online trading and stock broking

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Online trading and Stock broking

THE PROJECT REPORT

ON

ONLINE TRADING AND STOCK BROKING

AT

SHARE KHAN LIMITED

BY

A.BC.SHARMA

MBA (FINANCE)

Roll No: 108D1E0010

Project submitted in partial fulfillment for the award of the degree of

MASTERS IN BUSINESS ADMINISTRATION (2010-12)

JAWAHARLAL NEHRU TECHNOLOGY UNIVERSITY-HYDERABAD

CM SCHOOL OF BUSINESS MANAGEMENT

HYDERABAD


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DECLARATION

I hereby declare that this Project Report titled ONLINE TRADING AND STOCK

BROKING submitted by me to the Department of Business Management, JNTU.,

Hyderabad, is a bonafide work undertaken by me and it is not submitted to any other

University or Institution for the award of any degree diploma / certificate or published

any time before.

Name and Address of the Student Signature of the Student


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INTERNAL GUIDE CERTIFICATE

This is to certify that the Project Report title SHARE KHAN LIMITED submitted in

partial fulfillment for the award of MBA Program of Department of Business

Management, JNTU Hyderabad, was carried out by

________________________________ under my guidance. This has not been submitted

to any other University or Institution for the award of any degree/diploma/certificate.

Name and address of the Guide Signature of the Guide


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ACKNOWLEDGEMENT

With great humility, I am presenting a project report to .

With an enriching experience summer inter ship in SHARE KHAN LIMITED,

HYDERABAD, I express my sincere gratitude to SHARE KHAN LIMITED, HYD, who

permitted me to do a project in this esteemed organization. The project was successfully

shaped under the guidance of Mr. K.R. Krishna murthi, Finance Analyst , SHARE

KHAN LIMITED , HYD and I express my sincere appreciation and thanks to them.

I express my sincere gratitude to Mr. C.ANAND and Mrs. P.HARIKA (Finance

Faculty) Profs of CM SHOOL OF BUSINESS MANAGEMENT.

I sincerely express my thanks to Principal Mr. G. SUDHAKAR , & HOD

M.SRINIVAS of CM SCHOOL OF BUSINESS MANAGEMENT under whose support

and guidance, this project was successfully completed & also Mr. K.R. Krishna murthi

employee of SHARE KHAN LIMITED Who helped me immensely, and encouraged me

in carrying out this project.

(A.BC.SHARMA)

HT No: 108D1E0010


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List of Tables format

S.No Table

No

Description Page No


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LIST OF FIGURES FORMAT

S.No Figure No Description Page No


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INTRODUCTION:

Trading on stock exchanges is officially done in the trading ring. In the trading ring the

space is provided for specified and non-specified sections, the members and their

authorized assistants have to wear a badge or carry with them an identity card given by

the exchange to enter the trading ring. They carry a Saudi book or confirmation memos,

duly authorized by the exchange and carry a pen with them. The stock exchanges

operations are floor level are technical in nature .Non-members are not permitted to enter

in to stock market. Hence various stages have to be completed in executing a transaction

at a stock exchange.

Definition:

The increasingly popular activity of buying and selling securities over the internet,

or to a lesser extent, through a broker's proprietary software.

Definition of 'Online Trading'

The act of placing buy/sell orders for financial securities and/or currencies with

the use of a brokerage's internet-based proprietary trading platforms. The use of online

trading increased dramatically in the mid- to late-'90s with the introduction of affordable

high-speed computers and Internet connections.

The use of online trades has increased the number of discount

brokerages because internet trading allows many brokers to further cut costs and part of

the savings can be past on to customers in the form of lower commissions.

Another benefit of online trading is the improvement in the speed of which

transactions can be executed and settled, because there is no need for paper-based

documents to be copied, filed and entered into an electronic format.
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Following diagram gives the structure of Indian financial system:


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FINANCIAL MARKET:

In economics, a financial market is a mechanism that allows people to buy and

sell (trade) financial securities (such as stocks and bonds), commodities (such as precious

metals or agricultural goods), and other fungible items of value at low transaction

costs and at prices that reflect the efficientmarket hypothesis.

Both general markets (where many commodities are traded) and specialized

markets (where only one commodity is traded) exist. Markets work by placing many

interested buyers and sellers in one "place", thus making it easier for them to find each

other. An economy which relies primarily on interactions between buyers and sellers to

allocate resources is known as a market economy in contrast either to a command

economy or to a non-market economy such as a gift economy.

Financial markets are helpful to provide liquidity in the system and for smooth

functioning of the system. These markets are the centers that provide facilities for buying

and selling of financial claims and services. The financial markets match the demands of

investment with the supply of capital from various sources.

According to functional basis financial markets are classified into two types.

They are:

Money markets (short-term) Capital markets (long-term)According to institutional basis again classified in to two types. They are

Organized financial market Non-organized financial market.


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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:

The money market is a component of the financial markets for assets involved in

short-term borrowing and lending with original maturities of one year or shorter time

frames. Trading in the money markets involves Treasury bills, commercial paper,

bankers acceptances, certificates of deposit, federal funds, and short-

lived mortgage and asset-backed securities. The money market consists of financial

institutions and dealers in money or credit who wish to either borrow or lend. Participants

borrow and lend for short periods of time, typically up to thirteen months. Money market

trades in short-term financial instruments commonly called "paper." This contrasts with

the capital market for longer-term funding, which is supplied by bonds and equity

These instruments are often benchmarked to (i.e. priced by reference to)

the London Interbank Offered Rate (LIBOR) for the appropriate term and currency.

It provides liquidity funding for the global financial system.

Money market is a place where we can raise short-term capital.

Again the money market is classified in to

Interbank call money market Bill market and Bank loan market Etc. E.g.; treasury bills, commercial papers, CD's etc.


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CAPITAL MARKET:

A capital market is a market for securities (debt or equity ), where business

enterprises (companies) and governments can raise long-term funds. It is defined as a

market in which money is provided for periods longer than a year, as the raising of short-

term funds takes place on other markets (e.g., the money market). The capital market

includes the stock market (equity securities) and the bond market (debt). Financial

regulators, such as the UK's Financial Services Authority (FSA) or the U.S Securities and

Exchange Commission (SEC), oversee the capital markets in their designated

jurisdictions to ensure that investors are protected against fraud, among other duties.

Capital market is a place where we can raise long-term capital.

Again the capital market is classified in to two types and they are

Primary market and Secondary market.

E.g.: Shares, Debentures, and Loans etc.

PRIMARY MARKET:

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 up gradation.

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


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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).

Functions:

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:

1. Merchant banker/book building lead manager2. Registrar and transfer agent3. Underwriter/broker to the issue4. Adviser to the issue5. Banker to the issue6. Depository7. Depository participant

Investors protection in the primary market:

To ensure healthy growth of primary market, the investing public should be

protected. The term investor protection has a wider meaning in the primary market. The

principal ingredients of investors protection are:


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Provision of all the relevant information Provision of accurate information and Transparent allotment procedures without any bias.

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 depends on the primary market. More the

number of companies entering the primary market, the greater are 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 (OTCE), 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 mandatory

to list their shares on one or more stock exchanges in India. Listing of scrips provides

liquidity and offers an opportunity to the investors to buy or sell the scrips.

The following are the intermediaries in the secondary market:

Broker/member of stock exchangebuyers broker and sellers broker

1. Portfolio Manager.2. Investment advisor.


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3. Share transfer agent.4. Depository.5. Depository participants.

STOCK MARKETS IN INDIA:

Stock exchanges are the perfect type of market for securities whether of government

and semi-govt bodies or other public bodies as also for shares and debentures issued by

the joint-stock companies. In the stock market, purchases and sales of shares are affected

in conditions of free competition. Government securities are traded outside the trading

ring in the form of over the counter sales or purchase. The bargains that are struck in the

trading ring by the members of the stock exchanges are at the fairest prices determined by

the basic laws of supply and demand.

Definition of a 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. The securities include:

Shares of public company. Government securities. Bonds.

History of Stock Exchanges:

The only stock exchanges operating in the 19th century were those of Mumbai

setup in 1875 and Ahmadabad set up in 1894. These were organized as voluntary non-

profit-making associations of brokers to regulate and protect their interests. Before the

control on securities under the constitution in 1950, it was a state subject and the Bombay


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securities contracts (control) act of 1925 used to regulate trading in securities. Under this

act, the Mumbai stock exchange was recognized in 1927 and Ahmadabad in 1937.

During the war boom, a number of stock exchanges were organized. 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 committees

recommendations and public discussion, the securities contract (regulation) act became

law in 1956.

Functions of Stock Exchanges:

Stock exchanges provide liquidity to the listed companies. By giving quotations to

the listed companies, they help trading and raise funds from the market. Over the hundred

and twenty years during which the stock exchanges have existed in this country and

through their medium, the central and state government have raised crores of rupees by

floating public loans, municipal corporations, trust and local bodies have obtained from

the public their financial requirements, and industry, trade and commerce- the backbone

of the countrys economy-have secured capital of crores or rupees through the issue of

stocks, shares and debentures for financing their day-to-day activities, organizing new

ventures and completing projects of expansion, diversification and modernization.

By obtaining the listing and trading facilities, public investment is increased and

companies were able to raise more funds. The quoted companies with wide public interest

have enjoyed some benefits and assets valuation has become easier for tax and other

purposes.


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Various Stock Exchanges in India:


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At present there are 23 stock exchanges recognized under the securities contracts

(regulation), Act, 1956. Those are:

1.

Bhubaneswar Stock Exchange Association

2. Calcutta Stock Exchange3. Cochin Stock Exchange Ltd.4. Coimbatore Stock Exchange5. Delhi Stock Exchange Association6. Guwahati Stock Exchange Ltd7. Hyderabad Stock Exchange Ltd.8. Jaipur Stock Exchange Ltd9. Kanara Stock Exchange Ltd10.Ludhiana Stock Exchange Association Ltd11.Madras Stock Exchange12.Madhya Pradesh Stock Exchange Ltd.13.Magadha Stock Exchange Limited14.Meerut Stock Exchange Ltd.15.Mumbai Stock Exchange16.National Stock Exchange of India17.OTC Exchange of India .18.Pune Stock Exchange Ltd.19.Saurashtra Kutch Stock Exchange Ltd.20.Uttar Pradesh Stock Exchange Association21.Vadodara Stock Exchange Ltd.


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OUT OF THESE MAJOR STOCK EXCHANGES WERE:

(i)NSE (National Stock Exchange):

NSE is a stock exchange located at Mumbai, India it is the 9 th largest stock

exchange in the world by market capitalization and largest in India by daily turnover and

number of trades, for both equities and derivative trading. NSE has a market

capitalization of around US$1.59 trillion and over 1,552 listings as of December 2010.

Though a number of other exchanges exist, NSE and the Bombay Stock Exchange are the

two most significant stock exchanges in India and between them are responsible for the

vast 9th majority of share transactions. The NSE's key index is the S&P CNX Nifty,

known as the NSE NIFTY (National Stock Exchange fifty), an index of fifty major

stocks weighted by market capitalization.

NSE is mutually-owned by a set of leading financial institutions, banks,

insurance companies and other financial intermediaries in India but its ownership and

management operate as separate entities. There are at least 2 foreign investors NYSE

Euro next and Goldman Sachs who have taken a stake in the NSE.


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As of 2006, the NSE VSAT terminals, 2799 in total, cover more than 1500 cities

across India. NSE is the third largest Stock Exchange in the world in terms of the

number of trades in equities. It is the second fastest growing Stock Exchange in the

world with a recorded growth of 16.6%. The National Stock Exchange of India was

promoted by leading Financial Institutions at the behest of the Government of India, and

was incorporated in November 1992 as a tax-paying company.

In April 1993, it was recognized as a Stock Exchange under the Securities

Contracts (Regulation) Act, 1956. NSE commenced operations in the Wholesale Debt

Market (WDM) segment in June 1994. The Capital Market (Equities) segment of the

NSE commenced operations in November 1994, while operations in the

Derivatives segment commenced in June 2000.

The National Stock Exchange of India Limited has genesis in the report of the

High Powered Study Group on Establishment of New Stock Exchanges, which

recommended promotion of a National Stock Exchange by financial institutions (FIs) to

provide access to investors from all across the country on an equal footing. Based on the

recommendations, NSE was promoted by leading Financial Institutions at the behest of

the Government of India and was incorporated in November 1992 as a tax-paying

company unlike other stock exchanges in the country.

On its recognition as a stock exchange under the Securities Contracts

(Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt

Market (WDM) segment in June 1994. The Capital Market (Equities) segment

commenced operations in November 1994 and operations in Derivatives segment

commenced in June 2000.NSE's mission is setting the agenda for change in the securities

markets in India.


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The NSE was set-up with the main objectives of:

Establishing a nation-wide trading facility for equities and debt instruments. Ensuring equal access to investors all over the country through an appropriate

communication network.

Providing a fair, efficient and transparent securities market to investors usingelectronic trading systems.

Enabling shorter settlement cycles and book entry settlements systems, and Meeting the current international standards of securities markets

(ii)BSE (Bombay Stock Exchange):

The Stock Exchange, Mumbai, popularly known as "BSE" was established in

1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia,

even older than the Tokyo Stock Exchange, which was established in 1878. It is a

voluntary non-profit making Association of Persons (AOP) and is currently engaged in

the process of converting itself into demutualised and corporate entity. It has evolved over

the years into its present status as the premier Stock Exchange in the country. It is the first

Stock Exchange in the Country to have obtained permanent recognition in 1956 from the

Govt. of India under the Securities Contracts (Regulation) Act 1956.


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The Exchange, while providing an efficient and transparent market for trading in

securities, debt and derivatives upholds the interests of the investors and ensures redresses

of their grievances whether against the companies or its own member-brokers.

It also strives to educate and enlighten the investors by conducting investor

education programmers and making available to them necessary informative inputs.

The equity Market Capitalization of the companies listed on the BSE

was US$1.63 trillion as of December 2010, making it the 4th largest stock exchange in

Asia and the 8th largest in the world. The BSE has the largest number of listed companies

in the world. It has also been cited as one of the world's best performing stock market.

As of December 2010, there are over 5,034 listed Indian companies and over 7700

scrips on the stock exchange, the Bombay Stock Exchange has a significant trading

volume. The BSE SENSEX also called the "BSE 30", is a widely used market index in

India and Asia. Though many other exchanges exist, BSE and the National Stock

Exchange of India account for the majority of the equity trading in India.

The Governing Board consists of 9 elected directors, who are from the broking

community (one third of them retire ever year by rotation), three SEBI nominees, six

public representatives and an Executive Director & Chief Executive Officer and a Chief

Operating Officer.

The Executive Director as the Chief Executive Officer is responsible for the day-to-

day administration of the Exchange and the Chief Operating Officer and other Heads of

Department assist him.


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The Exchange has inserted new Rule No.126 A in its Rules, Byelaws pertaining to

constitution of the Executive Committee of the Exchange. Accordingly, an Executive

Committee, consisting of three elected directors, three SEBI nominees or public

representatives, Executive Director & CEO and Chief Operating Officer has been

constituted.

The Committee considers judicial & quasi matters in which the Governing Board has

powers as an Appellate Authority, matters regarding annulment of transactions,

admission, continuance and suspension of member-brokers, declaration of a member-

broker as defaulter, norms, procedures and other matters relating to arbitration, fees,

deposits, margins and other monies payable by the member-brokers to theExchange, etc.

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

Ministry of finance The Securities And Exchange Board of India Governing body


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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 education is a pass in 12 th standard examination.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI):

The securities and exchange board of India was constituted in 1988 under a

resolution of government of India. It was later made statutory body by the SEBI act

1992.according to this act, the SEBI shall constitute of a chairman and four other

members appointed by the central government.


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With the coming into effect of the securities and exchange board of India act,

1992 some of the powers and functions exercised by the central government, in respect of

the regulation of stock exchange were transferred to the SEBI.

OBJECTIVES AND FUNCTIONS OF SEBI:

To protect the interest of investors in securities. Regulating the business in stock exchanges and any other securities market. Registering and regulating the working of intermediaries associated with

securities market as well as working of mutual funds.

Promoting and regulating self-regulatory organizations. Prohibiting insider trading in securities. Regulating substantial acquisition of shares and takeover of companies. Performing such functions and exercising such powers under the provisions of

capital issues (control) act, 1947and the securities to it by the central government.

SEBI GUIDELINES TO SECONDARY MARKETS:

Board of Directors of Stock Exchange has to be reconstituted so as to include non-members, public representatives and government representatives to the extent of

50% of total number of members.

Capital adequacy norms have been laid down for the members of various stock

exchanges depending upon their turnover of trade and other factors.


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Need and Importance of the Study:

The present study to review the online trading procedure a case study of ONLINETRADING at SHARE KHAN LIMITED.

As the exchange has changed its trading from the outcry mode to online tradingon 2011, there is need to assess the performance of the capital market.

To develop the future assistance of trading. The present study to control the outside trading and fraud nature of illegal

brokerage.

To know the differences of manual trading and online trading procedure. To know about the latest and future development in the stock exchange trading

system.


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OBJECTIVES OF THE STUDY:

It is to analyze the changes in trading after the exchange shifted from outcry toonline trading system.

It is to study the functions of Indiabulls through various departments. To know the online screen based trading system adopted by Indiabulls and about

its communication facilities. The appropriate configuration to set the network,

which would link the Indiabulls to individual / members.

To know about the latest and future development in the stock exchange trading. To know how to handle various types of customers. To gain practical knowledge of the market. To study the trading procedure of the stock market. To have a practical experience of working in reputed organization.


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Research and Methodology:

The data collection methods include both primary and secondary collection

methods.

Primary method:

This method includes the data collected from the personal interaction with authorized

members of SHARE KHAN LIMITED.

Secondary method:

The secondary data collection method includes:

The lecturers delivered by the professors and superintendents of respective

departments. The brochures and material provided by SHARE KHAN LIMITED. The

data collected from the magazines of the NSE, economic times, etc., various books

relating to the investments, capital market and other related topics.


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Limitations of the Study:

The study is confined to online trading procedure only. Problems of listing are not

covered due to limited time and to keep the study in manageable limits. Despite of the

training my level best, there were still some limitation which I think remains there to

draw fruitful conclusion. There were some practical problems which come across and

could not be properly death with

The advisory services being promised by the brokers would be of little use toinvestors looking for an insight into the market.

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

If one like to ask his broker "Aaj kya achcha lag raha hai he may not be able to do so.If he wants advice on a particular stock in his portfolio he may not even be able to

get that.


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Execution of order or contract:

Orders are executed in the trading ring of the BSE. This works from 11:30 to 2.30

P.M on all working days Monday to Friday, and a special one-hour session on Saturday.

The members or the authorized assistants have to wear a badge given by the

exchange to enter into the trading ring. They carry a sauda Block Book or conformation

memos, which are duly authorized by the exchange when the deal is struck; both broker

and jobber make a note in their sauda block books. From the sauda book, the contract

notes are drawn up and posted to the client. A contract note is written agreement between

the broker and his clients for the transaction executed.

Drawing Up and Bills:

Both sale and purchase bills are prepared along with the contract note and it is

posted on the same day or the next day. This in a purchase transaction, once the shares are

delivered to the client effects payment for the purchases and pays the stamp fees for

transfer, a bill is made out giving the total cost of purchase, including other expenses

incurred by the broker in the price itself. With this, the process ends.

DEMATERLIZATION:

Dematerialization is the process by which physical certificates of an investor are

converted to an equipment number of securities in electronic form and credited in the

investor account with his DP. In order to dematerialize the certificates, an investor has to

first open an account with a DP and then request for the Dematerialization Request Form,

which is DP and submit the same along with the share certificates. The investor has to

ensure that he marks Submitted for Dematerialization on the certificates before the

shares are handed over to the DP for demat.


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Dematerialization can only be done to those certificates, which are already

registered in your name and belong to the list of securities admitted for Dematerialization

at NSDL.Most of the active scrips in the market including all the scrips of S&P CNX

NIFTY and BSE SENSEX have already joined NSDL. This list is steadily increasing.

Briefly, the process is as follows: after completion of transfer, the investor gets

the option to dematerialize such shares. Investors willing to exercise this option sends a

Demat request along with the option letter sent by the company to his DP. The company

or its R&T agent would confirm the Demat request on its receipt from the DP to reduce

risk of loss in transit.

Dematerialized shares do not have any distinctive or certificate numbers. These

shares are fungible-which means that 100 shares of a security are the same as any other

100 shares of the security. Odd lot shares certificates can also be dematerialized.

Dematerialization normally takes about fifteen to thirty days. To get back

dematerialized securities in the physical form, request DP for Dematerialization of the

same is made. Dematerialization is the process of converting electronic shares in to

physical shares.

BENEFITS OF DEMAT:

1. It reduces the risk of bad deliveries, in turn saving the cost and wastage of timeassociated with follow up for rectification. This has lead to reduction in brokerage

to the extent of 0.5% by quite a few brokerage firms.

2. In case of transfer of electronic shares, you save 0.5% in stamp duty. You avoidthe cost of courier / notarization.


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3. You can receive your bonuses and rights issues into your DA as a direct credit,this eliminating risk of loss in transit.

4. You can also expect a lower interest charge for loans taken against Demat sharesas compared to loans against physical shares.

5. There is no lost in transit, thus the overheads of getting a duplicate copy in suchcircumstances is reduced.

6. RBI has also reduced the minimum margin to 25% for loans againstdematerialized securities as against 50% for loans against physical securities.

ONLINE TRADING:

Before getting in to the online trading we should know some things about the

internet, e- commerce and etc.

What is Internet?

Internet is a worldwide, self-governed network connecting several other smaller

networks and millions of computers and persons, to mega sources of information. This

technology shrinks vast distances, accelerating the pace of business reforms and

revolutionizing the way companies are managed. It allows direct, ubiquitous links to

anyone anywhere and anytime to build up interactive relationships.

A combination of time and space, called the Internet promises to bring

unprecedented changes in our lives and business. Internet or net is an inter-connection of

computer communication networks spanning the entire globe, crossing all geographical

boundaries.


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It has re-defined the methods of communication, work study, education, business,

leisure, health, trade, banking, commerce and what not it is virtually changing everything

and we are living in dot.com age. Net being an interactive two way medium, through

various websites, enables participation by individuals in business to business and business

to consumer commerce, visit to shopping arcades, games, etc. in cyber space even the

information can be copied, downloaded and retransmitted.

The use of Internet has grown 2000 percent in last decade and is currently

growing at 10 percent per month. In India, growth of Internet is of recent times. It is

expected to bring changes in every functional area of business activity including

management and financial services.

It offers stock trading at a lower cost. Internet can change the nature and

capacity of stock broking business in India.

E-commerce:

Electronic commerce is associated with buying and selling over computer

communication networks. It helps conduct traditional commerce through new way of

transferring and processing of information. Information is electronically transferred from

computer to computer in an automated way. E-commerce refers to the paperless exchange

of business information using electronic data inter change, electronic technologies. It not

only reduces manual processes and paper transactions but also helps organization move to

a fully electronic environment and change the way they operated.

PCs and networking attempts to introduce banks of the tools and technologies

required for electronic commerce. The computers are either workstations of individual

office works or serves where large databases and information reside. Network connects


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both categories of computers; the various operating systems are the most basis program

within a computer. It manages the resources of the computer system in a fair and efficient

manner. Now we can enter in to the concept known as online trading. In the past,

investors had no option but to contact their broker to get real time access to market data.

The net brings data to the investor on-line and net broking enables him to trade on a click

of mouse. Now information has become easily accessible to both retail as well as big

investor.

EVOLUTION OF BROKING IN INDIA:

The evolution of a broking in India can be categorized in three phases

Stockbrokers will offer on their sites features such as live portfolio manager, livequotes, market research and news, etc. to attract more investors.

Brokers will offer online broking and relationship management by providing andoffering analysis and information to investors during broking and non-broking

hours based on their profile and needs, i.e. customized services.

Brokers (now e-brokers) will offer value management or services like initialpublic offering online, on-line asset allocation, portfolio management, financial

planning, tax planning, insurance services, etc. and enables the investors to take

better and well considered decisions.

The actual definition ofOnline Trading is as explained below:

Online trading is a service offered on the internet for purchase and sale of shares.

In the real world you place orders on your stockbroker either verbally (personally or

telephonically) or in a written form (fax). In online trading, you will access a

stockbrokers website through your internet enabled PC and place orders through the


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brokers internet based trading engine. These orders are routed to the stock exchange

without manual intervention and executed thereon in a matter of a few seconds.

The net is used as a mode of trading in internet trading. Orders are communicated to the

stock exchange through website.

In India:

Internet trading started in India on 1st April 2000 with 79 members seeking

permission for online trading. The SEBI committees on internet based securities trading

services has allowed the net to be used as an Order Routing System (ORS) through

registered stock brokers on behalf of their clients for execution of transaction. Under the

ORS the client enters his requirements (security, quantity, price buy/sell) on brokers site.

OBJECTIVES:

Internet trading is expected to

Increase transparency in the markets, Enhance market quality through improved liquidity, by increasing quote

continuity and market depth,

Reduce settlement risks due to open trades, by elimination of mismatches, Provide management information system, Introduce flexibility in system, so as to handle growing volumes easily and to

support nationwide expansion of market activity.

Besides, through internet trading three fundamental objectives of securities

regulation can be easily achieved, these are:

Investor protection


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Creation of a fair and efficient market, and Reduction of the systematic risks.Some of the brokers offering net trading include ICICI direct, kotakstreet, etc.

REQUIREMENTS FOR NET TRADING:

For investors:

1. Installation of a computer with required specification2. Installation of a modem3. Telephone connection4. Registration for on-line trading with broker5. A bank account6. Depository account7. Compliance with SEBI guidelines for net trading

The following should be produced to get a Demat account and online

trading account:

As identity proof & address proof any one of the following:

1) Voter ID card2)

Driving license

3) PAN card( in case of to trade more than 50000)4) Ration card5) Bank pass book6) Telephone bill


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For stock brokers:

1. Permission from stock exchange for net trading

2. Net worth of Rs. 50 lack

3. Adequate back-up system

4. Secured and reliable software system

5. Adequate, experienced and trained staff

6. Communication of order (trade confirmation to investor by e-mail)

7. Use of authentication technologies

8. Issue of contract notes within 24 hours of the trade execution

9. Setting up a website.

The net is used as a medium of trading in internet trading. Orders are

communicated to the stock exchange through website. Internet trading started in India on

1st April 2000 with 79 members seeking permission for online trading. The SEBI

committees on internet based securities trading services has allowed the net to be used as

an Order Routing System (ORS) through registered stock brokers on behalf of their

clients for execution of transaction.

Under the Order Routing System the client enters his requirements (security,

quantity, price, and buy/sell) in broker's site. They are checked electronically against the

clients account and routed electronically to the appropriate exchange for execution by the

broker. The client receives a confirmation on execution of the order. The customer's

portfolio and ledger accounts get updated to reflect the transaction.


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The user should have the user id and password to enter into the electronic ring. He

should also have demat account and bank account. The system permits only a registered

client to log in using user id and password.

PROCEDURE FOR NET TRADING:

Step 1:Those investors, who are interested in doing the trading over internet system i.e.

NEAT-IXS, should approach the brokers and get them self registered with the Stock

Broker.

Step 2: After registration, the broker will provide to them a Login name, Password and

personal identification number (PIN).

Step 3: Actual placement of an order. An order can then be placed by using the place

order window as under:

(a) First by entering the symbol and series of stock and other parameters like

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.


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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 10 seconds is there in executing the trade.

Step 8: It is regarding charging payment, for which there are different mode. Some

brokers will take some advance payment from the investor and will fix their trading

limits. When the trade is executed, the broker will ask the investor for transfer of funds to

his account.

The given flow chart clearly explains the process of online trading:


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Login

Buy transcation Sell transcation

The system will check buyinglimits

The system will check yourdp account quantity

Orders accepted Rejected orders would becommunicated along with reasons

orders accepted

contract note wouldbe sent to by mailor hand delivery

flashed on yourscreen immediately

on execution

conformationcould be send to youre-mail and mobile

you may edit your

pending order

you may delete yourpending order

your order is transmitted to exchange for execution

pending sell orderswould be displayed

on your screen

pending buy orderswould be displayed

on your screen

on executionof your orders

you may edit your

pending orderyou may delete

your pending order


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STEP BY STEP PROCEDURE IN ONLINE TRADING:

Following steps explain the step by step approach to on-line trading:

Log on to the stock broker's website Register as client/investor Fill the application form and client broker agreement form on the requisite value

stamp paper

Obtain user ID and pass word Log on to the broker's site using secure user ID and password Market watch page will show real time on-line market data Trade shares directly by entering the symbol or number of the security Brokers server will check your limit in the on-line account and demat account for

the number of shares and execute the trade

Order is executed instantly (10-30 seconds) and confirmation can be obtained. Confirmation is e-mailed to investor by broker Contract note is printed and mailed in 24 hours Settlement will take place automatically on the settlement day Demat account and the bank account will get debited and credited by electronic

means.

ADVANTAGES OF ONLINE TRADING:

1. Online trading has made it possible for anyone to have easy and efficient access tomore reports and charts than it was previously possible if one went to any brokers'

office. Thus we have access to a lot more information online.

2. Online trading has let room for smaller organizations to compete withmultinational organizations since it is no longer a leg it issue. Being online does


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not identify the size of any particular organization, therefore, this additional power

to the underdogs.

3. Online trading has allowed companies to locate themselves where they want asphysical 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.

4. Online trading gives control to individuals and they can exercise it over accountsthus comprehend what is going on when they trade. It is like going back to school

and re-educating oneself on how to trade online.

5. Individuals benefit by saving comparatively a lot more when trading online as thecost per trade is less.

6. Individuals can invest in a variety of products, unlike earlier when people boughtbonds, mutual funds, and stock for long-term basis and sat on them. Now they can

invest in stocks, stock and index options mutual funds, government, and even

insurance.


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HERE ARE THE POSSIBLE DISADVANTAGES:

1) When network crashes, there will be problems and delays due to a largeinflux of rapid online trading criteria.

2) Individuals are restricted to first-hand financial guidance. This simply meansthat the individual is himself / herself alone to.

3) A tax (sales tax and value added tax) evaluation becomes an issue, especiallywhen you are trading internationally.

4) One has no idea with whom he is dealing with on the other end.5) According to a study conducted by Mary Rowland, careful investor: is online

trading bad for your portfolio.

6) Individuals think that they are trading with the market directly and knowwhat they are doing, but the truth is that even though technology has taken

over

INVESTORS REASONS TO TRADE ONLINE:

1. They have control over their accounts, can make their own decisions and donthave to give reasons for their actions. They are independent.

2. They have a reason to participate in the market and learn about it.3. It is interesting, cheap, easy, fast, and convenient.4. A lot of information is online so they can keep up-to-date with what is

happening in the trading world.

5. It will give investors a greater choice and better realization.6. The immediate impact will be competition and benefits will accrue to the

investors.


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7. It will lead to brokerage commissions going down and brokers striving toincrease business afloat.

8. Investors will now go to place, which have better trading conditions and alsomembers to offer them better facilities.

9. They have access to numerous tools to invest, and can create their ownportfolio.


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ABOUT SHAREKHAN LIMITED

Sharekhan Limited is one of the fastest growing financial services providers with

a focus on equities, derivatives and commodities brokerage execution on the National

Stock Exchange of India Ltd. (NSE), Bombay Stock Exchange Ltd. (BSE), National

Commodity and Derivatives Exchange India (NCDEX) and Multi Commodity Exchange

of India Ltd. (MCX). Sharekhan provides trade execution services through multiple

channels - an Internet platform, telephone and retail outlets and is present in 280 cities

through a network of 704 locations. The company was awarded the 2005 Most Preferred

Stock Broking Brand by Awwaz Consumer Vote.

ORIGIN

Sharekhan traces its lineage to SSKI, an organization with more than decades oftrust and credibility in the stock market.

Pioneers of online trading in India- Sharekhan.com was launched in 2000 and isnow the second most visited broking site in India.

Has one of the largest networks of Share shops in the country.

SHAREHOLDING PATTERN

SHAREHOLDERS HOLDINGS

CITI Venture Capital and other Private Equity Firm 81%

IDFC 9%

Employees 10%


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MANAGEMENT TEAM CONSISTS OF-

NAME POST

Tarun Shah Chief Executive Officer

Mr. Pathik Gandotra Head Of Research

Mr. Rishi Kohli Vice President Of Equity Derivative

Jaideep Arora Director- Products And Technology

Shankar Vailaya Director- Operation

Sharekhan Limited offers blend of tradition and technology like Share shops, dial-n-trade

and online trading- where there is choice of three trading interfaces which are speed trade

exe for active trader, web based classic interface for investor, web based applet- fast trade

for investor. Sharekhan Limited was formerly known as SSKI Investor Services Private

Limited. The company is based in Mumbai, India and its address is- A-206 Phoenix

House, 2nd Floor

Senapati Bapat Marg, Lower Parel

Mumbai, 400 013. India

Phone: 91 22 24982000

Fax: 91 22 24982626

www.sharekhan.com
http://www.sharekhan.com/http://www.sharekhan.com/http://www.sharekhan.com/


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Advanced Technology Used By Sharekhan

Sharekhan selected Aspect EnsemblePro from the Aspect Software Unified IP

Contact Center product line, a unified contact centre solution delivering advanced

multichannel contact capabilities, because it provided the best total value over other

solutions evaluated. It enabled Sharekhan to meet customer service needs for inbound call

handling, voice self service, predictive outbound dialing, call blending, call monitoring

and recording, and creating outbound marketing campaigns, among other capabilities.

This helps them to

Increased agent efficiency and productivity. Enabled company to execute proactive customer service calls and expand services

offered to customers.

Enhanced call monitoring for improved service qualityFinancial services are a highly competitive and volume-driven industry which demands

high standards of customer service, effective consultation and quick deliverables. This is

something Sharekhan Limited, a financial services provider based in India, understands.

The company offers several user-friendly services for customers to manage their stock

portfolios, including online capabilities linked to an information database to help

customers confidently invest, and inbound customer services using voice self-service

technology and customer service agents handling telephone orders from clients.

With a customer base of more than 500000, and a employee of 3100 Sharekhan continues

to grow at a fast pace. Customer satisfaction is a top priority in Sharekhans agenda.

Its primary objective


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China, South Africa and Bangladesh. Our UK subsidiary has established a branch in

Belgium. SHAREKHAN Company is the most valuable company in India in terms of

market capitalization.

Board of Directors:

Mr. K. V. Kamath Mr. B. R. Gupta Mr. Eruch B. Desai

Mr. Barry Stowe Dr. Swati A. Piramal Mr. Keki Bomi Dadiseth

Mr. Ajay Srinivasan Ms. Shikha Sharma Mr. D. J. Balaji Rao

Ms. Kalpana Morporia Mr. Vikram B. Trivedi Mr. M. S. Parthasarathy

Mr. K. S. Mehta Mr. Vijay Thacker Ms. Vishakha Mulye

Mr. Dadi Engineer Mr. Pankaj Razdan


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DATA ANALYSIS AND INTERPRETATION

Company : LIC HOUSING FINANCE LTD. ( 500253 )Period : ( Jan 2011 to May 2011 )

MonthOpen

Price

High

Price

Low

Price

Close

Price

No. of

Shares

No. of

Trades

Total Turnover

(Rs.)

* Spread

(Rs.)

H-L C-O

Jan 11 196.55 198.50 150.40 180.15 5,40,04,598 4,83,124 9,59,72,42,037 48.10-

16.40

Feb 11 182.35 205.45 163.30 188.10 5,90,36,462 5,37,896 10,99,02,32,598 42.15 5.75

Mar

11190.40 228.65 189.50 225.45 4,00,72,253 3,91,360 8,21,48,31,570 39.15 35.05

Apr 11 226.00 241.45 215.60 219.15 2,95,13,068 2,89,812 6,74,58,65,479 25.85 -6.85

May

11221.00 233.80 197.65 230.85 2,78,01,747 2,97,568 5,93,81,58,978 36.15 9.85

*SPREAD

H-L : High-Low

C-O : Close-Open

J
http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcd=500253http://www.bseindia.com/bseplus/StockReach/AdvanceStockReach.aspx?scripcd=500253


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ANALYSIS OF LIC HOUSING FINANCE LTD:

In January share value has opened at 196.55 and closed with 198.50 In February share value was opened at 182.35 and closed with 205.45 In March share value has opened at 190.40 and closed with 228.65. In April share value has opened at 226.00 and closed with 241.45. In May share value has opened at 221.00 and closed with 222.95. On x-axis it has taken months and on y- axis has taken values In the months of January and February the share values increased in very slow

manner

February, March and April share price were increased high compared to Januaryand May

In January share value increased 196.55 to 198.50 (increased amount between theopen price and high price was1.95) and in May share value increased 221.00 to

222.95(increased amount between the open price and high price was1.95)

As well as in February share value increased 182.35 to 205.45 (increased amountbetween the open price and high price was23.10), in March share value increased

190.40 to 228.65 (increased amount between the open price and high price was

38.25) and in April share value increased 226.00 to 241.45 (increased amount

between the open price and high price was 15.45).

In March high price was in the good position if compare to all months) Finally in March more shares have been purchased by the investors to trade in the

stock exchange when compared to other months (+38.25).


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Company : RELIANCE INDUSTRIES LTD. ( 500325 )

Period : ( Jan 2011 to May 2011 )

MonthOpen

Price

High

Price

Low

Price

Close

Price

No. of

Shares

No. of

Trades

Total Turnover

(Rs.)

* Spread

(Rs.)

H-L C-O

Jan 11 1,062.00 1,090.00 903.10 919.25 1,92,66,718 5,43,672 19,17,60,82,161 186.90 -142.75

Feb 11 926.00 1,008.65 885.00 964.95 2,34,91,998 6,03,681 22,11,21,99,412 123.65 38.95

Mar 11 971.50 1,054.50 964.10 1,047.80 1,73,20,727 5,01,955 17,42,82,56,295 90.40 76.30

Apr 11 1,048.95 1,065.55 971.65 981.95 90,84,566 2,87,943 9,21,36,81,677 93.90 -67.00

May 11 983.70 987.00 899.25 951.75 1,04,95,345 3,37,081 9,84,06,01,035 87.75 -31.95

*SPREAD

H-L : High-Low

C-O : Close-Open


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ANALYSIS OF RELIANCE INDUSTRIES LTD:

In January share value has opened at 1062.00 and closed with 1090.00 In February share value was opened at 926.00 and closed with 1008.65 In March share value has opened at 971.50 and closed with 1054.50. In April share value has opened at 1048.95 and closed with 1065.55. In May share value has opened at 983.70 and closed with 987.00. On x-axis it has taken months and on y-axis has taken values January and May share price has increased to high very slow compare to all

months

February, March and April share price were increased high compared to Januaryand May

In January share value increased 1062.00 to 1090.00 (increased amount betweenthe open price and high price was 28.00) and in February share value increased

926.00 to 1008.65(increased amount between the open price and high price was

82.65)

As well as in March share value increased 971.50 to 1054.50 (increased amountbetween the open price and high price was83), In March high price was in the

good position if compare to all months (+83.00)

In February share price has decreased small bit than March (+82.65). In May shares have increased very low compare to its opening price as well as

compare to all months

Finally in February more shares have been purchased by the investors to trade inthe stock exchange if compare to all months.


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ANALYSIS OF STATE BANK OF INDIA:

In January share value has opened at 2830.05 and closed with 2852.45 In February share value was opened at 2651.90 and closed with 2813.40 In March share value has opened at 2651.00 and closed with 2888.00 In April share value has opened at 2772.00 and closed with 2959.90. In May share value has opened at 2811.50 and closed with 2819.55 On x-axis it has taken months and on y-axis has taken values In January share value increased 2830.05 to 2852.45 (increased amount between

the open price and high price was 22.40) and in February share value increased

2651.00 to 2888.00 (increased amount between the open price and high

price was 237.00)


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Period: ( Jan 2011 to May 2011 )

Month Open

Price

High

Price

Low

Price

Close

Price

No. of

Shares

No. of

Trades

Total Turnover

(Rs.)

* Spread

(Rs.)

H-L C-O

Jan 11 83.50 85.85 72.40 76.05 1,18,

60,777

36,884 93,14,10,257 13.45 -7.45

Feb 11 76.65 79.75 62.10 74.25 66,

46,853

40,533 47,63,84,682 17.65 -2.40

Mar 11 74.75 83.20 66.80 74.05 38

,21,781

29,044 27,65,60,096 16.40 -0.70

Apr 11 74.50 84.00 70.90 72.15 20,

48,515

20,367 15,78,69,563 13.10 -2.35

May 11 72.05 80.30 66.70 78.55 55,

59,249

24,046 42,17,13,237 13.60 6.50

*SPREAD

H-L : High-Low

C-O : Close-Open


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ANALYSIS OF INDIA INFOLINE LTD:

In January share value has opened at 83.50 and closed with 83.85 In February share value was opened at 76.65 and closed with 79.75 In March share value has opened at 74.75 and closed with 83.20 In April share value has opened at 74.50 and closed with 84.00. In May share value has opened at 72.05 and closed with 78.10 On x-axis it has taken months and on y-axis has taken values

In January share value increased 83.50 to 83.85 (increased amountbetween the open price and high price was 0.35) and in February

share value increased 76.65 to 79.75 (increased amount between

the open price and high price was 3.10)

re price has opened with low value as well increased to high very lowcompare to all months (72.05 and 78.10) (+6.05)

April share price were increased high compared to all months (+9.50) January share values of open price and high price were in the constant

position approximately. Because 0.35 value has increased than open price.

April share values were in the good position even though open pricedecreased compare to all months (+9.50)

January share values have not increased more than its open price as well ascompare to all months.

In May shares values have not opened more compare to all months. Finally April shares have been purchased by the investors to trade in the

stock exchanges compare to all months.


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Company : BHARAT HEAVY ELECTRICALS LTD. ( 500103 )

Period ( Jan 2011 to May 2011 )

*SPREAD

H-L : High-Low

C-O : Close-Open

MnthOpen

Price

High

Price

Low

Price

Close

Price

No. of

Shares

No. of

Trades

Total

Turnover

(Rs.)

* Spread

(Rs.)

H-L C-O

Jan

11

2,330.00 2,352.00 2,118.00 2,217.50 15,84,162 56,0893,53,11,58,41

4234.00 -112.50

Feb

11

2,230.00 2,294.70 1,960.00 2,000.65 18,22,350 89,3743,82,77,42,91

6334.70 -229.35

Mar

11

2,005.20 2,150.00 1,905.00 2,060.85 20,16,9701,00,42

2

4,05,59,78,40

9245.00 55.65

Apr

11

2,074.90 2,251.00 1,976.15 2,000.75 18,12,2421,06,55

7

3,83,87,85,03

1274.85 -74.15

May

11

2,008.00 2,108.90 1,892.00 1,944.10 25,13,6871,48,76

1

5,02,40,38,14

7216.90 -63.90


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ANALYSIS OF BHARATH HEAVY ELECTRICALS LTD:

In January share value has opened at 2330.00 and closed with 2352.00 In February share value was opened at 2230.00 and closed with 2294.70 In March share value has opened at 2005.50 and closed with 2150.00 In April share value has opened at 2074.90 and closed with 2251.00. In May share value has opened at 2008.00 and closed with 2077.20 On x-axis it has taken months and on y-axis has taken values

In January share value increased 2330.00 to 2352.00 (increasedamount between the open price and high price was 22) and in

February share value increased 2230.00 to 2294.70 (increased

amount between the open price and high price was 3.10)

As well as in March share value increased 2005.50 to 2150.00(increased amount between the open price and high price was


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144.5), in April share value increased 2074.90 to 2251.00

(increased amount between the open price and high price was

176.10) and in May share value increased 2008.00 to 2077.20

(increased amount between the open price and high price was

69.20).

January share value has opened very high. But not increased to highcompare to its open price as well as compare to all months (2330.00 to

2352.00) (+22)

April share value was increased very high compared to its open value aswell as compare to all months (176.10)

March and May share values of the open price were in the constantposition approximately if compare to all months (2005.90 and 2008.00.

Difference was 2.10 only)

April share values were in the good position even though its open price

decreased if compare to all months (176.10)

January share values have not increased more than its open price as well ascompare to all months.

In March shares values have not opened more if compare to all months. Finally April shares have been purchased by the investors to trade in the

stock markets compare to all months.


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Comparisons of high price values of above all companies:

Month

High

Price

(LICHFL)

High

Price

(RIL)

High

Price

(SBI)

High

Price

(IIFL)

High

Price

(BHEL)

Jan 11 198.5 1,090.00 2,852.45 85.85 2,352.00

Feb 11 205.45 1,008.65 2,813.40 79.75 2294.70

Mar 11 228.65 1054.50 2888.00 83.20 2294.70

Apr 11 241.45 1065.55 2959.90 84 2251.00

May 11 233.80 987.00 2819.55 80.30 2108.90

*SPREAD

H-L : High-Low

C-O : Close-Open


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On x- axis I have taken months january to may. On y- axis I have taken amounts 500 to 3000. In all months STATE BANK OF INDIA high prices have been increased

compare to all months.

In all months BHARATH HEAVY ELECTRICAL LIMITED high priceshave in the second position compare to all months.

In all months RELIANCE INDUTRIES LIMIRED high prices have inthe third position compare to all months.

In all months LIC HOUSING FINANCE LTDhigh prices have in the thirdposition compare to all months.

In all months INDIA INFO LINE LIMITED high prices have in the leastposition compare to all months.

No company given competetion to leading of STATE BANK OF INDIAwhile trading.

Because its open price was started at high price and incresed to high pricevery well compare to all months.

In any position of months STATE BANK OF INDIA share values havenot fallen compare to all months.

Finally in all months STATE BANK OF INDIA more share values havebeen purchased by the investers to trade in the stock markets compare to

all months.

So we can invest the investments efficiently in the STATE BANK OFINDIA. Because it is one of the leading bank of centrel government of

India.


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Opportunities:

1. Hyderabad covers only 2% of investors which gives huge potential for themarket penetration.

2. Bulls share prices of the market attracts investing public.3. Access to the BSE online space for the retail investors creates opportunity

to increase clientele base.

4. Awareness campaigns about online trading create new market.5. Anybody can enter into trading to sell or buy the shares.6. Our share values will be safe under the SEBI rules and regulations acts.

Threats:

1. Availability of Unit Linked Insurance Policies (ULIPs) and mutual fundsin the market.

2. Threat of entry is high in this industry as the manpower required is lessand capital requirement is medium.

3. To stand the good position in the market4. Sometimes brokers may create illegal trading for increase their brokerage

charges.

5. Some Investors may be busy with their other businesses and cannot behave interest on trading.

6. Some investors may not be having computer knowledge to know thescreen based trading process.


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SUGGESTIONS:

i.

Private companies still have to perform their trading well compare to

government companies.

ii. SEBI has to learn the online trading process for illiterate investors. Becausethey can be have some interest to trading.

iii. SEBI has to give more suggestions to stock markets for attract the moreinvestors into trading.

iv. Both government and SEBI have to support the small companies if theygetting losses due to market fluctuations.

v. SEBI has to take care of the sentiment of normal investors and give themsome securities for the money spent on the particular share.

vi. There is N-number of company listed in the share market. Investors doesnthave proper idea about the company .So SEBI has to give all the required

information to the customer regarding that particular company

vii. As there is a market risk is involved in the market so investors point of viewthey have to keep certain amount of money in the fixed deposit and keep few

amount of money into the share market

viii. Before investing the amount in the share market Investors has to go throughthe company and their performance in details

Documents

online trading and stock broking