OPENNNIG OF DMANT ACCOUNTS

AND
UNDERSTANDING THE USER ATTITUDE TOWARDS ONLINE TRADING
WITH PARTICULER REFERENCE TO ANGEL BROKING

Project Report submitted to

Angel Broking
in partial fulfillment, for the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
By
Sam Higginbottom Institute of Agriculture, Sciences and
Technologies
Allahabad, Uttar Pradesh- 221007

SUBMITTED BY:
Virendra Kumar
(09MBA056)

ACKNOWLEDGEMENT

1
“Knowledge is an experience gained in life, it is the choicest possession which should
be happily shared with others”.

Above all I love own my deep sense of gratitude to Almighty God for his
blessing, mercy; guidance and strength that made that it possible for me to accomplish
this great task.

I take this opportunity to express my sincere thanks to my advisor Mr. Manish

Tirkey. Joseph school of business studies, San Higginbottom Institute of Agriculture,
Technology And Science, Allahabad whose able guidance impetus behind my effort from
very conception to the end this work.

My sincere and profound thank to Prof. Dr. Masood Naseer (Dean) and all the
faculty members of Joseph school of business studies, SHATS whom the completion of
this project would have been virtually impossible.

I wish to thank Mr.Sanjay Rai (Branch manager) who trusted in my ability and
gave me this opportunity and helped me with his valuable insights in selecting our
research topic named “OPENNNIG OF DMANT ACCOUNTS AND
UNDERSTANDING THE USER ATTITUDE TOWARDS ONLINE TRADING
WITH PARTICULER REFERENCE TO ANGEL BROKING” as part of our
training.

I am indebted to Mr. Narendra Singh, (Asst.unit Manager) our coordinator

who gave me valuable time and shared with me his views and ideas now and again on the
research topic during the course of the study.

I also express our heartfelt thanks to Ms. Neha Prajapati (Crm-Advisor) for
giving us the proper direction, guidance and encouragement and providing all the
materials necessary in successfully completing our project work.

I acknowledge profusely the contribution of Mr. Sheraz (Risk management)

who helped me in carrying out the study.

During the study, I had to meet many personnel in the organization to conduct lot
of personnel interviews. I thank each and everyone who cooperated with me and gave
their valuable time and shared their knowledge as well as experience with me. Therefore
I could complete a meaningful study.

Last but not the least I express gratitude to my friends for their prayer and
continuous encouragement render to me throughout the period of my work without which
it would not have been a reality.

Thank each & every person and soliciting his or her good wishes for my future.

2
 Table of Contents

Chapter No. Contents Page No

List of Tables
List of Figures
Abbreviations
I Introduction
Company Profile
Product Profile
Need and Scope of the Study
Objectives of the Study
Limitation of the Study
II Research Methodology
Research Design
Research Tools
Area of work
Statistical tools used for analysis
III
Result and Discussion

IV
Recommendation

V
Conclusions

3
 ABBREVIATIONS

 NSE- National Stock Exchange of India Ltd.

 BSE-Bombay stock Exchange of India Ltd.

 SEBI-Securities Exchange Board of India

 NCFM-NSE’s Certification in Financial Markets

 NSDL-National Securities Depository Limited

 CSDL-Central Securities Depository Limited

 NCDEX-National Commodity and Derivatives Exchange Ltd.

 NSCCL-National Securities Clearing Corporation Ltd.

 FMC-Forward Markets Commission

 NYSE-New York Stock Exchange

 AMEX-American Stock Exchange

 OTC-Over-the-Counter Market

 LM-Lead Manager

 IPO-Initial Public Offer

 DP-Depository participant

 DRF-Demat Request Form

 RRF-Remat Request Form

 NAV-Net Asset Value

 EPS-Earnings Per Share

 DSCR-Debt Service Coverage Ratio

 S&P-Standard & Poor

 IISL-India Index Services & Products Ltd

 CRISIL-Credit Rating Information Services of India Limited

4
  CARE-Credit Analysis & Research Limited

 ICRA-Investment Information and Credit Rating Agency of India

 IGC-Investor Grievance Cell

IPF-Investor Protection Fund

INTRODUCTION
In a shot span of 22 years since inception, the Angel Group has emerged as one of the top
three retail stock broking houses in India, having membership of BSE, NSE and the two
leading Commodity Exchanges in the country i.e. NCDEX & MCX. Angel Broking is
also registered as a Depository Participant with CDSL.
The group is promoted by Mr. Dinesh Thakkar, who started this business as a sub-broker
in 1987 with a team of 3. Today the angel group is managed by a team of 1937 direct
employees and has a nation wide network comprising of 31+ Regional hubs, 150+
branches and 9000+ sub brokers & business associates. Angel is 100% focused on retail
stock broking business unlike any other larger national broking house. The group
currently services more than 730000+retail clients.
Angel habitually generates value added features without the cost burden being passed on
to the clients as they strongly believe that better understanding of client’s needs and
wants is their top priority. Their e-broking facility is one such effort, which gives the
client a platform to access state of the art trading facility at the click of a button.
Angel has always strived for delivering customer delight and developing strong long term
bonds with its clients as well as channel partners. Angel thrives on a vision to introduce
new and innovative products and services constantly. Moreover, Angel has been among

5
the pioneers to introduce the latest technological innovations and integrate them
efficiently within its business.
The mainline Business Activities of Angel are:
• Stock Broking
• Derivatives Trading
• Online Trading
• Wholesale debt market operations
• Depository services with CDSL
• Fundamental Research Services
• Technical Research Services
• IPO Distribution and Advisory
• Mutual Fund Distribution and Advisory
• Commodities Trading

COMPANY’S PROFILE

NAME OF THE COMPANY: ANGEL STOCK BROKING LTD.

REGISTERED OFFICE: G-1, Akruti Trade Centre,

Road No. 7, MIDC Marol,
Andheri (E),
Mumbai – 400 093

BRANCH OFFICE: ANGEL STOCK BROKING LTD.

G-5, LDA Centre-2,
Sardar Patel Marg, Civil Lines,
Allahabad-211001

FORM OF ORGANISATION: Private Sector

6
PROMOTER: Mr. Dinesh Thakkar

ACCOUNTING YEAR: 1ST April to 31st March

7
Source: ppt. of Angel broking

MANAGEMENT TEAM

Chairman and Managing Director : Mr. Dinesh Thakkar

Chief Investment Officer : Mr. Rajen Shah
Senior Research Analyst : Mr. Phani Sekhar
Table 1

ANGEL GROUP COMPANIES

Member on the BSE Depository Participant
Angel Broking Ltd.
with CDSL
Angel Capital & Debt Market Membership on the NSE Cash and Futures &
Ltd. Options Segment
Angel Commodities Broking
Member on the NCDEX & MCX
Ltd.
Angel Securities Ltd. Member on the BSE
Angel Infin Pvt. Ltd. NBFC registered with RBI
Mimansa Systems Pvt. Ltd. For Software Development
(Source : www.harmony.angeltrade.com)

REGIONAL OFFICES

• Ahmedabad
• Bengaluru
• Chennai
• Cochin
• Coimbatore
• Hyderabad
• Indore
• Jaipur
• Kanpur

8
 • Kolkata
• Lucknow
• Ludhiana
• Mumbai
• Nagpur
• Nashik
• New Delhi
• Pune
• Rajkot
• Surat
• Visakhapatnam
The Unique Features of Angel :
 Instant Online Fund Transfer with Multiple Banks
 BSE, NSE, F & O, MCX and NCDEX in a single screen
 Efficient uptime and greater stability for high speed
 Customized solutions as per client’s requirements
 Personalized Advisory services for HNI clients
 Call and Trade at 150+ branches across the country
 State of the art Technology and Infrastructure
 DP with CDSL with automated pay-in facility
 Instant Online technical support for clients
ANGEL’S VISION

9
Source: www.angelbroking.com

10
 ANGEL’S BUSINESS PHILOSOPHY

Source: www.angelbroking.com

INVESTMENT PHILOSOPHY

“Given the client’s risk profile, maximize performance by adhering to disciplined

investment approach backed by quality research.”
Angel’s investment philosophy is based on two key attributes:
1. Wealth Creation:
The creation of Wealth can be categorized as:
 Having money work for client
 Having others work for client
 Client Working for Money
2. Wealth Preservation :
As wealth grows, focus is shifted to striking a balance between asset creation and
preservation. Wealth preservation applies to day-to-day financial life which includes
managing cash flow and overall risk management.

OBJECTIVE OF ANGEL INVESTMENT PHILOSOPHY

11
Angel’s objective at all time is to protect and then grow client’s portfolio.
The primary aim is to avoid the thoughts of the declining market and not necessarily out-
perform the rapidly rising market but to consolidate both the periods, which would result
in out-performing the market along with wealth creation.
Angel’s investment philosophy is outlined by in-depth focus on a disciplined long term
investment approach in potential multi-baggers.
The 3 important tenets that we look for in any stock are:
 Consistent, steady & sustainable returns
 Margin of safety
 Low volatility
PRODUCT AND SERVICE
EQUITY-NSE/BSE/NSE FNO/BSE FNO
COMMODITY-MCX/NCDEX
CURRENCY TRADING
IPO ADVISORY
PORTFOLIO MANAGEMENT SERVICES
DEPOSITORY SERVICES
THIRD PARTY PRODUCT AS MF/INSURANCE
INVESTMENT ADVISORY
NRI SERVICES

E-Broking Products

Angel Investor Angel Trade Angel Diet

Browser Based Browser Based Application Based

Static rates; works behind Streaming quotes Streaming quotes
most firewalls
4 exchanges in single screen 4 exchanges in single screen 4 exchanges in single screen

Investors (Delivery based Investors and Traders Traders

clients)
PREAPID BROKERAGE

ATTRACTIVE FOR ALL GROUP OF CLIENTS

SPECIAL BROKERAGE RATE

12
OTHER BENEFITS
NO MINIMUM BROKERAGE WILL BE CHARGED

Portfolio Management Services

(PMS)

ANGEL OYSTER
ANGEL BLUCHIP
ANGEL GROWTH
ANGEL LOTUS
ANGEL GOLD
ANGEL USP

Top 3 best broking firm in India

Award by dun & Bradstreet for largest distribution network in 2009
Covet major volume driver award in best from 2004-05 to 2008-09
No 1 position in terms of trading terminals
Ifc stake 12.35% in angel broking ltd
Personalize services
24*7 web-enabled back offices
Retail centric research
Transparency
Customized services
Four free e-broking software
Free e-chopda software
Quality assurance
Auto pay in facility
Pay-out of fund facility from 18 banks
Auto pay in-facility in case share sold from demat (poa)
Minimum charges –lowest transaction charges in the country
One stop shop for all financial requirement
Interest on debit from t+4 days
M-connect facility
Share kept in pool account can be used as margin trading
700000+client based and 9000+channel partner
One to one communication between client and relationship managers
Effective investment advice and research reports for clients
Daily calls before market hours
Instant query resolution

13
 ANGEL DEMAT ACCOUNT

OVERVIEW OF DEMAT ACCOUNT

In India, Demat account the abbreviation for dematerialized account, is a type of broking
account which dematerializes paper-based physical stock shares. The dematerialized
account is used to avoid holding physical share: the share are bought and sold through a
stock broker. The account is popular in India. The Securities and Exchange Board of
India (SEBI) mandates a demat account for share trading above 500 shares. As of April
2006, it become mandatory that any person holding a demat account should possess a
Permanent Account Number (PAN), and the deadline for submission of PAN details to
the depository lapsed on January 2007.

Procedure
1. Fill demat request from (DRF) (obtained from a depository participant or DP
with whom your depository account is opened).
2. Deface the share certificate(s) you want to dematerialize by writing across
Surrendered for dematerialization.
3. Submit the DRF & Share certificate(s) to DP. DP would forward them to the
issuer / their R&T Agent.
4. After dematerialization, your depository account with your DP would be
credited with the dematerialized securities.

14
15
16
17
18
19
DEPOSITORY:
A “Depository” is a facility for securities, which enables securities to be processed by
book entry. To achieve this purpose, the depository may immobilize the securities or
dematerialize them(so that they exist only as electronic records). India, a depository is an
organization, which holds the beneficial owner’s securities in electronic form, through a
registered Depository Participant (DP). A depository functions somewhat similar to a
commercial bank.
To avail of the services offered by a depository, the investor has to open an account with
a registered DP.

CLEARING CORPORATION

This term applies to an entity responsible for clearing and settlement of trades done by
clearing members on a recognized stock exchange. A Clearing corporation/ clearing
House of a stock exchange is admitted to the depository system for clearing and
settlement of securities traded on their respective stock exchanges. For electronic
settlement of securities in demat form, the concerned CC/CH of stock exchange needs to
have electronic connectivity with the depository .
Settlement

Once you have bought or sold shares, the transaction is complete only when you have got
the shares you purchased, or received money for the shares you sold. This is called
settlement in the mechanism through which all parties to a transaction get their
receivables i.e. either funds or shares is known as ‘clearing and settlement’ or simply
‘settlement’.
Settlement NC

The number is a unique number given to each settlement period of a particular exchange
in order to differentiate that settlement that settlement from all the other settlements of
that particular exchange.
T+2 rolling settlement

In a rolling settlement, for all trades executed on trading day. i. e. T day the obligations
are determined on the T+1 day and settlement on T+2 bases i.e. on the 2nd working day.
For arriving at settlement day all intervening holidays, which include bank holidays,
NSE holidays, Saturdays and Sunday s are excluded. A tabular representation of the
settlement cycle for rolling settlement is given below:
Pay-in

The securities sold are delivered to the exchange by the sellers and funds for the
securities purchased are made available to the exchange by the buyers.
Pay-out

The securities purchased are delivered to the buyers and the funds for the securities sold
are given to the sellers by the exchange.

20
Auction

On account of non-delivery of securities by the trading member on the pay-in day, the
securities are put up for auction by the exchange.

Demat
Demat is an abbreviation of Dematerialization.

Trading
Trading Account is an account required for buying & Selling Shares.

Trading type
Intra Day Trade: - Both Buying and Selling is done on the same day.
Delivery based Trading: - Buy today Sell any time.

BTST
Buy today Sell tomorrow.

Transaction
Off market -market transaction is a sale or purchase in which cc/ch is involved.

On market - off market transaction is a sale or purchase in between two client and in
which cc/ch is not involved.

Short Selling
Short selling is selling the shares which you do not own. The term ‘short’ here signifies
that you do not hold the shares being sold. The first thought popping up in your mind
would be – where do these shares come from which you are selling without possessing
them in your portfolio of stocks.
These come from your broker/brokerage firm that lends you the shares in lieu of your
investment as collateral. You short sell these shares but subsequently you have to close
the short by buying back the shares from market and then return it to your
broker/brokerage firm. You are also charged some interest for the loan of shares you have
taken.

T for T share
Exchange considers each trading individually and settlement of each trade executed
settled separately hence these shares are not allowed in intraday.

Contract note
Contract Note is a confirmation of trades done on a particular day on behalf of the client
by a trading member.

21
Brokerage
As per SEBI guidelines, a STOCK BROKER/DP can charge maximum brokerage
Amount of 2.5%(on both sides) to his clients.
As per SEBI guidelines, a SUB-BROKER can claim maximum brokerage Amount of
1.5%(on both sides) from his broker.
If client has sold 1oooo shares of a scrip@ 50, what is the brokerage that the client can be
charged?(brokerage rate-0.50p)
Ans:
Brokerage = Brokerage rate * value of the transaction
=0.50p*(10000 shares *50)
=2500/-Rs.

Derivative
Derivative is a product whose value is derived from the value of one or more basic
variables, called underlying. Equity, Index ,FOREX, commodity can be the underlying
asset.

Forwards
A Forward Contract is a customized contract between two entities, where settlement
takes place on a specific date in the future at today’s pre-agreed price.

Future
An agreement between two parties to buy or sell an asset at a certain time in the future at
a certain price.

Options
A contract which gives the right, but not an obligation, to buy or sell the underlying at a
stated date and at a stated price.

Types of Options:
Call’s – give the buyer the right but not the obligation to buy a given quantity of the
underlying asset, at a given price on or before a given future date.
Puts’- give the buyer the right but not obligation to sell a given quantity of the underlying
asset, at a given Price on or before given future date.

DP AMC & Transaction Charges

SCHEMES
Charges
H.N.I./Traders Investors
Annual Membership Charges Rs.700/- Rs. 300/-

Deliveries/Debit (Market & Off Market)

 Within Angel DP
 Outside Angel DP Rs. 11/- txn Rs. 11/- txn
(Charges are inclusive of CDSL tariff) Rs. 16/-txn Rs. 21/- txn

22
 INDUSTRY DETAIL

THE HISTORY OF THE INDIAN CAPITAL MARKET

The history of Indian capital market back to the 18 th century when east India company
securities were traded in the country. Until the end of the 19th century, Securities trading
were unorganized and the main trading centers were Bombay and Calcutta. Of the to
Bombay was the chief trading centre were in bank shares were the major trading stock

Trading was at that time limited to a dozen brokers their trading place was under a
banyan tree in front of the Town hall Bombay. These stock brokers organized an informal
association in 1875- native shares and stock broker’s association Bombay. The stock
exchanges in Calcutta and ahemedabad also have trading centre came up later. The
Bombay stock exchange was recognized in may 1927 under the Bombay securities
contract control act 1925.

The capita market was not well organized and develops during the British rule because
the British government was not interested in the economic growth of the country. As a
result many foreign companies depended on the London capital market for funds rather
then on the Indian Capital Market.

In the post independence period also the size of the capital market remained small.
During the first and the second five year plan the government emphasis was on the
development of the agricultural sector and public sector under takings.

In the 1950s speculation became rampant; the stock market came to the known as satta
bazaar. Despite speculation non payment or defaults were not very frequent. The
government enacted the securities contracts act in 1956 to regulate stock markets. The
company’s act 1956 was also enacted.

23
In 1960 badla came in to existence. Badla provided a mechanism for carrying forward
positions as well as for borrowing funds. Financial institutions such as LIC and GIC
helped to revive the sentiment by emerging as the most important group investors. The
first Mutual Funds of India, The Unit Trust of India came into existence in 1964.
.
In the 1970s Badla Trading was resumed under the disguised form of “Hand delivery
contracts” this revived the market. July 6th, 1974 when the Government promulgated the
dividend restriction ordinance, restricting the payment of dividend by companies to 12 %
of the face value or 1/3 of the profits of the companies that can be distributed as
computed under section 369 of the companies act whichever was lower. This led to a
slump in market Capitalization at the BSE by about 20 % over night and the stock market
did not open for nearly a fortnight. A little known entrepreneur, Dhirubhai Ambani,
tapped the Capital Market. The scrip, Reliance Textiles is Still a Hot favorite trading at
all stock exchanges.

The 1980s witnessed an explosive growth of the securities market in India. The
government’s liberalization process, participation by small investors, speculation, default,
Ban of Badla, and resumption of Badla continued. Convertible debentures emerged as a
popular instrument in primary market.

The 1990s will go down as the most important decade in the history of capital market of
India liberalization and globalization were the new terms coined and marketed during this
decade. Major capital market scams took place in the 1990s.

The securities scam of March 1992 involving Brokers as well as Bankers was one of the
biggest scam in the history of capital market. In the subsequent years owing to free
pricing, many unscrupulous promoters, who raised money from capital market, proved to
be fly-by-night operators.

24
The 1991-92 the Indian stock market witnessed a sea change in terms of technology.
Technology brought Radical changes in the trading mechanism. The Bombay stock
exchange was subject to nation wide competition by two new stock exchange-National
Stock Exchange set up in 1994 and over the counter Exchange of India set up in 1992.
The National securities clearing corporation and National securities depository limited
were set up in April 1995 and November 1996 respectively for improved clearing and
settlement and dematerialized trading. Moreover, rolling settlement was introduced in
January 1998 for all companies.

The Indian capital market entered the 21st century with the Ketan Parekh scam. As a
result of the scam Badla discontinued from July 2001. Trading of futures commenced
from June 2000 and Internet trading was permitted in February 2000.

It has been a long journey for the Indian capital market. Now the capital market is
organized, fairly integrate, mature more global and modernized.

The primary function of the system is to provide a link between savings and investment
for the creation of new wealth and to permit portfolio adjustment in the composition of
the existing wealth.

25
 SAVINGS FINANCE INVESTMENT

CAPITAL
FORMATIOON

ECONOMIC
GROWTH

Figure 1 : Concept of Financial System

The progress of savings, finance and investment involves financial institutions, markets
instruments, and services. Above all, supervision control and regulation are equally
significant. Thus financial management is in integer part of the financial system. On the
basis of the empirical evidence we can defined inter relationship between varied
segments of the economy are illustrated below:

FINANCIAL
SYSTEM

FINANCIAL
MARKET FINANCIAL FINANCIAL FINANCIAL

INSTITUTION INSTRUMENTS SERVICES

26
 Figure 2 : Financial System
A financial system provides services that are essential in a modern world. The use of a
stable, widely accepted medium of exchange reduces the costs of transaction. It facilitates
trade and, therefore specialization in production. Financial assets with attractive yield,
liquidity and risk characteristics encourage saving in financial form. By evaluating
alternative investments and monitoring the activities of borrowers, financial
intermediaries increase the efficiency of resource use. Access to a variety of financial
instruments enables an economic agent to pool, prize and exchange risk in the market.

Stock exchange is a market in which securities are bought and sold and it is an essential
component of a develop capital market. The securities contracts (regulation) act , 1956,
defines stock exchange as follows, “ it is an association, organization or body of
individuals, weather incorporated or not , established for the purpose of assisting,
regulating and controlling of business in buying, selling, and dealing in securities”. A
stock exchange, thus, imparting marketability and liquidity to securities, encourage
investments in securities and assist corporate growth stock exchange is regarded as “an
essential concomitant of the capitalist system of economy. It is indispensable for the
proper functioning of corporate enterprise. It brings together large amounts of capital
necessary for the economic progress of a country. It is the citadel of capital and the pivot
of money market. it provides necessary mobility to capital and directs the flaw of capital
into profitable and successful enterprises .it is the barometer of general economic
progress in a country and exerts a powerful and significant influence as a depressant or
stimulate of business activity I t may be defined as the place or market where securities of
joint stock companies and of government or semi government bodies are dealt in.”

STOCK EXCHANGES

India boasts of the oldest stock exchange in Asia -- the Bombay Stock Exchange is 125
years old. There are 23 recognised exchanges spread across the country, but a process of
consolidation is now under way. Many of the regional stock exchanges have started
aligning themselves with one or both of the two large exchanges (the Bombay Stock

27
Exchange and the National Stock Exchange) both of which have VSAT networks that
give them a nation wide reach.

The National Stock Exchange is an unlisted for-profit company set up by some of the
leading financial institutions of India. Most of the remaining stock exchanges are broker-
owned (mutual) organisations, but the Bombay Stock Exchange is actively considering
demutualisation. The Securities and Exchange Board of India (SEBI), the apex regulator
of the capital market has regulations that mandate a minimum number of outside
directors on the governing board and provide greater autonomy to the professional
executives in the day-to-day running of the exchange.

Trading and settlement

India’s stock exchanges are fully computerised order driven or order-cum-quote driven
systems. The country has made rapid strides towards a dematerialised trading
environment on the basis of a competing depositories model. Investors have the choice of
holding their stocks in physical or dematerialised form, but trading in the exchanges is in
mandatory dematerialised mode in most important stocks. As of October 2000, about
98per cent of the trading in the stock exchanges is in dematerialised mode.

India has put in place a regulatory regime for internet trading of stocks. A large number
of online brokers have started operations. More brokers are expected to follow when the
exchanges put in place an ASP (Application Service Provider) model for online trading
software. However, currently, the level of penetration of online trading is extremely
small.

The stock exchanges currently run two parallel settlement systems. Practically all the
trading takes place in the account period settlement system in which all trades during a
weekly account period are netted off and the net obligations are settled five business days
after the end of the period. The other unpopular system is that of rolling settlements
where trades of each day are settled on a T+5 basis. SEBI is currently working on
mandatorily shifting all stocks in a phased manner to the rolling settlement system.

28
Further improvements in the settlement system to T+3 or beyond would have to wait for
improvements in the payment system.

However, account period settlement does not give rise to significant systemic risks in
India because of stringent end of day and intra-day margining systems. Put simply, the
weekly settlement is regarded as akin to a one-week futures contract, and the systemic
risk is taken care of by using futures style margining. The exchange imposes daily mark
to market and initial margins on the brokers to eliminate settlement risk. Exchanges also
have clearing houses to guarantee settlements on the exchange. As a result, there have
been no settlement failures in the principal stock exchanges during the last five years
Table 2

Name Address
Phiroze Jeejeebhoy Towers,
THE BOMBAY STOCK EXCHANGE Dalal Street,
Mumbai- 400 001.
Manek Chowk,
The Ahmedabad Stock Exchange Association Ltd,.
Ahmedabad - 380 001
'M' Block, First Floor,
Unity Building,
BANGALORE STOCK EXCHANGE LTD,.
J.C. Road, Bangalore.

217, Budhraja Building,

HUBANESHWAR STOCK EXCHANGE ASSN., Jharpada Cuttack Road,
LTD,. Bhubaneswar, Orissa - 751
006.
THE CULCUTTA STOCK EXCHANGE 7, Lyons Range,
ASSOCIATION LTD,. Calcutta - 700 001.
Veekshanam Road
COCHIN STOCK EXCHANGE LTD., P.B. 3529, Ernakulam,
Cochi - 682 035.

29
 3&4/4B, Asaf Ali Road,
THE DELHI STOCK EXCHANGE ASSN. LTD.,
New Delhi 110 002.
Saraf Building Annexe A.T.
THE GAUHATI STOCK EXCHANGE LTD,. Road,
Guwahati - 781 001.
Bank Street,
THE HYDERABAD STOCK EXCHANGE LTD,.
Hyderabad - 500 001.
Rajasthan Chamber Bhawan,
JAIPUR STOCK EXCHANGE LTD,. M.I. Road,
Jaipur - 302 003.
4th Floor,
Rambhavan Complex,
KANARA STOCK EXCHANGE LTD.
Kodialbail,
Mangalore - 575 003.
Lajpat Rai Market,
THE LUDHIANA STOCK EXCHANGE ASSN.
Clock Tower,
LTD.
Ludhiana 141 008.
'Exchange Building',
Post Box No.183,
MADRAS STOCK EXCHNAGE LTD.
11, Second Line Beach,
Chennai - 600 001

MADHYA PRADESH STOCK EXCHANGE LTD. 67, Bada Sarafa,

Indore - 452 002.
Bihar Industries Assn.
Premises,
THE MAGADH STOCK EXCHANGE LTD.
Sinha Library Road,
Patna - 800 001.
PUNE STOCK EXCHANGE LTD. 1177,Budhwar Peth,
Bank of Maharashtra Bldg.,

30
 2nd Floor,
Bajirao Road,
Pune 411 002.
SAURASHTRA KUTCH STOCK EXCHANGE POPAT BHAI
LTD., Rajkot - 380 002.
Padam Towers,
THE UTTAR PRADESH STOCK EXCHANGE
14/113,Civil Lines,
ASSN. LTD.
Kanpur - 208 001
101, Paradise Complex,
Tilak Toad,
VADODARA STOCK EXCHANGE LTD.
Sayaji Gunj,
Vadodara - 390 005.
Chamber Tower,
COIMBATORE STOCK EXCHANGE 8/732,Avvinashi Road,
Coimbatore 641 018.
Kingsway Building,
MEERUT STOCK EXCHANGE LTD. 345, Bombay Bazar,
Meerut Cantonment - 250 001.
Maker Towers "F" Cuffe
OTC EXCHANGE OF INDIA. Parade,
Bombay - 400 005.
Mahindra Towers,
THE NATIONAL STOCK EXCHANGE OF
A-Wing, RBC, Worli,
INDIA LTD.
Mumbai 18

31
OVERVIEW ABOUT CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED
(CDSL)

CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in India. It
commenced its operations on March 22, 1999. It was set up BSE and other co –
sponsored with the net worth of Rs. 104 crores. In it, BSE has a 45 % stake while others
have 55 % stake. In the same year it has Five Stock Exchanges established connectivity
with it for offering trade in Demat securities and 765 companies signed up with it to get
their securities admitted for dematerialization. It has 13 DPs in 91 cities across 168
locations covering 320 cities. Other co – sponsored are as under.

 State Bank of India

 Bank of India
 Bank of Baroda
 HDFC Bank

CDSL has also attained membership of the Asia – Pacific Central Securities Depository
Group (ACG). ACG has 22 members including depositories from Japan, Hong Kong,
Singapore, Malaysia, Australia, and New Zealand. Membership of the organization is

32
expected to help CDSL enhancing its knowledge base and contributing to the
development of other member organizations in the best international practices, settlement
risk management, cross-border linkage and technological development. This, in turn,
would help CDSL to secure foreign institutional investors’ business through their
custodian.

Operations Performed by CDSL

 Carrying out actually share transactions

 To do PSU disinvestments
 To provide Centralized system at one e-space
 To secure Foreign Institutional Investors’ business
 Dematerialization of the Securities
 Pledge creation in against the securities
 Trading and settlement on day-to-day basis
 Work as a custodian of its clients

33
 COMPETITORS

 STOCK HOLDING CORPORATION OF INDIA LIMITED

 ICICI direct.com

 SHARE KHAN

 UTI SECURITIES

 MARWADI GROUP

 HDFC SECURITIES

 KOTAK SECURITIES

 KARVY STOCK BROKING LIMITED

 RELIANCE MONEY

 ANAGRAM SECURITIE

Table 3
Opening Fee Brokerage
Parameters Trading A/c Demat A/c Delivery Square Off
ANGEL 100 460 .30 .06
SHCIL 100 400 .55 .12
ICICI Direct.com NIL 750 .75 .18
SHAREKHAN NIL 750 .50 .10
UTI SECURITIES NIL 600 NIL NIL
MARWADI GROUP NIL 125 .50 .10
HDFC SECURITIES 399 .50 .15

34
KARVY STOCKBROKING LTD. 100 NIL .30 .05
RELIANCE MONEY NIL 750 Rs.12/trade
ANAGRAM SECURITIES 100 400 .40 .10

(source: Angel Broking Trading.com)

35
 REGULATORY ENVIRONMENT DETAILS

LEGISLATION

The four main legislations governing the securities market are:

(a) The Securities Contracts (Regulation) Act, 1956, preventing transactions in securities
by regulating the business of dealing insecurities
(b) The Companies Act, 1956, which is a uniform law relating to companies throughout
India
(c) The SEBI Act, 1992 for the protection of interests of investors and for promoting
development of and regulating the securities market, and
(d) The Depositories Act, 1996 which provides for electronic maintenance and transfer of
ownership of dematerialized securities.

RULES AND REGULATIONS

The Government has framed rules under the SCRA, SEBI Act and the Depositories Act.
SEBI has framed regulations under the SEBI Act and the depositories Act for registration
and regulations of all market intermediaries, for prevention of unfair trade practices,
insider trading, etc. Under these Acts, Government and SEBI issues notification,
guidelines, and circulars which need to be compiled with the market participants. The
self-regulatory organizations (SROs) like Stock Exchanges have also laid down their
rules.

36
 REGULATORS

The regulators ensure that the market participants behave in a desired manner so that the
securities market continues to be a major source of finance for corporate and government
and the interest of investors are protected. The responsibility for regulating the
securities markets shared by Department of Economic Affairs (DEA), Department of
Company Affairs (DCA), Reserve Bank of India (RBI), Securities and Exchange Board
of India (SEBI) and Securities Appellate Tribunal (SAT).

37
 OBJECTIVES OF SEBI

The promulgation of the SEBI ordinance in the parliament gave status to SEBI in 1992.
According to the preamble of the SEBI, the three main objectives are:
 To protect the interests of the investors in securities
 To promote the development of securities market
 To regulate the securities market

FUNCTIONS OF SEBI

The main functions entrusted with SEBI are:

 Regulating the business in stock exchange and any other securities market
 Registering and regulating the working of stock brokers, share transfer agents,
bankers to the issue, trustees of trust deed, registrars to an issue, merchant bankers,
underwriters, portfolio managers, investment advisers and such other intermediaries
who may be associated with securities market in any manner.
 Registering and regulating the working of collective investment schemes
including mutual funds
 Promoting and regulating self-regulatory organizations
 Prohibiting fraudulent and unfair trade practices in the securities market
 Promoting investors education and training of intermediaries in securities market
 Prohibiting insiders trading in securities
 Regulating substantial acquisition of shares and take over of companies
 Calling for information, undertaking inspection, conducting enquiries and audits
of the stock exchanges, intermediaries and self-regulatory organizations in the
securities market.

38
 REGISTRATION OF INTERMEDIARIES

The intermediaries with securities market shall buy, sell or deal in securities after
obtaining the registration from SEBI, as required by section 12:

1. Stock-broker
2. Sub-broker
3. Share transfer agent
4. Banker to an issue
5. Trustee of the trust deed
6. Registrar to an issue
7. Merchant banker
8. Underwriter
9. Portfolio manger
10. Investment advisor
11. Depository
12. Depository participant
13. Custodian of securities
14. Foreign institutional investor
15. Credit rating agency
16. Collective investment schemes
17. Venture capital funds
18. Mutual funds
19. Any other intermediary associated with the securities market

39
INNOVATIVE PRACTICE EMPLOYED

40
 RESEARCH

INTRODUCTION:

This research has been conducted to find out the current and the future scenario of e-
Broking.

In the past, investors had no option but to contact their broker to get real time access to
market data. But now with the concept of e-Broking, it is possible to get real time data
online without the need of contacting broker. In e-Broking system, the software is
directly made available to the end-user and he/she can access real time data immediately.

RESEARCH OBJECTIVE:

There must be an objective behind any research. Without objective there is no meaning of
research.

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden
and which has not been discovered yet. As each research has some or the other objectives
the following are the objectives of this research:

• The primary objective of study is to demat account of angel broking.

• To find the awareness of online trading in angel broking
• To find the feature of online trading which can convert the offline traders to
online trading.
• To identify potential customers

41
 RESEARCH METHODOLOGY

RESEARCH DESIGN:

For any researcher the research methodology is the most important criteria to decide
before the actual research process starts. There are many methods for conducting the
research some of them are as under:

The design of a research is a plan or a model that helps researcher to conduct a formal
investigation and survey. It is an application of methods and procedures for acquiring the
information needs for getting a desire out come. It decides the sources of data and
methods for gathering data. A good design insures that the information obtained is
relevant to the research question and that it was collected by objectives. Since, research
design is simply the frame work or plan for a study. It is a blue print that of a house
devised by an architect. My approach to research is descriptive and quite specific.

Out of various research methods the research method, which was most suitable to my
research, was Exploratory Research because it provides me all the opportunities to
cover the all the aspect that I require to conduct the research and get an appropriate out
come.

SAMPLING DESIGN:
The Sampling Design taken here is Non-Probability Convenience based Sampling.

42
DATA COLLECTION:

The task of data collection begins after a research problem has been defined and research
design/plan chalked out. While designing about the method of data collection to be used
for the study, the researcher should keep in mind two types of data.

There are 2 sources of data i.e.

1) Primary Data:

The data, which are collected for the first time, directly from the respondents to
the base of knowledge & belief of the research, are called primary data.

The normal procedure is to interview some people individually or in a group to get a

sense of how people feel about the topic.

So far as this research is concerned, primary data is the main source of information.
The data collected is through questionnaire & information provided by the
respondent.

2) Secondary Data:
When data are collected & compiled in a published nature, it is called secondary data.
So far as this research is concerned Internet and the Company brochures and
pamphlets have been referred to.

43
Sampling Process:
It is true that it’s very difficult to do the research with the whole universe. As we know
that it is not feasible to go for population survey because of the numerous customers and
their scattered location. So for this purpose sample size has to be determined well in
advance and selection of sample also must be scientific so that it represents the whole
universe.

So far as this research is concerned, due to time constraint the sample size taken is of 100
respondents of Allahabad city.

Mode of data collection:

Personal visit & filling up of the questionnaire, with little bit of observation.

Table 1

Sample Universe Allahabad city

Type of Sampling Non Probability Convenience
based Sampling
Sample size 55 respondents
Research Instrument A structured formatted
questionnaire

Taking in to consideration that the research instrument selected by me was the

questionnaire because it gives more flexibility in terms of collection of the data and one
has a chance to meet the responder personally and have an idea of getting an important
unknown data that can be collected through their behavior.

44
The following are the findings from this research
• Please tell me your age?
Table2
Different group of Age No. of sampling
21-35 35
36-50 10
51-65 10
Total 55

Age

10
21-35
36-50
10 35
51-65

The Sampling technique was Random sampling so; there is no fixed number of
respondents for the specific age group. The above graph indicates the age group of the
people investing in share market or interested to invest in share. It can be noted that
among the 100 respondents, 35 users fall in the age group of 21-35, 10 user falls in the
age group of 36-50 and 10 user falls under the age group of 51-65.

45
 • What is your occupation?
Table3
Type of Occu No. of Sampling
Pation
Businessman 25
Govt. Servant 5
Employee 10
Others 15
Total 55

The above graph shows the occupation of the persons who invest in share or interested to
invest in share market. The highest no. of users fall under the category of businessman.
This shows that persons having their business can easily invest in share market whenever
they are free or whenever they wish to trade. The category of others include mostly
students.

46
What is your average annual income?
Table4
Income No.
Less than 1 lac 20
1 – 2 lac 17
2 – 3.5 lac 8
3.5 – 5 lac 5
5 or more lac 5
Total 55

The above graph shows the income of the person. More of them fall under the category of
less than Rs. 1 lac. There are almost 5 users that fall in the income range of Rs. 5 lac or
more. It can be interpreted that persons in the income range of Rs. 5 lac or more have
less time to trade or look after the markets themselves. So even if they invest, they
usually prefer offline trading.

47
Do you have any saving account? In which bank?
Saving account No. of investors
bank Commercial 22
Post office 12
LIC 11
Estate 10
Total 55

The above graph shows that more people have saving in commercial bank (i.e. SBI, BOI
BOB). After that invest their money in Post Office, LIC.Estate.

48
Which mode of trading alternative do you use?
□ Online Trading □ Offline Trading

Table 5
Online Trading No.
Online users 9
Offline users 46

Graph 1

The above graph shows the users and non users of online trading. The users of online
trading are very less compared to that of offline traders. Among 55 respondents only 9
respondents use online trades and the rest use offline trading. This shows that the
concept of e-Broking is not so prevalent in the market. People still prefer to use the
traditional offline method of trading.

• In which Stock Broking House do you prefer to invest ?

49
Table6
Broking House No.
Angel 10
India-bulls 10
India Infoline 20
Others 15

Graph 5

The above graph shows the various broking houses from where the user prefers to invest.
This shows that Angel has more market area to cover by its unique features. This shows
the strong position of competitors in the market and the scope for Angel to expand its
business.

50
 DATA ANALYSIS AND FINDINGS

There are lots of players in the market including number of broker and sub brokers in the
market. The facilities of angel broking demat account is better than other broking house
but very few people know about it.

The study may not include the sub brokers as for the sake of convenience; I restricted my
survey taking into consideration their Name, Fame & also the products and services they
give to their customers such as trading on phone, low brokerage, low trade charges, the
funding facilities, the deposit ratios etc… This survey is especially focused on the

For any researcher it is important that how one has analyzed his or her data in way that it
can be clearly interpreted by him and the proper results can be derived.

51
 CONCLUSIONS

1. Angel Demat Account is better than other Demat, Angel haves good return
on investment. A good brand is always welcomed over here people are aware of
quality.
2. From the research carried out, it can be concluded that presently the
concept of e-Broking is not prevalent in the market. Still the traditional method of
offline trading is preferred by the people. As it is a new concept, it will take time for
people to change their mode of trading.
3. The investors are mostly businessman. Other persons falling in the
category of employee, govt. servants or students are either not aware of Demat
account or are not mentally prepared for using e-Broking concept. Such people can
be made aware about the benefits of demat a/c and e-Broking and it’s uses should be
properly conveyed so that people become ready to invest in share market.
4. The potential customer for Angel Broking House consist of professionals,
employees and govt. servants because these persons are either not investing or investing
through other broking houses. The persons investing from other broking houses can be
converted to the customers of Angel Broking by conveying its unique features and the
low brokerage cost and the rest can be educated about stock market.

52
 LIMITATIONS OF THE STUDY

The limitations of this study are as follows:

• Area:
The area was limited only to Jamnagar city. The result may have varied, if it was
conducted somewhere else.

• Sample Size:
The Sample size taken is only 55 due to time constraint; which may not result in very
accurate results.

• Time Limit:
The time limit taken for conducting the research was very less which could also be
one of the limitations of the study.

53
 RECOMMENDATIONS

• The Company can create awareness among the customers regarding invest in
share market so that they can open their demat account.
• To make the concept of e-Broking powerful, the Company must educate the
people regarding the benefits of e-Broking.
• A person having sound knowledge about trading in share market can be appointed
to solve the queries of customers.
• The potential customer can be identified by knowing the competitor’s customer
and they can be conveyed to trade with Angel Broking by conveying the unique
features and low brokerage provided by the Company.

54
 DISCUSSION GUIDE

1) What is your name?

……………………………………………………………………

2) Please tell me your name

……………………………………………………………………...

3) What is your Occupation?

………………………………………………………………………
4) What is your yearly average income?
……………………………………………………………………..
5) Do you have any source of income?
…………………………………………………………………….
6) (If yes) do you have a saving account? In which bank?
……………………………………………………………………….
7) Do you have any other investment?
………………………………………………………………………..
8) (If yes) Whom have you invested with?
………………………………………………………………………..
9) What are the best methods of investment method according to you?
…………………………………………………………………………
10) Have you ever invest in share market?
………………………………………………………………………….
11) Which broking house?
…………………………………………………………………………
12) Have heard about angel broking?
…………………………………………………………………………

13) Are you aware about e-Broking?

55
 ……………………………………………………………………………..
14) If yes, then which features of e-Broking you like the most?
□ Instant Online Fund Transfer with Multiple Banks
□ BSE, NSE, F & O, MCX and NCDEX in a single screen
□ No installation required
□ Advantages of mobility
□ Intraday / Historical charts with various indicators

15) Is there any disadvantage of e-Broking?

□ Yes □ No

16) If yes, then specify that

___________________________________________________________
___________________________________________________________
___________________________________________________________
___________________________________
Thank you for you kind cooperation

56
 BIBLIOGRAPHY

BOOKS :
• Dynamic memory How to Succeed in Share Market by Ashwini Sharma.
Publisher- Diamond Pocket Books (P) Ltd.
• Kotler Philip, Marketing Management, Eleventh Edition, 2002, Prentice-Hall
of India, New Delhi
• Angel Brochures and Pamphlets

WEBSITES :

• www.angelbroking,com
• www.angeltrade.com
• www.harmony.angeltrade.com
• www.nseindia.com
• www.bse.com
• www.sebi.gov.in

57