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INTRODUCTION
Online trading refers to buying and selling securities via the Internet or other
electronic means such a wireless access, touch-tone telephones, and other new
technologies. Technology is revolutionizing every field of human endeavor and activity.
The rapid growth in number, volume and value of securities in the Indian
capital market expose the limitation of handling and dealing in securities in physical
/Paper mode; the shortcomings of the market became manifest in terms of bad
deliveries ,delays in transfer and irregular settlement etc.
Primary market is also referred to as New Issue Market. Primary market
operations include new issues of shares by new and existing companies, further and right
issues to existing shareholders, public offers, and issue of debt instruments such as
debentures, bonds, etc.
The number of listed companies rose from 2265 in 1980 to over Rs. 6800 at
the end of 1998 the daily turnover accordingly shot up Rs. 25 crores in 1979-80 to
about Rs 260 crores in 1994-95. The number of shareholders increased from 10 lakhs
in 198 to 1.5 crores in 1998.
The number of share holder and investors in mutual funds has also risen
sharply from about 2 million to over 40 million during this period , rendering this
nation to the position of having the second largest investor population in the world
next only to USA.
It eliminates the risk of bad deliveries, which in turn eliminates all costs and
wastage of time associated with follow up for rectification. This reduction in risk
associated with bad delivery has lead to reduction in Brokerage to the extent of 0.5% by
quite a few brokerage firms. Screen-based trading facilitates the investor to keep a track
of the transaction from the source to the end .He can punch in the orders and see the
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results at the bottom of the screen. Thus, one can get instant trade confirmation. The
investor should familiarize himself with order entry screen and the software provided to
him. Any mistake made while inputting an order can cause him significant financial
loss. Moreover, he will be responsible for any losses caused by lack of knowledge and/or
experience. when an order is placed and executed, he becomes liable for payment of the
securities.
Active trading is dependent upon a number of specialized software systems.
Disruptions or failure of any electronic systems utilized may lead the investor with an
open position at which time losses can occur.
Definition of Online Trading:
The increasingly popular activity of buying and selling securities over the
internet, or to a lesser extent, through a broker's proprietary software.
Process of Online Trading:
Step-1:
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:
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a) First by entering the symbol and series of stock and other parameters such as
quantity and price of the scrip on the place order window.
b) Second, fill in the symbol, series and the default quantity.
Step-4:
It is the process of review. Thus, the investor has to review the order placed by
clicking the review option. He may also re-set to clear the values.
Step-5:
After the review has been satisfactory; the order has to be sent by clicking on the send
option.
Step-6:
The investor will receive an "Order Confirmation" 'message along with the order
number and the value of the order.
Step- 7:
In case the order is rejected by the Broker or the Stock Exchange for certain
reasons such as invalid price limit, an appropriate message will appear at the bottom of
the screen. At present, a time lag of about ten seconds is there in executing the trade.
Step-8:
It is regarding charging payment, for which there are different modes. Some
brokers will take some advance payment from the, investors and will fix their trading
limits. When the trade is executed, the broker will ask the investor for transfer of funds
by the investor to his account.
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NEED FOR THE STUDY:
Stock exchange is the integral part of the capital market. It is the most
perfect type of market for securities whether of govt. Semi govt. bodies or other public
bodies as for shares and debentures issued by the joint stock enterprise.
Stock exchange provides liquidity to the listed companies they give
quotations to the listed companies and help in trading raising funds from the market
stock. Exchange provides ready Marketability and unequal facility for the transfer of
ownership of stock shares and securities.
Stock market in India is more than century old and has functioning
effectively through the medium of recognized stock exchanges the stock market
which is the integral part of the capital has a major impact on the functioning of the
economy in turn the monsoon and agriculture industrial growth and performance of
the corporate sector in particular reflection the fundamental in the economy would
influenced the some of capital stock market and since the capital market in playing
a major role in the Indian economy from the past several years there is an essential
need to study the tone of the capital market in India.
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OBJECTIVE OF THE STUDY:
The primary objective is to analyze the changes in trading after the Exchange
Shifted from outcry to online trading system.
The secondary objective is to study the functions of the NET WORTH
STOCK BROKING LTD and through Various departments.
To know the on-line screen based trading system adopted by NET
WORTH STOCK BROKING LTD and about it’s communication
facilities . The appropriate configuration to set the network which
would link the NET WORTH STOCK BROKING LTD to
individual/members.
To know about the latest and future development in the stock exchange
Trading system . Clearly defining each and every term of the stock exchange
trading procedure .
To study investors reasons to trade online where investors have control over their account
can make their own decision for their actions, and are independent.
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SCOPE OF THE STUDY:
The scope of the study analyzes us to know the how the online trading
activities are carried out in NET WORTH STOCK BROKING LTD. The trading on
stock exchange in India used to take place to open outcry without use of information
technology for immediate matching or recording of trades.
This was time consuming and inefficient with imposed limits on trading
volumes and efficiency. In order to provide efficiency liquidity and transparency energy
introduced a national wide online fully automated Screen Based Trading System (SBTS).
Where a member can punch into the computer quantizes of securities and the price at
which he likes to transact are the transact means exhausted as soon as it finds a matching
sales are buy order from a counter party.
A SBTS electronically matched orders on a strict price time priority and hence
cuts down on time, cost and risk of error, as well as on fraud resulting in improved
operational efficiency. It allows faster in corporation of price sensitive information. In to
prevailing price that increases the information of efficiency of markets. It enables market
participants respective of geographical location to trade with one another simultaneously.
Improving the depth and liquidity of the market it provides to anonymity by accepting
orders, big or small the members without revealing there identity that providing equal
access to everybody it also provides a perfect audit price it helps to resolve disputes by
logging in the trade execution process in entity.
This diverted liquidity from other exchange and in the every first year of the
operation. NSE become the leading stock exchange in the company, impacting the
fortune of other exchange and forecasting them adopt SBTS also.
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SIGNIFICANCE OF THE STUDY:
NET WORTH STOCK BROKING LTD. is one of India’s leading financial services
providers with strong presence in South India. It was incorporated in 1994 and over the
years it acquired a name of trust through Equity and Commodity Broking businesses. In
2007, Baring India Private Equity Fund II Ltd., a leading private equity firm of
international repute acquired a majority stake in the Company. outcry system of trading
NET WORTH STOCK BROKING LTD has developed a computerized screen of
replace the conventional manual system trading computers are all the eligible members.
The representatives of M/S Tata Eixsi (India) LTD have taken up the installation of
computers regarding earthling ups etc. The software installed in “VECTOR” (Vector
Engine for Centralized Trading & online Reporting) a product developed by CMC to
implement a fully automated trade execution system. A lot of information is online so
they can keep up-to-date with what is happening in the trading world.
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METHODOLOGY:
Research methodology will help us to know what are the research methods,
techniques used in fulfilling the study conducted in NET WORTH STOCK BROKING
LTD. It also helps in giving scientific justification of the problems, which are all methods
are relevant and which are not relevant, why particular research method is appropriate for
the study.
Research Design:
Research design stands for advance planning of the methods adopted for
collecting the relevant data and techniques to be used in their analysis, keeping in view
the objective of the research and the availability of staff, time and money.
Sampling Design:
A sampling design is a procedure the researcher would adopt in selecting
the items for the sample. In fulfilling my project I have selected 100 employees randomly
from NET WORTH STOCK BROKING LTD to find out the Online Trading in the
organization and how it does brings bad or good impact for both Investors and the
organization.
In random sampling each and every item in the population have equal
chance of inclusion in the sample and each one of the possible samples has the same
probability of being selected.
Type of Data Collection:
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The collection of data can be classified into 2 categories
Primary Data
Secondary Data
Primary Data:
Primary data was collected through observing and interviewing employees
of NET WORTH STOCK BROKING LTD and through questionnaire method.
Secondary Data:
The secondary data has been collected from NET WORTH STOCK
BROKING LTD’s website.
Structured questionnaire: Structured questionnaire is a printed list of questions to be
filled by the respondents. The structured questions should be short as possible and simple
to understand. The questionnaire was designed such that it helps to elicit the accurate
information.
Observation Method- This method is that subjective bias is eliminated. This is
independent of respondent’s willingness to respond.
Interview Method- this method of data collection involves of oral-verbal stimuli and
reply in terms of oral-verbal response. In fulfilling this project in NET WORTH STOCK
BROKING LTD personal interview method is used i.e. direct personal investigation.
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LIMITATIONS OF THE STUDY:
The study is confined to online trading procedure only. Exhaustive analysis,
problem of listing , management of trade , SEBI guidelines relating to are not
covered due to limited time to keep the study in manageable limits.
Analysis has been done with in a limited boundary or area where the information
is lacking behind from other investors when compared to entire geographical area.
Getting appropriate response from the respondents.
Getting appointment from the investors.
The study is limited to the curriculum.
The study is limited to current time period.
The study is purely for academic purpose.
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INDUSTRY PROFILE
STOCK EXCHANGE:
Stocks (Shares, equity) are traded in stock exchange. India has two big stock
exchanges (Bombay Stock Exchange - BSE and National Stock Exchange - NSE) and
few small exchanges like Jaipur Stock Exchange etc. Click here to see the list of Stock
Exchanges in India
Investor can trade stocks in any of the stock exchange in India.
Stock Broker:
Investor requires a Stock Broker to buy and sell shares in stock exchanges
(BSE, NSE etc.). Stock Broker is registered member of stock exchange. A stockbroker
can register to one or more stock exchanges.
Only stockbrokers can directly buy and sell shares in Stock Market. An
investor must contact a stockbroker to trade stocks. Broker charge commissions
(brokerages) for their service. Brokerage is usually a percent of total amount of trade and
varies from broker to broker.
Stock Trading:
Traditionally stock trading is done through stockbrokers, personally or through
telephones. As number of people trading in stock market increase enormously in last few
years, some issues like location constrains, busy phone lines, miss communication etc
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start growing in stock broker offices. Information technology (Stock Market Software)
helps stock brokers in solving these problems with Online Stock Trading.
Online Stock Market Trading is an Internet based stock trading facility.
Investor can trade shares through a website without any manual intervention from Stock
Broker.
In this case these Online Stock Trading companies are stockbroker for the investor. They
are registered with one or more Stock Exchanges.
Mostly Online Trading Websites in India trades in BSE and NSE. There are
two different type of trading environments available for online equity trading. Installable
software based Stock Trading Terminals. These trading environments require software to
be installed on investors’ computer. This software is provided by the stockbroker. This
software’s require high speed internet connection. These kind of trading terminals are
used by high volume intraday equity traders. Below is the detail comparison of major
Online Stock Market Trading websites in India. This comparison is to help investor to
take calculated decision while searching for new trading portal.
1. ICICI Direct
2. Share khan
3. India bulls
4. 5Paisa
5. Motilal Oswal Securities
6. HDFC Securities
7. Reliance Money
8. IDBI Paisa Builder
9. Religare
10. Geojit
11. Networth Stock Broking
12. Kotak Securities
13. Standard Chartered-STCI Capital Markets Ltd
14. Angel Trade
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15. HSBC Invest Direct
DEFINITION OF STOCK EXCHANGE:
“Stock exchange means anybody or individuals whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of buying,
selling or dealing in securities”.
It is an association of member brokers for the purpose of self-regulation and
protecting the interests of its members. It can operate only if it is recognized by the
Government under the securities contracts (regulation) Act, 1956. The recognition is
granted under section 3 of the Act by the central government, Ministry of Finance.
HISTORY OF STOCK EXCHANGE:
The only stock exchanges operating in the 19 th century were those of
Bombay set up in 1875 and Ahmadabad set up in 1894. These were organized as
voluntary non profit-making association of brokers to regulate and protect their interests.
Before the control on securities trading became central subject under the constitution in
1950, it was a state subject and the Bombay securities contracts (control) Act of 1925
used to regulate trading in securities. Under this act, the Bombay stock exchange was
recognized in 1927 and Ahmadabad in 1937.
During the war boom, a number of stock exchanges were organized in
Bombay, Ahmadabad and other centers, but they were not recognized. Soon after it
became a central subject, central legislation was proposed and a committee headed by
A.D. Gorwala went into the bill for securities regulation. On the basis of the committee’s
recommendations and public discussion, the securities contracts (regulation) Act became
law in 1956.
FUNCTIONS OF STOCK EXCHANGE:
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Maintains activity training
Fixation of prices
Ensures safe and fare dealings
Aids in financing the industry
Dissemination of information
Performance end users
Self regulating organization
BYLAWS
Besides the above act, the securities contracts (regulation) rules were also
made in 1975 to regulative certain matters of trading on the stock exchanges. There are
also bylaws of the exchanges, which are concerned with the following subjects.
Opening / closing of the stock exchanges, timing of trading, regulation of
blank transfers, regulation of Badla or carryover business, control of the settlement and
other activities of the stock exchange, fixating of margin, fixation of market prices or
making up prices, regulation of taravani business (jobbing), etc., regulation of brokers
trading, brokerage chargers, trading rules on the exchange, arbitrage and settlement of
disputes, settlement and clearing of the trading etc.
REGULATION OF STOCK EXCHANGES
The securities contracts (regulation) act is the basis for operations of the
stock exchanges in India. No exchange can operate legally without the government
permission or recognition. Stock exchanges are given monopoly in certain areas under
section 19 of the above Act to ensure that the control and regulation are facilitated.
Recognition can be granted to a stock exchange provided certain conditions are satisfied
and the necessary information is supplied to the government. Recognition can also be
withdrawn, if necessary. Where there are no stock exchanges, the government licenses
some of the brokers to perform the functions of a stock exchange in its absence.
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SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI).
SEBI was set up as an autonomous regulatory authority by the government
of India in 1988 “to protect the interests of investors in securities and to promote the
development of, and to regulate the securities market and for matter connected therewith
or incidental thereto”. It is empowered by two acts namely the SEBI Act, 1992 and the
securities contract (regulation) Act, 1956 to perform the function of protecting investor’s
rights and regulating the capital markets.
INDIAN STOCK MARKET:
HISTORICAL BACKGROUND:
The stock market provides a market place for the purchase and sale of
securities evidencing the ownership of business property or of a public or business debt .
The origin of the stock market therefore goes back to the time when securities
representing this property or promises to pay were the first issued and made
transferable from one person to another .
The earliest record of securities dealing in India were loan transactions of
East India company , way back in the eighteenth century . By 1830’s there was a
perceptible increase in the volume of business , not only in loan but also in
corporate stock and shares . In 1850, the companies Act introducing limited
liability was enacted and with it commenced the era of modern joint stock
enterprise in India . The Act also served to generate investor interest in corporate
securities .
From 1850 to 1865, the history of brokers and their rise to power in
Bombay is the history of Premchand Roychand . Brokerage business attracted many
people into the field and by 1860, the number of brokers had increased to 60.
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An important early in the development of the stock market in India was
the formation of Native share and s tock Broker’s Association in Bombay, in 1857,
the precursor of the present day Bombay stock Exchange. Infact, the oldest stock
exchange in Asia is the BSE having been established in 1875,while the Tokyo stock
Exchange was founded in 1878.
The setting up of BSE was followed by the formation of associations in
Ahmadabad (1894) , Calcutta (1908)and Madras (1937).
NATIONAL STOCK EXCHANGE:
The NSE was incorporated in November 1992 with an equity capital of Rs.25
crores, the International Securities Consultancy (ISC) of Hong Kong has helped in
setting up NSE. ISC has prepared the detailed business plans and installation of
hardware and software system. The Promotion for NSE were financial institutions,
insurance companies, banks and SEBI capital market Ltd., infrastructure leasing and
financial services and stock holding corporation ltd. It has been set up to strengthen the
move towards professionalization of the capital market as well as provide nationwide
securities trading facilities to investors.
NSE is not an exchange in the traditional sense where brokers own and manage
the exchange. A two tier administrative set up involving a company board and a
governing aboard of the exchange is envisaged.
NSE is a national market for shares PSU bonds, debentures and government
securities since infrastructure and trading facilities are provided.
NSE-NIFTY:
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The NSE on April 22, 1996 launched a new equity Index. The NSE -50. The
new index, which replaced the existing NSE-100 index is expected to serve as an
appropriate Index foe the new segment of futures and options. “Nifty means National
Index for Fifty Stocks. The NSE—50 comprises 50 companies that represent 20
broad Industry groups with an aggregate market capitalization of around Rs
1,70,000 crores. All companies includes in the Index have a market capitalizations in
excess of Rs. 400 crores each and should have traded for 85% of trading days at
an impact cost of less than 1.5%
The base period for the index is the close of prices on Nov 3, 1995, which make
one year of completions of operations of NSE’s capitals markets segments . The base
values of the Index has been set at 1000.
NSE--MIDCAP INDEX:
The NSE midcap Index or the Junior Nifty comprises 50 stocks that represent
21abroad Industry groups and will provide proper representation of the madcap
segments of the Indian capitals Market. All stocks in the index should market
capitalizations of greater than Rs. 200 corers and should have traded 85% of the
trading days at an impact cost of less 2.5%.
The base period for the index is Nov 4, 1996, which signifies two years for
completion of operations of the capitals market segment of the operations. The values
of the Index has been set at 1000. Average daily turnover of the present scenario 258212
(lakhs) and number of averages daily trades 2160(lakhs). Ex: Satyam computers.
BOMBAY STOCK EXCHANGE:
17
The stock exchange, Mumbai, population known as “BSE” was established
in 1875 as “The Native share and stock brokers association ”, as a voluntary non-
profit making association . It has an evolved over the years into its present status as the
premier stock exchange in the Asia, even older than the Tokyo stock Exchange, which
was founded in 1878.
The exchange , while providing an efficient and transparent market for
trading in securities, uphold the interest of the investors and ensure redressed of their
grievances, whether against the companies or its own member brokers. It also strives to
educate and enlighten the investors by making available necessary information inputs and
conducting investor education programmes.
A governing board comprising of 9 elected directors, 2 SEBI nominees, 7
public representatives and an executive directors is the apex body ,which decides the
policies and regulates the affairs of the exchange.
The executive director as the chief executive officer is responsible for the day
today administration of the exchange. The average daily turnover of the exchange during
the year 2000-01 (April – March) was Rs. 3984.19 crores and average number of daily
trades 5.69 lakhs.
How ever the average daily turn over of the exchange during the year 2001-
02 has declined to Rs. 1244.10 crores and number of average daily trades during the
period to 5.17 lakhs .
The average daily turnover of the exchange during the year 2002-2003
declined and number of average daily trades during the period is also decreased.
The Ban on all deferral product like BLESS AND ALBM in the Indian
capital market by SEBI with effect from July 2, 2001 , abolition of account period
settlements, introduction of compulsory rolling settlement in all script traded on
18
the exchange with effect from DEC 31 , 2001 ,etc., have adversely impacted the
liquidity and consequently there is a considerable decline in the daily turn over
at the exchange . The average daily turn over of the exchange present scenario
is 110363 (lakhs) and number of average daily trades 1057 (lakhs).
BSE INDICES:
In order to enable the market participants, analysts etc., to track the
various ups and downs in the Indian stock market , the exchange has
introduced in 1986 an equity stock index called BSE--SENSEX that
subsequently became the barometer of the moment of the share prices in the
Indian stock market . It is a “Market Capitalization Weighted ” index of 30
components stocks representing a sample of large ,well –established and leading
companies. The base year of is1978-79. The Sensex is widely report in both domestic
and International market through print as well as electronic media .
Sensex calculated using a market capitalization weighted method. As per
this methodology. The level of the index reflects the total market value of all 30-
component Stock from different industries related to particular base period . The
total market value of a company is determined by multiplying the price of its stock by the
number of Shares outstanding . Statisticians call an index of set of combined variable
(such as price and number of shares ) a composite Index . An indexed number is
used to represent the result of this calculation in order to make the value
easier to work with and track over a time . It is much easier to graph a chart
based on Indexed values than one based on actual value world over majority
of the well-knowing indices are constructed using “ Market capitalization
weighted method”.
In practice , the daily calculation of SENSEX is done by dividing
the aggregate market value of the 30 companies in the Index comparable
19
over a period or time and if the reference point for the entire Index maintenance
adjustments.
SENSEX is widely used to describe the mood in the Indian stock
markets . Base year average is changed as per the formula new base year average =
old base year average *(new market value / old market value, there are24 stock
exchanges recognized under the securities Contract (regulation) Act,1956.At
present there are 19 are working).
NAME OF THE STOCK EXCHANGE YEARBombay Stocks Exchange
Ahmadabad Share and stock brokers association
Calcutta stock exchange association Ltd
Delhi Stock exchange association Ltd
Madras stock exchange association Ltd
Indore stock broker association Ltd
Bangloore stock exchange
Hyderabad stock exchange
Cochin stock exchange
Pune stock exchange ,U.P stock exchange
Ludhiana stock exchange
Jaipur stock exchange Ltd
Gauhati stock exchange Ltd
Manglore stock exchange
Maghad stock exchange Ltd, Patna
1875
1957
1957
1957
1957
1958
1963
1943
1978
1982
1983
1983-84
1984
1985
1986
20
Bhuvaneshwar stock exchange association Ltd
Over the counter exchange of India , Bombay
Saurastra Kuth stock exchange Ltd
Vsdodard stock exchange Ltd
Coimbatore stock exchange Ltd
The Meerut stock exchange
National stock exchange
Intergrated stock exchange
1989
1989
1990
1991
1991
1991
1991
1999
GROWTH OF STOCK EXCHANGE IN INDIA:
The stock market activities in India were relatively on a low key during the
beginning of the decade of 80’s securities mainly because of the allies regime till 1947.
Afterwards, the Government of India concentrated more on administration and less on
development and pursuit of the philosophy of public sector dominating the economy.
Stock Exchange was placed under the exclusive regulation of the Government through
proclamation in 1930’s of the constitution of India.
During the 1950’s & 1960’s Indian economy was dominated by the public
sector, which was consider as the major vehicle for economic and industrial development.
This trend has changed since mid 80’s with liberalization of Government policies
and greater freedom given to private sector.
This policy of progressively deregulating the economy led to the emerge of
stock market as a major instrument of finance for industry and trade. India can boast of
being one of the oldest stock markets in Asia. The Bombay Stock exchange (BSE) was
founded in 1875, while the London Stock Exchange was established in 1773.
21
PRESENT SCENARIO:
The decade of 80’s witnessed the emergence of stock market as major
source of finance for trade and industry . The process of liberalization and
deregulation has led to a pace of growth almost unparalleled in the history of any
nation. Average annual capital mobilization from market, which used to about Rs.70
crores in the 60’s and about Rs. 90 crores in the 70’s increased manifold during the 80’s
with the amount raised in 1989-90 being of the order of Rs.647.3 crores.
The number of listed companies rose from 2265 in 1980 to over Rs. 680 the
end of 1998 the daily turnover accordingly shot up Rs. 25 crores in 1979-80 to about
Rs 260 crores in 1994-9 . The number of shareholders increased from 10 lakhs in 198 to
1.5 crore in 1998.
The number of share holder and investors in mutual funds has also risen
sharply from about 2 million to over 40 million during this period , rendering this
nation to the position of having the second largest investor population in the world
next only to USA.
At present, there are 19 Stock Exchange recognized under securities
Contracts (Regulation) Act, 1956. These recognized stock exchanges mobilize and
direct the flow of saving of the general public into productive channels of investment.
22
COMPANY PROFILE
Incorporated in 1993, Net worth Stock Broking Limited (NSBL) has
been a listed company at Bombay Stock Exchange (BSE), Mumbai since 1995. A
Member, at the National Stock Exchange of India (NSE) and Bombay Stock Exchange,
Mumbai (BSE) on the Capital Market and Derivatives (Futures & Options) segment,
NSBL has been traditionally servicing Institutional clients and in the recent past has
forayed into retail broking, establishing branches across the country. Presence is being
marked in the Middle East, Europe and the United States too, as part of our attempts to
cater to global markets. We are a Depository participant at Central Depository Services
India (CDSL) with plans to become one at National Securities Depository (NSDL) by the
end of this quarter. We have our customers participating in the booming commodities
markets with our membership at the Multi Commodity Exchange of India (MCX) and
National Commodity & Derivatives Exchange (NCDEX), through Networth Stock.Com
Ltd. With its strong support and business units of research, distribution & advisory,
NSBL aims to become a one-stop solution to the broking and investment needs of its
clients, globally.
23
Strong team of professional’s experienced and qualified pool of human
resources drawn from top financial service & broking houses form the backbone of our
sizeable infrastructure. Highly technology oriented, the company’s scalability of
operations and the highest level of service standards has ensured rapid growth in the
number of locations & the clients serviced in a very short span of time. ‘Networthians’,
as each one of our 400 plus and ever growing team members are addressed, is a dedicated
team motivated to continuously progress by imbibing the best of global practices, Indian
sing such practices, and to constantly evolve a comprehensive suite of products &
services trying to meet every financial / investment need of the clients.
NSE CM and Derivatives Segment SEBI Regn. 1NB230638639 & 1NF230638639
BSE CM and Derivatives Segment SEBI Regn. 1NB010638634 &
PMS SEBI Regn. 1NP000001371 CDSL DP SEBI Regn. IN-DP-CDSL
251-2004
Commodities Trading: MCX -10585 and NCDEX - 00011 (through Networth
Stock.Com Ltd.)
Hyderabad (Somajiguda)
401, Dega Towers, 4th Floor, Raj Bhavan Road, Somajiguda Hyderabad - 500
082
Andhra Pradesh.
Phone Nos.: 040-55560708, 55562256, and 30994985
Mumbai (MF Division)
49, Au Chambers, 4th Floor, Tamarind Lane, Fort
Mumbai - 400 001
24
Maharashtra.
Phone Nos.: 022- 22650253
Mumbai (Registered Office)
5, Church gate House, 2nd Floor, 32/ 34 Veer Narirnan Road, Fort
Mumbai - 400 001
Maharashtra.
Phone No. 022-22850428
The Networth connectivity with 107 branches and growing
107 branches107 branches
Online Stock Trading Platforms:
25
Networth is an online platform packed with products & services. Networthdirect provides
clients access to:
1. e-transact (Website based trading)
This is the platform where customers can trade online in various financial
instruments. It is conveniently integrated with multiple payment gateways and
depository services to provide a seamless transaction capability. It's a Single
Customized Integrated Screen
The screen is customizable with ability to choose specific stocks from specific
exchanges [BSE / NSE (Cash / F&O)].
Viewing price fluctuation and trading on multiple exchanges from the same
platform with real time streaming quotes.
Live news and top gainers/losers update on the same screen.
3 in 1 consolidation - Integration of client's bank account, trading account and
demat account leads to easy, paperless and high speed execution of transactions.
No need of physical cheques / transfer instruction slips.
Instant Order/Trade Confirmations - Instant execution of the entire trading
transaction, from logging on to the execution and settlement of pay in/payout of
funds to order/trade delivery.
Online Portfolio Tracker - Consolidated Portfolio that helps in maintaining &
tracking on a real time basis and it gets updated every 5 seconds.
Online Back Office – Enables you to get multiple transactional detailed reports
viz. financial statements, net position, settlement bills, delivery reports,
transaction statement, contract note etc.
Security - 128-bit encryption to ensure the highest level of safety to protect all
online information and SSL Certification for secure transaction web pages.
2. My Networth
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This provides access to your accounts and statements online and with 24X7
availability. You can view your portfolio across all assets and get a consolidated
view.
How to open account with Networth?
There are 3 simple ways to open an account with Networth.
Call at one of the below number and ask to open an account with them.
Toll Free No.: 1800-220-223
Other No: 022-30641700
Visit one of their nearest branch and you will find representative to help you out:
Click on this link http://www.networthdirect.com/Branches/BranchNetwork.aspx
to find the branch closest to you.They have 156 branches across the India.
Mail them your details at [email protected], and their relationship
manager will contact you.
Features of Networth
1. Call & Trade [1800 3000 0333]: A Toll Free No. accessible from any landline or
mobile phone in India. As an introductory offer there are no extra charges for
availing this service. User can instantly place / modify /cancel orders, and check
status of orders which they have placed.
2. Research-based advice: They generate reports like India Market Report, Pivot
Points, Result preview and updates, Company reports, IPO analysis etc to enable
investment decisions.
3. Transparency: Networth provides an audit trail from order placement, to
clearing and settlement, and finally ending with a credit into DP account.
4. Efficient Grievance handling: Client queries and grievance redressal module -
Response to all queries within 1hr. If within 36 hrs a client's query is not
addressed, an intimation is made to the management. Exclusive set of
professionals taking care of client grievances and clients can view the status of
their grievances online.
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5. One Statement all Investments: Investments will be mapped into a single
account statement. The entire portfolio is mark to market. Now in one statement
you can view your entire portfolio and also keep a tab on your Networth.
6. SMS Updates: Investor will be provided with regular updates on SMS regarding
their ledger balance, credit of bonus and dividend and all other trading related
details. They also send research tips to advice their investor.
Advantages of Networth
1. Trader can make off-market orders entry even while the market is closed. Orders
will be released as soon as the market opens on the following day.
2. Brokerage rates are negotiable.
3. No demat account transaction fees.
4. No annual account maintenance charges for demat and trading account.
(Hence your account maintenance charges are NIL compared to India bulls, ICICI
Direct, HDFC Securities etc.)
5. They provide facility to apply online for IPO’s and Mutual Funds.
Useful links about Networth
1. Website: http://www.networthdirect.com
2. Email: [email protected]
3. Phone: 022-3064 1700
4. Toll Free: 1800 22 0223
5. Call & Trade : 1800 3000 0333 (Toll Free)
6. SMS: NETWORTH to 56161
Products and services portfolio
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Retail and institutional broking
Research for institutional and retail clients
Distribution of financial products
PMS
Corporate finance
Net trading
Depository services
Commodities Broking
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Infrastructure
• A corporate office and 3 divisional offices in CBD of Mumbai which houses
state-of-the-art dealing room, research wing & management and back offices.
• All of 107 branches and franchisees are fully wired and connected to hub at
Corporate office at Mumbai. Add on branches also will be wired and connected to
central hub
• Web enabled connectivity and software in place for net trading.
• 60 operative ID’s for dealing room
• In house technology back up team to ensure un-interrupted connectivity.
1993: Networth Started with 300 Sq.ft. of office space & 10 employees
2006: Spread over 42 cities (around 70,000 Sq.ft of office space) with over 107 branches
& employee strength over 400
Market & research
Focusing on your needs
Every investor has different needs, different preferences, and different viewpoints.
Whether investor prefer to make own investment decisions or desire more in-depth
assistance, company committed to providing the advice and research to help you succeed.
Networth providing following services to their customers,
Daily Morning Notes
Market Musing
Company Reports
Theme Based Reports
Weekly Notes
IPOs
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Sector Reports
Stock Stance
Pre-guarter/Updates
Bullion Tracker
F&O Tracker
QUALITY POLICY
To achieve and retain leadership, Networth shall aim for complete customer satisfaction,
by combining its human and technological resources, to provide superior quality financial
services. In the process, Networth will strive to exceed Customer’s expectations.
As per the quality policy, Networth will:
Build in house processes that will ensure transparent and harmonious
relationships with its clients and investors to provide high quality of services.
Establish a partner relationship with in its investor service agents and vendors that
will help in keeping up its commitments to the customers.
Provide high quality of work life for all its employees and equip them with
adequate knowledge & skill so as to respond to customer’s needs.
Continue to uphold the values of honesty & integrity and strive to establish
unparalleled standards in business ethics.
Use state-of-the art information technology in developing new and innovative
financial products and services to meet the changing needs of investors and
clients.
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Strive to be a reliable source of value-added financial products and services and
constantly guide the individuals and institutions in making a judicious choice of it.
Strive to keep all stake-holders (share holders, clients, investors, employees, suppliers
and regulatory authorities) proud and satisfied.
Key Personnel:
• Mr. Girish Dev, CEO & Executive Director
• Mr. S P Jain – CMD Networth Stock Broking Ltd.
A qualified Chartered Accountant with over 15 years of experience in the
capital markets.
• Mr. Deepak Mehta – Head PMS
Over 12 years of experience in the capital markets and has the prior work
experience of serving on the Equity desk of Reliance.
• Mr.Viral Doshi – Equity Strategist
A qualified Chartered Accountant with experience of over a decade in technical
analysis with respect to equity markets.
• Mr. Vinesh Jain – Asst. Fund Manager
A qualified MBA graduate specializing in finance and over two years of
experience in the capital markets.
• Research and the Back office.
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we have sought to provide premium financial services and information, so that the power
of investment is vested with the client. We equip those who invest with us to make
intelligent investment decisions, providing them with the flexibility to either tap into our
extensive knowledge and expertise, or make their own decisions. We made our debut into
the financial world by servicing Institutional clients, and proved its high scalability of
operations by growing exponentially over a short period of time. Now, powered by a top-
notch research team and a network of experts, we provide an array of financial products
& services spanning entire India.Our strong support, technology-driven operations and
business units of research, distribution, advisory, wide array of products & services
coalesce to provide you with a one-stop solution to cater to all your investment needs.
Our single minded objective is to help you grow your Networth.
Share Holding PatternShare Holding Pattern
September 2010
June 2010
March 2010
December 2009
September 2009
June 2009
March 2009
December 2008
September 2008
June 2008
March 2008
OUR GROUP COMPANIES
Networth Stock Broking Ltd. [NSBL]
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NSBL is a member of the National Stock Exchange of India Ltd (NSE) and the Bombay
Stock Exchange Ltd (BSE) in the Capital Market and Derivatives (Futures & Options)
segment. NSBL has also acquired membership of the currency derivatives segment
with NSE, BSE & MCX-SX. It is Depository participants with Central Depository
Services India (CDSL) and National Securities Depository (India) Limited (NSDL). With
a client base of over 1L loyal customers, NSBL is spread across the country though its
over 230+ branches. NSBL is listed on the BSE since 1994.
Networth Wealth Solutions Ltd. [NWSL]
NWSL is into the business of delivery of Financial Planning & Advice. It’s vision is to
‘Advice & Execute money related solutions to/for our customers in the most Convenient
& Consolidated manner, while making sure that their experience with us is always
pleasant & memorable resulting in positive advocacy’. The product & Services include
Financial Planning, Life Insurance, On-line Trading Account, Mutual Funds,
Debentures/Bonds, General Insurance, Loans and Depository Services.
NetworthStock.ComLtd.[NSCL]
NSCL is the commodities arm of NSBL. It is a member at the Multi Commodity
Exchange of India (MCX) and National Commodity & Derivatives Exchange (NCDEX)
and is backed by solid research & analytics in Commodities.
NetworthSoftTechLtd.[NSL]
NSL is an ISO 9001:2000 Certified Company. It is into Application Development &
maintenance. Building & Implementation of packaged software across various functions
within the Financial Services Industry is at its core. It also provides data center services
which include hosting of websites, applications & related services. It combines a unique
delivery model infused by a distinct culture of customer satisfaction.
Ravisha Financial Services Pvt. Ltd. [RFSL]
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RFSL is a RBI registered NBFC engaged in financing, primarily it provides loan against
securities
Principles & Values
At Net worth Stock Broking Ltd. success is built on teamwork, partnership and the
diversity of the people. At the heart of our values lie diversity and inclusion. They are a
fundamental part of our culture, and constitute a long-term priority in our aim to become
the world's best international bank.
Values
Responsive
Trustworthy
Creative
Courageous
Approach
Participation:- Focusing on attractive, growing markets where we can leverage
our relationships and expertise
Competitive positioning:- Combining global capability, deep local knowledge and
creativity to outperform our competitors
Management Discipline:- Continuously improving the way we work, balancing
the pursuit of growth with firm control of costs and risks Commitment to
stakeholders
Customers:- Passionate about our customers' success, delighting them with the
quality of our service
Our People:- Helping our people to grow, enabling individuals to make a
difference and teams to win
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Communities:- Trusted and caring, dedicated to making a difference
Investors:- A distinctive investment delivering outstanding performance and
superior returns
Regulators: - Exemplary governance and ethics wherever we are.
Objective
Direct, control and administer the financial activities of the organization, and provide the
Chief Executive and the Board with financial assessments and information which will
ensure planning and budgeting activities meet corporate goals.
Exclusive benefits for you:
Reduced paper work
Speedy settlement process resulting in increased liquidity of your securities
No risk of loss, wrong transfer, mutilation or theft of share certificates
Hassle free automated pay-in of your sell obligation with no need for physical
instruction
Instant disbursement of non-cash benefits like Bonus and Rights
Efficient pledge mechanism
Core Values
Integrity:
A company honoring commitment with highest ethical and business practices.
Excellence:
Constantly strive to achieve the highest possible standards in our work and in the quality
of the services, we provide.
Unity:
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Work cohesively with our colleagues across the Group and with our customers and
partners around the world, building strong relationships based on understanding and
mutual cooperation.
THEORETICAL FRAME WORK
Online trading refers to buying and selling securities via the Internet or other
electronic means such a wireless access, touch-tone telephones, and other new
technologies. Technology is revolutionizing every field of human endeavor and activity.
The rapid growth in number, volume and value of securities in the Indian
capital market expose the limitation of handling and dealing in securities in physical
/Paper mode; the shortcomings of the market became manifest in terms of bad
deliveries ,delays in transfer and irregular settlement etc.
Primary market is also referred to as New Issue Market. Primary market
operations include new issues of shares by new and existing companies, further and right
issues to existing shareholders, public offers, and issue of debt instruments such as
debentures, bonds, etc.
The number of listed companies rose from 2265 in 1980 to over Rs. 6800 at
the end of 1998 the daily turnover accordingly shot up Rs. 25 crores in 1979-80 to about
Rs 260 crores in 1994-95. The number of shareholders increased from 10 lakhs in 198 to
1.5 crores in 1998.
The number of share holder and investors in mutual funds has also risen
sharply from about 2 million to over 40 million during this period , rendering this
nation to the position of having the second largest investor population in the world next
only to USA.
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It eliminates the risk of bad deliveries, which in turn eliminates all costs and
wastage of time associated with follow up for rectification. This reduction in risk
associated with bad delivery has lead to reduction in Brokerage to the extent of 0.5% by
quite a few brokerage firms. Screen-based trading facilitates the investor to keep a track
of the transaction from the source to the end .He can punch in the orders and see the
results at the bottom of the screen. Thus, one can get instant trade confirmation. The
investor should familiarize himself with order entry screen and the software provided
to him. Any mistake made while inputting an order can cause him significant financial
loss. Moreover, he will be responsible for any losses caused by lack of knowledge and/or
experience .when an order is placed and executed, he becomes liable for payment of the
securities.
Active trading is dependent upon a number of specialized software systems.
Disruptions or failure of any electronic systems utilized may lead the investor with an
open position at which time losses can occur.
The National Stock Exchange (NSE) followed by the stock exchange Mumbai
(BSE)in 1995, first introduced electronic medium of trading. There was a time when an
individual investor has to go to an exchange trading Ring to have his order
executed .Today the premier exchanges of the country want To come to his door
step ,or rather his desktop .Relationship marketing is really gaining momentum. The
country’s two biggest exchanges the BSE and NSE have embraced the internet in an
effort to leverage the power of this medium to reach out to the hitherto untapped
masses.
Says NSE former managing director ,RH .PATIL,” our internet initiative is in
line with our basic thrust which we have been following from day one ,when we Were
conceived as a National Exchange with a mission to spread every where , To be as close
to investors as possible .” In India Geojit securities, a leading brokerage house has the
distinction of being the first to offer online Trading as well as for derivatives
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According to functional basis financial markets are classified into two types.
They are
1. Money markets (short-term)
2. Capital markets (long-term)
According to institutional basis again classified in to two types. They are
1. Organized financial market
2. Non-organized financial market.
The organized market comprises of official market represented by
recognized institutions, bank and government (SEBI) registered/controlled activities and
intermediaries. The unorganized market is composed of indigenous bankers,
moneylenders, individual professional and non-professionals.
MONEY MARKET:
Money market is a place where we can raise short-term capital. Again the
money market is classified in to
Inter bank call money market
Bill market and
Bank loan market Etc.
Eg; treasury bills, commercial papers, CD's etc.
CAPITAL MARKET:
Capital market is a place where we can raise long-term capital. Again the
capital market is classified in to 2 types and they are
1. Primary market and
2. Secondary market.
Eg: Shares, Debentures, and Loans etc.
1. PRIMARY MARKET
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Primary market is generally referred to the market of new issues or market for
mobilization of resources by the companies and government undertakings, for new
projects as also for expansion, modernization, addition, diversification and upgradation.
Primary market is also referred to as New Issue Market. Primary market operations
include new issues of shares by new and existing companies, further and right issues to
existing shareholders, public offers, and issue of debt instruments such as debentures,
bonds, etc.
The primary market is regulated by the Securities and Exchange Board of India
(SEBI a government regulated authority).
Function:
The main services of the primary market are origination, underwriting, and
distribution. Origination deals with the origin of the new issue. Underwriting contract
make the shares predictable and remove the element of uncertainty in the subscription.
Distribution refers to the sale of securities to the investors.
The following are the market intermediaries associated with the market:
Merchant banker/book building lead manager
Registrar and transfer agent
Underwriter/broker to the issue
Adviser to the issue
Banker to the issue
Depository
Depository participant
Investor’s protection in the primary market:
To ensure healthy growth of primary market, the investing public should be
protected. The term investor protection as a wider meaning in the primary market. The
principal ingredients of investor’s protection are:
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Provision of all the relevant information
Provision of accurate information and
Transparent allotment procedures without any bias.
2. SECONDARY MARKET:
The primary market deals with the new issues of securities. Outstanding
securities are traded in the secondary market, which is commonly known as stock market
or stock exchange. “The secondary market is a market where scrips are traded”. It is a
market place which provides liquidity to the scrips issued in the primary market. Thus,
the growth of secondary market depend on the primary market. More the number of
companies entering the primary market, the greater is the volume of trade at the
secondary market. Trading activities in the secondary market are done through the
recognized stock exchanges which are 23 in number including Over The Counter
Exchange of India, National Stock Exchange of India and Interconnected Stock Exchange
of India.
Secondary market operations involve buying and selling of securities on the
stock exchange through its members. The companies hitting the primary market are
mandatorily required to list their shares on one or more stock exchanges in India
including stock exchanges. Listing of scrips provides liquidity and offers an opportunity
to the investors to buy or sell the scrips.
The following intermediaries in the secondary market:
Broker/member of stock exchange – buyers broker and sellers broker
Portfolio Manager
Investment advisor
Share transfer agent
Depository
Depository participants.
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Regulatory Frame Work OF Stock Exchange:
A comprehensive legal framework was provided by the “Securities Contract
Regulation Act, 1956” and “Securities Exchange Board of India 1952”. Three tier
regulatory structure comprising
1. Ministry of finance
2. The Securities And Exchange Board of India
3. Governing body
Members of the stock exchange:
The securities contract regulation act 1956 has provided uniform regulation for
the admission of members in the stock exchanges. The qualifications for becoming a
member of a recognized stock exchange are given below:
The minimum age prescribed for the members is 21 years.
He should be an Indian citizen.
He should be neither a bankrupt nor compound with the creditors.
He should not be convicted for fraud or dishonesty.
He should not be engaged in any other business connected with a company.
He should not be a defaulter of any other stock exchange.
The minimum required educational is a pass in 12th standard examination.
Meaning of demat:
A demat account allows you to buy, sell and transact shares without the endless
paper work and delays. It is also safe, secure and convenient.
What is Demat account?
Demat refers to a dematerialized account. Just as you have to open an account
with a bank if you want to save your money, make cheque payments etc, you
need to open a demat account if you want to buy or sell stocks. So it is just like
a bank account where actual money is replaced by shares.
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Why demat?
1. The demat account reduces brokerage charges.
2. It enables quick ownership of securities on settlement resulting in increased
liquidity.
3. It avoids confusion in the ownership title of securities, and provides easy
receipt of public issue allotments.
4. It also helps you avoid bad deliveries caused by signature mismatch, postal
delays and loss of certificate in transit.
5. It eliminates risks associated with forgery, counterfeiting and loss due to
fire, theft or mutilation.
6. Demat account holders can also avoid stamp duty (as against 0.5 percent
payable on physical shares), avoid filling up of transfer deeds.
Steps involved in opening a demat account:
Opening an individual demats account is a two-step process:
1. Approaching a DP and fill up the demat account-opening booklet. The web
sites of the NSDL and the CDSL list the approved DPs.
2. We receive an account number and a DP ID number for the account.
The cost opening and holding a demat account:
There are four major charges usually levied on a demat account:
1. Account opening fee
2. Annual maintenance fee
3. Custodian fee
4. Transaction fee.
Online Equity Trading:
Through the internet, investors can quickly find affordable market research
Stock information, and economic news .They often can have their broker/dealers execute
trades almost instantaneously, while generally incurring lower Commissions. These
facilities for online investing can thus provide significant benefits to many investors.
At the same time ,investors should recognized that online trading might present Special
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risks. For example, investors should understand that execution of their orders might be
delayed during times of high market trading volume. Investors should appreciate the
usefulness of limit orders, and they should treat bulletin
boards and monetary with skepticism.
E-broking or trading of stock market shares on the internet has captured
the minds of individual investor worldwide. Report says more than seven million
American Investors have gone online in the last 5-7years , and this number is
likely to double in the next two years in many other countries including India ,
individual investors have come out in open support of this new trading system. The
Internet has democratized the investing world by giving every web-enabled individual
access to a rich reservoir of data and analyses on the stock market. In India ,
exchanges have been very proactive, rather than waiting. They have chosen to be
the harbingers of change by allowing members who fulfill the criteria to take advantage
of the internet by facilitating a computer-to-computer trading link. Using internet, a
broker can set up a NSE trading facility in a remote town at a far lower cost, which
makes penetration of capital markets easier in rural areas.
BSE has already embarked on a campaign of investor education and
awareness about the benefits of online trading and the security features built into The
internet trading system to be effected via the exchange trading plaza. there is A
tremendous potential for growth in the online trading market as more and more
Brokers are going online. Both BSE and NSE are trying to provide a cost-effective
solution for their Members to provide a standards-based internet trading facility to
their clients at a Fraction of the cost , of what it would cost the broker if he went
alone . The typical Cost of setting up a decent sized internet trading solution is
between Rs 10 to 15Crores, which a large number of brokers are unlikely to be affordable
.The BSE Therefore
Plans to offer an exchange– based system that leverages the economies of scale to
offer routing via a centralized engine with the additions of content of Companies,
available with the exchange.
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BSE has introduced an application Service provider model, which has widely
been accepted. NSE has formed a 50-50 joint venture with I-flex solutions to offer
the Exchange trading solutions . The joint venture christened dotex international in
addition to providing access to the exchanges order matching system will also allow
access to fundamental analysis , balance sheet analysis and any other relevant
company information.
The BSE too is offering tools like technical analysis and scrip related
information etc. on the site at a cost, which is 10 to 20%of the cost of the broker going
solo. In India quite a number of websites today, offer online trading and e-Broking over
the internet. These are either wholly specialized services or are being offered as
an extension to an already existing offline business model. Popular Websites like
ICICI direct.com investmartindia.com
Geojitsecurities.com,5paosa.com,kotakstreet.com,sharekhan.com,offer basic
online buying and selling of shares through major stock exchanges like the NSE , BSE
and other regional stock exchanges .Although, in principle it is very much like how it is
done traditionally and physically through a broker or broking firm ,it differs from the
way that the automation is built into the system ,with the individual maintaining
control of the path of transaction till the stage of execution .Only Demat
(Dematerialization) shares can be traded on the internet.
Following are the sailent features and benefits offered to individuals who
desire to trade online trading through various e-broking firms:
Convenience
Liquidity advantages
Tracking
Technology benefits
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In order to stay ahead in the competition e-broking firms have to provide
their members with innovative schemes and clearly visible advantages in terms of
Hassle-free transacting and more
Obviously low brokerage rates.
Online trading is bottle for the Indian investor’s purse. The entry of competitive
price online broking services has brought the excitement back in a rather lack luster
market. It has exposed the investors to the dynamics of day trading. Online trading also
has a role to play in economic factors such as the mobilization of savings. From a macro
economic perspective in the us, about 15% of savings were invested in equities in 1996.
The concept of online trading is eminently flexible due to scalability of infrastructure
and other evolving product offerings.
Consequently the many benefits of online trading will continue to attract
investors, which in turn in economics of massive scale from the going mass of
transaction. In turn, this will enable web managers of online trading sites to constantly
upgrade their product offering can enhance the quality of online trading experience, on a
continuous basis.
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On-Line surveillance:
Log-in
Enter your Order quickly here
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ONLINE TRADING PLATFORM:
They are three types of online trading platforms are their:
1. Easy usage
2. Advance usage
3. Super usage
ONLINE TRADING PLATFORM
A) Easy usage:
It is a powerful browser based trading system for those who are relatively new
to online investing. A unique integrated account, linking your banking, broking, and
demat accounts. Our cutting-edge trading interface gives you the power to research stock
trends, find the latest stock quotes and make fast trades right from the computer you
already have. You no longer have to depend on someone else to handle your trades - the
power to make your mark on the stock market is in your hands.
EASY Usage simplifies the online trading process and gives you unlimited
access to your trading history to see where you started, where you are now and where you
have room to grow. And with our research and stock watch tools, you can be ready to
trade stock at a moment's notice.
Benefits of Easy usage:
Trading on NSE & BSE
World class resources
Integrated Bank, Demat and Trading Accounts
Get Current & Historical Order Status
Monitor your orders
Updated buying power
Anywhere access
Access to all back end reports and data
Online Research & Exchange Calls.
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B) Advance usage:
Advance Usage is a Applet-based system designed specially for Active
Traders. Customers can also trade on Advance Usage where they have access to live
streaming quotes, which enables them to keep track of real-time price movement.
Multiple market watch, message window and trading window, all in one screen, to help
customers track individual stocks and make timely trades when investing online. Fast &
capable trading application to power your online account.
Benefits of Advance usage
Streaming quotes
Market Depth Window
Trading on NSE & BSE
Anywhere access
Create Multiple Watch lists
C) Super usage:
Trade along side professional stock brokers from the comfort of your own home
or office. SUPER Usage is an advanced, customizable online trading platform built
exclusively for active traders like you. SUPER Usage launches right from your desktop
and offers professional, complimentary tools that can help give you an advantage in the
marketplace. SUPER Usage makes the most of state-of the-art technology to deliver
power, speed and reliability.
Benefits of Super usage:
Personalized Stock Quote Lists
Fully Customizable display
Streaming Intraday, Daily and Weekly Charts
Quick Quote.
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ONLINE TRADING IN COMMODITIES:
INTRODUCTION:
Commodities Futures’ trading…! in India have a long history. The first
commodity futures market appeared in 1875. But the new standardized form of trading in
the Indian capital market is an attractive package for all the people who earn money
through speculation by trading into FUTURES. It is a well-known fact and should be
remembered that the trading in commodities through futures’ exchanges is merely, “old
wine in a new bottle”.
The trading in commodities was started with the first transaction that took place
between two individuals. We can relate this to the ancient method of trading i.e.,
BARTER SYSTEM. This method faced the initial hiccups due to the problems like: store
of value, medium of exchange, deferred payment, measure of wealth etc.. This led to the
invention of MONEY. As the market started to expand, the problem of scarcity piled up.
The farmers/traders then felt the need to protect themselves against the
fluctuations in the price for their produce. In the ancient times, the commodities traded
were – the Agricultural Produce, which was exposed to higher risk i.e., the natural
calamities and had to face the price uncertainty. It was certain that during the scarcity, the
farmer, realized higher prices and during the oversupply he had to loose his profitability.
On the other hand, the trader had to pay higher price during the scarcity and vice versa. It
was at this time that both joined hands and entered into a contract for the trade i.e.,
delivery of the produce after the harvest, for a price decided earlier. By this both had
reduced the future uncertainty.
One stone still remained unturned- ‘surety of honoring the contract on part
from either of the parties’. This problem was settled in the year 1848, when a group of
traders in CHICAGO came forward to standardize the trading. They initiated the concept
of “to-arrive” contract and permitted the farmers to lock in the price upfront and deliver
the grain at a contracted date later. This trading was carried on a platform called
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CHICAGO BOARD OF TRADE, one of the most popular commodities trading
exchanges’ today. It was this time that the trading in commodity futures’ picked up and
never looked back.
Although in the 19 th century only agricultural produce was traded as a futures
contract, but now, the commodities of global or at least domestic importance are being
traded over the commodity futures’ exchanges. This form of trading has proved useful as
a device for HEDGING and SPECULATION. The commodities that are traded today are:
Agro-Based Commodities…… Wheat, Corn, Cotton, Oils, Oilseeds etc..
Soft Commodities…………….. Coffee, Cocoa, Sugar etc
Livestock………………………. Live Cattle, Pork Bellies etc
Energy………………………….. Crude Oil, Natural Gas, Gasoline etc
Precious Metals……………….. Gold, Silver, Platinum etc
Other Metals…………………… Nickel, Aluminum, Copper etc
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Structure of the commodity market:
Rolling settlement system:
Under rolling settlement system, the settlement takes place n days (usually 1,2
,3 or 5days) after the trading day. The shares bought and sold are paid in for n days after
the trading day of the particular transaction. Share settlement is likely to be completed
much sooner after the transaction than under the fixed settlement system.
The rolling settlement system is noted by T+N i.e. the settlement period is n
days after the trading day. A rolling period which offers a large number of days negate
the advantages of the system. Generally longer settlement periods are shortened
gradually.
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SEBI made RS compulsory for trading in 10 securities selected on the basis of
the criteria that they were in compulsory demats list and had daily turnover of about Re.1
crore or more. Then it was extended to “A” stocks in Modified Carry Forward Scheme,
Automated Lending and Borrowing Mechanism (ALBM) and Borrowing and lending
Securities Scheme (BELSS) with effect from Dec 31, 2001.
SEBI has introduced T+5 rolling settlement in equity market from July 2001
and subsequently shortened the cycle to T+3 from April 2002. After the T+3 rolling
settlement experience it was further reduced to T+2 to reduce the risk in the market and
to protect the interest of the investors from 1st April 2003.
Activities on T+1:
Conformation of the institutional trades by the custodian is sent to the stock
exchange by 11.00 am. A provision of an exception window would be available for late
confirmation. The time limit and the additional changes for the exception window is
dedicated by the exchange.
The exchanges/clearing house/ clearing corporation would process and
download the obligation files to the broker’s terminals late by 1.30 pm on T+1.
Depository participants accept the instructions for pay in securities by investors in
physical form up to 4 pm and in electronic form up to 6 p.m. the depositories accept from
other DPs till 8p.m for same day processing.
T+2 activities:
The depository permits the download of the paying in files of securities and
funds till 10.30 am on T+2 from the brokers’ pool accounts. The depository processes the
pay in requests and transfers the consolidated pay in files to clearing House/clearing
Corporation by 11.00am/on T+2. The exchange/clearing house/clearing corporation
executes the pay-out of securities and funds latest by 1.30 pm on T+2 to the depositories
and clearing banks. In the demat mode net basis settlement is allowed. The buy and sale
positions in the same scrip can be settled and net quantity has to be settled.
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At the end of each trading day, concluded or locked-in trades are received
from NSE by NSCCL. NSCCL determines the cumulative obligations of each member
and electronically transfers the data to Clearing Members (CMs). All trades concluded
during a particular trading period are settled together.
FUNDS SETTLEMENT
Currently, NSCCL offers settlement of funds through 13 clearing banks namely
Canara Bank
HDFC Bank
Indusind Bank
ICICI Bank
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Bank of India
UTI Bank
IDBI Bank
Standard Chartered Bank
HSBC Ltd
Kotak Mahindra Bank
SBI
Union Bank of India
Citibank
Funds pay-in obligation is required to have clear funds in his a/c on or before
11.00 a.m. on the scheduled pay-in day. The payout of funds is cr. to the clearing
account of the members on or after 1.30 p.m. on the scheduled payout day.
Clearing Account:
The clearing account is to be used exclusively for clearing operations i.e., for
settling funds and other obligations to the Clearing Corporation including payments of
Margins and penal charges. Clearing Members are required to authorize the Clearing
Bank to access their clearing account for debiting and crediting their accounts, reporting
of balances and other information as may be required by NSCCL from time to time as per
the specified format.
Safety of Transaction on the Internet:
The safety of transaction on the internet depends on encryption system
used. The better the transaction system , the more difficult it is for any person to Hack
the site .Internationally ,the best system available today ,it is the 128-Bit Encryption ,
a system, which even the pentagon uses. Since in the online business, the order
placed have pass through the network of public carriers, there exists a risk of data
being intercepted or modified by a hacker or anyone with malicious intentions.
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According to industry experts , in future when the quantum of funds
Manage by the online brokers reach significant levels a security related issues Would
take the center stage .However, most of the domestic player use some kind of securities
features to enable safe transaction on the net .Encryption , build on the Secured
socked layer (SSL) protocol developed by Netscape ,provides sufficient amount of
security to the customers. Although , a majority of players offer 40-Bits Encryption
method , ICICI and investment have already graduated to 128-Bit Encryption
technology .Though the data transmitted in the form of plain text is Quite vulnerable ,
encrypted data has a much better level of protection.
It is true that pricing is still the unique selling proposition at the moment,
But security could be the trump card for tomorrow. security and trust are the two
important parameters,which will be crucial in determining a clients long term
Relation with the broker.
Mr. Anup Bagchi.COO at ICICI Direct, “Brokerages are practically a non-
issue, going by the US experience. What matters more are things like trust and security
especially because the service involves dealing with people’s cash as well as stocks”.
The customer is also responsible for ensuring safety of online transactions. He
normally gets a secured user ID and password ,the secrecy of which is to be maintained
entirely by him. If the transaction system requires no manual intervention, it becomes
safer. Among the Indian sites, ICICI Direct. Com , Investsmart India Ltd., Sharekhan,
Indiabulls.com are among the few fully integrated online trading sites. It enables The
elimination of the possibility of any manual intervention.Thus,orders can be directly sent
to the exchange, ensuring that the investor gets the best and right Price.
Advantages of Online Trading:
Many customers, who have chosen to trade shares online today , had at one
Point of time been trading through offline brokers .After realizing the advantages of
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trading shares online, they have switched over to online trading now. However,
before choosing an online trading site ,all the sites should be compared in order to
form a decision.
Online trading has made it possible for anyone to have easy and efficient access to
more reports and charts than it was previously possible if one when to brokers
office .Thus, we have access to a lot more information online to self teach
ourselves.
It eliminates the risk of bad deliveries, which in turn eliminates all costs and
wastage of time associated with follow up for rectification.
This reduction in risk associated with bad delivery has lead to reduction in
Brokerage to the extent of 0.5% by quite a few brokerage firms.
Screen-based trading facilitates the investor to keep a track of the transaction from the
source to the end .He can punch in the orders and see the results at the bottom of the
screen .Thus, one can get instant trade confirmation.
Online trading has left room for smaller organizations to compete with
Multinational organizations ,since is no longer a legit issue. Being online does not
identify the size of any particular organization.
Online trading has allowed companies to locate themselves were they want, as
physical location is not an issue anymore. Companies can establish themselves
according to their gains and losses, for instance, where tax (sales and value-added
taxes) is best suited to them.
Online trading gives control to individuals and the can exercise it over their
accounts thus comprehend what is going on the trade. It is like going back to school
and re-educating oneself on how to trade online.
Individuals benefit by saving comparatively a lot more when trading online as the
cost per trade is less.
Individuals can invest in a variety of products, unlike earlier when people bought
bonds, mutual funds, and stocks for long-term basis. Now they can invest in stocks,
and index options, mutual funds, individuals, government, Corporate, municipal
bonds, various types of IRA account, mortgages and even insurance.
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Online trading has it possible for one to find investment options that were
not available on a regular basis, like off-beat net stocks ,eccentric unique things and
trading in global market. only to enquire about the prices of various scripts, Internet
trading connects the stock exchanges directly of the investor ,who should make sure
that the online trading site ,he selects provides him the trading screen ,which uses the
“push technology” to display prices. Using the push technology the trading screen
display the real time prices of 10 to 15 script s at a glance, unlike pull technology
where in one needs to type the quote every time one needs the price.
Internet has made it possible for broking firms to transmit key market information
to all clients at one go. Market watch screen gives live ticks update on the desktop
,where by the investor can set a number of scripts of his choice, which will keep
ticking through streaming quotes without manual intervention .
Clients find it easier and convenient to interact with their broker in a web-enable
environment. In the past there were instances of brokers misleading the information
given to them by their clients , because of communication lags. This led in effect
ruined several investors. The internet ensures speedy and correct flow of information
between all users.
Online trading sites provide professional advice to investors. Many investors are not
knowledgeable about the stock markets and need advice about their investment
decisions.
Disadvantages of Online Trading:
The ease and speed of online trading can give the investor a false sense of
security and encourage him to trade more frequently without paying any heed to
market basics like, researching a company or knowing the risk he is going to assume.
The concept of chat rooms, which has become very popular with the investors, may
provide them with misleading information. Chat room participants are often paid to
high light certain stocks.
Online trading is not always instantaneous. In a rapidly changing market, orders may
not get executed at the price on the computer screen .This is because even a nano
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seconds delay can put one out of the race for that particular stock at that
particular price.
Delays in execution usually arise due to various technological ‘ choke -points’
like the internet slowing down to heavy traffic or if the modems , computer or
internet service provider (ISP) is mal functioning .If the investor dose not
factor in these technological lags while entering into a volatile market ,he may
suffer heavy losses.
The investor should familiarize himself with order entry screen and the
software provided to him. Any mistake made while inputting an order can cause him
significant financial loss. Moreover, he will be responsible for any losses caused by
lack of knowledge and/or experience .when an order is placed and executed, he
becomes liable for payment of the securities.
Active trading is dependent upon a number of specialized software systems.
Disruptions or failure of any electronic systems utilized may lead the investor with an
open position at which time losses can occur.
Customers trading on-line may have difficulty accessing their account due to high
internet traffic or because of systems capacity limitations .Customers trading through
representatives of on- line firms ,when on-line trading has been disabled or in not
available because of system limitation, may have difficulty reaching account
representatives on the telephone during periods of high volume.
Trouble Shooting:
1. From the Investor’s points of view:
To prevent any technological choke point , the investor can place a limit
order an not a market order when entering a volatile market. A limit order gets
executed only at a specific price. The is a, buy limit order can only be executed at the
limit price or lower, and a sell limit order can only be executed at the limit price or
higher .By entering a limit order rather than a market order, he will not be caught
buying a stock a price he hadn’t planned for due to the problems faced with
bandwidth.
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Security is the key requirement for the investors protection. It is absolutely
essential to protect the user identification and password. He must also protect against
computer entry by some one other than himself after initializing his system .The system
should not be left unattended and must be properly shut down when he is not actively
using it.
The investor is responsible for all trades entered under his user identification
and password. For his protection, frequent changing of password is recommended. It
is very important that he reconciles his account on a daily basis
2. From the brokers point of view:
In the absence of any direct interface the organization and the clients ,
online share trading firms should maintain seamless communication with their clients .
But, this is not always the case. Customers orders can be slowed down for reasons
outside of the firms control. But explaining clearly to customers rather than merely
disclaiming liability through complex and legalistic language would go a long way
towards shorting up the customers confidence in the firm.
INTERNET TRADING AND ONLINE INVESTING:
INTERNET FRAUD:
How to Avoid Investment Scams:
The serves as an excellent tool for investors, allowing them to easily and
inexpensively research investment opportunities. But the internet is also an excellent
tool for fraudsters. That’s why you should always think twice before you invest your
money in any opportunity you learn about through the internet.
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This alert tells you hoe to spot different types of internet fraud, what the SEC
is doing to
fight internet investment scams, and how to use the internet to invest wisely.
Navigating the Frontier: where the frauds are
The internet allows individuals or companies to communicate with a large
audience without spending a lot of time, effort, or money. Anyone can reach ,ten
thousands of people by building an internet website, posting a message on an online
bulletin board, entering a discussion in a live “chat” room, or send help investors gather
valuable information, some online newsletters are tools for fraud.
Some companies pay the people who write online newsletters cash or securities
to “tout” or recommend their stocks .While this isn’t illegal, the federal securities laws
require the newsletters to disclose who paid them, the amount and the type of payment.
But many fraudsters fail to do so.
Instead, they will lie about the payments they received, their fraudsters fail to do so.
Instead, they will lie about the payments they received, their independence,
their so-called research and their track records. Their newsletters masquerade as
sources of unbiased information, when in fact they stand to profit handsomely if they
convince investors to buy or sell particular stocks.
Some online newsletters falsely claim to independently research the stocks
they profile. others spread false information or promote worthless stocks. The most
notorious sometime “scalp” the stocks they type, driving up the price of the stock with
their baseless recommendations and then selling their own holding at high prices and
high profits. To learn how to separate the good from the bad, read our tips for checking
out newsletters.
E-mail Spams:
Because “spam”-junk e-mail- is so cheap and easy to create, fraudsters
increasingly use it to find investors for bogus investment schemes or to spread false
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information about a company. Spam allows the unscrupulous to target many more
potential investors than cold calling or mass mailing. Using a bulk e-mail program,
spammers can send personalized messages to thousands and even millions of internet
users at a time.
How to Use the Internet Wisely
If you want to invest wisely and steer clear of frauds, you must get the facts.
Never ever, make an investment based solely on what you read in an online
newsletter or bulletin board posting, especially if the investment involves a small,
thinly-traded company that isn’t will known and even think about investing on your
own in small companies that don’t file regular reports with the SEC,Unless you are
willing to investigate each company thoroughly and to check the truth of every
statement about the company .For instance, you’ll need to:
Get financial statements from the company and be able to analyze them.
Verify the claims about new product development or lucrative contracts.
Call every supplier or customer of the company and ask if they really do business
with the company.
Check out the people running the company and find out if they have ever made
money for investors before and it doesn’t stop there.
ONLINE INVESTMENT FRAUD:
New Medium, same old scam:
The types of investment fraud seen online mirror the frauds perpetrated over
the phone or through the mail. Remember that fraudsters can use a variety of
internet tools to spread false information, including bulletin boards, online newsletters,
spam, or chat including internet relay chat or web page chat. They can also build a glitzy,
sophisticated web page. All of these tools cost very little money and can be found at
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the fingertips of fraudsters. Consider all offers with skepticism. Investment frauds
usually fit one of the following categories:
The “pump and Dump” Scam
It’s common to see messages posted online that urge readers to buy a stock
quickly or tell you to sell before the prices goes down. Often the writers will claim to
have “inside” information about an impending development or to use an “infallible”
combination of economic and stock market data to pick stocks. In reality, they may be
insiders or paid promoters who stand to gain by selling their shares after the stock
price is pumped up by gullible investors. Once these fraudsters sell their shares and stop
hyping the stock, the price typically falls and investors lose their money.
Fraudsters frequently use this plan with small, thinly traded companies because it’s
easier to manipulate a stock when there’s little or no information available about the
company.
The Pyramid
Be wary of messages that read .”How To Make Big Money From Your Home
Computer!!!” One online promoter claimed that investors could “turn 45 into$60000 in
just three to six weeks, in reality, this program was nothing more than a products toted
do not even exist-they are merely scams, be wary of opportunities that promise
spectacular profits or “guaranteed” returns. If the deal sounds too good to be true, then it
is probable.
Off-Shore Frauds
At one time, off-shore schemes targeting U.S. investors cost a great deal of
money and were difficult to carry out. Conflicting time zones, differing currencies and
the high costs of international telephone calls and overnight mailings made it difficult for
fraudsters to prey on U.S. residents. But the internet has removed those obstacles. Be
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extra careful when considering any investment opportunity that comes from another
country, because it’s difficult for U.S. law enforcement agencies to investigate and
prosecute foreign frauds.
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DATA ANALYSIS & INTERPRETATION
1.Awareness of online trading
PARTICULARS INVESTORS RESPONSE
Yes 90
No 10
TOTAL 100
Graph 1:
INTERPRETATION:
From the above graph we can say that 90% of the people are aware of online trading and
10% of them are not aware of it.
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2.Participation in the share market
PARTICULARS INVESTORS RESPONSE
Yes 63
No 37
TOTAL 100
Graph 2:
INTERPRETATION:
From the above graph we can say that 63% people actively participate in share market
and 37% of do not participate.
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3. Which Online investors of various categories
PARTICULARS INVESTORS RESPONSE
Uncertain newcomer 33
Moderate active trader 27
Active day trader 27
Hands in every pot 13
TOTAL 100
Graph 3:
INTERPRETATION:
The above graph depicts that 33% of them are uncertain newcomer, 27% of them belong
to moderate active trader category and active day trader and 13% of them belongs to hand
in every pot category.
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4.Demat Account Customers
PARTICULARS INVESTORS RESPONSE
Yes 67
No 33
TOTAL 100
Graph .4:
INTERPRETATION:
From the above graph we can say that 67% of the investors have Demat account and 33%
of them doesn’t have Demat account.
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5.The depository you take into consideration for accessing Demat
account
PARTICULARS INVESTORS RESPONSE
NSDL 77
CDSL 23
TOTAL 100
Graph 5:
INTERPRETATION:
From the above graph we can say that 77%of the people are in favour of NSDL
depository and 23% are in favour of CDSL depository.
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6.Favour of Demat Account
PARTICULARS INVESTORS RESPONSE
Yes 77
No 23
TOTAL 100
Graph 6:
INTERPRETATION:
From the above graph we can say that 77% of the people are in favour of demat account
and 23% of them are not in favour of it.
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7.Most Preferable Attribute While Investing
PARTICULARS INVESTORS RESPONSE
Rate of return 40
Liquidity 43
Convenience 7
Regulation 10
TOTAL 100
Graph 7:
INTERPRETATION:
From the above graph we can say that Liquidity (43%) is most preferable among all the
attributes.
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8.Awareness on the Nature of risk involved in online Trading
PARTICULARS INVESTORS RESPONSE
Yes 83
No 17
TOTAL 100
Graph 8:
INTERPRETATION:
From the above graph we can say that (83%)majority of the people are aware of risk
involved in online trading.
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9.Brokers Activities Involved in Online Trading
PARTICULARS INVESTORS RESPONSE
Yes 50
No 50
TOTAL 100
Graph 9:
INTERPRETATION:
From the above graph we can say that 50% of the investors check brokers activities and
50% do not check.
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10.The System do you feel more Convenient in Trading
PARTICULARS INVESTORS RESPONSE
Yes 20
No 80
TOTAL 100
Graph 10:
INTERPRETATION:
From the above graph we can say that 80% of the people are in favour of screen based
trading and 20% of them in favour of outcry system.
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11.Security in Online Trading
PARTICULARS INVESTORS RESPONSE
Yes 85
No 15
TOTAL 100
Graph 11:
INTERPRETATION:
The 85 %people believe that online trading is secure. This shows that the online trading
has taken a good place in the minds of Indian stock traders and the Indian consumer or
investor is moving towards online trading faithfully.
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12.Importance of Security Factor for Online Trading
PARTICULARS INVESTORS RESPONSE
Strongly Agree 40
Agree 22
Neither agree nor disagree 5
Disagree 23
Strongly disagree 10
TOTAL 100
Graph 12:
INTERPRETATION:
Majority of the people agree that they consider security as an important factor when
they go for online trading, while 23% respondents disagree with this fact. Five people
have neutral opinion.
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13.Investors Interest to Trade Online
PARTICULARS INVESTORS RESPONSE
Equity 55
Portfolio Management 5
Commodities 18
Future and options 12
TOTAL 100
Graph 13:
INTERPRETATION:
Maximum number of people prefers to trade in equity online. The second preference is to
trade in Portfolio management which is about 15%. 18 deal in Commodities and 12%
deal in future and options.
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14.Role of Online Trading In Growth And Development Of Indian
Stock Market
PARTICULARS INVESTORS RESPONSE
Yes 86
No 14
TOTAL 100
Graph 14:
INTERPRETATION:
About 86% people responded that online trading has helped the growth and development
of Indian stock market and 14% people disagree with this fact.
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15.Investors Preferable Methods
PARTICULARS INVESTORS RESPONSE
Online 62
Offline 25
Both 13
TOTAL 100
Graph 15:
INTERPRETATION:
More than half number of people prefer online trading, 23% people prefer offline trading
while 13% people prefer both online and offline.
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16.Online Trading is Easy and Fast Way of Trading
PARTICULARS INVESTORS RESPONSE
Yes 92
No 8
TOTAL 100
Graph 16:
INTERPRETATION:
92% people say that online trading is easy and fast way of trading while 8% people say it
is not easy and fast way of trading.
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17.Introduction of Online Trading has Helped in Attracting the New
Investors
PARTICULARS INVESTORS RESPONSE
Yes 92
No 8
TOTAL 100
Graph 17:
INTERPRETATION:
About 78% people feel that online trading has helped in attracting the new investors
while 22% people believe that it does not attract new investor.
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18.Agree with the Extended Timings of Trading Hours
PARTICULARS INVESTORS RESPONSE
Yes 37
No 63
TOTAL 100
Graph 18:
INTERPRETATION:
Only 37% people are satisfied with extended trading hours and majority of people i.e.,
63% are not happy with the extended hours of trading.
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19.Awareness about Equities Market
PARTICULARS INVESTORS RESPONSE
Yes 92
No 8
TOTAL 100
Graph 19:
INTERPRETATION:
From the above graph we can say that 45% of the people are in favour of demat account
and 5% of them are not in favor of it.
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FINDINGS:
1. Online trading is more powerful & advantageous than manual trading.
2. The software or the systems used in online trading should be advanced and the persons
who operate should have minimum knowledge.
3. Tips are available for trading online and invest wisely. So that the investor can avoid
the fraud.
4. It should increase the speed of executing the orders.
5. Due to invention of online trading here has been greater benefit to the investors as they
could buy/sell shares as and when required.
6. It has to take necessary steps to attract the customers through the Internet.
7. Instant bank account should be provided as the other companies are providing.
8. It should have separate department for portfolio management.
9. Most of the investors like to trade along with brokers.
10. Online makes direct contact between the investors and it avoids the presence of
middleman.
11. Online trading reduces the trade time.
12. Majority of the people consider security as an important factor for online trading,
while 33 respondents disagree with this fact. Five people have neutral opinion.
13. Maximum amount of people prefer to trade in Equity online.
14. The second preference is to trade in Portfolio Management. About 18 deals in
Commodities and 12 deal in Future and Options.
15. About 86 people responded that online trading has helped the growth and
development of Indian stock market and also helps in attracting new investors.
16. Out of 100 respondents, 62 people prefer online trading, 23 prefer offline trading
while 13 people prefer both online and offline.
17. Majority of people say online trading is easy and fast way of trading while a meager
number of people say it is not easy and fast way of trading.
18. Only 37 people are satisfied with extended trading hours and majority of people
i.e., 63 are not happy with the extended hours of trading.
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SUGGESTIONS:
The suggestion to exchange authorities is to take steps to educate investors about
their rights and obligation, try to increase investor’s confidence.
I suggest the exchange authorities to be vigilant to curb wide fluctuations of
prices on the exchanges in the prices ,not attracting to the genuine investors to the
greater extents towards the market .
Try to explain them how fraud will take place so that they will be alert and they
can take necessary steps to avoid the frauds.
Genuine investors are not at all interested in the speculative gain as their
investment is based on the future profits, therefore the authorities of exchange
should be more vigilant in imposing heavy margin to curb the speculative of
securities.
The companies should come up with more and more innovative features in their
web portals.
The customer should be educated regularly regarding the new technologies and
of online trading and also other relevant information
The companies should make efforts to promote online trading and create
awareness about its benefits.
The companies should look after to develop more safe and secure ways of
transacting business online.
The companies should make maximum efforts to detect fraud cases and minimize
them.
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CONCLUSION:
Due to changes in technology NET WORTH STOCK BROKING LTD has
changed its trading activities into online trading system. So that transactions will be
performed efficiently. Things have changed for the better with the NET WORTH
STOCK BROKING LTD going online coupled with endeavors to stream line the whole
trading system, thing have changed dramatically over the last 3-4 years. New and
advanced technologies have breached geographical and cultural barriers and have
brought the country wide market to doorstep.
In the present scenario and to compete the RSE’s would require sound
infrastructure and
trading as per international standards . The concept of business have changed and today
it has become service to clients or to provide the best possible service to clients or to
engage into new business practices in the other exchanges of the world .
In order to stem the flow of business from the regional center to the metro
centers and to impart liquidity introductions of online trading is necessary .i.e demand
of the day presently. Tips are available for trading online and to invest wisely, so that the
investors can avoid the frauds.
The introductions of online trading would influence in the investors
resulting in an increase in the business of the exchange. It has helped the brokers
handling a vast amount of transactions and this can be achieved through delivering
and settlement system with adequate protections to investors system. The trading of NET
WORTH STOCK BROKING LTD on the first day was Rs 1.8 crores .
Due to invention of online trading there has been greater benefit to the
investors as they could sell /buy shares as and when required and that to with online
trading will inspire confidence in investors resulting in increase in business of exchange.
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QUESTIONNAIRE:
1. Are you aware of online trading?
(a) Yes (b) No
2. Do you actively participate in the share market?
(a) Yes (b) No
3. Which online investor category you belong to?
(a)Uncertain newcomer (b) Moderate active trader
(c)Active day trader (d) Hand in every pot
4. Do you have a Demat account?
(a)Yes (b)No
5. Which depository do you take into consideration for accessing Demat account?
(a)National Securities Depository Limited (NSDL)
(b)Central Depository Services Limited (CDSL)
6. Are you in favour of Demat account?
(a)Yes (b) No
7. Which is the most preferable attribute while investing? Comment…
(a) Rate of return (b) Liquidity
(c) Convenience (d) Regulation
8. Are you aware the nature of risk involved in online trading?
(a) Yes (b) No
9. Do you check brokers activity involved in online trading?
(a) Yes (b) No
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10. Which system do you feel more convenient in trading?
(a) Outcry system (b) Screen based system
11. Do you feel online trading is secure?
(a) Yes (b) No
12 Is security an important factor for online trading?
(a) Strongly Agree (b) Agree (c) Neither Agree nor Disagree
(d) Disagree (e) Strongly Disagree
13. In which of the following do you trade online
(a) Equity (b) Portfolio Management
(c) Commodities (d) Future and Options
14. Do you think online trading has helped the growth and development of Indian stock
market?
(a) Yes (b) No
15. Which of the following methods do you prefer?
(a) Online (b) Offline (c) Both
16. Do you think online trading is easy and fast way of trading?
(a) Yes (b) No
17. Do you think introduction of Online Trading has helped in attracting the new
investors thus increasing the trading volumes at stock market?
(a) Yes (b) No
18. Do you agree with the extended timings of trading hours?
(a) Yes (b) No
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19. Do you know about Equities market?
(a)Yes (b) No
BIBILIOGRAPHY
Reference Books:
Investment Analysis and Portfolio Management - Prasanna Chandra
Financial Management –Khan and Jain
Websites:
www.jrg.in
www.nseindia.com
www.bseindia.com
www.siainvestor.com
www.indiainfoline.com
www.stcionline.com
www.sharekhan.com
www.capitalideasonline.com
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