EXCECUTIVE SUMMARY

Investing is both Arts and Science. Every Individual has their own specific financial need and expectation based on their risk taking capabilities, whereas some needs and expectation are universal. Therefore, we find that the scenario o f t h e Stock Market is changing day by day hours by hours and minute by minute. The evaluation of financial planning has been increased t h r o u g h decades, which can be best seen in customers . Now a days investments have become very important part of income saving. There is growing competition between brokerage firms in post reform India.. At the time of investing money everyone look for the Risk factor involve in the Investment option. The Report is prepared on the basis of Research work done through the different Research Mythology the data is collected from both the source Primary sources which consist of Questionnaire and secondary data is collected from different sources such as Company website, Magazine and other sources. As the Online trading services of Master trust Limited have the best result in its field.

Online trading was initiated by NSE in India and soon after the other exchanges also followed it. There was a major boom in yr. 2000 when lots of online trading companies came with a bang but only few were survived because of lack of computer knowledge and low internet penetration. Thanks to all those who directly or indirectly help me to complete this project within a short span of time. For preparation of this report I would like to thanks to faculty members of our college and staff members of Master trust ltd.

INDUSTRY PROFILE History Of Online Trading in India:

In the mid-nineties screen based trading changed the face of transactions on Indian business. Net came as a helping hand, which also enhanced the comfort factor of the investors. Now, it is Internet based trading. Buying and selling shares via Net that is promising to take the investing experiences to another plane. BSE and NSE are the two leading stock exchanges in India. BSE was establish in 1875 and is the oldest in Asia. The NSE was established as a corporate body in 1993, with the primary objectives of ensuring nationwide electronic trading, high level of transparency and faster settlement circle. The NSE has been playing a catalytic role and has significantly contributed to the reforming of the secondary market in India in terms of micro-structure; market practices, trading volumes and use of state of the art technology. The use of sate llite communication technology for trading, using Very Small Aperture Terminals (VSATs), enabled NSE to rapidly expand across the length and breadth of the country. Subsequently, after the BSE was granted the required site permissions, it expanded its trading facilities to the remote corners of the land

Technology in NSE and BSE:

NSE 1
Master trust Ltd. a division of master was selected as the prime contractor and system integrator by the NSE to provide a total turnkey solution for the money markets and capital markets floor less trading system. The aim was to enable NSE to provide nationwide electronic trading with highest transparency in the market place.
1

WWW.nseindia.com

Using the client-server architecture, fault-to-learn computing and inmemory database, Tata Consultancy Services, solution gave NSE high visibility and impact. For the year 2006-07,the national security clearing and settlement system (NSCS) Processed settlements for over 172 million trades with a turnover of around Rs 5, 08,121 crores. In the year 2006-07nearly 2 million contracts were traded on NSE Future and Option system, with a national turnover of Rs. 1, 01,925 crores. Here approximately 818companies listed in NSE. NSE has the option for trading of securities in both Cash Trading and Future trading. Hence, while dealing with securities an investor can negotiate with the price listed in the NSE index.

BSE 2
The stock Exchange Mumbai, popularly Known as the Bombay stock Exchange limited is the oldest stock exchange in Asia with a rich Heritage. It was establ ished as The native share & Stock Brokers Association in July 1875 with 22 share broking. It the frist stock exchange in the country to permanent recognition in 1956 from the Government of India under the securities co ntract(regulation)Act 1956. BOLT, i.e. BSEs online trading system is designed and developed b y C M C L t d . , now a Tata Group company. This screen based trading system m a n u a l e n t r y m e t h o d o f t r a d i n g i n t h e r i n g , a n d w e n t l i n e o n March 1995. This enabled BSE to provide floor-less and fully automated screen based trading facilities in capital market instruments, with equal access to investors all over the country. BSE has only the option for trading of securities in Cash Trading. Hence, while dealing with securities an investor cannot negotiate with the price listed in the BSE index.
2

www.bseindia.com

Approximately 5639 companies listed in BSE & around 9400 brokers are trading in BSE & NSE along with 29 foreign brokers participating in online trading. One big advantage of web trading is that, market lot ceases to matter. A registered user, just need to log in the corresponding site and place order confirmation, which may be followed by physical slip. With Net trading it make little different, where the investor is,; e- broker gives him real time quotes and a chance to react immediately. Still to catch on: Online trading has not yet been taken off for various reasons: I. II. III. The concept is very new. Security concerns (Hacking and Connectivity) Potential investors in India are yet to trust their e -brokers. Hacking is a problem even with e -banking or e-commerce,

a n d potential users may well fear to live with this. Connectivity is anot her major problem. Right in the middle of hectic trading one may go offline, or the web may jam during heavy trading

SECURITIES EXCHANGE BOARD OF INDIA (SEBI)3

SEBI, which was a earlier established as an administrative body in April 1988, was given a statutory status January 1992. Controller o f C a p i t a l I s s u e ( C C I ) w a s a b o l i s h e d w i t h a v i e w t o h a v e S E B I a s a single agency to look after control over capital market. SEBI Act mainly deals with formation, management, staffing, accounts, reports, and audit of SEBI etc. It is the supervisory and regulatory authority for the stock and capital markets.

www.sebi.gov.in

SEBI functions

The SEBI can take following measures to fulfill its objectives:Regulate business in stock exchanges and other securities market. Control and Regulation of the stock Exchanges and stock brokers.

Development of stock and capital markets in the right direction. Registering and regulating self-regulatory organizations (like

stock Exchanges).

Promoting investors education and training of intermediaries. Prohibiting fraudulent and unfair trade practices relating to Securities Market. Prohibiting insider trading in securities. To ensure investor protection.

SEBI Guidelines:

Highlights of the guidelines issued by SEBI are summarized below. At least 60% of each kind of securities issued by company must offer to public subscription.

Offer must be made through a prospectus in newspapers for a period not less than three days, Minimum capital for listing on stock exchanges It should be noted that minimum equity capital requirement for listing on Bombay Stock Exchange is Rs. 10 crores.

Fresh issue must be de-materialized All fresh issue of capital w i l l h a v e c o m p u l s o r i l y g e t t h e i r s e c u r i t i e s a d m i t t e d w i t h a l l depositories for de-materialization.

Company shall promptly forward to Stock Exchange copies of Annual reports, notice, circulars sent to Share Holders.

INTERNET TRADING IN INDIA:

In the past, investors had no option but to contact their broker to get real time access to market data. The Net brings data to the investor on line and net broking enables him to trade on a click. Now information has become easily accessible to both retail as well as big investors. The development of broking in India can be categorized in 3 phases: 1. Stock brokers offering on their sites features such as live portfolio manager, live quotes, market research and news to attract more investors. 2. Brokers offering on line broking and relationship management by providing and offering analysis and information to investors during broking and non-broking hours based on their profile and needs, that is, customized services. 3. Brokers (now e-brokers) will offer value management or services such as initial public offerings on line, asset allocation, portfolio management, financial planning, tax planning, insurance services and enable the investors to take better and wellconsidered decisions. In the US, 82 per cent of the deals are done on line. The European on line broking market is expected to be of $8 billion and is likely to rise fivefold by 2002. In India, presently Internet trading can take place through the order routing system, which will route client orders to exchanges trading systems for execution of trades on stock exchanges (NSE and BSE). This will also require interface with banks to facilitate instant cash debit or credit and the depository system for debit or credit of securities. Objectives of Internet trading:

Increase transparency in the markets. Enhance market quality through improved liquidity, by increasing quote continuity and market depth.

Reduce settlement risks due to open trades, by elimination of mismatches.

Provide management information system (MIS). Introduce flexibility in system, to handle growing volumes easily and to support nationwide expansion of market activity.

Future of Internet Trading: International marketplaces are already witnessing re-alignments and changes with the emergence of electronic communication networks (ECNs) such as INSTINET and ISLAND, which are already contributing substantial business volumes to mainline exchanges such as NASDAQ and the NYSE. Concurrently, exchanges worldwide are looking at striking strategic alliances such as the Global Equity Market (GEM). With Net trading in securities and rapid consolidation between multiple stock exchanges, the international securities marketplace is fast becoming a "global village" through the creation of a universal virtual equity market. Therefore the challenge for the technology providers is to develop and deploy advanced e-trading tools and applications using electronic straight through processing technologies. MAJOR PLAYERS OF THE INDUSTRY S S Kantilal Ishwarlal Securities Pvt. Ltd. (sharekhan.com): ICICI Web Trade Ltd. (ICICIdirect.com): 5Paisa.com: Kotak Securities Limited (kotakstreet.com): India Bulls: Motilal Oswal Securities Ltd. (MOSt): Master Trust Ltd. HDFC Securities Ltd (HDFCsec): UTI SECURITIES LTD.: (UTISEL) IDBI Capital Market Services Ltd.

COMPETITIVE ANALYSIS Follower: The follower is just blindly following the other player which is leader and challenges. The players like 5 paisa, Motilal Oswal, HDFC Securities, Kotakstreet are the followers. LEADER: Icicidirect.com is a leader in the online account which is having 1, 24,000 account in the country. While in offline account Sharekhan is leading with 64,000 offline accounts. NICHER: ICICIdirect.com and Kotakstreet.com are the two stock broking houses which are focusing only on online investors. CHALLENGER: Sharekhan, Kotakstreet and Indiabulls come under this head. Sharekhan challenges competitors by providing quality services and research based advice. Indiabulls is also challenging with low brokerage rates and class one service

COMPANY PROFILE
Master trust Ltd. 4 Master Trust Group is one of the leading financial services company in India. We have a strong belief in nurturing investment culture, attitude and inculcating a very strong approach towards value investing forms the central part of any sound investment philosophy. With an impeccable track record in client servicing of over two decades, we have now grown to 650+ strong employee organization with over 1,50,000+ client relationships. At Master Trust, our endeavor is to constantly meet every financial need of our esteemed clients. master trust - is a one point shop for all the investment needs of a customer. The one-stop destination is specifically targeted towards the retail customers who require a very strong relationship driven approach towards value investing. The philosophy of master trust has its genesis from Master Trust groups belief in nurturing the investment culture towards value investing.

Board of Directors Mr. Harjeet Singh Arora (F.C.A., F.C.S.), is the Managing Director of the Company and has more than 25 years of experience in corporate, financial and merchant banking matters. . Mr. R.K.Singhania (F.C.A.) is well known personality in the corporate circles. He is the Director of the Company and was formerly the Director (Finance) with Indias premier Oswal group for more than 10 years. Mr. Pawan Chhabra (F.C.A.) is having a rich experience of more than 20 years in primary and secondary share market and merchant banking activities.

www.mastertrust.co.in , www.mastermony.co.in

 Mr. G.S. Chawla (B.E., M.B.A., D.B.F.) has worked with a public financial Institution for more than 12 years. Mr. Harinder Singh (B.Com, I.C.W.A.inter) has been monitoring the secondary market operations of the company for the last 12 years. History

2007 :- Set up regional offices at Baroda, Kolkata and Hyderabad 2006 :- Became SEBI registered Portfolio Manager 2005 :Acquired the membership of Bombay Stock Exchange Ltd.(BSE) Commenced Internet Trading and margin funding against Shares. 2004 : Became Member of NCDEX (National Commodity Derivatives Exchange Ltd) and MCX (Multi Commodity Exchange of India Ltd.) Introduced Virtual Private Network (VPN) Became Insurance Broker under name of M/s Master Insurance Brokers. 2002 : Entered into Insurance business as corporate agents for Life and General insure-acne. 2001 : Launched Depository Services as a Depository Participant of CDSL. Commenced Trading in Derivatives Segments in NSE 1999 : Launched Depository Services as a Depository Participant of NSDL 1997 : Became RBI approved Fully Fledged Money Changers 1995 : Master Trust Ltd. came out with the IPO (Initial Public Offer) of Equity Share & Fully Convertible Debenture. Upgraded Dealership of OTCEI to Membership. 1994 : Master Capital Services Ltd. became Corporate Members of NSE (National Stock Exchange of India Ltd.) 1993 : Acquired status of SEBI accredited Category I Merchant Bankers Became Dealer of OTCEI (Over the Counter Exchange of India) 1986 : Acquired membership of Ludhiana Stock Exchange under the name of M/s H Arora and Co. (later converted into a Corporate Membership as Master Share and Stock Brokers Ltd.)

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 1985 : The seeds of the Group were sown as Arora Financial Consultants (P) Limited (later converted into Master Trust Ltd.) Mission To always earn the right to be our clients first choice through personal & social wealth maximization To provide the best Customer Service and Product Innovation tuned to diverse needs of clientele. Continuous up-gradation with changing technology, while maintaining human values. Respond to progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices. Vision To be well diversified financial shop for wealth creation and being an ideal service provider in our domain of business Value System

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BENEFITS OF TRADING WITH MASTER TRUST

Only master trust offers the facility to trade at two major commodity exchanges of the country:

1. Multi Commodity Exchange of India Ltd, Mumbai (MCX) and 2. National Commodity and Derivative Exchange, Mumbai (NCDEX).

Master trust also equips you with world-class research, based on technical and fundamental study of all major commodities. Whats more master trust is in the process of launching several trading products and strategies to help you trade in the commodity futures segment. PRODUCTS & SERVICE OFFER Equity investment: Our retail equity business caters to the needs of individual Indian and Non-Resident Indian (NRI) investors. Master Trust Group offers broker assisted trade execution and automated online investing on all the stocks in BSE and NSE.If you seek advise, we have seasoned investment advisors to help you invest in stocks. If you are an expert investor, we offer you all the tolls to research a stock and invest on master trust .More still, you have variety of options to trade in stocks Delivery Trades: Like a stock for long term? Take delivery and wait for the gains Intra-day trades: Like a stock but only for a day? Simply trade intra-day by taking a margined position and trade upto 8 times of your deposit with us

Loan Against Shares: Like a stock for long term but want to put only part of the money? You can take delivery in your stock and pay us only a part of the purchase value. We will facilitate you by offering you LAS at nominal interest rates through Master Trust Limited. MTF Popularly known as Margin trade Finance Allows you to buy stock for the T+5 Settlement cycle by paying only a part of the purchase consideration Good for swing trade positions for an expert investor.

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IPO Initial Public offerings provide a very good opportunity for investors to enter into high growth companies early one when they come to capital markets for the first time for raising funds. master trust provides complete transaction support to investors for investments in primary markets through IPO's. The advisory team offers advice to investors to invest only in fundamentally sound IPOs. Mutual Fund Mutual Funds provide money management by specialists fund managers As an investment options providing broad diversification and covering range of investment objectives, philosophies, asset classes and risk exposures; mutual funds have become a must have for any well balanced investment portfolio. We at master trust offer Mutual fund investment across 1000+ schemes and 22+ fund houses through our dedicated advisors. For net savvy investor, we offer seamless investing experience through our online MF investment platform.

Derivatives Trading At mastertrust, we not only help you invest in stocks but also help you mitigate risk by hedging your portfolio positions through variety of Futures and Options strategies. And, if you like to speculate, we offer seamless trading in Futures and Options on NSE . We provide you with all the tools like charting, data like IV, PCR, CoC and technical analysis for making informed decisions and substantial gains. MASTER TRUST SEEN TO REVIVE INTEREST IN NET TRADING TRADING in stock markets through the Internet, which took a dip due to investor apathy because of prolonged bearishness in recent years, is witnessing a revival of interest and is expected to record growth in the coming years. Speaking to Business Line on the sidelines of the opening of the Coimbatore branch of Master trust, he said the company had invested about Rs 13 crore in the last two years in creating the requisite infrastructure by way of branches and for Internet trad-

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ing. With presence in about 110 cities across the country now, it will seek to consolidate its presence in the current year and focus on expanding its membership. He said Master trust enjoyed about 20 per cent market share in Web business (Internet trading) in stock markets. Three years ago , Web trading showed lot of promise but with the market witnessing a downturn, there was not much interest among retail customers. PRODUCTS OFFERED BY MASTER TRUST MASTER TRUSTs products are basically divided into online and offline products.

MASTER TRUST

Off-Line

On-Line

Classic /Lite Off-Line

Inet.ne

MASTER SWIFT

The Off-Line account is trading account through which one can buy and sell through his/her telephone or by personal visit at MASTER TRUST shop. This a/c is for those who are not comfortable with computer and want to trade. On-Line The Online trading facilities provided by MASTER TRUST is basically divided into Three types of accounts, viz. Master Classic Account and inet.net lite and Odin Diet.

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HOW TO USE: By entering the Login ID and Browsing Password you can login into your CLASSIC A/C or CLASSIC LITE A/C. MASTER SWIFT

The various benefits the client gets from the online trading are: Freedom from Paperwork: Integrated trading, bank and Demat account (auto pay-in and pay-out of securities) with digital contracts removes all paperwork. Instant Credit And Transfer: Instant transfer of funds from bank accounts of clients choice to his/her Master trust trading account. Trade Anywhere: Enjoy the ease of trading from any part of the world in a completely secure environment. Dial n Trade: Call Master trust on a toll free number to place orders through Master trusts tele-brokers. Timely Advice: Make informed decisions with expert advice, investment calls and live market commentary.

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Real-Time Portfolio Tracking: Benefit from real-time information of your investment and current portfolio value. After-Hour Orders: The Client can place orders after the market hours, which get executed as soon as markets open.

* www.mastertrust.co.in
www.mastermoney.co.in

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THEORITICAL CONCEPT
ONLINE TRADING INFRASTRUCTURE The emergence of online exchanges has facilitated faster transactions by providing online trading p o r t a l s a n d b r o k e r a g e h o u s e s e a s e a n d f l e x i b i l i t y . T h e I n t e r n e t h a s i n d e e d o p e n e d u p n e w opportunities for conducting the business. The worldwide stock exchanges has made a major shift from the traditional method of trading and now conduct a bulk of its business online through its b r o k e r s a n d p a r t n e r s . I n t h e d e v e l o p e d c o u n t r i e s m a j o r l y a l l t h e e x c h a n g e t r a n s a c t i o n s a r e conducted online. The trend took off slowly in India and the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) two of the largest exchanges in India have been conducting online trade successfully for some time. THE NETWORK DESIGN Any online exchange should always be -on, safe, secure, redu nd a n t a n d s h o u l d h a v e a d e q u a t e backup & recovery processes. The Vice President of NSE-IT G.M Shenoy tells that the basic design objective of NSE was to provide fair, equal and transparent access across all NSE nationwide locations and to provide connectivity to the trading members as soon as possible .The telecom sector is fairly liberal nowadays but way back in 1993 the technology was maturing and was very costly. The cost of lease lines was almost ten times as much as it is today. Satellite technology was a boon since it allowed quicker deployment than leased lines. Today NSE has the country's largest VSAT network with over 3000 VSATs and expects to grow to more than 4000VSATs very soon. NEAT -THE NSE ARCHITECTURE NSE has deployed NIBIS (NSE's Internet Based Information System) for real-time dissemination it of trading information over the Internet and NEAT a client -

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server-based application to help its operations. All the trading information is stored in NEAT an in-memory database at the server end for achieving minimum response time and maximum system availability for users. The trading server software runs on a fault-tolerant STRATUS mainframe and the client software runs on Windows PCs. The telecommunications network uses the X.25 protocol and is the backbone of the automated trading system. Each trading member trades on the NSE with other members through a PC located in the trading member's office. The trading members on the Wholesale Debt Market segment are linked to the central computer at the NSE through dedicated 64 Kbps leased lines and VSAT terminals. These leased lines are multiplexed using dedicated 2 MB optical-fiber links. The WDM participants connect to the trading system through dial-up links. The exchange uses RISC- based Unix servers from Digital and HP for backoffice processing. Applications like Oracle 7 and SQL/Oracle Forms 4.5 front ends are used for the exchange functions. BOLT-THE BSE ARCHITECTURE BSE has deployed an Online Trading system (BOLT) on March 14, 1995. It works on a TandemS74016 platform running on 16 CPUs. The Tandem Himalaya S74016 machines act as the backend to more than 8000 Trader Workstations networked on Ethernet, VSAT and Managed Leased Data Network (MLDN). The systems claim to handle up to two million trades a day. BOLT has a two-tier architecture. The trader workstations are connected directly to the backend server which acts as a communication server and a Central Trading Engin e (CTE). Other services like information dissemination, index computation, and position monitoring are also provided by the system. A transaction monitoring facility in the Ta ndem architecture helps keep data integrity through non -stop SQL. With the help of MTNL, BSE has setup a MLDN Network comprising 300 2 Mbps lines and 1500 64 Kbps lines which connect all regional stock exchanges and offices in Mumbai. Access to market related information through the trader workstations is essential for the market participants to act on real-time basis and take instantaneous decisions. BOLT has been interfaced with various information vendors like Bloom-

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berg, Bridge, and Reuters. Market information is fed to news agencies in real time. The exchange plans to enhance the capabilities further to have an integrated two-way information flow. ADVANTAGES OF ONLINE TRADING Provides with the Freedom of Information . Provides Control to Investors Money. Provides access to the market Ensures the best price for investors Online trading offers greater transparency Provides hassle free trading Online trading allows instant trade execution It provides a level playing field Online trading reduces the settlement risk Provides live financial news & analysis Online help desk Instant order trade confirmations Keeps Information Secure

DISADVANTAGES OF ONLINE TRADING In online terminal, investor cant get customized expert advice, whereas in offline the broker gives suggestions according to investors strategy (i.e. short term or long-term) Brokerage is high compared to offline. Privacy is less due to hacking scandals Transactional errors due to technical problems

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Customer Satisfaction through Online Trading

The word satisfaction is central to many definitions and in a marketing context it is used to have many 'specific' meanings: Customer satisfaction (CS) is an experience-based assessment made by the customer of how far his own expectations about the individual characteristics or the overall functionality of the services obtained from the provider have been fulfilled . Satisfaction is merely the result of 'things not going wrong'; 'Satisfying the needs and desires of the consumer' . Satisfaction-as-delight and Customer evaluations of the quality of goods and services .

customer satisfaction.
To attain true customer satisfaction the companies need to achieve quality not only by eliminating the causes for direct complaints but they need provide their products with excellent, attractive quality - provide the delight to the customer .Customer satisfaction is evaluated for service and product through different methods. Methods for evaluating customer satisfaction with products are as bellow: Kano Model of Customer Satisfaction Innovation framework And two most popular methods for evaluating customer satisfaction in services sector are: Service quality model The SERVQUAL model [Parasuraman] As Online Trading is classified in service category, SERVQUAL model applied in this empirical research. The main reason of applying this model is the common utilize of

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SERVQUAL model in this kind of researches related to satisfaction evaluation. A number of research workers,

Johnson have tried to identify key determinants by which a customer

assesses service quality and consequently result in satisfaction or not. Parasuraman [16] came up with five determinants that can be used to measure service quality. This scale named SERVQUAL and has been developed for the service sector. It has five generic dimensions or factors and is stated as follows: Tangibles: Physical facilities, equipment and appearance of personnel. Reliability: Ability to perform the promised service dependably and accurately. Responsiveness: Willingness to help customers and provide prompt service. Assurance (including competence, courtesy, credibility and security): Knowledge and courtesy of employees and their ability to inspire trust and confidence.

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LITERATURE REVIEW
A STUDY ON CUSTUMER SATISFACTION TOWARDS ON-LINE SHARE TRADING 5 Woody Allen --Money is better than poverty, if only for financial reason India is a developing economy. Its prospering in all spheres. Share Market is a compelling determination of the economy and the financial situation of a country. Share market is an area which fascinates each and every individual who is craving for more money. Some common phrases are If we want to earn just try with share market. This is a good start to start education on i nvesting putting your money where it can gain greater returns then just earning interest in a high -interest account. Investments in shares or stock can be daunting as there is vast and various amounts of information on investments and everyone is ready and willing to take your money. Steps are to be taken for start Share trading As beginners we should understand one thing. If we are planning to invest in share market, first we have to categorize our self.Are we a long term investor ?Are we a sort term investor ? (Daily trading). Long term investor

Its here we invest. We are most secured in this case because we dont consider to be used for emergency. Any company will one day have a growth curve for morewe have more chances to lose more.

Link :- http://www.jimsjournal.org/13%20Chan-Chien%20Chiu.pdf

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Short term investor (Risky)

Remember its here we play not invest.1.Make investment break ups: If we have x RS in our hand dont getcarried away to buy shares for all x RS. Always we should have fifty percent in our hand.* Chan-Chien Chiu, Associate Professor, Department of Information Engineering and informatics, *Tzu Chi College of Technology, Taiwan6 According to the definition of Gomez (1998), the securities online trading means those securities that provide trading platform via internet in trading the securities. Where, the securities don't require providing trading desk lobby, no traders, all they need is simply a virtual internet trading platform and automatic voice phone system in accepting the investors trading orders. Trombly(2001)Santini (1996) thought the online trading in U.S. has occupied most of the market share that many online trading securities are facing difficulties like deficit, lay-off, customers leaving, and retreat from the market. According to the study of Peterson(2000)Fan et al., (2000), the search cost on internet in U.S. has been greatly reduced but meanwhile reduced the loyalty of customers to the securities that the issue of online trading service quality provided by the securities is worth of study. Crosby, et al., (1990) defined the service quality as testers recognized objectively the feeling as brought by the service after enjoying it, and the relationship of traders and customers which determines the future possibility in continuous trading. Even later Lag ace, et al., (1991) revised the relative quality model proposed by Crosby, et al., (1990), as well as the quality model proposed by Fletcher, et al., (2000) later on, they were focused on the service quality which business entity provided to the customers; where, Davis (1989) has ever divided the online trading service quality into two aspects: the application and practical usage of the web site. This study considered it is necessary to probe in further about the service quality of the online trading

Link: http://www.evanigam.com/Online-Stock-Market/Stock-Market-Trading.htm

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Marr (1986) thought the quality measurement by customer orientation is easier to find out if customers are satisfactory; where, he proposed 11 basic principles in designing "quantized satisfaction of consumers". Zeithaml and Bitner(1996) proposed "Relationship chart of customers' recognition of service quality and customers satisfaction" to segregate this two concepts; where, defining service quality, including 5 factors of service quality as recognized by the customers; while, satisfaction is broadly affected by the service quality, product quality, pricing, situation and personal factors. Thus, this study shall take the concept of segregation in analyzing the satisfaction of service quality and customer recognition, and trying to build up the analysis model of customer service quality in importance-satisfaction. This is not only to probe in another layer of service quality, but also provide management decision authority the tool in drafting up the operating strategy.

Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Gloria W.W. Chan7 Moez Limayem , Christy M. K. Cheung, Lei Zhu, Timothy Kwong, Prior literature provides us with a rich foundation on which to build a research framework for the study of online consumer behavior. As suggested by Douglas et al. (1994), strong Theoretical and conceptual frameworks can be developed through an integration of Constructs from different research traditions and disciplines. In the current study, we review the prior literature of online consumer behavior and analyze the theories and the underpinning factors.

Link: http://www.evanigam.com/Online-Stock-Market/Online-Share-Trading.html

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A systematic and structured approach in search and review is strongly recommended in writing sound IS literature reviews (Webster and Watson 2002). In this study, we conducted an exhaustive and systematic electronic search using ProQuest, Social Science

Citation Index, IEEE Xplore, and other bibliographic sources with keywords such as online shopping, Internet shopping and online consumer purchasing behavior. In addition to the search for referred journal articles, we included three IS-related conferences Proceedings (AMCIS, HICSS, ICIS) in our literature search and analysis. A total of 351 articles in the area of online consumer behavior were identified from 1994 to April 2002. For any study to be included in our analysis, it has to focus primarily on Consumer purchasing behavior on the Web. Electronic copies of most articles were Obtained from digital libraries and online databases. They were stored and analyzed with the use of the EndNote software.
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Link :- http://www.jimsjournal.org/13%20Chan-Chien%20Chiu.pdf

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RESEARCH METHODOLOGY
problem definition:Basically find out what is customer requirement in way of investment in derivative, commodity and equity to get profit or loss and customers Agree with companys service. Research objectives The primary objective of the study is to check literacy ratio of Online trading among the people of Surat City. 1. 2. 3. To know the awareness management investor. To mastered the satisfaction level of toward online trading facility. To identify reasons for dissatisfaction towards on online trading. Research design : sampling design :It is very true that its very difficult to do the research with the whole universe. As we know that it is not feasible to go for population survey because of the numerous customers and their scattered location. So for this purpose sample size has to be determined well in advance and selection of sample also must be scientific so that it represents the whole universe. So far as our research is concerned, we have taken sample size of 111 respondents. We have selected Income Earners with savings to invest in Surat city. All the respondents are stratified on the basis of their profession and savings. We have selected the samples as per our convenience.

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Sample universe Sampling Technique Sample size Sampling Unit:

Surat city Convening sampling 111 respondents Professional Business Man Government Employees Employees working in private firms Students

Data collaction methods :The data, which is collected directly from the respondents to the base of knowledge and belief of the research, are called primary data. The normal procedure is to interview some people individually to get a sense of how people feel about the derivatives & commodities segment. So far as our research is concerned, primary data is the main source of information. We have collected data through Questionnaire and information from respondent. Limitation of the study :The limitations of this study are as follows: Personal Bias: People may have personal bias towards particular investment option so they may not give correct information and due to which conclusion may be derived.

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Area: The area was limited to surat city only, so we can not know the degree of the literacy outside the city. Sample Size: The last limitation is Sample size, taken by us is of 111 only; due to which we may not get the proper results

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DATA ANALYSIS AND INTERPRTATION

RESEARCH RESULT 1. Male Female Gender ratio 96 15 86% 14%

Interpretation From the above data it is known that mostly males are interested in online trading .that is form the total respondent 86% are male doing online trading.

2. Age below -30 30 - 50 above 50 36 60 15 32% 54% 14%

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Interpretation From the above data mostly between 30 50 age people are doing online trading . 3. Educational Qualification school level under graduate post graduate other 29 70 12 0 26% 63% 11% 0%

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Interpretation From the above data mostly under graduate 70 people. School level 29 people and only 12 people post graduate people doing online trading. 4. Income Below - 10,000 10,000 - 30,000 30,000 - 50,000 above -50,000 18 49 33 11 16% 44% 30% 10%

Interpretation From the above data mostly 49 people income is 10000- 30000 and 33 peoples income 30000- 50000 and 18 peoples income below 10000and only 11 peoples income above 50000.

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5. Do you Trade online ? Yes NO 100 00 100% 00

Yes

1 2

Interpretation When the respondents were asked about the do you trade online people respond 100%. 6. what induced you to begin share trading Reference by friends Online advertisement 69 19 62% 17% 20% 1%

Advice by Financial consultants 22 Other 1

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Interpretation When the respondents were asked about the what induced you to begin share trading, after analyses the 69 people refer by the friends and 22 people refer by the financial adviser and 19 people refer by the online adviser. 7. How often do you do online share trading Daily basis weekly basis monthly basis irregular 63 36 11 1 57% 32% 10% 1%

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INTERPRETATION When asked about the time which the respondents would like to How often do you do online share trading after analyses 63 people trade daily, 36 trade weekly basis, 11 monthly basis and 1 irregular. 7. In which of the following do you trade online 43 89 63 86 83 39% 81% 57% 78% 75%

MUTUAL FUND Equity IPOs commodities Future & Option

Interpretation When asked to the respondents that out of the given three options in which they are trading .in the given data mostly 89 people trade in equity and 86 people in commodity, 83 people in Future & option ,63 in IPOs and 43 people in MUTUAL FUND.

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10. Do you Agree with online trade system Fully-agree Agree Disagree 71 33 3 64% 30% 3%

Interpretation When asked to the respondents that out of the do you Agree with online trade system 71 people fully agree with us and 33 people agree and only 3 people nos satisfied with us.

8. Do you Agree with credit limit provided by the company

Fully-agree Agree Disagree

54 46 7

49% 41% 6%

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Interpretation When asked to the respondents that out of the Do you Agree with credit limit provided by the company after analyses mostly 54 people Fully agree with and 46 people agree and 7 people dis agree with credits limit provide by the company. 11. Do you Agree with Fund security Fully agree Agree Dis agree 50 52 7 45% 47% 6%

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Interpretation When asked to the respondents that out of the Do you Agree with Fund security by the company after analyses 52 people agree and 52 fully agree and only 7 people dis agree with us . 12. Do you Agree with fund transfer system Fully-agree Agree Disagree 37 61 9 33% 55% 8%

Interpretation When asked to the respondents that out of the Do you Agree with fund transfer system by the company after analyses 37 people fully agree and 61 agree and 9 people dis agree with us .

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13. Do you Agree with commission / brokerage rate Fully-agree Agree Disagree 29 67 13 26% 60% 12%

Interpretation When asked to the respondents that out of the Do you Agree with commission / brokerage rate company after analyses mostly people 29 fully agree and 67 agree with us . 14. Do you Agree with online status ( A/C , FUND ,TRAD HISTORY ) Fully-agree Agree Disagree 40 58 10 36% 52% 9%

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Interpretation When asked to the respondents that out of the Do you Agree with online status ( A/C , FUND ,TRAD HISTORY )company after analyses 58 people agree with this service. And 40 people they fully agree with us and only 10 people not agree with service provider . 15. DO you Agree with online stock advise Fully-agree Agree Disagree 35 47 27 32% 42% 24%

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Interpretation When asked to the respondents that out of the DO you Agree with online stock advise after analyses mostly 47 people they are agree with online stock advise and 35 people they fully agree and 27 people they not satisfied with online stock advise.

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Findings and conclusions

When the respondents were asked about the what induced you to begin share trading, after analyses data mostly refer by the reference by friends and second refer to advice by financial consultants.

When asked about the time which the respondents would like to How often do you do online share trading after analyses 63 people trade daily, 36 trade weekly basis, 11 monthly basis and 1 irregular.

When asked to the respondents that out of the given three options in which they are trading .in the given data mostly 89 people trade in equity and 86 people in commodity, 83 people in Future & option ,63 in IPOs and 43 people in MUTUAL FUND.

When asked to the respondents that out of the do you Agree with online trade system 71 people fully agree with us and 33 people agree and only 3 people dissatisfied with us.

When asked to the respondents that out of the Do you Agree with credit limit provided by the company after analyses mostly 54 people Fully agree with and 46 people agree and 7 people dis agree with credits limit provide by the company.

When asked to the respondents that out of the Do you Agree with Fund security by the company after analyses 52 people agree and 52 fully agree and only 7 people dis agree with us .

When asked to the respondents that out of the Do you Agree with fund transfer system by the company after analyses 37 people fully agree and 61 agree and 9 people dis agree with us .

When asked to the respondents that out of the Do you Agree with commission / brokerage rate company after analyses mostly people 29 fully agree and 67 agree with us .

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When asked to the respondents that out of the Do you Agree with online status ( A/C , FUND ,TRAD HISTORY )company after analyses 58 people agree with this service. And 40 people they fully agree with us and only 10 people not agree with service provider .

When asked to the respondents that out of the DO you Agree with online stock advise after analyses mostly 47 people they are agree with online stock advise and 35 people they fully agree and 27 people they not satisfied with online stock advise.

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Recommendations
Master trust needs to make its marketing team strong and also it should increase marketing activities such as promotional campaigns.

Master trust should educate the investors about online trading by organizing classes, corporate presentations, taking part in consumer fairs, organizing events.

Master trust can also use Newspapers and Local New Channels as a medium of advertising.

Master trust may also use its helpline number for giving education on stock market.

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Bibliography and References Book

Kothari C.R., Research Methodology, New Delhi, Vikas Publishing House pvt.Ltd.. Pathak Bharti v., Indian Financial System, Delhi, Person Education (Singapore) pvt.Ltd. Websites 1. www.bseindia.com 2. www.nseindia.com 3. www.mastertrust.co.in 4. www.mastermoney.co.in 5. www.mcx.com 6. www.5paisa.com 7. www.Indiabulls.com Link :*Link :- http://www.jimsjournal.org/13%20Chan-Chien%20Chiu.pdf *Link: http://www.evanigam.com/Online-Stock-Market/Stock-Market-Trading.htm * Link: http://www.evanigam.com/Online-Stock-Market/Online-Share-Trading.html * Link :- http://www.jimsjournal.org/13%20Chan-Chien%20Chiu.pdf

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Annexure
QUESTIONNAIRE 1. Name :2. Address :3. Gender :Male 4. Age :( ) ( ) ( ) below -30 30 - 50 above 50 ( ) Female ( )

5. Education Qualification ( ) school level ( ) under graduate ( ) post graduate ( ) other 6. .do you trade online? Yes ( ) No ( )

7. do you satisfied with the credit limit period provided by the company Fully agree ( ) Agree ( ) Dis-agree ( )

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8. Do you satisfied with online trade system Fully agree ( ) Agree ( ) Dis Agree ( )

9. Do you satisfied with fund transfer system services Fully agree ( ) Agree( ) Dis Agree ( )

10. Do you satisfied with fund security . Fully agree ( ) Agree ( ) Dis Agree ( )

11. Do you satisfied with commission / brokerage rate Fully agree ( ) Agree ( ) Dis Agree ( )

12. Do you satisfied with check your status (A/C , tread , fund )on online. Fully agree ( ) Agree ( ) Dis Agree ( )

13. Do you satisfied with online stock broker adviser . Fully agree ( ) Agree ( ) Dis Agree ( )

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