Online Trading Project Report

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Project Report ON “Awareness of on line trading and comparative analysis between different stock brokers” OF SUBMITTED FOR PARTIAL FULFILLMENT TOWARDS THE AWARD

PGDM SUBMITTED BY INDRA BHUSHAN (PG090011)

UNDER THE SUPERVISION OF Internal Guide

External Guide

Mr. Satya Prakash RayMr.Nandan Kumar(A.V.P.) Mr. Deepak Kumar Bagasi (S.M.)

TAKSILABUSINESSSCHOOL GREATER NOIDA (U.P.)

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TABLE OF CONTENT Title Pg.No 

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EXECUTIVE SUMMERY…………………… OBJECTIVES…of the study…………………………

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 

Scope of the study…………………………

 INTRODUCTION to the topic……………………….….

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 Introduction to the company……………………………..

83

 METHODOLOGY…ADOPTED…………...……

137

 QUESTIONNAIRE DESIGNING

145

 COLLECTION OF DATA

141 150

 DATA ANALYSIS…  FINDINGS…………………………………

164

 RECOMMENDATION & SUGGESTIONS………………….

165

 CONCLUSION…………………………………..…………..…

168

 REFERENCES/BIBILIOGRAPHY……………………………. 169

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Executive Summary There is growing competition between brokerage firms in post reform India. For investor it is always difficult to decide which brokerage firm to choose. Since this industry is growing having growth rate

that attract me for

doing my summer internship in this field that I can gather more and more knowledge about the share market. It was the great experience in that field and I am also very thankful to the India Infoline for giving me this opportunity to complete my project . Research was carried out to find that which brokerage house, people prefer and to figure out what people want while investing in stock market. This study suggests that people are reluctant while investing in stock and commodity market due to lack of knowledge. Main purpose of investment is returns and liquidity, commodity market is less preferred by investors due to lack of awareness. The major findings of this study are that the people are interested to invest in stock market but they have lack of knowledge.

Through this report we were also able to understand, what are our Company‟s (India Infoline Ltd.) strong and weak points, on the basis of which we come to know what can be the basis of pitching to a potential client.

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OBJECTIVE OF THE PROJECT 1. To know about the awareness of the consumers towards stock brokers and share market.

2. To study the market share of India Infoline Ltd in the Share market and identify the areas of competitive advantage over other players.

3. To study about consumer awareness & satisfaction, about operational Services & procedures of India Infoline ltd.

4. To study about the difficulties faced by the clients/trades while trading with India Infoline.

5. To identify the lacunae in the present system suggesting the measures improvement in current Trading system.

6. To study about the on line terminal terms and Dmat account of India Infoline ltd

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Sope of the study Actually I have got my summer internship on two topics-

1-awareness of online trading 2-comparative analysis of India Infoline and different stock brokers

I would like to tell that now a day on line trading is a booming field for investor because they can generate more returns as compared to other fields. I got golden experience regarding on line trading when I went to market for survey. Because I met no of person for knowing awareness of on line trading, Dmat account, and comparative analysis between different stock brokers.

This project will help for those who dose not have the knowledge about the trading and services offered by the different broker company. It will also help for the people who are interested in the trading and in share market.

This will also helpful for the company IIFL because it is containing the cooperative analysis of the different broker company, it also contains the strong and weak points of IIFL. By that way they can remove their weaknesses and can add more and more costumers in their series. Because people are facing a lot of problem regarding online trading.

Hence this project have multidimensional scope

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INTRODUCTION OF STOCK MARKET A stock, also referred to as a share, is commonly a share of ownership in a corporation.

In British English, the word stock has another completely different

meaning in finance, referring to a bond. It can also be used more widely to refer to all kinds of marketable securities. Where a share of ownership is meant the word share is usually used in British English.

History The first company that issued shares is considered to be the Northern-European copper mining enterprise Stora Kopparberg, in the 13th century.

Ownership The owners and financial backers of a company may want additional capital to invest in new projects within the company. If they were to sell the company it would represent a loss of control over the company. Alternatively, by selling shares, they can sell part or all of the company to many part-owners. The purchase of one share entitles the owner of that share to literally share in the ownership of the company, including the right to a fraction of the assets of the company, a fraction of the decision-making power, and potentially a fraction of the profits, which the company may issue as dividends.

8 However, the original owners of the company often still have control of the company, and can use the money paid for the shares to grow the company.

In the common case, where there are thousands of shareholders, it is impractical to have all of them making the daily decisions required in the running of a company. Thus, the shareholders will use their shares as votes in the election of members of the board of directors of the company. However, the choices are usually nominated by insiders or the board of the directors themselves, which over time has led to most of the top executives being on each other's boards. Each share constitutes one vote (except in a co-operative society where every member gets one vote regardless of the number of shares they hold). Thus, if one shareholder owns more than half the shares, they can out-vote everyone else, and thus have control of the company.

Shareholder rights Although owning 51% of shares does mean that you own 51% of the company and that you have 51% of the votes, the company is considered a legal person, thus it owns all its assets, (buildings, equipment, materials etc) itself. A shareholder has no right to these without the company's permission, even if that shareholder owns almost all the shares. This is important in areas such as insurance, which must be in the name of the company not the main shareholder.

So as long as the shareholders agree that the management (agent) are performing poorly they can elect a new board of directors which can then hire a new management team.

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Owning shares does not mean responsibility for liabilities. If a company goes broke and has to default on loans, the shareholders are not liable in any way. However, all money obtained by converting assets into cash will be used to repay loans, so that shareholders cannot receive any money until creditors have been paid.

Means of financing Financing a company through the sale of stock in a company is known as equity financing. Alternatively debt financing (for example issuing bonds) can be done to avoid giving up shares of ownership of the company.

Trading Shares of stock are usually traded on a stock exchange, where people and organizations may buy and sell shares in a wide range of companies. A given company will usually only trade its shares in one market, and it is said to be quoted, or listed, on that stock exchange. However, some large, multinational corporations are listed on more than one exchange. They are referred to as inter-listed shares.

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Buying There are various methods of buying and financing stocks. The most common means is through a stock broker. Whether they are a full service or discount broker, they are all doing one thing – arranging the transfer of stock from a seller to a buyer. Most of the trades are actually done through brokers listed with a stock exchange such as the New York Stock Exchange. There are many different stock brokers to choose from such as full service brokers or discount brokers. The full service brokers usually charge more per trade, but give investment advice or more personal service; the discount brokers offer little or no investment advice but charge less for trades. Another type of broker would be a bank or credit union that may have a deal set up with either a full service or discount broker.

There are other ways of buying stock besides through a broker. One way is directly from the company itself. If at least one share is owned, most companies will allow the purchase of shares directly from the company through their investor's relations departments. However, the initial share of stock in the company will have to be obtained through a regular stock broker. Another way to buy stock in companies is through Direct Public Offerings which are usually sold by the company itself. A direct public offering is an initial public offering a company in which the stock is purchased directly from the company, usually without the aid of brokers. When it comes to financing a purchase of stocks there are two ways: purchasing stock with money that is currently in the buyers ownership or by buying stock on margin. Buying stock on margin means buying stock with money borrowed

11 against the stocks in the same account. These stocks, or collateral, guarantee that the buyer can repay the loan; otherwise, the stockbroker has the right to sell the stocks (collateral) to repay the borrowed money. He can sell if the share price drops below the margin requirement, at least 50 percent of the value of the stocks in the account. Buying on margin works the same way as borrowing money to buy a car or a house using the car or house as collateral. Moreover, borrowing is not free; the broker usually charges you 8-10 percent interest.

Selling Selling stock in a company goes through many of the same procedures as buying stock. Generally, the investor wants to buy low and sell high, if not in that order; however, this is not how it always ends up. Sometimes, the investor will cut their losses and claim a loss. As with buying a stock, there is a transaction fee for the broker's efforts in arranging the transfer of stock from a seller to a buyer. This fee can be high or low depending on if it is a full service or discount broker. After the transaction has been made, the seller is then entitled to all of the money. An important part of selling is keeping track of the earnings. It is important to remember that upon selling the stock, in jurisdictions that have them, capital gains taxes will have to be paid on the additional proceeds, if any, that are in excess of the cost basis.

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Technology’s on Trading

Stock trading has evolved tremendously. Since the very first Initial Public Offering (IPO) in the 13th century, owning shares of a company has been a very attractive incentive. Even though the origins of stock trading go back to the 13th century, the market as we know it today did not catch on strongly until the late 1800s. Co-production between technology and society has led the push for effective and efficient ways of trading. Technology has allowed the stock market to grow tremendously, and all the while society has encouraged the growth. Within seconds of an order for a stock, the transaction can now take place. Most of the recent advancements with the trading have been due to the Internet. The Internet has allowed online trading. In contrast to the past where only those who could afford the expensive stock brokers, anyone who wishes to be active in the stock market can now do so at a very low cost per transaction. Trading can even be done through Computer-Mediated Communication (CMC) use of mobile devices such as hand computers and cellular phones. These advances in technology have made day trading possible. The stock market has grown so that some argue that it represents a country's economy. This growth has been enjoyed largely to the credibility and reputation that the stock market has earned.

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Types of shares There are several types of shares, including common stock, preferred stock, treasury stock, and dual class shares. Preferred stock, sometimes called preference shares, have priority over common stock in the distribution of dividends and assets, and sometime have enhanced voting rights such as the ability to veto mergers or acquisitions or the right of first refusal when new shares are issued (i.e. the holder of the preferred stock can buy as much as they want before the stock is offered to others). A dual class equity structure has several classes of shares (for example Class A, Class B, and Class C) each with its own advantages and disadvantages. Treasury stocks are shares that have been bought back from the public.

Derivatives A stock option is the right (or obligation) to buy or sell stock in the future at a fixed price. Stock options are often part of the package of executive compensation offered to key executives. Some companies extend stock options to all (or nearly all) of their employees. This was especially true during the dotcom boom of the mid- to late- 1990s, in which the major compensation of many employees was in the increase in value of the stock options they held, rather than their wages or salary. Some employees at dot-com companies became millionaires on their stock options. This is still a major method of compensation for CEOs.

14 The theory behind granting stock options to executives and employees of a corporation is that, since their financial fortunes are tied to the stock price of the company, they will be motivated to increase the value of the stock over time.

Primary market (IPO’s) In financial markets, an initial public offering (IPO) is the first sale of a company's common shares to public investors. The company will usually issue only primary shares, but may also sell secondary shares. Typically, a company will hire an investment banker to underwrite the offering and a corporate lawyer to assist in the drafting of the prospectus. The sale of stock is regulated by authorities of financial supervision and where relevant by a stock exchange. It is usually a requirement that disclosure of the financial situation and prospects of a company be made to prospective investors. The Federal Securities and Exchange Commission (SEC) regulates the securities markets of the United States and, by extension, the legal procedures governing IPOs. The law governing IPOs in the United States includes primarily the Securities Act of 1933, the regulations issued by the SEC, and the various state "Blue Sky Laws".

Secondary market The secondary market (also called "aftermarket") is the financial market for trading of securities that have already been issued in its initial private or public offering. Stock exchanges are examples of secondary markets. Alternatively, secondary market can refer to the market for any kind of used goods.

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History Secondary markets have a long history, beginning perhaps with a flourishing trade in commercial bills of exchange in 12th and 13th century France. It was the French King Philip the Fair who created the profession of broker, or "courtier de change," in order to regularize this market. Amsterdam's Bourse, which began operations in 1611, was the first true stock exchange, and this reflected the importance of Holland in world trade at that time.

Function In the secondary market, securities are sold by and transferred from one speculator to another. It is therefore important that the secondary market be highly liquid and transparent. The eligibility of stocks and bonds for trading in the secondary market is regulated through financial supervisory authorities and the rules of the market place in question, which could be a stock exchange.

Online Trading

What Does Online Trading Mean? The act of placing buy/sell orders for financial securities and/or currencies with the use of a brokerage's internet-based proprietary trading platforms. The use of online trading increased dramatically in the mid- to late-'90s with the introduction of affordable high-speed computers and internet connections.

Stocks, bonds, options, futures and currencies can all be traded online.

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Investopedia explains Online Trading The use of online trades has increased the number of discount brokerages because internet trading allows many brokers to further cut costs and part of the savings can be past on to customers in the form of lower commissions.

Another benefit of online trading is the improvement in the speed of which transactions can be executed and settled, because there is no need for paperbased documents to be copied, filed and entered into an electronic forma

ON LINE STOCK MARKET TRADING STOCK EXCHANGE Stocks (Shares, equity) are traded in stock exchange. India has two big stock exchanges (Bombay Stock Exchange - BSE and National Stock Exchange NSE) and few small exchanges like Jaipur Stock Exchange etc. Investor can trade stocks in any of the stock exchange in India.

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Stock exchanges of IndiaName of the Stock Sr_NoExchange OTC Exchange of 1 India

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Addresses 92, Maker Towers F, Cuffe Parade, Mumbai 400005

The Uttar Pradesh Stock Exchange PadamTowers, 14/113, Association Civil Lines, Kanpur Ltd. 208001

STD Fax Code Phone no Numbers

022 22188164 22188503 22188511

www.otcei.com

0512 2338115 2338175 2338074 2338220

[email protected]

StockExchangeBuilding, Jaipur Stock JLN Marg, Malviya Nagar, Exchange Ltd. Jaipur - 302017 0141 2729094 2729082 2729041 2729100 5111152 P O Box no 183, New No: 30, (old no:11), Madras Stock SecondLineBeach, Exchange Ltd. Chennai - 600001 044 25228951 25244897 25224392 MES Dr P K Abdul Gafoor Memorial Cultural Complex, 36/1565, 4th Cochin Stock Floor, Judges Avenue, Exchange Ltd. Kaloor, Cochin - 682017 0484 3048521 2400330 3048522 Bangalore StockExchangeTowers, Stock 51, 1st Cross, J C Road, Exchange Ltd. Bangalore– 560027

Email Id

[email protected]

[email protected]

[email protected]

080 41575234 [email protected] 41575235

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ExchangePlaza, BandraNational Stock Kurla Complex, Exchange of Bandra(E), Mumbai India Ltd. 400051

022 26598235 26598237 26598236 26598238 26598346

H/NO, 57 2A, 2nd Floor, Shine Tower, Sati Jaymati Road, Arya Chowk, Gauhati Stock Rehabari, Guwahati - 781 Exchange Ltd. 008. 0361 2517883 2543273 2543273 The Ludhiana Stock Feroze Gandhi Market, Exchange Ltd. Ludhiana - 141001

0161 2774716 2404748 4612317 2401645

The Calcutta Stock Exchange Association 7, LyonsRange, Kolkata 10 Ltd. 700001 033 22206928 22202514 22206977 22104486 22203741 22104470 - 77 Stock Exchange Bhavan, BhubaneshwarP-2, Jayadev Vihar,P.O. – Stock Chandrasekharpur, 11 Exchange Ltd. Bhubaneswar – 751 023” 0674 2545082 2545094 2545093 The Delhi Stock DSE House, 3/1, Asaf Ali 12 Exchange Ltd. Road, New Delhi - 110002 011 23292417 23292181 23292418 23292176

[email protected]

[email protected]

[email protected]

www.cseindia.com

[email protected] [email protected]

www.dseindia.com

Vadodara Stock FortuneTower, Sayajigunj, 13 Exchange Ltd. Vadodara - 390005 0265 2361534 2361452

[email protected]

14 Ahmedabad

[email protected]

Kamdhenu Complex, Opp, 079 26307971-26308877

19 Stock SahajanandCollege, Exchange Ltd. Panjarapole, Ambawadi, Ahmedabad - 380001 PalikaPlaza, Phase II, Madhya 201, 2nd Floor, MTH Pradesh Stock Compound, Indore 15 Exchange Ltd. 452001

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0731

2432842 48 2432849

Shivleela Chambers, 752, Sadashiv Peth, RB Pune Stock Kumthekar Marg, Pune 16 Exchange Ltd. 411030 020 24485702 24460082 PhirozeJeejeebhoyTowers Bombay Stock , Dalal Street, Mumbai 17 Exchange Ltd. 400023 022 22721234 22722082 22721233 22723132 Inter connected Stock Exchange of 18 India Ltd.

[email protected]

[email protected]

www.bseindia.com

InternationalInfotechPark, Tower 7, 5th Floor, Sector 30, Vashi, Navi Mumbai – 400703 022 67941000 27812061 [email protected] Exchange Square, 3rd MCX Stock Floor, Suren Road, 19 022 67319000 67269575 www.mcx-sx.com Exchange Ltd Chakala, Andheri (East) Mumbai - 400 093. Due to pending litigation before the Hon'ble Madras High Court, Coimbatore Stock Exchange Ltd. (CSX) has not filed application for renewal of recognition which Coimbatore expired on 17.09.06. However, in terms of order dated 15.09.06 of the Hon'ble 20 Stock Court, the right of CSX to apply for renewal shall be subject to further orders of the Exchange court and the stock exchange shall not be entitled to oppose the renewal solely on the ground of lapse of time. De-recognized Stock Exchanges. "The Hyderabad Stock Exchange Ltd. (HSE) failed to dilute atleast 51% of its Hyderabad equity share capital to public other than shareholders having trading rights on or 1 Stock before the stipulated date i.e. August 28, 2007. Consequently, in terms of section Exchange 5(2) of the Securities Contracts (Regulation) Act, 1956, the recognition granted to HSE stands withdrawn with effect from August 29, 2007" Magadh Stock SEBI vide order dated September 3, 2007 refused to renew the recognition 2 Exchange granted to Magadh Stock Exchange Ltd. " Saurashtra Kutch Stock 3 Exchange SEBI vide order dated July 06, 2007 has withdrawn the recognition granted to (SKSE) Saurashtra Kutch Stock Exchange Limited.

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Mangalore Stock Exchange

As per Securities Appellete Tribunal order dated October 4, 2006, the Mangalore Stock Exchange is a de-recognized Stock Exchange under Section 4 (4) of SCRA .

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Types of online stock traders Basically there are four types of online stock traders: (1)Long-term traders – who hold their shares for one or more years (2) Medium-term traders – who hold their stock anywhere from 1 month to six months. (3) Short-term traders – who ordinarily hold stock for a week, but this can be up to one month (4) Day traders – who buy and sell stock in the same day.

Stock Charts If you are going to stand any chance of having a successful career as an online stock trader, you‟ll need to make sure that your software has the capability of producing stock charts. The most common types of stock charts in use are:

Line charts: This is simply a line connecting stock price over a period of time. Bar charts: a little more complex in that the information not only consists of stock price movements over a period of time, but will also include the opening, high, low and closing price of the stock for one particular day, from which you can construct a bar chart.

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Reference chart: which track both the stock price and trading volume, which is then used to plot where the stock price should go.

Candlestick charts: uses the same information that bar charts do, but displays the information differently.

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ONLINE STOCK TRADING COMPANIES 1- 5 PAISA

2- SHARE KHAN

3-INDIA BULLS

4-ICICI DIRECT

5-MOTILAL OSWAL SECURITIES

6-HDFC SECURITIES

7 -RELIANCE MONEY

8-IDBI PAISA BUILDER

9-RELIGARE

10-GEOJIT

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11-NET WORTH STOCK BROKING

12-KOTAK SECURITIES

13-STANDARD CHARTERED_STC CAPITAL MARKETS LTD

14-ANGEL TRADE

15-HSBC INVEST DIRECT

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MY WORK AT INDIA INFOLINE LTD

1-

Trader Terminal

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Demat Account

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India Infoline Ltd. User Manual Trader Terminal

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Trader Terminal India Infoline Ltd has Trader terminal as trading software. It is design and built in house by the technology teach of India Infoline Ltd.

Trader Terminal is a comprehensive trading tool, with superior charting and analytical capabilities, that allows you to place orders and get them executed at lighting fast pace.

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Index 1. Main Window…………………………………………………….6 2. File………………………………………………………………..7 3. Market…………………………………………………………...16 4. Reports………………………………………………………….123 5. Messages………………………………………………………..142 6. Links……………………………………………………………151 7. Tools……………………………………………………………188 8. Research………………………………………………………...198 9. Windows………………………………………………………...217 10. Help……………………………………………………………..228 11. Contact US……………………………………………………....233 12. Intraday chart and market depth………………………………...235

29 After successfully installing the trading software when User clicks on the icon of the Trader Terminal, it opens the windows as shown in the Snapshot-1

Snapshot-1

As shown in Snapshot-1 User can get connected to the server by using Internet or VSAT connection. User will have to choose appropriate option before User clicks on login.

30 User will have to enter the correct login ID and Password to login successfully into the software. User can change the old password by entering the new password in New Password field and same (new) password in the Conf. Password field along with correct login ID in login ID field and Old password in Password field. Neither the Login ID nor the Password is case sensitive. The first login is actually a registration process where the server captures certain key information about system and compares them with every subsequent login. If some User tries to hack into your account from any other system he/she will not be allowed to login even if he/she has your password since the machine credentials would not match. Also all such attempts will not be counted towards your unsuccessful attempts tally and therefore your account will never be locked out due to some User else‟s mischief or unscrupulous attempt. User has option of changing the setting by clicking on the Setting before they login. When User clicks on the Setting then it shows the window as shown in the Snapshot-2. User can choose In HO Network or Use Proxy option. If User is opting for the Use Proxy option then User will have to enter the Proxy IP.

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Snapshot-2

After choosing appropriate setting, when User enters the correct login ID and Password and clicks on the Login User can enter into the software. It opens the windows as shown in the Snapshot on successful log in.

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1. Main Window After successful login it opens the main window as shown in the Snapshot-1.1.

Snapshot-1.1

In the Menu bar it will have following options as shown in the Snapshot-1.1.

33 File Market Reports Message Links Tools Research Windows Help Contact us It will also have the SEBI registration no and NSE Code no in the Menu Bar. It will also have today‟s date (mm/dd/yyyy) and time in the Menu bar.

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2. File When User clicks on the File in Menu bar it opens the windows as shown in the Snapshot-2.1

Snapshot-2.1

35 When User clicks on File in menu bar it will have following option as shown in the Snapshot-2.1. Log Out Reconnect Lock (Ctrl+O) Change Password Download masters Exit We will see all these option User by User.

Log Out You can logout any time by accessing the „Logout‟ (File>Logout) option from the „File‟ menu. On logout your terminal will still be active.

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Snapshot-2.2 When User clicks on the Logout system asks the question, „do you want to logout?‟ as shown in the Snapshot-2.2 When User clicks on the Yes then he/she will be logout of the software.

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[Note:-This option is same as Exit]

Reconnect

This option is active only when connectivity to the server is lost. User can reconnect to the server by accessing the „Reconnect‟ option from the „File‟ menu.

38 Lock User can lock the screen by accessing the „Lock‟ (File>Lock) option from the „File‟ menu. The shortcut key for the same is „Ctrl+O‟ When User clicks on File>Lock or press „Ctrl+O‟ the screen will show the windows as shown in the Snapshot-2.3.

Snapshot-2.3

39 User can access all other options except entering of trades which terminal is locked. As shown in the Snapshot-2.3 it shows the message that „Your terminal has been locked. Enter your password to unlock it‟ User will have to enter the correct password to unlock the terminal. When User clicks on the Exit User will exit from the trading terminal.

Change Password User can change password by accessing the „Change Password‟ (File>Change Password) option from the „File‟ menu. When User Clicks on File>Change Password it opens the window as shown in the Snapshot-2.4

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Snapshot-2.4

User will have to enter the Old Password, New Password and Confirm Password (same as new password) before they click on OK. When User clicks on the Cancel the Change Password window gets closed. Password is valid only for 14 days, after which User have to compulsorily change the password. The new password should not be User that was used in the previous two changes. In other words User cannot recycle a password for next two changes.

41 Once User has changed the password it cannot be changed again within the next 24 hours. Rules for Password 1. Password cannot be same as login ID 2. Password has to be at least 8 characters and maximum of 10 characters 3. It should contain at least 1 alphabet and 1 numeric 4. It can contain special characters 5. It cannot start with a space or special character 6. It cannot be reused for subsequent two changes

42 Download Masters User can down load the masters by accessing the „Download Masters‟ (File>Download Master) option from the File Menu. When User clicks on File>Download Master it opens the windows as shown in the Snapshot-2.5.

Snapshot-2.5

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User will have to download master before User begins other options. User will have to select Exchange (BSE or NSE or BSE and NSE) and Market type (Cash or F & O or Cash and F & O) to down load the masters. After selecting Exchange and Market type User has three options. User can either click on Scrip master or Incremental download or Default Group.

Scrip master

This option is used when some has just installed TT and using it for the first time then User need to load all the scrip and this option will do the same. It will load all the scrips. When User clicks on the Scrip master after selecting the exchange it downloads it shows the message as shown in the Snapshot-2.6

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Snapshot-2.6

It shows the message that Masters downloaded and created.

[Incremental Download:-This option is used when some User wants to add new scrip to the master. Using this option User doesn‟t need to load all the scrip. This option will load only those scrips which were not in the scrip master before.]

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Exit User can exit from the trading terminal by accessing the „Exit‟ (File>Exit) option from the „File‟ menu.

46 Snapshot-2.7 When user clicks on Exit it will ask “Do you want to Exit?‟ as shown in the Snapshot-2.7. If user clicks on Yes user can exit from the software.

3. Market

When User clicks on the Market in Menu bar it opens the windows as shown in the Snapshot-3.1

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Snapshot-3.1

When User clicks on Market in menu bar it will have following option as shown in the Snapshot-3.1 Market Watch Market Analyser Snap Quote Price Alert Indices Buy/Offline Buy

48 Sell/Offline Sell Hedging Buy Hedging Sell Groups Ticker Historical chart Option Calculator We will see all these options User by User.

Market watch User can open the Market watch window by accessing the „Market Watch‟ (Market >Market watch) option from the „Market‟ menu. When User clicks on Market>Market Watch it opens the windows as shown in the Snapshot-3.2.

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Snapshot-3.2

Using this window User can see the market details of the various scrips. First of all User will have to add the scrip for which User wants to see the details.

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Market watch window will show following details of particular scrip. Category Exchange Exchange type Token Symbol Series Percentage change Indicator Last rate Bid quantity Bid rate Offer quantity Offer rate High Low Previous close Total quantity Last quantity Weighted Average Percentage Premium Time

51 Value Total Bid quantity Total Sell quantity Open interest

After opening the market watch window when User right clicks on the window then it will have following options as shown in the Snapshot-3.3. Buy

F1

Sell

F2

Historical chart

Crtl+H

Tick list Market Depth Load Group

Crtl+G

Append from Group Crtl+A Save to Group

Crtl+S

Export scrip List Import scrip List Market watch setting

Crtl+W

Hide/ Unhide Columns Grid Settings

Crti+Shift+S

Save to File Add Scrip

Ins

Add F&O scrip

Crtl+Ins

Option chain Remove

Del

Remove all

Crtl+Del

Option Pricing

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Snapshot-3.3

Add Scrip (Ins)

To add the scrip User will have to open the market watch window first then User will have to right click and have to click on the Add scrip as shown in the Snapshot-3.4. The short cut for the same is Ins.

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Snapshot-3.4

When User clicks on the Add scrip or press Ins on the keyboard it opens the windows as shown in the Snapshot-3.5

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Snapshot-3.5

As shown in the Snapshot User will have to select the segment for which User wants to add the scrip. There are three options available named NSE Cash, BSE Bash and NSE Derivative. Say for example User wants add the scrip of NSE‟s Cash segment then User will have to check the NSE cash and it will show the scrip available in the NSE.

55 The available scrip will have following details. Exchange Exchange type Code Symbol Series Full name User will have to check for the particular security User wants to add and then have to click on Ok. User can also search for particular security based on Code/Symbol or Name.

Say for example User wants to add two scrips in NSE segment named Bombay Dyeing and Mfg. and Bharat Petroleum Corporation Limited whose symbols are BOMBDYEING and BPCL. To add these scrips first User will have to check on the NSE cash and then User will have to check these two scrips as shown in Snapshot-3.6.

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Snapshot-3.6

After checking for these two scrip when User clicks on the OK then it shows these two scrip as shown in the Snapshot-3.7

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Snapshot-3.7

The added two scrips will show all those details which we mentioned in the market watch window.

58 Buy

(F1)

Using this option User can buy particular scrip. When User adds the scrip to the market watch window and wants to buy particular scrip then User will have to click on that particular scrip.

Snapshot-3.8

59 Say for example User wants to buy some quantity of scrip named MundraPort on NSE-cash segment then User will have to add that scrip to that market watch window and have to single click on it as shown in the Snapshot-3.8.

Snapshot-3.9

60 After single click on MundraPort when User right clicks then it shows the options as shown in the Snapshot-3.9 and User will have to click on the Buy. Or User will have to single click on MundraPort as shown in the Snapshot and have to press F1(short-cut) then it will open the windows as shown in the Snapshot3.10

Snapshot-3.10

61 As shown in the Snapshot-3.10 User will have to enter the buy quantity. User can buy the particular scrip at market price or User can limit the price. When User enters the buy quantity at market price and click on Place then it will buy the shares at a rate available in the market. (At the price of the best seller). User also has option to disclose quantity. This option is used to disclose the quantity. Say for example User wants to buy 500 shares of MundraPort and want to disclose only 100 then User will have to enter the 100 in the DiscQty field and it will disclose only 100 shares in the market. When User enters the buy quantity at limit price then User will have to enter the price at which User wants to buy that particular share and User will have to click on the Place. The limit price will get executed when it will find its match. User can also avail the option of the stop-loss order. User will have to enter the trigger price and limit price for both the order. User can also use the option of the IOC (Immediate or Cancel). When User enters the buy order using this option then if the order will not find the match immediately then it will get cancel.

62 Sell

(F2)

Using this option User can sell particular scrip. When User adds the scrip to the market watch window and wants to sell particular scrip then User will have to click on that particular scrip.

Snapshot-3.11 Say for example User wants to sell some quantity of scrip named Reliance Petroleum Limited on NSE-cash segment then User will have to add that scrip

63 tothat market watch window and have to single click on it as shown in the Snapshot-3.11

Snapshot-3.12

After single click on RPL when User right clicks then it shows the options as shown in the Snapshot-3.12 and User will have to click on the Sell. Or

64 User will have to single click on RPL as shown in the Snapshot and have to press F2(short-cut) then it will open the windows as shown in the Snapshot-3.13

Snapshot-3.13

As shown in the Snapshot-3.13 User will have to enter the sell quantity. User can sell the particular scrip at market price or User can limit the price. When User enters the sell quantity at market price and click on Place then it will sell the shares at a rate available in the market. (at the price of the best buyer).

65 User also has option to disclose quantity. This option is used to disclose the quantity. Say for example User wants to sell 500 shares of RPL and want to disclose only 100 then User will have to enter the 100 in the DiscQty field and it will disclose only 100 shares in the market. When User enters the sell quantity at limit price then User will have to enter the price at which User wants to sell that particular share and User will have to click on the Place. The limit price will get executed when it will find its match. User can also avail the option of the stop-loss order. User will have to enter the trigger price and limit price for both the order. User can also use the option of the IOC (Immediate or Cancel). When User enters the sell order using this option then if the order will not find the match immediately then it will get cancel.

Historical chart Using this option User can view the historical chart of particular scrip. When User adds the scrip to the market watch window and wants to see the historical chart of particular scrip then User will have to click on that particular scrip.

66

Snapshot-3.14

Say for example User wants to see the historical chart of scrip named Reliance Petroleum Limited on NSE-cash segment then User will have to add that scrip to that market watch window and have to single click on it as shown in the Snapshot-3.14.

67

Snapshot-3.15

After single click on RPL when User right clicks then it shows the options as shown in the Snapshot and User will have to click on the Historical chat. Or User will have to single click on RPL as shown in the Snapshot and have to press Crtl+H(short-cut) then it will show the historical chat as shown in the Snapshot-3.16.

68

Snapshot-3.16

The historical chart will be from the 11th May, 2006. Using +/- User can Zoom In/Zoom out the graph.

69

Tick List Using this option User can view the Tick List of particular scrip. When User adds the scrip to the market watch window and wants to see the Tick List of particular scrip then User will have to click on that particular scrip.

70

Snapshot-3.17

Say for example User wants to see the Tick list of scrip named Reliance Petroleum Limited on NSE-cash segment then User will have to add that scrip to that market watch window and have to single click on it as shown in the Snapshot-3.17.

71 Snapshot-3.18

After single click on RPL when User right clicks then it shows the options as shown in the Snapshot-3.18 and User will have to click on the Tick List.

Snapshot-3.19

When User clicks on the tick list it shows the details as shown in the Snapshot3.19.

72 The tick list will have following details. Name of the scrip on the top Time Rate Quantity The latest executed quantity along with its rate and time on the top.

DMAT ACCOUNT Demat account is a safe and convenient means of holding securities just like a bank account is for funds. Today, practically 99.9% settlement (of shares) takes place on demat mode only. Thus, it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges.

BENEFITS OF DMAT ACCOUNT

1. A safe and convenient way of holding securities (equity and debt instruments both). 2. Transactions involving physical securities are costlier than those involving dematerialised securities (just like the transactions through a bank teller are costlier than ATM transactions). Therefore, charges applicable to an investor are lesser for each transaction.

73 3. Securities can be transferred at an instruction immediately. 4. Increased liquidity, as securities can be sold at any time during the trading hours (between 9:00 AM to 3:30 PM on all working days), and payment can be received in a very short period of time. 5. No stamp duty charges. 6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical certificates, are eliminated. 7. Pledging of securities in a short period of time. 8. Reduced paper work and transaction cost. 9. Odd-lot shares can also be traded (can be even 1 share). 10.

Nomination facility available.

11.

Any change in address or bank account details can be

electronically intimated to all companies in which investor holds any securities, without having to inform each of them separately. 12.

Securities are transferred by the DP itself, so no need to

correspond with the companies. 13.

Shares arising out of bonus, split, consolidation, merger

etc. are automatically credited into the demat account of the investor. 14.

Shares allotted in public issues are directly credited into

demat account of the applicants in quick time

74

DOCUMENTS SHOULD BE REQUIRED FOR DEMAT ACCOUNT

 IDETIFICATION PROOFAny one should be 1. Voter Id 2. Driving License 3. passport 4. Pan Card

 RESIDENCE PROOFAny one should be1. Ration card 2. Voter Idcard 3. Latest Bank Statement 4. Telephone Bill Statement 5. Electricity Bil Statement 6. Passport

 ONE PHOTO  Marginal cheque only Rs 5750 Candidates name should be same on every documents.

75

Bank details: 

Copy of cancelled cheque with printed name from the bank.



Copy of bank passbook with name and address and copy of cancelled cheque.



Bank statement with name and address (duly authorized by the bank, if statement is on plain paper) not more than 4 months old and copy of cancelled cheque of MICR & bank detail verification.

Maximum

Number

of

holders

in

a

Demat

Account

A maximum of three persons are allowed to open a joint demat account in their names.

DEMATERIALISATION Definition Dematerialization is the process of converting physical shares (share certificates) into an electronic form. Shares once converted into dematerialized form are held in a Demat account.

76

Dematerialization Process An investor having securities in physical form must get them dematerialized, if he intends to sell them. This requires the investor to fill a Demat Request Form (DRF) which is available with every DP and submit the same along with the physical certificates. Every security has an ISIN (International Securities Identification Number). If there is more than one security than the equal number of DRFs has to be filled in. The whole process goes on in the following manner:

77

78

Rematerialisation The process of getting the securities in an electronic form, converted back into the physical form is known as Rematerialisation. An investor can rematerialize his shares by filling in a Remat Request Form (RRF). The whole process goes on as follows:

79



Depository - An organization that facilitates holding of securities in the electronic form and enables DPs to provide services to investors relating to transaction in securities. There are two depositories in India, namely NSDL and CDSL. As per a SEBI guideline, the minimum net worth stipulated for a depository is Rs.100 crore



NSDL/CDSL - The securities are held in depository accounts, like the funds are held in bank accounts. There are two depositories in India namely NSDL and CDSL. NSDL (National Securities Depository limited) was established in August 1996 and is the first depository in India. CDSL (Central Depository Securities Limited) is the other depository and was established in 1999.



DP (Depository Participant) - A Depository Participant can be a financial organization like banks, brokers, financial institutions, custodians, etc., acting as an agent of the Depository to make its services available to the investors. There are a total of 538 DPs registered with SEBI, as on March 31, 2006 and each DP is assigned a unique identification number known as DP-ID.

80

COMPANY INDRODUCTION

India Infoline originally in corporated on October 18, 1995 as probity research and services pvt ltd.At Mumbai under the companies act, 1956 with registration no. 1193797. And become a public limited company on april 28, 2000 The name of the company was changed to India Infoline.com limited on may 23, 2000 and later to India Infoline Limited on march 23, 2001. it is the first company in India to foray into the online distribution of mutual funds. It is a one stop financial services shop, most respected for quality of its advice, personalized service and cutting edge technology. The no.1 corporate agent for ICICI prudential life insurance company.Research acknowledged by Forbes as “Must read for investor in south Asia” Listed on Bombay and national stock exchange with anet worth of INR 200 crore and a market cap of over INR 1970 crore. The company has a network of 976 business locations (brances and subbrokers) spread across 365 cities and towns. It has more than 800,000 customers. It is registered with NSDL as well as CDSL as a depository participant providing a one- stop solution for clients trading in the equities market India Infoline group, comprising the holding company, India Infoline Limited andits wholly-owned subsidiaries, straddle the entire financial services space with offerings ranging from equity research, equities and derivatives trading, commodities trading, portfolio management services, mutual

funds, life

insurance, fixed deposits, govt. bonds and other small savings instruments to

81

loan products and investment banking. India Infoline also owns and manages the websites www.Indiainfoline.com and www.5Paisa.com . In todays competitive world there are many goods chasing few customers some are trying it expands their size and share of existing market. As a result there are loser and winners. Winners are those who crefully analyze needs identify opportunities and create also rich offers for target customer. The objective of the market research to determine the demand and supply and use of the product and competitors study so as to get the total market scenario of the product for analyzing market problem research is needed. A firm can obtained market research in a number of ways . It can hire market research firm or it can ask students to design and carry out market research project. These marketing problems and opportunities if entrust to the students of marketing specially when they seek the same during the project gives opportunities to apply their theoretical knowledge and managerial knowledge. India Infoline.com and 5paisa.com is related to share market, it is equity to caused organization tracing its lineage to SSKL, a veteran solution company with over

8

decades

of

experience

in

the

lead

in

stock

market.

82

Business Model:-

83

Corporate Structure

84

Vision and Strategy

85

Management Team

86

Corporate governance

87

How we differentiate ourselves

88

Awards and accolades

89

EVOLUTION

90

Performance highlights – Financial Year, 2009-10 Overall consolidated financial performance  Annual Income at Rs11,239 mn, up 28% yoy  PBT and PAT at Rs3,547 mn and Rs2,320 mn, up 62% yoy and 60% yoy respectively  EBIDTA margin for the year was 39% as compared to 33% in the previous year

Broking  Average daily turnover up 57% in FY10 to Rs35 bn  Overall market share in NSE was 3.8% in FY10  Commodities brokerage registers 47% increase yoy

Life Insurance  Life insurance distribution income at Rs536 mn, up 11% yoy  In FY10, the relative share of pension products have increased from 32% to 35%

Investment Banking  During the year, our Investment Banking team advised and managed more than 10 transactions including the  Cox & Kings IPO, Infinite Computer Solutions IPO and the Gammon India QIP  Income from Investment Banking increased 16 times to Rs 388 mn, as against Rs 23 mn in FY09

Credit and Finance  Book size in FY10 increased to Rs16.3 bn from Rs9.6 bn  Loan growth likely to accelerate in the next year on the back of improving macro-economic scenario

Wealth Management  Assets under advisory over Rs 50 bn – spanning over 1,000 families.  Wide gamut of products meeting risk - return profiles for all segments.

91

Financials: Over the years

92

Financial Highlights – Financial Year, 2009-10

93

Financial

Highlights:

Quarter, 2009-10

Jan

–

Mar

94

Income composition

95

Equities 

Market share on NSE maintained at 3.8% in FY10



Average daily turnover up 57% yoy in FY10 to Rs35.02bn



Present in over 2,300 business locations through branches and subbrokers.



IIFL Securities Pte Ltd, our Singapore-based subsidiary, received inprinciple approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX)



Our first Global Investors‟ Conference at Mumbai - ‘Enterprising India’ had a participation of more than 450 Fund Managers, over 70 corporates, world renowned economists and thought leaders.

96

Research

97

Insurance

98

Credit and Finance

99

Wealth Management

100

Group brand identity changed to IIFL

101

102

Different competitors The major players in online trading

• 5paisa.

• IndiaBulls.com

• ICICIDirect.com

.Share khan.com • HDFCsec.com

103

5 paisa.com 5paisa is Online Stock Trading Company of India Infoline Securities Private Ltd., Owner of popular business portal Indiainfoline.com. Besides high quality investment advice from an experienced research team, the site offers real time stock quotes, market news and multiple tools for technical analysis. Trade In: BSE and NSE

Trading Terminals: 5Paisa offers 2 different online trading terminals to its customers:

1. Investor Terminal (IT) Investor Terminal is 5Paisa's equity trading terminal for low volume trader. This is web based terminal and could access from anywhere. This product provides limited features in comparison of Trader Terminal, which is another product provided by 5Paisa.

2. Trader Terminal (TT) Trader Terminal is design for high volume equity traders or day traders. Trader Terminal provides high volume trading with powerful interface and fast order execution.

104

Few popular features of trader terminal are: 

Fast trade execution with instant trade confirmation.



Live streaming quotes and price watch on any number of stocks.



Intra day charts, updated live, tick-by-tick.



Live margin, position, marked to market profit & loss report.



Set any number of price alerts on any number of scrips.



Flexibility to customize screen layout and setting.



Facility to customize any number of portfolios & watch lists.



Facility to cancel all pending orders at one click.



Facility to square off all transactions at one click.



Top Gainers, Top Losers, Most Active, updated live.



Index information; index chart, index stock information live.



Market depth, i.e. Best 5 bids and offers, updated live for all stocks.



Online access to both accounts and DP to check live updated Order and Trade Book.



Facility to place after market orders.



Online fund transfer facility from leading Banks including ICICI, HDFC, CITI and UTI banks.



Online intra-day technical calls.



Historical charts and technical analysis tools.



India Infoline's world - acclaimed news service and research.



and many more.

How to open account with 5Paisa There are few steps to open an account with 5paisa.

105 1. First log on to their site and fill the registration form. Once you fill the form they will give you 2 options. Either you can receive the form by mail or one of their agent visit you personally. Personal visit is not available in all cities. 2. After registration, you will be required to deposit a certain amount of initial margin deposit with them. The deposit can be of any amount, but it should not be less than Rupees Five Thousand. 3. When your account is activated, you will receive a welcome kit, which contains details about your account, your username and password, and the user's manual. The kit will also include a CD ROM which will allow you to install trading software. 4. It will take approximately 15 days to complete the formalities if all the correct documents are sent and the forms are correctly filled. 5.

Documents required are 2 latest passport size photos, proof of identity and address i.e. say electricity/ telephone bill, passport photocopies and PAN number.

106

Advantages of 5paisa 1. Very fast execution speed. 2. Rates are very competitive then other providers. 3. Easy online fund transfer facility from leading Banks including ICICI, HDFC, CITI ,AXIS,YES BANK,BANK OF BARODA 4. Free facility of subscribing to mutual funds, equity IPOs and other investment products.

Disadvantages of 5paisa 1. No intra-day tick by tick charts in Investor Terminal (IT). 2. Investing in IPO and Mutual Funds is not so easy like in ICICIDirect. 3. Learning 5paisa Trading Terminal is little hard. IPO / Mutual Funds investment through 5Paisa (IndiaInfoLine) 1. 5Paisa provides free facility of subscribing to mutual funds, equity IPOs and other investment products using internet banking account of ICICI, HDFC, CITI and UTI banks. 2. Registered users with 5Paisa can logon to following website to apply in an IPO: http://www.indiainfoline.com/ipo 3. While applying for IPO shares online through 5Paisa, Investor are taken to there corresponding banks homepage. Investors can use there net banking user id & password & transfer funds directly using any of these banks. 4.

5Paisa members can use the similar steps to invest in Mutual Funds online.

107

Least Brokerage Charges Starting As Follows: opening charge of Dmat- zero Intraday: From 0.03% To 0.05%.

Delivery: From 0.30% To 0.50%.

Easy online Trading Platform

Multiple Exchanges on Single Screen

Stop-loss feature.

Facility to customize any number of portfolios & watchlists.

Online Tips Free Of Cost.

Online Terminal Free Of Cost. .

Expert inputs from industry professionals.

108

A/C opening charge- zero Name of the software used- Trader Terminal. Software installation charge- Nil. No. of scripts provided by the software- unlimited. Maintainance charge- Nil.l Exposure- 8 times (intra day) 3 times (delivery). Name of the bank with the help of which customer get the facility of net banking- HDFC Bank, Axis Bank, ICICI Bank.,CITI, , YES BANK,BANK OF BARODA Services provided- Equity,IPO,MF,PMS,Commodities,Insurance,Wealth Management Services, Mortgages. DP sells charge- 15 per instruction + service tax. Brokerage- 0.01% to.05% intraday 0.1% to 0.5% deliveries. Transaction Report- sms, daily mail, daily courier, Prepaid Scheme- not available. Types of trading accounts provided- De-Mat a/c, Trading a/c , Margin a/c. Network-976 business locations,spread across 365 cities and more than 800,000 customers.. Margin money- minimumRs5750 Secrecy- telephone logger with recorder.

109

Indiabulls

Type

Public (NSE:[1])

Industry

Financial Services

Founded

2000 As Indiabulls Financial Services Ltd.

Headquarters Mumbai, India

Key people

Sameer Gehlaut, Chairman & CEO Rajiv Rattan, President & CFO, Saurabh MittalDirector

Products

Securities, Consumer Finance, Mortgages,Real Estate

Employees

~ 20000 (2007)

Website

www.Indiabulls.com

110

INDIA BULLS.COM Indiabulls is India's leading Financial Services and Real Estate Company having presence over 414 locations in more than 124 cities. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange Indiabulls Group is one of India‟s top Business houses with businesses spread over Real Estate, Infrastructure, Financial Services, Securities, Retail, Multiplex and Power , Charterd Aviation sectors. The group companies are listed on important Indian and Overseas markets. Indiabulls has been conferred the status of a “Business Superbrand” by The Brand Council, Superbrands India.'

Type of Account

1. Indiabulls Equity Trading Account Indiabulls Equity Trading Account is standard Online trading account from India bulls and along with online trading it also provides priority telephone

111 access that gives you direct access to your Relationship Manager and full access to 'Indiabulls Equity Analysis'.

Application Trading Terminal(Need Installation)

1. Power Indiabulls Power Indiabulls trading terminal is the most advanced new generation trading platform with great speed. This trading terminal is built in JAVA.

Power Indiabulls is extremely reach in features including Live Streaming Quotes, Fast Order Entry and execution, Tic by Tic Live Charts, Technical Analysis, Live News and Alerts, Extensive Reports for Real-time Accounting. Document Required to open Equity Trading Account with Indiabulls 1. One passport size photograph. 2. Proof of bank account 3. Copy of PAN card. 4. Identity proof - copy of passport or PAN card or voter ID or driving license or ration card. 5. Address proof - copy of driving license or passport or ration card or voter card or telephone bill or electricity bill or bank statement.

Brokerage and fees : 1. Account opening fees : Rs 1200/- (One time non-refundable) as below: 250/- Equity Trading Account opening charge

112 200/- Demat Account opening charge 750/- Software changes

Advantages of Indiabulls Equity Trading Account 1. Brokerage is less compare to other online trading companies. 2. Provide trading terminal 'powerbulls', a java based software. It's very fast in terms of speed and execution

DRAWBACKS OF INDIABULLS Management team is not serious. Brokerage is very high. Don‟t send proper transaction report daily. Take time for opening an accout

Brokerage charges SEBI allows brokers to charge up to 2.5% on every trade transaction. Indiabulls charges 0.5% (either buy or sell) for delivery trades. A complete trade (buy & sell) would cost 1%. The intra-day brokerage is 0.05%. Brokerage costs reduce with further volumes in trade. 0.3% for delivery & 0.01% for intraday is easily possible now a days

113

A/C opening charge-Rs 1200 Name of the software used- PIB(Power India Bulls) Software installation charge- 750/No. of scripts provided by the software- unlimited Maintenance charge- nil Exposure- 3 times intraday and 8 times delivery. Name of the bank with the help of which customer get the facility of net banking- HDFC,IDBI,ICICI and Axis Bank. Services provided- Equity, Housing Loan, Personel Loan, Insurance. 12 DP sell charge- 10/Brokerage- Intraday-.05% & Delivery-.5% Transaction Report- Through mail &courier(Free of cost) Prepaid Scheme- not available. Types of trading accounts provided- Cash a/c , Intra a/c, Margin a/c. Network- 718 branches and 4500000 customers across the country. Margin money- NIL Secrecy- use logger phone so that the broker cannot go beyond their word.

114

ICICIDirect.com ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds. Trading is available in BSE and NSE.

Products and Services A product for every need: ICICIdirect.com is the most comprehensive website, which allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. Simply put we offer you a product for every investment need of yours. 1. Trading in shares: ICICIdirect.com offers you various options while trading in shares. Cash Trading : This is a delivery based trading system, which is generally done with the intention of taking delivery of shares or monies. Margin Trading : You can also do an intra-settlement trading upto 3 to 4 times your available funds, wherein you take long buy/ short

115 sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. MarginPLUS Trading : Through MarginPLUS you can do an intrasettlement trading upto 25 times your available funds, wherein you take long buy/ short sell positions in stocks with the intention of squaring off the position within the same day settlement cycle. MarginPLUS will give a much higher leverage in your account against your limits. CallNTrade® : CallNTrade® allows you to call on a local number in your city & trade on the telephone through our Customer Service Executives. This facility is currently available in over 11 major states across India. Trading on NSE/BSE : Through ICICIdirect.com, you can trade on NSE as well as BSE. Market Order : You could trade by placing market orders during market hours that allows you to trade at the best obtainable price in the market at the time of execution of the order. Limit Order : Allows you to place a buy/sell order at a price defined by you. The execution can happen at a price more favorable than the price, which is defined by you, limit orders can be placed by you during holidays & non market hours too.

116 2. TRADE IN DERIVATIVES:

FUTURES Through ICICIdirect.com, you can now trade in index and stock futures on the NSE. In futures trading, you take buy/sell positions in index or stock(s) contracts having a longer contract period of up to 3 months. Trading in FUTURES is simple! If, during the course of the contract life, the price moves in your favour (i.e. rises in case you have a buy position or falls in case you have a sell position), you make a profit. Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled for futures trading. Calculate Index and Know your Margin are tools to help you in calculating your margin requirements and also the index & stock price movements. The ICICIDIRECTUNIVERSITY on the HOME page is a comprehensive guide on futures and options trading.

OPTIONS An option is a contract, which gives the buyer the right to buy or sell shares at a specific price, on or before a specific date. For this, the buyer has to pay to the seller some money, which is called premium. There is no obligation on the buyer to complete the transaction if the price is not favorable to him.

117 To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price. The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price. By paying lesser amount of premium, you can create positions under OPTIONS and take advantage of more trading opportunities.

Trade In: BSE and NSE

118

Type of Account ICICIDirect offers 3 different online trading platforms to its customers: 1. Share Trading Account Share Trading Account by ICICIDirect is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone. ICICIDirect.com website is the primary trading platform for this trading account. They also provide installable application terminal based application for high volume trader. 2. Wise Investment Account Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also provide options to invest in Mutual Funds and Bonds online. Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to

119 electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds.

ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs, Bonds and stock trading. 3. Active Trader Account Active Trader account gives more personalized investment options to the investors. It allows investor to use online and offline stock trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI. Active Trader also provides commodity trading.

Brokerage and fees 1. Account opening fees : Rs 750/- (One time non-refundable) 2. Brokerage : ICICIDirect.com brokerage varies on volume of trade and inclusive of demat transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.

How to open account with ICICIDirect? For Online Stock Trading with ICICI, investor needs to open 3 accounts...ICICI Bank Account, ICICI Direct Trading Account and ICICI Demat Account (DP Account).

120 Note: If you already have a bank account or demat account with ICICI, you could link it with new ICICIDirect trading account.

Opening trading account with ICICI is easy. You could use one of the following options to open account with ICICIDirect. 

Visit ICICIDirect.com and fill the "Open an Account" form.



Call ICICI and tell them that you are interested in opening an account with them.

In both the cases ICICI representative contact you in a day or two and tell you about the procedure to open the account. They usually send somebody to your home to collect documents, signature and for demo if required.

Advantages of ICICIDirect 1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. This feature makes ICICI the most interesting player in online trading facility. There is absolutely no manual interfere require. This is truly online trading environment. 2. Unlike most of the online trading companies in India which require transferring money to the broker's pool or towards deposits, at ICICIDirect you can manage your own demat and bank accounts through ICICIdirect.com. Money from selling stock is available in ICICI bank account as soon as the ICICIDirect receive it. 3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard.

121 4. Trading is available in both BSE and NSE.

Disadvantages of ICICIDirect 1. Getting access to ICICIDirect.com website during market session can be frustrating. 2. ICICIDirect brokerage is high and not negotiable. 3. Not all stocks are available under Margin Plus.

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A/C opening charge-Rs750Name of the software used- not available one can access through net. Maintenance charge- Rs.450/- from 2nd year. Exposure- 5 times for margin and 25 times for margin plus. Name of the bank with the help of which customer get the facility of net banking- ICICI(providing zero balance in saving account) Services provided- Equity,IPO,Commodities,Insurance,Mutual Funds, GOI bonds,Derivatives, Postal Savings. Brokerage- intra day-.10%-.15% Delivery- .4%-.85% Transaction Report- Through Courier(free of cost) Prepaid Scheme- not available. Types of trading accounts provided- De-Mat a/c, Trading a/c , Saving a/c. Network- 2124 branches across the countries and 19 foreign branches. Margin money- Rs.500/Secrecy- password provided to the customers and it can be changed by the customer only.

123

SHARE KHAN.COM Sharekhan is online stock trading company of SSKI Group, provider of Indiabased investment banking and corporate finance service. ShareKhan is one of the largest stock broking houses in the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI) has been among India‟s leading broking houses for more than a century.

Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com website, ShareKhan has around 510 offices (share shops) in 170 cities around the country. Share khan has one of the best state of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual

124 fund schemes and IPO data. You can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more.

Trade In: BSE and NSE

Type of Account

Classic Account Trading Terminal

1. ShareKhan Classic account Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone (Dial-n-Trade) I.

Two dedicated numbers for placing your orders with your cellphone or landline.

II.

Automtic funds tranfer with phone banking (for Citibank and HDFC bank customers)

125 III.

Simple and Secure Interactive Voice Response based system for authentication

IV.

get the trusted, professional advice of our telebrokers

V.

After hours order placement facility between 8.00 am and 9.30 am

c. Integration of: Online trading + Bank + Demat account d. Instant cash transfer facility against purchase & sale of shares e. IPO investments f. Instant order and trade confirmations by e-mail g. Single screen interface for cash and derivatives

SpeedTrade Treading Terminal

2. ShareKhan SpeedTrade account This accounts for active traders who trade frequently during the day's trading session. Following are few popular features of SpeedTrade account. a. Single screen interface for cash and derivatives b. Real-time streaming quotes with Instant order Execution & Confirmation c. Hot keys similar to a traditional broker terminal d. Alerts and reminders

126 e. Back-up facility to place trades on Direct Phone lines

Brokerage: Some stock trading companies charge direct percentage while others charge a fixed amount per Rs 100. Sharekhan charges 0.5% for inter day shares and 0.1% for intra day or you could say Sharekhan charges 50 paise per Rs 100.

How to open account with Sharekhan? For online trading with Sharekhan, investor has to open an account. Following are the ways to open an account with Sharekhan: 

Call them at phone number provided below and ask that you want to open an account with them. 1. Call on Toll free number: 1-800-22-7500 to speak to a Customer Service executive 2. If you are in Mumbai call on 022-66621111



Visit one of their branches. Sharekhan has a huge network all over India. Click on http://sharekhan.com/Locateus.aspx this link to find out your nearest branch. Just select the place near you and you'll find a manager to assist you there.



You can send them an Email on [email protected] to know about their products and services.



If you wish to chat with customer service representative, you can join the chat sesssion.

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Advantages of Sharekhan: 1. Online trading is very user friendly and one doesn't need any software to access. 2. They provides good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. 3. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.

Disadvantages of Sharekhan: 1. They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 rs. (If you trade, you will loose majority of your money in brokerage). 2. Lots of hidden rules and charges. 3. They do not provide facility to book limit order trades during after-hours. 4. Classic account holders cannot trade commodities. 5. Cannot purchase mutual funds online. 6. Their management team is not serious 7. Their brokerage rate is not fixed. 8. Take large time for account opening. 9. They give wrong information at the time of opening the account. 10. They don‟t send daily transaction report

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A/C opening charge- 750/Name of the software used- Java ssn. Software installation charge- nil Maintenance chargeExposure- 4 times for intraday and delivery both. Name of the bank with the help of which customer get the facility of net banking- AXIS bank, HDFC bank, UBI, IDBI,City Bank. Services provided- Equity,IPO,MF,Derivatives,Commodities. DP sell charge- NIL Brokerage- intraday-.05%-.07% & Delivery-.25%-.40% Transaction Report- Through mail(Free of Cost) Prepaid Scheme- yes Types of trading accounts provided- Classic a/c (for sudden user) Spend Trade a/c(for frequent user)

Network- 510 centers across 170 cities 2,18,000 customers. Margin money- Rs.5000/Secrecy- Security Socket Layer(SSL),a security that the information transmitted between customer and agent , given by Versign , universally accepted world wide web.The security encripton level in Sharekhan is 128 bit.

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HDFCsec.com HDFC Securities(HDFCsec) is Equity Trading Company of HDFC Bank. HDFC Securities provide both online trading and trading on phone. The HDFC Securities trading account has a unique 3-in-1 feature that integrates your HDFC Securities trading account with your existing HDFC bank savings account and existing Demat account. Funds / shares are seamlessly moved from the linked Demat/Bank account to execute the transactions. HDFCsec provides Cash-n-Carry on both NSE and BSE, Day trading on both NSE and BSE, Trade on Futures & Options on the NSE and Online IPO Investment.

Features on HDFC Securities Online trading

1. Seamless Transactions - By integrating your accounts, we ensure minimal waste of time during movement of your funds and shares.

130 2. Speed - Orders are placed electronically, so proceeds are available instantly. 3. No manipulation - To prevent any mismanagement, we will send you an email confirmation, the minute your order is executed. 4. Safety and Security - HDFC Securities offer the highest level of security such as 128-bit encryption technology. 5. Dedicated and Separate contact numbers - for trading over the phone as well as for customer care. Document Required to open account with HDFCsec Any Indian resident/non resident individual NRI (except for the US NRIs) or an Indian Corporate can register with HDFCsec. However, to become a member, you will have to open savings/current and demat accounts with HDFC Bank. Following documents are required to open accouunt with HDFCsec 1. One passport size photograph. 2. Copy of PAN card. 3. Identity proof - copy of passport or PAN card or voter ID or driving license or ration card. 4. Address proof - copy of driving license or passport or ration card or voter card or telephone bill or electricity bill or bank statement. Brokerage and fees : 1. Rs. 799/- (Including trading account, bank account and DP account with HDFC) Please note: HDFC Bank savings account required a quarterly minimum balance of Rs. 2,500/-. If you already have Saving account or DP account with HDFC, you could link them with trading account.

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Summary of service charges

For the convenience of our customers and as a fair practice measure, we list below the various standard charges that we levy for our services/facilities. These charges are w.e.f. Apr 1 2007.Account opening charges : Rs. 799/- for Resident individuals Rs. 1200/- for Non Resident Individuals Statutory

levies

These are charged as applicable from time to time. The following charges are presently levied as statutory dues. Securities

Transaction

tax

* Rate effective from Apr 1 2007 : Segment

Exchange

Delivery

Intraday

Cash

NSE and BSE

0.125%

0.025%

Derivatives *

NSE

0.017

0.017%

* at the time of sale Service

Tax

and

Education

Cess

:

Service Tax is charged at the rate of 12% and Education Cess at 2% and Higher Education cess at 1% (Total tax 12.36%).

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REMARK

The above charges are subject to changes/ revision from time to time. The changes/revision will be displayed on the Company's website. The above charges do not include any charges that may be levied for DP/Banking services. The above charges are applicable for all clients other than NRI clients.

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A/C opening charge- 799/Name of the software used- Sun Java. Software installation charge- NIL Maintenances charge- 500/- from 2nd year. Exposure- 5 times for intraday. 12 Name of the bank with the help of which customer get the facility of net Banking- HDFC, SB I, ICICI, Axis Bank. Services provided- Equity, IPO, PMS, Derivatives, Mutual Funds. Brokerage- Delivery-.50% & Intraday-.05% Transaction Report- Through mail/courier(Free of cost) Prepaid Scheme- not available. Types of trading accounts provided- De-Mat a/c, Trading a/c, Margin a/c. Network- 480 branches in 230 cities. Margin money- 5000/Secrecy- password cannot be accessed through internet.HDFC Securities offer the highest level of security such as 128-bit encryption and SSL(Secured Socket Layer) technology.

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METHODOLOGY…ADOPTED Research methodology refers to the search for Knowledge. It is a way to systematically solve the research problem. In it we study the various steps that are generally adopted by the researcher in studying his research problem along with logic behind them. Research Methodology concerning a research problem or study provide answers to various questions like; why a research study has been undertaken, how the research problem has been defined, what data have been collected and what particular method has been adopted to collect the data, what technique has been used for analyzing the data and a host of similar other questions

Though there are more than one alternative approaches available to the researcher, but this not enough to make the task of selecting the suitable research design simpler. Like the so-called suitable research design may require some in between approach. The objective of study being the main determinant of the validity and reliability of the method adopted the degree of usefulness of the scientific method. Since there are many aspects of research methodology, in line of action has to be chosen from variety of alternatives, so that individual choice of suitable method is further complicated and make a viable whole. The choice of suitable method is further complicated by the possibility of many permutations and combinations. The fair selection can be arrived at through the objective assessment and of course comparison of various alternatives. The finally selected line of action must ensure that this is indeed best one as against those

135 rejected by the researcher. in addition, the circumstances and problems also having a bearing in the choice. To count a fem, limitations could be imposed in the sense of funds available, time and urgency in conducting the research. So the final choice must be based on assessment of its advantage and disadvantages when weighted against affecting factors.

Research methodology can be said to have four major components namelyResearch design, Sample design, Data collection procedure and methods of analyzing and reporting the findings.

Methodology of the project starts with:



In the first phase we are trained and they teach us different things about market.



After that they conduct a mock viva , in this they ask about the real life problem faced by the customers.



They provide leads and after that we make calls.



Then after that we have to provide details of product and convince them



Then we have to visit them and get the formed filled from them.



Maintaing dairy of clients and contacting them at regular basis.

136 

The next part is knowing the patteren of the banking sectors scripts.How they move with the correspondance to the market movement and also the economy.



Get the knowledge of technical as well as fundamental methods.



Observe the patterns of the scripts.

Objective of research; 

The main objective of this project is concerned with getting the opinion of people regarding demat account, and to create awareness of on line trading.



I had tried to explore the general opinion about the equity market and services provided by India Infoline ltd .It also covers why/ why not investors are availing the services of financial advisors.



Along with it a brief introduction to India‟s largest financial intermediary, India Infoline Ltd has been given and it is shown that what are Demat a/c, online trading awareness and how they work.

137

TYPES OF RESEARCH On the basis of theoretical study a research has many types. All of these aredistributed on the nature of research. Some of these are like 1. Descriptive and Analytical 2. Qualitative and Quantitative 3. Conceptual and empirical 4. Applied and fundamental 5. One time research Our research is based on Descriptive, Qualitative and Quantitative research.

Descriptive Research:

- Descriptive research includes surveys and fact

findingenquires of different kinds. The major purpose of descriptive research is descriptionof the state of affairs as it exists at present. Researcher has no control over thevariables of this type of research.

Qualitative Research:

- In our research we need comparison between

differentstock brokers. So this based on all qualitative data. In short, Qualitative research isespecially important in the behavioral sciences where the aim is to discover theunderline motives of human behavior. Through such research we can analysesvarious factors which motivate to people to behave in a particular manner or whichmake people like or dislike a particular thing.

Quantitative research:

- Quantitative research is based on the

measurement ofquantity or amount. It is applicable to phenomena that can be expressed in terms ofquantity. So we can use it in our research for collection of all the numerical data.

138

Scope of the study: The research was carried out in Noida city only. I have visited people randomly nearby my locality, different shopping malls, small retailers etc.

SOURES OF DATA COLLECTION While deciding about the method of data collection to be used for the study the researcher should keep to types of data.

1. Primary Data The Primary Data Is Collected Using Sampling Method and By Survey Using Questionnaire.

2. Secondary Data Secondary data includes information regarding present market scenario, information regarding mutual funds and competitors are collected by internet, magazines and news papers and books.

139

Survey Method: - Survey refers to the method of securing information concerning phenomena under study from all or selected number of respondents ofthe concerned area. In a survey the investigator examines those phenomena whichexist in the universe independent of his action.

Scheduling:

- In this method the enumerators along with schedules, go

torespondents, put to them the questions from the Performa in the order thequestions are listed and recorded the replies in the space meant for the same inthe Performa. In present report Scheduling Method is used.

SAMPLE DESIGN “A sample design is a definite plan for obtaining a sample from a given population.It refers to the technique or the procedure the researcher would adopt in selectingitem for the sample”

Generally Sample designs are two types

1. PROBABILITY RESEARCH DESIGN

2. NON PROBABILITY RESEARCH DESIGN

We used the probability research design.

140

SAMPLING UNITS filling The sample is selected in a random way, irrespective of them being investor or not or availing the services or not. It was collected through mails and personal visits to the known persons, by formal and informal talks and through up the questionnaire prepared.

SIZE OF SAMPLE “This refers to the number of items to be selected from the universe to constitute asample”

The sample size in this project is 100.

But we also study the 4 stock broker companies related to security & commodity market like ICICI direct, HDFC securities, India bulls. Share khan for the appropriate collection of the information. Data has been presented with the help of pie charts.

141

Limitations:The various Limitations are:-

Lack of awareness of Stock market :-- Since the area is not known before it takes lot of time in convincing people to start investing in shares primarily in IPO‟s.



Mostly people comfortable with traditional brokers:- As people are doing trading from there respective brokers , they are quite comfortable to trade via phone.



Lack of Techno Savy people and poor internet penetration:- Since most of the people are quite experienced and also they are not techno. savy also internet penetration is poor in India.



Some respondents are unwilling to talk:- Some respondents either do not have time or willing does not respond as they are quite annoyed with the phone call.



Inaccurate Leads :-- Sometimes leads are provided which had error in it which varies from only 5 digit phone number to wrong phone number



Misleading concepts:-- Some people think that Shares are too risky and just another name of gamble but they don‟t know its not at all that risky for long investors.

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QUESTIONNAIRE DESIGNING

NAME:- …………………………………………………………………………………... AGE:- ……………………………………………………………………………………. OCCUPATION/DESIGNATION:- ……………………………………………………… EMPLOYER:- …………………………………………………………………………….

SEX:-

MALE

FEMALE

Email ID:- …………………………………………………………………………........... MOBILE NO:- …………………………………………………………………………….

Q.1 Do you know about the different type of invest alternative?

(a)Share market (b) Insurance and mutual fund (c) Commodity (d)Real

estate

( e) Banks ( f) Others

Q.2What is the basic purpose of your investment?

(a)Liquidity (b )Return (c) Risk covering ( d) Capital appreciation ( e) Tax

143 benefits ( f) Other (specify)-

Q.3Do you have any knowledge of share markets?

(a)Partial ( b) complete ( c )Nil

Q.4 In which of these financial instruments do you invest in to?

(a) Shares ( b) Commodities ( c) mutual funds( d) Bonds( e) insurance (f)other

Q5 DO you have any demat and trading account?

(a)Yes ( b) No

Q.6With which company do you have your demat and trading account?

(a) India Infoline ( b)Share khan (c)Icici-direct ( d) hdfc security ( e) India

Bolls ( f) Other

Q.7Are you satisfied with you present broker?

(a)yes ( b) No If “ NO” what is the reason?--------------------------------

144

Q.8 Which type of trading you prefer?

(a) Online ( b) Offline

Q.9 How you differentiate one company from others?

(a) Research report ( b) funding facility ( c) low brokerage (d) trading

platform ( e) Account opening charges( f) Other (specify)---------

Q.10 Why do you prefer online trading?

(a) Time suitability ( b) user friendly (c) place convenience( d) all the

Above ( e) other (specify)-----------------------

Q.11How often do you trade?

( a) Daily ( b) Weekly ( c) Monthly ( e) yearly ( f) other (specify)---------

Q.12What percentage of your earnings do you invest?

145

( a) up to 10% ( b) Up to 15% ( c) Up to 25%( d) Up to 50%( f) Above 50% or------------

Q.13 Would you like PMS facility within your brokerage company?

(a) Yes

( b) No

Q.14 Are you interested in opening account with India Infoline ltd?

(a) Interested ( b) Not interested ( c) Think about it ( d) after some time

Contact ( e) other (specify)---------------------------------

Q.15. Do you know about India Infoline ltd?

(A) Partial ( b) complete (c) No

146

Q.16. Are you aware of online trading?

(a) To some extent ( b) To large extent ( c) No

Suggestions---------

147

DATA ANALYSIS

148

1. Preference of Investment

Interpretation: This shows that although the mutual funds market is on the rise yet, the most favored investment continues to be in the Share Market. So, with a more transparent system, investment in the Stock Market can definitely be increased.

149

2. Awareness on Online Share Trading

Interpretation:With

the increase in cyber education, the awareness

towards online share trading has increased by leaps and bounds. This awareness is expected to increase further with the increase in Internet education.

150

3. Preference of investing in stock market

IINTERPRETATION:The

study shows that most of the people

prefer to invest in stock market because of high risk and high return whereas some other try to capture the short term gain from investment. But a very few section of people invest because of the benefits they gain in tax.

151

4. AWARENESS OF India Infoline ltd as a brand

Interpretation:This pie-chart shows that India Infoline has a reasonable amount of Brand awareness in terms of a premier Retail stock broking company. This brand image should be further leveraged by the company to increase its market share over its competitors.

152

5. Awareness of India Infoline facilities

Interpretation: Although there is sufficiently high brand equity among the target audience yet, it is to be noted that the customers are not aware of the facilities provided by the company meaning thereby, that, the company should concentrate more towards promotional tools and increase its focus on product awareness rather than brand awareness.

153

6.Satisfaction

Level

among

Customers

with

current broker

Interpretation:

This pie-chart corroborate the fact that Strategic

marketing, today, has gone beyond only meeting Sales targets and generating profit volumes. It shows that all the competitors are striving hard not only to woo the customers but also to make them Brand loyal by generating customer satisfaction.

154

7 . Frequency of Trading

Interpretation:

Inspite of the huge returns that the share market

promises, we see that there is still a dearth of active traders and investors. This is because of the non – transparent structure of the Indian share market and the skepticism of the target audience that is generated by the volatility of the stock market. It requires efficient bureaucratic intervention on the part of the Government

155

8.Percentage of earnings invested in Share Trading

Interpretation:This

shows that people invest only upto 10% of their

earnings in the stock market, again reiterating the volatile and non-transparent structure of the Indian stock market. Hence, effective and efficient steps should be undertaken to woo the customers to invest more in the lucrative stock market

156

9.Problems faced during trading

INTERPRETATION:The most common problem faced by people during trading is the information related problem i.e, they don‟t get the required information about trading either online or offline.Whereas some other problems are also there like network problem,inmanual operating problem and service provider problem.

157

10. Describe yourself as a

INTERPRETATION:From the above graph I found that most of customer are mostly risk taker and price conscious and least number of customer are quality conscious and variety seeker. It suggests that the customer are ready to invest money in equity and commodity market which is more risky than mutual fund.

158

11.Rating of products of India Infoline

INTERPRETATION:About

20% of the people

rated the products of reliance money as excellent whereas 50% rated it as good. While some others rated it as average and a very small portion of people rated it as poor.

159

12.Customer status

INTERPRETATION:Most

of the people who were surveyed are

businessman,10% are students,14% are service holder and rest 16% are exserviceman

160

13. Suggestions

INTERPRETATION:Most of the people suggested India Infoline to broaden their network so that it will be available to a large number of people. Some others suggested on improving the customer service whereas others laid emphasis on technical improvement.

161

FINDINGS 1. According to the survey most of the customers of “India Infoline”

says that it

is pocket friendly. 2. Coming to faith 70% say India Infoline Ltd is better than others stock brokers due to customers satisfaction. 3.Main purposes of investments are returns & liquidity. 4. Investors take risk as well as returns into their mind while making the investment 5. Businessmen are more interested in the stock market than others. 6. Commodity market is less preferred by the investors. 7. People want to invest their money in the security market but they don‟t have the proper knowledge. They are also not aware of hedging in stock market 8. Traders pay more emphasis on brokerage than service provided by brokerage houses.

9. India Infoline provides life time facility by giving only Rs 555 which is very cheap. 10. Customer is not very much aware about on line trading. 11. HDFC,ICICI direct provide their customers three types of account (Demat a/c, trading a/c, Bank a/c) but India Infoline provide only Demat a/c and Trading account a/c.

162

RECOMMENDATION & SUGGESTIONS

RECOMMENDATION The most vital problem spotted is of ignorance. Investors should be made aware of the benefits. Nobody will invest until and unless he is fully convinced. Investors should be made to realize that ignorance is no longer bliss and what they are losing by not investing.



After sales services and follow up calls are important for getting new references so trained telesales should be appointed for this purpose whose sole work should be to make feedback calls.



While interacting with the investors I found that most of the customers are unaware about the Mutual fund. Some of the people look upon mutual funds and equity trading as gambling. Thus a mutual fund awareness program can help to increase the penetration of mutual funds in the market.



.Company should have a scheme of rewards and recognition to employees and the field persons to boost their motivation.



There must be proper advertisement of the company by various media like Exhibition, Press releases, Newspaper, and Television etc.

163



There should be a good research team who has to survey the market and know about the client‟s satisfaction level and also found out the potential customer



.There should be regular training programme like Workshops, Seminars, and Meetings etc. for the sake of development of the organization and also for the development of the employees‟ performance simultaneously

164

SUGGESTIONS 1. Improvement in the opening of De-mat regarding signature criteria .It means that there signature criteria should be less for candidates & contract notice procedure is required.

2. There should be a limited number of clients under the relationship manger, so that he can handle new as well as old customer properly. . 3. Some promotional activities are required for the awareness of the customer, seminars should be held for providing information to prospective and present customers.

4. People at young age should be encouraged to invest in stock market.

5. There is high potential market for mutual fund in Noida city, but this market needs to be explored as investors are still hesi tated to invest their money in mutual funds. . 6. Investors have inadequate knowledge about equity market, so proper marketing of various schemes is required, company should arrange more and seminars on equity market.

7. Initial margin money is high. That money should be low.

165

CONCLUSION On the basis of the study it is found that India Infoline Ltd is better services Provider than the other stockbrokers because of their timely research and Personalized advice on what stocks to buy and sell. India Infoline Ltd. provides the facility on line trading as well as relationship manager facility for encouragement and protects the interest of the investors. It also provides the information through the internet and mobile alerts that what IPO‟s are coming in the market and it also provides its research on the future prospect of the IPO. Study also concludes that people are not much aware of commodity market and while it‟s going to be biggest market in India. The company should also organize seminars and similar activities to enhance the knowledge of prospective and existing customers, so that they feel more comfortable while investing in the stock market. The awareness of equity market is not up to marks among the people for which people is not attracting in this market. But the future is bright of the equity market in the coming future .If we do more and more activities regarding equity market and mutual funds then we can add more and more customers for India Infoline ltd.

166

BIBILIOGRAPHY BOOKS 

Production and operations management, written by R. Panneerselvam

 Research Methodology, written by Uma Sekaran Websites: 1) www.indiainfoline.com 2) www.google.com 3) www.nse.india.com 4) www.cdsl.com 7) http://www.capitaline.com 8) http://www.sharekhan ltd.com 9)http://www.indiainfoline.com

11. http://www.hdfcsecurity.com 12. http://www.karvy.com 13.http://www.bseindia.com 15. www.indiabulls.com

17. www.scribd.com