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A PROJECT REPORT ON

An Analytical Study on the online trading & Its Impact on the Growth of the
business in Eluru with reference to Aditya Birla money Ltd.

A Project Report submitted
in the fulfillment of the
Requirement in M.B.A

Submitted
T.Kiranmayi
Roll No: 12ME1E00048

Department of M.B.A
RAMACHANDRA COLLEGE OF ENGINEERING
(Affiliated to JNTU, Kakinada)




DECLARATION
I T.Kiranmayi here by declare that the Project Report that is being submitted here
which is a result of the completion of the project An Analytical Study on the online
trading & its impact on the growth of the business ad with reference to Aditya Birla
money Ltd.
The report has been written and submitted by me under the personal guidance of
Mr.T.Dileep, faculty in the Department Of Business Administration, Ramachandra
college of Engineering.
I further declare that it is my original work done as a part of my academic course and
as not been submitted elsewhere.





















ACKNOWLEDGEMENT
I would like to express our deepest gratitude and thanks to Mrs. K. Lalitha Bhavani
Madam, Head of the Department for her valuable support in doing my project. She
has been a source of encouragement and guidance in all our endeavors.
I would like to express my sincere thanks to Mr. Chandra sekran (project
Manager) the Aditya Birla Money for extending his cooperation, in spite of his busy
schedule. I offer sincere gratitude to him for giving all possible information and left
no stones unturned in making me understand the various aspects regarding
management.
I owe my sincere thanks to our principal Dr. S.M.V.SHARIEF for having
provided me with an opportunity to do this project in the area of my choice.
I express our profound thanks to T.Dileep , project guide, for his consistent
encouragement and invaluable suggestion in completing this project, without him the
completion of this project would be practically impossible.
I also thank the others in the management who decided my various doubts and helped
me understanding their respective department.












LIST OF CONTENTS

CHAPTER
NO
CONTENTS PAGE NO
1 INTRODUCTION
Objectives
Need and scope of the study
Limitations
2 RESEARCH
METHODOLOGY

3 INDUSTRY PROFILE
4 COMPANY PROFILE
5 THEORETICAL
FRAMEWORK

6 ANALYSIS AND
INTERPRETATIONS

7 FINDINGS&
SUGGESTIONS

8 CONCLUSION &
BIBLIOGRAPHY
















INTRODUCTION
INTRODUCTION:-
The stock market has fascinated people all through the years. Many
have made fortunes, and others have lost them investing and trading on this stock
market. Almost every country has its own stock exchanges. The stock market is a
place where people, either on behalf of their clients or their organization or
themselves bid to buy a number of shares at a specific price on the other side another
set of people asking to sell the same stock for a different price. These are technically
called the bid and ask price when a price from bidding side agrees with a price
from the asking price, a trade is preformed. In heavy volume transactions stocks, the
difference between the bid and the ask price is marginal. The answer to this is the
variation between supply and demand of the stock in question in simple terms when a
particular stock is demanded heavily and the supply is short, the share price for the
stock goes up since people are ready to buy that stock with a higher price than the
current price, and people who want to sell or ready to wait and sell at a higher prices.
Definition of stock exchange:-
Stock exchange means anybody or individuals weather incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of
buying, and selling or dealing in securities.
It is an association of member brokers for the purpose of self regulation or protecting
the interest of its members it can operate only if it is recognize by the government
under the securities contracts act, 1956.The recognisation is granted under section 3 of
the act by the central government, ministry of finance.
BRIEF ABOUT THE STOCK EXCHANGE
Stock Exchange is a market like any other centralized market where both buyers and
sellers come and conduct their business of purchase and sale of shares & securities. In
other words, it is a market place for shares and securities where trading takes place in
a controlled and protected environment.
MEANING OF STOCK EXCHANGE
A stock exchange, share market or bourse is a corporation or mutual organization
which provides "trading" facilities for stock brokers and traders, to trade stocks and
other securities. Stock exchanges also provide facilities for the issue and redemption
of securities as well as other financial instruments and capital events including the
payment of income and dividends. The securities traded on a stock exchange include:
shares issued by companies, unit trusts and other pooled investment products and
bonds. To be able to trade a security on a certain stock exchange, it has to be listed
there. Usually there is a central location at least for recordkeeping, but trade is less
and less linked to such a physical place, as modern markets are electronic networks,
which gives them advantages of speed and cost of transactions. Trade on an exchange
is by members only. The initial offering of stocks and bonds to investors is by
definition done in the primary market and subsequent trading is done in the secondary
market. A stock exchange is often the most important component of a stock market.
Supply and demand in stock markets is driven by various factors which, as in all free
markets, affect the price of stocks (see stock valuation).

There is usually no compulsion to issue stock via the stock exchange itself, nor must
stock be subsequently traded on the exchange. Such trading is said to be off exchange
or over-the-counter. This is the usual way that bonds are traded. Increasingly, stock
exchanges are part of a global market for securities.

1.3.2 CONCEPT OF SHARE TRADING
The concept of share broking emerged after the establishment of the joint stock
companies. The ownership of the companies was divided into small parts and that
every part was called share. So, the term Share denominates some part in the
ownership of the company. The shares are freely transferable subject to the some
certain restrictions. When the need was felt to sell the shares by the owner of the
shares, it was difficult to find out the buyers of the shares who want to buy the
shares at the price the seller want to sell. At that time a need was felt to bring the
buyers and sellers on a common platform. To solve this problem, a group of persons
came into picture, which used to bring the buyers and sellers together for the trade of
the shares. These persons are called the share Brokers who find the persons who wish
to buy or sell their securities. The whole process of finding the buyers and sellers of
the securities by the brokers is called the Share Broking.
The origination of the Indian securities market may be traced back to 1975, when 22
enterprise brokers under a Banyan tree established the Bombay Stock Exchange
(BSE). Over the last 130 years, the Indian securities market has evolved continuously
to become one of the most dynamic, modern international standards both in terms of
structure and in terms of operating efficiency.

OBJECTIVES OF THE STUDY:-
The objectives of the study were:
To study the nature and structure of the share market.
To know the function of Aditya Birla Money Ltd.
To provide the way of approach for the investor to invest wisely in the market.
To know the online trading procedure.
NEED OF THE STUDY :-
Stock exchange is integral part of the capital market. It is the most perfect type of
market for Security whether of Government of Semi- Government bodies or other
public bodies as also for shares and debentures issued by joint stock enterprises.
Knowing about the latest and future development in the stock
exchange trading system.
To know how the online trading- process helps investors and brokers.
Latest and future development in the Stock Exchange Online trading
system.
Online trading is useful for immediate settlement.
Easy transfer of Demat shares.

SCOPE OF THE STUDY :-
The study was made to have an insight view about on-line trading system Aditya Birla
Money and comparison of online trading system BSE and NSE in India, the scope of
study was to identify various problems exist in online trading system, working
procedure of on-line trading system etc., the study was carried with reference to only
Aditya Birla Money limited.
LIMITATIONS:-
Despite of the training my level best, there were still some limitation which I
think remains there to draw fruitful conclusion. There were some practical
problem which come across and could not be properly death with
The advisory services being promised by the brokers would be of little use to
investors looking for an insight into the market.

As a client one will access the NSE through a server of the online brokerage
and this may involve queuing delays

If one like to ask his broker "what is looking good today " he may not be able
to do so. If he wants advice on a particular stock in his portfolio he may not
even be able to get that.












RESEARCH METHODOLOGY











Methodology is a systematic procedure of collecting information in order to analyze
and verify a phenomenon. The collection of information is done two principle
sources. They are as follows.
DATA COLLECTION :-
Sources of data :
The task of collecting data being after a research problem has been defined and plan is
chalked and plan is chalked out. This study pertains to collect data from primary
sources primary data and from secondary sources secondary data.
Primary data
Primary data are that information which is collected, fresh and fir the first time thus
happens to be original in character primary data can be collected in marketing by
three basic methods, viz., survey, observation and experiments.
Secondary data
On the other hand are those, which have already been passed through the statistical
process.
The secondary data are that information which is collected from internal
sources as well as external sources, Wizs from the company own the records and
documents.
Secondary data was collected from the registers, manuals, information bulletins
maintained by the personnel department and other records, information collected in
this manner was immediately complied processed manually and a statistical structure
was given to the data to help interpretation of the statistical data.
SAMPLING
SAMPLE SIZE
The total size of the study that was conducted is 100.
SAMPLING PROCEDURE
Selected for this study in area sampling /cluster sampling.
THE STATISTICAL TOOLS USED IN THIS ANALYSIS ARE :
ANOVA (F-Test)
The analysis of variance (ANOVA or F-test) is used in such problem where a research
wants to test for the significances of the difference between more than two as sample
mean. This is one of the most powerful statistical techniques. The ANOVA is used in
every type of experiment design concentrating both natural and social sciences.
One Way Classification:-
In one way classifications, data are collected according to one criterion. The null
hypothesis takes the form that is; arithmetic means of the population from which the
K samples are randomly drawn are equal to one another.
Following steps are involved in the analysis of variance
i) Compute the variance between the samples:
Further steps involved to calculate variance between samples are calculated the mean
of each samples.
a) Calculated the grand average mean.
b) Take the difference between mean of the various samples and grand averages.

c) Square these deviations and obtain the total which will give sum
square between the samples and
d) Divide the total obtained in steps (d) by degree of freedom. The
degrees of freedom will be one less than the no. of samples.
ii) Calculated the variance with in the samples
The step involved here is
a) Calculated the mean of each sample.
b) Take the deviations of various items in a sample from the mean
values of the respective samples.
c) Square these deviations and obtain the total which gives the sum
of squares within the samples and
d) Divided the total obtained in the step (c) by degrees of freedom.
The degrees of freedom are obtained by deducting from the total
no. of items the no. of samples.
Degree of freedom = n k
Where,
k-is the no. of samples
n-is the total no. of all observations
iii) Calculated the F ratio as follows

Variance between the samples
F = -------------------------------------
Variance within the samples
Compare the calculated F values of freedom of at certain level of significance
(Generally 0.05).
If the calculated values of F exceeds the tabular values. Then the different in
samples mean is significant that is due to simple sampling fluctuation or samples do
not come from the same population on the other hand, it the calculated values F is less
than
the table values, the difference is not significant and hence, could have arisen
due to fluctuation of simple sampling.







INDUSTRY PROFILE












INDUSTRY PROFILE:
The term Capital Market refers to the institutional arrangements for
facilitating the borrowing and lending of long term funds. In the widest sense, it
consists of a series of channels through which the savings the community are made
available for industrial and commercial enterprises and public authorities. It is
concerned with those private savings, individual as well as corporate, that are turned
into investments through new capital issues and also new semi-government bodies. It
may be defined as an organized mechanism for effective and efficient transfer of
money capital or financial resources from the investing parties, i.e., individuals or
institutional savers to the entrepreneurs engaged in industry or commerce in the
business either is in the private or public sectors of an economy.
CAPITAL MARKET:
It is a place where people buy and sell financial instruments, be it
equity or debt.
It is a mechanism to facilitate the exchange of financial sassets.
An efficient capital market is a pre-requisite of economic development. And
organized and well developed capital market operating in a free market economy, 1)
Ensures best possible co-ordination and balance between the flow of savings on the
one hand and the flow of investment leading to capital formation on the other; 2)
Directs the flow of savings into most profitable channels and thereby ensures
optimum utilization of financial resources. Thus, an ideal capital market is one where
finance is used as a hand-maid to serve the needs of industry. Finance is available at
a reasonable rate of return for any proposition, which offers a prospective yield
sufficient to make borrowing worthwhile. The development of savings, proper
organization of intermediary institutions and entrepreneurial qualities of the people.
The capital market must facilitate the movement of capital to the point of highest
yield. Thus, a capital market strives for a) The mobilization or concentration of
national savings for economic development, and b) The mobilization and import of
foreign capital and investment to augment the deficit in the required financial
resources so as maintain the expected rate of economic growth.
FUNCTIONS OF CAPITAL MARKET:
Mobilization of financial resources on a nation-wide scale.
Securing the foreign capital and know-how to fill up the deficit in the
required resources for economic growth at a faster rate.
Effective allocation of the mobilized financial resources, by directing the
same to project yielding highest yield or to the projects needed to promote
balanced economic development.
The capital Market consists of the primary market and the secondary market
and there is a close link between them. The primary market creates long term
instruments through which corporate entities borrow from the capital market. But
secondary market is the one, which provides liquidity and the marketability to those
instruments.
These markets interact.
Primary Market
Secondary Market
PRIMARY MARKET:
Companies, in order to meet the financial requirements of its projects raise
capital through issue of securities (shares and debentures) in the primary market. The
Capital Issue Control Act, 1947, controlled capital issues of companies. The controller
of capital issues determined pricing of the issues. The CCI Controls on issue of capital
by the companies have been substituted by the transparent and simplified guidelines
by the Securities and Exchange Board of India under the SEBI Act, 1992. SEBI has
issued elaborate guidelines on matters relating to public issues, rights issues, bonus
issues, issue of debentures, underwriting, private placement, pricing of issues, etc. As
far as the companies Act, 1956 is concerned; capital issued by a company should
comply with the provisions relating to prospectus, allotment, issue of shares at
premium/discount, further issue of capital, etc.
SECONDARY MARKET:
The secondary market is that segment of the capital market where the
outstanding securities (securities already issued) are traded. From the investors point
of view the secondary market imparts liquidity to the long-term securities held by
them by providing an auction market for these securities. The secondary market
operates through the medium of stock exchanges, which regulates the trading
activities in this market, and ensures a measure of safety and fair dealing to the
investors.
The securities that are already outstanding and owned by the investors are usually
bought and sold through the secondary market, which is popularly known as stock
market. In the stock market, the outstanding issues are permitted to trade. In this
market, a stock or bond issue has already been sold to the public, and it is traded
between current and potential owners. The proceeds from a sale in the stock market
do not go to the issuing organization but to the current owner of the security. Once
new issues have been purchased by investors, they change hands in the stock market.
Organized stock exchanges
The Over-The Counter (OTC) market.
The primary middlemen in the stock market are brokers and dealers. The
distinction between them is, the broker acts as a principal in the transaction. Stock
markets are said to reflect the health of countrys economy. On the other hand, major
economic indicators determine stock market movements to a large extent. From a
thorough analysis of the various economic indicators and its implications influenced
by broad money supply, inflation; credit/deposit ratio and fiscal deficit etc. always
exert a certain amount of influence on the stock markets. Because the stock market
involves the trading of securities initially sold in the primary, it is providing liquidity
to the individuals who acquired these securities. The trends in stock market will have
impact on the primary market. The secondary market in India comprises of 23 stock
exchanges on which about 500 companies are listed. A large volume of transactions
of the secondary market are put through the BSE and NSE. Presently, BSE and NSE
put together account for 99% of the total turnover as compared to 1% by the other
stock exchanges.
DEFINITION OF STOCK EXCHANGE:
Under sec.2 (3) of the securities contract (Regulations)Act of 1956 as anybody of
individuals whether incorporated or not, constituted for the purpose of assisting,
regulating or controlling the business of buying, selling or dealing in securities.
DEFINITION OF STOCK EXCHANGE ON THE WEB:
An exchange where security trading is conducted by professional
stockbrokers. Wordnetweb.princeton.edu / perl / webwn
A stock exchange, (formerly a securities exchange) is a corporation or mutual
organization which provides Trading facilities for stock brokers and traders,
to trade stock and other securities.
En.wikipedia.org/wiki/stock exchange
A building and the associated organization that trades stocks in of companies
for money and vice versa
En.wiktionary.org/wiki/stock exchange
An organized market for the buying and selling of stocks and bonds. Country
studies. us/united-states/economy-12.htm
Marketplace where brokers and dealers meet to buy and sell stocks of publicly
traded companies on behalf of investors. Major US stock Exchange include the
New York Stock Exchange (NYSE), the NASD and the American Stock
Exchange. ...
www.edwardjones.com/en_US/resources/knowledge_center/investment
terms/index.html
A market in which securities are bought and sold. Its basic function is to enable
public companies, governments and local authorities to raise capital by selling
securities to investors.
Ec.europa.eu/enterprise/entrepreneurship/financing/glossary.html
An organized marketplace where members gather to trade securities. Members
may act either as agents for customers, or as principals for their own accounts.
www.netxclientdemo.com/invest_glosry_stsz.html
A physical central market for the issuance and trading of common stocks, in
contrast to
theoverthecounermarket,whichisanelectronicoldfraser.lexi.net/publications/gam
ble/glossary.html.
A public trading place for goods, currencies, or securities.
https://www.fim.com/english/mutualfunds/fundacademy/terminology
A market with a trading floor where securities are bought and sold.
Wealth.net.nz/wealth%20glossary.html
Stock exchange have multiple roles in the economy, this may include the following.
Raising capital for businesses
Mobilizing savings for investment
Facilitating company growth
Profit sharing
Corporate governance
Creating investment opportunities for small investors
Government capital raising for development projects
Barometer of the economy
Growth of stock market in India:
The government of India introduced economic reforms in the field of trade,
industry and the commerce so as to bring about integration of the Indian economy
with the global economy. Capital market in India has experienced remarkable
developments in the past year s. the growth of the economy has capitalized the
changes in the capital market along with the regulations of secondary market in India.
In this process, the size of investors has increased rapidly and the Stock exchanges
have also played bigger role.
Secondary market (Stock exchange) is the one in which an investor purchases
asset from another investor, rather than from an issuing corporation. the defining
characteristic of the secondary capital market is that investors trade along themselves
and previously issued securities without involvement of the issuing companies(except
in the case of buy-back). The investors could be intuitions like FIIs, Mutual Funds,
Insurance Companies or Individuals. The trading system differs, albeit marginally,
depending upon investor status. The origin of the stock market in India goes back to
the end of the eighteenth century when long-term negotiable securities were first
issued. However, for all practical purposes, the real beginning occurred in the middle
of the nineteenth century after the enactment of the Companies Act in 1850, which
introduced the feature of limited liability and generated investor interest in corporate
securities. An important early event in the development of the stock market in India
was the formation of the Native Share and Stock Brokers Association at Bombay in
1875, the precursor of the present day Bombay Stock Exchange. This was followed
by the formation of associations/exchanges in Ahmadabad (1894), Calcutta (1908),
and Madras (1937). In addition, a large number of ephemeral exchanges emerge
mainly in buoyant periods to recede in oblivion during depressing times subsequently.
In stock market, the central government introduced a legislation called the securities
Contracts (Regulation) Act, 1956. Under this legislation, it is mandatory on the part of
a stock exchange to seek governmental recognition. As of January 2005 there were 23
stock exchanges recognized by the central government. They are located at
Ahmadabad, Bangalore, Baroda, Bhubaneswar, Calcutta, Chennai, Cochin,
Coimbatore, Delhi, Guwahati, Hyderabad, Indore, Jaipur, Kanpur, Ludhiana,
Mangalore, Mumbai (the National Stock Exchange or NSE), Mumbai (the Bombay
Stock Exchange or BSE), Mumbai (Over the Counter Exchange of India or OTCEI),
STOCK EXCHANGE:
A Stock Exchange is a place that provides facilities to stockbrokers to trade
company stocks and other securities. A stock may be bought or sold only if it is listed
on an exchange. Thus it is the meeting place of the stock buyers and sellers
Bombay Stock Exchange (BSE):
Bombay Stock Exchange is the oldest stock exchange in Asia with a rich
heritage, now spanning three centuries in its 133 years of existence. What is now
popularly known as BSE was established as "The Native Share & Stock Brokers'
Association" in 1875.
BSE is the first stock exchange in the country which obtained permanent
recognition (in 1956) from the Government of India under the Securities Contracts
(Regulation) Act 1956. BSE's pivotal and pre-eminent role in the development of the
Indian capital market is widely recognized. It migrated from the open outcry system
to an online screen-based order driven trading system in 1995.
SENSEX:
SENSEX, first compiled in 1986, was calculated on a "Market Capitalization-
Weighted" methodology of 30 component stocks representing large, well-established
and financially sound companies across key sectors. SENSEX today is widely
reported in both domestic and international markets through print as well as electronic
media. It is scientifically designed and is based on globally accepted construction and
review methodology.
Index Specifications
Base year 1978-79
Base index value 100
Date of launch 01-01-1986
No of scrips 30

SENSEX Calculation Methodology:
SENSEX is calculated using the "Free-float Market Capitalization"
methodology, wherein, the level of index at any point of time reflects the free-float
market value of 30 component stocks relative to a base period.
SENSEX - Scrip Selection Criteria
The general guidelines for selection of constituents in SENSEX are as follows:
1) Listed History: The scrip should have a listing history of at least 3 months at
BSE. Exception may be considered if full market capitalization of a newly
listed company ranks among top 10 in the list of BSE universe
2) Trading Frequency: The scrip should have been traded on each and every
trading day in the last three months at BSE. Exceptions can be made for
extreme reasons like scrip suspension etc.
3) Final Rank: The scrip should figure in the top 100 companies listed by final
rank. The final rank is arrived at by assigning 75% weight age to the rank on
the basis of three-month average full market capitalization.
4) Market Capitalization Weight age: The weight age of each scrip in SENSEX
based on 3 month average free-float market capitalization should be at least
0.5% of the Index.
5) Industry/Sector Representation: Scrip selection would generally take into
account a balanced representation of the listed companies in the universe of
BSE.
6) Track Record: In the opinion of the BSE Index Committee, the company should
have an acceptable track record.

Free float methodology:
Free-float methodology refers to an index construction methodology that takes
into consideration only the free-float market capitalization of a company for the
purpose of index calculation and assigning weight to stocks in the index.
Free-float:
Shareholding of investors that would not, in the normal course come into the
open market for trading are treated as 'Controlling/ Strategic Holdings' and hence not
included in free-float.
New base market capitalization / Old base market capitalization
Bse-100 Index
A broad-based index, the BSE-100 was formerly known as the BSE National
index. BSE-100 was shifted to Free-Float methodology effective from April 5, 2004.
Index Specifications
Base year 1983-84
Base index value 100
Date of launch 03-01-1989
No of scrips 100

BSE-500 index - Scrip Selection Criteria:
1) Trading Frequency: The scrip should have been traded on 75% of the trading days
in last 3 months. Exceptions can be made for extreme reasons like scrip
suspension etc.
2) Industry/Sector Representation: Scrip selection would generally take into account
a balanced representation of the listed companies in the universe of BSE.Sector
Indices.

Index

Base period

Base index
Value

Date of launch
BSE Auto Index 1
st
Feb1999 1000 23
rd
Aug 2004
BSE BANKEX 1
st
Jan 2002 1000 23
rd
June 2003
BSE Capital Good
Index
1
st
Feb 1999 1000 9
th
Aug 1999
BSE Consumer
Durables Index
1
st
Feb 1999 1000 9
th
Aug 1999
BSE FMCG 1
st
Feb 1999 1000 9
th
Aug 1999

BSE TECK Index
2
nd
April
2001
1000 11
th
July 2001
BSE PSU Index 1
st
Feb 1999 1000 4
th
June 2001

Scrip Selection Criteria for BSE Sect oral Indices
1) Eligible Universe: Scrips classified under various sectors that are present
constituents of BSE-500 index would form the eligible universe.
2) Trading Fq: Scrips to have minimum trading fq of 90% in preceding 3 months.
3) Market Capitalization: Scrips with a min of 90% market capitalization coverage
4) Buffers: A buffer of 2% both for inclusion and exclusion in the index is
considered so that movements in and out of the index are minimized.
Index
BSE Healthcare
Index
1
st
Feb 1999 1000 9
th
Aug 1999
BSE IT Index 1
st
Feb 1999 1000 9
th
Aug 1999
BSE Metal Index 1
st
Feb 1999 1000 23
rd
Aug 2004
BSE Oil & Gas
Index
1
st
Feb 1999 1000 23
rd
Aug 2004
BSE Power Index 3
rd
Jan 2005 1000 9
th
Nov 2007
BSE Realty Index 2005 1000 9
th
July 2007
BSE Mid-Cap and BSE Small-Cap Index
BSE-500 Index - represents more than 93% of the listed universe. Companies
with large market capitalization bias the movement of BSE-500 index. This
necessitated construction of a separate indicator to capture the trend in
companies with lower market capitalization.


National Stock Exchange (NSE):
The National Stock Exchange of India Limited has genesis in the report of the
High Powered Study Group on Establishment of New Stock exchanges, which
recommended promotion of a National Stock Exchange by financial institutions (FIs)
to provide access to investors from all across the country on an equal footing.

NSE Group

NSE


NSCCL NCCL
NSETECH



IISL Dot Ex Intl Ltd NSDL
NSE. IT
Important dates at NSE
April 1993 - Recognition as a stock exchange
June 1994 - Wholesale Debt Market segment
November 1994 - Capital Market (Equities) segment
April 1995 - Establishment of NSCCL, the first Clearing Corporation
April 1996 - Launch of S&P CNX Nifty
December 1996 - Launch of CNX Nifty Junior
May 1998 - India Index Services & Products Limited (IISL)October 1999 - Setting up
of NSE.ITAugust 2004 - Launch of NSEs electronic interface for listed companies
August 2008 - Launch of Currency Derivatives
Trade Verification Module
NSE provides investors with a facility to verify trades on the NSE website.
Using this facility, an investor who has received a contract note from a trading
member of the Exchange, can check whether the trade has been executed on the
Exchange. This facility is available on the NSE website for the Capital Market,
Derivatives (F&O) and Retail Debt Market segments.

How does it work?
Trade details are available for verification on the same day (i.e. T itself) after
19:00 hours IST.
The investor needs to input minimum details of the trade viz. client code
(provided by the trading member), security details (symbol and series), order
no,
trade no, trade qty and price (excluding brokerage).


Listing
Listing means admission of securities of an issuer to trading privileges on a
stock exchange through a formal agreement.
Trading
NSE introduced for the first time in India, fully automated screen based
trading. It uses a modern, fully computerized trading system designed to offer
investors across the length and breadth of the country a safe and easy way to invest.
REGULATORY AUTHORITY OF CAPITAL MARKETS:-
Securities And Exchange Board of India - SEBI
The regulatory body for the investment market in India. The purpose of this
board is to maintain stable and efficient markets by creating and enforcing regulations
in the market place.
The basic objectives of the Board were identified as:
To protect the interests of investors in securities.
To promote the development of Securities Market.
Its main functions are providing for :
Registering and regulating the working of stock brokers, sub-brokers, share
transfer agents, bankers to an issue, trustees of trust deeds, registrars to an
issue, merchant bankers, underwriters, portfolio managers, investment
advisers and such other intermediaries who may be associated with securities
markets in any manner.
Stock Market trading history of India:
Indian stock market marks to be one of the oldest stock market in Asia. It
dates back to the close of 18th century when the East India Company used to transact
loan securities. In the 1830s, trading on corporate stocks and shares in Bank and
Cotton presses took place in Bombay.
Market participants:
Many years ago, worldwide, buyers and sellers were individual investors, such
as wealthy businessmen, with long family histories (and emotional ties) to particular
corporations . Over time, markets have become more "institutionalized"; buyers and
sellers are largely institutions (e.g., pension funds, insurance companies, mutual
funds, hedge funds, investor groups, and banks).
Screen Based Trading:
The trading on stock exchanges in India used to take place through open
Outcry without use of information technology for immediate matching or Recording
of trades. This was time consuming and inefficient. This imposed Limits on trading
volumes and efficiency. In order to provide efficiency, Liquidity and transparency.
NEAT:
NSE is the first exchange in the world to use satellite communication technology for
trading. Its trading system, called National Exchange for Automated Trading(NEAT),
is a state of-the-art client server based application













COMPANY PROFILE











COMPANY PROFILE:
Aditya Birla Money limited (formerly Apollo sindhoori capital Investments
Company limited) is a leading player in the broking space with nearly 14years of
domain experience. Incorporated in 1995, the company became a part the company
through Aditya Birla novo., headquartered in Chennai, ABML is listed on the national
stock exchange limited (BSE).it is also registered as a depository participant with both
national securities depository limited (NSDL) and central depository services (India)
limited (CDSL).the company has a strong distribution network of over 230 company-
owned and 550 franchisee branches. a large customer base in excess of two Lakh and
a scalable business model based on a strong technology backbone and a wide product
mix. The company boasts of an immense talent pool and vertical specialists, which
add to its positioning as a leading player in the retail broking space.
E-broking
Investment advisory
Portfolio management services
Commodities trading
ADITYA BIRLS GROUP COMPANIES:
Company Products / services
Grasim
Cement, viscose staple fibre, rayon
grade pulp, ready mix concrete,
chemicals, textiles
Ultra Tech Cement Ltd* Cement, ready mix concrete
Samruddhi Cement Cement
Hindalco Aluminium, copper
Novelis lnc
Aluminums rolled products, cans,
primary metal recycling
Aditya Birla Minerals
limited
Australia copper Mines
Aditya Birla chemicals
(India)limited
Caustic soda
Hindalco Almex
Aerospace limited
Aerospace alloy
Utkal Alumina
international limited
Alumina
Dahej Harbour
infrastructure limited
Handling of captive cargo (copper
Unit) and commercial cargo
Aditya Birla science and
technology company
limited
R&
Tubed coal mines
limited
mining
Mhan coal limited mining
Aditya Birla Nuvo
Branded Garments, Viscose
Filament yarn, carbon black,
agribusiness, insulators, textiles
Birla insurance company
Life insurance
limited
Birla sun life Asset
management company
limited
Asset management
Aditya Birla Finance
Limited
Non broking financial services
Aditya Birla money mart
limited
Distribution and wealth
management
Aditya Birla money
limited
broking
Birla advisory &
broking services limited
General insurance and broking
limited
Aditya Birla capital
advisors
pvt.limited(ABCAP)
Private equity investment, advisory,
and management services
Idea cellular limitad Cellular services
Aditya Birla Minacs
world wide limited
IT-ITeS
Madura garments life
style retail company
limited
Branded Apparel Retail
Peter England fashion
Apparel Retail
and retail Limited
Essel Mining& industries
Ltd
Iron ore mining, noble ferro alloys
and wind power generation
Aditya Birla retail limited
FMCG products, fruits, vegetables,
groceries.
ABML Bookings tryst with excellence in customer relations began in 1995.
Today, ABML has emerged as one of the most respected stock-Broking and wealth
management companies in India. With its unique retail focused stock trading business
model, ABML is committed to providing real value for money to all its clients.
The ABML is a member of the Bombay Stock Exchange(BSE), national Stock
Exchange (NSE) and the two leading commodity Exchanges in the country: NCDEX
& MCX. ABML is also registered as a depositopry Participant with CDSL.
ADITYA BIRLA MONEYS BUSINESS:

Equity Trading
Commodities
portfolio Management
Services
Mutual Funds Life
Insurance
Personal Loans
IPO
Depository Services

ADITYA BIRLA MONEYS PRESENCE:
Nation-wide network of
21
regional Hubs
Presence in 124 cities
Over 550 sub-Brokers &
Business Associates

Aditya Birla Moneys Group:




Aditya Birla Moneys MOTTO:





Aditya Birla Money Broking
Ltd.
Aditya Birla Money Capital &
Debt Market Ltd
Aditya Birla Money
commodities

To have complete Harmony
between quality-in-process and continuous
improvement to deliver exceptional service
that will delight our Customers and Clients
Aditya Birla Moneys Business Philosophy:

Aditya Birla Moneys Quality Assurance policy:


The Aditya Birla Money limited (ABML) group of companies was brought
to life by Mr. Kanvar Vivek he ventured into stock trading with an attentions
to raise capital for his own independent enterprise. However, he recognized
the opportunity offered by the stock market to service individual investors.
Thus Indias retail focusing stock-broking house was established in 1995.
Under his leader ship, Aditya Birla money (ABML) became the first Broking
house to embrace new technology for faster, more effective and affordable
services to retail investors
Mr.Vivek is valued for his understanding of the economy and the stock
market. The print and electronic media often seek his views on the market trend as
well as investment 7strategies.
VISION:

Ethical practices & transparency
in all our dealings
Customer interest above our own
Always deliver what we Promise

We are committed to
providing world-class products and
services which Exceed the
expectations of our customers,
achieved by team work and process of
continuous improvement.
To provide best value for money to investors through innovate products,
trading/investments strategies, state of the art technology and personalized service
Indian traders and investors have benefited from commodity derivatives a new
avenue for investors to create wealth. Today, commodities have evolved as the next
best option for diversifying the portfolio after stocks and bonds.
Based on the fundamentals of demand and supply, commodities form a
separate asset class offering investors, arbitrageurs and speculators immense potential.
Aditya Birla money (ABML) attempts to make the investors aware of this market
before taking a step forward.
The Aditya Birla money-advantage:
Aditya Birla money (ABML) provides user-friendly online platforms for commodity
trading in the leading commodity exchanges. Now hedging your future is easier than
before.
Three different online products tailored for traders &investors.
Single screen customized market-watch for MCX/NCDEX with BSE/NSE.
Intra-day trading calls.
Streaming quotes and real time rates.
Highly skilled analysts with professional industry experience.
An array of daily, weekly and special research reports.
Active relationship management desk.
Seminars, workshops and investment camps for investors.
Research on 25 agro commodities, precious and base metals.
ONLINE TRADING: Four different online products tailored for traders and
investors. Single screen, customized market-watch for BSE and NSE.
streaming quotes and real time rates. Intra-day trading calls.
QUALITY RESEARCH:
wide range of daily, weekly and special research reports. Research team
comprising of 12 sector special analysts and a research head. Highly skilled
analysts with professional industry experiences.
ADVICE & REPORTS: Real time market information (live
rates).advisory services to the clients (both online and offline).publishing daily
reports pertinent to respective market situation.
SUPPORT: 24x7 web enabled back office.100% efficiency and transparency
with regards to the settlements of funds. live chat support system.
SCALE:
800 Branches.
40 Regional offices.
80 Towns.

TECHNOLOGY:
Robust platform
Processing 130,000 transactions every day.
Scalable at low cost.
HUMAN CAPITAL:
1800 employees and growing.
Low turnover rate compared to industry standards.
Performances driven work ethics.
BRAND:
One of the best visible brands since inception.
Among the top 3 retail brokers in India.
ADITYA BIRLA MONEY (ABML) BROKING:
CEO Mr.Kanwar vivek
Regional head Mr.Girish Venkat
Branch manager Mr. R.SHAKER
ADITYA BIRLA MONEY (ABML) BROKING PLAN IPO FOR
EXPANSION:
Been getting responses for partnerships Aditya Birla money (ABML) broking
is a retail broking. Is looking at various option including initial public offering for
raising capital to fund its expansion plans. the company has but nothing has
materialized as yet. Aditya Birla Money (ABML) broking is looking at increased.
Number of branches across India. Aditya Birla Money (ABML) broking. A
stock-broking outlet belonging to the Mumbai-based financial services. Will provide
an exit route to three of the foreign venture capital funds which currently own around
49% of its equity holding.
BIRLA MONEY BACK OFFICE
Aditya Birla Money (ABML) Capital & debt market ltd
Aditya Birla money (ABML) CAPITAL & Debt market Limited.
Aditya Birla money (ABML) CAPITAL & Debt market Ltd-Future and
Options
Aditya Birla money Broking Limited
Aditya Birla money Securities limited future- and options
Aditya Birla money commodities broking (p) Ltd NCDX
Aditya Birla money commodities broking (p) Ltd MCX
E-contracts: Equity commodities New E-singer
Risk Management
Depository Participant depository-clients ;depository (POA) Report
COMPETITORS:
These are the competitors of Angle Broking
Franklin Templeton
IL & FS INVESTMENT
Kodak Securities
ICICI web Trade
UTI Securities
Motilal and Iwarlal Securities
Curvy Brokerage Ltd
Indian Bulls
Anagram
5paisa.com
















THEORETICAL CONCEPTS





ONLINE TRADING
Change is the law of nature. There were times when man was a wanderer or a
normal. He himself had to go place to place in search of food, water and now
everything is available at your doorstep just at the click of the mouse. The growth of
information technology has affected almost all sectors of life. Internet has enabled us
to get every information at our doorstep. When Internet has affected all sectors he
could stock markets the most important player of the economy, has remained far
behind? Like all other sectors Internet has set its feet in the stock markets also.
Internet trading commissions are clearly posted on the websites of the various
services, and are typically a fixed rate charge, depending upon the type of security
being traded and the size of trade. In theory, therefore, an Interest investor always
knows what commission he is being charged on each trade. Internet investors can take
as much time as they would like to take prior to placing a trade order. Similarly the
online investor likely does not have to worry that his broker is making unauthorized
trades. Since there is no individual broker making a commission, the only person who
is authorized to trace in a the account is the actual investor. Furthermore, the internet
investor can never become a victim of excessive trading (where for the broker) since
the investor maintains total control over the number of transactions which take place
in the account.
All of these positive features of internet trading may lead the unwary investor to
believe that Internet trading is a way to take control of their finances and save more
money in the process. Unfortunately, this is not always the case. The advantages of
Internet stock trading have also its weaknesses and these weaknesses present
significant drawbacks for the average investor.
First and foremost, the average investor is not an expert in the financial markets.
There is a danger for allowing the autonomy of online trading to hull you into the
belief that you are an expert investor. An online investor sitting at home at a personal
computer also foregoes proper investment advice and financial planning, perhaps
among the most valuable services provided by traditional brokers.
There are, of course, additional risks relative to performing transactions over the
Internet especially on a shared computer. Those people whom investors have provided
their account number and password can freely trade that account while the investor
will have little, if any, resource against the brokerage firm for the breach of security.
When was online trading introduced in INDIA?
Online trading started in India in February 2000 when a couple of brokers started
offering an online trading platform for their customers.
ONLINE TRADING BY NSE & BSE
The central computer located at the Exchange is connected to the workstations of the
Brokers through satellite using Very Small Aperture Terminals (VSATs). Orders
placed at the Brokers' workstations reach the central computer and are matched by the
computer based on price and time priority.
Both the exchanges have switched over from the open outcry trading system to a fully
automated computerized mode of trading known as BOLT (BSE On Line Trading)
and NEAT (National Exchange Automated Trading) System. It facilitates more
efficient processing, automatic order matching, faster execution of trades and
transparency. The scrips traded on the BSE have been classified into 'A', 'B1', 'B2',
'C', 'F' and 'Z' groups. The 'A' group shares represent those, which are in the carry
forward system (Badla). The 'F' group represents the debt market (fixed income
securities) segment. The 'Z' group scrips are the blacklisted companies. The 'C' group
covers the odd lot securities in 'A', 'B1' & 'B2' groups and Rights renunciations. key
regulator governing Stock Exchanges, Brokers, Depositories, Depository participants,
Mutual Funds, FIIs and other participants in Indian secondary and primary market is
the Securities and Exchange Board of India (SEBI) Ltd.
DIFFERENCE BETWEEN ONLINE AND OFFLINE
TRADING
Nevertheless, with all the convenience of online trading there are still investors who
prefer the old fashion way of offline trading. Offline trading has lost some popularity
but it is still the main form of investing. Offline trading offers many benefits as well.
1. The one benefit that an investor appreciates the most is that they are not alone when
making investment decisions.
2. There are experienced and professional brokerage companies that handle their
investments for them.
3. Investors are not faced with the challenge of making these vital investment
decisions; especially, if they do not have the experience necessary to make the
appropriate investments.
4. Also, there is someone there to answer any questions that may cause concerns. Not
to mention, with offline trading mistakes are less likely to take place. No one wants to
throw their money away or stand by and watch someone else throw their money
away. It may be wise to hire a professional to assist you in making the correct
investment decisions if you feel you lack the knowledge necessary.
Points of difference between online trading and ofline trading are as follows:
1. Online trading is very expensive as compare to manual trading or offline trading.
2. Online trading consumes less time as compare to manual trading.
3. Online trading has very helpful to finding the records easily but offline trading
takes more time to finding the records.
4. In the help of online trading, there is no chance of any errors while doing the
trading. in offline trading there are some errors exist like barriers of communication .
5. With the help of online trading, we know the international market rate of
share very easily.
Internet Based Trading through Order Routing Systems
Internet based trading on conventional exchanges, uses the Internet as a medium for
communicating client orders to the exchange, through broker web sites. Brokers web
sites may serve a variety of functions. These may include;
Allowing the clients to directly trade through investors;
Advertise the broker dealers services to potential investors;
Offer market information and investment tools similar to those offered by
information vendor or SRO web sites;
Offer real-time or delayed quote information, continuously update quotes
while the user visits other sites, or allow investors to create a personal stock ticker;
Provide market summaries and commentaries, analyst reports and trading
strategies and market data on currencies, mutual funds, options, market indices and
news; and
Offer investors access to portfolio management tools and analytic programs;
Information on commission and fees; and
Account information and research reports.

In an Order Routing system, a broker offering Internet trading facility provides an
electronic template for the customer to enter the name of the security, whatever it is to
be bought or sold, the quantity and whatever the order is a market or limit order. Once
the brokers system receives this information.
Use of Internet as Alternative Trading Systems (Provision for price
discovery and matching outside conventional exchanges)
In foreign jurisdiction, Alternative trading systems have been developing outside
conventional securities markets, which provide investors with additional proprietary
electronic trading facilities for securities that are traded principally on securities
exchanges, or other organized markets. They have price discovery functions,
matching systems and crossing systems. The systems that are currently in use in
outside jurisdictions are closed systems and are not accessible to the general public
through the Internet. The securities markets regulators abroad the maintained flexible
and open policies designed to encourage innovationthe secondary securities markets.
As a result, a number of market participants, usually broker-dealers, have developed
computerized alternative trading systems by which the system centralize, display,
match, cross or otherwise execute trading interest.
Use of Internet for making Initial Public Offerings
Issues of securities of using the Internet to communicate directly with their
shareholders, potential investors and analysts by disseminating corporate information.
In foreign jurisdiction, they are also using the Internet to communicate to the public
for the following:
Public offerings;
Private offerings; and
Disclosure and communication

Issuers are using the Internet to market themselves to potential investors. The Internet
is also being used for fulfilling necessary disclosure requirements, for disseminating
the prospects in electronics form and even for receiving share applications in public
issues electronically. In India, SEBI has taken initiative in permitting use of the
network of stock exchange for collection of investor applications in public offerings
by the issuer companies.
Investment Advisory Services
Brokers as well as other service providers such as investment firms, research outfits
etc. are using the Internet for marketing and advertising purposes, for presenting
information on portfolio analysis and market information, and for communicating
with and receiving orders from potential investors. The services offered by the service
providers to the investors are generally the following:
Advertising
Providing investment information and investment advice;
Underwriting
Communicating with the investors;
Customer orders; and
Record keeping

Operational and System Requirements:
Operational Integrity:
The stock Exchange must ensure that the system used by the broker has provision for
security, reliability and confidentiality of data through use of encryption technology.
This stock exchange must also ensure that records encryption technology. The stock
Exchange must also ensure the records maintained in electronic from by the broker
are not susceptible to manipulation.
System Capacity :-
The stock Exchange must ensure that the brokers maintain adequate backup systems
and data storage capacity. The stock Exchange must also ensure that the workers have
adequate system capacity for handling data transfer, and arranged for alternative
means of communications in case of Internet link failure.
Qualified Personnel: -
The stock Exchange must lay down the minimum qualification fro personnel to ensure
that the broker has suitably qualified and adequate personnel to handle
communication including instructions as well as other back office work which is
likely to increase because of higher volumes.
Written Procedures: -
Stock Exchange must develop uniform written procedures to handle contingency
situations and for review of incoming and outgoing electronic correspondence.
Signature Verification/ Authentication:-
It is desirable that participants use authentication technologies. For this
purpose is should be mandatory for participants to use certification
agencies as and when notified by Government/SEBI. They should also
clearly specify when manual signatures would be required.
Client Broker Relationship
Know Your Client:-
The stock Exchange must ensure that brokers have sufficient, verifiable information
about clients, which would facilitate risk evaluation of clients.
Broker- Client Agreement:-
Brokers must enter into an agreement with clients spelling out all obligations and
rights. This agreement should also inter alia, the minimum service standards to be
maintained by the broker for such service specified by SEBI/Exchange for the internet
based trading from time to time. Exchange will prepare a model agreement for this
purpose. The broker agreement with clients should not have any clause that is less
stringent/contrary to the conditions stipulated is the model agreement.
Investor Information: -
The broker web site providing the internet based trading facility should
contain information meant for investor protection such as rules and
regulations affecting client broker relationship arbitration rules,
investor protection rules etc. The broker web site providing the Internet
based trading facility should also provide and display prominently,
hyper link to the web site/page on the web site of the relevant stock
exchange (s) displaying rules/ regulations/ circulars.
Ticker/quote/order book displayed on the web-site of the broker should
display the time stamp as well as source of such information against
the given information.
Order/Trade Confirmation:-
Order/Trade confirmation should also be sent to the investor through email at clients
discretion at the time specified by the client in addition to the other made of display of
such confirmation of real time basis on the broker web site. The investor should be
allowed to specify the time interval on the web site itself within which he would like
to receive this information through email. Facility for reconfirmation of orders which
are larger than that specified by the member's risk management system should be
provided on the internet based system.
Handling Complaints by Investors:-
Exchanges should monitor complaints from investors regarding service provided by
brokers to ensure a minimum level of service. Exchange should have separate cell
specifically to handle Internet trading related complaints. It is desirable that
exchanges should also have facility for on-line registration of complaints on their web
site.
Risk Management: -
Exchanges must ensure that brokers have a system-based control on the trading limits
of clients, and exposures taken by clients. Brokers must set predefined limits on the
exposure and turnover of each client. The broker systems should be capable of
assessing the risk of the client as soon as the order comes in. The client should be
informed of acceptance/rejection of the order within a reasonable period. In case
system based control rejects an order because of client having exceeded limits etc.,
the broker system may have a review and release facility to allow the order to pass
through.
Contract Notes: -
Contract notes must be issued to clients as per existing regulations,
within 24 hours of the trade execution.
Cross Trades:-
As a matter of abundant precaution, the committee seeks to reiterate that as III the
case of existing system, brokers using Internet based systems for routing client orders
will also not be allowed to cross trades of their clients with each other. All orders
must be offered to the market for matching.
It is emphasized that in addition to the requirements mentioned above, all existing
obligations of the broker as per current regulation will continue without changes.
Exchanges may also like to specify more stringent standards as they may deem fit for
allowing Internet based trading facilities to their brokers.
Enforcement: A separate working group has been set to look into the surveillance and
enforcement related issues arising due to Internet based securities trading. However,
general anti-fraud provisions (SEBI Fraudulent and Unfair Trade Practices
Regulations, 1995) apply to all transactions involving securities or financial services,
regardless of the medium. would apply to all transactions involving securities or
financial services, regardless of the medium.
FEATURES OF ONLINE TRADING: -
The Online Trading is having many features which make it most suitable for the
investors to go for. Some of the features are as follows.
1. Freedom of information
The Internet can provide a new sense of control over your financial future. The
amount of investment information available online is truly astounding. It's one of the
best aspects of being a wired investor. For the first time in history, any individual with
an Internet connection can:
Know the price of any stock at any time
Review the price history of any stock in chart format
Follow market events in-depth
Receive a wealth of free commentary and analysis about stock markets and the
global economy
Conduct extensive financial research on any company
Talk with other investors around the world
At Invest smart you can get real-time stock quotes, daily roundups of the stock
market, expert commentary, and a deep community of fellow investors.
2.Conrol of your money
One of the great appeals of using an Invest smart online account is the fact that the
account belongs to you, and is under your direct control. When you want to buy or
sell stock, you no longer need to call your broker on the phone; hope that he is in the
office to place your order; possibly argue with the broker about the order; and hope
that the transaction is executed instantly.
3. Access to the market
At the most basic level, an online trading account with Invest smart gives you
more agility in buying and selling stocks. This is through sophisticated information
streams, dedicated trading platforms and sophisticated tools for accessing the markets.
4. Ensures the best price for investors
We at Invest smart specialize in the technique that offers the best price for the buy and
sell orders of the investors and traders. Also due to the high level of transparency with
regard to display of information relating to the specific stocks and company profiles,
you will be able to get the best quote for your orders.
5. Offers greater transparency
Online trading offers you greater transparency by providing you with an audit trail.
This involves a complete integrated electronic chain starting from order placement, to
clearing and settlement and finally ending with a credit into your depository account.
All these stages are subject to inspection, thus bringing in transparency into the
system.
6. Enables hassle free trading
Online trading integrates your bank account, your trading account and your demat
accounts, which leads to easy and paperless trading for you.
7. Allow instant trade execution
You as an Invest smart online customer will be able to execute the entire trading
transaction, right from logging on to our site, to the execution and settlement of your
bank account, in a very short period of time.
8. Provides a level playing field
Trading on the net, gives even the smallest retail investor access to information
that earlier was available only to the big traders. This provides a level playing field for
all investors in the securities market.
9. Reduces the settlement risk
This method of trading reduces the settlement risk for the investor, as in this case
all short sell orders are squared off at the specified cut-off time and not allowed to be
carried forward.
In the case of a demat account your demat account is checked by us before
executing your sell transaction. This reduces the settlement risk for the buyer, who is
assured of the delivery of the securities and for you as a seller of the securities.
10. Live financial news & Analysis
As a client of Invest smart online, you are given free access to streaming news to give
you the latest financial information as it occurs.

11. Onlilne help desk
You can contact the Tele Trading Executives from the Tele Trading team
during and after market hours. Any questions you might have will be addressed
quickly and your trading ideas and strategies can be discussed with them.


PROBLEMS OF ONLINE BROKING
problems of online trading are as follows:
1.) "Server not found":
This may appear on ones screens when he is desperately trying to get out of an
unprofitable position. Some of the online sites are providing a telephone number for
use in case their sites are overloaded or their server down.
2.) Connectivity of the Broker with NSE:
Recently ICICI Direct had a connectivity problem with the NSE for two and halfhours
during trading hours. This problem is rare but be alive to its possibility.
3.) Cyber attack:
In the event of a malicious attack on the systems of ones broker he is protected only
if the company is taking proper precautions against such attacks and if proper backup
is regularly been taken. He may like to choose a brokerage that has a stated security
policy and contingency plan in place.

4.) Non-availability of a seamless interface:
As a client one will access the NSE through a server of the online brokerage and this
may involve queuing delays. If a number of client access the server the server takes its
own time sending the orders to the NSE server. He must check out the seamlessness
of this interface before selecting an online brokerage. The faster the orders are
processed the more seamless is the interface.

5.) Non- availability of personalized advice:
If one like to ask his broker "Aaj kya achcha lag raha hai" he may not be able to do so.
If he want advice on a particular stock in his portfolio he may not even be able to get
that.

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

PROCESS OF ONLINE TRADING:-
An investor interesting in trading through Internet shall have to, firstly register
himself with an Internet brokerage firm. Some formalities such as filling the account
opening form of the e-broker, copies of identity proof, copy of residence proof are
made to register himself with the e-trader. Secondly, the investor would be required to
open a bank account with a scheduled bank and sufficient balance should be kept in
the account. Thirdly he would be required to open account with a depository
participant because only dematerialized shares can be traded on Internet.
So,
The client places order via the net by logging on to his

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

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

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

The exchange receives money and completes the settlement.
The client is intimated about the settlement either through the demat or via
email.
So, generally following steps are followed while doing the trading through
the Internet:


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




REQUIREMENTS FOR ONLINE TRADING:
Login
Buy transcation Sell transcation
The system will check buying
limits
The system will check your
dp account quantity
Orders accepted Rejected orders would be
communicated along with reasons
orders accepted
contract note would
be sent to by mail
or hand delivery
flashed on your
screen immediately
on execution
conformationcoul
d be send to your
e-mail and mobile
you may edit your
pending order
you may delete your
pending order
your order is transmitted to exchange for execution
pending sell orders
would be displayed
on your screen
pending buy orders
would be displayed
on your screen
on execution
of your orders
you may edit your
pending order
you may delete
your pending order
For investors:
1. Installation of a computer with required specification
2. Installation of a modem
3. Telephone connection
4. Registration for on-line trading with broker
5. A bank account
6. Depository account
7. Compliance with SEBI guidelines for net trading
The following should be produced to get a demat account and
online trading account:
As identity proof:
PAN card(mandatory)
For address proof any one of the following:
Voter ID card
Driving license
Ration card
Bank pass book
Telephone bill

Other requirements, which are necessary
First page of the bank pass book and last 6 months statement.
Bank managers signature along with banks seal, manager registration code
on photograph.
For stock brokers:
1. Permission from stock exchange for net trading
2. Net worth of Rs. 50 lakhs
3. Adequate back-up system
4. Secured and reliable software system
5. Adequate, experienced and trained staff
6. Communication of order (trade confirmation to investor by e-mail)
7. Use of authentication technologies
8. Issue of contract notes within 24 hours of the trade execution
9. Setting up a website.
MARKET WATCH WINDOWS:-
Blue color indicate share value increase
Red color indicates share value decrease.





(BUY Order Form

Sell Order Form










TRADING AND SETTLEMENT:-
Introduction of automated trading systems has enabled
market participants to login orders, execute deals and receive online market,
information. The competition from NSE has forced the regional stock exchanges
including BSE to switch over to screen based trading. The NSE trading system is
order driven. BSE Online Trading (BOLT) is a mixture of both quote driven and
order driven system as the system permits both jobbing and direct matching of orders.
Trading on equities segment takes place on all days of week
(except Saturdays, Sundays & holidays declared by Exchange in advance). The
normal market timings of the equities segment on BSE & NSE are:
Normal Market open: 09:00 hours.
Normal Market Close: 15:30 hours.

SETTLEMENT PROCESS
Clearing of transaction in the form of shares and cash is called settlement. Clearing
and Settlement in NSE is undertaken by the clearing corporation NSCCL on T+2
rolling settlement system. All the trading members should register with NSCCL as
clearing members and it is mandate to open clearing bank account and pool account
(demat account) for settlement purpose.
ROLLING SETTLEMENT:-
Under this rolling settlement the trading is on T+2, basis i.e.
if Monday is trading day then Wednesday is the paying day in case on non-delivery
the securities will go for action.
DETAILS OF PROCEDURES:-
DELIVEY IN
Sale position of all securities to be deposited before pay=in day in pool account of
the members. At 10.30am on pay=in day the securities are transferred to clearing
corporation.
DELIVERY OUT:-
The buyer of shares who made payment will get the delivery of shares from the
clearing house to the pool account of the member.
PAY-IN:-
The member who is in paying position shall pay for value of share within
the trading settlement period (T+2).
PAY-OUT:-
Payments for sales will bedeposited to clearing bank account of the
member on pay=out date.
5.5 THE MECHANICS OF ONLINE TRADING:-
Placing of the order by the client, order can be placed as limit order, best Market
price or
open order.
Entry in order book by the broker.
Execution of order.
Preparation of contract note.
Entry in settlement registrar, client registers. Actual delivery of shares by Brokers
or clients.
Preparation of bill or order delivery note.
Entry in client ledger, scrip ledger.
Payments





ANALYSIS









DATA ANALYSIS AND INTERPRETATION
RESPONDENTS DURATION WITH ONLINE TRADING
Table
S. no. Year No. of
respondents
1 1 year 45
2 2 year 25
3 3 year 20
4 4 year 10
Total 100

INTERPRETATION
No. of respondents
0
5
10
15
20
25
30
35
40
45
50
1 year 2 year 3 year 4 year
1 2 3 4
1 1 year
2 2 year
3 3 year
4 4 year

According to this survey we find that 45% people says that we are investing the
money online from one year and 25% people says that we are investing the money
online from 2 years and 20% to 10% people says that we are investing money online
from 3 to 4 year. so we can say that now online trading is very popular in the modern
market.
RESPONDENTS EXPERIENCE WISE DISTRIBUTION
Table
S. no. Category No. of
respondents
1 very easy to
operate
60
2 very difficult to
operate
15
3 Not secure 10
4 Any other 15
Total 100
INTERPPRETATION
No. of respondents
0
10
20
30
40
50
60
70
very easy to
operate
very difficult to
operate
Not secure Any other
1 2 3 4
1 very easy to operate
2 very difficult to operate
3 Not secure
4 Any other

According to this survey we find that 60% of people find very easy to operate and
15% people find difficult to operate and 10% and 15% people find secure and any
other. so we can say that
Online trading is very simple to operate and easy to under.

RESPONDENTS INVESTMENT WISE DISTRIBUTION

Table
S. no. Category No o. of respondents
1 UPTO 5000 35
2 10000-15000 30
3 15000-20000 20
4 ABOVE 20000 15

INTERPPRETATION
No o. of respondents
0
5
10
15
20
25
30
35
40
UPTO 5000 10000-15000 15000-20000 ABOVE 20000
1 2 3 4
1 UPTO 5000
2 10000-15000
3 15000-20000
4 ABOVE 20000

According to this survey we find that 35% of people invest money normally
upto5000 and 28% of people invest money 10000 to 15000 and 23% and 14% of
people invest money between 15000 to 20000 and any other. so we can say that the
people are not invest more money in the share market because is a great risk involved
while doing the trading.

RESPONDENT FREQUENT INVESTMENT IN SHARES
Table
S. no. Category No. of respondents
1 Daily 10
2 Weekly 40
3 Monthly 30
4 More than one month 20
Total 100

No. of respondents
0
10
20
30
40
50
Daily Weekly Monthly More than one
month
1 2 3 4
1 Daily
2 Weekly
3 Monthly
4 More than one month

INTERPRETATION
According to this survey we find that 10% of people do trade daily and 40% of
people do trade weekly and 32% and 18% people do trade month and more than
month. so we can say that the people are generally invest in stock market weekly
basis.

RESPONDENTS ACCORDING TRADING
PREFERENCES
Table
S. no. Category No. of respondent
1 ONLINE TRADING 50
2 OFFLINE TRADING 30
BOTH 20
TOTAL 100

0
10
20
30
40
50
60
Cate gory ONLINE TRADING OFFLINE TRADING BOTH
S. no. 1 2
Series2
Series1

INTERPRETATION
According to this survey we find that 20% people prefer online trading and 32%
people offline trading rest of 48% people prefers both. so we can say that mostly
people awareness about the online trading because of this reason the mostly people
are optimizing offline trading. .

RESPONDENTS ACCORDING TO SELLALMENT OF
INVESTMENT PSYCHOLOGY
Table
No. of respondents
0
10
20
30
40
50
60
70
80
YES NO
1 2
1 YES
2 NO
S. no. Category No. of respondents
1 YES 70
2 NO 30
TOTAL 100




RESPONDENTS WHO THINKS ONLINE TRADING IS EASY
AND FAST WAY OF TRADING
S. no. Category No. of
1 Strongly agree 17
2 Agree 34
3 Cant say 8
4 Disagree 20
5 Strongly disagree 21
TOTAL 100
No. of
0
5
10
15
20
25
30
35
40
Strongly agree Agree Cant say Disagree Stongly
disagree
1 2 3 4 5
1 Strongly agree
2 Agree
3 Cant say
4 Disagree
5 Stongly disagree

ANALYSIS OF CUSTOMERS INCOME LEVEL AND THEIR
INVESTING TIME GAP ATTRIBUTES USING ANOVA TABLE

Income
Duration
Below
100000
100000-
200000
200000-
300000
300000-
400000
Daily 1 12 11 1
Weekly 10 30 12 23
Monthly 5 20 8 7
More than one month 2 6 1 1

0
2
4
6
8
10
Duration Weekly More
than one
month
Below 100000
Duration
Daily
Weekly
Monthly
More than one month

X1 (X1)2 X2 (X2)2 X3 (X3)2 X4 (X4)2

1 1 12 144 11 121 1 1
10 100 30 900 12 144 23 529
5 25 20 400 8 64 7 49
2 4 6 36 1 1 1 1
X=18 X=13
0
X2=68 X=1480 X3=3
2
X=33
0
X4=3
2
X=58
0
Here, N = Total no. of items
N = 16
Total sum of all the items = X1+X2+X3+X4
= 18+68+32+32
T = 150
Correction factor = T 2/ N
= (150) 2/16
= 1406.25
Total sum of square = (X12+X22+X32+X42)-C.F
= (130+1480+330+580)-1406.25
= 2520-1406.25
= 1113.75
Sum of square between income levels of the customers
= (X12/N+X22/N+X32/N+X42/N)-C.F
= 182/4+682/4+322/4+322/4-1406.25= 81+1156+256+256-1406.25
= 1749-1406.25
= 342.75
No. of square within income of the customer
= (Total sum of square)-(Sum of the square between interpersonal relationships)
= 1113.75-342.75
= 771
Analysis of variance
Sources of variance
Sum of squares Degree of
freedom
Variance
BW income level 342.75 4-1=3 342.75/3=114.2
5
Within income level 771 16-4=12 771/12=64.25
From this table,
F = Variance between interpersonal relationships/
Variance within interpersonal relationships
114.25/64.25
Calculated value = 1.77
Tabulated value F for 3/12 degree of freedom is 5% level significant is 3.49
INFERENCE:
The calculated value is 1.77 of F is less than the table value 3.49, hence we accept the
null hypothesis Ho at 5% level of significant and conclude that there is no relationship
between income of the customer and the time taken to invest the shares.
FINDINGS :-
1. We can say that now online trading is very popular in the Indian market.
2. We can say that online trading is very simple to operate and easy to
understand
3. We can say that the people dont invest more money in the share market
because there is a great risk involved while doing the trading.
4. People are generally investing in stock market in weekly basis.
5. Mostly people are aware about the on line trading and because of this
reason the mostly people are optimizing offline trading.
6. We find that 30% people says yes and 70% people says no. so we can find
that on line trading is not accepted by the Indian people because they dont
have much experience towards online trading.
7. In India people are lacking knowledge about the Indian derivatives market
or share market.
8. Generally people are very easily gaining knowledge through T.V.
9. To invest in the stock market minimum 100000 or more than this should be the annual
income level of the people. In India the per capita income in also increasing so we can say
that there is a good opportunity for the online trading market.
10. The stock brokerage houses will have to do a good business with the help of Online
trading system with few value addition services.
11. So the investor for equity is high which is again showing the n number of opportunity for
online trading
12. From the analysis we can have idea that the main objective of the investor to earn the
money through trading in stock market77% of the respondent achieve their objective with the
help of investment in theequity market, because most of the investment take place in the form
of equity (explanation of 4th ans. ) So we can say that there is a huge potential in the market
for the trading in the stock market .
13. The people who is having computer that is 78% can also go for online trading which can
be a large number of people who will go for online trading. They dont need to do an
additional investment for computer to go for online trading.
14. Satisfaction about the process, by which they will be going to do a trading that is online
trading, should be there in the mind of the customer. If they believe that there is no risk over
the money which they are going to invest in the market with the help of online trading, there
will be a perception to go for online trading at least one time .
15. There is a difference between the people who believe and who dont believe is not
very big that is only 10% , the reason of this problem can be if a person is doing its
investment on its own he or she think of the problem of being mistaken in the
transaction. So there is a need of proper training to do trading online.
SUGGESTIONS
1. Instant online access: You can gain instant access to your account, the value of
your portfolio updates immediately before your eyes.
2. Enter online trades at anytime: You can enter online trades at anytime and from
anywhere. This is very convenient if you live in a different time zone than the country
you are trading in. Not to mention, it is especially fit for investors with busy
schedules.
4. With online trading you are in charge: You are in control of your investments. No
sales pitches and no hassle. You decide where to invest your money.













CONCLUSION










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











BIBLIOGRAPHY
BOOKS
Dr.K.Natarajan, E.Gordon Financial Markets & Services Himalaya
Publications
MY.Khan, Indian Financial Tata McGraw Hill publishing company ltd.,
System
N.Sankara Narayana Depository System of India (Nov 19, 1997)

C. R. Kothri _ Research Methodology
MAGAZINES
Business World
INTERNET SITES
www.nseindia.com

www.bseindia.com





QUESTIONNAIRE
1. For how long you have been trading with on line-trading?
(a) 1 year (b) 2 year
(c) 3 year (d) 4 year
2. How will you describe your experience with on-line trading till date?
(a) Very easy to operate
(b) Very difficult to operate
(c) Not secure
(d) Any other

3. What amount of money you are invested normally?
(a) UPTO 5000 (b) 10000 to 15000
(c) 15000 to 20000 (d) ABOVE 20000
4. How often do you trade?
(a) Daily (b) Weekly
(c) Monthly (d) More than one month
5. In which trading you will prefer?
(a) Online trading (b) offline trading
(c) Both
6. According to you online trading settled in Indian investor psyche
(a) Yes (b) No
7. What shortcomings do you feel in Indian On-line Trading?
(a) Lack of awareness the investors about on-line trading
(b) Shortage of domestic technical expertise
(c) Shortage Of Infra structure
(d) If any other
8. Which media would you prefer the most for investor?
(a) T.V (b) Newspaper
(c) Magazines (d) Journals
9. What is your annual income?
(a) Below 100000 (b) 1, 00,000 2, 00,000
(c) 2, 00,000 3, 00,000 (d) 3, 00,000 4, 00,000
10. What percentage of your monthly household income could be available for
investment?
(a) Less than 5% (b) 5% to 10%
(c) 10% to 15% (d) 15% to 20%
11. Where do you often invest your money?
(a) Equity (b) Mutual fund
(c) Insurance (d) Term deposits
(e) Others

12. What is the primary objective of your investment?
(a) Capital appreciation (b) Source of income
(c) Retirement planning (d) Wealth preservation
(e) Education funding /others
13. Do you owe a Computer?
(a) Yes
(b) No
14. Online trading is a secure way of trading
(a) Strongly agree (b) Agree
(c) Cant say (d) Disagree
(e) Strongly Disagree
15. Online trading is easy and fast way of trading?
(a) Strongly agree (b) Agree
(c) Cant say (d) Disagree
(e) Strongly Disagree
16. Introduction of online trading helped to attract the new Investors thus
increasing the trading volumes at Stock Market?
(a) Strongly agree (b) Agree
(c) Cant say (d) Disagree
(e) Strongly Disagree
17. What is your opinion about online trading system?
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