ACKNOWLEDGEMENT

1

Project Report submitted to

Angel Broking

in partial fulfillment, for the award of the Degree ofMASTER OF BUSINESS ADMINISTRATION

By Sam Higginbottom Institute of Agriculture, Sciences and

TechnologiesAllahabad, Uttar Pradesh- 221007

SUBMITTED BY:Virendra Kumar (09MBA056)

OPENNNIG OF DMANT ACCOUNTS AND

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

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

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

I take this opportunity to express my sincere thanks to my advisor Mr. Manish Tirkey. Joseph school of business studies, San Higginbottom Institute of Agriculture, Technology And Science, Allahabad whose able guidance impetus behind my effort from very conception to the end this work.

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

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

I am indebted to Mr. Narendra Singh, (Asst.unit Manager) our coordinator who gave me valuable time and shared with me his views and ideas now and again on the research topic during the course of the study.

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

I acknowledge profusely the contribution of Mr. Sheraz (Risk management) who helped me in carrying out the study.

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

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

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

2

Table of Contents

Chapter No. Contents Page NoList of TablesList of FiguresAbbreviations

I IntroductionCompany ProfileProduct ProfileNeed and Scope of the StudyObjectives of the StudyLimitation of the Study

II Research MethodologyResearch DesignResearch ToolsArea of workStatistical tools used for analysis

IIIResult and Discussion

IVRecommendation

VConclusions

3

ABBREVIATIONS

NSE- National Stock Exchange of India Ltd. BSE-Bombay stock Exchange of India Ltd. SEBI-Securities Exchange Board of India NCFM-NSE’s Certification in Financial Markets NSDL-National Securities Depository Limited CSDL-Central Securities Depository Limited NCDEX-National Commodity and Derivatives Exchange Ltd. NSCCL-National Securities Clearing Corporation Ltd. FMC-Forward Markets Commission NYSE-New York Stock Exchange AMEX-American Stock Exchange OTC-Over-the-Counter Market LM-Lead Manager IPO-Initial Public Offer DP-Depository participant DRF-Demat Request Form RRF-Remat Request Form NAV-Net Asset Value EPS-Earnings Per Share DSCR-Debt Service Coverage Ratio S&P-Standard & Poor IISL-India Index Services & Products Ltd CRISIL-Credit Rating Information Services of India Limited CARE-Credit Analysis & Research Limited ICRA-Investment Information and Credit Rating Agency of India IGC-Investor Grievance Cell

IPF-Investor Protection Fund

4

INTRODUCTION

In a shot span of 22 years since inception, the Angel Group has emerged as one of the top

three retail stock broking houses in India, having membership of BSE, NSE and the two

leading Commodity Exchanges in the country i.e. NCDEX & MCX. Angel Broking is

also registered as a Depository Participant with CDSL.

The group is promoted by Mr. Dinesh Thakkar, who started this business as a sub-broker

in 1987 with a team of 3. Today the angel group is managed by a team of 1937 direct

employees and has a nation wide network comprising of 31+ Regional hubs, 150+

branches and 9000+ sub brokers & business associates. Angel is 100% focused on retail

stock broking business unlike any other larger national broking house. The group

currently services more than 730000+retail clients.

Angel habitually generates value added features without the cost burden being passed on

to the clients as they strongly believe that better understanding of client’s needs and

wants is their top priority. Their e-broking facility is one such effort, which gives the

client a platform to access state of the art trading facility at the click of a button.

Angel has always strived for delivering customer delight and developing strong long term

bonds with its clients as well as channel partners. Angel thrives on a vision to introduce

new and innovative products and services constantly. Moreover, Angel has been among

the pioneers to introduce the latest technological innovations and integrate them

efficiently within its business.

The mainline Business Activities of Angel are:

Stock Broking

Derivatives Trading

Online Trading

Wholesale debt market operations

Depository services with CDSL

Fundamental Research Services

Technical Research Services

IPO Distribution and Advisory

Mutual Fund Distribution and Advisory

Commodities Trading

5

COMPANY’S PROFILE

NAME OF THE COMPANY: ANGEL STOCK BROKING LTD.

REGISTERED OFFICE: G-1, Akruti Trade Centre,

Road No. 7, MIDC Marol,

Andheri (E),

Mumbai – 400 093

BRANCH OFFICE: ANGEL STOCK BROKING LTD.

G-5, LDA Centre-2,

Sardar Patel Marg, Civil Lines,

Allahabad-211001

FORM OF ORGANISATION: Private Sector

PROMOTER: Mr. Dinesh Thakkar

ACCOUNTING YEAR: 1ST April to 31st March

6

Source: ppt. of Angel broking

7

MANAGEMENT TEAM

Chairman and Managing Director : Mr. Dinesh Thakkar

Chief Investment Officer : Mr. Rajen Shah

Senior Research Analyst : Mr. Phani Sekhar

Table 1

ANGEL GROUP COMPANIES

  Angel Broking Ltd.   Member on the BSE Depository Participant with CDSL

  Angel Capital & Debt Market Ltd.

  Membership on the NSE Cash and Futures & Options Segment

  Angel Commodities Broking Ltd.

  Member on the NCDEX & MCX

  Angel Securities Ltd.   Member on the BSE

  Angel Infin Pvt. Ltd.   NBFC registered with RBI

  Mimansa Systems Pvt. Ltd.   For Software Development(Source : www.harmony.angeltrade.com)

REGIONAL OFFICES

Ahmedabad

Bengaluru

Chennai

Cochin

Coimbatore

Hyderabad

Indore

Jaipur

Kanpur

Kolkata

Lucknow

Ludhiana

Mumbai

Nagpur

8

Nashik

New Delhi

Pune

Rajkot

Surat

Visakhapatnam

The Unique Features of Angel :

Instant Online Fund Transfer with Multiple Banks

BSE, NSE, F & O, MCX and NCDEX in a single screen

Efficient uptime and greater stability for high speed

Customized solutions as per client’s requirements

Personalized Advisory services for HNI clients

Call and Trade at 150+ branches across the country

State of the art Technology and Infrastructure

DP with CDSL with automated pay-in facility

Instant Online technical support for clients

ANGEL’S VISION

Source: www.angelbroking.com

9

ANGEL’S BUSINESS PHILOSOPHY

Source: www.angelbroking.com

INVESTMENT PHILOSOPHY

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

investment approach backed by quality research.”

Angel’s investment philosophy is based on two key attributes:

1. Wealth Creation:

The creation of Wealth can be categorized as:

Having money work for client

Having others work for client

Client Working for Money

2. Wealth Preservation :

As wealth grows, focus is shifted to striking a balance between asset creation and

preservation. Wealth preservation applies to day-to-day financial life which includes

managing cash flow and overall risk management.

OBJECTIVE OF ANGEL INVESTMENT PHILOSOPHY

10

Angel’s objective at all time is to protect and then grow client’s portfolio.

The primary aim is to avoid the thoughts of the declining market and not necessarily out-

perform the rapidly rising market but to consolidate both the periods, which would result

in out-performing the market along with wealth creation.

Angel’s investment philosophy is outlined by in-depth focus on a disciplined long term

investment approach in potential multi-baggers.

The 3 important tenets that we look for in any stock are:

Consistent, steady & sustainable returns

Margin of safety

Low volatility

PRODUCT AND SERVICE

EQUITY-NSE/BSE/NSE FNO/BSE FNOCOMMODITY-MCX/NCDEXCURRENCY TRADINGIPO ADVISORYPORTFOLIO MANAGEMENT SERVICESDEPOSITORY SERVICESTHIRD PARTY PRODUCT AS MF/INSURANCEINVESTMENT ADVISORYNRI SERVICES

E-Broking Products

Angel Investor Angel Trade Angel Diet

Browser Based Browser Based Application Based

Static rates; works behind

most firewalls

Streaming quotes Streaming quotes

4 exchanges in single screen 4 exchanges in single screen 4 exchanges in single screen

Investors (Delivery based

clients)

Investors and Traders Traders

PREAPID BROKERAGE

ATTRACTIVE FOR ALL GROUP OF CLIENTS

11

SPECIAL BROKERAGE RATEOTHER BENEFITSNO MINIMUM BROKERAGE WILL BE CHARGED

Portfolio Management Services ( PMS )

ANGEL OYSTERANGEL BLUCHIPANGEL GROWTHANGEL LOTUSANGEL GOLD

ANGEL USP

Top 3 best broking firm in IndiaAward by dun & Bradstreet for largest distribution network in 2009Covet major volume driver award in best from 2004-05 to 2008-09No 1 position in terms of trading terminalsIfc stake 12.35% in angel broking ltd Personalize services24*7 web-enabled back officesRetail centric researchTransparencyCustomized servicesFour free e-broking softwareFree e-chopda softwareQuality assuranceAuto pay in facilityPay-out of fund facility from 18 banksAuto pay in-facility in case share sold from demat (poa)Minimum charges –lowest transaction charges in the countryOne stop shop for all financial requirementInterest on debit from t+4 daysM-connect facilityShare kept in pool account can be used as margin trading700000+client based and 9000+channel partnerOne to one communication between client and relationship managersEffective investment advice and research reports for clientsDaily calls before market hoursInstant query resolution

12

ANGEL DEMAT ACCOUNT

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

Procedure1. Fill demat request from (DRF) (obtained from a depository participant or DP

with whom your depository account is opened).2. Deface the share certificate(s) you want to dematerialize by writing across

Surrendered for dematerialization. 3. Submit the DRF & Share certificate(s) to DP. DP would forward them to the

issuer / their R&T Agent.4. After dematerialization, your depository account with your DP would be

credited with the dematerialized securities.

13

14

15

16

17

18

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

CLEARING CORPORATION

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

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

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

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

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

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

19

Auction

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

Demat Demat is an abbreviation of Dematerialization.

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

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

BTSTBuy today Sell tomorrow.

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

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

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

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

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

20

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

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

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

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

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

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

DP AMC & Transaction Charges

Charges S C H E M E S

H.N.I./Traders Investors

Annual Membership Charges Rs.700/- Rs. 300/-

Deliveries/Debit (Market & Off Market) Within Angel DP Outside Angel DP

(Charges are inclusive of CDSL tariff) Rs. 11/- txnRs. 16/-txn

Rs. 11/- txnRs. 21/- txn

21

INDUSTRY DETAIL

THE HISTORY OF THE INDIAN CAPITAL MARKET

The history of Indian capital market back to the 18 th century when east India company

securities were traded in the country. Until the end of the 19th century, Securities trading

were unorganized and the main trading centers were Bombay and Calcutta. Of the to

Bombay was the chief trading centre were in bank shares were the major trading stock

Trading was at that time limited to a dozen brokers their trading place was under a

banyan tree in front of the Town hall Bombay. These stock brokers organized an informal

association in 1875- native shares and stock broker’s association Bombay. The stock

exchanges in Calcutta and ahemedabad also have trading centre came up later. The

Bombay stock exchange was recognized in may 1927 under the Bombay securities

contract control act 1925.

The capita market was not well organized and develops during the British rule because

the British government was not interested in the economic growth of the country. As a

result many foreign companies depended on the London capital market for funds rather

then on the Indian Capital Market.

In the post independence period also the size of the capital market remained small.

During the first and the second five year plan the government emphasis was on the

development of the agricultural sector and public sector under takings.

In the 1950s speculation became rampant; the stock market came to the known as satta

bazaar. Despite speculation non payment or defaults were not very frequent. The

government enacted the securities contracts act in 1956 to regulate stock markets. The

company’s act 1956 was also enacted.

22

In 1960 badla came in to existence. Badla provided a mechanism for carrying forward

positions as well as for borrowing funds. Financial institutions such as LIC and GIC

helped to revive the sentiment by emerging as the most important group investors. The

first Mutual Funds of India, The Unit Trust of India came into existence in 1964.

.

In the 1970s Badla Trading was resumed under the disguised form of “Hand delivery

contracts” this revived the market. July 6th, 1974 when the Government promulgated the

dividend restriction ordinance, restricting the payment of dividend by companies to 12 %

of the face value or 1/3 of the profits of the companies that can be distributed as

computed under section 369 of the companies act whichever was lower. This led to a

slump in market Capitalization at the BSE by about 20 % over night and the stock market

did not open for nearly a fortnight. A little known entrepreneur, Dhirubhai Ambani,

tapped the Capital Market. The scrip, Reliance Textiles is Still a Hot favorite trading at

all stock exchanges.

The 1980s witnessed an explosive growth of the securities market in India. The

government’s liberalization process, participation by small investors, speculation, default,

Ban of Badla, and resumption of Badla continued. Convertible debentures emerged as a

popular instrument in primary market.

The 1990s will go down as the most important decade in the history of capital market of

India liberalization and globalization were the new terms coined and marketed during this

decade. Major capital market scams took place in the 1990s.

The securities scam of March 1992 involving Brokers as well as Bankers was one of the

biggest scam in the history of capital market. In the subsequent years owing to free

pricing, many unscrupulous promoters, who raised money from capital market, proved to

be fly-by-night operators.

23

The 1991-92 the Indian stock market witnessed a sea change in terms of technology.

Technology brought Radical changes in the trading mechanism. The Bombay stock

exchange was subject to nation wide competition by two new stock exchange-National

Stock Exchange set up in 1994 and over the counter Exchange of India set up in 1992.

The National securities clearing corporation and National securities depository limited

were set up in April 1995 and November 1996 respectively for improved clearing and

settlement and dematerialized trading. Moreover, rolling settlement was introduced in

January 1998 for all companies.

The Indian capital market entered the 21st century with the Ketan Parekh scam. As a

result of the scam Badla discontinued from July 2001. Trading of futures commenced

from June 2000 and Internet trading was permitted in February 2000.

It has been a long journey for the Indian capital market. Now the capital market is

organized, fairly integrate, mature more global and modernized.

The primary function of the system is to provide a link between savings and investment

for the creation of new wealth and to permit portfolio adjustment in the composition of

the existing wealth.

Figure 1 : Concept of Financial System

INVESTMENT

CAPITAL FORMATIOON

ECONOMIC GROWTH

FINANCESAVINGS

24

The progress of savings, finance and investment involves financial institutions, markets

instruments, and services. Above all, supervision control and regulation are equally

significant. Thus financial management is in integer part of the financial system. On the

basis of the empirical evidence we can defined inter relationship between varied

segments of the economy are illustrated below:

Figure 2 : Financial System

A financial system provides services that are essential in a modern world. The use of a

stable, widely accepted medium of exchange reduces the costs of transaction. It facilitates

trade and, therefore specialization in production. Financial assets with attractive yield,

liquidity and risk characteristics encourage saving in financial form. By evaluating

alternative investments and monitoring the activities of borrowers, financial

intermediaries increase the efficiency of resource use. Access to a variety of financial

instruments enables an economic agent to pool, prize and exchange risk in the market.

Stock exchange is a market in which securities are bought and sold and it is an essential

component of a develop capital market. The securities contracts (regulation) act , 1956,

defines stock exchange as follows, “ it is an association, organization or body of

individuals, weather incorporated or not , established for the purpose of assisting,

regulating and controlling of business in buying, selling, and dealing in securities”. A

stock exchange, thus, imparting marketability and liquidity to securities, encourage

investments in securities and assist corporate growth stock exchange is regarded as “an

essential concomitant of the capitalist system of economy. It is indispensable for the

FINANCIAL

MARKET

FINANCIAL

INSTITUTION

FINANCIAL

INSTRUMENTS

FINANCIAL

SERVICES

25

FINANCIAL

SYSTEM

proper functioning of corporate enterprise. It brings together large amounts of capital

necessary for the economic progress of a country. It is the citadel of capital and the pivot

of money market. it provides necessary mobility to capital and directs the flaw of capital

into profitable and successful enterprises .it is the barometer of general economic

progress in a country and exerts a powerful and significant influence as a depressant or

stimulate of business activity I t may be defined as the place or market where securities of

joint stock companies and of government or semi government bodies are dealt in.”

STOCK EXCHANGES

India boasts of the oldest stock exchange in Asia -- the Bombay Stock Exchange is 125

years old. There are 23 recognised exchanges spread across the country, but a process of

consolidation is now under way. Many of the regional stock exchanges have started

aligning themselves with one or both of the two large exchanges (the Bombay Stock

Exchange and the National Stock Exchange) both of which have VSAT networks that

give them a nation wide reach.

The National Stock Exchange is an unlisted for-profit company set up by some of the

leading financial institutions of India. Most of the remaining stock exchanges are broker-

owned (mutual) organisations, but the Bombay Stock Exchange is actively considering

demutualisation. The Securities and Exchange Board of India (SEBI), the apex regulator

of the capital market has regulations that mandate a minimum number of outside

directors on the governing board and provide greater autonomy to the professional

executives in the day-to-day running of the exchange.

Trading and settlement

India’s stock exchanges are fully computerised order driven or order-cum-quote driven

systems. The country has made rapid strides towards a dematerialised trading

environment on the basis of a competing depositories model. Investors have the choice of

holding their stocks in physical or dematerialised form, but trading in the exchanges is in

mandatory dematerialised mode in most important stocks. As of October 2000, about

98per cent of the trading in the stock exchanges is in dematerialised mode.

26

India has put in place a regulatory regime for internet trading of stocks. A large number

of online brokers have started operations. More brokers are expected to follow when the

exchanges put in place an ASP (Application Service Provider) model for online trading

software. However, currently, the level of penetration of online trading is extremely

small.

The stock exchanges currently run two parallel settlement systems. Practically all the

trading takes place in the account period settlement system in which all trades during a

weekly account period are netted off and the net obligations are settled five business days

after the end of the period. The other unpopular system is that of rolling settlements

where trades of each day are settled on a T+5 basis. SEBI is currently working on

mandatorily shifting all stocks in a phased manner to the rolling settlement system.

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

improvements in the payment system.

However, account period settlement does not give rise to significant systemic risks in

India because of stringent end of day and intra-day margining systems. Put simply, the

weekly settlement is regarded as akin to a one-week futures contract, and the systemic

risk is taken care of by using futures style margining. The exchange imposes daily mark

to market and initial margins on the brokers to eliminate settlement risk. Exchanges also

have clearing houses to guarantee settlements on the exchange. As a result, there have

been no settlement failures in the principal stock exchanges during the last five years

Table 2

Name Address

THE BOMBAY STOCK EXCHANGE

Phiroze Jeejeebhoy Towers,

Dalal Street,

Mumbai- 400 001.

The Ahmedabad Stock Exchange Association Ltd,.Manek Chowk,

Ahmedabad - 380 001

BANGALORE STOCK EXCHANGE LTD,. 'M' Block, First Floor,

27

Unity Building,

J.C. Road, Bangalore.

HUBANESHWAR STOCK EXCHANGE ASSN.,

LTD,.

217, Budhraja Building,

Jharpada Cuttack Road,

Bhubaneswar, Orissa - 751

006.

THE CULCUTTA STOCK EXCHANGE

ASSOCIATION LTD,.

7, Lyons Range,

Calcutta - 700 001.

COCHIN STOCK EXCHANGE LTD.,

Veekshanam Road

P.B. 3529, Ernakulam,

Cochi - 682 035.

THE DELHI STOCK EXCHANGE ASSN. LTD., 3&4/4B, Asaf Ali Road,

New Delhi 110 002.

THE GAUHATI STOCK EXCHANGE LTD,.

Saraf Building Annexe A.T.

Road,

Guwahati - 781 001.

THE HYDERABAD STOCK EXCHANGE LTD,. Bank Street,

Hyderabad - 500 001.

JAIPUR STOCK EXCHANGE LTD,.

Rajasthan Chamber Bhawan,

M.I. Road,

Jaipur - 302 003.

KANARA STOCK EXCHANGE LTD.

4th Floor,

Rambhavan Complex,

Kodialbail,

Mangalore - 575 003.

THE LUDHIANA STOCK EXCHANGE ASSN. Lajpat Rai Market,

28

LTD.Clock Tower,

Ludhiana 141 008.

MADRAS STOCK EXCHNAGE LTD.

'Exchange Building',

Post Box No.183,

11, Second Line Beach,

Chennai - 600 001

MADHYA PRADESH STOCK EXCHANGE LTD. 67, Bada Sarafa,

Indore - 452 002.

THE MAGADH STOCK EXCHANGE LTD.

Bihar Industries Assn.

Premises,

Sinha Library Road,

Patna - 800 001.

PUNE STOCK EXCHANGE LTD.

1177,Budhwar Peth,

Bank of Maharashtra Bldg.,

2nd Floor,

Bajirao Road,

Pune 411 002.

SAURASHTRA KUTCH STOCK EXCHANGE

LTD.,

POPAT BHAI

Rajkot - 380 002.

THE UTTAR PRADESH STOCK EXCHANGE

ASSN. LTD.

Padam Towers,

14/113,Civil Lines,

Kanpur - 208 001

VADODARA STOCK EXCHANGE LTD.

101, Paradise Complex,

Tilak Toad,

Sayaji Gunj,

Vadodara - 390 005.

29

COIMBATORE STOCK EXCHANGE

Chamber Tower,

8/732,Avvinashi Road,

Coimbatore 641 018.

MEERUT STOCK EXCHANGE LTD.

Kingsway Building,

345, Bombay Bazar,

Meerut Cantonment - 250

001.

OTC EXCHANGE OF INDIA.

Maker Towers "F" Cuffe

Parade,

Bombay - 400 005.

THE NATIONAL STOCK EXCHANGE OF

INDIA LTD.

Mahindra Towers,

A-Wing, RBC, Worli,

Mumbai 18

30

OVERVIEW ABOUT CENTRAL DEPOSITORY SERVICES (INDIA) LIMITED

(CDSL)

CDSL is the second depository set up by the Bombay Stock Exchange (BSE) in India. It

commenced its operations on March 22, 1999. It was set up BSE and other co –

sponsored with the net worth of Rs. 104 crores. In it, BSE has a 45 % stake while others

have 55 % stake. In the same year it has Five Stock Exchanges established connectivity

with it for offering trade in Demat securities and 765 companies signed up with it to get

their securities admitted for dematerialization. It has 13 DPs in 91 cities across 168

locations covering 320 cities. Other co – sponsored are as under.

State Bank of India

Bank of India

Bank of Baroda

HDFC Bank

CDSL has also attained membership of the Asia – Pacific Central Securities Depository

Group (ACG). ACG has 22 members including depositories from Japan, Hong Kong,

Singapore, Malaysia, Australia, and New Zealand. Membership of the organization is

expected to help CDSL enhancing its knowledge base and contributing to the

development of other member organizations in the best international practices, settlement

risk management, cross-border linkage and technological development. This, in turn,

would help CDSL to secure foreign institutional investors’ business through their

custodian.

31

Operations Performed by CDSL

Carrying out actually share transactions

To do PSU disinvestments

To provide Centralized system at one e-space

To secure Foreign Institutional Investors’ business

Dematerialization of the Securities

Pledge creation in against the securities

Trading and settlement on day-to-day basis

Work as a custodian of its clients

COMPETITORS

STOCK HOLDING CORPORATION OF INDIA LIMITED

32

ICICI direct.com

SHARE KHAN

UTI SECURITIES

MARWADI GROUP

HDFC SECURITIES

KOTAK SECURITIES

KARVY STOCK BROKING LIMITED

RELIANCE MONEY

ANAGRAM SECURITIE

Table 3

Parameters

Opening Fee Brokerage

Trading A/c Demat A/c Delivery Square Off

ANGEL 100 460 .30 .06SHCIL 100 400 .55 .12ICICI Direct.com NIL 750 .75 .18SHAREKHAN NIL 750 .50 .10UTI SECURITIES NIL 600 NIL NILMARWADI GROUP NIL 125 .50 .10HDFC SECURITIES 399 .50 .15KARVY STOCKBROKING LTD. 100 NIL .30 .05RELIANCE MONEY NIL 750 Rs.12/tradeANAGRAM SECURITIES 100 400 .40 .10

(source: Angel Broking Trading.com)

33

REGULATORY ENVIRONMENT DETAILS

LEGISLATION

The four main legislations governing the securities market are:

(a) The Securities Contracts (Regulation) Act, 1956, preventing transactions in securities

by regulating the business of dealing insecurities

(b) The Companies Act, 1956, which is a uniform law relating to companies throughout

India

(c) The SEBI Act, 1992 for the protection of interests of investors and for promoting

development of and regulating the securities market, and

(d) The Depositories Act, 1996 which provides for electronic maintenance and transfer of

ownership of dematerialized securities.

RULES AND REGULATIONS

The Government has framed rules under the SCRA, SEBI Act and the Depositories Act.

SEBI has framed regulations under the SEBI Act and the depositories Act for registration

and regulations of all market intermediaries, for prevention of unfair trade practices,

insider trading, etc. Under these Acts, Government and SEBI issues notification,

guidelines, and circulars which need to be compiled with the market participants. The

self-regulatory organizations (SROs) like Stock Exchanges have also laid down their

rules.

34

REGULATORS

The regulators ensure that the market participants behave in a desired manner so that the

securities market continues to be a major source of finance for corporate and government

and the interest of investors are protected. The responsibility for regulating the

securities markets shared by Department of Economic Affairs (DEA), Department of

Company Affairs (DCA), Reserve Bank of India (RBI), Securities and Exchange Board

of India (SEBI) and Securities Appellate Tribunal (SAT).

35

OBJECTIVES OF SEBI

The promulgation of the SEBI ordinance in the parliament gave status to SEBI in 1992.

According to the preamble of the SEBI, the three main objectives are:

To protect the interests of the investors in securities

To promote the development of securities market

To regulate the securities market

FUNCTIONS OF SEBI

The main functions entrusted with SEBI are:

Regulating the business in stock exchange and any other securities market

Registering and regulating the working of stock brokers, share transfer agents,

bankers to the issue, trustees of trust deed, registrars to an issue, merchant bankers,

underwriters, portfolio managers, investment advisers and such other intermediaries

who may be associated with securities market in any manner.

Registering and regulating the working of collective investment schemes including

mutual funds

Promoting and regulating self-regulatory organizations

Prohibiting fraudulent and unfair trade practices in the securities market

Promoting investors education and training of intermediaries in securities market

Prohibiting insiders trading in securities

Regulating substantial acquisition of shares and take over of companies

Calling for information, undertaking inspection, conducting enquiries and audits of

the stock exchanges, intermediaries and self-regulatory organizations in the securities

market.

36

REGISTRATION OF INTERMEDIARIES

The intermediaries with securities market shall buy, sell or deal in securities after

obtaining the registration from SEBI, as required by section 12:

1. Stock-broker

2. Sub-broker

3. Share transfer agent

4. Banker to an issue

5. Trustee of the trust deed

6. Registrar to an issue

7. Merchant banker

8. Underwriter

9. Portfolio manger

10. Investment advisor

11. Depository

12. Depository participant

13. Custodian of securities

14. Foreign institutional investor

15. Credit rating agency

16. Collective investment schemes

17. Venture capital funds

18. Mutual funds

19. Any other intermediary associated with the securities market

37

INNOVATIVE PRACTICE EMPLOYED

38

RESEARCH

INTRODUCTION:

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

Broking.

In the past, investors had no option but to contact their broker to get real time access to

market data. But now with the concept of e-Broking, it is possible to get real time data

online without the need of contacting broker. In e-Broking system, the software is

directly made available to the end-user and he/she can access real time data immediately.

RESEARCH OBJECTIVE:

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

research.

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

scientific procedures. The main aim of research is to find out the truth which is hidden

and which has not been discovered yet. As each research has some or the other objectives

the following are the objectives of this research:

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

To find the awareness of online trading in angel broking

To find the feature of online trading which can convert the offline traders to

online trading.

To identify potential customers

39

RESEARCH METHODOLOGY

RESEARCH DESIGN:

For any researcher the research methodology is the most important criteria to decide

before the actual research process starts. There are many methods for conducting the

research some of them are as under:

The design of a research is a plan or a model that helps researcher to conduct a formal

investigation and survey. It is an application of methods and procedures for acquiring the

information needs for getting a desire out come. It decides the sources of data and

methods for gathering data. A good design insures that the information obtained is

relevant to the research question and that it was collected by objectives. Since, research

design is simply the frame work or plan for a study. It is a blue print that of a house

devised by an architect. My approach to research is descriptive and quite specific.

Out of various research methods the research method, which was most suitable to my

research, was Exploratory Research because it provides me all the opportunities to

cover the all the aspect that I require to conduct the research and get an appropriate out

come.

SAMPLING DESIGN:

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

40

DATA COLLECTION:

The task of data collection begins after a research problem has been defined and research

design/plan chalked out. While designing about the method of data collection to be used

for the study, the researcher should keep in mind two types of data.

There are 2 sources of data i.e.

1) Primary Data:

The data, which are collected for the first time, directly from the respondents to

the base of knowledge & belief of the research, are called primary data.

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

sense of how people feel about the topic.

So far as this research is concerned, primary data is the main source of information.

The data collected is through questionnaire & information provided by the

respondent.

2) Secondary Data:

When data are collected & compiled in a published nature, it is called secondary data.

So far as this research is concerned Internet and the Company brochures and

pamphlets have been referred to.

41

Sampling Process:

It is true that it’s very difficult to do the research with the whole universe. As we know

that it is not feasible to go for population survey because of the numerous customers and

their scattered location. So for this purpose sample size has to be determined well in

advance and selection of sample also must be scientific so that it represents the whole

universe.

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

respondents of Allahabad city.

Mode of data collection:

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

Table 1

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

questionnaire because it gives more flexibility in terms of collection of the data and one

has a chance to meet the responder personally and have an idea of getting an important

unknown data that can be collected through their behavior.

Sample Universe Allahabad city

Type of Sampling Non Probability Convenience

based Sampling

Sample size 55 respondents

Research Instrument A structured formatted

questionnaire

42

The following are the findings from this research

Please tell me your age?

Table2

Different group of Age No. of sampling

21-35 35

36-50 10

51-65 10

Total 55

The Sampling technique was Random sampling so; there is no fixed number of

respondents for the specific age group. The above graph indicates the age group of the

people investing in share market or interested to invest in share. It can be noted that

among the 100 respondents, 35 users fall in the age group of 21-35, 10 user falls in the

age group of 36-50 and 10 user falls under the age group of 51-65.

43

What is your occupation?

Table3

Type of Occu

Pation

No. of Sampling

Businessman 25

Govt. Servant 5

Employee 10

Others 15

Total 55

The above graph shows the occupation of the persons who invest in share or interested to

invest in share market. The highest no. of users fall under the category of businessman.

This shows that persons having their business can easily invest in share market whenever

they are free or whenever they wish to trade. The category of others include mostly

students.

44

What is your average annual income?

Table4

Income No.

Less than 1 lac 20

1 – 2 lac 17

2 – 3.5 lac 8

3.5 – 5 lac 5

5 or more lac 5

Total 55

The above graph shows the income of the person. More of them fall under the category of

less than Rs. 1 lac. There are almost 5 users that fall in the income range of Rs. 5 lac or

more. It can be interpreted that persons in the income range of Rs. 5 lac or more have

less time to trade or look after the markets themselves. So even if they invest, they

usually prefer offline trading.

45

Do you have any saving account? In which bank?

Saving account No. of investors

bank Commercial 22

Post office 12

LIC 11

Estate 10

Total 55

The above graph shows that more people have saving in commercial bank (i.e. SBI, BOI

BOB). After that invest their money in Post Office, LIC.Estate.

46

Which mode of trading alternative do you use?

□ Online Trading □ Offline Trading

Table 5

Online Trading No.

Online users 9

Offline users 46

Graph 1

The above graph shows the users and non users of online trading. The users of online

trading are very less compared to that of offline traders. Among 55 respondents only 9

respondents use online trades and the rest use offline trading. This shows that the

concept of e-Broking is not so prevalent in the market. People still prefer to use the

traditional offline method of trading.

47

In which Stock Broking House do you prefer to invest ?

Table6

Broking House No.

Angel 10

India-bulls 10

India Infoline 20

Others 15

Graph 5

The above graph shows the various broking houses from where the user prefers to invest.

This shows that Angel has more market area to cover by its unique features. This shows

the strong position of competitors in the market and the scope for Angel to expand its

business.

48

DATA ANALYSIS AND FINDINGS

There are lots of players in the market including number of broker and sub brokers in the

market. The facilities of angel broking demat account is better than other broking house

but very few people know about it.

The study may not include the sub brokers as for the sake of convenience; I restricted my

survey taking into consideration their Name, Fame & also the products and services they

give to their customers such as trading on phone, low brokerage, low trade charges, the

funding facilities, the deposit ratios etc… This survey is especially focused on the

For any researcher it is important that how one has analyzed his or her data in way that it

can be clearly interpreted by him and the proper results can be derived.

49

CONCLUSIONS

1. Angel Demat Account is better than other Demat, Angel haves good return on

investment. A good brand is always welcomed over here people are aware of quality.

2. From the research carried out, it can be concluded that presently the concept of e-

Broking is not prevalent in the market. Still the traditional method of offline trading

is preferred by the people. As it is a new concept, it will take time for people to

change their mode of trading.

3. The investors are mostly businessman. Other persons falling in the category of

employee, govt. servants or students are either not aware of Demat account or are not

mentally prepared for using e-Broking concept. Such people can be made aware

about the benefits of demat a/c and e-Broking and it’s uses should be properly

conveyed so that people become ready to invest in share market.

4. The potential customer for Angel Broking House consist of professionals,

employees and govt. servants because these persons are either not investing or investing

through other broking houses. The persons investing from other broking houses can be

converted to the customers of Angel Broking by conveying its unique features and the

low brokerage cost and the rest can be educated about stock market.

LIMITATIONS OF THE STUDY

The limitations of this study are as follows:

50

Area:

The area was limited only to Jamnagar city. The result may have varied, if it was

conducted somewhere else.

Sample Size:

The Sample size taken is only 55 due to time constraint; which may not result in very

accurate results.

Time Limit:

The time limit taken for conducting the research was very less which could also be

one of the limitations of the study.

51

RECOMMENDATIONS

The Company can create awareness among the customers regarding invest in share

market so that they can open their demat account.

To make the concept of e-Broking powerful, the Company must educate the people

regarding the benefits of e-Broking.

A person having sound knowledge about trading in share market can be appointed to

solve the queries of customers.

The potential customer can be identified by knowing the competitor’s customer and

they can be conveyed to trade with Angel Broking by conveying the unique features

and low brokerage provided by the Company.

52

DISCUSSION GUIDE

1) What is your name?

……………………………………………………………………

2) Please tell me your name

……………………………………………………………………...

3) What is your Occupation?

………………………………………………………………………

4) What is your yearly average income?

……………………………………………………………………..

5) Do you have any source of income?

…………………………………………………………………….

6) (If yes) do you have a saving account? In which bank?

……………………………………………………………………….

7) Do you have any other investment?

………………………………………………………………………..

8) (If yes) Whom have you invested with?

………………………………………………………………………..

9) What are the best methods of investment method according to you?

…………………………………………………………………………

10) Have you ever invest in share market?

………………………………………………………………………….

11) Which broking house?

…………………………………………………………………………

12) Have heard about angel broking?

…………………………………………………………………………

13) Are you aware about e-Broking?

53

……………………………………………………………………………..

14) If yes, then which features of e-Broking you like the most?

□ Instant Online Fund Transfer with Multiple Banks

□ BSE, NSE, F & O, MCX and NCDEX in a single screen

□ No installation required

□ Advantages of mobility

□ Intraday / Historical charts with various indicators

15) Is there any disadvantage of e-Broking?

□ Yes □ No

16) If yes, then specify that

____________________________________________________________

____________________________________________________________

____________________________________________________________

________________________________

Thank you for you kind cooperation

54

BIBLIOGRAPHY

BOOKS :

Dynamic memory How to Succeed in Share Market by Ashwini Sharma.

Publisher- Diamond Pocket Books (P) Ltd.

Kotler Philip, Marketing Management, Eleventh Edition, 2002, Prentice-Hall

of India, New Delhi

Angel Brochures and Pamphlets

WEBSITES :

www.angelbroking,com

www.angeltrade.com

www.harmony.angeltrade.com

www.nseindia.com

www.bse.com

www.sebi.gov.in

55