A

SUMMER TRAINING PROJECT REPORT

ON
“CUSTOMER PERCEPTION TOWARDS ONLINE TRADING PROCEDURES”
For

“SHAREKHAN LIMITED”

THE PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE DEGREE OF

Post graduation diploma in management

(SESSION: 2018-2020)

SUBMITTED BY: SUBMITTED TO:

Chirag Gupta MR. MAYANK SHARMA

Roll No: BM018152 (Faculty-PGDM)

Mr. RANJIT KUMAR

PGDM 4th TERM.
( Industry Mentor)

INSTITUE OF MANAGEMENT STUDIES

GHAZIABAD

1
 CERTIFICATE OF ORIGINALITY

I hereby declare that this Summer Internship Project is my own work and that, to the best of

my knowledge and belief, it reproduces no material previously published or written that has

been accepted for the award of any other degree of diploma, except where due

acknowledgement has been made in the text.

Chirag Gupta

Enrollment No. BM018152

Date:

23
 CERTIFICATE
This is to certify that Mr. Chirag Gupta student of “ POST GRADUATION DIPLOMA IN MANGEMENT”
at IMS GHAZIABAD has completed the project report on “Customer Perception Towards
Online Trading Procedures” under my guidance.

According to my best knowledge the work is original and has not been submitted anywhere else
for the award of any other degree or diploma.

Mr. MAYANK SHARMA

(IMS. GHAZIABAD)
 DECLARATION

I here by declare that the project entitled “Customer Perception Towards Online Trading

Procedures” is being submitted by me for the purpose of fulfillment for the award of degree

of POST GRADUCATION DIPLOMA IN MANAGEMENT . I have carried out the

original work under the guidance of Mr. RANJIT KUMAR . (Assistant Manager)

Date…….
Place………
Student Signature

4
 ACKNOWLEDGEMENT

I would like to express my deepest gratitude and sincere thanks to my Faculty for her valuable

suggestions, scholarly guidance, constructive criticism, and constant encouragement at every step

of the project.

I express my gratitude to MR. Mayank Sharma – (Faculty of IMS Ghaziabad ) & My Industry

Guide Mr. Ranjit kumar - (Assistant Manager) who has through her vast experience and

knowledge has been able to guide me, both ably and successfully towards the completion of the

project.

Last of all but not the least I would like to acknowledge my gratitude to the respondents

without whom this survey would have been incomplete.

Chirag Gupta

Roll No: BM018152

5
 PREFACE

A project report on CUSTOMER PERCEPTION TOWARDS ONLINE TRADING

PROCEDURES my “Summer Internship Project (SIP)” in my first year project for the partial
fulfilment of PGDM programmed at “IMS, Ghaziabad”.

This report helps us to understand the Stock Market and the investment scenario. This study
would help to develop a conceptual knowledge on the framework and operations undertaken by
this firm in catering individual investors with the needful. The report submitted would be a great
help to those, who dealing in securities market. Further it provides the basic knowledge of
various institutions such as NSE and BSE.

It also helps us build understanding of central ideas and theories of Investment in stock
Market. The general product list and services offered would help in to develop an idea of the work
done by stock broking firm.

6
 INDE
X

SR NO. PAGE
NO.
PART-1 GENERAL 9
PARTICULARS
INFORMATION
1 1.1 INDUSTRY PROFILE 10
1.2 INDUSTRY OVERVIEW 12
1.3 ABOUT WORLD MARKET
1.4 ABOUT INDIAN MARKET
 HISTORY OF INDIAN STOCK MARKET 32
 NSE 34
 BSE 35
EQTY SAGMENT
LIMITED COMPANY
DEPOSITARY
DEPOSITARY PARTICIPANT
1.6 PRACTICAL WORK DONE IN SHAREKHAN
LIMITED
2 2.1 COMPANY PROFILE 19
 INTRODUCTION
 PROFILE OF THE COMPANY
 VISION & MISSION
 SHAREKHAN BELIEF &
EXPECTATIONS
 AWARD & ACHIEVEMENTS
 HERARCHY IN SHAREKHAN
 PRODUCT / SERVICE PROFILE

PART-2 PRIMARY
STUDY
4  OBJECTIVES OF THE STUDY 24
 METHEDOLOGY OF THE STUDY
 BACKGROUND OF THE STUDY

7
  PROBLEM STATEMENT
 IMPORTANCE OF STUDY
5 RESEARCH METHODOLOGY 68
 RESEARCH DESIGN
 SOURCE OF DATA
 DATA COLLECTION METHOD
 POPULATION
 SAMPLING DESIGN
 MODE OF CONTACT
 SAMPLING UNIT
 SAMPLE SIZE
 AREA
6 DATA ANALYSIS & INTERPRETATION 71
7 RESULT & FINDINGS 83
8 LIMITATION OF RESEARCH OF THE STUDY 84
9 CONCLUSION / SUGGESTION 85
10 BIBLIOGRAPHY 87
11 ANNEXURE 91

8
 EXECUTIVE SUMMARY

Conceptually the mechanism of stock market is very simple. People who are exposed
to the same risk come together and agree that if anyone of the person suffers a loss
the other will share the loss and make good to the person who lost.

We also here observe the Customer’s Perception towards Online Trading and its
related procedures.

The Initial part of the project focuses on the sales of types of the products of
the
company, and also focuses on the acquisition of the customer. The job profile is
to create customer, making good relationship with them to have references and
motivating to trade for the company benefit and their profit.

It also enlightens the strategies to acquire the customer base. Further the project
tells us about the profile of the company (SHAREKHAN). It provides knowledge
about the company’s history, mission, vision and customer base and about the
company in detail and management of the company. Also it gives special
emphasis on the selling of products and management of the company.

This is devoted to study the comparative analysis of the competitors and the
SWOT analysis, which tells about the Sharekhan edge over its competitors. This
project leads us towards the job descriptions and difficulties faced by me. The project
throws light upon my finding and analysis about the company and the suggestions for
the company for better performance.

This project will help the people in getting lot of their answers related to
investment options and the ways to analysis the market. The data in the project can
also help the company in making the strategy for potential investor’s.

9
 INTRODUCTION:-

ABOUT SSKI (Sharekhan)

GROUP:-

SSKI group also comprises Institutional broking and Corporate

Finance.
While the Institutional broking division caters to the largest domestic and
foreign institutional investors, the corporate finance division focuses on niche areas
such as infrastructure, telecom and media. SSKI holds a sizeable portion of the
market in each of these segments.

As the forerunner of investment research in the Indian market, we provide

the
best research coverage amongst broking houses in India. Our research team is rated
as one of the best in the country. Voted four times as the Top Domestic
Brokerage House by Asia money Survey, SSKI is consistently ranked amongst the
top domestic brokerage houses in India.

To cut a long story short, Sharekhan is an equities focused organization

tracing
its lineage to SSKI (S.S.KANTILAL&ISHWARLAL INVESTMENTS
&SECURITIES PVT.LTD.), a veteran equities solutions company with over 8 decades
of experience in the Indian stock markets.

If you experience our language, presentation style, content or for that matter the
online
trading facility, you'll find a common thread; one that helps you make informed
decisions and simplifies investing in stocks. The common thread of
empowerment is what Sharekhan's all about!

Share khan is also about focus. Sharekhan does not claim expertise in
too many things. Sharekhan's expertise lies in stocks and that's what he talks about
with authority. So when he says that investing in stocks should not be confused with
trading in stocks or a portfolio-based strategy is better than betting on a single
horse, it is

10
something that is spoken with years of focused learning and experience in the
stock markets. And these beliefs are reflected in everything Sharekhan does for you!

To sum up, Sharekhan brings to you a user- friendly online trading

facility,
coupled with a wealth of content that will help you stalk the right
shares.

Those of you who feel comfortable dealing with a human being and
would rather visit a brick-and-mortar outlet than talk to a PC, you'd be glad to
know that Sharekhan offers you the facility to visit (or talk to) any of our share shops
across the country.

11
GOVERNING
BOARD

SHAREHOLDER
S

SSKI - 55.5% HSBC – 18.5%

(Morakhia INTEL – 10.5%
family) CARLYES –
15.5%

12
 BOARD OF DIRECTORS

DESIGNATIO NAM
N E
CE MR. JAIDEEP ARORA
O
CF MR. SHANKAR
O VALIVA
CT MR. KETAN
O PARIAH

CUSTOMERSERVICE MR. GEETA

RAMESH
REPRESENTATIVE
(CSR)
SALES AND MARKETING MR. AJAI
BATHIJA
YOUR FRIENDLY NEIGHBOURHOOD STOCK
BROKER:-

Sharekhan, India’s leading stockbroker is the retail arm of SSKI,

an organization with over eighty eight years of stock market experience with more than
180 share shops in over 90 cities, and a presence on internet through
www.sharekhan.com , India’s premier online trading destination, it reach out to
customers like no one else.
Share khan offers your trade execution facilities on the BSE and the NSE,
for
cash as well as derivatives, depository services and most importantly,
investment advice tempered by 88 years of research and broking experience. To
ensure that your

13
 trading experience with share khan is fast, secure and hassle free, we offer a suite
of products and services, providing you with multi-channel access to the stock
markets.

BROKING…
PERSONALIZED:-

If you prefer the assurance and reliability of trading through a broker, you can use
our
network of 30 branches and 157 business partner outlets in over 80 cities to
trade in equities as well as derivatives. We will help you with the investment
process, give you advice based on extensive research and provide you with
relevant and updated information to help you make informed investment decisions.

TRADE
ANYWHERE:-
Freedom@www.sharekhan.co
m

However, if you prefer the convenience of trading from wherever you are, you can
get
yourself a Classic trading account and enjoy the freedom that comes with it. You
can now place orders even after the trading hours, and the orders are queued up
to be executed as soon as the market opens. Sharekhan.com, the winner of
several prestigious awards, has been the most preferred destination for online
trading ever since its launch.

PRODUCTS AND SERVICES OFFERED BY

SHAREKHAN:-

APPLET BASED TRADING

SYSTEM:-

 Equity and Derivatives trading from a single

screen.
 CustomizedMarket watch with streaming Cash and F&O rates live on
the screen. Instant Order placement and trading confirmations on same screen.

14
  Dynamic order and trade
book.
 Tools to test your ISP connectivity to share khan
servers.
Dial’n’Trade:
-
You can now use our ‘Dial’n’Trade’ back up option. Sharekhan team will
help you place a trade after a security check right over the phone! Your account
statement will get updated with this information automatically. This service is
available both in Hindi and English. You can even use this service to place After-
Market Hour Orders.
FEATURES OF
Dial’n’Trade:-
 Dedicated Toll-Free number for order placements.
 Automatic fund transfer with phone banking.
 Simple and secure IVR based system for
authentication.
 No waiting time. Enter your TPIN to be transferred to our
telebrokers. Trusted, professional advice from our telebrokers.
 After-hours order placement facility between 8 am&9:30 am.
 Reliable services wherever you are.

IPO
Online:-
At the click of your mouse you can select the public issue of your
choice
(fixed price or book building) and subscribe to it online! All you need to do is to
select the number of shares / money that you wish to invest; share khan will take
care of your application process, making payments etc.

SHAREKHAN
RESEARCH:-

Receive high performance trading recommendations from share khan. Yes,

Sharekhan boast of strike rates as high as 65-70% in booking recommendations
in the money. Our first rule is not to lose money and the second to make some. If
you did not believe making money was a scientific process and there was a
method in the madness share khan have broken the myth and with consistency
there are daily
15
 reports like Share khan Eagle Eye, Derivative Info Kit and Share khan
Investor’s Eye are being sent to the customers.

TRADING IN COMMODITY- FUTURES:-

Share khan provides you the facility to trade in commodities (bullion: gold / silver
and agricultural commodities) through Share khan Commodities Pvt. Ltd – a
wholly owned subsidiary of its parent SSKI. Share khan is the member of
two major commodity exchanges and offers trading facilities on both these
exchanges:-
Multi Commodity
 National Exchange
Commodity of India Exchange
and Derivative Ltd (, Mumbai.
(NCDEX),
Mumbai.
INVESTMENT IDEAS:-
For investment, the application of the bottom-up approach
of
investing with a dear focus on stock picking has resulted in investment ideas
that have withstood the storm to deliver returns to patient investors. Effective
money management with appropriate risk rewards, the relentless use of stop
losses, and our clear-cut focus on the importance of timing the market
accurately has contributed to this success. Sharekhan investment philosophy is
“given the clients risk profile, maximize performance by adhering to a disciplined
investment approach backed by quality research”.

Key elements of our investment philosophy and approach

are:  Bottom-up stock selection.
 In-depth, independent fundamental research.
 Selecting high-quality companies with sustainable competitive
advantages.  Disciplined valuation approach applying multiple
valuation measures.
 Long-term vision, resulting in low portfolio turnover.

16
 PORTFOLIO MANAGEMENT:

SSKI follow a multi disciplined approach incorporating quantitative analysis (use

of
models and statistical analysis), fundamental analysis (industry and company
analysis, market and economic trends) and technical analysis (buying and selling
patterns of stocks). The common attributes that can be found across all our equity
portfolios are:
High-quality
securities
Holdings widely diversified among industry
sectors
Stocks with adequate market capitalizations and free
float
Stock concentration as per client risk profile but generally to be kept at
manageable levels.

SSKI investment process involves three distinct

steps:
1.
Screening
2.
Research
3. Model portfolio
construction.

RESEARCH
TEAM:-
All this is made possible by a team of dedicated analysts who have years
of working experience in the industries that they track, and a proven track record
in using their knowledge of the investment science to deliver results.

DEPOSITORY SERVICES:-
Share khan offers you the convenience of a broker-DP. It will help you meet your
pay-in obligations on time thereby reducing the possibility of auctions.
We understand your need for flexibility therefore; we accept late instructions without
any
17
 extra charge. We execute the instruction immediately on receiving it. You can
view your updated account statement on Internet.
Share khan Depository Services offers Demat services to individual and
corporate investors. We have a team of professionals and the latest
technological expertise dedicated exclusively to our Demat department. You can
avail of Demat \ Remat; Repurchase, pledge, Transmission facilities at our
branch and business partner’s outlets.

STATE OF
AFFAIRS:-
 3 – 5 years
back…
 Retail stock-broking was a highly fragmented industry; there were
over 2000 brokers and 10000 sub-brokers in India.
 Basic services were enough to satisfy customers.
 Online trading was perceived as new fad.
 Present Scenario:-
 Consolidation phase – Big brokers taking over the business
of small to medium sized brokers.
 Online trading is fast gaining high level of acceptance
from customers all over the country.
 Clients are demanding investment advice backed by a solid
and comprehensive research.
 Future Outlook:-
 25 big broking houses, 3 crore
investors.
 Investment in high-end technology infrastructure and people will be a
key factor in delivering world class service.
 Brand association will be very important for sustaining and
expanding business.
 Multi-channel access to the stock market (Offices + Internet + IVR-
based Phone + mobile Devices) will be a necessity.

18
About the
Industry:
INTRODUCTION TO STOCK
MARKET

STOCK
MARKET
A stock market is a public market for the trading of companystock and derivatives at
an agreed price; these are securities listed on a stock exchange as well as those
only traded privately. The stock market is one of the most important sources for
companies to raise money. This allows businesses to be publicly traded, or raise
additional capital for expansion by selling shares of ownership of the company in a
public market.
The size of the world stock market was estimated at about $36.6 trillion US at
the beginning of October 2008. The total world derivatives market has been
estimated at about $791 trillion face or nominal value, 11 times the size of the entire
world economy.
Stock exchanges are the perfect type of market for securities whether of
government and semi-govt bodies or other public bodies as also for shares and
debentures issued by the joint-stock companies. In the stock market, purchases and
sales of shares are affected in conditions of free competition. Government securities
are traded outside the trading ring in the form of over the counter sales or purchase.
The bargains that are struck in the trading ring by the members of the stock
exchanges re at the fairest prices determined by the basic laws of supply and demand.

DEFINITION OF STOCK
EXCHANGE:-
“Stock exchange means anybody or individuals whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of
buying, selling or dealing in securities.”
HISTORY OF STOCK EXCHANGE:-
th
The only stock exchanges operating in the 19 century were those of Mumbai setup
in 1875 and Ahmadabad set up in 1894. These were organized as voluntary non-
profit-making associations of brokers to regulate and protect their interests. Before the
control on securities under the constitution in 1950, it was a state subject
and the 19
Bombaysecurities contracts (control) act of 1925 used to regulate trading in
securities. Under this act, the Mumbai stock exchange was recognized in 1927 and
Ahmadabad in 1937. During the war boom, a number of stock exchanges were
organized. Soon after it became a central subject, central legislation was proposed and
a committee headed by Mr. A.D.Gorwala went into the bill for securities regulation. On
the basis of the basis of the committee’s recommendations and public discussion,
the securities contract (regulation) act became law in 1956.

20
 LITERATURE
REVIEW:

In simple words, stock is a share in the ownership of a company. Holding a

company's stock means that you are one of the many owners (shareholders) of a
company and you have a claim to everything the company owns. As an owner, you
are entitled to your share of the company's earnings as well as any voting rights
attached to the stock ("Stocks basics: what,").
.
Earlier days a stock was represented by a stock certificate which was a piece of
paper that was proof of your ownership. But in today’s computer age, your stock is
stored electronically by your broker. This is done to make the shares easier to
trade. In the past, when a person wanted to sell his shares that person
physically took the certificates down to the broker. But now stocks can be purchased
with a click of mouse. Most stocks are traded on exchanges where both buyers and
sellers meet and decide on a price. The purpose of a stock exchange is to facilitate
the exchange of securities between buyers and sellers, and reducing the risks of
investing. Some exchanges are physical locations where transactions are carried out
on a trading floor. The other type of exchange is virtual, composed of a network of
computers where trades are made electronically ("Stocks basics: how,”).
1.4 Online and Offline Trading
Traditionally stock trading was done through stock brokers personally or
through telephones. As number of people trading in stock market increased
enormously in last few years, some issues like location constrains, busy phone lines,
miss communication etc. started growing in stock broker offices. Then Information
technology helped stock brokers to solve those problems by Online Stock
Trading method ("Online stock brokers,”).
Online stock trading is an internet based stock trading facility where Investor can
trade shares through a website without any manual intervention from the broker.
It also provides investors with rich, interactive information in real time including
market updates, investment research and robust analysis. Advantages and
disadvantages of online trading are shown in (Table 3).

21
Still some people like offline stock trading where the customer calls the broker
to enquire about the stock prices. Then the broker asks some personal details to verify
his identity. After that customer can order the amount and the price at which he
wants to buy a particular stock. The broker places the order on behalf of the customer.
Similarly, the customer can also sell the shares in offline mode. And the customer can
monitor all these transactions by logging into his account. The main advantage in
offline trading is time-saving.
1.5 Demat Account and Trading Account

Physical share certificates are converted into electronic format is known

as
“Dematerialization or Demat”. Currently almost 99 percent of shares traded in
Indian stock exchanges are in Demat mode. You have to open a Demat account if you
want to buy or sell stocks, just like a bank account where actual money is replaced by
shares. Demat account allows you to buy, sell and transact shares without the
endless paperwork and delays.
Similarly, a trading account works as an intermediary between the savings account
and Demat account. When you want to buy shares, first the money is transferred from
your savings account to trading account. After that required amount of shares are
purchased and finally shares are stored in electronic form in the Demat account. It
works just in opposite way during the time of selling shares.
1.6 Depository and Depository Participants

A depository is an entity which holds securities of investors in electronic form at

the request of the investors through a registered Depository participant. Currently
there are two depositories in India they are:

Depository provides a safe and convenient way to hold securities and enables
instant transfer of securities. It eliminates the risk associated with physical certificates
such as bad delivery, fake securities, Delays, thefts etc. It also provides services
such as:
22
Dematerialization, Rematerialisation, transfer of securities and change of
beneficial ownership.
Depository Participant (DP) acts as intermediaries between the depository and
the investors. The relationship between the DPs and the depository is governed
by an agreement made between the two under the Depositories Act. Hence a
depository participant acts as a custodian of your securities held in dematerialized form
and carries out your instruction to transfer the same. Currently, CDSL has 553 DPs
whereas NSDL has only 293 DPs ("Depository participant,”).

23
 OBJECTIVES OF THE STUDY

1 To analyze the changes in trading after the exchange shifted from outcry

to online trading
system.

2) To analyze and conclude what is customers’ perception towards

online trading, its usefulness and its ease in availability.

3) It is to study the functions of SHAREKHAN and through various

departments.

4) To know the online screen based trading system adopted by SHAREKHAN

and about its communication facilities. The appropriate configuration to set
the network, which would link the SHAREKHAN to individual / members.

24
 RESEARCH METHODOLOGY

3.1 The Marketing Research Process:

A Research Design is the framework or plan for a study which is used as a guide in collecting and
analyzing the data collected. It is the blue print that is followed in completing the study. The
basic objective of research cannot be attained without a proper research design. It specifies the
methods and procedures for acquiring the information needed to conduct the research
effectively. It is the overall operational pattern of the project that stipulates what information
needs to be collected, from which sources and by what methods.
As MARKETING research is a systemic and formalized process, it follows a certain sequence of
research action. The marketing process has the following steps:
 Formulating the problems

 Exploration of the situation

 Developing objectives of the research

 Designing an effective research plan

 Data collection techniques

 Analysis f the collected data

 Evaluating the data and preparing a research report

Primary Research:-

Primary data are the data that are collected to solve a problem or take advantage of any
opportunities on which a decision is depending. These data are basically observed and recorded
by the researcher for the first time.

Research Design:-

For this study a survey research was adopted with the help of primary data. For getting primary
data the research tool was a structured questionnaire.

Sample Size: -

The sample for the purpose of study was the 50 customers.

Sample Design: -

A sample design not only seeks to determine the size of sample and also the sampling unit. The
sample for the purpose of study was the customer.

Sample Techniques: -

The techniques adopted of selection of sampling of sample for study was simple random
sampling method.

Questionnaire Design: -

The author had a set of ideas and expected result based on those ideas from the questionnaire.
For this reason questions were:

 Related to the field of study.

 Related to the research hypothesis.
 Questions must bear significance to concerned area of research.
 Questions must seek information unattainable from other sources.
 The must be short as possible but comprehensive enough to allow the author to derive his
requirement of his research.
 Questions were well laid out.
3.2: Data Collection:

After the research methodology, research problem in MARKETING has been identified and
selected; the next step is to gather the requisite data. There are two types of data collection
method – primary data and secondary data.

 Primary data collection method for observing working of company and approaching
various persons of the MARKETING Department and asking them questions and notes
written down while observing and assisting MARKETING persons in their work.

In the Indian context, the quality of internet connections also comes into play
 Secondary data collection method was used by referring to company records, files, and
for determining the reasons for the lack in response. Here, we have connectivity
journals, broachers various websites, books, magazines, journals and daily newspapers
problems and there are instances of clients panicking, as they could not execute
for collecting information regarding project under study.
their trades. Many times at particularly at places other than Mumbai, sudden
stoppage of electricity results in disconnection.

Long supply
chain:

3In case of conventional or offline, trading the chain is small as the clients
directly interact with the brokers. However, in case of internet trading the chain is quite
long as it involves a client, an internet service provider, server, stock exchange,
depositor and a broker and a problem can rise up at any stage of the chain,
breaking down the entire system.

A Costly
Affair:

Other than the technological hassles, there is an element of cost as well. For
active traders, doing online trading he has to remain connected all the time and the
cost of connecting through dial up can work out to Rs 3500 per month which is over
and above
66
the brokerage and other service charges. This is the reason offering online
trading facility

Allows the clients to use the conventional system as well in order to retain them. A
part
from a dealing room, most broking houses have a separate room for the clients.
Where the stock exchanges terminals are kept for their use.

Low Investor
Confidence:

Investor confidence in the country has been badly hurt due to the escalating
IndoPak
tensions. This sentiment has got reflected in the stock markets, which have gone
down. The global recession has also dampened the mood of the stock market.
Although, the US economy is showing signs of recovery, but any tangible outcome is
yet to be felt.

67
 DATA
COLLECTION:-

PRIMARY DATA as the decision of the investor keeps on changing from time to
time.
Collection of primary data is reliable as it avoids self – report bias and cannot
record what cannot be said.
Due to time and financial constraint Marketing Research is done through
Sampling. Sample offers various benefits as:
1) It saves time.
2) It helps in cutting
expense.

SECONDARY SOURCES The data had been collected through Books, Journals
and
Websites
.
3.3.3 SAMPLE DESIGN
3.3.3.1 POPULATION:50people
3.3.3.2 SAMPLE SIZE: The sample size is 30
persons.

3.3.3.3 Sampling
Method:-
Judgment sampling and Convenience Sampling
Technique
Judgment sampling is mainly done on the basis of the knowledge of the
respondent about stock market and Convenience Sampling is the technique in which
the researcher just simply picks up the respondents on the basis of their availability.

3.3.4 Methods of Data

Collection:-

3.3.4.1 Instrument for data

collection:
The study to be conducted is about the Derivative Market in Shakarpur,
NirmaanVihar and Laxmi Nagar and members of Share Khan so the method of data
collection used is “SURVEY METHOD” with the help of Questionnaire.

68
3.3.4.2 Drafting of a questionnaire
:
To frame questionnaire or schedule, we have at first to decide regarding
various questions to be incorporated. This decision of the selection of questions
depends upon the purpose of enquiry. In this regard, precaution should be adopted to
avoid irrelevant or unnecessary questions.

3.3.5
LIMITATIONS
1) For performing these king of research large data base is required. The data
collected for this study is not sufficient to analyze the investment pattern of retail
investors in India.

2) There may be many variables which influences the result but this analysis
reveals only few variables.

3) There can be some deviations in the data as the human psychology changes
from
time to
time.

4) The feedback we got may not be correct as the respondent might have filled in
the information with no interest or in hurry.

5) Scientific research on the part of research is also

required.

6) Accuracy level may be effected when data is subjected to

weighing.

7) Time was the biggest constraint as these studies cannot be completed with
accuracy
in two
month.

8) Understanding the psychology of human is not the cup of every one tea so, might
be some interpretations go wrong.

69
9) Some respondents might have taken the question in different sense which
can change the data collected.

10) Cost was also the constraint as collection of Primary data required huge amount
of
spending
.

70
ANALYSIS& INTERPRETATION
There are certain questions which have been asked to the people for the completion
of this project and find the result matching to the Objective.

1. PEOPLES WHO INVEST AND DON’T INVEST

NO OF RESPONDENTS PERSENTAGE

YES 21 70%

NO 9 30%

PEOPLES WHO INVEST OR DONT INVEST

80
70
% 70

6
0
5
0
40
30
% 30
20 21
9
10

0
TIME CONSTRAINT

NO NO OF RESPONDENTS

PERSENTAGE Graph
1

Interpretation:This shows that though the slowdown has affected many

people financially and mentally but then also there is large portion of population who
invest their
71
money in one or the other financial instrument in hope of getting some
handsome return. The people who don’t invest can be the client of the company as
these people are the fresh market for the company and the challenge for the marketers
to find out the reasons behind their decision and pull them towards the growing
investment sector.

2. ONLINE OR OFFLINE
TRADING

NO OF RESPONDENTS PERCENTAGE

YES 21 70%

NO 9 30%

ONLINE OR OFFLINE
TRADING
80

60 70
70%
50
40
30
30 %

20 9
21
1
0
0
YE N
S O
NO OF RESPONDENTS

PERCENTAGE Graph
2

72
Interpretation:This chart shows that 70% of people are trading online means
maximum number of people are preferring online trading. And people who are not
aware of this online trading system they are doing offline trading.30% of people
are doing offline trading. It shows that now a days people are preferring online trading
mostly.

3. PREFRENCES OF TRADING

NO OF PERCENTAGE
TIME CONSTRAINT RESPONDENTS 7 23%
FINANCIAL 6 20%
CONSTRAINT LACK OF 5 17%
KNOWLEDGE 12 40%
VOLATILE MARKET

PREFRENCE OF
TRADING
45 40
40 %
35
30 23%
25
20% 20
15 17%
10 7 1
6
2
5 5
0

TIME CONSTRAINT FINANCIAL LACK OF KNOWLEDGE VOLATILE

MARKET CONSTRAINT

NO OF RESPONDENTS

PERCENTAGE Graph
3

73
Interpretation: This chart answers the why part of not investing the money. The
company should concentrate on these reasons and try to solve the issues like
imparting knowledge about the various investment options and the share market.
Those having financial constraint can also be converted to the clients as the company
should provide them the options which are in the client reach of investment. The people
with time constraint and financially sound can be given an option of Portfolio
Management Services.

4 REASONS FOR ONLINE TRADING

NO OF
RESPONDENT PERCENTAGE
PRIVACY S8 26%
USER FRIENDLY & TIME SAVING 10 34%
CONVINIENCE 6 20%
ALL OF THE ABOVE 6 20%

REASONS FOR ONLINE TRADING

4
0 34
3
%
5
30

25 20%
26%
2
0 20%
1
5 1
10 0 6
85
6
0
PRIVACY USER FRIENDLY & TIME CONVINIENCE ALL OF THE
SAVING ABOVE

Column Series
2 2
Graph
4

74
Interpretation:This chart shows that 26% people thinks about their privacy issues
so
online trading seems better for them. 34% people thinks that this online trading is
user friendly and time saving that makes more interest of peple.20% of people are
trading according to their convenience n not having more interest in dis market.
And 20% people are looks all the above things for online trading.

5.PREFERENCE OF
INVESTMENT

NO OF PERCENTAGE
RESPONDENTS
SHARE 1 46
MARKET 4 %
MUTUL 5 17
FUND %
DERIVATIVES 4 13
%
FUTURES & 7 24
OPTIONS %

75
 PREFERENCE OF
INVESTMENT
50 46
45 %
40
35
30
24
25
%
20 17%
15 14
10 5 13%
4
5 7
0
SHARE MARKET MUTUL DERIVATIVES FUTURES &
FUND OPTIONS
NO OF PERCENTAG
RESPONDENTS E
Graph
5

Interpretation:In this chart we can see that the preference for Share Market is more
but the preference for Insurance is not less. Insurance sector is an upcoming sector.
The company should see this as an opportunity and should take a step
towards diversification to Insurance sector. Mutual Fund is also a limited risky platform
to invest in with good return and the company should step forward to tell more
about this instrument.

6.AWARENESS ABOUT SHARE

KHAN

NO OF RESPONDENTS PERCENTAGE

YES 24 80%

NO 6 20%

76
 AWARENESS ABOUT SHARE
KHAN
90

70 80
80%
60
50
40
30 24
20
20%
10 6
0
YES

NO NO OF RESPONDENTS

PERCENTAGE Graph
6

Interpretation: Here the charts shows that 80% people are aware of the share
khan limited because of their great service and their easy way of doing trade
people are taking more interest in that firm. And 20% people are not so aware about
share khan because they are having their D-mat account in other brokerage firm.
Share khan is spreading its name by providing good services to their clients.

7.PREFERENCE OF ONLINE TRADING IN OTHER BROKRAGE

FIRM

NO OF PERSENTAGE
SHARE KHAN RESPONDENTS 8 26%
ICICI DIRECT 6 20%
INDIA BULLS 4 13%
KOTAK SECURITIES 5 16%
ANY OTHER 7 25%

77
 PREFERENCE OF ONLINE TRADING IN
OTHER BROKRAGE FIRM

30
26% 25
25 %

16
1 20 % 16%
5
20%
10 8 5
4
5 7
6
0
SHARE KHAN ICICI DIRECT INDIA BULLS KOTAK SECURITIES ANY
OTHER
NO OF RESPONDENTS

PERSENTAGE Graph
7
Interpretation:This chart shows that in which broking firm people prefer the most
to
trade or
invest.
Here 26% of people are prefer to invest in share khan. This number is higher in
the chart because share khan is providing various products for their clients. 20% people
are going for icici direct. 13% of people are investing in india bulls.16% of people
are preferring in kotak securities and 25% of people are investing in other broking firm.

8.DIFFRENTIATON FACTORES FROM OTHER

COMPANY

NO OF PERCENTAGE
BROKRAGE RESPONDENTS 3 10%
RESEARCH REPORT 5 16%
DIAL UP TRADE FACILITY 5 16%
VALUE GUIDE 4 14%
EXPOSURE 4 14%
ACCOUNT OPENING CHARGES 9 30%

78
 DIFFRENTIATON FACTORES FROM
OTHER COMPANY

35 30
30 %
25
20 16% 16%
15 14% 14%
10%
10
5 5 5 4 4
0 93
BROKRAGE RESEARCH DIAL UP TRADE VALUE GUIDE ACCOUNT
REPORT OPENING
EXPOSURE FACILITY CHARGES

NO OF RESPONDENTS

PERCENTAGE Graph
8

Interpretation:This data shows the capacity of the investors to take risk. Those who
are ready to take high risk seek high return on their investment from the market. These
data will help the company to target the customer with right kind of product offering to
them and categorize the client under different heads. This data will also cross check
certain other data in the research whether client is true to the questionnaire or not.

9.FREQUENCY OF
TRADING
NO OF PERCENTAGE
RESPONDENTS
DAIEL 9 30
Y %
WEEKLY 5 16
%
MONTHL 1 34
Y 0 %
YEARL 6 20
Y %

79
 FREQUENCY OF
TRADING
4
0 34
35 %

2 30
30%
5 20
20 %

10
16%
15 6
9
10
0 5
DAIELY WEEKLY MONTHLY YEARLY
5
NO OF PERCENTAG
RESPONDENTS E
Graph
9
Interpretation:This charts shows that 30% of people are doing trade in intraday
basis
because they are having more intrerst in volatile market and want to make
money faster.16% of people are doing tarde on weekly basis. 34% of people are doing
trade on monthly basis because they don’t want more volatile market.20% of people
are doing trade on yearly basis. Maximum of them are doing it for long term
investment because they are not able to give much time to the share market. Some
people are using the share market as long term investment they are looking for
the long term and more returns from the market.

10.YOUR MONTHLY INCOME

CATEGORY

NO OF PERCENTAGE
0-15000 RESPONDENTS 10 33%
15000 - 35000 8 27%
35000 - 60000 7 23%
60000 & 5 17%
ABOVE
80
 YOUR MONTHLY INCOME
CATEGORY
35

3
33% 27
0 %
2 23
5 %
2 17
0 %
15
1
0 10 8 7
5
5
0
0-15000 15000 - 35000 - 60000 60000 &
35000 ABOVE
NO OF PERCENTAG
RESPONDENTS E
Graph
10

Interpretation: Charts shows the proportion of the people that are falling in
particular
group of income category.33% of people are falling in 0 – 15000 income
category.
27% of people are falling between 15000 – 35000. 23% of people are falling in
the category between 35000 – 60000. 17% of people are falling in the category of
60000 and above category.

11.EXPECTED EARNING FROM INVESTMENTS

NO OF PERCENTAGE
UPTO 10% RESPONDENTS 15 50%
UPTO 25% 7 23%
UPTO 50% 6 20%
ABOVE 50% 2 70%

81
 EXPECTED EARNING FROM
INVESTMENTS
80
70
70 %
60

4 50
50%
0
30 23% 20
20 15 %
7
10 2
0 6
UPTO 10% UPTO UPTO 50% ABOVE 50%
25%
NO OF PERCENTAG
RESPONDENTS E
Graph 11

Interpretation:This charts shows that proportion of the expected earnings by

the investors. Here 50% of the investers are expected earnings upto 10%.
23% of people are expecting returns upto 25%.
20% of people are expecting returns upto 50%.
7% of people are expecting returns above 50%.
In share market expecting higher returns is not reliable because share market is
so volatile so the changes in the market is high n there is higher rate of risk. So
expecting higher rate of return is not so good

82
Findings from the
Survey
After the analysis followings are the main points which come out by the
survey:
 Still there are people who do not want to go for the derivatives market
because they think it is risky and hard to understand and also due to financial
constraints.
 Mostly Professional and post graduates are the participant of the
derivatives market.
 Derivatives need
Respondents stillcontinuously
prefer to goinvolvement of the
for the equity investors.
market. For investment
purpose people go for the equity market.
 Majority of investors invest for short term period.
 Normally near about 20% part of the income people invest in various
sectors.
 Still people think that market is more risk prone and opt for government
securities during recession period and during boom phase they go for share
market..
 Main reasons for not using derivatives reveals from the survey are that
people have less knowledge and they are unable to understand the derivative
market concept.
 Main purpose to invest in derivatives market is to hedge them from the
future risk.
 Main factor which people consider before investing money in market is
condition in the market. Other reasons are also there like profit of the company,
growth of the company, previous return on the stock, capital return etc

83
OBSERVATIONS AND
FINDINGS

 Fluctuations more in secondary market than any other

market.

 There are more speculators than

investors.

 Information plays a vital role in the secondary

market.

 Previously rolling settlement is T+5 days, now it changed to T+2 days and
further it will be changing to T+1 day.

According to Mr. Manish Sukhla of MotilalOswal Securities, many clients

who registered themselves for online trading ended up using the offline system.

 It was also observed that many broking houses offering internet trading
allow clients to use their conventional system as well just ensure that they do not
loose them and this instead of offering e-broking services they becomes
service
providers.
 The number of players is increasing at a steady rate and today there are over
a dozen of brokerage houses who have opted to offer net trading to
their customers and prominent among them are SHARE KHAN, India
bulls, kotakstreet, MotilalOswal securities and geojit.

 The Bombay stock exchange sensex zoomed past the 6900 barrier for the
first time in history to achieve new all time high of 6864.62 intra day trade and
ended at a historic close of 6849.48 points.

 SEBI reconstruct the retail investors limit i.e., Rs.50000 to

Rs.100000.

84
 Conclusio
n

 Things have changed for the better with the SHAREKHAN going on-line
coupled with endeavor to stream line the whole trading system, things have
changed dramatically over the last 3 to 4 years. New and advanced
technologies have breached geographical and cultural barriers, and have
brought the countrywide market to doorstep. BROKER’S have suddenly
been thrown to intense competition from their counter parts across the
country.
 The Regional Stock Exchanges have their own advantages like being nearer
to the retail investors and to let the Broker’s perish would be detrimental to
stock market system there is no brokerage firms with in India with national reach.
 In the present scenario and to compete the BROKER’S would require
sound infrastructure and trading as per international standards. The
concepts of business have changed and today this has become service to client
or to provide the best possible service to client or to engage into new
business from the regional center to the metro centers and to impart liquidity
introduction of on-line trading is necessary.
 The introduction of on-line trading would influence in the investors resulting in
an increase in the business of the exchange. It has helped the brokers
handling a vast amount of transactions and this can be an efficient trading,
delivering, settlement system with adequate protection to investors. The
trading of SHAREKHAN of the first day was Fs. 1.8 crores.
 The BROKER’S has a greater scope than compared to the earlier times
because of invention of online trading.
 The concept of business has changed today this is a service oriental
industry hence the survival would require them to provide the best possible
service to the client.
 The existing system can be further improved by introduction of stop loss
facility that will help to reduce investor’s losses.

85
 SUGGESTIONS
:

 I suggest the exchange authorities to take steps to educate Investors

about their rights and duties. I suggest to the exchange authorities to
increase the investors’ confidences.
 I suggest the exchange authorities to be vigilant to curb wide fluctuations
of prices.
The speculative pressures are responsible for the wide changes in the
price, not attracting the genuine investors to the greater extent towards the market.
 Genuine investors are not at all interested in the speculative gain as
their investment is based on the future profits, therefore the authorities
of the exchange should be more vigilant in imposing to curb the
speculative of securities.
 Necessary steps should be taken by the exchange to deal with the
situations arising due to break down in online trading.

86
 BIBILOGRAPH
Y

BOOKS:

Investment V.K.Bhall
management a
Preethising
Investment h
V.A.Avadhan
management i
V.A.Avadhan
 Security Analysis and Portfolio Management i
M.Y.Kha
 Marketing n
Secondaryofmarket
Financial
& itsServices I.M.
functions
 Indian Financial System Pandey

WEBSITES
:

 www.Share
Khan.com 
www.bseindia.com
 www.sebi.com
www.moneycontrol.com


www.economictimes.com 
www.nseindia.com
 www.reuters.com

87
Report
Chirag Gupta
Digital signature

A total of 535 fragments were analysed. As a result 18 fragments (3.4%) were found in
other documents. In the document preview below the fragments are marked light blue
and clickable.

Cross reference
documents
Following list of found documents is grouped by document titles and ordered by found
fragements. With a mouseclick on "x fragments" the relevant fragments in the
document are colored blueand the window scrolls to the first location. Click on " x
fragments" again resets the special marks.

4 fragments were found in a text with the title: "A Review on Data Mining
Applications to the Performance of Stock Marketing", located on:
http://www.ijcaonline.org/journal/number3/pxc387187.pdf

4 fragments were found in a text with the title: "Rayleigh Distribution

Definition", located on:
http://cetdelhi.nic.in/Documents2010/Page_No_1-60__1.pdf
http://cf12plus.careerforum.in/medical/pdf/jipmer09_prospectus.pdf?q=jipmer
http://www.jipmer.edu/Prospectus_MBBS_February_2010.pdf
http://www.publicationsdivision.nic.in/others/India_2008.pdf
http://wrmin.nic.in/writereaddata/linkimages/outcome_2007-082551316589.pdf
http://www.mcxindia.com/aboutus/downloads/FCR/FCR_Act.pdf
http://www.nifm.ac.in/files/Fundamental_Technical_Analysis.pdf
http://www.pdf-library.net/free-ebooks/consumer/consumer_resource_handbook.pdf
http://www.consumeraction.gov/pdfs/Securities.pdf

3 fragments were found in a text with the title: "Stock market", located
on: http://en.wikipedia.org/wiki/Stock_market

1 fragment found in a text with the title: "Delegation and Control in Health Care
Systems : Vol. 1: Delegation and Control in 22 OECD Health Care Systems. A
Data Handbook", located on:
http://tuprints.ulb.tu-darmstadt.de/1135/1/HealthSystemDataHandbook.pdf

1 fragment found in a text with the title: "A Study of Individual Investors in the
Capital Market in Kerala", located on:
http://dyuthi.cusat.ac.in/xmlui/bitstream/handle/purl/1629/A%20study%20of
%20individual %20investors%20in%20the%20capital%20market%20in%20kerala%2c
%20Chap-3.PDF?sequence=3

88
ANNEXURES
:

QUESTIONNAIRE:-
Sir/Ma’am,
This questionnaire is the part of our summer internship programme. It is only
for educational purpose. The information provided by you will be kept secure
and confidential.

NAME-
CONTACT-
GENDER-
OCCUPATION-
EDUCATIONAL QUALIFICATION-
 Undergraduate
 Graduate
 Post graduate
 Professional Degree

Q1. Are you investing in share market or

not?
(i) Yes (ii)
No

Q2. Which type of trading you

prefer?
(i) Online (ii) Offline (iii) Not
Applicable

Q3. On what basis you decide your preference of

trading
(i) Time
constraints
(ii) Financial
constraints (iii) Lack of
knowledge (iv) Volatile
market

89
Q4. If you prefer online Trading then what are the reasons for
it? (i) Privacy (ii) User friendly & Time Saving
(iii) Convenience (IV) All The Above

Q5. In which segment you prefer the most to invest

in?
(i) Equity shares
(ii) Mutual funds
(iii) Derivatives
(iv) Futures and
options

Q6. Have you heard about Sharekhan?

(i) Yes (ii) No

Q7. Which Brokerage Firm do you prefer for Online

Trading?
(i) ICICI Direct (ii) Sharekhan (iii) India
bulls
(iv) Kotak Securities (v) 5paisa (vi) Any
other__________

Q8. What differentiates your Share Trading Company from

others?
(i)Brokerag (ii) Research (iii) Dial up trade
e Report facility
(iv)Value guide (v) (vi) Account opening
Exposure charges

Q9. How often do you

trade?
(i) Daily (ii) Weekly (iii) Monthly (iv)
Yearly

Q10. In which category does your income fall? (Per month in

Rs) i) 0-15000 ii) 15000 – 35000 iii) 35000 – 60000 iv) Above
60000
Q11. What percentage of your earnings do you invest in share
trading?
(i)Up to 10% (ii) Up to 25% (iii) Up to 50% (iv) Above 50%

90