INTRODUCTION

The internet’s arrival and its subsequent popularity in India have made online
trading in India, which is about the online purchase and sales of shares, one of the
extremely popular means of trading. Both beginner and experienced traders and
investors in India are milking this opportunity by trading online in futures and
options, stocks and currencies worldwide. Such opportunities are in the form of
reduced brokerage and commissions, better broking services etc.
Constructive uses of new technologies have always contributed positively
towards improving human life standards and the economy of a country .Such as
online trading, in equity markets it increased trade volumes and number of investors
trading in stock markets. Online trading was started in India in the year 1995, where a
new system is formed which allows the investor to trade through an internet site
where the major financial products and services like equities, mutual funds, life
insurance, general insurance, loans, share trading, commodities trading, portfolio
management and financial planning etc. are directly available for the customer.
There is also stock option trading in India. An option is a financial agreement,
with a predetermined maturity period and price, for the purchase or sales of the
underlying products. Stock options enable the protection of dealers and control of
their stocks, in addition to generation of higher earnings.
For carrying out online trading in India, you have to open an online demat and
trading account, followed with online trading software. For this purpose, you would
require a Depository Participant (DP), selection of which should be preceded by
extensive research on various determinants.
This is time consuming and inefficient. This imposed limits on trading
volumes and efficiency. In order to provide efficiency, liquidity, and transparency
NSE and BSE introduced nationwide online fully automated “SCREEN BASED
TRADING SYSTEM”.
Online trading in India is the internet based investment activity that involves
no direct involvement of the broker. There are many leading online trading portals in
India along with the online trading platforms of the biggest stock houses like the
National stock exchange and the Bombay stock exchange. The total portion of
online share trading India has been found to have grown from just 3 per cent of the
total turnover in 2003-04 to 16 per cent in 2006-07.

1
 The investor has to register with an online trading portal and get into an
agreement with the firm to trade in different securities following the terms and
conditions listed down on the agreement. The order processing is done in correct
timings as the servers of the online trading portal are connected to the stock
exchanges and designated banks all around the clock. They can also get updates on
the trading and check the current status of their orders either through e-mail or
through the interface. Brokerages also provide research content on their websites,
such that the clients can take their own decisions on stocks before investing.
In spite of many private stock houses at present involved in online trading in
India, the NSE (National Stock Exchange) are among the largest exchanges. They
handle huge daily trading volumes, supporting large amounts of data traffic and
processing a countrywide network. The automated online systems used for trading by
the national stock exchange and the Bombay stock exchange are the NIBIS or NSE’s
Internet based System and NEAT for the national stock exchange and the BSE online
trading system or BOLT for the Bombay stock exchange.
Thanks to the ever-rising number of people owning computers along with a
readily available internet access, online stock trading in India is simplified manifolds.
This is because investments can now be easily controlled by traders themselves as a
result of extensive availability of all types of information on the web.

2
 NEED FOR THE STUDY
The need for the study market is to daily watch change in market prices and
the change effect to observe increasing points and at what time it reduces. How
customers are investing in market taking risk and at other market situations.
It is to analyses the daily market situation according to timely changing
conditions and effects in market by economic, political and other influences. Increase
in investment by customers.
What factors influencing the customers increase more in market that helps for
growth of our economy and what makes to affect future changes in market and to
control the market through proper regulatory mechanism implementing policies and
timely change in decisions not to make collapse of market by protecting interests of
investors timely accordingly to situation helps to bring or keeps the market at safe
condition to appropriate level.
And what makes investors seek more about future risk added investment at a
better stage.

3
 SCOPE OF THE STUDY
This study mainly focuses on the trends going on along with the technologies
emerging into the era of Trading in stock exchanges.

The market is flooded with offers of different kinds. The consumers advance or
delay their purchase based on available Sales Promotions or on their expectations of
such promotional offers in the near future. Literature points out that Sales Promotion
can have a damaging effect on Brand Equity shares in the long run. This study will
help the marketers identify the dimensions of Consumer Based Brand Equity shares
which are affected by Sales Promotions and specifically what type of Sales
Promotions, whether Price Promotion or Premium Promotion is suitable for a given
market. This knowledge might be useful for marketers in judiciously implementing
marketing plans, especially Sales Promotions, both in the long as well as short term
perspective.

4
 OBJECTIVES OF THE STUDY
 It is to analyze the changes in trading after the exchange shifted from
outcry to online trading system.
 It is to study the functions of BONANZA through various departments.
 To know the online screen based trading system adopted by BONANZA
and about its communication facilities. The appropriate configuration to
set the network, which would link the BONANZA to individual /
members.
 To know about the latest and future development in the stock exchange
trading system.
 To highlight the trends and significant developments pertaining to the
Indian stock market.
 To evaluate the possibility of predicting the price of a particular share by
observing the behaviour of other share price series belonging either to the
same industry or to different industries.

5
 RESEARCH METHODOLOGY
The method of survey chosen for this project is survey through questionnaire.
This will be helpful to find the ONLINE TRADING NSE level of Bonanza product in
the city. The report contains a list of tablet, pie charts, bar charts, and diagrams. It also
contains bibliography.’ The data collected as part of the study entitled and it is mainly
from two sources.
 PRIMARY
 SECONDARY
Primary data:
A survey with 100 respondents has been conducted in the Visakhapatnam
market with a questionnaire consisting of 9 questions on information regarding:
preference of online trading, offline trading ., was prepared and made use of. The
primary data was also collected from the customers by the Performa given by
the company. The primary data was also collected from the customers.
Secondary data
Information has been collected through internets referred books and also from
the website of Bonanza Portfolio Ltd

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 LIMITATIONS OF THE STUDY
 Time allocated for the study for the study is 45 days which is not
sufficient for in-depth study
 The study was only limited to the Visakhapatnam unit of BONANZA
PORTFOLIO Ltd.
 The answers given by the respondents highly depend on the mood
and interest and thus the accuracy fluctuates sometimes.
 The time was a big constraint. The duration of 8 Weeks was a pretty
short time to conduct such survey. There is large number of customers
to the BONANZA. But, due to lack of time the survey had to be
restricted only.
 Sometimes, the respondent did not co-operate while answering the
questions.

7
 INDUSTRY PROFILE
History of stock exchange in India
Stock Markets
Stock Market is a market where the trading of company stock, both listed
securities and unlisted takes place. It is different from stock exchange because it
includes all the national stock exchanges of the country. For example, we use the
term, "the stock market was up today" or "the stock market bubble."
Stock Exchanges
Stock Exchanges are an organized marketplace, either corporation or mutual
organization, where members of the organization gather to trade company stocks or
other securities. The members may act either as agents for their customers, or as
principals for their own accounts.
Stock exchanges also facilitates for the issue and redemption of securities and
other financial instruments including the payment of income and dividends. The
record keeping is central but trade is linked to such physical place because modern
markets are computerized. The trade on an exchange is only by members and stock
broker do have a seat on the exchange.
The BSE & NSE
Most of the trading in the Indian stock market takes place on its two stock
exchanges: the Bombay Stock Exchange (BSE) and the National Stock Exchange
(NSE). The BSE has been in existence since 1875. The NSE, on the other hand, was
founded in 1992 and started trading in 1994. However, both exchanges follow the
same trading mechanism, trading hours, settlement process, etc. At the last count, the
BSE had about 4,700 listed firms, whereas the rival NSE had about 1,200. Out of all
the listed firms on the BSE, only about 500 firms constitute more than 90% of its
market capitalization; the rest of the crowd consists of highly illiquid shares.
Almost all the significant firms of India are listed on both the exchanges. NSE
enjoys a dominant share in spot trading, with about 70% of the market share, as of
2009, and almost a complete monopoly in derivatives trading, with about a 98% share
in this market, also as of 2009. Both exchanges compete for the order flow that leads
to reduced costs, market efficiency and innovation. The presence of arbitrageurs

8
keeps the prices on the two stock exchanges within a very tight range. (To learn more,
see The Birth Of Stock Exchanges.)
History of Indian Stock Market
Indian stock market marks to be one of the oldest stock market in Asia. It
dates back to the close of 18th century when the East India Company used to transact
loan securities. In the 1830s, trading on corporate stocks and shares in Bank and
Cotton presses took place in Bombay. Though the trading was broad but the brokers
were hardly half dozen during 1840 and 1850.
An informal group of 22 stockbrokers began trading under a banyan tree
opposite the Town Hall of Bombay from the mid-1850s, each investing a (then)
princely amount of Rupee 1. This banyan tree still stands in the Horniman Circle
Park, Mumbai. In 1860, the exchange flourished with 60 brokers. In fact the 'Share
Mania' in India began with the American Civil War broke and the cotton supply from
the US to Europe stopped. Further the brokers increased to 250. The informal group
of stockbrokers organized themselves as the The Native Share and Stockbrokers
Association which, in 1875, was formally organized as the Bombay Stock Exchange
(BSE).
BSE was shifted to an old building near the Town Hall. In 1928, the plot of
land on which the BSE building now stands (at the intersection of Dalal Street,
Bombay Samachar Marg and Hammam Street in downtown Mumbai) was acquired,
and a building was constructed and occupied in 1930.
Premchand Roychand was a leading stockbroker of that time, and he assisted
in setting out traditions, conventions, and procedures for the trading of stocks at
Bombay Stock Exchange and they are still being followed.
Several stock broking firms in Mumbai were family run enterprises, and were
named after the heads of the family.
The following is the list of some of the initial members of the exchange, and
who are still running their respective business:
 D.S. Prabhudas & Company (now known as DSP, and a joint venture partner
with Merrill Lynch)
 Jamnadas Morarjee (now known as JM)
 Champaklal Devidas (now called Cifco Finance)
 Brijmohan Laxminarayan

9
 In 1956, the Government of India recognized the Bombay Stock Exchange as
the first stock exchange in the country under the Securities Contracts (Regulation)
Act.
The most decisive period in the history of the BSE took place after 1992. In
the aftermath of a major scandal with market manipulation involving a BSE member
named Harshad Mehta, BSE responded to calls for reform with intransigence. The foot-
dragging by the BSE helped radicalise the position of the government, which
encouraged the creation of the National Stock Exchange (NSE), which created an
electronic marketplace. NSE started trading on 4 November 1994. Within less than a
year, NSE turnover exceeded the BSE. BSE rapidly automated, but it never caught up
with NSE spot market turnover. The second strategic failure at BSE came in the
following two years. NSE embarked on the launch of equity derivatives trading. BSE
responded by political effort, with a friendly SEBI chairman (D. R. Mehta) aimed at
blocking equity derivatives trading. The BSE and D. R. Mehta succeeded in delaying
the onset of equity derivatives trading by roughly five years. But this trading, and the
accompanying shift of the spot market to rolling settlement, did come along in 2000
and 2001 - helped by another major scandal at BSE involving the then President
Mr.Anand Rathi. NSE scored nearly 100% market share in the runaway success of
equity derivatives trading, thus consigning BSE into clearly second place. Today,
NSE has roughly 66% of equity spot turnover and roughly 100% of equity derivatives
turnover.
Stock Exchange provides a trading platform, where buyers and sellers can
meet to transact in securities.
Capital Market
The capital market is divided into two segments a) Primary Market b) Secondary
Market
a) Primary Market: Most companies are usually started privately by their
promoters. However the promoters‘ capital and the borrowed capital from banks
or financial institutions might not be sufficient for running the business over the
long term. That is when corporate and the government looks at the primary
market to raise long term funds by issuing securities such as debt or equity.
These securities may be issued at face value, at premium or at discount. Let
us understand the meaning of these terms:

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  Face Value: Face value is the original cost of the security as shown in the
certificate/instrument. Most equity shares have a face value of Rs. 1, Rs. 5, Rs.
10 or Rs. 100 and do not have much bearing on the actual market price of the
stock. When issuing securities, they may be offered at a discount or at a
premium.
 Premium: When the security is offered at a price higher than the face value it
is called a premium
 Discount: When the security is offered at a price lower than the face value it
is called a discount.
b) Secondary Market: The secondary market provides liquidity to the investors in
the primary market. Today we would not invest in any instrument if there was no
medium to liquidate our position. The secondary markets provide an efficient
platform for trading of those securities initially offered in the primary market. Also
those investors who have applied for shares in an IPO may or may not get allotment.
If they don‘t then they can always buy the shares (sometimes at a discount or at a
premium) in the secondary market.
Trading in the secondary market is done through stock exchange. The Stock
exchange is a place where the buyers and sellers meet to trade in shares in an
organized manner. The stock exchange performs the following functions:
 Provide trading platform to investors and provide liquidity
 Facilitate Listing of securities
 Registers members - Stock Brokers, sub brokers □ Make and enforce by-laws
 Manage risk in securities transactions
 Provides Indices
There are two leading stock exchanges in India which help us trade are:
i. National Stock Exchange: National Stock Exchange incorporated in the year
1992 provides trading in the equity as well as debt market. Maximum volumes
take place on NSE and hence enjoy leadership position in the country today
ii. Bombay Stock Exchange: BSE on the other hand was set up in the year 1875
and is the oldest stock exchange in Asia. It has evolved in to its present status
as the premier stock exchange. At BSE you will find some scripts listed that
are not available on NSE. Also BSE has the largest number of scripts which
are listed.

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The National Stock Exchange (NSE)
NSEis India's leading stock exchange covering
various cities and towns across the country. NSE was set up
by leading institutions to provide a modern, fully automated
screen-based trading system with national reach. The Exchange has brought about
unparalleled transparency, speed & efficiency, safety and market integrity. NSE has
played a catalytic role in reforming the Indian securities market in terms of
microstructure, market practices and trading volumes. The market today uses state-of-
art information technology to provide an efficient and transparent trading, clearing
and settlement mechanism, and has witnessed several innovations in products &
services viz. demutualisation of stock exchange governance, screen based trading,
compression of settlement cycles, dematerialisation and electronic transfer of
securities, securities lending and borrowing, professionalisation of trading members,
fine-tuned risk management systems, emergence of clearing corporations to assume
counterparty risks, market of debt and derivative instruments and intensive use of
information technology.
History
The National Stock Exchange of India Limited (NSE) is the leading stock
exchange of India, located in Mumbai. NSE was established in 1992 as the first
demutualized electronic exchange in the country. NSE was the first exchange in the
country to provide a modern, fully automated screen-based electronic trading system
which offered easy trading facility to the investors spread across the length and
breadth of the country.
NSE has a market capitalization of more than US$1.65 trillion, making it the
world’s 12th-largest stock exchange as of 23 January 2015. NSE's flagship index,
the CNX Nifty, the 50 stock index, is used extensively by investors in India and
around the world as a barometer of the Indian capital markets.
NSE was set up by a group of leading Indian financial institutions at the behest
of the government of India to bring transparency to the Indian capital market. Based
on the recommendations laid out by the government committee, NSE has been
established with a diversified shareholding comprising domestic and global investors.
The key domestic investors include Life Insurance Corporation of India, State Bank
of India, IFCI Limited IDFC Limited and Stock Holding Corporation of India

12
Limited. And the key global investors are Gagil FDI Limited, GS Strategic
Investments Limited, SAIF II SE Investments Mauritius Limited, Aranda Investments
(Mauritius) Pte Limited and PI Opportunities Fund I.
NSE offers trading, clearing and settlement services in equity, equity
derivatives, debt and currency derivatives segments. It is the first exchange in India to
introduce electronic trading facility thus connecting together the investor base of the
entire country. NSE has 2500 VSATs and 3000 leased lines spread over more than
2000 cities across India.
The exchange was incorporated in 1992 as a tax-paying company and was
recognized as a stock exchange in 1993 under the Securities Contracts (Regulation)
Act, 1956, when P. V. Narasimha Rao was the Prime Minister of India
and Manmohan Singh was the Finance Minister. NSE commenced operations in the
Wholesale Debt Market (WDM) segment in June 1994. The capital market (equities)
segment of the NSE commenced operations in November 1994, while operations in
the derivatives segment commenced in June 2000.
Milestones
NSE was promoted by leading Financial Institutions at the behest of the Government
of India and was incorporated in November 1992 as a tax-paying company unlike
other stock exchanges in the country.
Mar-2014 Commencement of trading of Nifty Futures on OSE
Feb-2014 NSE Launches NVIX Futures – Futures on India VIX index Jan-
2014 NSE Launches ‘NSE Bond Futures II’
Oct-2007 NSE launches derivatives on Nifty Midcap 50
Jun-2007 NSE launches derivatives on Nifty Next 50 & Nifty 100 Mar-
2007 NSE, CRISIL announce launch of IndiaBondWatch.com Jan-2007
Launch of NSE – CNBC TV 18 media centre
Jun-2005 Launch of Futures & options in BANK Nifty Index
Mar-2005 India Innovation Award' by EMPI Business School, New Delhi Oct-
2002 Launch of NSE Government Securities Index
May-2002 NSE wins the Wharton-Infosys Business Transformation Award in the
Organization- wide Transformation category
Jan-2002 Launch of Exchange Traded Funds (ETFs)

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Products
Equities
 Equities
 Indices
 Mutual Funds
 Exchange Traded Funds
 Initial Public Offerings
 Security Lending and Borrowing Scheme
Derivatives
 Equity Derivatives
 Currency Derivatives
 Interest Rate Futures
Debt
 Debt Market
 Corporate Bonds
The Bombay stock exchange (BSE)
The Bombay Stock Exchange (BSE) is an Indian stock exchange located at
Dalal Street, Kala Ghoda, Mumbai, Maharashtra, India. Established in 1875, the BSE
is Asia’s first stock exchange and the world's fastest stock exchange with a median
trade speed of 6 microseconds. The BSE is the world's 11th largest stock
exchange with an overall market capitalization of $1.7 trillion as of January 23,
2015. More than 5500 companies are publicly listed on the BSE.
History
The Bombay is the oldest exchange in Asia. Its history dates back to 1855,
when five stockbrokers would gather under banyan trees in front of Mumbai's Town
Hall. The location of these meetings changed many times to accommodate an
increasing number of brokers. The group eventually moved to Dalal Street in 1874
and in became an official organization known as "The Native Share & Stock Brokers
Association" in 1875.
On August 31, 1957, the BSE became the first stock exchange to be
recognized by the Indian Government under the Securities Contracts Regulation Act.
In 1980, the exchange moved to the Phiroze Jeejeebhoy Towers at Dalal Street, Fort

14
area. In 1986, it developed the BSE SENSEX index, giving the BSE a means to
measure the overall performance of the exchange. In 2000, the BSE used this index to
open its derivatives market, trading SENSEX futures contracts. The development of
SENSEX options along with equity derivatives followed in 2001 and 2002, expanding
the BSE's trading platform.
Historically an open outcry floor trading exchange, the Bombay Stock
Exchange switched to an electronic trading system developed by CMC Ltd. in 1995.
It took the exchange only 50 days to make this transition. This automated, screen-
based trading platform called BSE On-Line Trading (BOLT) had a capacity of 8
million orders per day. The BSE has also introduced a centralized exchange-based
internet trading system, BSEWEBx.co.in to enable investors anywhere in the world to
trade on the BSE platform.
The BSE is also a Partner Exchange of the United Nations Sustainable Stock
Exchange initiative, joining in September 2012.
Milestones
 1 February 2002 Two way fungibility for ADR/GDR
 15 February 2002 Negotiated Dealing System (NDS) established
 20 May 2005 The BSE (Corporatisation and Demutualisation) Scheme, 2005
 8 August 2005 Incorporation of Bombay Stock Exchange Limited
 12 August 2005 Certificate of Commencement of Business
 19 August 2005 BSE became a Corporate Entity
 2 January 2007 Launch of Unified Corporate Bond Reporting platform: Indian
Corporate Debt Market (ICDM)
 7 March 2007 Singapore Exchange Limited entered into an agreement to
invest in a 5% stake in BSE
 16 May 2007 Appointed Date under the Scheme i.e. Date on which
Corporatisation and Demutualisation was achieved. Notified by SEBI in the
Official Gazette on 29 June 2007
 28 January 2014 Launch of Interest Rate Futures (BSE –IRF)
 11 February 2014 Launch of Institutional Trading Platform on BSE SME
 20 March 2014 BSE Launches New Debt Segment
 4 April 2014 BSE SME exceeds USD 1 billion market capitalisation

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  7 April 2014 Launch of Equity Segment on BOLT Plus with Median
Response Time of 200 (µs)
 27 May 2014 BSE felicitated at The Asian Banker Summit 2014
 26 September 2014 BSE inks MoU with BNY Mellon
 22 October 2014 BSE inks strategic partnership with YES BANK
 28 November 2014 BSE listed cos market cap crosses landmark 100 lakh
crore
Products
Equity
BSE Equities data is available in Real-time and as 1 minute snapshots Following data
is available in the feed for Equities.
Level 1 Data contains the following information:
 BSE Security Code
 Open, High, Low and Last Traded Price
 Best Bid / Offer with Volume
 Traded Volume
Level 2 Data contains the following information in addition to the level 1 data:
 Weighted Average Price
 Upper Circuit Limit and Lower Circuit Limit
 Turnover Value, Number of Trades, Trend
 Total Buy Quantity and Total Sell Quantity
Derivatives
BSE provides trading opportunities for Equity and Index Derivatives. The data
related to the trading of these instruments is available in the same format as the
Equities data.BSE currently has Index and Equity Futures contracts, Index and Equity
Monthly Options contracts and Index and Equity Weekly Options contracts.For the
purpose of popularising the Derivatives trading on BSE, currently Derivatives data is
being provided free of charge and without any reporting obligations for Real-time
distributors.
Indices
BSE Indices are available through the feed in Real-time and as 1 minute
snapshots. All indices that are calculated on real-time are being provided in this feed.
Open, High, Low and Latest Value of the Indices are provided in the feed.

16
List of stock exchange in India
In India we have Bombay stock exchange, National stock exchange and the
rest are Regional stock exchanges.
Name of the Stock Year of
S.No Headquarters No. of Listing
Exchange Formation

1 Bombay Stock Exchange Mumbai, India 1875 5112

2 National Stock Exchange Mumbai, India 1992 1640

Ahmedabad Stock Ahmedabad,

3 Exchange 1894 -
India
Bangalore Stock
4 Exchange Bangalore, India 1963 595

Bhubaneshwar Stock Bhubaneshwar,

5 1989 -
Exchange India

6 Calcutta Stock Exchange Kolkata, India 1908 3500

7 Cochin Stock Exchange Kerala, India 1978 350

Coimbatore Stock Coimbatore,

8 1991 170
Exchange India
New Delhi,
9 Delhi Stock Exchange 1947 3000
India
Guwahati Stock
10 Guwahati, India 1983 290
Exchange
Hyderabad Stock Hyderabad,
11 1941 -
Exchange India

12 Jaipur Stock Exchange Jaipur, India 1989 740

13 Ludhiana Stock India

Exchange
Madhya Pradesh Stock Madhya Pradesh
14 1928 343
Exchange India

15 Madras Stock Exchange Chennai, India 1937 1785

16 Magadh Stock Exchange Patna, India 1986 -

Mangalore Stock
17 Karnataka, India 1984 -
Exchange
18 OTC Exchange Of India Mumbai, India 1990 115

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International Exchange
The India International Exchange (INX) is India's first international stock
exchange, opened in 2017.[1][2] It is located at the International Financial Services Centre
(IFSC), GIFT City in Gujarat. It is a wholly owned subsidiary of the Bombay Stock
Exchange (BSE).[3] The INX will be initially headed by V. Balasubramanian with other
staff from the BSE.[3]

It was inaugurated on 9 January 2017 by Indian prime

minister Narendra Modi, the trading operations were scheduled to begin on 16
January 2017. It was claimed to be the world’s most advanced technological platform
with a turn-around time of 4 micro seconds which operates 22 hours a day & six days
a week.[1] These timings facilitate international investors and Non-Resident Indians to
trade from anywhere across the globe at their preferred timings.

Following the International trading timings, this unique stock exchange will
start when trading at Japanese stock exchange starts, and will end when US stock
exchange stops, from sunrise to sunset.

This is a list of active stock exchanges in the Commonwealth of

Nations (Full Members). The Commonwealth of Nations features member-states
located on all major continents and represents almost one-third of the
Earth's population. Some states have signed agreements establishing multi-state
regional stock exchanges while other larger states may hold more than one, or even
specialised stock exchange(s).

Exchange Location Founded Listings Link

Antigua and
Barbuda

Eastern Caribbean
(Basseterre, Saint
Securities ECSE
Kitts)
Exchange (ECSE)

Australia

APTEX Sydney 2008

18
 Australian
Securities Sydney 1987 asx
Exchange

National Stock
Exchange of Sydney 1937 nsxa
Australia

Sydney Stock
Sydney 1997 ssx
Exchange

Commonwealth of
The Bahamas

Bahamas Securities
Nassau BISX
Exchange

Bangladesh

Chittagong Stock
Chittagong 1995 CSE
Exchange

Dhaka Stock
Dhaka 1954 750 DSE
Exchange

Chittagong Tea
Chittagong 1949
Auction

Barbados

Barbados Stock
Bridgetown 1987 BSE
Exchange

Botswana

Botswana Stock
Gaborone 1989 BSE
Exchange

Cameroon

20
 Douala Stock
Douala 2001 DSE
Exchange

Canada

Canadian Securities
Toronto 2004 CSE
Exchange

Montreal Exchange Montréal 1832 MX

Nasdaq
NASDAQ Canada New York City 2000
Canada

Toronto Stock
Toronto 1861 TSX
Exchange

TSX Venture
Calgary 2001 TSX
Exchange

Aequitas Neo Toronto 2015 Aequitas Neo

Cyprus

Cyprus Stock
Nicosia 1996 CSE
Exchange

Commonwealth of
Dominica

Eastern Caribbean
(Basseterre, Saint
Securities ECSE
Kitts)
Exchange (ECSE)

Fiji

South Pacific Stock

Suva 1971
Exchange

21
 Ghana

Ghana Stock
Accra GSE
Exchange

Grenada

Eastern Caribbean
(Basseterre, Saint
Securities ECSE
Kitts)
Exchange (ECSE)

Co-Operative
Republic of
Guyana

Guyana Stock
Georgetown 2003 GASCI
Exchange

India

Ahmedabad Stock
Ahmedabad 1894 2000
Exchange

Bangalore Stock Bangalore

Bengaluru 1963 600
Exchange Exchange

Bhubaneswar Stock Bhubaneshwar

Bhubaneswar 1989 45
Exchange Exchange

Bombay Stock Mumbai (formerly Bombay

1875 5,034
Exchange Bombay) Exchange

Calcutta Stock Kolkata (formerly Calcutta

1830 3500+
Exchange Calcutta) Exchange

Coimbatore Stock Coimbatore

Coimbatore 1978
Exchange Exchange

Delhi Stock New Delhi 1947 3000 Delhi Exchange

Exchange

22
 Association

Guwahati Stock
Guwahati 1983
Exchange

Hyderabad Stock Hyderabad

Hyderabad 1943 900
Exchange Exchange

India
India International
Gujarat 2017 International
Exchange
Exchange

Inter-connected
Inter-connected
Stock Exchange of Mumbai 1998
Exchange
India

Jaipur Stock Jaipur

Jaipur 1989 750
Exchange Exchange

Ludhiana Stock
Ludhiana
Exchange Ludhiana 1983
Exchange
Association

Madhya
Madhya Pradesh
Indore 1919 Pradesh
Stock Exchange
Exchange

Madras Stock Chennai (formerly Madras

1920 1500
Exchange Madras) Exchange

Mangalore Stock
Mangaluru 1984
Exchange

MCX Stock
Mumbai 2008
Exchange

Meerut Stock
Meerut 1956
Exchange

National Stock
Mumbai 1992 1398 National
Exchange of India
Exchange of

23
 India

OTC Exchange of
Mumbai 1990
India

Pune Stock Pune

Pune 1982
Exchange Exchange

Saurashtra
Saurashtra Kutch
Rajkot 1989 Kutch
Stock Exchange
Exchange

United Stock
Mumbai 2010
Exchange of India

UP Stock
UP Stock Exchange Kanpur 1982 850
Exchange

Vadodara Stock Vadodara

Vadodara/Baroda 1990
Exchange Exchange

Jamaica

Jamaica Stock
Kingston 1968 JSE
Exchange

Kenya

Nairobi Securities
Nairobi 1954 64 NSE
Exchange

Lesotho

Maseru Securities
Maseru 2016 MSM
Exchange

Malaysia

Bursa Malaysia Kuala Lumpur MYX

24
 Malaysia
Derivatives Kuala Lumpur
Exchange

MESDAQ Kuala Lumpur

Malta

Malta Stock
Valletta 1992 MSE
Exchange

New Zealand

New Zealand
Wellington 2002
Exchange

Nigeria

Nigerian Stock
Lagos 1960
Exchange

Pakistan

Pakistan Stock
Karachi 2016 PSX
Exchange

Karachi Stock
Karachi 1947 579
Exchange

Lahore Stock
Lahore 1970
Exchange

Islamabad Stock
Islamabad 1989
Exchange

Papua New
Guinea

25
Port Moresby Stock
Port Moresby 1999
Exchange

Saint Kitts and

Nevis

Eastern Caribbean
Basseterre, Saint
Securities ECSE
Kitts
Exchange

Saint Lucia

Eastern Caribbean
(Basseterre, Saint
Securities ECSE
Kitts)
Exchange (ECSE)

Saint Vincent
and the
Grenadines

Eastern Caribbean
(Basseterre, Saint
Securities ECSE
Kitts)
Exchange (ECSE)

The Seychelles

Seychelles
Securities Eden Island TROP
Exchange (Trop-X)

Singapore

Singapore
Singapore SGX
Exchange

Stock Exchange of
Singapore SES
Singapore

South Africa

26
 AltX Johannesburg 2003 AltX

Johannesburg
Johannesburg 1887 JSE
Stock Exchange

Sri Lanka

Colombo Stock
Colombo 1896 296 CSE
Exchange

Tanzania

Dar es Salaam
Dar es Salaam 1998 25 DSE
Stock Exchange

Trinidad and
Tobago

Trinidad and
Tobago Stock Port of Spain 1981 TTSE
Exchange

Uganda

ALTX East Africa

Kampala 2014 ALTX
Exchange

Uganda Securities
Kampala 1997 USE
Exchange

United
Kingdom

London Stock
London 1801 2800 XLON
Exchange

PLUS Markets [1]

London 2004 PLSX
Group (closed)

27
 Zambia

Agricultural
Commodities
Lusaka 2007 ZAMACE
Exchange of
Zambia

Lusaka Stock
Lusaka 1993 LuSE
Exchange

International Financial Regulations

Financial regulation is a form of regulation or supervision, which
subjects financial institutions to certain requirements, restrictions and guidelines,
aiming to maintain the integrity of the financial system. This may be handled by
either a government or non-government organization. Financial regulation has also
influenced the structure of banking sectors by increasing the variety of financial
products available. Financial regulation forms one of three legal categories which
constitutes the content of financial law, the other two being market practices

28
 COMPANY PROFILE
Bonanza portfolio ltd
Bonanza is a financial powerhouse. Bonanza is established in the year 1994,
Bonanza developed into one of the largest financial services and broking house in
India within a short span of time. Today, Bonanza is the fastest growing financial
services with 5 mega group companies under it. With diligent effort, acknowledged
industry leadership and experiences, Bonanza has spread its trustworthy expertise all
over the country with pan-India presence across more than 1784 outlets spread 594
cities.
With a smorgasbord of services across all verticals in finance, Bonanza offers
the perfect blend of financial services right from Equity, Currency, Commodity
Broking, Wealth Management Advisory Services that cover Portfolio Management
Services , Mutual Funds Investments to exceptional Depository Services.
Bonanza believes in being technologically advanced so that it can offer – our
tech savvy customers – an integrated and innovation platform to trade online as well
as offline. Besides, it also have one of the finest and most dedicated research teams
with experts who have in depth, unsurpassed knowledge of the market place. All this
and more makes Bonanza the perfect place for investing to take our first step in the
direction of financial success.
Bonanza is affiliated with NSE, BSE, MCX, NCDEX, MCX-SX to CDSL,
NSDL, NMDC, OTC, ICEX etc. These affiliations prove our worth in the market and
make bonanza a name to reckon with.
With various achievements under our belt, Bonanza looks forward to tougher
challenges and newer milestones to conquer, so that you – our customer can get
nothing less than the BEST.
History
Bonanza Portfolio was founded by 5 individuals i.e. Shiv Kumar Goel Satya
Prakash Goel, Anand Prakash Goel, Vishnu Kumar Agarwal and Surendra Kumar
Goel from New Delhi with a focus on Retail Broking. Over the years, the company
also started Wealth Management and Distribution of Financial Products.

29
Message from the CEO
Mr. Shiv Kumar Goel In view of robust growth of the Indian economy over
the past few years, it is expected that there will be tremendous growth opportunities
for the Indian financial markets. Retail penetration is very low in India in comparison
with other developed economies. Only 3% of the country’s population invests in
stocks, mainly due to lack of awareness, infrastructure and high distribution costs.
However, currently the scenario is expected to change with the help of large network
of broking houses which are providing all financial products under one roof, and the
retail investors are willing to join the stream.
The broking industry in the past few years has emerged as a full-fledged
financial services industry by providing investors one stop service like trading in
shares, commodities, PMS, depository services, distribution of financial products like
mutual fund, insurance, real estate funds, besides providing advisory and research on
economy/sectors/ companies. We believe that in future there will be huge growth
opportunity available for big pan Indian players which are well equipped with the
latest technology and vast distribution network.
Mission:
Bonanza aims at attaining 5% market share.
Vision:
To be one of the most trusted and globally reputed financial distribution companies .
Value:
 Customer centric approach At Bonanza, customer come first. And their
satisfaction is not just our top priority but also the driving force for us, every
single day.
 Transparency Honesty is our forte. We believe in dealing on thoroughly
ethical grounds, being fair and transparent with our customers.
 Meritocracy We recognize and appreciate efforts put in by our employees.
And we, as a matter of fact, reward and distinguish each one of them,
ceaselessly.
 Solidarity We believe in sharing a forth right and respectful relationship with
our business partners and employees. We consider them both as our team
associates who work together. Succeed together.

30
 PRODUCTS
Equities and Derivatives
Bonanza has memberships of all the leading stock exchanges in India and is a
registered as clearing cum trading member on cash and derivatives segment of NSE
and BSE. Bonanza is also registered as dealer on OTCEI. Bonanza through its wide
network of offices, offer various capital market related services to large retail
customer base spread across India. Further, Bonanza has been felicitated as leading
volume driver on BSE, during the FY05 and FY07 ( CM/F&O)
Commodities
The company is a registered trading and clearing member of NCDEX, MCX
and NMCE. The company also provides investment opportunities in gulf commodities
futures and currency market through its membership in DGCX.
Currency
Currency Derivatives known as being predecessors in contributing to unique
financial products, we have now added to our stable Currency Derivatives
Depository Services
Bonanza is a depository participant of CDSL and NSDL for both equity and
commodity segment. It offers a range of services including demat operations.
Mutual Funds & IPO’s
Bonanza is one of the largest distributors of mutual funds in India. It has an
online portal providing regular updates on NFOs, forthcoming IPOs, MF gainers and
losers and daily NAV’s. It helps its clients with best research reports known in the
market in comparative analysis of several mutual fund schemes. Bonanza offers
transaction alerts via mobile text messages and portfolio statements through Auto
mail facility. The company also allows investors to apply for mutual funds and IPOs
through online investment platform.
Fixed Deposits Bonds:
Bonanza offers capital gain bonds u/s 54EC [REC & NHAI] and RBI 8%
Taxable saving bonds.

31
Silver Bars/Coins:
Bonanza silver coins are packed in tamper-proof certified pack at the manufacturing
stage itself to prevent any damage / theft during transit. The Coins come with a
highest quality as per international standards.
Institutional Broking:
Bonanza institutional broking arm caters to the investment needs of some of
the leading financial institutions in India, including the largest Indian insurer & bank.
Our research team provides in – depth insightful research on the markets that
help clients in making investment decisions and is highly valued by them.
State of the art infrastructure; Bloomberg, Reuters, STP software for trade
verification, institutional dealing desks in Mumbai & Delhi, video conferencing
facility.
Portfolio Management
Bonanza has a team of dedicated and experienced portfolio managers who
respond to the changes in rallies, patterns and move stocks accordingly to capitalise
on market situations.
Following are some of the features of Bonanza fund management services:
 Professional research
 Proactive management
 Prudent risk management practices
 Greaterflexibility to hold cash and allocate Investments
It offers several benefits including portfolio advisory services and structured
trading products with innovative ideas and strategic investments.
Online Trading
Bonanza offers easier and secure online trading experience. It’s online trading
portal enables trading across all exchanges and access to all services in a single
window. Bonanza Value and Bonanza Max are two of its unique and personalized
software’s for online trading.
Bonanza Value is a web interface that caters to investors trading occasionally.
It is a comprehensive trading module providing fundamentals to trading, demos,
quotes, demat& digital contracts, integrated banking, instant transfer and price alerts.
Bonanza Max is an EXE based desktop software designed for traders who take

32
advantage of short term price movements. It has technical analysis features helping
client to time the markets.
Insurance
Bonanza covers a wide range of insurance solutions both in life insurance as
well as general insurance. The IRDA certified advisors offer sensible advice on policy
selection and assist you throughout the claims redressal process. The advisory team
carefully matches the Insurance Products available to your personal and financial
profiles and then offers you suitable solution options.
Arbitrage
The specialized alternative investments desk offers differentiated research and
execution services on arbitrage. With the help of its specialized quantitative research
desk, Bonanza creates insightful data points creating investment and arbitrage
opportunities. To strengthen the arbitrage services, the company plans to appoint 100
arbitrageurs and have a pan India presence for arbitrage.
Currency Futures
Bonanza is amongst the few to offer currency futures trading. The company
has installed dedicated resources in terms of trained manpower and advisors to help
and guide actual users on hedging techniques and strategies.
Research Bonanza
Research Desk has a dedicated team of analysts and experts that have an in
depth knowledge of the market. They offer value perspectives, focus on opportunities
for investment and growth and Endeavour to reduce risk potential.
Its premium advisory services are based on technical and fundamental views
and strategies in both equity and commodity segments. They provide trading ideas,
daily market strategies, monthly updates, investment ideas, trading calls and
commodity views to its clients.
Reach & Access
As of FY08, Bonanza has established a pan India network of 874 branches
covering over 300 cities. Bonanza Global DMCC member of DGCX is its group
company operating from UAE.
Technology & Connectivity
Bonanza has entered into strategic tie ups with companies that provide latest
technological support to facilitate trading access and direct processing activities which

33
helps its clients to trade either online or offline. Bonanza’s trading platform is
supported by Financial Technology and Asian CERC Information. The back office
support is provided by Apex Softcell Pvt Ltd.
 High speed and streaming live quote access via internet for
NCDEX/MCX/MCSSX for branches and retail clients
 Internet based Depository access (Speed-e/Easiest) to offer DP services to
retail investors.
 24*7 online access to centralized support structure for all products offerings.
Performance
During 2008, Bonanza added nearly 60,000 clients in equity segment. The
company’s offices across the country increased from 475 in 2007 to 874 in 2008.
Total revenue increased by more than 100% whereas profits increased by more than
250% in FY08.
Future Plans
Bonanza aims at acquiring significant market share in the equity, commodity
and insurance distribution segment in India. It further aims at expanding FII and
institutional client base, enhancing its research capabilities to meet international
standards.
Real Estate
Beginning with the conception of an idea to the execution of transaction, we
provide Comprehensive property solutions. Our main aim to provide quality Real
Estate Broking services o Individuals, Embassies, MNCs, NRIs, Corporate etc. In
leasing / renting acquiring properties in Mumbai, Navi Mumbai &Thane
We specialize in providing liaison and consultancy services for commercial
offices, industrial plots / sheds, and property for self use, investments in Mumbai,
Navi Mumbai & Thane. We save precious time of our clients by negotiating the best
possible deal on their behalf for buy, sale and lease of their properties.

34
Wealth Management

Tax Planning

Insurance Equity
Planning Advisory

WEALTH
MANAGEMENT

Retirement Investment
Planning Planning

Medical Tourism
Bonanza medical tourism pvt ltd. Was established with the vision of becoming
the most recognized, preferred healthcare solutions provider for Indian as well as
international population.
We have leveraged our existing network further by entering into business of
Health care (Medical Tourism). We look forward to provide a global health network
that can facilitate the medical necessities of the global population through the
distribution of health & wellness. We will be the intermediary in health care vacation
in India as we aim to make available our clients with the widest possible choice for
their treatment along with support in travel, stay and luxury tourism packages pre and
post treatment. Also Bonanza medical tourism caters to Indian population through its
domestic product name “Bonanza Health Card”.

35
 Bonanza health card is a privileged membership card offering a one stop
solution to all health care enquiries to the card holders. This card will be a unique card
where people will get benefits on our tied up health care centers.
Awards & Recognitions
 2004-05, 2006-07, 2007-08 - Awarded by BSE as “Major Volume Driver.”
 2008 - 3rd in terms of number of trading accounts as per the survey by Dun &
Bradstreet
 2008 - Top equity Broking House in terms of branch expansion as per the
survey by Dun & Bradstreet
 2008-09-10 - Ranked amongst the Top 3 National Level Financial advisors by
UTI MF & CNBC TV18
 2012-13 - India’s No. 1 Valuable Financial Advisory & Stock Broking
Company as per Business Leadership Awards organized by India Leadership
Conclave and India Affairs Magazine
Bonanza Milestones
 Top 4 in commodity segment in Bloomberg UTV.
 3rd in terms of number of trading accounts for 2013.
 Top equity broking house in terms of branch expansion for 2013.
 Top performer in equity segment (Retail), 2013-2014
 Ranked amongst the top 3 National Level Financial advisors 3 years in a row
2013-2014-2015 by UTIMF & CNBC TV 18
 2nd in terms of numbers of offices for the year 2013 – 14
 3rd in terms of trading terminals for the year 2014 -15
 7th in terms of Sub brokers for the year 2015 -16.
 Best Web Portal providing integrated properly services, 2016.
 BSE’s Top ten performers in Derivative Segment (retail Trading) 2016 – 17.
 India’s No.1 Valuable financial advisory & stock broking company
 Ranked amongst the Top 3 Best Equity Brokers in 2017 -18 by UTIMF &
CNBC TV 18

36
Key Information (during 2016)

Total Income (RSMN): 622.9

Net Profit (RSMN): 66.1

Headquarters: Mumbai, India

Bonanza commodity brokers ltd.

Subsidiaries: Bonanza insurance brokers ltd

Bonanza corporate solution ltd

Employees: More than 6,000

Branches: 475

Outlets: more than 1,842

No of Cities Covered: 674

Clients: more than 7,20,277

Reach & Access

Clients Served: Retail, HNI, Corporate

Industry / Vertical: Services, Retail

Shiv Kumar Goel

S P Goel

AnandPrakashGoel
Management Directors
Vishnu Kumar Agarwal

SK Goel

RenuGoel

Chief operating officer: SaurabhShukla

Website: www.bonanzaonline.com

37
MARKET GROWTH

2014 2015 2016 2017 2018

NSE, BSE 2.10% 1.90% 1.90% 1.70% 1.30%

NSE , F&0 2.50% 2.00% 1.50% 1.50% 1.70%

MCX&NCDEX 2.00% 2.00% 2.10% 2.40% 2.90%

38
Competitors
The following are the top competitors
1. IIFL
IIFL is a financial company that offers asset and wealth management,
institutional equities, investment banking and property advisory services.

IIFL is a Public company. Sumit Bali is the CEO of IIFL and has an approval
rating of 82 from Owler members. IIFL has received a total of $200M in
funding. IIFL has 4 companies in its portfolio, and its first investment was
made in 2016. IIFL has 4,868 followers on Owler.

2. Zerodha
Zerodha with a unique name and meaning, no Barrier Zero rodha ( Barrier in
English) is emerging as a single largest Discount Broker in India having
customers exceeding 6 lakh. Zerodha is the largest discount broker and <strong>3
largest brokerage house in India after ICICI Direct and HDFC Securities
When it comes to customer support Zerodha delivers a consistent and often
memorable experience. Most of the time, the queries of customers are answered
by the CEO of the company itself or by experts in that field. Opening account with
them is a breeze and hassle-free. As per my personal experience, within an hour of
completing the application online, a Zerodha representative called me to welcome
and explained all initial questions I had. He also guided me to read <strong> Z-
connect, an interactive blog written by experts which I feel is detailed but simple
to understand and is a cool place to learn for amateurs.

3. ICICI Direct

The iconic brand ICICI Direct ,award winning online retail trading and
investment platform from ICICI Securities, is one with which nearly every investor is
familiar. The full-service broker was founded in year 2000, and as of now, ICICI
Direct is home to a staggering 3 million in total clients.From advisory services to
research, active trading, customer service, ease of use, and more, ICICI Direct
understands what it means to provide a high-quality offering.With ICICI Direct you

39
have facitity to invest in Equity, Derivatives, Currency Futures, Mutual Funds along
with other services like Fixed Deposits,Loans,Tax Services, New Pension Systems
and Insurance.
To facilitate the trade ICICI Direct has unique 3-in-1 account which integrates
customer's saving, trading and demat accounts. Comprehensive research
information,stock picks and mutual fund recommendations are other useful add on
services provided by ICICI Direct to its clients. ICICIdirect.com is the first broker in
India to introduce `Digitally Signed Contract Note' to its customers.
ICICI Securities has 250 offices across 66 cities in India to facilitate potential
customers to open account, speak and understand their financial plans and
goals.Through ICICIdirect.com, you can trade on NSE as well as BSE.
Its 'Centre for Financial Learning' initiative offers number of online and
classroom programs for retail investors. ICICI direct Knowledge Programs provide
you with an insight into a wide range of financial products like
derivatives,shares,mutual funds,IPOs,small savings and insurance
You can do cash trading,avail margin product,margin plus product and call &
trade facility and can place market and limit order while using ICICI direct.
Online Support-Insta-help, FAQs and Community have most of the answers to
trader's questions.

4. Sharekhan
Sharekhan BNP Paribas</strong> is the Mumbai based full service stock broking
firm having most credible name in the share brokerage Industry with 16+ lakhs
customers on board and having presence in 575 cities with 2400 offices and
franchisees across India.
ShareKhan was founded in year 2000 by SSKI Group and become subsidiary of BNP
Paribas in 2016. BNP Paribas is a leading bank in Europe with an international reach.
&nbsp; Sharekhan not only offer online trading facility in equity, derivatives,
currency and commodity having membership in NSE, BSE, MCX and NCDEX
&nbsp;but also provide financial services such as investment in PMS, MF, IPOs and
bonds; advisory, research reports, online education, NRI services and much more.
To start E-Trading with Sharekhan, you need to open Trading Account and
Demat Account with Sharekhan Ltd. &nbsp;Sharekhan is Depository Participant with
NSDL and CDSL.

40
 Sharekhan offer online education in equity, options and commodity through
Online Trading Academy OTA, the global leader in trading education.; Sharekhan
Classroom&nbsp; offers free web based training to understand the basics of trading.
Ignite is a year-long online trader mentoring program from Sharekhan in partnership
with the Online Trading Academy, where you can learn how to confidently trade
without the fear of losing. Courses like Stock Investor and Wealth
Essentials</strong> are also available.
Sharekhan offer multiple Portfolio Management Schemes</strong> (PMS)
especially for HNI customers. PMS ProPrime is aimed at long term investors,
focusing on steady returns &amp; <strong>PMS ProTech focuses on absolute returns
in the market.
ShareKhan Mutual Fund services are comprehensive and exceptional The
broker provides paperless mutual fund account opening facility called INSTA MF
A/C. Their Robo-Advisory tool NEO analyzes your financial goals and risk profile
and based on that suggests investment portfolio to you. You also get personal advice
and research by approaching your local branch or online. Model Portfolio Tools for
Mutual Funds like Compare Funds, Investment Calculator, Goal Calculator,
Performance Calculator are great help to answer all your queries related to Mutual
Fund Schemes, return on investment, reaching goal etc
ShareKhan offer research- based financial advice</strong> available on their
website and over phone.&nbsp; Research for Investors, Research for Traders and
Research for Mutual Funds are clearly visible onsite. You can also get Intraday Calls,
Momentum Calls, Smart Chart Calls, and Fundamental Calls from 2-toll free numbers
Toll Free: 1800-270-7050 / 1800-22-7050.
Dial-N-Trade of Sharekhan is a unique feature to place your orders for equity,
currency and options.

41
SWOT ANALYSIS

STRENGTH

 Customized Brokerage Charges – The brokerage charge by Bonanza is

among the least as compared to other brokerage firms in the industry. The
brokerage for Intraday varies from 0.01 to 0.03% and for Delivery it is
to 0.3%. The brokerage varies on the basis of volumes of trading expected
from the client. Bonanza also charges brokerage of 0.01% and 0.1% from
some HNI’s.
 No Annual Maintenance Charges – There is no Annual Maintenance
Charges (AMC) on Demat and Trading a/c which is there in almost every
other big brokerage firm.

 Value Added Services – There are no charges for calling RM’s

(Relationship Managers) in relation to their a/c or trading. A client can call
any number of times to his RM to enquire about his a/c status or to place
any order which is chargeable in other brokerage firm. e.g. ICICI DIRECT
charges Rs 12 for enquiring about the a/c and Rs. 20 for placing any order.

 User Friendly Software - The software provided by Bonanza (Power

Bonanza) is very easy to use and reflects the price changes immediately
without any time lag. The client can easily place his order and see the
movement of price change of his favorite scripts without any time delay while
other companies like ICICI DIRECT has a time lag of almost 20-25 seconds
or more.
 Organized RMS (Risk Management System) – Bonanza has an organized
RMS and this is the reason why clients doesn’t suffer much losses and his
position is squared off automatically with the help of RMS. This is the only
reason why Bonanza suffered least losses as compared to other big brokerage
firm when market crashed.

42
WEAKNESS

 Trading of Z category stocks - Z (b1, b2, s, t) category stocks are not

allowed to buy because there is danger of liquidity in the stocks and attracts
higher speculation. These are the stocks, which are mainly traded in BSE, and
Bonanza encourages its clients to trade only in NSE.
 Time-consuming process – Every document has to be sent to HQ (Gurgaon)
because of which the processing of documentation takes time. This
centralization is costly also when it comes to sending each document from
different parts of the country to HQ.

OPPORTUNITY

 The way ahead - There is a lot of opportunity available in mutual funds and
insurance sector being a pioneer in financial sector in its own way Bonanza
should foray into mutual fund and insurance sector.
 Limited reach - Since Bonanza is not present in 2tier cities because of
which there is huge untapped market of rural and small urban sector.

THREATS

 FDI in stock broking – As the competition in stock broking increasing and

SEBI’s new norms which allow FDI to enter in stock broking can post a
threat to Bonanza.

43
 THEORETICAL FRAME WORK
Meaning of Online Trading
“Change is the law of nature”. There were times when man was a wanderer
or a normal. He himself had to go place to place in search of food, water and now
everything is available at your doorstep just at the click of the mouse. The growth of
information technology has affected almost all sectors of life. Internet has enabled us
to get every information at our doorstep. When Internet has affected all sectors he
could “stock markets” the most important player of the economy, has remained far
behind? Like all other sectors Internet has set its feet in the stock markets also.
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.
All of these positive features of internet trading may lead the unwary investor
to believe that Internet trading is a way to take control of their finances and save more
money in the process. Unfortunately, this is not always the case. The advantages of
Internet stock trading have also its weaknesses and these weaknesses present
significant drawbacks for the average investor.
First and foremost, the average investor is not an expert in the financial
markets. There is a danger for allowing the autonomy of online trading to hull you
into the belief that you are an expert investor. An online investor sitting at home at a
personal computer also foregoes proper investment advice and financial planning,
perhaps among the most valuable services provided by traditional brokers.
There are, of course, additional risks relative to performing transactions over
the Internet especially on a shared computer. Those people whom investors have
provided their account number and password can freely trade that account while the

44
investor will have little, if any, resource against the brokerage firm for the breach of
security.
When was online trading introduced in INDIA?
Online trading started in India in February 2000 when a couple of brokers
started offering an online trading platform for their customers.
Online trading by NSE & BSE
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. The scrips traded on the BSE have been classified into 'A', 'B1', 'B2', 'C',
'F' and 'Z' groups. The 'A' group shares represent those, which are in the carry forward
system (Badla). The 'F' group represents the debt market (fixed income securities)
segment. The 'Z' group scrips are the blacklisted companies. The 'C' group covers the
odd lot securities in 'A', 'B1' & 'B2' groups and Rights renunciations. key regulator
governing Stock Exchanges, Brokers, Depositories, Depository participants, Mutual
Funds, FIIs and other participants in Indian secondary and primary market is the
Securities and Exchange Board of India (SEBI) Ltd.

45
Difference between online and offline trading
Nevertheless, with all the convenience of online trading there are still
investors who prefer the old fashion way of offline trading. Offline trading has lost
some popularity but it is still the main form of investing. Offline trading offers many
benefits as well.
1. The one benefit that an investor appreciates the most is that they are not alone
when making investment decisions.
2. There are experienced and professional brokerage companies that handle their
investments for them.
3. Investors are not faced with the challenge of making these vital investment
decisions; especially, if they do not have the experience necessary to make the
appropriate investments.
4. Also, there is someone there to answer any questions that may cause concerns. Not
to mention, with offline trading mistakes are less likely to take place. No one
wants to throw their money away or stand by and watch someone else throw their
money away. It may be wise to hire a professional to assist you in making the
correct investment decisions if you feel you lack the knowledge necessary.
Points of difference between online trading and offline trading are as
follows:
1. Online trading is very expensive as compare to manual trading or offline trading.
2. Online trading consumes less time as compare to manual trading.
3. Online trading has very helpful to finding the records easily but offline trading
takes more time to finding the records.
4. In the help of online trading, there is no chance of any errors while doing the
trading. in offline trading there are some errors exist like barriers of
communication .
5. With the help of online trading, we know the international market rate of share
very easily.

46
 Dematerialization of shares
Dematerialization is the process wherein shares certificates or other securities
held in physical form are converted into electronic form and credited to demat
account of an investor opened with a depository participant. SEBI has made
compulsory trading of shares of all the companies listed in stock exchanges in demat
form with effect from 2 nd January 2002.The procedure of opening a demat account
with DP is similar to opening an account with a bank.
Electronic settlement of trade
A. Procedure for purchasing dematerialized securities
The procedure for purchasing dematerialized securities is also similar to the procedure
for buying physical securities.
1. Investor instructs DP to receive credits into his account in the prescribed
form. There may be one time standing instruction or separate instruction each
time to receive credits.
2. Investor purchases securities in any of the stock exchanges linked to
depository through a broker.
3. Broker receives payment from investor and arranges payment to clearing
corporation.
4. Broker receives credit to securities in clearing account on the payout day.
5. Broker gives instructions to DP to debit clearing account and credit client’s
account. Investor receives shares into his account by way of book entry.
B. Procedure of selling dematerialized securities
The procedure for selling dematerialized securities in stock exchanges is
similar as selling physical securities. The only major difference is that instead of
delivering physical securities to the broker, the investor instructs his DP to debit his
demat account with the number of securities sold by him and credit the brokers
clearing account. The procedure for selling dematerialized securities is given below:
1. Investor sells securities in any of the stock exchange linked to depository
through a broker.
2. Investor instructs his DP to debit his demat account with the number of
securities sold and credit the broker’s clearing account.
3. Before the pay-in-day, broker of the investor transfers the securities to clearing
corporation.
4. The broker receives payment from the stock exchange

47
Rematerilisation of shares
Rematerialization is the process of conversion of electronic holdings of
securities into physical certificate form. For rematerilisation of scrips, the investor has
to fill up a remat request form (RRF) and submit it to the DP. The DP forwards the
request to depository after verifying the investor’s balances. Depository in turn
initiates the registrars and transfer agent or the issuer company. RTA/ Company prints
the certificates and dispatches the same to the investor.
Market timings:
Trading on the derivatives segment takes place on all days of the week (except
Saturdays and Sundays and holidays declared by the Exchange in advance). The
market timings of the derivatives segment are:
Normal Market / Exercise Market Open time : 09:55 hours
Normal market close : 15:30 hours
Set up cut of time for Position limit/Collateral value : till 15:30 hrs
Trade modification end time / Exercise Market : 16:15 hours
Advent of online trading
The history of e-trading goes back to 1983, when a doctor in Michigan placed
the first online trade using E*TRADE technology. what began with a single click over
16 years ago has now taken the world by storm. The concept was visualized by one
bill porter, a physicist and inventor with more than dozen of patents to his credit, who
provided online quotes and trading services to fidelity, Charles Schwab, and quick
and Reilly. This led bill to wonder why, as an individual investor, he had to pay a
broker hundreds of dollars for stock transactions. with incredible foresight, he saw the
solution at hand, some day everyone would own computers and invest through them
with unprecedented efficiency and control. And today his dream has become a reality.

48
Share of online trading in total cash turnover of national stock
exchange
Table 1.1(Year 2014)

Month Cash turnover(cr.) Online turnover(cr.) Ratio (%)

January 64,762.24 1,923.34 2.97

Feb 48,289.18 1,559.07 3.23
March 43,159.93 1,302.69 3.02
April 48,971.31 1,425.83 2.91
May 54,690.14 1,981.36 3.62
June 61,585.35 2,142.41 3.48
July 78,877.63 2,720.59 3.45
August 85,346.58 3,301.88 3.87
September 1,03,345.50 3,825.88 3.70
October 1,15,595.32 4,344.33 3.76
November 92,885.71 4,024.02 4.33
December 1,10,372.64 5,876.21 5.32

Table-1.2 (Year 2015)

Cash turnover Online turnover Ratio
Month
(rs. Crores) (rs. Crores) (%)
January 1,34,268.72 6,015.04 4.48
February 1,08,718.06 5,170.01 4.76
March 1,04,876.53 4,330.23 4.13
April 1,00,951.17 5,244.27 5.20
May 98,919.93 5,187.01 5.24
June 84,898.47 5,358.95 6.31
July 93,836.13 6,819.45 7.27
August 86,855.72 6,192.31 7.13
September 88,508.05 6,976,.41 7.88
October 75,697.32 6,261.90 8.27
November 82,035.27 7,490.16 9.13
December 1,15,593.10 11,000.62 9.52

49
 Table 1.3 (Year 2016)

Month Cash turnover Online turnover Ratio

January 68,718.95 1,251.84 . 1.82

February 49,563.77 917.80 1.85

March 44,262.50 868.85 1.96
April 53,320.02 914.73 1.72
May 54,979.06 1,237.28 2.25
June 44,241.07 1,108.66 2.51
July 51,398.43 1,290.57 2.51
August 46,113.05 1,310.78 2.84
September 46,498.62 1,318.01 2.84
October 51,902.22 1,476.51 2.85
November 51,351.48 1,639.28 3.19
December 61,973.34 1,915.65 3.09

TABLE-1.4(Year 2017)

Month Cash turnover Online turnover Ratio

April 57,229.44 5.85 0.01

May 79,036.68 29.1 0 0.04

June 1,19,373.43 88.58 0.07

July 1,10,056.22 97.49 0.09

August 1,25,347.04 165.09 0.13

September 1,42,479.78 229.98 0.16

October 1,06,854.21 190.18 0.18

November 1,22,731.11 350.79 0.29

December 1,31,414.65 366.75 0.28

50
 TABLE-1.5 (year 2018)

Online turnover
Month Cash turnover Ratio
(rs. Crores)

January 1,48,829.84 1,130.49 0.76

February 1,35,932.23 1,573.62 1.16

March 60,226.21 849.81 1.41

April 35,615.63 268.9 0.76

May 48,329.11 343.92 0.71

June 42,783.00 238.47 0.56

July 27,227.76 401.68 1.48

August 29,417.15 388.98 1.32

September 35,322.82 453.58 1.28

October 35,326.454 604.17 1.71

November 42,132.23 805.86 1.91

December 54,467.79 1,048.24 1.92

Internet Based Trading through Order Routing Systems

Internet based trading on conventional exchanges, uses the Internet as a
medium for communicating client orders to the exchange, through broker web sites.
Broker’s web sites may serve a variety of functions. These may include;
 Allowing the clients to directly trade through investors;
 Advertise the broker dealers’ services to potential investors;
 Offer market information and investment tools similar to those offered by
information vendor or SRO web sites;
 Offer real-time or delayed quote information, continuously update quotes while
the user visits other sites, or allow investors to create a personal stock ticker;
 Provide market summaries and commentaries, analyst reports and trading
strategies and market data on currencies, mutual funds, options, market indices
and news; and

51
 Offer investors access to portfolio management tools and analytic programs;
 Information on commission and fees; and
 Account information and research reports.
In an Order Routing system, a broker offering Internet trading facility provides
an electronic template for the customer to enter the name of the security, whatever it
is to be bought or sold, the quantity and whatever the order is a market or limit order.
Once the broker’s system receives this information.
Use of Internet as Alternative Trading Systems (Provision for price discovery
and matching outside conventional exchanges)
In foreign jurisdiction, Alternative trading systems have been developing
outside conventional securities markets, which provide investors with additional
proprietary electronic trading facilities for securities that are traded principally on
securities exchanges, or other organized markets. They have price discovery
functions, matching systems and crossing systems. The systems that are currently in
use in outside jurisdictions are closed systems and are not accessible to the general
public through the Internet. The securities markets regulators abroad the maintained
flexible and open policies designed to encourage innovation in the secondary
securities markets. As a result, a number of market participants, usually broker-
dealers, have developed computerized “alternative trading systems” by which the
system centralize, display, match, cross or otherwise execute trading interest.
Use of Internet for making Initial Public Offerings Issues of securities of using the
Internet to communicate directly with their shareholders, potential investors and
analysts by disseminating corporate information. In foreign jurisdiction, they are also
using the Internet to communicate to the public for the following:
 Public offerings;
 Private offerings; and
 Disclosure and communication
Issuers are using the Internet to market themselves to potential investors. The Internet
is also being used for fulfilling necessary disclosure requirements, for disseminating
the prospects in electronics form and even for receiving share applications in public
issues electronically. In India, SEBI has taken initiative in permitting use of the
network of stock exchange for collection of investor applications in public offerings
by the issuer companies.

52
Investment Advisory Service
Brokers as well as other service providers such as investment firms, research
outfits etc. are using the Internet for marketing and advertising purposes, for
presenting information on portfolio analysis and market information, and for
communicating with and receiving orders from potential investors. The services
offered by the service providers to the investors are generally the following:
 Advertising
 Providing investment information and investment advice;
 Underwriting
 Communicating with the investors;
 Customer orders; and

53
 BENEFITS OF ONLINE BROKING
1) Less Costly:
The most significant advantage of the online broking is the cost reduction in
the brokerage. Due to the power of the Internet one has the privilege of becoming the
clients of really large brokerages with the benefits of enjoying the low charges
hithelio before enjoyed only by the big players. As the DP account has got linked to
the trading account most players do not charge a minimum transaction cost thus truly
allowing one to buy a single share and achieve meaningful rupee price averaging
whatever be your buying power.
2) Peace of Mind:
One can never have complete peace of mind but online investing does away
with the hassles of filling up instruction slips, visits to the broker for handing over
these slips and consequent costs.
3) Keeping Records:
The site one trades on keeps a record of all transactions down to unexecuted
orders and cancelled orders thus keeping one abreast of all your transactions 24 hours
a day. No paperwork means more time at one’s disposal for research and analysis.
4) Access to Information and investment Tools:
Most online investing sites have a wealth of information for their registered
members. This includes research reports, results, analysis and even gossip and the
buzz in the market.
5) Unparalleled Liquidity:
The bank account linked with the trading account invariably has an A TM
free. Most partner banks offer Internet banking as well. This results in one’s money
becoming available to him whenever he like from his trading account. Conversely in
case he spot an opportunity in the market he can immediately allocate money from his
savings account to his trading account and make profits.
6) Unparalleled Safety:
Most sites are secure using 128-bit algorithms -highest available commercially
anywhere in the world. Moreover even if somebody broke in and tampered with one’s
account the money from the stocks he sold or the stock bought from the money in his
account is in his account only.

54
7) Reduces the settlement risk:
This method of trading reduces the settlement risk for the investor, as in this
case no Short sale is possible i.e. the seller will not be able to sell the securities unless
he has their actual possession. In the case of a demat account (required for an online
transaction), when a seller wants to sell the securities, his demat account is checked
by the Depository Participant before executing the sale transaction. This reduces the
settlement risk for the buyer, who is assured of the delivery of the securities.
8) Offers greater transparency:
Online trading gives greater transparency to the investors by providing them
an audit trail. This involves a complete integrated electronic chain starting from order
placement, to clearing and settlement and finally ending with a credit to the
depository account of the investor. All these stages are subject to inspection, thus
bringing in transparency into the system.
9) Ease of trade:
It is the ease of doing the trade through net, with a click of mouse, one can buy
or sell any share that is dematerialized.
Other than the above-mentioned advantages, Internet trading provides some
additional advantages to the investors, brokers and also helps the nation to channelize
the resources. Net trading would increase competition in the market hence increase in
the bargaining power of the investors. The entire communication between the
investor, broker and exchange would take place within milliseconds.

55
Problems of online broking
There is a flip side to everything and online trading is no exception.
Chart
4%
14% 21%

More Costly
Lack Of Know ledge
11% Loyalty to Traditional Broker
Lack of Trust
Slow Speed
23%
Other

27%

Source:- www.bonanzaonline.co.in
27% Loyality is of traditional broker
23% people says that online trading is more costly than manual trading.
21% people not prefer online trading because of lack of knowledge.
So, the main problems of online trading are as follows:
1) "Server not found":
This may appear on one’s screens when he is desperately trying to get out of
an unprofitable position. Some of the online sites are providing a telephone number
for use in case their sites are overloaded or their server down.
2) Connectivity of the Broker with NSE:
Recently ICICI Direct had a connectivity problem with the NSE for two and
half hours during trading hours. This problem is rare but be alive to its possibility.
3) Cyber attack:
In the event of a malicious attack on the systems of one’s broker he is
protected only if the company is taking proper precautions against such attacks and if
proper backup is regularly been taken. He may like to choose a brokerage that has a
stated security policy and contingency plan in place.
4) Non-availability of a seamless interface:
As a client one will access the NSE through a server of the online brokerage
and this may involve queuing delays. If a number of client access the server the server
takes its own time sending the orders to the NSE server. He must check out the

56
seamlessness of this interface before selecting an online brokerage. The faster the
orders are processed the more seamless is the interface.
5) Non- availability of personalized advice:
If one like to ask his broker "Aajkyaachcha lag rahahai" he may not be able to
do so. If he want advice on a particular stock in his portfolio he may not even be able
to get that.
6) Margin:
If Internet trading alone is not fast and furious enough; many people are
trading on margin. That is where the brokerage firm lends you money by leveraging
his account, allowing him to buy a large amount of securities by putting up only a
small amount of money. He may have forgotten what he read in the small print of his
agreement, but the brokerage firm has the right to change the maintenance margin
requirements without any warning or notice to him. In fact, the firm has the right to
liquidate his securities holdings (and it can pick and choose which ones) without any
notice to one if he fail to meet the margin call. And there he was leveraged to the hilt,
hoping to hit a home run when he discovered that he is required to make a large
deposit that he cannot make. The next thing one know, the firm is selling off his
securities at a point in time that is not the best for him. These are the perils of trading
on margin.
7) Little use of advisory services:
The advisory services being promised by the brokers would be of little use to
investors looking for an insight into the market. Many would not like to rely on
research reports, which are there for all. So, net investors will have to do their own
research and take their own decision, whether wild or wise.
8) Increased charges:
Some of the brokers are of the view that they would have to provide advisory
services to the customers. But with increased volumes, they will have to follow the
international practice of charging a little more than the normal charges from a
customer looking for personal advice.

57
 Why people are bending towards online trading
Several broking houses now offer online trading facilities. You can trade online
with e-brokerages such as ICICI Direct, Kotak street, India bulls, India info line’s
5paisa.com and HDFC securities.
If you are already comfortable trading with your regular broker, here are few
reasons why you may consider switching to trading online, or at least another avenue
of trading. an obvious advantage of online trading is that your transaction would be
virtually paperless. Your trading account would be linked to your demat and bank
account, ensuring a smooth transaction process. This is especially helpful in the extent
T+2 settlement system, where you have just two days to settle your transaction.
The normal process of issuing of delivery note, in case of a sale, or arranging for a
payment in case of purchaser of shares, is all taken care of the minute your order is
executed online. The absence of manual intervention ensures that you are completely
in control of all transaction.
There is also little room for error, as your order is always confirmed before it is
executed. You can also make better decision as you have a clear record of all your
previous transaction. When you trade offline, a demat statement is normally sent to
you only on a quarterly basis .keeping track of your portfolio can be a hassle in such a
case. The internet can provide a new sense of control over your financial future. The
amount of investment information available online is truly astounding. Its one of the
best aspect of being a wired investor for the first time in history, any individual with
an internet connection can:
 Know the price of any stock at any time
 Review the price history of any stock in chart format
 Follow market events in-depth
 Receive a wealth of free commentary and analysis about stock markets and
globe economy.
 Conduct extensive financial research on any company
 Talk with other investors around the world
At invest smart you can get real-time stock quotes, daily roundups of the stock
market, experts commentary, and a deep community of fellow investors.
Convenience is probably the greatest advantage online trading offers investors.
if don’t have time to trade during market hours ,perhaps you are at work, you can log

58
on the web-trading site and place your order offline, during off market hours. Your
order would join the queue and be expected the next day. You would need to enjoy a
good relationship with your broker, for you to be able to reach him in the late hours.
For non-resident Indians (NRI), trading online is perhaps their easiest option to invest
in the Indian stock markets.
What is more, the time difference, in some cases, can work to their advantage
.Antony, an NRI-based in New York, places his order in the evening after work, when
it is day time India and the markets are open. We also have access to considerable
information online. By just logging on to ICICI direct online, for instance, we can get
the latest news, market information and company research.
Moreover, if our connection is maddeningly slow and we want to get your
order executed immediately, most e-brokerages also provide a facility to trade offline
by placing our order via the phone.

59
 Process of online trading
An investor interesting in trading through Internet shall have to, firstly register
himself with an Internet brokerage firm. Some formalities such as filling the account
opening form of the e-broker, copies of identity proof, copy of residence proof are
made to register himself with the e-trader. Secondly, the investor would be required to
open a bank account with a scheduled bank and sufficient balance should be kept in
the account. Thirdly he would be required to open account with a depository
participant because only dematerialized shares can be traded on Internet.

The client places order via the net by logging on to his

The broker accepts and executes the order and places it with the
exchange

The exchange accepts the order after checking the share limit for the day.

The broker makes the payment either directly via the client bank account or
pays through its own account and recovers it later from the client.

The exchange receives money and completes the settlement.

The client is intimated about the settlement either through the demat
or via e-mail.

60
So, generally following steps are followed while doing the trading through the
Internet:
Step-I:
Those investors interested in doing the trading over Internet system, that
is,NEAT - ISX (NSE), should approach the brokers and register with the Stock
Broker.
Step-2:
After registration, the broker will provide to them a login name, password and
a personal identification number (PIN).
Step-3:
Actual placement of an order, Using the place order window as under can then
place an order:
(a) First by entering the symbol and series of stock and other parameters such as
quantity and price of the scrip on the place order window.
(b) Second, fill in the symbol, series and the default quantity.
Step-4:
It is the process of review. Thus, the investor has to review the order placed by
clicking the review option. He may also re-set to clear the values.
Step-5:
After the review has been satisfactory; the order has to be sent by clicking on
the send option.
Step-6:
The investor will receive an "Order Confirmation" 'message along with the
order number and the value of the order.
Step- 7:
In case the order is rejected by the Broker or the Stock Exchange for certain
reasons such as invalid price limit, an appropriate message will appear at the bottom
of the screen. At present, a time lag of about ten seconds is there in executing the
trade.
Step-8:
It is regarding charging payment, for which there are different modes. Some
brokers will take some advance payment from the, investors and will fix their trading
limits. When the trade is executed, the broker will ask the investor for transfer of
funds by the investor to his account.

61
 The mechanics of online trading
CLIENT BROKER STOCK EXCHANGE

Places an order on the
net on the broker’s
website through the
distinctive I.D. code
Accepts the order, Accepts the order after
Checks the client’s checking the scrip limit
Identity and places of the broker for the
the order with the day
stock exchange

The settlement of the

deal (buy/sell order)
gets reflected in his Pays the
Demat account.
Exchange
The clientis intimated
about the execution of though his owns Receives the
the deal by e-mail. account and money and
Pays the broker receives it from completes the
pending physical the clientaccount. settlement
delivery.

62
 DATA ANALYSIS AND INTREPRETATION
5.1 For how long you have been trading with on line-trading?
Respondents Percentages
1year 44 44%
2years 26 26%
3years 19 19%
4years 11 11%
Total 100 100%

Respondents
50
45
40
35
Axis Title

30
25
20
15
10
5
0
1year 2years 3years 4years
Respondents 44 26 19 11

Interpretation
According to this survey we find that 44% people says that we are investing
the money online from one year and 26% people says that we are investing the money
online from 2 years and19% to 11% people says that we are investing money online
from 3 to 4 year. so we can say that now online trading is very popular in the modern
market.

63
5.2 How will you describe your experience with on-line trading till date?
Respondents Percentage
Very easy to operate 60 60%
Very difficult to operate 15 15%
Not secure 10 10%
Any other 15 15%
Total 100 100%

Respondents
70
60
50
Axis Title

40
30
20
10
0
Very easy to Very difficult
Not secure Any other
operate to operate
Respondents 60 15 10 15

Interpretation
According to this survey we find that 60% of people find very easy to operate
and 15% people find difficult two operate and 10% and 15%people find no secure and
any other. So we can say that online trading is very simple to operate and easy to
understand.

64
5.3 What amount of money you invest normally?
Respondents Percentage
50000 35 35%
100000-150000 28 28%
150000-200000 23 23%
Any other amount 14 14%
Total 100 100%

Respondents
40
35
30
25
20
Axis Title

15
10

5
0
100000- 150000- Any other
50000
150000 200000 amount
Respondents 35 28 23 14

Interpretation
According to this survey we find that 35% of people invest money normally
50000 and 28% of respondents invest money 100000 – 150000 and 23% and 14% of
respondents invest money between 150000 – 200000 and any other.

65
5.4 How often do you trade?
Respondents Percentage
Daily 10 10%
Weekly 40 40%
Monthly 32 32%
Above one month 18 18%
Total 100 100%

Respondents
45
40
35
30

25
Axis Title

20
15
10
5
0
More than
Daily Weekly Monthly
one month
Respondents 10 40 32 18

Interpretation
According to this survey we find that 10% of respondents do trade daily and
40% of respondents do trade weekly and 32% and 18% of respondents do trade month
and more than one month

66
5.5 What shortcomings do you feel in Indian On-Line trading?

Respondents Percentage
Lack of awareness 15 15%
Shortage of expertise 49 49%
Shortage of infra structure 14 14%
Any other 22 22%
Total 100 100%

Respondents
60
50

40
Axis Title

30

20

10
0
Shortage of
Lack of Shortage of
infra Any other
awareness expertise
structure
Respondents 15 49 14 22

Interpretation
According to this survey we find that 15% of respondents says lack of
awareness 49% say shortage of expertise and 14% respondents says shortage of infra
structure and 22% say any other. So we can say that mostly respondents are shortage
of experience

67
5.6 Which media would you prefer the most for investment?

Respondents Percentage
T.V 55 55%
Newspaper 25 25%
Magazines 10 10%
Journal 10 10%
Total 100 100%

Respondents
60

50

40
Axis Title

30

20

10

0
T.V Newspaper Magazines Journal
Respondents 55 25 10 10

Interpretation
According to this survey we find that 55% people Prefer T.V and 25%people
prefer newspaper and 10% people prefer magazines and 10%people prefer journals.
So we can suggest that mostly people are very easily gripped the knowledge through
T.V

68
5.7 What is your occupation?
Occupation Respondents Percentage
Cultivation 8 8%
Education 10 10%
Employee 22 22%
Worker 15 15%
Business people 30 30%
None of the above 15 15%
Total 100 100%

Respondents
35
30
25
Axis Title

20
15
10
5
0
Business None of
Cultivation Education Employee Worker
people the above
Respondents 8 10 22 15 30 15

Interpretation
According to this survey we found that 30% respondents of business people
22% of employees 15% of workers 10% of education 8% of cultivation and 15% with
none of the above cultivation people are doing online trading

69
5.8 Age of the respondents?
Age of the Respondents Respondents Percentage
25-30 45 45%
31-35 30 30%
36-40 20 20%
41-50 5 5%
Totals 100 100%

Respondents
50

40
Axis Title

30

20

10

0
25-30 31-35 36-40 41-50
Respondents 45 30 20 5

Interpretation
According to this survey we found that 45% of respondents with age group
30% with 31-35 age group 20% with 36-40 and 5% with 41-50 are doing
online trading

70
5.9 Monthly income?
Monthly Income of Respondents Percentage
Respondents
10000 5 5%
15000 10 10%
20000 18 18%
30000 22 22%
40000 45 45%
Total 100 100%

Chart Title
45000
40000
35000
30000
Axis Title

25000
20000
15000
10000
5000
0
1 2 3 4 5
Monthly Income of
10000 15000 20000 30000 40000
Respondents
Respondents 5 10 18 22 45

Interpretation
According to this survey we found that 45% of respondents whose income is
40000 and 22% whose income is 30000 18% respondents with income 20000 10%
with 15000 and 5% with 10000 income are doing online trading

71
5.10 Do you feel safe online trading?

Response Respondents Percentage

Yes 76 76%
No 15 15%
Can’t say 9 9%
Total 100 100%

Respondents
80%
70%
60%
Percentage

50%
40%
30%
20%
10%
0%
Yes No Can’t say
Percentage 76% 15% 9%

Interpretation
According to this survey we found that 76% of respondents feel that Online
trading is safe and 15% are feeling that Online trading is not safe and other 9% of the
respondents are reacting that they can’t say whether it is safe or not.

72
 FINDINGS
 It is observed that, only 11 percentages of respondents are doing online trading
from four years. Rest of the respondents doing from less than four years.
 It identified that 40 percentages of respondents are unable to operate the online
trading.
 Only 10 percentages of respondents doing online trading regularly.
 It is observed that 50 percentages of respondents explained that lack of
experience in on line trading which unable to do business.
 55 percentages of respondents aware of online trading from the source of
electronic media.
 It is observed that 60 percentage easy to operate. And 15 percentage people find
no secure. so we can say that online trading is very simple to operate and easy to
understand.
 It is identified that 45 percentage of business people doing online trading.
 It is observed that 45 percentages of respondents are in the age group of 25-30.
 It is identified that 45 percentages of respondents are getting monthly income of
30000-40000.
 It is recognized that 76% of people feel that online trading is safe.
 It is clearly observed that most of young generation of people prefers online
trading. The percentage of the age group is 45%.

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 SUGGESTIONS
 It is suggested that the habit of doing online trading should develop among the
investors.
 Due to lack of knowledge 50 percentage of respondents are unable to operate
.It is suggested that demo classes will be conducted for the investors to operate
online trading.
 90 percentages of respondents are doing online trading occasionally. It is
suggested awareness will create to do online trading regularly.
 Less amount of investment in stock market business. Here it is suggested to
create idea about the returns of share market to the investors.
 It is suggested that awareness should create to every public about 100 percent
security of the investment.
 It is also suggested that awareness should create every household than
investment in gold.
 Can improve in that areas where service provide by other major competitors is
very strong in this area.
 To increase the awareness level of the company among the public.
 24*7 customer support can increase its value.
 The company must spread the awareness to its clients for the service like F&O
Equities to increase the satisfaction level of clients as we have find that there
is positive aspect between the satisfaction level of services provided by
Bonanja success in online trading.

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 CONCLUSION
Online trading is the new concept in the stock market. In India, online trading
is still at its infancy stage. Online trading has made it easy to trade in the stock market
as now people can trade while sitting at their home. Now stock market is easily
accessible by the people. There are some problems while doing the trade through the
internet. Major problem faced by online trader is that the investors are loyal to their
traditional brokers; they rely upon the suggestions given by their brokers. Another
major problem is that the people don’t have full knowledge regarding online trading.
They find it difficult to trade them, as a wrong entry made by them, can bring them
huge losses. Nevertheless to say that online trading has the bright future as the
percentage of the trade done through online trading is increasing day by day.

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 BIBLIOGRAPHY
Books
 Khan, M.Y. and Jain, P.K. (2004). “Financial Management”, 2nd Edition, Tata
McGraw Hill.
 Financial Management- Theory and Practice- Prasanna Chandra
 Management Accounting- R.K. Sharma and Sashi. K. Gupta
 Financial Management – I. M. Pandey Ninths Edition
 Moon, Ilkyeong (2001), “Inventory Management and Production Planning and
Scheduling”,

Annual Reports
 Company Annual Reports of 2014-2018 financial years

Websites
 www.kcpsugars.com
 www.moneycontrol.com
 management.about.com
www.entrepreneur.com

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 QUESTIONNAIRE

1. For how long you have been trading with on line-trading?

a) 1 year b) 2 years c) 3 years d) 4 years
2. How will you describe your experience with on-line trading till date?
a) Very easy to operate b) Very difficult to operate
c) Not secure d) Any other
3. What amount of money you invest normally?
a) 50000 b) 100000-150000
c) 150000-200000 d) Any other amount
4. How often do you trade?
a) Daily b) Weekly
c) Monthly d) Above one month
5. What shortcomings do you feel in Indian On-Line trading?
a) Lack of awareness b) Shortage of expertise
c) Shortage of infra structure d) Any other
6. Which media would you prefer the most for investment?
a) T.V b) Newspaper
c) Magazines d) Journal
7. What is your occupation?
a) Cultivation b) Education
c) Employee d) Worker
e) Business people f) None of the above
8. Age of the respondents?
a) 25-30 b) 31-35
c) 36-40 d) 41-50
9. Monthly income?
a) 10000 b) 15000
c) 20000 d) 30000
e) 40000
10. Do you feel safe online trading?
a) Yes b) No

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