STRUCTURE;

Management team of Kalpataru Multiplier Ltd;

Founder & Chairman: - Mr. Ramesh Chandra Manya Jain

Vice-Chairman :- Mr. Aditya Manya Jain

Managing Director : - Mr. Amitabh Manya Jain

Team Work at GTB Complex, TT Nagar New Market Branch;

Director : - Mr. Lalit Manya Jain

Branch Head : - Mr. Anupam Tamarkar

Training Executive : - Ms. Swati Tiwari

PAN Card Executive : - Ms. Renu Dhakad

Demat Executive : - Ms. Pradeep Yadav

Share Dealer : - Mr. Kavi Bhushan

: - Ms. Rukmani Singh

 CHAPTER IV

DEPARTMENTS OF KALPATARU
MULTIPLIER LTD
4.1 MARKETING PROCESS OF KALPATARU MULTIPLIER LTD;

A business partners gets marketing and branding support in a very organized and professional
manner. Kalpataru run well planned publicity campaigns for brand building and sales
promotion with their business partners on regular intervals or as and when required.

Kalpataru Multiplier Ltd. extends utmost aid and support to all the business partners in terms
of national promotion campaigns, operations etc. Apart from this, senior level executives
regularly visit the branches to ensure that business runs smoothly and also supervise the
legislative compliance. If any of their branches is not able to fully exploit full potential, they
exert and manage real level resources to evaluate the situation and execute corrective
procedures for business development.

Kalpataru makes a healthy relationship with their customers through providing various
product and services and timely inform their customers about the market ups and down and
also help customers to invest in mutual funds and other investments in stock market.
4.2 HUMAN RESOURCE MANAGEMENT IN KALPATARU

During my internship period I observed that Kalpataru Multiplier Ltd is having a friendlily
and motivational working environment in the organisation. They treat their workers as an
important part of the organization for motivating or appreciate their workers they time to time
offer incentives and promotions to the efficient workers through which they get motivated
towards their work.

All new entrants in the organisation undergo an Extensive Employee Orientation Programme
- PARICHAY. The objective is to explain the employees their vision, values and culture to
help them to understand and absorb their business and processes.

Learning environment that Kalpataru provides to their employees

• The prime role that HR strives to play at Kalpataru is of being the facilitator of
learning. Some new initiatives taken or in the process of being introduced in this
direction are:

• Introduction of online learning and coaching modules.

• Tie-ups with Management and Technical Institutes for learning while they earn to
upgrade the qualification levels.

• Sharing of unique experiences and company specific knowledge gathered through the
HR portal.

• Passing on of "Good Construction Practices" from senior experts to relatively newer

and junior employees through interactive sessions.

• Leadership development programs and behaviour and functional training.

 CHAPTER V

PRODUCTS AND SERVICES

5.1 PRODUCT AND SERVICES OFFERED BY KALPATARU MULTIPLIER
LTD;

5.1.1 SHARE TRADING:- Kalpataru provide share trading process to their

customers in which in which the customers can buy and sell their shares in the
stock market they only have to visit the nearest branch of Kalpataru branch
and open their demat account in the company and trade shares with the help of
Kalpataru.

5.1.2 INTERNET TRADING: - Internet Trading Kalpataru provides the free

facility to trade through internet. Customer need not to come the office,
terminal or work station at all. Customer can transact online with KML on
BSE, NSE, MCX, NCDEX, and MCX-SX and even settle their DP Account,
DP holding, and portfolio. A person can do it from their office and at home.

5.1.3 DERIVATIVE (F&O) TRADING: - Kalpataru also provides a facility to

trade in derivative market.

5.1.4 DP SERVICES: - through kalpataru a person can open there demat account
and trading account to invest into stock market.

5.1.5 SMS FACILITY: - SMS Service every morning 7:00 AM to 3:30 PM the
person get information, tips, probabilities of market trend, buy and sell
recommendation on your mobile for share, commodity, DP, IPO, trade
confirmation and others.

5.1.6 NEW PUBLIC ISSUE: - IPO (initial public offering) Kalpataru Multiplier
Ltd timely update to their customers about new IPO launch in the share
market.

5.1.7 MUTUAL FUND: - A mutual fund is a professionally-managed investment

scheme, usually run by an asset management company that brings together a
group of people and invests their money in stocks, bonds and other securities.
Kalpataru provides a platform to their customers to invest into mutual funds
Kalpataru has a bond with some banking institute for mutual funds
investments (HDFC, UTI, Reliance and ICICI).
 5.1.8 INVESTMENT ADVISORY SERVICES: - Kalpataru is prominent
financial and Investment advisor of this region. They provide readymade and
tailor made investment advice that which suits to the customers need.

5.1.9 PAN-CARD SERVICESS:- UTI has selected kalpataru after many avid test,
Goodwill, Turnover, Fair Practice and Capacity to handle the most critical
identification card of national value.

5.2 THE OPTIONS AVAILABLE TO A CUSTOMER WHILE

TRADING IN KALPATARU MULTIPLIER LTD:

5.2.1 A product for every need: A kalpataru multiplier ltd is the most
comprehensive website, which allows investors to invest in shares, mutual
funds, derivatives (Future and Option) and other financial products. simply
put, they offer products for every investment need.

5.2.2 Trading in shares: A Kalpataru Multiplier ltd offers various options while
trading in shares.

5.2.3 Cash trading: This is a delivery based system, which is generally done
with the information of taking delivery of shares.

5.2.4 Margin Trading: A person can also do an intra-settlement trading up to 3 to 4

times of their available funds, when they take long buy/short sell position in
stocks with in the intention of squaring off the position within the same day
settlement cycle.

In margin trading, you take buy/sell position in stocks with the intention of
acquiring off the position within the same settlement cycle. If during the course of
the settlement cycle, the price moves in your favour (rises in case you have a buy
position or falls in case you have a sell position), you make profit. In case you
have the option to take/give delivery of buy/sell position respectively if you have
sufficient cash/securities to do so. Normally to buy shares, you have to place
(ensure availability of limit) 100% of the order value, while to sell shares, you
need to have shares in your Demat account. However, margins are blocked only to
safeguard any adverse price movement.
5.2.5 Margin PLUS Trading: Through Margin PLUS you can do an intra-
settlement trading up to ten times your available funds, where in you take long
buy/sell position in stock with the intention of squaring off the position within the
same day’s settlement cycle. Margin PLUS will give a much higher leverage in
your limits.

Margin PLUS is an order placement feature where you can take a position at
market price and also place a cover order for the position specifying the LTP and
the limit price. This will minimize the loss cover at the time of taking the position
itself. There by it gives a clear view of maximum downside involved in a
particular position at a particular price, Kalpataru multiplier ltd won’t levy a
normal margin ranging from 21% to 50%. It would block The maximum loss
which customer can suffer.

5.2.6 Spot Trading: This facility can be used only for selling you in demating stocks
which already exist in your Demat account. When you are looking at an
immediate liquidity option, ‘cash on spot’ may work the best for you, on selling
shares through “cash on spot”, money is certified to your bank a/c the same
evening & not on the exchange payout date.

5.2.7 BTST: Buy today sell tomorrow (BTST) is a facility that allows you sell shares
even on 1st and 2nd day after the buying order date, without you having to Waite
for the receipt of shares into your Demat account.

5.2.8 Call N Trade: Call N Trade allows you call on a local number in your city &
trade on the telephone through our customer services executive.Trading in
NSE/BSE: through Kalpataru Multiplier ltd you can trade on NSE and BSE.

5.2.9 Market order: This is an order to buy sell securities at the best price
obtainable in the market at the time it is matched by the exchange. Therefore,
change of its getting executed are better. In case of market order for NSE, all
market order placed which are not executed fully; it becomes a limit order for the
balance quantity at the last traded price.

5.2.10 Market Order in BSE: Market order can be placed only during markethours
(i.e., when the Exchanges is open for trading).You could trade by placing market
 orders during market hours that allows you to trade at the best obtainable price in
the market at the time of execution of the order.

5.2.11 Limit Order: Limit Order is an order to buy or sell securities in which you
specify the maximum price per unit in case of a buy order and the minimum price
per unit in case of sell order. The actual transaction can be at a price more
favourable than the price specified.

This will allow you to place a buy/sell order at a price defined by you. The
execution can happen at a price more favourable than the price, which is defined
by you, limit orders can be placed by you during holidays & non market hours
too.

5.2.12 Online confirmation of order and trade: You get online confirmation of
orders and trades- the status of any order is updated on real-time basis in the Order
Book. As soon as you place your order they are validated by the system and sent
to the exchange for execution. The entire process is fully automation and there are
no manual interventions.

5.2.13 GTC, GTD and IOC Order: A Good Till cancelled (GTC) order remains
in the system until the trading members cancels it. However, the system cancels
this order if it is not trade within a number of days parameterized by the
Exchanges. A Good Till Days/Date (GTD) order allows the user to specify the
number of days/date till which the order should stay in the system if not executed.
The maximum number of days for which the GTC/GTD order can remain in the
system is notified by the exchange from time to time after which the day/date on
which the order is placed and inclusive of holidays. An immediate or cancel (IOC)
order allows the user to buy or sell a security as soon as the order is released into
the system, falling which the order is cancelled from the system. Partial match is
possible for the order and the unmatched portion of the order is cancelled
immediately.

5.2.14 Disclose Quantity (DQ) Order: Normally, the order quantity is disclosed
in full to the market. An order with a disclosed quantity (DQ) condition/attribute
allows the trading members to disclose only a part of the order quantity to the
 market. For example, an order of 1000 with a disclosed quantity condition of 200
will mean that 200 are displaced to the market at a time. After this traded, another
200 is automatically released soon till the full order is executed. DQ (Disclosed
Quantity) should not be less that 10% of the order quantity and at the same time
should not be greater than or equal to the order quantity.

5.2.15 Stop Loss Order: A stop loss order allows the client to place an order which
gets activated only when the market price of the relevant securities reached or
crosses a threshold price specified by the investors in the form of ‘stock loss
trigger price’. When a stop loss trigger price (SLTP) is specified in a limit order,
the order becomes one which is conditional on the market price of the stock
crossing the specified SLTP. The order remains passive (i.e. not eligible for
execution) till the condition is satisfied. Once the last traded price of the stock
reached or surpasses the SLTP, the order becomes activated and then on behaves
like a normal limit order. It is used as a tool to limit the maximum loss on a
position.

5.2.16 Trade in derivatives:

a. Future: Through kalpataru multiplier ltd you can now trade in index and
stock futures on the NSE in future trading, you take buy/sell position in index
or stock contract having a longer contract period of up to 3 month. Trading in
FUTURE is simple if, during the course of the contract life, the price moves in
favour (i.e. rises in case you have a bye position or sell in case you have a sell
position), you make a perfect. Presently only selected stock, which meet the
certain liquidity and volume, have been enabled for future trading. Calculate
index and now your margin are tools to help you in calculating your margin
requirement and also the index & stock price movement.

b. Option: An option is a contract, which gives buyer the right to buy or sell
shares at a specific prices, on a before a specific date. For this, the buyer has to
pay to the seller some money, which is called premium. There is now
 obligation on the buyer to complete the transaction if the price is not
favourable to him. To take the buy/sell position on index/stock option, you
have to place certain % of order value as margin. With option trading, you can
leverage on your trading limit buy taken buy/sell position much more that
what you could have taken in cash segment. The buyer of a call option has the
right but not the obligation to purchase the underlying asset at the specified
strike price buy paying a premium whereas the seller of the call has the
obligation of selling the underlying asset at the specified strike price. The
buyer of a put option as the right but not the obligation to sell the underlying
asset at the specified strike price paying a premium whereas the seller of the
put has the obligation of buying the underlying the asset at the specified price.
Buy paying lesser amount of premium, you can create position order option
and take advantage of more trading opportunities.

c. Switch: To suit your changing needs you may wish to shift monies between
different schemes. You can switch your monies online form one schemes to
another in the some fund family without any Hassel.

d. IPOS and BONDS Online: You can also invest in initial public offers
(IPO’s) and bonds online without going through the hassles of filling any
application form/paperwork. Get –in-depth analysis for new IPO’s issue
(initial public offering) which are about to hit the market and analysis on
these. IPO calendar, recent IPO listing, prospectus/offer document, and IPO
analysis are few of the features, which help you, keep. You can also invest in
initial public offers (IPO’s) and bonds online without going through the
hassles of filling any application form/paperwork. Get –in-depth analysis for
new IPO’s issue (initial public offering) which are about to hit the market and
analysis on these. IPOs calendar, recent IPO listing, keep on talk of the IPO
markets.
5.3 TRADING PROCESS IN STOCK EXCHANGE;

The buying and selling of securities was done on trading floor of stock exchange it is
executed through computer. Trading of securities can be executed through the platform of
(NSE or BSE) national stock exchange or Bombay stock exchange they are the index of
securities. Firstly a person has to open there demat account with any of the recognised stock
broking company and from their onwards they can start investing in stock market.

5.3.1 The trading procedure involves the following steps:

1. Selection of a broker:

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

2. Opening Demat Account with Depository:

Demat (Dematerialized) account refer to an account which an Indian citizen must open with
the depository participant (banks or stock brokers) to trade in listed securities in electronic
form. Second step in trading procedure is to open a Demat account.

The securities are held in the electronic form by a depository. Depository is an institution or
an organization which holds securities (e.g. Shares, Debentures, Bonds, Mutual (Funds, etc.)
At present in India there are two depositories: NSDL (National Securities Depository Ltd.)
and CDSL (Central Depository Services Ltd.) Kalpataru has a tie-up with CDSL (central
depository services Ltd) There is no direct contact between depository and investor.
Depository interacts with investors through depository participants only. Depository
participant will maintain securities account balances of investor and intimate investor about
the status of their holdings from time to time.

3. Placing the Order:

After opening the Demat Account, the investor can place the order. The order can be placed
to the broker either (DP) personally or through phone, email, etc. Investor must place the
order very clearly specifying the range of price at which securities can be bought or sold. e.g.
“Buy 100 equity shares of Reliance for not more than Rs 500 per share.”
4. Executing the Order:

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

5. Settlement:

This means actual transfer of securities. This is the last stage in the trading of securities done
by the broker on behalf of their clients. There can be two types of settlement.

(a) On the spot settlement:

It means settlement is done immediately and on spot settlement follows. T+2 rolling
settlement. This means any trade taking place on Monday gets settled by Wednesday.

(b) Forward settlement:

It means settlement will take place on some future date. It can be T + 5 or T + 7, etc. All
trading in stock exchanges takes place between 9.55 am and 3.30 pm. Monday to Friday
 5.4 ONLINE TRADING PROCESS AT KALPATARU MULTIPLIER
LTD

Firstly we have to understand that if we want to do online trading with Kalpataru Multiplier
ltd then the first step is to open a demat account with the Kalpataru or any of the reorganise
bank. A person cannot start traded securities without opening a demat account demat account
is similar as bank account in which the shares are keep safely there is no need to hold or carry
share certificate.

5.4.1 How to open a trading account with Kalpataru?

To start trading with Kalpataru Multiplier Ltd. we need to open a trading account and a
depository (or Demat shares) account with Kalpataru Multiplier Ltd. All receipts and
payments for buying and selling of shares and all commissions and charges will be posted to
the trading account. Shares which we buy and sell through the trading account will be
received in or delivered from our demat account.

5.4.2 Demat account:- the account that holds all our shares in electronic or
dematerialized form. Like the bank account, a demat account holds the certificates of our
financial instruments like shares, bonds, government securities, mutual funds and exchange
traded funds (ETFs). We cannot trade in the stock market without a demat account.

5.4.3 How to open a demat account with Kalpataru Multiplier Ltd?

CDSL/NSDL DP Fill account Submit Person Account no

opening form documents verification ID provided

• Fill up an account opening form and submit along with copies of the required documents and
a passport-sized photograph. We also need to have a PAN card. Also carry the original
documents for verification.
• They will provide a copy of the rules and regulations, the terms of the agreement and the
charges that will incur.

• During the process, an In-Person Verification would be carried out. A member of the DP’s
staff would contact us to check the details provided in the account opening form.

• Once the application is processed, the DP will provide an account number or client ID. No
the person can use the details to access their demat account online.

• As a demat account holder, the person need to pay some fees like the annual maintenance fee
levied for maintenance of account and the transaction fee - levied for debiting securities to
and from the account on a monthly basis. These fees differ from every service provider
(called a Depository Participant or DP). The fee also differs based on the kind of transaction
(buying or selling). In addition to the other fees, the DP also charges a fee for converting the
shares from the physical to the electronic form or vice-versa.

Minimum shares: A demat account can be opened with no balance of shares. It also does not
require that a minimum balance be maintained.

After opening a demat account now we can start online trading of shares

5.4.4 Online trading software of Kalpataru Multiplier Ltd.

Kalpataru is currently using BOLT PLUS software for online trading of share, with the help
of this software they work efficiently and transparently in the market, it increases their
efficiency and reduces fault error while performing online trading, and the software helps
them to keep track records of their customers. BOLT PLUS software provides all the
information about the securities their ups and down and through this software company help
their customers to invest in the profitable securities.

5.4.5 What is BOLT PLUS software?

The BSE provides an efficient and transparent market for trading in debt instruments, equity
and derivatives. This is performed through a system known as BOLT - BSE's Online Trading
System.

In the stock exchange, a key index is used to keep track of the important or the most traded
stocks in the exchange. The indices used at the BSE while trading is the SENSEX and is
displayed in all major portals, newspapers and magazines. It is India's first stock market
index that enjoys an iconic stature and is tracked worldwide. It is conducted on a free-float
methodology and is sensitive to market sentiments and realities.

There are also indices such as BSE small cap, BSE mid cap and BSE500 to take care of
medium and small companies. The BSE offers 22 indices to suit a multiplicity of needs,
inclusive of 12 sectorial indices. For example, the BSE PSU Index tracks the performance of
the listed PSY companies and also helps the Central Government to monitor its wealth on the
bourses.

5.4.6 How the securities are traded in BOLT PLUS software in Kalpataru
Multiplier LTD.

BOLT software contain the index of BSE it means it shows only those company which are
listed in BSE (Bombay Stock Exchange), in my training period I observed that the traders
(agents) of Kalpataru on getting the instructions from their costumers for buying or selling
the securities they quickly put the order in the software and execute the transaction. The
traders of the company are well trained for executing the quick transaction on the server.

I had taken some screen shot that how can we put sell or buy option on the server.
This is how the server looks like it contains the BSE index all the securities of BSE
This picture shows that how the buying order takes place on selecting buying order the blue
colour screen appears on the computer screen and then you put the company name which
company equity shares you want to buy and then order quantity and price on which you want
to buy a share.
This picture shows how the selling of equity share are being executed on selecting the selling
option the red colour screen appear on your computer screen here you can enter the company
name which company shares you want to sell and the selling quantity and the price on which
you want to sell your equity shares.
 CHAPTER VI

LEARNING AND OUTCOMES

6.1 LEARNING AND OUTCOMES

During my internship period I understood that there is no shortcut for success in stock
market. Just like any other skills, a new investor can learn stock trading with trial and error
together with patience, discipline, research and a sound understanding of the market, among
others.
Investing in stock market is risky; the volatility in stock market can confuse even the smartest
investor. However, there are some basic principles of investing which, if followed practically,
may increase the chances of success in the market.
I observed that there are certain loopholes in investor’s behaviour resulting in mistakes
committed by them in choosing investment options thereby leading to loss making
preposition.
There are some points which tell us that what precautions we should take while investing in
stock market:

6.1.1 Don't follow other investors blindly

Don't blindly imitate investment decisions of other investors who may have profited
from their investment decisions. It is seen that most of the new investors easily get
influenced by the decisions of their acquaintances, neighbours or relatives. This
strategy can backfire in long run. Remember, even world's greatest investor Warren
Buffett was once said that he made a huge mistake by investing in a particular retail
major.

6.1.2 Do your research

Do proper research on the stock you are planning to buy or sell. Do go with the name
of the company or the industry they belong to. After all, it's you hard earned money
and you would not want it to go waste. Knowing all the details of your stock doesn't
guarantee a success but at least it can help you make better and more well-informed
decision.

6.1.3 Don't invest in what you don't understand

 The first question you should ask is what the company does? Do you understand it
business? Warren Buffett once said that he doesn't invest in what he doesn't
understand. If the investment genius is himself acknowledging that he doesn't
understand all companies, we should all probably take heed.

6.1.4 Discipline in investment is the key

The Share market is subject to volatility. The key to sustain in this volatile market is
to buy right stock at right time and hold on it patiently for outstanding results. Warren
Buffett also suggests that to right way to invest is to "buy good businesses at a fair
price with the intention of holding them forever."

6.1.5 Investors should Control their emotions - greed or fear

One of the main reasons to lose money in stock markets is investor's inability to
control their emotions, particularly fear and greed. The stories of big returns being
made in a short period of time is what makes one greedy. A greedy investor may
invest in unknown companies or business without understanding the risks involved
and would lose their money in case the market reverses. Same way, investors panic
and sell their shares at low prices when market falls. So, it better to take informed
investment decision instead of thinking emotionally.

6.1.6 Diversify your portfolio

Investing across different asset classes and instruments is the key to earning steady
returns on investments with minimum risk. Diversification of portfolio won't ensure
gains or guarantee against losses but once you choose to target a level of risk based on
your goals, time horizon, and tolerance for volatility, diversification may provide the
potential to improve returns for that level of risk.

6.1.7 Set realistic expectations

Every investor hopes best return from their investment and there is nothing wrong in
it. However, unrealistic expectations can leave your finances in a mess. Return
 expectations depend on the investment portfolio. As a general rule, the higher the risk,
the higher is the expected return.

6.2 Recommendation:
a) The new and different offers should be communicated to the large value of potential
inventors so that the offers can hit the target.
b) The companies should reveal all the information regarding any scheme so that
investors can feel free to invest.
c) It is very important for distributors to make the customers aware about all the risks
involved and he could not blame for any loss to the company.
d) There are many misconceptions in the mind of common people that Mutual funds,
online share trading etc. are only for ‘big ones’ & they can’t enter in this field and if
they will enter they will suffer losses so, by giving example of active investors
various misconceptions should be removed.
e) It is very necessary for the employees to give an effective demo to the client about the
use of various services of share broking etc. many times they fail to make the offer
understandable to the client, this is the drawback to be overcome.
f) Some offers for women should be introduced to get a new share of market.
6.2 CONCLUSION

The expectations of the customers are regularly increasing because of the increasing
competition and emergence of global market. In such conditions it becomes very necessary
for a company to fulfil all the expectations of the customers and give them a delightful
experience.
A kalpataru multiplier ltd aims to provide better services by consistently improvement. The
study concluded: -Kalpataru Multiplier Ltd. has better portfolio management services than
other company Kalpataru Multiplier Ltd keeps its process more transparent. Kalpataru
multiplier Ltd charges are less than other stock brokers. Kalpataru Multiplier ltd are
providing daily updates about the stocks information. Investors are looking for those
investment options where they get maximum returns with less costs. Market is becoming
complex & it means that the individual investor will not have the time to play stock game on
his own. People are less aware about the services provided by Kalpataru Multiplier ltd.
Chapter VII
Bibliography
BIBLIOGRAPHY

1. www.investorvpedia.com
2. www.kalpatarumulti.com
3. www.wikipeda.com