Final Final Project Amey

Development Credit Bank Ltd.
Project Report On
Revival And Relaunch of Smart Trade Online

Trading Platform
UNDER THE GUIDANCE OF

Mr.Pankaj Sood
Vice President Head-Retail Liabilities
Development Credit Bank
SUBMITTED BY
Amey Bhonslay
PGDM-Finance
ACADEMIC YEAR 2009-11
N.L.DALMIA INSTITUTE OF
MANAGEMENT STUDIES AND RESEARCH
MIRA ROAD (EAST), MUMBAI-401104
Revival and Renewal of Smart Trade Online Trading Platform 1

Acknowledgement
I take this opportunity to express my deep and sincere gratitude to Mr. Pankaj Sood,
Vice President-Retail Liabilities Product DCB for his valuable inspiration and encouragement
in implementing this project. It is because of his support that I could synchronize the efforts in
converting the manifold features of the project.
I would also like to thank Mr. Pradeep Kumar for his constant support and guidance
throughout the making of the project.
I would also like to extend my gratitude to Development Credit Bank Ltd. for assigning
this Project as a Summer Intern.
It helped me to understand the Retail Banking and the Online Trading Industry.
Moreover to understand the DCB’s Online Trading platform (DCB Smart Trade) on a whole
and various features and benefits attach to it.
Date: 29th June 2010

Letter of Transmittal
Dear Sir,
As per your directions, I have completed research on the “Revival And Relaunch of Smart
Trade Online Trading Platform”. The report is based on the careful study and comparison of
the various Online trading platforms and Demat services provided in the industry. The project
was carried from 28th April 2010 to 30th June 2010.The complete methodology and
conclusions derived on the basis of the comparison is described in the report. I believe you
will find the results mentioned in the report to be interesting and certainly useful.
Sincerely,
Amey Bhonslay
NLDIMSR

Executive Summary
The report gives a brief analysis of the financial services sector of India. It, especially, gives
in-depth analysis of the financial services called demat and online trading facility provided by
DCB along with various financial organizations in India. These include both types of online
trading companies one is the banking online trading companies which are banks having their
own DP and Online platform and the other is non-banking trading organizations providing
these services.
The report starts with giving a brief introduction about the various financial services provided
by various types of financial organizations in India. It also gives some important statistics
about the financial services sector of India, present status in India and reasons for the growth
prospects of the financial services sector in India. The report gives brief introduction about the
requisition for opening both demat and online trading accounts. It also gives information about
the dematerialization, its need, process, benefits and parties involved. It also gives
information about the online securities trading process in India and also about their benefits.
An important mention of the dematerialization parties like depository and the depository
participant is also made. It also gives information about the online stock trading and
settlement of shares done in India.
The report gives an In-depth insight into the various online trading platforms and depository
services provided by DCB’s competitors in the industry on the basis of the Cost Structure,
Current Product Proposition and the Various features and additional services provided by
them vis-à-vis DCB. From the point of view of finance student, the report gives information
about the working of Online trading industry, the different participants of the online trading
industry, how it is being regulated and how online trading is importance and beneficial to retail
customers at large.
Finally, the report gives the list of findings that differentiates DCB’s Smart Trade with Online
trading and DP services provided by its competitors. At the end there are some suggestions
and recommendations made that can be taken into consideration by DCB to make the
relaunch of Smart Trade a success.

Project Justification:
The project undertaken mainly to help DCB revive its Online trading business which will help
them to provide their existing customers with additional services along with other Core
Banking Solutions and to attract new prospects so as to help provide all financial services
under one roof and become the best neighborhood bank in the regions they are operating.
It also helped me to get an overview of growth and development of online trading in India
since its inception in the year 2000. Due to subprime mortgage crisis in year 2008 NASDAQ
and S&P 500, two major stock exchange of the world entered into the bearish market. it also
affected the stock market all over the world including India. Now with investors confidence
slowly returning in capital markets, it is the challenge for firms providing Broking and DP
services to improve on their margins. The project helped me to analyze various firms
providing broking services and help DCB to restructure their online trading business. As per
the title suggest the project report has been prepared with a view to help Development Credit
Bank (DCB) in revival and relaunch of its Online Trading Platform.

Table of Contents
Sr. Particulars Pg. No.

No.
1 Introduction to Stock Market 7
2 Online Stock Trading 11
3 Demat Account 16
4 Depository & Depository Participant (DP) 17

5 About Development Credit Bank 22
6 DCB-A Historical Perspective 23
7 Online Trading Platforms 25
I. HSBC InvestDirect 25
II. ShareKhan 29
III. Geojit BNP Paribas 32
IV. Axis Bank – Online Trading 35
V. Motilal Oswal 36
VI. SBI Online Trading 39
VII. Religare Securities 40
VIII. SMC Securities 42
8 Comparative Analysis 48
9 DCB Smart Trade 65
10 Recommendations & Conclusion 69
11 Bibliography 72

Introduction To Stock Markets and Emergence of Online Trading in India
The emergence of stock market can be traced back to 1830. In Bombay, business passed in
the shares of banks like the commercial bank, the chartered mercantile bank, the chartered
bank, the oriental bank and the old bank of Bombay and shares of cotton presses. In
Calcutta, Englishman reported the quotations of 4%, 5%, and 6% loans of East India
Company as well as the shares of the bank of Bengal in 1836. This list was a further
broadened in 1839 when the Calcutta newspaper printed the quotations of banks like union
bank and Agra bank. It also quoted the prices of business ventures like the Bengal bonded
warehouse, the Docking Company and the storm tug company.
Between 1840 and 1850, only half a dozen brokers existed for the limited business. But
during the share mania of 1860-65, the number of brokers increased considerably. By 1860,
the number of brokers was about 60 and during the exciting period of the American Civil war,
their number increased to about 200 to 250. The end of American Civil war brought
disillusionment and many failures and the brokers decreased in number and prosperity. It was
in those troublesome times between 1868 and 1875 that brokers organized an informal
association and finally as recited in the Indenture constituting the “Articles of Association of
the Exchange”. On or about 9th day of July, 1875, a few native brokers doing brokerage
business in shares and stocks resolved upon forming in Bombay an association for protecting
the character, status and interest of native share and stock brokers and providing a hall or
building for the use of the members of such association.
As a meeting held in the broker’ Hall on the 5th day of February, 1887, it was resolved to
execute a formal deal of association and to constitute the first managing committee and to
appoint the first trustees. Accordingly, the Articles of Association of the Exchange and the
Stock Exchange was formally established in Bombay on 3rd day of December, 1887. The
Association is now known as “The Stock Exchange”.
The entrance fee for new member was Re.1 and there were 318 members on the list, when
the exchange was constituted. The numbers of members increased to 333 in 1896, 362 in

1916and 478 in 1920 and the entrance fee was raised to Rs.5 in 1877, Rs.1000 in 1896,
Rs.2500 in 1916 and Rs. 48,000 in 1920. At present there are 23 recognized stock exchanges
with about 6000 stock brokers. Organization structure of stock exchange varies.
14 stock exchanges are organized as public limited companies, 6 as companies limited by

guarantee and 3 are non-profit voluntary organization. Of the total of 23, only 9 stock
exchanges have been permanent recognition. Others have to seek recognition on annual
basis. These exchange do not work of its own, rather, these are run by some persons and
with the help of some persons and institution. All these are down as functionaries on stock
exchange. These are
1.) Stockbrokers
Stock brokers are the members of stock exchanges. These are the persons who buy, sell or
deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI
can impose certain conditions while granting certificate of registrations. It is obligatory for the
person to abide by the rules, regulations and the bylaw. Stock brokers are commission broker,
floor broker, arbitrageur etc.
2.) Sub-broker
A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He
assists the investors in buying, selling or dealing in securities through stockbroker. The broker
and sub-broker should enter into an agreement in which obligations of both should be
specified. Sub-broker must be registered SEBI for a dealing in securities. For getting
registered with SEBI, he must fulfill certain rules and regulation.
3.) Market Makers
Market maker is a designated specialist in the specified securities. They make both bid and
offer at the same time. A market maker has to abide by bye-laws, rules regulations of the
concerned stock exchange. He is exempt from the margin requirements. As per the listing
requirements, a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5
crore and having a commercial operation for less than 2 years should appoint a market maker
at the time of issue of securities.

4.) Portfolio consultants

A combination of securities such as stocks, bonds and money market instruments is
collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or
companies who advise, direct or undertake the management or administration of securities or
funds on behalf of their clients.
As the complexities and the Volume and Value of trade increased a need was felt to automate
the entire process of stock market trading. This led to emergence of online exchanges,
NASDAQ being the first completely online automated exchange to start operation in 1971.
The emergence of online exchanges has facilitated faster transactions by providing online
trading portals and brokerage houses ease and flexibility. The Internet has indeed opened up
new opportunities for conducting the business. The worldwide stock exchanges has made a
major shift from the traditional method of trading and now conduct a bulk of its business
online through its brokers and partners.
In the developed countries majorly all the exchange transactions are conducted online. The
trend took off slowly in India and the National Stock Exchange (NSE) and the Bombay Stock
Exchange (BSE) two of the largest exchanges in India have been conducting online trade
successfully for some time. The Indian exchanges and brokering houses have been very slow
in moving their transactions online and the major reason has been the lot government
regulations. The initial delay was due to laying down the specifications for creating Closed
User Groups (CUGs). This issue was resolved between the Department of
Telecommunications (DoT) and the Finance Ministry around 1998.
The NSE and BSE are among the largest exchanges in the country handling very large daily
trading volumes, support large amounts of data traffic, and have a very large nationwide
network. The trading volume in year 2000 was huge with the average daily turnover in the
capital markets segment at NSE is around Rs 2300 crore and in the derivatives segment,
around Rs 1300 crore. The average daily traffic volume was around one million trades per day
in the capital markets segment and around 50,000 trades per day in the derivatives segment
and there were around 13,000 registered users in both segments and an average of around
9500 users is logged in at a time. At BSE the average daily turnover in 2001-2002 (April-
March) was Rs 1244.10 crore and the number of average daily trades was Rs 5.17 lakh. The
Average daily turnover in the cash markets alone on BSE and NSE together stood at Rs
22,038 crores in 2009 and the Average daily F&O turnover at the NSE was 2,104,045
contracts in 2009.
Today the central computer located at the Exchange is connected to the workstations of the
Brokers through satellite using Very Small Aperture Terminals (VSATs). Orders placed at the
Brokers' workstations reach the central computer and are matched by the computer based on
price and time priority. Both the exchanges have switched over from the open outcry trading
system to a fully automated computerized mode of trading known as BOLT (BSE On Line
Trading) and NEAT (National Exchange Automated Trading) System. It facilitates more
efficient processing, automatic order matching, faster execution of trades and transparency.
Any online exchange should always be-on, safe, secure, redundant and should have
adequate backup & recovery processes. The Vice President of NSE-IT G.M Shenoy tells that
the basic design objective of NSE was to provide fair, equal and transparent access across all
NSE nationwide locations and to provide connectivity to the trading members as soon as
possible.
However, even now Online trading has not still grasped the market, but has done a very
important amount of progress in the past years and the future of online trading is bright. That
is why many new companies are coming into this form of business structure and the existing
companies are changing to this new format besides offline and other traditional forms of
business. With only a mere share of 10% online trading there is a much greater scope for
online trading.
There are two broad models in play in the online brokerage space-
 Bank-backed firms
 Entrepreneur-floated firms.
Bank-backed brokerages such as ICICIdirect and HDFC Securities have expanded on the
basis of their brand name and the trust of investors in them. The integrated 3-in-1 accounts
offered by these bank-backed brokerages help their parent bank by giving it accounts along

with float income. In second case i.e. Entrepreneur-backed companies like Investsmart,
Indiabulls, Sharekhan, Religare and IndiaInfoline have expanded by offering customers a mix
of online and offline accounts, higher margin finance amounts and lower brokerage rates.
Though the bank based has performed better but the latter have not lagged too far behind.
The steep increase in trading at the stock markets is one reason why online trading has
developed over conventional offline brokerage firms. Conventional method struggled with
unfavorable economies. Staff cost is just one example of it. As the markets opens for 335
minutes a day one dealer can at best execute 500 trades in a day while online company like
ICICI direct executes 150,000-200,000 trades a day on the National Stock Exchange alone
accounting for 3-4% of NSE trades of 5 million a day. It would require a large amount of
dealers to service this demand. Besides the salary costs it would also demand huge
expenses in real estate and support systems.
The offline model has got a downfall in the form of lower bandwidth and IT costs and the cost
of bandwidth has fallen to one-eighth of what it was in 2000 giving online broking an
advantage especially in the case of lower-volume retail investors. In 2004, 30% of volumes on
the NSE comes from this and it gone up to 50% in year 2008-2009 providing explosive growth
for online broking in India.
Online Stock Trading (OST):

 Online Stock Market Trading is an internet based stock trading facility. Investor can
trade shares through a website without any manual intervention from the stock broker.
 In the case of OST, these online stock trading companies are stock brokers for the
investor. They are registered with one or more stock exchanges. Mostly
Online trading websites in India trades in BSE and NSE.
 Online stock trading is very old concept for big institutions who trade through private
networks owned by Reuter's Instinet and a system called Posit since 1969.
Online trading is a technology which integrates trading account with client’s depository
account and bank account to bring you the comfort of hassle free trading. It provides a wealth

of information, analysis and tools that enable anyone to take more informed decisions. There
no paper work involve as all transaction records are online and statements available in digital
form. One can invest anytime and from anywhere as per convenience even at night after the
market is closed.
Online trading allows one to invest across different asset classes like equity shares, mutual
funds and IPO’s. It provides an up-to-date information and analysis in an investor friendly
format, from some of the best information providers in their respective field. An individual
using the online facility can place their equity order and receive order conformation during
peak hours. Also a dedicated customer care cell is provided to online trading account
customers so that their queries and problems are solved.
With the help of online trading account client can do trading by the process of buying and
selling of shares. Depending on broker may result in delay of buying and selling of shares
which may in turn result in huge loss or less profit. Online share trading helps account holder
to execute their own trades at any time because they are observing every movements of
share market right in front of your computer screen. With the help of internet client can aware
of government news, company’s announcements and corporate declaration etc. During
markets hours which is not practical for to the broker to provide.
Problems occur during online share trading is disconnection of internet connection or
connection may get slow, computer problem, electricity disconnection or other problem which
are beyond control. This may result in disconnection from share market.
ADVANTAGES OF ONLINE TRADING
Internet trading commissions are clearly posted on the websites of the various services, and
are typically a fixed rate charge, depending upon the type of security being traded and the
size of trade. In theory, therefore, an Interest investor always knows what commission he is
being charged on each trade. Internet investors can take as much time as they would like to
take prior to placing a trade order. Similarly the online investor likely does not have to worry
that his broker is making unauthorized trades. Since there is no individual broker making a
commission, the only person who is authorized to trace in a the account is the actual investor.
Furthermore, the Internet investor can never become a victim of excessive trading (where for
the broker) since the investor maintains total control over the number of transactions which
take place in the account.
They can also check the status of their orders either through e-mail or through the interface
that it cannot be accessed by a third party. Some options are usually given to users such as to
link their bank account, Demat accounts and brokerage accounts into a single interface. A
single window is also there for all exchanges and a single screen is there for the complete
order routing mechanism.
1. Provides with the Freedom of Information

The Internet provides a new sense of controlling our financial future as the amount of
investment information available online is truly outstanding. An investor can-
 Know the price of any stock he desires at any point time on the internet.
 An investor can review the price history of any stock in chart format online
 An investor can follow in-depth the events happening in the market
 Helps an investor in receiving a wealth of free commentary and analysis about
stock markets in the global economy
 Helps an investor to conduct an extensive financial research of any company he
desires
 He may also consult with other investors online present around the world
Some online stock broking companies provide real-time stock quotes, daily
roundups of the stock market, expert commentary, and a deep community of
fellow investors.
2. Provides Control to Investors Money

When an investor wants to buy or sell stock he no longer need to call his broker on the phone
thus helping in the execution of the order instantly on the internet.
3. Provides access to the market

Through the sophisticated information streams, dedicated trading platforms and Sophisticated
tools the investor can access the markets which provide more agility in buying and selling
stocks.

4. Ensures the best price for investors

Some companies like Investsmart (IL&FS)specialize in the techniques which offers the best
price deals for the buy and sell orders of the investors and traders providing the high level of
transparency by displaying of information relating to the specific stocks and company profiles
which helps in getting the best quote for the orders.
5. Online trading offers greater transparency

Online trading offers the investors with greater transparency by providing with an audit trail.
The process involves a complete integrated electronic chain starting from order placement, to
clearing and settlement and finally ending with a credit into the depository account of the
investor. All these stages are inspected which brings the transparency into the system.
6. Provides hassle free trading

Online trading provides an integration of the bank account, trading account and demat
accounts, which leads to easy and paperless trading for the client.
7. Online trading allows instant trade execution

Online transactions helps in the quick execution of the entire trading transaction right from
logging to the traders site and to the settlement of the bank account in a very short period of
time.
8. It provides a level playing field

Trading online gives even the smallest retail investor access to information which was earlier
available only to the big traders. It has provided with a level playing field for all investors in the
securities market.
9. Online trading reduces the settlement risk

This method of trading reduces the settlement risk for the investor as when a short sell order
is played the orders are squared off at the specified cut-off time and are not allowed to be
carried forward.
10. Provides live financial news & analysis

The online sites also provide live terminals which provide streaming news to give investor the
latest financial information as it occurs.
11. Online help desk

Some companies provide online help desk an investor cancan contact the Tele Trading
Executives from the Tele Trading team during and after market hours and can clarify
questions.
12. Instant order trade confirmations

Through online trading every trade is confirmed immediately and investor receives an on-
screen confirmation following every trade with full details for the investors records which
avoids costly errors that would have been discovered when it is too late.
13. Keeps Information Secure

As per the guideline provided by SEBI every effort has to be made to keep the investors
account and personal information secure by use of encryption technology and updated
security technology to advanced fraud prevention measures.
DISADVANTAGES OF ONLINE TRADING

 In online terminal, investor can’t get customized expert advice, whereas in offline
the broker gives suggestions according to investors strategy (i.e. short term
or long-term)
 Brokerage is high compared to offline.
 Privacy is less due to hacking scandals
 Transactional errors due to technical problems
To use the online trading services an investor has to register with an online trading portal like

Investsmart.in, ICICIdirect.com, Religare, motilaloswal.com and sharekhan.com and many

companies like that and investor gets into an agreement with the firm to trade in different
securities according to the terms and conditions given on the agreement. As the servers of
the online trading portal are connected all the time to the stock exchanges and designated
banks the order processing is done in real time and investors can also have updates on the
trading. The various players are offering their customers different facilities and have adopted
different strategies to attract and retain investors.
Basically when a firm gives facilities to its customers to trade Online in financial and
commodities markets, it involves synchronizing that individual customers 3 accounts.
1) Saving Bank Account.
2) Demat Account.
3) Trading Account.
The basic requirement for trading Online is having a bank Saving account in ones name. The
customer has a choice of choosing with whom he has to open his Demat and/or Trading
account. He can open it with separate service providers or with the same service providers.
Demat Account
Demat refers to a dematerialised account.
Though the company is under obligation to offer the securities in both physical and demat
mode, you have the choice to receive the securities in either mode.
If you wish to have securities in demat mode, you need to indicate the name of the depository
and also of the depository participant with whom you have depository account in your
application.
It is, however desirable that you hold securities in demat form as physical securities carry the
risk of being fake, forged or stolen.
Just as you have to open an account with a bank if you want to save your money, make
cheque payments etc, Nowadays, you need to open a demat account if you want to buy or
sell stocks.
So it is just like a bank account where actual money is replaced by shares. You have to

approach the DPs (remember, they are like bank branches), to open your demat account.
Let's say your portfolio of shares looks like this: 150 of Infosys, 50 of Wipro, 200 of HLL and
100 of ACC. All these will show in your demat account. So you don't have to possess any
physical certificates showing that you own these shares. They are all held electronically in
your account. As you buy and sell the shares, they are adjusted in your account. Just like a
bank passbook or statement, the DP will provide you with periodic statements of holdings and
transactions.
Every financial institution providing the demat-cum-trading facilities should have a Depository
Participant (DP) unit. Every financial institution providing the demat-cum-trading facilities
should be recognized by the following government organizations:
 Bombay Stock Exchange (BSE)
 National Stock Exchange (NSE)
 Securities and Exchange Board of India (SEBI)
 Central Depository Services (India) Limited (CDSL)
 National securities depository limited (NSDL)
What is a depository?
 The depository is provided by the depository system.
 A depository is a facility for holding securities, which enables securities transactions to
be processed by book entry.
 To achieve the above mentioned purpose, the depository may immobilize the securities
or dematerialize them (so that they exist only as electronic records).
 India has chosen the dematerialization route. In India, a depository is an organization,
which holds the beneficial owner's securities in electronic form, through a registered
Depository Participant (DP).
 A depository functions somewhat similar to a commercial bank.
 To avail of the services offered by a depository, the investor has to open an account
with it through a registered DP.
 For performing the above tasks, two depositories viz., National Securities Depository
Limited (NSDL) & Central Depository Services Limited (CDSL) have come up.

National Securities Depository Limited (NSDL):

 It is a joint venture of:
1. IDBI (Industrial Development Bank of India Limited);
2. NSE (National Stock Exchange); and
3. UTI (Unit Trust of India).
 NSDL is the first depository to be set up in India.
 It was registered by SEBI on June 7, 1996.
 NSDL has established a national infrastructure of international standards that handles
most of the securities held and settled in dematerialized form in the Indian capital
market, since its inception.
 NSDL aims at ensuring the safety and soundness of Indian marketplaces by
developing settlement solutions that increase efficiency, minimize risk and reduce total
operating costs.
 As on May 23’ 2009, NSDL has about 9.2 million investor accounts in India.
 As on May 23, 2009, these accounts are serviced by NSDL through Depository
Participants which provide services from more than 9,200 offices/locations in 914
towns/cities in India.
 As on May 23’ 2009, NSDL has custody of securities worth USD 870 Billion.
Central Depository Services Limited (CDSL)

 CDSL has been promoted by Bombay Stock Exchange (BSE) and Bank of India (BoI),
State Bank of India (SBI), Bank of Baroda (BoB), HDFC Bank, Standard Chartered
Bank, Union Bank of India (UBI), and Centurion Bank.
 It was formed in February, 1999.
 All leading stock exchanges like the National Stock Exchange (NSE), Calcutta Stock
Exchange (CSE), Delhi Stock Exchange (DSE), Ahmedabad Stock Exchange (ASE),
etc., have established connectivity with CDSL.
 As at the end of Dec 2007, over 5000 issuers have admitted their securities (equities,
bonds, debentures, and commercial papers), units of mutual funds, certificate of
deposits etc. into the CDSL system.
 The balances in the investors account recorded and maintained with CDSL can be
obtained through the DP.

 CDSL offers an efficient and instantaneous transfer of securities
 Both depositories have a network of Depository participants (DPs) which are further
electronically connected to their clients.
 The DP’s act as a link between the depositories and the clients.
 The Depository system to some extent works like the banking system.
 There is a central bank and the rules and regulations related to the working of all the
commercial, foreign, co-operative and other types of banks are framed by the central
bank.
 In order to do the daily transactions, the investors open an account with the
associate banks, and not with the central one.
 Like an investor can have a bank account with more than one bank, similarly one can
have more than one demat account.
What is a Depository Participant (DP)?

 The depository has agents called as depository participants (DPs).
 A Depository Participant (DP) is the representative (agent) in the depository system to
the customers, providing the link between the demat-cum-trading facilities providing
company and the customers through the depository.
 The Depository Participant (DP) works similar to the brokers, who trade on behalf of
the customers in and outside the Stock Exchange.
 The Depository Participant (DP) will maintain the securities, and the account balances
of the customers, along with intimating to the customers about the status of their
holding from time to time.
 According to SEBI guidelines, Financial Institutions like banks, custodians,
stockbrokers etc. can become participants in the depository.
 A Depository Participant (DP) is one with whom the customers have to open a demat
account to deal in securities in electronic form.
 While the depository can be compared to a bank, the Depository Participant (DP) is like
a branch of bank with whom the customer can have a demat account.
 As a broker represents their investors, and can trade on their behalf either on the stock
exchange or off-market. Similarly, a Depository Participant (DP) is the representative
(agent) of the investor in the depository system providing the link between the
Company and the client through the Depository.
 The client’s Depository Participant (DP) will maintain his securities account balances
and intimate the status of the holding from time to time.
 DP is one with whom a client needs to open an account to deal in electronic form.
 While the Depository can be compared to a Bank, DP is like a branch of a bank with
which one can have an account. Therefore, DPs are authorized to maintain accounts of
dematerialized shares.
 They help in instantaneous electronic transfer of shares held in Demat form through
electronic book entry system.
Recommendation Of SEBI
The SEBI has also played an important role in the issue of the guidelines regarding online
trading so that the chances of fraud and misrepresentation are minimized. The stock brokers
which are being registered with Securities Exchange Board of India (SEBI) will have to apply
to stock exchanges for a formal permission. The following conditions must be fulfilled-
 The online trading company must have a minimum net worth of Rs 50 lakh
 The encryption technology should be there in the system used by the brokers to
ensure the provision for confidentiality, security, justifiability and reliability of data .The
user id, first level and second level password, automatic expiry of passwords at the end
of a reasonable period.
 The brokers must maintain adequate back-up systems and data storage capacity
which must be checked by the stock exchanges.
 SEBI has recently announced that to reduce the fraud cases each and every broking
house has to give back the full amount of customer after each three month, they will
have to show the zero balance of every customer’s account at the end of every 3
month
 The minimum qualification must be laid down by the stock exchange to ensure that the

Persons hired by the brokers must have the proper qualification regarding trading so as
to guide the clients and he can communicate regarding trading instructions.
 To ensure the authenticity and accuracy of data a certification agency must be
appointed using the certification technologies when notified by the government or the
SEBI.
 The better client and the broker relationship to be maintained.
 To determine the risk associated with the clients the brokers must have the have
sufficient verifiable information about clients and the stock exchange must ensure it.
 The clients must be taken into an agreement stating about all the obligations and rights
including the minimum service standards to be maintained by the service provider
broker for services specified by SEBI/exchanges for Internet-based trading from time to
time.
 The web site of the broker providing the online trading facility should contain
information rules and regulations affecting client broker relationship, arbitration rules,
investor protection rules, etc meant for investor protection. It should also provide and
display prominently hyper link to the web site/page on the web site of the relevant stock
exchange(s) displaying rules/ regulations/circulars. Ticker/quote/order book
displayed on the web site of the broker should display the time stamp as well as the
source of such information.
 An e-mail should be sent to he investor for the confirmation of his Order or trade.
 The limits of trading and exposure provided to the client must be set on system-based
control and brokers and exchanges must ensure it. The limits must be predefined by
the broker on the exposure and turnover of each client. The system of broker should be
such that it is capable of assessing the risk of the client as soon as the order comes in.
The system should inform the clients client the reports on margin requirements,
payment and delivery obligations etc.
 As per the regulations the Contract Notes must be issued to clients within 24 hours of
the trade execution.
 Cross trades of the clients will not be allowed with each other to the brokers using
Internet based systems for routing client order and all orders must be offered to the
market for matching.

A separate working group has been set up to look into the surveillance and
enforcement-related issues arising due to Internet-based securities trading. However, general
anti-fraud provisions (SEBI Fraudulent and Unfair Trade Practices Regulations, 1995) will
apply to all transactions involving securities or financial services, regardless of the medium.
Development Credit Bank
About DCB
A new generation private sector bank, Development Credit Bank (DCB) is the preferred
banking services provider across 80 state-of-the-art branches across 10 states and two union
territories. The Bank has recently launched several value added initiatives and intends to
become one of the country’s preferred and profitable private sector banks, providing a
comprehensive suite of “best in class” products for customers in Retail, SME and Corporate
Banking market segments in chosen geographies.
DCB has deep roots in India since its inception in the 1930’s. Its promoter the Aga Khan Fund
for Economic Development (AKFED) holds over 23% stake. AKFED is an international
development agency dedicated to promoting entrepreneurship and building economically
sound enterprises in the developing world. It had co-promoted HDFC in India in the late
seventies. AKFED operates as a network of affiliates comprising 90 separate project
companies. Employing over 30,000 people, it reported annual revenues in excess of US$1.5
billion. The Fund is active in 16 countries in the developing world.
Vision
Our vision is to be the most innovative and responsive neighbourhood community bank in
India serving entrepreneurs, individuals and businesses.
Values
• Treat Everyone with Dignity – Respect
• Do What is Right – Ethical
• Be Open & Transparent – Fair

• Sense of Urgency, Passion & Energy – Dynamic
• Go the Extra Mile & Find Solutions – Stretch
• Improve Continuously – Excellence
• Play as a Team, To Win – Teamwork
• Support the Society - Contribute
DCB - A Historical Perspective

Built on over 78 years of trust, tradition and togetherness, DCB was converted into a
Scheduled Commercial Bank on May 31, 1995, in the wake of India’s economic liberalization.
It was the only co-operative bank, which successfully crossed over and thrived in the face of
change. The Bank has a network of 80 state-of-the-art, customer friendly, and conveniently
located branches across the states of Maharashtra, Gujarat, Andhra Pradesh, Karnataka,
Delhi/ NCR, Rajasthan, Goa, Tamil Nadu, Haryana, West Bengal and the Union Territories of
Daman & Diu and Dadra & Nagar Haveli.
Spreading wings, with the wind beneath
Under the able guidance of an experienced Board of Directors and the leadership of a
dynamic senior management team DCB strategically aims to enhance its reach and spread,
while introducing exciting new banking products for its customers.
Seamless, flawless and timely service
To adhere to its vision of becoming the gold standard in customer service in Indian banking,
intensive training and service quality programs have been initiated with customer delight
becoming the key focus of the Bank. This will become the lifeblood of DCB and act as its key
differentiator.
Not just a Bank, a Financial Supermarket
DCB intends to offer an extensive range of products across its branches. Suitable variants of
the basic products like savings and current accounts as well as innovative products such as
the ‘DCB Trio’ and ‘Easy Business,’ keep DCB ahead of the pack. Demat Account and a
range of investment products like mutual funds, insurance and bonds make the product
offering complete.

Close to its roots, yet flying high

Since its inception, DCB has always taken an active interest in developing low-cost customer
deposit products and providing for the needs of small and medium businesses in select
regions. It continues to fulfill every consumer need with great enthusiasm. The Bank is also
suitably equipped with the latest versions of Finacle from Infosys and Oracle to provide
seamless service to its customers.
A Bank for its people

The pan-India employee teleconferences and introduction of performance-based incentives
have already charged the existing work force. Given its reputation for being a non-hierarchical
and dynamic organization, DCB is one of the chosen destinations for aspiring banking
professionals.
A grip on the future
The Bank has an active and robust treasury, managing its interest rate risks and liquidity by
providing an uninterrupted flow of funds, positioning the Bank for future growth.
Latest Offering:
DCB is planning to relaunch Smart Trade an Online trading platform so as to better cater to
the investment needs of its existing and prospective customers.
Basically when a firm gives facilities to its customers to trade Online in financial and
commodities markets, it involves synchronizing that individual customers 3 accounts.
1) Saving Bank Account.
2) Demat Account.
3) Trading Account.
The basic requirement for trading Online is having a bank Saving account in ones name. The
customer has a choice of choosing with whom he has to open his Demat and/or Trading
account. He can open it with separate service providers or with the same service providers.
Today most of the banks provide online trading services to its customers as a part of its effort
to provide customers all financial services under one roof. DCB’s foray into online trading
with Smart Trade Online trading platform (A Tie-Up with IIFL) shows the banks intention to
towards becoming a one stop spot for all financial products.
The part below gives a detail study of different organizations providing Demat and Trading
facilities and the services they offer.
Online trading platforms
HSBC InvestDirect (Earlier ILFS Investmart)
HSBC InvestDirect (India) Limited (HIL) is one of the India's leading financial services
organizations providing varied range of services through its subsidiaries to Individual and
Corporate customers. HIL is listed on the Bombay Stock Exchange Limited (BSE) and
National Stock Exchange Limited (NSE). HSBC InvestDirect offers various services that
include equity broking, wealth management, IPO distribution and portfolio management
services.A unique integrated account, which integrates banking, broking, and demat accounts
and Is facilitating the three type of trading product to its retail customer:
SmartSTART
SmartInvest is a browser-based system designed for customers who transact occasionally. It
is ideal for investors who believe in the Buy and Hold approach towards investment in
equities. A comprehensive trading service, which allows you to invest in equities and
derivatives. SmartStart trading platform allows the flexibility of trading on any internet capable

system, with access to both the NSE and BSE. SmartInvest sophisticated yet easy to use
point and click order entry interface allows to react more quickly to the markets and make
better decisions.
FEATURES
Trade on NSE & BSE
 Simple order entry for Equity & Derivatives
 Fully Customizable display
 User friendly Get Quote screen
 Integrated Accounts (Bank. Demat & Trading)
 Live order status
 Track your orders real-time
 Dynamic buying power
 Works behind a Proxy
 Back office access

Smart Invest:
SmartInvest is a browser-based system designed for customers who transact occasionally. It
is ideal for investors who believe in the Buy and Hold approach towards investment in
equities. SmartInvest's capability as a browser-based trading platform gives the benefit of
real-time streaming data with the flexibility of trading on any Internet capable system. With
access to both the NSE & BSE, the user is in the driver's seat when routing his order to the
price on either of the exchanges. SmartInvest sophisticated yet easy to use point and click
order entry interface allows you to react more quickly and make better decisions.
Features
 Instant loading
 Works behind a proxy
 Live Streaming Quotes
 Multiple watch lists
 Single order form for Cash and FnO
 Point and Click order entry

 Hot Key functions
 Market Depth window
 Back Office access
SmartTRADE:
SmartTrade is an EXE based desktop software designed for active traders who transact
frequently to capture favorable short-term price movements. It is designed and built from the
ground up to address the needs of active traders. SmartTrade makes the most of state-of the-
art technology to deliver power, speed and reliability. Through an easy-to-use interface, users
are provided with the same tools and advantages that the professionals enjoy.
Features

 Fully Customizable display

 Dynamic Charts with Indicators
 EOD Charts
 Advanced Alert capabilities
 Track your orders real time
 Real time position updates
 Dynamic buying power
 Lock terminal option
ShareKhan
Sharekhan is online stock trading company of SSKI group, provider of India-based investment
banking and corporate finance service. Sharekhan is one of the largest stock broking houses
in the country. S.S. Kantilal Ishwarlal Securities limited (SSKI) has been among India’s
leading broking houses for more than a century. Sharekhan's equity related services include
trade execution on BSE, NSE, derivatives, commodities, depository services, online trading
and investment advice. Trading is available in BSE and NSE. Along with sharekhan.com
website, Sharekhan has around 510 offices (share shops) in 170 cities around the country.
Share khan has one of the best state of art web portal providing fundamental and statistical
information across equity, mutual funds and IPO’s. You can surf across 5,500 companies for
in-depth information, details about more than 1,500 mutual fund schemes and IPO data. You
can also access other market related details such as board meetings, result announcements,
FII transactions, buying/selling by mutual funds and much more.
Sharekhan Classic account

Allows investors to buy and sell stocks online along with the following features like multiple
watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with
price alerts and Instant credit & transfer.

 Online trading account for investing in Equities and Derivatives
 Free trading through Phone (Dial-n-Trade)
• Two dedicated numbers for placing your orders with your cellphone
or landline.
• Automatic funds transfer with phone banking (for Citibank and
HDFC bank customers)
• Simple and Secure Interactive Voice Response based system for
authentication
• Get the trusted, professional advice of our telebrokers
• After hours order placement facility between 8.00 am and 9.30 am
• Integration of: Online trading + Bank + Demat account
• Instant cash transfer facility against purchase & sale of shares
• Investments and trade confirmations by e-mail
• Single screen interface for cash and derivatives

ShareKhan Trade Tiger

This accounts for active traders who trade frequently during the day's trading session.
Following are few popular features of SpeedTrade account.
 Single screen interface for cash and derivatives
 Real-time streaming quotes with Instant order Execution & Confirmation
 Hot keys similar to a traditional broker terminal
 Alerts and reminders
 Back-up facility to place trades on Direct Phone lines
Features
 Freedom from paperwork
 Instant credit and money transfer
 Trade from any net enabled PC

 After hour orders

 Online orders on the phone
 Timely advice and research reports
 Real-time Portfolio tracking
Share khan has also started providing its customers the service of Buying Selling mutual fund
NAV including the facilities of Switch In and Switch Out. This Facility is available to customers
using either of its Two platforms (Trade Tiger and Classic Account).
Geojit BNP Paribas
Geojit BNP Paribas today is a leading retail financial services company in India with a growing
presence in the Middle East. The company rides on its rich experience in the capital market to
offer its clients a wide portfolio of savings and investment solutions. The gamut of value-
added products and services offered ranges from equities and derivatives to Mutual Funds,
Life & General Insurance and third party Fixed Deposits. The needs of over 495,000 clients
are met via multichannel services - a countrywide network of over 500 offices, phone service,
dedicated Customer Care centre and the Internet. Geojit BNP Paribas has membership in,
and is listed on, the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
In 2007, global banking major BNP Paribas joined the company’s other major shareholders
and took a stake to become the single largest shareholder.
A strong brand identity and extensive industry knowledge coupled with BNP Paribas’
international expertise gives Geojit BNP Paribas a competitive advantage. Their Online
platforms are:
'FLIP' (Financial Investment Platform), an enhanced Online Investment Platform that

comes with a plethora of new features, products and services. FLIP is an Advanced
Investment Platform that comes with multiple conveniences and flexibilities.

 Enhanced Buying Power (in Cash Segment for delivery and intra-day trading) against
demat holdings, and unsettled shares purchased in previous settlement.
 Pledge shares with Geojit BNPP or with NSCCL
 Place your order through the channel of your convenience i.e. Internet or at your
Branch or via the Call Center.
FLIP Lite
FLIP Lite is a browser based version and will help to trade even if you have a low bandwidth
connection.
Key Features of Lite:
 Light
 Speed
 Easy
 FLIP Lite is designed to work on mobile devices

FLIP Gold Platform

FLIP Gold Platform is also a browser based version that can be accessed from around the
world. This Platform is offered absolutely FREE to all online customers. FLIP Gold Platform is
ideal for those who travel often and hence cannot access their own computer for trading.
Key Features of Gold Platform:
 Real-time configurable Market Watch with auto save functionality
 Live top gainers, top losers and most active scrips
 Tick by Tick Intraday Charting
 Advanced charting with 60 technical studies
 Live exchange-broadcasting messages
 Analyze multiple Market Depth view
 Optimized to work on low bandwidth
 Works behind proxy & firewall
 Real-time Research & Trade Execution notification via pop-up
 Online fund transfer facility
 After market hours, orders can also be placed in both the Exchanges
 Online investment of Mutual Funds and IPO’s
 Facility to convert Intraday, Delivery and open positions.
Platinum Platform :
Platinum platform is a virtual dealer terminal. It is best suited for active traders, who take
advantage of minor movements in the price. This EXE program can be downloaded on the
client’s computer. This platform is FREE if brokerage criteria is met else clients can opt for the
refundable fee option.
Key Features
 All the features of Gold are available in Platinum
 Platinum is similar to a dealer terminal
 Flexibility to customize screen layout and setting

 Professional, Classic, Customized Market Watches
 Fast trade execution with instant trade confirmation through pop-up
 View Cash, F&O and Currency quote in a single market watch screen
 Real-time updation of Index & Tick by Tick updation of index chart
 Online Fund transfer facility
 Place orders in the Post-Close session of the Exchanges
 After market hours orders can also be placed in both the Exchanges
 Online investment of Mutual Funds and IPO’s
 Intraday & EOD Sophisticated studies such as Technical indicators can be performed
by using appropriate parameters
 FLIP Platinum users have access to the Gold Platform also.
Axis Bank – Online Trading
Axis Bank in alliance with Geojit Financial Services offers an online trading account with
facilities to trade from the comfort of your home or office either through the internet or the
phone. This service provides you with an integrated savings bank account, demat account
and an online trading account to give you a convenient and paper free trading experience.
As an axis bank online trading customer you would also have the flexibility to get an insight to
a complete range of corporate information, reuters news and research tools which would help
you to take timely investment decisions.

Motilal Oswal
Motilal Oswal securities ltd. through its online MyBroker platform gives an opportunity to be
your own broker with complete research support from most which helps you to make right
decision at right time. You can choose your trading a/c which suits your trading habit’s &
preference and trade anywhere, anytime. Buying and selling is as easy as click of a button.
MyBroker - Motilal Oswal’s online trading terminal has been designed to provide an
investment experience like never before. Comprehensive range of financial products will cater
to almost every financial need of yours. A brief description of our product features have been
mentioned below:
Equities/derivatives
 Advanced online platform replete with top class features to help you place trades at the
click of a few buttons. Seamless execution of trades is made possible since our 3-in-1
account links your trading, demat and bank account.
 View NSE/BSE live streaming quotes on a single screen.
 Choice of transferring funds online through multiple banks.
 Entirely customizable multiple market watch facility to help you track stocks on a
regular basis.
 Instant order/trade confirmation facility to give you a similar trading experience as
exchange trading terminal.
 Simplified net position screens to squareoff all your open positions.
 Access to latest research reports like daily market diary, derivative diary, and pivot
points on your screen.

 Get stock recommendations during live market hours on your trading screen.
 128-bit SSL encryption technology to ensure the highest security of your online
transactions.
Initial Public Offerings (IPO’s)

 Apply for ipo’s online without filling up physical forms or writing out cheques
 Check your ipo order status details.
 Modify/cancel your bids online.
 Transfer funds online to your IPO account.
 Access the latest information and news relating to ipo’s
Mutual funds
 Apply online in the best of schemes with minimum effort
 Check your mf order status and also modify or cancel your orders
 View your mf holdings with details of nav and percentage wise composition of your
portfolio.
 Transfer funds online to your mf account
 Get the latest news and information in the world of mutual funds
 Avail of top class research on various mutual funds
Products offered
Looking at the needs of the customers Motilal Oswal has categorized its products into three
categories:
MyBroker Exe – Active Trader

MyBroker Spectrum – Active Investors
MyBroker Easy Trade – Retail Investors

MyBroker EXE is a product specially made for the clients who are active into the market or
daily trader this product is exe base and need to be installed. This product gives you a
complete feel of broker terminal. Looking at the needs of active trader all the features are
been incorporated.
MyBroker Spectrum is the product for active investors. A comprehensive account with live
streaming quotes and top class features to help you make instant transactions. This product is
java based product so can be operated from any internet connected pc having sun java
installed.
MyBroker Easy Trade enables you to trade online on the NSE & BSE, NSE F&O, invest in
IPO and Mutual Funds and access to all the research and transaction reports through our
website.

SBI Online Trading
SBI has a Tie-Up with Motilal Oswal to provide Online trading services to its customers
Benefits of Online trading

 Integrated 3 in 1 account
 'Block' funds real time
 Speed and Safety
 Solution for all capital market needs
 Reuter news
 Phone

Religare Securities (Indusind Bank has a Tie-Up With Religare)
Religare Securities ltd is a Ranbaxy promoter group company, is one of India’s largest and
fastest growing integrated financial services institutions. The company offers a large and
diverse bouquet of services ranging from equities, commodities, insurance broking, to wealth
advisory, portfolio management services, personal finance services, investment banking and
institutional broking services.
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.
Unique features and benefits of trading through religare:

 Trade Reward: Trade rewards is a unique offering from religare that gives you dual
benefits of hassle free investment experience online and an opportunity to earn while
you invest with us.
 Zero Brokerage: “Break the Shackles”. Get freedom from brokerage and avail ZERO
Brokerage on trades.
 Exposure Up To 20 Times On Your Margin: Allowing you the freedom to trade without
hassles throughout the day without having to worry about your cash margin. You can
get exposure (on cash segment) as high as 20 times for intraday trades. Of course
conditions apply on above two.
 Interest on Cash Margin: Even while you are waiting to make your next trade or online
investment, your unutilized cash does not lie idle with us. You earn interest on your
unutilized cash margin.

Platforms
R-Ace (Basic):
 No software installation required, easily accessible on browser
 NSE Cash segment, NSE F&O and BSE on single platform
R-Ace Lite (Advanced) :

 No software installation required, easily accessible on browser
 Real-Time streaming quotes
 Hot Key functions for faster trading
R-Ace Pro (Professional):

 Traders terminal on your desktop
 Real-Time streaming quotes
 Technical charting (Intraday and EOD)
 Multiple watch list
 Advanced Hot-Key functions for faster trading
 Derivative chains
 Futures & Options calculator
 Brokerage details

SMC: (PNB Has a Tie-Up with SMC to Provide Online Trading Account)
SMC online is One Stop Financial Investment portal for all financial needs. Customers can
trade online in equities, derivatives, currency futures, commodities, apply online for IPOs, and
invest online in mutual funds. At SMC, client services always come first & thus, SMC always
endeavor to offer latest online products, with State Of The Art technology, to serve better.
SMC, gives its customers financial freedom backed by sound in-house research & excellent
advisory capabilities.
SMC online has a range of online investment products. Customers can access their account
from anywhere using call-n-trade services. To provide clients better trading experience, SMC
has designed trading products according to varying needs of customer as at SMC we
understand that different people have different trading habits and preferences in capital
markets.
SMC Online Trading Edge

 Trade in equity, derivatives & commodities
 After market order (amo) facility available
 Live quotes
 Multiple payment gateways with reputed banks
 Online IPO
 Online mutual funds
 Excellent research support
 Competitive brokerages & charges

 Research reports on mail

 Stocks recommendations through sms
 Dedicated relationship manager
 Secured and user friendly website
 Online back office reports
 Dedicated customer care & support
 Use of latest technology for the best trading experience
 Access to quality information, research & statistics on the website
 Transparency
SMC Select
This trading platform is ideal for those investors who are new to securities trading. This
platform is simple to use & is most suited to retail investors who are not frequent traders. It is
most economical and convenient product for online trading and does not require any software
installation.
Features
 No software installation required
 Easily accessible on browser
 Trade on different exchanges on a single platform
 Online transfer of funds through multiple banks
 Online back office to track your investments
 Technical SMS alerts facility
 Latest news, market information and research reports on mail
SMC Exclusive
This account is ideal for active traders who transact frequently during day’s trading session to
capitalize on Intra-day price movements. In this product, real time streaming quotes facility is
available on browser interface.

Features
 Easily accessible on browser
 No software installation required
 Live streaming quotes
 Trade on different exchanges on a single platform
 Multiple market watch facility
 Hot key functions for faster trading
 Online transfer of funds through multiple banks Online back office
 Online IPO & Mutual Fund
 Technical sms alerts facility available
 Latest news, market information and research reports on the website
SMC Privilege
This account is an application based privileged online trading product, which is meant for
clients who are actively involved in the stock market and do the bulk trading. It offers
comprehensive facilities on a single screen, similar to that of a broker’s terminal, thus
providing greater ease and time advantage, to the investors.
Features
 Trading terminal on your desktop
 Real time streaming quotes
 Intraday charting
 Different exchanges on a single screen
 Fully customizable market watch
 Track multiple stocks on single screen
 Hot key functions for faster trading
 Security lock for better safety
 Online transfer of funds through multiple banks
 Online IPO & mutual fund
 Online back office

 Technical SMS alerts facility available

 Latest news, market information and research reports on mail
After a thorough study of different online trading platforms it can concluded that most of the
firms provide 3 different platforms to meet the different needs of the customers.
 A basic one for investors who transact occasionally and believe in holding securities
 The basic platform with add on features to investors who are likely to take their own
investment decision and are likely be knowledgeable of the market and would like to
study it before investing.
 EXE based desktop software designed for active traders who transact frequently to
capture favorable short-term price movements.
Some of the common features provided by all or most of these platforms are:
Basic platform
 Access to both the NSE and BSE
 Simple order entry for equity & derivatives
 Fully customizable user friendly display
 View NSE/BSE live streaming quotes on a single screen.
 Integrated accounts (bank. Demat & trading)
 Live order status
 Real time order tracking
 Instant automatic funds transfer with phone banking
 Easy to use
 Apply online for IPO

 Apply and keep track of mutual fund investment

 Most of the broking houses also provide their customers investments.
Advance platform
 Product for active investors
 Instant loading
 Customized multiple watch lists
 Hot key functions
 Market depth window
 Real-time configurable market watch with auto save functionality
 Tick by tick intraday charting
 Real-time research & trade execution notification
 Instant trade confirmation
 Online fund transfer facility
 After market hours, orders can also be placed in both the exchanges
 Access to latest research reports
Professional platform
 EXE based desktop software designed for active traders
 Tools and advantages that the professionals enjoy
 Fully customizable display
 Dynamic charts with indicators
 EOD charts
 Advanced alert capabilities

 Single screen interface

 Alerts and reminders
 Similar to a dealer terminal
The next part deals with Pricing Strategy adopted by different competitors in the markets.
Different firms adopt different pricing strategies for Delivery, Inter-Day and F&O. While some
firms have a flat pricing strategy i.e. they levy brokerage as a certain percentage of the
trading amount or they may charge customers at a different rates based on certain slabs
where the percentage charged as brokerage reduces as the trading increases.
Apart from the pricing strategies for Delivery, Inter-Day and F&O firms have adopted different
strategies for Opening and Maintenance of Demat and Trading accounts like No Maintenance
charge for first year, No account Opening charges, No Margin Money etc. so as to retain
existing customers and attracting new ones.
The firms also provide prepaid services to certain clients. This also shows the importance of
pricing in online trading industries and is also a major reason for customers being confused
as to whom to approach for opening trading and Demat accounts.

D C B S m a rt T ra d e
B ro k e ra g e ra te s B N P P a rib a s (a llia n c e w ith IIL F ) S h a re K h a n
AM C 2000 AM C 6000 AM C 18000
D e liv e ry
V olum e *(R s .) B rok erage Rate
< 1 0 lacs 0.3 0 %
> 1 0 lac < 5 0 lac 0.2 5 %
> 5 0 lac < 1 cr 0.2 0 %
> 1 cr < 2 cr 0.1 5 %

0.40% or 10 P ais0.2
e 5% or 5 P ais e 0 .20% or 4
> 2 cr 0.1 0 % (M inim um ) (M inim um ) P ais e (M inim um )
0.5 % or M in 5 P ais a
Intra -da y V o lume s
V olume *(Rs.) B rok erage Rate

< 2 cr 0.0 3 %
> 2 cr < 6 cr 0.0 3 %
> 6 cr < 1 2 cr 0.0 2 %

> 1 2 cr < 1 5 cr 0.0 2 %
0 .07% or 5 P ais e0.0 5% or 5 P ais e 0 .04% or 4
> 1 5 cr 0.0 1 % (M inim u m ) (M inim um ) P ais e (M inim um )
0.05% or M in 5 P a is a
F &O V o lu m e s
V olume *(Rs.) B rok erage Rate
< 9 cr 75
> 9 cr < 1 8 cr 65
F u tu re s: 0 .07% F u tu re s: 0.05 % F u tu re s:
or 1 P ais e or 1 P ais e 0 .04% or 1
> 1 8 cr < 27 cr 50
(M inim u m ) (M inim um ) P ais e (M inim um )
O p ti o n s:2% O f O p tio n s: 1.5% ofO p tio n s: 1% o r
P rem ium or Rs . P rem iu m or R s . Rs . 50/-
> 2 7 cr < 36 cr 40
9 0/- w hic hever is75 /- whic heve r is whic hever is
> 3 6 cr 30 h igh er high er h igh er
F u ture s brok erag 0.05%,

e – O ptions
b rok e rage (on prem iu m ) - 0.05 % or
Rs .10 0 whic he ver is higher

R s .2 0 p e r C o n tra c t o r 1 p a is a p e r
s ha re w h ic h e v e r is hig he r s u b je c t to
a m a x im u m o f 2 . 5 % p e r s h a re .
In c a s e th e c o n tra c t n o te is
d e liv e re d b y p o s t th e n R s .2 0 /- p e r
C o n tra c t o r 5 p a is a p e r s h a re
w h ic h e ve r is h igh e r s u b je c t to a
m a x im u m o f 2 .5 % p e r s ha re .
C re d it R e q u e s t C ha rge s R s .1 0 0
p e r re q u e s t
F ee Structure for D epository Services - Securities
A c c o u n t O p e n in g C h a r g e s N il R s . 5 5 5 / - fo r L ife t im e a c c o u n t N IL
C u s t o d y C h a rg e s N il
T ra n s a c tio n C h a r g e s
A – M a r k e t tr a d e s
R s . 1 6 / - p e r t ra n s a c t io n if t h e d e l ive ry
is t h ro u g h D IS o r P O A w it h o u t D C N
R s 1 1 / - p e r t ra n s a c t io n if t h e d e l ive ry
a ) F o r tr a n s a c ti o n th r o uDgehb itB (rsoaklee sr :) is t h ro u g h P O A / S p e e d -e w it h D C N 0 . 0 4 % , M in im u m
C r e d it (p u rc h a s e ) N il Rs. 15
b ) F o r tr a n s a c t i o n th r o u g h oD th
e beitr (sb raolekse)r s : R s 5 0 / - p e r t ra n s a c t io n 0 . 0 2 % , M in im u m
C re d it (p u rc h a se ) N il Rs. 15
B – O ff M a r k e t T r a d e s
R s . 1 5 / - p e r t ra n s a c t io n (if b o t h
a c c o u n t s a r e w it h G e o jit ) R s . 5 0 / -
D e b it ( s a le s ) p e r t ra n s a c t io n fo r o t h e rs -
C re d i t N il -
R e j e c t i o n / fa i l s C h a r g e s
P le d g e c h a rg e s
P le d g e c re a t io n R s . 5 0 / - p e r t ra n s a c t io n
0 . 0 2 % , m in im u m
P le d g e c lo s u r e N il Rs. 15
P le d g e in vo c a t io n R s . 1 0 0 / - p e r t ra n s a c t io n

A n n u a l M a in te n a n c e C h a r g e s
R s . 3 0 0 / - (E x is t in g C lie n t s ), D C N
C lie n t s : R s . 2 5 0 / -( N o t A p p lic a b le in
R e s id e n t A c c o u n t s fi r s t F Y fo r n e w c l i e n t s ) R s . 2 5 0 /-
R s . 3 0 0 / - u p fr o n t o r R s . 3 0 0 / - p a y a b l e R s . 7 5 p e r q u a rte r,
e q u a l l y i n 4 Q u a r t e r l y In s t a l l m e n t s o f i. e . R s . 3 0 0 p e r
N e w C lie n t s R s .75 /- e a c h - annum
C lo sin g C h a rg e s R s. 100
R s. 3 per
c e r t i fi c a t e o r R s 1 5
p e r re q u e s t ,
D e m a te r i a l iz a ti o n s C h a r g e s N il + c o u rie r c h a rg e s @ R s . 3 5 / - w h ic h e ve r is
Rs. 25 per
c e r t i fi c a t e o f 0 . 1 2 %
R s . 1 0 fo r e v e r y h u n d r e d s e c u r i t i e s o r o f t h e va lu e o f t h e
p a rt th e re o f ;} o r R s .1 0 p e r s e c u r it ie s ,
c e r t i fi c a t e , w h i c h e v e r i s h i g h e r } + w h ic h e ve r is
R e m a te r i a li z a tio n C h a r g e s c o u rie r c h a r g e s R s . 3 5 p e r s c rip h ig h e r.
C h a r g e s fo r R e q u e s ts to fr e e z e o r d e fr e e z e A c c o u n t R s . 2 5 p e r re q u e s t
A d d iti o n a l A c c o u n t S ta te m e n ts
R s . 3 0 0 / - ( N o t A p p lic a b le in fir s t
N R I C l ie n t s u s i n g e l e c t r o n ic c o m m u n ic a t i oF nY( D/q Cu aNr t)e r fo r N e w c lie n ts )
N R I C l ie n t s n o t u s in g e l e c t r o n ic c o m m u n ic a t ioR ns . 1 5 0 0 / -
R s . 1 0 0 0 / - fo r c lie n ts w h o t r a d e
S p e e d -e A d v a n c e w it h o th e r b r o k e r s
S p e e d -e A M C R s . 1 0 0 /-
M IN IM U M IN IT IA L M A R G IN R s .5 0 0 0 /-
A g r e e m e n t S ta m p P a p e r
O n l y D e p o s i to r y R e l a t i o n s h i p

P u n ja b N a t io n a l
B a n k ( A llia n c e w it h
B ro k era g e ra tes SBI Bank M o t ila l O s w a l SM C) IC IC I d ir e c t ( O p e n in g 3 - in - 1 A /c )
F r e q u e n t/S u b -b ro k e rs
S ta n d a r d C h a r g e s C h a rg e s
D e liv e ry
V o lu m e B ro k e ra g e R a t e
0 . 5 % o r 1 0 0 w h ic e ve r is
0 - 5 la k h 0 .5 0 0 % m o re 0 .5 0 %
5 - 1 0 la k h 0 .4 5 0 %
1 0 - 2 5 la k h 0 .4 0 0 %
2 5 - 5 0 la k h 0 .3 5 0 %
5 0 - 7 5 la k h 0 .3 0 0 %
7 5 la k h - 2 C ro re0 .2 5 0 %
0 .7 5 % a n d 0 . 0 5 % is0 . 7 5 % a n d 0 . 0 5 % is
re fu n d a b(m
le a x re fu n d re– fu n d a b(m
le a x re fu n d –
> 2 C ro r e 0 .1 5 0 % R s . 7 5 0 /-) R s . 7 5 0 /-)
I n tra -d a y V o lum e s
V o lum e * (R s.)B ro k e ra g e R a te 0.05% 0 .0 5 %

< 2 5 la k h 0 .1 5 0 %
2 5 - 5 0 la k h 0 .1 2 0 %
5 0 la k h - 1 .5 C ro re
0 .1 0 0 %
1 .5 - 3 C ro re 0 .0 8 0 %
3 - 6 C ro re 0 .0 7 0 %
6 – 10 Cr o r e 0 .0 6 0 %
0 .0 5 % a n d 0 . 0 1 % is0 . 0 5 % a n d 0 . 0 1 % is
re fu n d a b(m
le a x re fu n d re– fu n d a b(m
le a x re fu n d –
A b o ve 1 0 C ro re 0 .0 5 0 % R s . 8 0 0 0 / -) R s . 8 0 0 0 /-)
F & O V o lu m e s
S e t tle m e n t /F irs t
V o lum e * (R s.) Intra d a y Leg
0 - 2 C ro re 0 .0 7 0 % 0 .09 0 %
2 - 5 C ro re 0 .0 4 5 % 0 .07 0 %
5 - 1 0 C ro re 0 .0 3 5 % 0 .05 0 %
1 0 - 2 0 C ro re 0 .0 3 0 % 0 .04 0 %
2 0 - 3 0 C ro re 0 .0 2 5 % 0 .03 0 %
F u tu re s 0.0
– 5% a n d O p t io-n s
3 0 - 4 0 C ro re 0 .0 2 0 % 0 .02 5 % 1 % O f P re m iu m (M in R S .7 5 P E R
4 0 - 5 0 C ro re 0 .0 1 5 % 0 .02 0 % L O T)
0 . 0 5 % a n d 0 . 0 1 % is0 . 0 5 % a n d 0 . 0 1 % is
A b o ve 5 0 C ro re 0 .0 1 0 % 0 .01 0 % re fu n d a b le re fu n d a b le

F e e S tr u c tu r e fo r D e p o s ito r y S e r v ic e s - S e c u r itie s
R s . 10 0/- and R s 9 7 5 / - n o m a in t e n a n c e c h a r g e s fo r I D ire c t

T ra d in g A / c A c c o u n t M a i n t e n a n c e C h a r g e s fo r d e m a t a c c o u n t
A c c o u n t O p e n in g C h a rg e s c h a rg e s R s . 4 0 0 /- a r e w a i v e d o ff w h i l e o p e n i n g 3 i n 1 A c c o u n t .
C u s to d y C h a rg e s
T r a n s a c t io n C h a r g e s
F o r i n s t r u c t i o n F so ur bi nm s it rt ue cd t i o n s u b m i t t e d
th ro u g h : I n t he r on ue tg: h : In t e r n e t :
J u s t p a y 2 5 % u p fr o n t 0 . 0 4 % ( M i n . R 0s . 012 0%/ - ) ( M i n . R s . 5 / - )
m a r g i n fo r s e l e c t i v e s t o c k s C a l l C e n t e r : 0 .C0 4a l%l C ( eMn itne. r : 0 . 0 2 % ( M i n .
& c a rry fo rw a rd t h e p o s it io n R s . 1 5 / -) R s . 1 0 / -)
fo r 5 d a y s i n c l u d i n g t h e B r a n c h e s : 0 . 0 B4 %r a n( cM hi en s. : 0 . 0 2 % ( M i n .
a ) F o r t r a n s a c t i o n Dt herboi ut (gs ha l Be sr o) k e r : N il t ra n s a c t io n d a y . R s . 3 0 / -) R s . 1 5 / -)
C re d it (p u rc h a s e ) N il N il N il
b ) F o r t r a n s a c t i o n t h r oDu egb hi t o( st ha lee rs )b r o k e r s :

C r e d it (p u r c h a se ) N il
D e b it (s a le s )
C re d it N il N il N il
R e je c tio n / fa ils C h a rg e s R s 30/- R s . 1 5 /-
P le d g e c h a r g e s
0 . 0 2 % o r M in R s If IC IC I i s t h e c Ifo uICn ItCe Ir i s t h e c o u n t e r
1 5 /- o r 0 .0 4 % o r p a r t y 0 . 0 2 % ( Mp ai nr .t yR 0s .. 0 12 5%/ - ( M i n . R s . 1 5 / -
P le d g e c re a t io n M in R s 3 0 / - ) o r 0 . 0 4 % ( M i )n o. rR 0s .. 0 34 0%/ - )( M i n . R s . 3 0 / - )
P le d g e c lo s u re i f IC IC I i s n o t t hi f eICc ICo uI ni st e nr o t t h e c o u n t e r
p a r t y + N S D L pc ah rat yr g +e s N oSf D L c h a r g e s o f
P le d g e in vo c a t io n R s . 2 5 / - p e r i n Rs tsr u. c2 t5i o/ -n p e r i n s t r u c t i o n

A n n u a l M a in te n a n c e C h a r g e s
R s 3 5 0 / - fo r
c u s to m e rs
re c e ivin g R s 3 5 0 / -
R e s id e n t A c c o u n t s fo r c u s t o m e r s 350
re c e ivin g S t a t e m e n t t h r oR us g. h1 2e 5- m0 /a- i lo r ( R s 1 2 0 0 / -
s ta te m e n ts b y e - : R s . 4 5 0 o r Pf oh r y cs ui cs at ol m e r s r e c e i v i n g
N e w C lie n t s m a il s t a t e m e n t : Rs st a. t 5e 0m0 e n t s b y e - m a i l )
C lo sin g C h a rg e s
F o r e a c h r e q u Fe os rt efoa r cmh :r e q u e s t fo r m :
R s . 3 5 / - a n d ER xs t .r a3 5fo/ -r a n d E x t r a fo r
D e m a te r ia li z a tio n s C h a r g e s R s 3 7 /- e a c h c e r t i f i c a teea: c Rh s c 2e /r -t i fi c a t e : R s 2 / -
R s . 2 0 fo r e v e rRy s h. u2 n0 d for er d e v e r y h u n d r e d
s e c u r i t i e s o r ps ae rct ut hr i et i rees o fo r p a r t t h e r e o f
O R a fl a t fe e oO f RR sa . 2fl 0a t p fee re o f R s . 2 0 p e r
r e q u e s t , w h i c hr ee qv ue er si st , w h i c h e v e r i s
R e m a te r ia li z a ti o n C h a r g e s R s . 2 5 /- h ig h e r h ig h e r
C h a r g e s fo r R e q u e s ts to fr e e z e o r d e fr e e z e A c c o u n t
A d d iti o n a l A c c o u n t S ta te m e n ts R s . 3 0 /- R s . 2 0 /- R s . 2 0 /-
N R I C lie n t s u s in g e le c t r o n ic c o m m u n ic a t io n ( D C N )
N R I C lie n t s n o t u s in g e le c t r o n ic c o m m u n ic a t io n
S p e e d -e A d v a n c e
S p e e d -e A M C
M IN IM U M IN IT IA L M A R G IN R S .5 0 0 0 /-
A g r e e m e n t S ta m p P a p e r R s . 1 0 0 /- R s . 1 0 0 /-
A d v a n c e A m o Au dn vt aRn sc .e A m o u n t R s .
2 , 5 0 0 / - a n d T h7 r, e5 s0 h0 o/ -l da n d T h r e s h o l d
O n ly D e p o sito r y R e la tio n sh i p A m o u n t R s . 1 A, 0m0 o0 u/ - n t R s . 2 , 0 0 0 / -

B ro k e ra g e ra te s H D F C S e c u r it ie s K o t a k S e c u r it ie s K o t a k M a h in d r a O p t io n s C h a r g e s
O p t io n o f F ix e d b ro k e ra g e o f 0 . 4 9 % (M in 4 P a is e )
D e liv e ry
< 1 la k h 0 .59 %
1 - 5 la k h 0 .55 %
5 - 1 0 la k h 0 .45 %
1 0 - 2 0 la k h 0 .36 %
2 0 - 6 0 la k h 0 .27 %
6 0 la k h - 2 c ro re 0 .23 %
> 2 c ro re 0 .18 %
I n tra -da y V o lu m e s
O p t io n o f F ix e d b ro k e ra g e o f 0 . 4 9 % (M in 3 P a is e )
S q u a re -o ff b o t h s id e s
< 2 5 la k h s 0 . 0 6 % b o t h s id e s
2 5 la k h s - 2 c ro re s 0 . 0 5 % b o t h s id e s
2 c ro re s - 5 c ro re s 0 . 0 4 % b o t h s id e s
> 5 c ro re s 0 . 0 3 % b o t h s id e s
O p t io n o f fix e d b ro k e ra g e o f 0 . 4 9 % (M in 3 P a is e ) fo r
F u t u re s a n d R s . 1 0 0 / - p e r lo t o r 1 % o n p re m iu m w h ic h
F & O V o lu m e s e ve r is h ig h e r fo r O p t io n s K o ta k M a h i n d r a O p ti o n s C h a r g e s
M in im u m M in im u m
0 . 0 7 % b o t h s id e s In t ra B r o k e r a g e B ro k e r a g e
D a y , 0 . 0 9 % b o t h s idMe so n th l y P r e m i u mI n tr a d a y S e ttl e m e n t P e r L o t P e r L o t
< 2 c ro re s S e t t le m e n t . V o lu m e B ro k e r a g e %B r o k e r a g e %(I n tr a d a y )(S e ttl e m e n t)
0 . 0 4 5 % b o t h s id e s fo r
In t ra D a y 0 . 0 7 3 % b o t h
2 - 5 . 5 c ro re s s id e s fo r S e t t le m e n t U p t o 4 L a c s 2 .5 2.5 100 100
0 . 0 3 6 % b o t h s id e s fo r
In t ra D a y 0 . 0 4 6 % b o t h
5 . 5 - 1 0 c ro re s s id e s fo r S e t t le m e n t 4 L a c s -1 1 L a c s 2 .2 5 2.5 100 100
0 . 0 2 7 % b o t h s id e s fo r
In t ra D a y 0 . 0 4 6 % b o t h
1 0 - 2 5 c ro re s s id e s S e t t le m e n t 1 1 L a c s -2 0 L a c s 1 .8 2.3 100 100
0 . 0 2 3 % b o th s id e s F o r
In t ra D a y , 0 . 0 3 2 % b o t h
> 2 5 c ro re s s id e s fo r S e t t le m e n t . 2 0 L a c s -5 0 L a c s 1 .3 5 2.3 80 100
> 5 0 L ac s 1 .1 5 1.6 70 100

F ee S tructure for D epository S erv ices - S ecurities
F o r N R I A / c O p e n in g C h a r g e s
R s . 3 2 5 0 / - A ve r a g e Q u a rt e r ly
M a in t e n a n c e in S a vi n g A / c R s .
A c c o u n t O p e n in g C h a r g e s N IL 1 0 ,0 0 0 /-
C u s t o d y C h a rg e s
T r a n s a c t io n C h a rg e s
F o r E q u it y S a l e s 0 . 0 4 % o f t h e va lu e o f t h e t ra n s a c t io n
(M in – .2R0/s- fo r N S, DM Lin R2 s5/ - fo r C D) S L
A d d i ti o n a l N S D L D e b t T r a 0.0 n s 4a%cot if o n s – S e l l
t h e v a l u e o f t h e t r a n s a c ti o n . M i n i m u m R s 5 0 0 / - a n d
a ) F o r t r a n s a c t i o n t h r oD ue gb iht (Bs raolek se) r : M a x im u m R s 5 0 0 0 /- p e r T x n
C re d it ( p u r c h a s e ) N IL
b ) F o r tr a n s a c ti o n t h r o u g hD eo bthit e(sr abler os k) e r s : -

C re d it (p u rc h a se ) -
D e b it ( s a le s )
C re d it
P le d g e c r e a t io n
P le d g e c l o s u re If p l e d g e in fa vo u r o f H D F C B a n k , fe e s w il l b e 0 . 0 2 % o f
t h e va lu e o f t h e(Msinh a–r .eR2s 5s/ -), o r0.0 4% o f t h e
P le d g e in vo c a t io n va lu e o f t h e (M
s h ina r e– s. R2 5s/ -).

A n n u a l M a in te n a n c e C h a rg e s
R s . 5 0 0 / - fo r C D S L a n d N S D L a n d R s 1 0 0 0 / - fo r
a c c o u n t s o t h e r t h e n In d ivid u a l/ H U F / N R I a n d T ru s t
R e s id e n t A c c o u n t s A c c o u n t s fo r C D S L
N e w C lie n t s
C lo si n g C h a rg e s
R s. 3 p e r c e rt ific, palut es R. 3s5/ - p e r r e q u (M

e s int – R s
D e m a te r i a l i z a ti o n s C h a r g e s 3 8 / -)
F o r N S D L – A t ,aCc ut urraelsn t )R
ly s.a1 0/ - fo r e ve r y
h u n d re d s e c u rit ie s o r p a r t t h e re o f; o r b )a fla t fe e o f R s .
1 0 / p e r c e r t ific a t e w h ic h e ve r is h ig h e r - -- -- F o r C D S L - A t
R e m a t e r i a l i z a ti o n C h a r g e s a c t u a ls , a s le vie d b y C D S L
C h a r g e s fo r R e q u e s ts to f r e e z e o r d e fr e e z e A c c o u n t
n o n p e r io d ic s t a t e m e n t s a n d o t h e r c o. m m u n ic a t io n – R s
2 5 / - p e r r e q u e s t fo r in la n d a d d r e s s
A d d i ti o n a l A c c o u n t S ta te m e n ts R s . 5 0 0 / - p e r re q u e s t fo r fo r e ig n a d d re s s
N R I C lie n ts u s in g e le c tro n ic c o m m u n ic a tio n (D C N )
N R I C lie n ts n o t u s in g e le c tro n ic c o m m u n ic a tio n
S p e e d -e A d v a n c e
S p e e d -e A M C
M IN IM U M IN IT IA L M A R G IN
A g r e e m e n t S ta m p P a p e r
A d va n c e fe e s o f R s . 2 , 5 0 0 / - , fo r e a c h d e m a t a c c o u n t ,
w h ic h w ill b e a d ju s t e d a g a in s t s e r vic e c h a r g e s .
O n l y D e p o si to r y R e l a ti o n sh i p T h r e s h o ld R s . 1 , 0 0 0 / -

Kotak Securities Advance Fees

Brokerage rates Brokerage Reliance Money
1000 2500 4000
The Advance Brokerage paid+ Service Tax would be For NSE, BSE Cash Segment Intraday , brokerage is
Delivery allowed for reversal for validity period 6 month charged on both the legs
0.35% 0.30% 0.25% Less than 10 Lacs 0.45%
10 Lacs to 25 Lacs 0.40%
25 Lacs to 50 Lacs 0.30%
50 Lacs to 2.5 Cr. 0.20%
More than 2.5 Cr 0.15%
Intra-day Volumes
0.04% 0.036% 0.03% Less than 2 Cr. 0.05%

2 Cr. To 5 Cr. 0.04%
5 Cr. To 10 Cr. 0.03%
10 Cr. To 25 Cr. 0.03%
25 Cr. To 50 Cr. 0.02%

50 Cr. Or More 0.015%
For Futures & Options intraday , no brokerage is

F&O Volumes charged on Second leg
Options Monthly Premium Brokerage Per Lot (In

Turnover Rs.)
Futures (both Sides) – Futures (both Futures (both
0.04% Options – Rs Sides) – 0.036% Sides) – 0.03%
100 Per Lot or 1% on Options - Rs 80 Options - Rs 60
Premium, whichever is Per Lot or 1% on Per Lot or 1%
higher Premium on Premium
whichever higher whichever higher Less than 2 Lacs 100
2 Lacs To 5 Lacs 80
5 Lacs To 10 Lacs 70
25 Lacs Or More 50

G e t K ota k S ec u ritie s S M S A lerts @ R s . 5 0/ - per m on t h

p er c at eg ory
C all & Trad e fre e fo r firs t 2 0 c a lls fo r a c alen dar m on t h.

F ro m th e 21 s t c all, y ou pa y R s . 20/- pe r c all.
Fee Structure for Depository Services - Securities
A c c ou nt O pen in g C harge s N il N il N il
C u s t od y C harge s
Tra ns action C harg e s

A – M a rke t tra d e s
F o r Ins tu c tions give n in P h y s ic a l F orm

25/ -, F– oRr s
Ins t ru c tio ns re c eived t h ro ugh In te rnet / O nline Trad ing
t hrou gh R elianc e S ec u rit ie s Ltd . - R s 12 /-, E x tra
c ha rges for pro c es s ing o f in s t ruc tion s s u bm itt e d on
a ) F o r tra n sa cti o n th ro u g h BDro
ebit
ke (s
r: ales ) t he ex e c ution d ate (ac c ep t ed at C lien t's R
C red it (pu rc has e)
b ) F o r tra n sa cti o n th ro u g h o th e r Db eb
ro kit e(srs:
ales )
C re d i t (p u rc h a se )
B – O ff M a rke t T ra d e s
F o r Ins tu c tions give n in P h y s ic a l F orm

25/ -, F– oRr s
Ins t ru c tio ns re c eived t h ro ugh In te rnet / O nline Trad ing
t hrou gh R elianc e S ec u rit ie s Ltd . - R s 12 /-, E x tra
c ha rges for pro c es s ing o f in s t ruc tion s s u bm itt e d on
D eb it (s ales ) t he ex e c ution d ate (ac c ep t ed at C lien t's R
C red it
R e j e c tio n / fa i l s C h a rg e s
Ple dg e charg e s
P led ge c re at io n R s 25 /- pe r IS IN
P le dge c los u re
P ledg e invoc atio n

Brokerage rates Reliance Money Relaince Money Limit Cards
Delivery Margin
For NSE, BSE Cash Segment Intraday , brokerage is turnover turnover Validity
Delivery charged on both the legs Card Name Value (Rs.) (Lacs) (Lacs (days)
PR-500 500 2 2 365
Less than 10 Lacs 0.45% Bi-Monthly 1000 10 90 60
10 Lacs to 25 Lacs 0.40% Half Yearly 2500 30 270 180
25 Lacs to 50 Lacs 0.30% Annual 5000 5000 70 630 365
50 Lacs to 2.5 Cr. 0.20%

Brokerage of Rs 15 will be charged per executed order for all clients
More than 2.5 Cr 0.15% under limit card module
Intra-day Volumes
Less than 2 Cr. 0.05%

2 Cr. To 5 Cr. 0.04%
5 Cr. To 10 Cr. 0.03%
10 Cr. To 25 Cr. 0.03%
25 Cr. To 50 Cr. 0.02%

50 Cr. Or More 0.015%
For Futures & Options intraday , no brokerage is

F&O Volumes charged on Second leg
Options Monthly Premium Brokerage Per Lot (In

Turnover Rs.)
Less than 2 Lacs 100
2 Lacs To 5 Lacs 80
25 Lacs Or More 50

F e e S tructu re for D e po sitory S e rv ice s - S e curitie s
A c c o u n t O p e n in g C h a r g e s
C u s to d y C h a rg e s
T r a n s a c t io n C h a r g e s
F o r In s t u c t io n s g ive n in P h2y5/s-, Fic oa rl F o rm – R s

In s t r u c t io n s re c e i ve d t h ro u g h In t e r n e t / O n li n e T r a d in g
t h r o u g h R e lia n c e S e c u r it i e s L t d . - R s 1 2 / - , E x t r a
c h a r g e s fo r p r o c e s s in g o f in s t r u c t i o n s s u b m it t e d o n
a ) F o r t r a n s a c t i o n th Dr oeub git h ( sBa rl eo sk )e r : t h e e x e c u t i o n d a t e (a c c e p t e d a t C l ie n t 's R
C r e d i t ( p u rc h a s e )
b ) F o r t r a n s a c t i o n th r o u gDhe bo itt h (es ra lbe rs o) k e r s :

C r e d it (p u r c h a se )
F o r In s t u c t io n s g ive n in P h2y5/s-, Fic oa rl F o rm – R s
In s t r u c t io n s re c e i ve d t h ro u g h In t e r n e t / O n li n e T r a d in g
D e b it ( s a le s ) t h r o u g h R e lia n c e S e c u r it i e s L t d . - R s 1 2 / - , E x t r a
C re d it
P le d g e c re a t io n R s 2 5 / - p e r IS IN
P le d g e c lo s u r e
P le d g e in vo c a t i o n

A nnua l M a inte na nc e C ha rg e s
In d ivid u/aHl U F/ T ru s t s – . R2 s0 0/-, N R I/ F o re ig n
N a t io n a ls –. 1R0s0 /0- , C o rp o ra/t Oe t h e rs – . R s
R e s id e n t A c c o u n t s 1000/-
N e w C lie n t s
C l o si n g C h a r g e s N IL
R e q u e s t fo rm 2– 0/R- asn d E x t ra fo r e a c h c e rt ific a t e –

D e m a te r i a li z a ti o n s C h a rg e s R s 2/-
R s 2 5 / - S u b je c t t o a m in im u m o f R s . 4 0 fo r 1 0 0
s e c u rit ie s p lu s R e g d . P o s t c h a rg e s s u b je c t t o a
R e m a te r i a l i z a ti o n C h a rg e s m in im u m o f R s . 2 5
C h a r g e s fo r R e q u e sts to fre e z e o r d e fre e z e A c c o u n t
P h y s ic a l A c c o u n t S t a t e m e n t s : In d ivid u a l / H U F /
T ru s t/ sC o rp o ra t e s –4 0/R-,sfo r N R/FIo re ig n
A d d i ti o n a l A c c o u n t S ta te m e n ts N a t io n a ls –1 0R0s/0-
N R I C lie nts us ing e le c tro nic c o m m unic a tio n(D C N )
N R I C lie nts no t us ing e le c tro nic c o m m unic a tio n
S pe e d-e A dv a nc e
S pe e d-e A M C
M IN I M U M I N I T I A L M A R G I N
A g re e m e n t S ta m p P a p e r
O n l y D e p o si to ry R e la ti o n sh ip

Brokerage rates IDBI Paisa Builder
Delivery Brokerage Per Leg (%)

If delivery transactions
Up to Rs. 2,00,000 0.50% are squated-off within the
same day/settlement,
Rs. 2,00,001- Rs. 5,00,000 0.45%
Intraday brokerage will be
charged for all such
Rs. 5,00,001 - Rs 10,00,000 0.40% transactions (both sides ).
Rs. 10,00,001 - Rs 20,00,000 0.35%
Rs. 20,00,001 - Rs 40,00,000 0.30%
Rs. 40,00,001 - Rs. 1,00,00,000 0.25%

2 paise per share for Delivery
Rs. 1,00,00,001 - Rs. 5,00,00,000 0.20% subject to an overall minimum of
Rs. 20 per contract, whichever is
higher. Contracts will be separate
for NSE and BSE, nomal segment
Above Rs. 5,00,00,000 0.15% and for Trade to Trade segment.
Intra-day Volumes
Brokerage Per Leg (%)
Up to Rs. 2,00,00,000 0.050%
Rs. 2,00,00,001 - Rs. 4,00,00,000 0.045%
Rs. 4,00,00,001 - Rs. 6,00,00,000 0.040%

Rs. 6,00,00,001 - Rs. 8,00,00,000 0.035% 1 paisa per share for intraday
square off subject to an overall
Rs. 8,00,00,001 - Rs. 10,00,00,000 0.030%
minimum of Rs. 20 per contract,
Above Rs. 10,00,00,000 N/A whichever is higher. Contracts will
be separate for NSE and BSE,
nomal segment and for Trade to
Trade segment.
For Futures intra-day square-

off (a contract or a position
F&O Volumes
being entered and squared
off on the same day),
Brokerage Per Leg (%) brokerage will be charged
Futures Monthly
only for the
first leg of the transaction
and for the second leg which
is in the nature of square-off
Up to Rs. 2,00,00,000 0.048%
Rs. 2,00,00,001 - Rs. 5,00,00,000 0.040%
Rs. 5,00,00,001 - Rs. 10,00,00,000 0.035%
Above Rs. 10,00,00,000 N/A
1% on the premium , subject to a minimum of Rs . 100 per contract . • The turnover in Options would not
be considered for calculating the slabs for the brokerage rebates on futures contracts . • In case of
same day square off in the Options contract, brokerag

Fee Structure for Depository Services - Securities
A c c o u n t O pe n in g C ha rg e s N il
C u s t od y C h a rg e s
Trans a ctio n C ha rg e s
A – M a rk e t tra d e s
R s . 6 pe r tra n s a c tio n d on e th ro u gh ID B Ip a is a b u ilde r.in o r R s . 1 00

p e r in s tru c tio n/s c rip fo r th e D e live ry In s tru c tio n S lip
a ) F o r tra n sa ctio n th ro u g h BDro ebkite r:
(s a le s ) s u b m it te d a t ID B I C ap ita l bran c h e s .
C re d it (p u rc h as e ) N IL
R s . 6 pe r tra n s a c tio n d on e th ro u gh ID B Ip a is a b u ilde r.in o r R s . 1 00
p e r in s truc tio n /s c rip for the D elive ry Ins tru c tion S lip s u bm itte d a t
b ) F o r tra n sa c tio n th ro u g h o th e r Db ro
e bkite(srs:a le s ) ID B I C a pita l b ran c h e s .
C re d i t (p u rc h a se ) N IL
B – O ff M a rk e t T ra d e s
D e b it (s a le s )
C re d it
R e je c ti o n /fa ils C h a rg e s
Ple dg e c harg e s
P le dg e c re a tio n R s . 1 00
P le dg e c lo s u re Rs. 25
P led g e invo c a tio n Rs . 100 O r Rs . 25

Annual M aintenance Charge s
Resident Accounts Free for the first Year. AMC Rs. 350 from year two onwards
New Clients
Closing Cha rge s
Dema teria liza tions Charge s Rs. 3 Amount charged per request (dematerialisation) Rs. 30
Re m a te ria liza tion Cha rge s Rs. 20
Cha rges for Re que sts to fre e ze or de fre eze Account
Additiona l Account Sta te m e nts Rs. 20 per request
NRI Clients using e le ctronic communication(DCN )
NRI Clients not using electronic communication
Spe ed-e Advance
Spe ed-e AM C
MINIMUM INITIAL MARGIN
Agree m e nt Sta m p Pa pe r
Only De pository Re la tionship
DCB Smart Trade

Development credit bank in alliance with India Infoline Financial Services now offers an online
trading account. DCB smart trade will give its customers an opportunity to be their own broker
with complete research support from IIFL which will helps them to make right decision at right
time. Buying and selling is as easy as click of a button. The platform will allow customers to
Trade from the comfort of their home or office either through the internet or the phone. Smart
Trade DCB's online trading terminal has been designed to provide customers with an
investment experience like never before.
Requirements for the Customers:

1.) Saving Account/Current Account (Individual/Proprietorship CA)
 Documentation as per rules and norms laid by RBI.
2.) DEMAT Account
 Documentation as per norms laid down by SEBI and concerned
Depository.
3.) Online Trading Account
 PAN Card
 Address Proof
 Photo Identity Proof
 Bank and Demat Account Proof
 Photographs and Initial self signed cheque
Schedule of Charges:
Life Time Scheme
One-time registration fee Rs.555
Minimum Initial Margin Rs.5000
Trading brokerage (Cash) 0.05%
Delivery brokerage 0.50%
Futures brokerage 0.05%
Options brokerage (on premium) 0.05% or Rs.100 whichever is higher
Minimum Per Share (Trading) 5 Paisa
Minimum Per Share (Delivery) 5 Paisa

Business Model:
DCB India Infoline
Depositor
y
Banking
Account
Client
Broking
As per proposed business model the client will have a saving account with DCB, while his
demat and trading account would be opened and maintained by India Infoline. The client will
have to use the Trading Terminal advance software or browser based platform for trading
which will be provided by India Infoline but will be customized for DCB clients.
Once the client has opened all of the three accounts he will have to access his savings
account at DCB and transfer money as per his requirement to the trading account with India
Infoline so as to trade online.
The client can then start trading online and his Demat account is updated by India Infoline as

per transactions made by him. Suppose that the client has sold some securities then in that
case his Demat account will be debited for the said scrip to that extent and the shares will to
transfer to the pool maintained by India Infoline while his trading account will be credit to the
extent of the selling price of the said securities.
However since the trading and the depository account would be maintained by India Infoline,
any realization or profits made by the client will not be directly reflected in the clients Saving
Account. The client will have to transfer such amount to his saving account if he wishes to and
he would have to place a request of fund payout with India Infoline.
Looking at the needs of the customers we have categorized Smart Trade platform into Two
different models to suit their preference. The said models would be aimed to meet the needs
of both,
– Retail Investors
– Active Investors
Smart Trade offers a browser-based system designed for customers who are Active investors.
A comprehensive account with live streaming quotes and top class features to help you make
instant transactions.
It is also designed for customers who transact occasionally. It is ideal for investors who
believe in the Buy and Hold approach towards investment in equities. A comprehensive
trading service, which allows you to invest in equities and derivatives. Smart Trade trading
platform allows the flexibility of trading on any Internet capable system, with access to both
the NSE and BSE. Smart Trade sophisticated yet easy to use point and click order entry
interface allows reacting more quickly to the markets and making better decisions.
Some Basic Features of Smart Trade:

 Access to both the NSE and BSE on a single screen

 Simple order entry for Equity & Derivatives

 Fully Customizable User friendly display
 Real time order tracking
 Instant Automatic funds transfer with phone banking
 Apply online for IPO
 Apply and Keep Track of Mutual fund investment
 Instant Loading
 Customized Multiple Watch lists
 Hot Key Functions
 Market Depth Window
 Real-time configurable Market Watch with auto save functionality
 Tick by Tick Intraday Charting
 Real-time Research & Trade Execution notification
 Instant trade confirmation
 Online fund transfer facility
 After market hours, orders can also be placed in both the Exchanges
 Access to latest research reports
SmartTrade also provides an EXE based desktop software designed for active traders who
transact frequently to capture favorable short-term price movements. The EXE platform is a
virtual dealer terminal and this program can be downloaded on the client’s computer. The
platform offers active traders the tools they need to make critical decisions with confidence.
SmartTrade is designed and built from the ground up to address the needs of active traders.
SmartTrade makes the most of state-of the-art technology to deliver power, speed and
reliability. Through an easy-to-use interface, users are provided with the same tools and
advantages that the professionals enjoy.
Some Basic Features of Smart Trade EXE platform:

 EXE based desktop software designed for active traders
 Tools and advantages that the professionals enjoy

 Fully Customizable display

 Dynamic Charts with Indicators
 EOD Charts
 Advanced Alert capabilities
 Single screen Interface
 Alerts and reminders
 Similar to a dealer terminal.
Recommendations & Conclusion
Some of Additional features which can be used so as to give DCB SmartTrade an edge over
competition and used as its USP’s:
 The Margin trading may be modified so as to show SmartTrade to be a NO MARGIN

account. For this either the margin can be changed and decreased or we can instead
ask the customers to maintain a bank balance to the extent of the margin required.
 Bonus or Reward points can be given to customers for the amount lying in Trading
account as the money would be lying idle and neither would the customers be earning
any interest on that amount.
 If delivery transactions are squared off within the same day, Intraday Brokerage can be
charged on the same.
 Facility to convert Intraday, Delivery and open positions
 Free trading through Phone (Dial-n-Trade): Customers can have few free Call-n-Trade
for each month
 Have a software designed to work on mobile devices, (BNP Paribas, ICICI has one)
 Have differential brokerage slabs instead of charging customers a flat rate.
1.) Apart from the product development and pricing another area that has to be looked at
after launching Smart Trade will be the product delivery and people who would be

directly or indirectly related to it. To begin with, DCB will only maintain Saving account
of the customer while the Demat and Trading account will be opened and maintained
with India Infoline.
The first step will be to customize account opening form for DCB customers. For this
purpose the old form may be used which can also be clubbed with the Demat account
form so as to have one combined form for opening both the accounts. Product
demonstration can be given across branches so as to attract and familiarize the
customers to the product.
2.) Opening Smart Trade account option must also be given to new customers who open
Savings accounts with DCB or atleast he should be made aware of the product.
Separate welcome Kit and Boucher to be used for customers even though the Demat
and Trading account would be opened and maintained by IIFL.
Pamphlets and/or Posters should be made available in each branch so as to increase
product visibility.
3.) The process of lead generation should be undertaken by RM’s and they should be
given separate targets with respect to SmartTrade. Further efforts can be undertaken
by Branch Manager’s (BM) by making sure the SmartTrade brochure, pamphlets are
readily available at branch level and the branch staff is well aware of the product.
Special attention should be given by branch in case of HNI clients of the bank.
4.) For the convenience of customers there should be a dedicated helpdesk for DCB smart
trade users so as to quickly address and resolve their issues. But the problem with
keeping the separate helpdesk with IIFL is that their RM’s may manipulate DCB
SmartTrade customers and it also cannot be kept with DCB alone as DCB RM’s will not
be able to access much of the information as Trading and Demat account would be
maintained by IIFL.
So a solution should be worked out so as to have dedicated helpdesk which will be
manned by IIFL but a window should be given to DCB to overlook them. This will also
reduce any chances of IIFL RM’s poaching DCB Smart Trade customers.
5.) Since both the Demat and Trading account would be opened with IIFL, DCB’s
dependence on IIFL would increase in terms of Manpower and Knowledge Capital and
any error on their part would affect DCB’s goodwill and creditability directly.
6.) As far as operation is concerned, a centralized account opening and tracking system
must be put in place which will help to keep track of the forms filled at any place and
also have an update on its status. There is no provision for the same at present. And
the account opening is done at Chennai. The bank must also embark resources on
‘Brand Building”. The bank has the potential to grow with E-broking and should
advertise its offerings aggressively. As the bank does not cover all regions in India, it
can opt for advertising channels like Web Hosting and advertise on Social Networking
websites like Tweeter, LinkedIN, Facebook and Orkut amongst others to increase
Brand visibility.
The core benefit of letting IIFL maintain both Trading and Demat account would be mitigation
of risk as upkeep of the accounts would have to be done by IIFL. This will also help save
manpower and capital expenditure for DCB along with reducing any Operational and Audit
related issues. This will also allow DCB to use their resources only for generating new leads
and addressing customer grievances.
Inclusion of additional features like IPO subscription will help to increase customer
engagement.
Exclusive and Dedicated business sourcing channel with IIFL will increase sales and better
business focus with targets at both ends.

Bibliography
Websites:
Development Credit Bank: www.dcbl.com
India Infoline: www.indiainfoline.com, www.5paisa.com
ShareKhan: www.sharekhan.com
HsbcInvestDirect: www.hsbcinvestdirect.co.in
Geojit BNP Paribas: www.geojitbnpparibas.com
Axis Online Trading: www.axisbank.com
Motilal Oswal: www.motilaloswal.com
SBI Online Trading: www.sbicapsec.com
Religare Securities: www.religaresecurities.com
SMC: www.smcindiaonline.com
Books:
Esme Faerber. “All About Stocks-The Easy way to get started”
Reports:
India’s Leading Equity Broking Houses 2009 (Dun and Bradstreet)
ICRA: Equity Brokerage Industry Update.


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Development Credit Bank Ltd.

Revival And Relaunch of Smart Trade Online

UNDER THE GUIDANCE OF

Revival and Renewal of Smart Trade Online Trading Platform 1

Date: 29th June 2010

Revival and Renewal of Smart Trade Online Trading Platform 2

Revival and Renewal of Smart Trade Online Trading Platform 3

Revival and Renewal of Smart Trade Online Trading Platform 4

Revival and Renewal of Smart Trade Online Trading Platform 5

Sr. Particulars Pg. No.

4 Depository & Depository Participant (DP) 17

Revival and Renewal of Smart Trade Online Trading Platform 6

Introduction To Stock Markets and Emergence of Online Trading in India

Revival and Renewal of Smart Trade Online Trading Platform 7

14 stock exchanges are organized as public limited companies, 6 as companies limited by

Revival and Renewal of Smart Trade Online Trading Platform 8

4.) Portfolio consultants

Revival and Renewal of Smart Trade Online Trading Platform 10

Online Stock Trading (OST):

Revival and Renewal of Smart Trade Online Trading Platform 11

ADVANTAGES OF ONLINE TRADING

take place in the account.

1. Provides with the Freedom of Information

2. Provides Control to Investors Money

3. Provides access to the market

Revival and Renewal of Smart Trade Online Trading Platform 13

4. Ensures the best price for investors

5. Online trading offers greater transparency

6. Provides hassle free trading

7. Online trading allows instant trade execution

8. It provides a level playing field

9. Online trading reduces the settlement risk

10. Provides live financial news & analysis

11. Online help desk

12. Instant order trade confirmations

13. Keeps Information Secure

DISADVANTAGES OF ONLINE TRADING

Revival and Renewal of Smart Trade Online Trading Platform 15

Investsmart.in, ICICIdirect.com, Religare, motilaloswal.com and sharekhan.com and many

Revival and Renewal of Smart Trade Online Trading Platform 16

Revival and Renewal of Smart Trade Online Trading Platform 17

National Securities Depository Limited (NSDL):

Central Depository Services Limited (CDSL)

obtained through the DP.

What is a Depository Participant (DP)?

Revival and Renewal of Smart Trade Online Trading Platform 20

Revival and Renewal of Smart Trade Online Trading Platform 21

Development Credit Bank

• Be Open & Transparent – Fair

DCB - A Historical Perspective

Revival and Renewal of Smart Trade Online Trading Platform 23

Close to its roots, yet flying high

A Bank for its people

Online trading platforms

HSBC InvestDirect (Earlier ILFS Investmart)

Revival and Renewal of Smart Trade Online Trading Platform 25

Revival and Renewal of Smart Trade Online Trading Platform 26

 Point and Click order entry

Revival and Renewal of Smart Trade Online Trading Platform 28

 Fully Customizable display

Sharekhan Classic account

price alerts and Instant credit & transfer.

Revival and Renewal of Smart Trade Online Trading Platform 30