ASummer Internship Project Report

OnCONSUMER BEHAVIOR TOWARDS ONLINE

TRADING IN STOCK MARKET

Submitted

In the partial fulfillment of the degree of

Master of Business Administration

Semester – II

Prepared By:

GUJARATI MITESH K

Enroll. No.: 137730592019

Guided By:

PROF.SUNIL MASHRU

Submitted to:

GUJARAT TECHNOLAGY UNIVERSITY

DECLARATION

I undersigned Mr Gujarati Mitesh student of SUNSHINE GROUP OF

INSTITUTIONS,M.B.A. SEMESTER – II Rajkot, hereby declare that the all

information of the Project is my own work. This project report is correct and true

to the best of my knowledge and ability and has been presented here my level best

under the supervision of my Professor SUNIL MASHRU of Sunshine college

rajkot.

This Report has not been previously submitted by the any other student for any

Examination.

Date:

Place: RAJKOT

Signature

_____________

(Gujarati Mitesh k.)

PREFACE

“With every experience you alone are painting your own canvas, thought by

thought, choice by choice.” This saying has played the guiding role in preparing

this practical financial project report of Sharekhan Ltd. This report has made it

possible for us to practically have a look at the financial conditions of the

company. The Summer Internship Project allows the student to expand their

practical knowledge and helps us to study and read business environment.

This practical training inMasterof Business Administration curriculum plays a vital

role in understanding and knowing the difficulty and challenges in the business

world. Only theoretical knowledge does not impart complete education, practical

experience must be there in order to add some meaning to education.

I have undergone my summer training at Sharekhan Ltd.It is one of the leading

broking house of the country. I feel great pleasure to present this report work after

my training at Sharekhan Ltd. that produced to be golden opportunity for me by

enriching my knowledge by comparing my theoretical knowledge with the

managerial skill and application.

ACKNOWLEDGEMENT

I Mitesh Gujarati student of M.B.A. feel great Pleasure to present this report. I am

thankful to all the persons who directly or indirectly helped me in the preparation

of this report.

I am very thankful GUJARAT TECHNOLOGICAL UNIVERSITY for

introducing this subject in course, as one becomes aware of the practical aspect of

life.

I am thankful to Sunshine college and to the respected Dean Dr. Nirmalkumar

Sharma for giving us such a valuable chance to go for Industrial Training and to do

work on this report.

I also like to thanks Prof. Sunil Mashru who guided & motivated me in preparing

the project report.

I am very much thankful to Mr. Bhavin Dhruve, Team Manager, of Sharekhan

Ltd.for being a helping hand in understanding all the details for preparation of this

report.

INDEX

Sr. No. Particular Page No.

1. Executive Summary

2. Industry Overview:

1.2 Introduction to Stock Broking Industry

3. Company Overview:

2.1Sharekhan at Glance

2.2 Functional Areas of the Sharekhan

4. Research Methodology

3.1Research Objective

3.2 Research Methodology

3.3 Review of Literature

3.4 Research Analysis & Interpretation

3.5Limittions

5. Research Finding and Conclusion

3.1 Findings

3.2 Recommendations

3.3 Conclusion

6.s Bibliography and Annexure

4.2 Bibliography

4.3 Annexure

Questionnaire

EXECUTIVE SUMMARY

This is a project report on “Consumer behavior towards online trading.” which is

made on the basis of summer internship done at Sharekhan stock broking.

The objective of the proposed study is to identify the specific factors that affect

consumer attitudes towards online share trading. The methodological approach to

this study is descriptive, because we attempt to identify and explain variables that

exist in a given situation and to describe the relationship that exists between these

variables in order to provide a picture of a particular phenomenon, but not to ferret

out cause-effect relationship.

The primary data was collected through questionnaire filling. The secondary data

was collected through the internet. India has a large chunk of population which is

at lower income level and at middle income level. There is a need of creating

awareness among them for share trading and the tremendous potential it has. They

are doing trading on the old methods which were used in the past. Now with the

advent of technology there are many options available to the traders which they

can use without any fear.

The trend is moving towards the online share trading but still it has a lot to cover.

The traders are more of young age and middle age and don’t fear from risk taking

but the lack of knowledge doesn’t allows them to do so. So the stock broking

companies should take measures to empower the normal investors so that they can

trade with the latest technologies available.

Target the youth as they are most potential customers of the stock market as

their interest towards stock trading is increasing. The stock broking companies

should educate the investors by giving them timely help in the form of reports and

tips.The companies should try to work in more transparent way. People want good

services and are ready for paying extra penny. People prefer Ease of transactions

and security.

As per my summer internship project topic, “Consumer Behavior towards

Online Trading in Stock Market” I choose 100 people as the sample size as the part

of research and most of the people who are traded in stock market they are doing it

offline. So, there is the more scope of online trading customer and they can also try

to convert the offline customer into the online trading customer. And they can also

catch the attention of those who are investing in Mutual Fund. They have to attract

the more businessmen and the employees who are working in private or public

sector.

INTRODUCTION

Securities market has essentially divided into three categories of participants,

namely the issuer of securities, investors in securities and the intermediaries.

The security market has two interdependent and inseparable segmentsthe Primary

Market and the Secondary Market.

Primary Market:

The primary market is the part of the capital market that deals with issuing of new

securities. Companies, government or public sector institutions can obtain funds

through the sale of a new stock or bond issues through primary market.

Secondary Market:

A market where investors purchase securities or assets from other investors, rather

than from issuing companies themselves. The national exchange – such as the New

York Stock Exchange and the NASDAQ are secondary markets.

HISTORY

1850 – Shares of banks and securities of east India Company traded in

Mumbai under a sprawling banyan tree in front of town hall, which is now in

the honiman circle park.

1875 – Brokers organized an association known as the native share brokers

association, and the country’s first stock exchange the Bombay stock

exchange (BSE), set up in Mumbai with 318 members. The membership fee

gradually increased from Rs 1 in 1887 to Rs 1000 in 1896, and Rs 48000 in

1920.

1956 – Securities contract regulation Act passed.

1957 – The BSE and eight other stock exchange registered under the

securities trading contract act.

1982 – The BSE classifies scripts into group A for carry forward, and group

B for cash transaction.

1986 – The BSE 30 – share sensitivity index (a.k.a. the sensex) compiled;

updated every two minutes.

1987 – Stock holding corporation of India set up.

1992 – Ordinance promulgated for granting statutory powers to the SEBI.

The over- the counter exchange of India begins operations. The national

stock exchange incorporated.

1994 – The NSE’s debt segment begins operation on June 30; and the capital

market segment begins online script less trading on November 3.

1995 – the BSE computerizes its trading operation , signaling the end of 120

years of floor trading with open out cry system of share trading and the

beginning of screen – based trading on the BSE.

1996 – NSE 50 index launched April 22. NSDL set up as the first

depositary in India, and the NSE commences trading in dematerialized

securities on December 26.

2000 – The SEBI approves the reports on net trading brought out by the

SEBI committee on net based trading and services. Pursuant to the circular ,

stock exchanges are require to give permission to members to start net based

trading after ensuring fulfillment of the minimum conditions.

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 demutualized 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.

The Exchange, while providing an efficient and transparent market for

trading in securities, debt and derivatives upholds the interests of the

investors and ensures redressal 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 program and making available to them necessary informative

inputs.

NSE (NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock

exchange in April 1993. It started operations in June 1994, with trading on

the Wholesale Debt Market Segment. Subsequently it launched the Capital

Market Segment in November 1994 as a trading platform for equities and

the Futures and Options Segment in June 2000 for various derivative

instruments.

NSE has been able to take the stock market to the doorsteps of the investors.

The technology has been harnessed to deliver the services to the investors

across the country at the cheapest possible cost.

It provides a nation-wide, screen-based, automated trading system, with a

high degree of transparency and equal access to investors irrespective of

geographical location. The high level of information dissemination through

on-line system has helped in integrating retail investors on a nation-wide

basis.

The standards set by the exchange in terms of market practices, Products,

technology and service standards have become industry benchmarks and are

being replicated by other market participants.

National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally

managed online multi commodity exchange promoted by ICICI Bank Limited (ICICI Bank),

Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural

Development (NABARD) and National Stock Exchange of India Limited (NSE). Punjab

National Bank (PNB), CRISIL Limited (formerly the Credit Rating Information Services of

India Limited), Indian Farmers Fertilizer Cooperative Limited (IFFCO) and Canara Bank by

subscribing to the equity shares have joined the initial promoters as shareholders of the

Exchange. NCDEX is the only commodity exchange in the country promoted by national

level institutions. This unique parentage enables it to offer a bouquet of benefits, which

are currently in short supply in the commodity markets. The institutional promoters of

NCDEX are prominent players in their respective fields and bring with them institutional

building experience, trust, nationwide reach, technology and risk management skills.

NCDEX is a public limited company incorporated on April 23, 2003 under the Companies

Act, 1956. It obtained its Certificate for Commencement of Business on May 9, 2003. It

has commenced its operations on December 15, 2003.

NCDEX is a nation-level, technology driven de-mutualized on-line commodity exchange

with an independent Board of Directors and professionals not having any vested interest

in commodity markets. It is committed to provide a world-class commodity exchange

platform for market participants to trade in a wide spectrum of commodity derivatives

driven by best global practices, professionalism and transparency.

FACILITIES PROVIDED BY NCDEX:

NCDEX has developed facility for checking of commodity and also provides a ware

house facility.

By collaborating with industrial partners, industrial companies, news agencies,

banks and developers of kiosk network NCDEX is able to provide current rates

and contracts rate.

To prepare guidelines related to special products of securitization NCDEX works

with bank.

To avail farmers from risk of fluctuation in prices NCDEX provides special services

for agricultural.

NCDEX is working with tax officer to make clear different types of sales and

service taxes.

NCDEX is providing attractive products like “weather derivatives.”

Cashew Castor Seed

Chana Chilli

Coffee - Arabica Coffee - Robusta

Common Raw Rice Common Parboiled Rice

Crude Palm Oil Cotton Seed Oilcake

Expeller Mustard Oil Grade A Parboiled Rice

Grade A Raw Rice Groundnut (in shell)

Groundnut Expeller Oil Guar gum

Guar Seeds Gur

Jeera Jute sacking bags

Lemon Tur Indian Parboiled Rice

Indian Raw Rice Indian 28 mm Cotton

Indian 31 mm Cotton Maharashtra Lal Tur

Masoor Grain Bold Medium Staple Cotton

Mentha Oil Mulberry Green Cocoons

Mulberry Raw Silk Mustard Seed

Pepper Raw Jute

Rapeseed-Mustard Seed Oilcake RBD Palmolein

Refined Soy Oil Rubber

Sesame Seeds Soyabean

Sugar Yellow Soybean Meal

Turmeric Urad

V-797 Kapas Wheat

Yellow Peas Yellow Red Maize

MCX an independent and de-mutulised multi commodity exchange has permanent

recognition from Govt. of India for facilitating online trading, clearing and settlement

operations for commodity futures markets across the country. Key shareholders of MCX

include Financial Technologies (I) Ltd., State Bank of India (India’s largest commercial

bank) & associates, Fidelity International, National Stock Exchange of India Ltd. (NSE),

National Bank for Agriculture and Rural Development (NABARD), HDFC Bank, SBI

Life Insurance Co. Ltd., Union Bank of India, Canara Bank, Bank of India, Bank of

Baroda and Corporation Bank.

Headquartered in Mumbai, MCX is led by an expert management team with deep

domain knowledge of the commodity futures markets. Through the integration of

dedicated resources, robust technology and scalable infrastructure, since inception MCX

has recorded many first to its credit.

Inaugurated in November 2003 by Shri Mukesh Ambani, Chairman & Managing

Director, Reliance Industries Ltd, MCX offers futures trading in the following

commodity categories: Agri Commodities, Bullion, Metals- Ferrous & Non-ferrous,

Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft commodities.

MCX has built strategic alliances with some of the largest players in commodities eco-

system, namely, Bombay Bullion Association, Bombay Metal Exchange, Solvent

Extractors' Association of India, Pulses Importers Association, Shetkari Sanghatana,

United Planters Association of India and India Pepper and Spice Trade Association.

Commodities

Gold, Gold HNI, Gold M, I-Gold, Silver, Silver HNI, Silver M

Castor Oil, Castor Seeds, Coconut Cake, Coconut Oil, Cottonseed, Crude Palm Oil, Groundnut Oil,

Kapasia Khalli (Cottonseed Oilcake), Mustard /Rapeseed Oil, Mustard Seed (Sirsa), RBD Palmolein, Refined Soy

Oil, Refined Sunflower Oil, Sesame Seed, Soymeal, Soy Seeds  

Cardamom, Jeera, Pepper, Red Chilli

Aluminium, Copper, Lead, Nickel, Sponge Iron, Steel Flat, Steel Long (Bhavnagar), Steel Long (Gobindgarh), Tin, Zinc

Cotton Long Staple , Cotton Medium Staple,Cotton Short Staple, Cotton Yarn, Kapas

Chana, Masur, Tur, Urad, Yellow Peas,

Basmati Rice, Maize, Rice, Sarbati Rice, Wheat

Brent Crude Oil, Crude Oil, Furnace Oil Middle East Sour Crude Oil

Arecanut, Cashew Kernel, Rubber

High Density Polyethylene (HDPE),

BRIEF INTRODUCTION TO ONLINE STOCK MARKET

TRADING

Investors who are trading over the Internet or online need to know how they can

protect themselves against unexpected losses (especially in fast-moving markets)

and what additional steps to take in order to guard themselves against the typical

problems of online trading.

Online trading may be quick and easy but it still requires time and efforts. You can

buy or sell stocks from a great number of online brokers with just a click of your

mouse. However, do not forget that making wise investment decisions takes time.

Online trading may be seamless and quick but it is not always in stantaneous. A

number of technological problems can actually slow or prevent your orders from

reaching your online firm. Some of them include: a slow modem, computer, or

Internet Service Provider at the investor's end, heavy Internet traffic that is

slowing, down overall usage, inadequate hardware at the broker-dealers end, etc.

No regulations require that a trade should be executed within a certain time. If you

are unable to access your account online you should know what other options for

placing a trade you have. Your online trading firm may allow touch-tone telephone

trades, ordering by calling your broker, or placing your order. Have in mind that

sometimes turning to one of these options may increase your costs, and other times

you may still experience delays when using them.

Sometimes investors place an order, mistakenly assume that it hasn't been

executed, and place another order again. Thus, they end up either selling stocks

they do not own, or owning twice as much they wanted. If you are unsure whether

your original order was executed, don't rush in to placing it again. Talk to your

firm and clarify how to handle such situations. In other cases, investors don't make

sure that the transaction hasn't been executed when they cancel an order. You

should know that you may receive an electronic receipt for the cancellation but

your trade may still not have been canceled. Talk to your firm and ask them how

you can check to see if a cancellation has really worked. Limit your possible losses

by setting limit orders on fast-moving stocks.

By placing a regular market order, you don't have control over the price at which

the order will be filled. You hardly want to buy or sell stocks at a price that is

higher or lower than the one you have in mind so you better place a limit order. A

buy limit order will be executed only at a price that is not higher than your

preliminarily set limit price. A sell limit order on the other hand will be executed at

the limit price or higher. If you have a complaint, act promptly.

Placing Order

Settlement of trades

Decision to trade

Trade Execution

Clearing of Trades

Funds or Securities

Transaction Cycle

TRANSECTION CYCLE

ADVANTAGES OF ONLINE STOCK TRADING

1. Time

Customers can trade online with a real time basis and buying and selling of shares

happens with a press of a button.

2. Flexibility

Customers can modify the placing orders according to the market movements.

3. Standardized Procedures

When the order is accepted by the exchange, it will give pay-in and pay-outdates

and customer can easily expect the cash or shares to be credited to his account.

4. One stop shop

Bank statements and transaction statements can be viewed at the click of a button.

5. Informed Researches

Service providers carry stock analysis like intraday and EOD (End of day)

technical charting which helps the customer to make right choices

6. Flexibility of timing

Customers can place orders before start of a trading session

DISADVANTAGES OF ONLINE STOCK MARKET TRADING

1. Forgetting You Are Using Real Money

In recent decades, people have become very accustomed to doing both work and

play in front of a computer monitor. When you're so immersed in an online task,

it's possible to become detached. This can cause users of online investing firms to

forget that they are using real money as they trade on the brokerage's website.

Investors may make mistakes because they make trading decisions too quickly and

get caught up in the ease of using the technology.

2. Lack of a Broker/Investor Relationship

When you invest with a traditional brokerage firm, there is a relationship with the

broker, who can become an investing mentor. The broker provides advice and

guidance to the investor. This is beneficial relationship to both parties, as the

investor gets the broker's financial expertise and the brokerage firm gets extra fees

from clients if its portfolio grows in size. With an online trading firm, all portfolios

are self-directed, which means users need to have at least a working knowledge of

the financial markets to make informed decisions. Many investors simply don't

have enough time to follow the financial markets, especially on a daily basis. This

can cause them to make inappropriate investments due to a lack of complete

information.

3. No Time to Learn Online Programs

Online brokerage firms claim their software is easy, but this isn't always the case.

Often, the software is complicated, with several different options and calculators,

and no instructions on how to actually use them. People who don't learn software

quickly may not master all the ins and outs of the program.

COMPANY DETAILS

SSKI HISTORY

S. S. KANTILAL ISHWARLAL SECURITEIS PRIVATE LTD.

In 1922 Sharekhan,was founded as SSKI (ShantilalShevantilalKantilalIshwarlal)

and later on it is renamed as Sharekhan Ltd. And it is one of India’s oldest

brokerage houses having over eighty years of broking experience.

Founding member of the stock exchange, Mumbai and pioneer institutional

broker.

SSKI is the only domestic player in a market crowded by 44 multinational

securities firms.

venture into institutional broking and corporate finance 18 years ago

SSKI group also comprises institutional broking and corporate finance 18

years ago. While the institutional broking division caters to the largest

domestic and foreign institutional investors, the corporate finance division

focuses on niche areas such as infrastructure, telecom and media. SSKI

holds a sizeable portion of the market in each of these segments.

predecessor of investment research in the Indian market,

SSKI provide the best research coverage amongst broking houses in India.

The company’s research team was set up in des. 1992 and is rated as one of

the best in the country. Voted four times as the top domestic brokerage

house by Asia money survey, SSKI is consistently ranked amongst the top

domestic brokerage houses in India.

Retail broking started in 1985

Research group was set up in December 1992

It acts as a pioneer of investment research in the Indian market aimed at

generating quick investment ideas.

Its research team is rated as one of the best in the industry……across retail

& institutional.

Group interest in investment banking, institutional broking and retail

broking.

It is an integrated equity solution provider.

It commands good market share of the institutional business.

It has over 60 institutional client spread over India, Far East, UK and US.

It occupies 65% of business share from foreign institutional investors.

Its daily turnover average to US$ 2 million.

The private equity deals sum over US$ 1 billion.

SSKI named its online division as “share khan” on February 8, 2000

coinciding with the launch of its website.

VISION

To empower the investor with quality advice and superior service to help

him take better investment decisions. We believe that our growth

depends on client satisfaction.

MISSION STATEMENT

..to educate and empower the

individual investor to make

better investment decisions

through

QUALITY ADVICE

INNOVATIVE PRODUCTS

and

SUPERIOR SERVICE

To provide the best Customer Service and Product Innovation tuned to

diverse needs of clientele.

Continuous up-gradation with changing technology, while maintaining

human values.

Respond to progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

ABOUT SHAREKHAN

1. Earlier Name: Shantilal Shevantilal Kantilal Ishwarlal

Securities Pvt. Ltd.

2. New Name: Sharekhan Ltd.

3. Year of Establishment: 8 February, 2000

4. Head Office: Sharekhan Ltd.

A – 206, Phoenih House,

BaptaMarg, Lower Parle,

Mumbai – 400013

5. Promoter: Shripal Morakhiya

Shreyas Morakhiya

6. Chief Executive Officer:Tarun P. Shah

7. Director of Operation: Shankar Valiya

8. Director of Product: Jaideep Arora

9. Branch Address: 103/104, Sakar Complex,

Dr. Radhakrishna Road,

Opp. Rajkumar College,

Rajkot – 360001

10.Branch Manager: Mr. Malay Popat

11.Web-site: www.sharekhan.com

12.Phone No.: 0281-2482483 / 4

SSKI group – corporate structure

Chart-1

SHAREHOLDERS & SHAREHOLDING PATTERN:

Table-

1

SSKI Securities Pvt. Ltd.

Morakhia Family & Associates

SSKI Investor Securities Pvt. Ltd.

Retail broking arm of the group

Shareholding Pattern:

55.5% Morakhia Family (Promoters)

18.5% HSBC Pvt. Equity India Fund Ltd.

18.5% First Carlyle Ventures, Mauritius

7.5% Intel Pacific Inc.

SSKI Corporate Finance Pvt. Ltd.

Investment banking arm of the group

Shareholding Pattern:

50.5% SSKI Securities Pvt. Ltd.

49.5% Morakhia Family

Owns 56% of Owns 50.5% of

Sr. No. Shareholders Holding

%

1 Citi Venture Capital & Other Private Equity

Firms

81

2 IDFC (Infrastructure Development Finance

Company)

9

3 Employees 10

PRICING POLICY OF SHAREKHAN:-

Parameters A/c Opening Fee Brokerage Interface

Trading

A/c

Demat Delivery Square

Off

Banks Associated

with

ShareKhan 400 NIL 0.40 0.07 HDFC, AXIS,

OBC, IDBI, ICICI,

IndusInd, SBI, UBI,

BOI

ICICI Direct 750 NIL 0.75 0.18 ICICI Bank

Indiabulls 750 250 0.40 0.10 N.A.

Kotak Street 500 N.A. 0.50 0.06 Kotak Bank &

Citibank

HDFC Securities 700 NIL 0.50 0.15 HDFC & Other 4

Banks

INDUSTRY ANALYSIS USING PORTER’S

(5 FORCES MODEL)

(Chart – 2)

POTENTIAL ENTRANT

Investment Various Banks

SUPPLIERS Web maintainers NSCL CSDL NSE BSE MCX NCDEX

COMPETITORS ICICI Web Trade Ltd 5paisa.com Kotak Securities Ltd India Bulls MotilalOswal

Securities Ltd

BUYERS Small Investors Franchise/Business Partners HNI’s MF Companies HUF Institutional

Investors

SUBSTITUTES Mutual Funds Insurance Bank FD

SWOT Analysis

1. Strength of Sharekhan

Scale Growing retail network across

279 franchisees + 115 branches *

1950 Share Shops*

575 cities*

Technology Robust platform

Processing 150000 transactions everyday

Scalable to 750000 at very low cost/time

Human

capital

1. 1650 employees and growing low turnover rate

compared to Industry.

2. Standards performance- driven work ethics.

Brands One of the most visible brands since inception among

the top 3 Retail brokers in India.

Table-2(* Data as per the Sharekhan Value Guide, JUNE 2014)

2. Weakness of Sharekhan

Lack of enough promotional measures or advertising

No. of trading centers are less compared to other stock broking companies.

3. Opportunities to Sharekhan

Scope of expansion

Increasing interests and knowledge of people towards share market

4. Threats to Sharekhan

Competition from major stock brokers and new entrance

Introduction of new technology

WHAT DOES SHARE KHAN OFFER?

Share khan offers online trading account through which a customer can buy and

sell shares in an instant from any part of the global trough website. It does not take

account any type of physical restriction of going to the broker for carrying out a

transaction or any type of settlement of payment. It facilitates the customer a

speedy and hassle free transaction. Share khan’s product consists of a 3-in-1

concept, which integrates;

1. Trading account

2. Demat account

3. Linking with the saving account.

Through its trading account, a share khan customer can directly transfer his

fund from his savings bank account affiliated to share khan to his trading account

without any paper work. He can buy and sell shares from the website and also view

the market prices of the shares he trades on the terminal.

To open an account a customer requires filling up a form consisting of

agreements, a passport size photograph, a residential proof, a photo id proof and a

cheque drawn of respective amount in favor of S.S.kantilalishwarlal securities

private Ltd. After opening an account with share khan, a customer will be given

user id, membership password and trading password, which will enable him to

access his account and trade.

RESEARCH DEPARTMENT

All the suggestion, tips and high performance trading recommendation are

received from the research team of share khan consisting of 38 dedicated analysts

who have years of working experience in the industries that they track, and a

proven track record in using their knowledge of the investment science to deliver

results. Share khan boasts of strike rates as high as 70-90% in booking

recommendations in the money. “The company believes in not to lose money and

to make some.”

Depository services.

Portfolio Doctoring

Alpha Delivery

Wealth of content and tools to help you make sound investment

decisions.

Stability and security.

Substantial shareholding by prestigious foreign institution.

Personalized attention.

PRODUCT AND SERVICES OFFERD BY SHAREKHAN

1. Sharekhan Depository Services

Dematerialization and trading in the demat mode is the safer and faster

alternative to the physical existence of securities. Demat as a parallel solution

offers freedom from delays, thefts, forgeries, settlement risks and paper work. This

system works through depository participants (DPs) who offer demat services and

the securities are held in the electronic form for the investor directly by the

Depository. Sharekhan Depository Services offers dematerialization services to

individual and corporate investors. Sharekhan is a registered Depository

Participant (DP) with National Securities Depository Ltd. (NSDL). It has a team of

professionals and the latest technological expertise dedicated exclusively to our

demat department, apart from a national network of franchisee, making our

services quick, convenient and efficient. At Sharekhan, the commitment is to

provide a complete demat solution which is simple, safe and secure.

2. Investment Avenues

a. Equity Shares

Equity shares represent ownership capital. As an equity shareholder,

you have an ownership stake in the company. This essentially means

that you have a residual interest in income and wealth. Perhaps, the

most idealistic among various investment avenues, equity shares are

classified into the blue chip shares, growth shares, income shares,

cyclical shares, speculative shares by stock market analysts.

3. Mutual Funds:

Instead of directly buying equity shares and/or fixed income instruments, you

can participate in various schemes floated by mutual funds which, in turn invest in

equity shares and fixed income securities.

4. Life Insurance:

In a broad sense, life insurance may be viewed as an investment. Insurance

premiums represent the sacrifice and the assured sum of the benefits.

5. Precious Objects:

Precious objects are items that are generally small in size but highly valuable in

monetary terms. Some important precious objects areGold and Silver, Precious

stones or Art objects

6. Financial Derivatives:

The most important financial derivatives from the point of view of investors are;

Options

Futures

7. Commodity:

Today the business is not limited to our area only. Where the production is less

but, demand is comparatively high prices of the product will go up. On the

contrary where the production is high but demand is comparatively low the prices

will go down.

If sellers and buyers come together at a place then it will create a market.

Here against one seller there will be more than one buyer. In this market

buyers will come across the country for transactions.

In this market not only producer and seller are included but arbitrageur,

speculator, and hedger can tread. In this way the total area of market will

become broad.

In our country agricultural products from 25% of GDP. Total turnover of

commodity of market is nearly Rs.1, 10,000 corers. In which 60,000 corers

comes from agriculture and left is coming from coal, crude, etc.

Today in our country most of the trade is done in unorganized market. In the

market current and future contracts are done. Promissory contracts have been

started science 1875. But due to some restriction it was not properly worked.

Presently nearly in 122 commodities tread is being done.

8. Currency

Currency futures are standardized foreign exchange contracts traded on a

recognized stock exchange to buy or sell one currency against another on a

specified future date, at a price specified on the purchase or sale date. It is a

contract to exchange one currency for another currency at a specified date and a

specified rate in the future. Therefore, thebuyer and the seller lock themselves into

an Exchange Rate for a specific value or delivery date.

There are three participants of currency:

Hedgers

Hedgers face risk associated with the price of an asset.

They wish to eliminate or reduce the price risk to which they are

already exposed.

They use futures or options markets to reduce or eliminate this risk.

Speculators

Participants who wish to bet on future price movements of an asset.

Futures and Options contracts can give them leverage(i.e. by putting

in small amounts of money upfront, they can take large position in the

market)

As a result of this leveraged speculative position, they increase the

potential for large gains as well as large losses.

Arbitragers

They work for making Profits by taking advantage of discrepancy

between prices of the same product across different markets.

They profit from price differential existing in two markets by

simultaneously operating in two different markets

e.g. If they see the future price of an asset getting out of line with the

cash price, they would take offsetting position in two markets to lock

in the Profit.

MARKETING DEPARTMENT

The main aim of marketing activities at Sharekhan is that the customer should

get enough guidance to join the company and how he can get the best service than

any other stockbroker. There is an officer for handling the marketing activities

followed by two executives and it is not limited to them but the other people are

also having some responsibilities to increase the no. of clients and retain them by

providing them the services needed by them.

There are many services those are designed such that the specific target

segments of the customers are covered and the products are positioned in the minds

of customers as the best one in India. The services are as given below:

Sharekhan is India’s leading national network of stock-broking outlets. It is

having the largest retail distribution chain in India. Sharekhan is not only a share-

broking firm, but it avails of various services and other financial products to its

clients.

1. Offline Trading facility

2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading

and NEAT, i.e. National Exchange Automated Trading)

3. Free access to investment advice from Sharekhan’s Research team.

4. Derivatives trading, i.e. Futures and Options (through NEAT F&O)

5. Internet based online trading.

6. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc

FREE ACCESS TO INVESTMENT ADVICE THROUGH R&D

The Research and Development at Sharekhan is done at its Head office

Mumbai. From there it forwards the relevant data and tips on particular shares and

scripts at the relevant time. The R&D department Head Mr. HemangJani forwards

all the details regarding all stocks and scripts to all the branches through internet.

At the end of each trading day there is a Teleconference, through which the R&D

department Head Mr. HemangJani talks with each Branch heads and discusses

about each day’s closing position and shows their predictions about next day’s

opening position. The quarries regarding stock positions and other relevant matter

of the branch heads of each branch is being solved through teleconference. The

various publications of Sharekhan viz. Commodities Buzz, Commodities Beat,

Commodity Trader’s corner, Sharekhan Xclusive, etc. are being prepared by the

research team of Sharekhan made up of highly experienced people from diverse

field

ONLINE IPO

Online IPO (Initial Public Offering) is a new service started by Sharekhan

for providing the application form of any company’s issues of just like the TCS

issue can be subscribed by filling an online form to reduce the paper work and the

fund transfer facility is also provided to the clients for transferring the funds

online. It is given on its web-site for helping the clients who are not able to collect

the forms manually and the speed of filling and reducing the risk of misplacing of

forms, not reaching in time, etc.

MARKETING MIX

The marketing mix of Sharekhan is an excellent example we have seen in

the industry because no other brokering organization has such products to target

the investors of different minds, incomes and aims. There is an objective of

satisfying the customer as to make him delighted with affordable prices and

convenient services. The fourth P of the marketing mix is the best at Sharekhan in

India because the total no. of share shops are widespread all over to have the

maximum contacts and awareness about Sharekhan, and we can say that it has

achieved that because it is having the maximum turnover than any other broker in

India. The Classic, Speed Trade and Speed Trade Plus are the trading products,

which are one of the bests in the market.

The marketing is done based on leads generated through the web contact;

tele-contact and personal contact with the customer and is a planned procedure to

find out new customers. The marketing management is carried out in an excellent

way at Sharekhan.

PRODUCTS OF SHAREKHAN

Sharekhan‟s products are basically divided into online and offline products.

Other Services:

1. Equity Trading

2. Depository Services

3. Commodity Trading

4. Derivative Trading (F&O)

5. Mutual fund

6. Portfolio Management Services

7. IPO

8. Insurance

9. Currency

SHAREKHAN

Trade tiger

On - Line

Classic Speed Trade

Other ServicesOff - Line

Dial and Trade

10. NSEL

OFF-LINE TRADING ACCOUNT:

The Off-Line account is trading account through which one can buy and sell

through his/her telephone or by personal visit at sharekhan shop. This a/c is for

those who are not comfortable with computer and want to trade.

ON-LINE TRADING ACCOUNT:

The Online trading facilities provided by Sharekhan is basically divided into

two types of accounts, viz. Classic Account and Speed trade Plus and Streamer.

1. Classic Account

The CLASSIC ACCOUNT is a Sharekhan online trading account, through which

one can buy and sell shares through our website www.sharekhan.com in an instant.

Along with enabling access for you to trade online, the CLASSIC ACCOUNT also

gives you our Dial-n-Trade service. With this service, all you have to do is dial 1-

600-22-7050 to buy and sell shares using your phone.

9 Features of the CLASSIC ACCOUNT that enable you to invest effortlessly-

1. Online trading account for investing in Equities and Derivatives via

sharekhan.com

2. Integration of: Online trading + Bank + Demat account

3. Instant cash transfer facility against purchase & sale of shares

4. Reasonable transaction charges

5. Instant order and trade confirmation by e-mail

6. Streaming quotes

7. Personalized market watch

8. Single screen interface for cash, derivatives and more

9. Provision to enter price trigger and view the same online in market watch

2. Speed Trade:

SPEEDTRADE is an internet-based software application that enables you to

buy and sell shares in an instant. It’s ideal for active traders and jobbers who

transact frequently during day's trading session to capitalize on intra-day price

movements.

Speed Trade also provides the features of and functionality of trading in

derivatives from the same single-screen interface.

7 Features of Speed trade Plus that enable you to trade effortlessly-

1. Instant order Execution & Confirmation

2. Single screen trading terminal

3. Real-time streaming quotes, tic-by-tic charts

4. Market summary (most traded scrip, highest value)

5. Hot keys similar to a brokers terminal

6. Alerts and reminders

7. Back-up facility to place trades on Direct Phone lines

A/C Opening Charges Rs.1000 (onetime Charge).

For 1st Year Demat A/C is Free, from 2nd Year AMC charge is 400

per/year.

ShareKhan has tie up with 13 banks through which one can transfer or

withdraw his fund online. Which are as follows:

1. HDFC Bank

2. IDBI Bank

3. AXIS Bank

4. OBC Bank

5. CITY Bank

6. Indusind Bank

7. Union Bank of India

8. ICICI Bank

9. SBI Bank

10.BOI Bank

Anyone who have A/C either of above banks they can use this facility.

Otherwise one has to make fund transfer or withdraw by cheque.

PROMOTION

Promotional activities at Sharekhan are done by web, e-mails and personal

contact. Sharekhan is also organizing seminars and presentations and promotes its

services to the clients. It is spending Rs.20000 per month for promotional

activities.

As explained earlier, Sharekhan is having the largest distribution chain of retail

outlets of share shops. And it can be seen also because there are 180 share shops

in 90 cities, which gives the maximum awareness to Sharekhan. The distribution

of Sharekhan is also proved by its turnover and awareness among the investors in

the stock market.

The marketing strategies followed by Sharekhan at this point are as given below:

The excellent marketing mix i.e., the Product-Price-Place-Promotion and for

services additional 3Ps viz. People, Process and Physical evidence, are

managed according to the needs of the customers and try the best to deliver

the maximum value to the customers for what they pay a price.

The HR and Operations are one of the best at Sharekhan to help the

customers for getting the needs fulfilled with a family culture and

atmosphere of harmony, peace and brotherhood and it is focusing on the

specific segments like HNI, Delivery-based and Intra-day trader

FINANCE DEPARTMENT

Like blood is the most important factor in our body, Finance is the blood of

any business. Finance is needed for all the activities like production or services as

well as their distribution. The finance department directly influences all the

functions of the other departments. Also finance has to give equal importance to all

departments. Finance is that administrative area or set of administrative function in

an organization may have the means to carry out its objective as satisfactorily as

possible. Sharekhan has special accounts department for separate calculation of

pay-in and pay-out of funds according to the client’s Profit/Loss. Finance

management is done at Sharekhan is done by managing the stocks in the demat

accounts and funds in the margin & trading

Finance is the lifeblood of an organization to continue its activities and the

finance management at Sharekhan can be divided into two major parts viz. DP

(Depository Participation) and Accounts management, which are shown in the

figure given above.

FINANCE

DP ACCOUNT

DP is treated as a separate department at Sharekhan and is covered in the

back office management in the organization structure. In simple words, DP means

providing the facility to the clients for managing the stock bought/sold by them.

DP covers two major terminologies viz. settlements and the auction which is a

part of managing demat account. Settlements as defined by SEBI (Securities

Exchange Board of India) are T+2, currently and it means that the demat account

of the clients are prone to be sufficient for selling a script with no debit at all, i.e.,

the account must have the sold amount of stock to fulfill the settlement after 2 days

from trade-day. The settlements for Day-Traders is not needed because they

buy/sell stocks in that particular day, only the delivery trades are needed to be

settled because if you sell 1000 shares of, say SAIL then your account must have

the stock before you sell it or it must be there in you demat before the next days

trading begins (market opens). Generally, the timings are 9:30 and 3:00 as a

deadline for the client and he must provide the stock for giving a delivery to the

buyer. The chart show the total transaction between two clients:

The chart shows the process that the request for selling and buying passes through

the DPs of the respective clients and finally the exchanges like SKSE (Saurashtra

Kutch Stock Exchange) becomes the controlling intermediary for the delivery of

stocks and this process is done in two days. Nowadays, as banks are becoming fast

for E-Fund Transfer (EFT) and Phone-banking is getting more popularity, SEBI is

thinking to make the financial market of India to have a maximum speed of

C DP (Sharekhan) E DP C

transactions just like the other nations in the world and proposing for T+1

settlement scheme but the system is not enough competent for that thing.

The client, if not capable of providing the delivery of say, 1000 shares of

SAIL then the Auctions are initiated by the exchanges and the client has to pay for

the price prevailing in the market with 4-5% penalty. The penalty can go on

maximum to 20% more than the market price of the sold stock. Generally, it is

known as a buying auction and a same kind of auction is for selling the stock for

which the buyer was proved unable to pay the price is carried out by exchange,

known as the selling auction. And a debit or credit note is provided in the

respective case of auction to the clients, i.e., for buying auction debit note is given

on the T+4 basis and in case of selling auction the credit note is given on T+5

basis. There are two types of auctions called as Internal auctions & Market

auctions, the internal auctions are defines as the auctions carried out between the

other shops of Sharekhan and market auctions are those as explained earlier, the

auction carried out in the market.

This is all about settlements but now switch to funds management or

accounts management at Sharekhan. The accounts are different that is the margin

a/c for deposits of the client and trading a/c for which Profit/Loss are settled. The

collection of funds from the clients who had a debit balance or made a loss are

made on the next day of trading and the payments to the profiting traders are made

after two days of trading because the cheques are received from H/O and then pay-

out is done and Pay-in is as explained that amounts to be taken from the clients. In

this way, accounts are managed but in case if the client is unable to pay, the

deposit from the margin a/c is cut down to the payments and in case if a client is

having a credit balance in F&O trading though he had a debit balance in cash-NSE

& BSE trading, a JV request is sent to H/O for totaling the three balances. The

main aim for accounts management is that the clients must have a credit or no debit

on the next day.

The DP services provided by Sharekhan are falling under the regulation of NSDL

(National Securities Depository Limited) and CDSL (Central Depository

Services Limited), organizations governed by SEBI to regulate the depository

services in the interest of the investors. So, the financial market in India is

governed by Ministry of finance under which two major bodies viz. SEBI & RBI

are covered and under RBI the banks and other financial institutions are covered

while SEBI covers the exchanges, NSDL & CDSL and the whole DP service

providers with the brokers to the investors.

In this way we have gained a meaningful knowledge about India‟s financial

market and its structure from this training at Sharekan. In this way, the finance

function is carried out at Sharekhan by following the guidelines given by SEBI.

And the company is a private limited one with its own policies for disclosing its

financial statements, so we are not able to give any figures for showing the

financial position of the company.

Winner of

Chip magazin

e’s ‘Best Financial Website Award’

HUMAN RESOURCE DEPARTMENT

Human resource is the crucial resource that a company can use to grow with

the work of the employees. HRM activities at Sharekhan start form induction to the

specific job training and are done by H/O at Mumbai. H/O takes a written test and

selection interview for filling up vacancies in branches but the recruitment is done

by the branch itself and the selection is performed by H/O from the screened

applicants.

Any new recruit is firstly inducted to the company and sent to T & D

department that is covered under HRD and T & D programmes makes employees

aware about all the activities/jobs within the department he/she is to be recruited.

Then the specific job training is provided at H/O and the person has to keep in

touch with the concerned department at H/O on internet because he/she has t solve

many conflicts arising in the investor‟s mind and to have an up-to-date information

regarding the procedures and any new facilities or policies to resolve the problems

of the clients.

HRP (Human Resource Planning), HRIS (Human Resource Information

System), Recruitment & Selection, Career planning and development, Assessment

& development of employees for Performance appraisal, etc. activities of

managing the HR at Sharekhan is maintained in a way to meet the requirements.

The corporate culture at Sharekhan is maintained in such a way that the people are

helpful to each other and eager to get the work done as soon as possible with a co-

operative thinking. An additional Rs.10000 is provided for each outlet of

Sharekhan to motivate its employees by performance appraisal and also the heads

of each departments and branches has to go through a 3606 performance appraisal

for maintaining the consistency in growth of the company.

In the end we can say that the human resource of Sharekhan is a best

managed and used for the continuous growth and development of the company for

its future plans to be achieved time-to-time.

OPERATIONS STRATEGY AT SHAREKHAN

Operations strategies are implemented in Sharekhan as shown in the chart

given above and the main points of consideration are Efficiency, Dependability,

Quality and Flexibility.

The points demand a facility mission that is made up of process, capacity,

facilities, vertical integration, and infrastructure facilities provided to get the

desired outputs as per the plan.

The main aim of the operations strategy at Sharekhan is that the efficiency of

the organization and high level of it is desired outputs with low costs, i.e.,

productivity with effectiveness. Quality should be high and consistent in delivering

services; Flexibility is related with fast introduction of new services and providing

a wide range to select an option to the customer. This is facilitated by the process

of operations, capacity/ability of the organization, competitive advantages, vertical

integration and the infrastructure created by the firm.

Sharekhan plans the strategies to get a working plan from it and the planning

is done from top-to-bottom level, i.e., national level, regional level, divisional level

and the branch level planning is carried out by the managers.

In this way, the Operations are managed with the best efforts in a direction

that is to facilitate future plans by achieving success in time and create milestones

in the industry by driving the company with excellence.

RESEARCH OBJECTIVE

The main objective of the study is to check consumer behavior towards online trading in stock market among the people of Rajkot City. The objective of any research is basically divided into two categories.Primary Objectives

To study the “consumer behavior toward online trading in stock market”.

Secondary Objectives

To study trading frequency through online trading

To study investment decision making in online trading

To study over all influence of online trading to the security market.

RESEARCH METHODOLOGY

SOURCES OF DATA:

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

and research plan chalked out. While deciding about the method of data collection

to be used for the study, first of all the sources of data must be very clear.

There are basically two sources of data.

Primary Data Source:

The primary data are those, which are collected afresh for the first time for the

problem solution, and thus happen to be original in character. It may be obtained

from individual, families and representative or from organization.

Secondary Data Source:

The secondary data are those which have already been collected by someone

else and which have to decide which have already been passed through the

statistical process. Externally, these sources may include books or periodicals

reports, data services and computer data banks.

In the context of the project study, the source of data used by me for this project

is primary type of sources. The primary data source is the respondents who have

filled the questionnaire.

SAMPLING PLAN:

Sampling Unit:

The sampling Unit is the entity to which we have to follow during the whole

research study.In the context of the project study, the sampling unit primarily

consists of Individuals who may be Businessmen, Professional, Government

employee, Employees working in the private firmAnd other persons.

Sampling Size:

It plays an important role in the research. Samples are representative of the

whole population. This refers to the no. of items to be selected from the universe to

constitute a sample.

In the context of the project study, 75 respondents are chosen keeping in view

the above constrains. Attempts have being made to see that samples are chosen

from different strata.

1. Sampling Methods:

There are various methods of sampling in the context of my project study I have

selected Non-probability Sampling Method. And under that, I have taken

Convenience Sampling. Under this I prepared a simple questionnaire to collect the

information.

2. Data Collection Method:

Data collection is done basically in three ways: Observation Method, Survey

Method and Questionnaire. And in the context of my project study, I have selected

questionnaire method for collecting the data.

3. Data Analysis & Interpretation:

Data analysis is based on the data collected by the questionnaire. From the

collected data findings are extracted. The data is tabulated and frequency

distribution chart is prepared.

i. Data Analysis By Charts:

Charts make easy to understand. Therefore I have use pie chart and histogram to

present the data.

REVIEW OF LITERATURE

1. Intention To Adopt Online Trading: Identifying The Future Online

Traders

Yinghao Mickey Li, Jinkook Lee and Brenda J. Cude

This paper is based on the first author's thesis, which won the 2002 American

Council on Consumer Interests thesis award. The dataset was provided to the

second author by Larry Cohen, the director of Consumer Financial Decisions of

SRI Consulting Corporation.

This paper proposes that investors' intention to adopt online trading in the future is

influenced by investment, psychology, technology and demographic factors. Data

from the 2000-01 Macro Monitor database are employed in this study. Macro

Monitor is a biennial survey conducted by the Consumer Finance Decision section

of SRI Consulting Corporation. The sampling method of the survey is two-stage

random sampling. The first step is a stratified disproportionate random sampling.

And the second step is a simple random sampling. Sample size was 3759

household in 2000 in U.S.

Among the investors, there were 389 current online investors and 1,066 current

offline investors. On average, online investors were younger than offline investors

and had more education than offline investors. Online investors traded 29.2 times a

year, while offline investors traded only 7.1 times a year. In terms of trading

volume, online investors also traded a larger sum of money than offline investors.

2. Impact of online trading on customer satisfaction in Tehran stock

exchange

DelbarJafar Pour, Lulea University of technology - master thesis,

continuation courses - marketing and e-commerce.

The aim of the study is to indicate how Indian traders rank quality factors and if

online trading system could enhance their satisfaction level or not?

For research distributive and explorative research designs are used and for data

collection survey method is used. There were 300 invitees were invited for the

purpose of survey.

Result shows that there is a meaningful difference between traders’ satisfaction in

conventional stock exchange. And existence of online trading system in stock

exchange can raise the degree of traders’ satisfaction.

RESEARCH ANALYSIS AND INTERPRETATION

1. Different age group of respondent:

AGE %

Below 30 54

31 – 45 32

46 – 60 11

Above 60 3

From the above chart we can know that young persons are interested in

investing in stock market and also it shows their risk taking willingness and

accurate decision making ability. If look at adult group then they are also little bit

taking interest in stock market.

55%32%

11%3%

Chart Title

AGEBelow 3031 – 4546 – 60Above 60

2. Education:

EDUCATION  %

Undergraduate 23

Graduate 48

Post graduate 29

Above chart shows that more graduate people takes initiative towards stock

market working than under graduates and post graduates It can also be derived

from the chat 4 that people who are younger and graduates would like to work in

stock market.

Undergraduate Graduate Post graduate0%

10%

20%

30%

40%

50%

60%

23%

48%

29%

Education

3. Occupation:

OCCUPATION %

Professional 20

Businessman 40

Working in Pvt. Firm 29

Government Employee 11

As businessmen are more accurate decision makers and also risk takers,

therefore they takes more interest in stock market working. Compare to

professional, government employee and working in private firms. While

employees working in private Firms are also growing as stock market investors.

20%

40%

29%

11%

Occupation

ProfessionalBusinessmanWorking in Pvt. FirmGovernment Employee

4. Where do you invest your savings?

 Use of Saving Option %

Bank FD 10

Mutual Fund 28

Shares / Equity 42

Insurance 15

other 5

Bank FD Mutual Fund Shares / Equity Insurance other0

5

10

15

20

25

30

35

40

45

If we evaluate all the above charts then we can make note that younger,

graduate and businessmen are stock market investors, therefore it directly implies

more use of their savings in stock market as shown in chart. While about 13-18%

of saving goes tobank FD, mutual fund, insurance. And due to increasing

knowledge, risk taking willingness and changing market trend, very less people

goes to postal schemes investment.

5. Do you participate in equity market? If yes, what best describes you as

 Participation as % No of

participan

t

Investor 65 45

Trader 35 25

% of participants

InvestorTrader

As investment is safer than trading, therefore more portion of the market prefers

investment to trading, in spite of existence of more risk takers. Portion of trading is

not that much of less than investment, but due to involvement of more loss of

money enables less people to go for it.

6. In your opinion, which medium is the more reliable for trading in stock

market?

 Medium for Trading %

Through Broker 36

Online Direct Participant 64

Increased use of internet technology has lead people to go for more online

direct participant. Online direct participant also gives some benefits of time and

cost saving, less paper work and fast decision making.

36%

64%

Medium for Trading

Through BrokerOnline Direct Participant

7. Out of following online traded products, in which you trade regularly?

Online Traded Products  %

F & O 34

Cash 38

Commodity 21

Currency 7

As people more prefer investment in cash therefore is more online traded

product F n O and commodity are traded nearby 21-38%. While currency is less

preferable by respondents due to high risk involvement.

34%

38%

21%

8%

Chart Title

F & OCashCommodityCurrenncy

8. Why do you prefer online trading?

Preference %

Online Fund Transfer 26

Comfortable Trading 27

No Geographical Boundary 23

Paperless Transaction 26

From the above chart we can conclude that 35% respondent are doing online

trading due to online fund transfer while 26% are because of the comfortable

trading and 18-21% are doing because of the no geographical boundary and

paperless transaction.

35%

26%

19%

21%

preferance of online trading

Online Fund Transfer

Comfortable Trading

No Geographical Boundary

Paperless Transaction

9. Which online trading platform you prefer the most?

Trading Platform %

Trade Tiger 64

ODIN 8

NOW 9

Trade Racer/ Icici Direct 19

Most of the respondent are prefer the Trade Tiger for the trading than other

because of the different features and options are available in trade tiger and the

technical charts are also there.

Trade Tiger ODIN NOW Trade Racer / ICICI Direct

0

10

20

30

40

50

60

70

64

8 9

19

Trading Platform

10.Which one will influence your online trading decision making?

Influencer % 

Independently 8

Broker/ Agent's Advice 11

News Channels 13

Newspapers 15

Advice of Friends/ Colleagues 13

Internet 14

Well-Known Stock Broking

House

15

Business Magazine 11

From the above chart we can conclude that more of the respondents are

influence through the newspaper or by the well know stock broking house

8%

11%

13%

15%13%

14%

15%

11%

InfluencerIndependently

Broker/ Agent's Advice

News Channels

Newspapers

Advice of Friends/ Colleagues

Internet

Well-Known Stock Broking House

Business Magazine

decision. 14% are from the internet and 11-13% are by the Brokers/ agent’s advice,

business magazine, news channels and friend’s advice. And only 8% are take the

decision by their own.

11.What is the order of importance for you as online market participant?

(Table – 13)

(Chart – 14)

From the above respondent we can say that the 42% are using the online trading

platform for the fast executive system and 35% are because it is much cheaper than

the other ways and 23% are using it due to the user friendly.

42%

35%

23%

Preference in online Market Partic-ipant

Fast Executive SystemMuch CheaperUser Friendly

  %

Fast Executive System 42

Much Cheaper 35

User Friendly 23

12.As an online market participant what is your participant’s status?

Type of Investor  %

Long Term Investor 39

Short Term Investor 33

Intraday Trader 28

Above chart shows that the 39% respondents are want to be a long term

investor which will lead them towards the wealth maximization an 33% want to be

a short term investor and want to earn money in short span of time while the 28%

are the intraday traders.

39%

33%

28%

Type of Investor

Long Term Short TermIntraday

LIMITATIONS

This exploratory research is done in the Rajkot city only and therefore

findings and suggestion given on the basis of this research and cannot be

considered for the entire security market of India.

Due to limitation of time and cost constrains, a sample size of only 75

respondents was chosen.

Data analysis and interpretation done may not be that strong due to small

sample and random sampling method.

And also the views of respondents of Rajkot towards online trading may not

reflect the overall scenario.

Respondents taken for the study were most of from the Sharekhan, therefore

true picture of the stock broking companies can also not be seen from the

study.

FINDINGS

From the research objective following can be interpreted;

40 % of businessmen are risk takers and they prefer trading and out of that

15% were doing intraday trading.

Out of 48% graduate 15% of employees working in private firm and 20%

post graduate working as government employee.

15% of Private firm Employees prefer Bank FD and 40% of Private firm

Employees prefer mutual fund investment compare to others

There were 33% of the businessmen investing in shares out of all the

investors.

35% of businessmen and 34% of Private firm Employees were online traders

Out of all the online traded products 25% of F &O preferred by Private firm

Employees, 29% of equity preferred by businessmen, 15% of commodity

preferred by Private firm Employees and 5% of currency preferred by

Private firm Employees

Out of all the long term investors, 50% were Private firm Employees,

Out of all the short term investors20% were Private firm Employees and

Out of all the intraday traders 40% were businessmen

Thus we say that online trading has gained more attention of today’s generation

and more no. of businessmen and Private firm Employees are taking initiative

towards stock market working.

It can be said that consumer behave rationally, are risk takers and also they prefer

keeping pace with changing technology i.e.; online trading.

RECOMANDATION

As the analysis makes it clear that there is potential market for online trading in the

region of Rajkot, but this market needs to be explored because Stock broking

companies are not able to convert mutual fund investors into stock market

investors. Some of the few recommendations based on the above research are:

From the tests it can be reccomandated to the sharekhan that it should attract

more businessmen and Private firm Employees, because they are the persons

possessing IT infrastructure.

Many people don’t do this business because of the lack of the proper market

knowledge. And hence they should be made aware of the trends of the

market.

People prefer Online trading as a secondary business, because liquidity is

high in this business. Therefore, some steps should be taken to explain this

scenario to all the knowledgeable class by proper marketing.

Trusted brokers get easily online traders because of timeliness and right tips

on trading; therefore Sharekhan should make its brand name strong enough

to convince the customer for online trading through more advertisement.

Online trading requires fast and effective decision making, therefore

company should held regularly seminars, coaching class and make its

customer aware of true extent of risk and return

Try to remove myth of money losing from stock trading from the minds of

people by providing some help in decision making and schemes.

CONCLUSION

The objective of this study is to develop a theoretical model to explain and

predict the stock traders' behavioral intentions to use online trading by using the

concepts of perceived benefit, perceived risk and trust. This study reveals that

perceived risk is a more important influential factor than perceived benefit in

online trading decision making.

However, building a risk-free online stock trading environment is much

more difficult than providing benefits to customers. Online trading companies need

to search for risk-reducing strategies that might assist in inspiring high confidence

in customers. This study suggests that online trading companies should consider

focusing more on the prevention of intrusion, fraud and identity theft.

The current generation of investors is trading very actively by historical

standards. Investors are flush with cash, partly because of a robust economy, and

partly because they are borrowing aggressively. Very active investors are often

making decisions in a situation of high uncertainty. On-line investors have

concentrated their trading in e-commerce and other high-tech firms. Many e-

commerce firms have novel, untested business plans. Many have little or no

earnings.

Online brokers should provide customers with digital receipts or a guarantee

for every transaction in order to increase customers' confidence with regard to

online trading. Customers may be willing to trust in online trading if they're

confident that the service providers stand behind their service.

BIBLIOGRAPHY

Capital Market (Sep 16 – 29, 2013, Vol. XXVIII/15)

Sharekhan Value Guide – June- 2014

Sharekhan Value Guide May – 2014

APPENDICES

1. List of Tables:

Sr. No. Particular Page No.

Table -1 Shareholder & Shareholding Pattern 22

Table -2 Strength of Sharekhan 24

Table -3 Age 53

Table -4 Education 54

Table -5 Occupation 55

Table -6 Saving Option 56

Table -7 Participation as 57

Table -8 Medium of Trading 58

Table -9 Online Traded Products 59

Table -10 Preference 60

Table -11 Trading Platform 61

Table -12 Influencer 62

Table -13 Trading Platform 63

Table -14 Type of Investor 64

2. List of Charts:

Sr. No. Particular Page No.

Chart -1 SSKI Group – Corporate Structure 22

Chart -2 Industry Analysis using Poter’s 5 Force

Model

23

Chart -3 Products of Sharekhan 35

Chart -4 Age 53

Chart -5 Education 54

Chart -6 Occupation 55

Chart -7 Saving Option 56

Chart -8 Participation as 57

Chart -9 Medium of Trading 58

Chart -10 Online Traded Products 59

Chart -11 Preference 60

Chart -12 Trading Platform 61

Chart -13 Influencer 62

Chart -14 Preference in Online Market Participant 63

Chart -15 Type of Investor 64

Questionnaire

1. Name: ………………………………………………………………………

2. Age:

a. Below 30 c. 46-60

b. 31-45 d. Above 60

3. Education:

a. Undergraduate

b. Graduate

c. Post graduate

4. Occupation:

a. Professional c. Working in Private Firm

b. Businessman d. Government Employee

5. Where do you invest your savings?

a. Bank FD

b. Mutual Fund

c. Shares / Equity

d. Insurance

e. Others

6. Do you participate in equity market? If yes, what best describes you as

a. Investor b. Trader

7. In your opinion, which medium is the more reliable for trading in stock

market? (Give rank 1 for most reliable)

a. Through Brokers

b. Online Direct Participation

8. Out of following online traded products, in which you trade regularly?

a. F & O c. Commodity

b. Cash d. Currency

9. Why do you prefer online trading?(Give your rank 1 to the most imp and 4

for the lest imp)

a. Online Fund Transfer c. No Geographical Boundary

b. Comfortable Trading d. Paperless Transaction

10. Which online trading platform you prefer the most?

a. TRADE TIGER

b. ODIN

c. NOW

d. TRADE RACER

e. ICICI Direct

11. Which one will influence your online trading decision making? (Give Rank

1 to the most imp and 8 for the lest imp)

a. Independently

b. Broker/ Agent’s Advice

c. News Channels

d. Newspapers

e. Advice of Friends / Colleagues

f. Internet

g. Well – Known Stock Broking House

h. Business Magazine

12. What is the order of importance for you as online market participants?

Fast executive system

Much cheaper

User friendly

13. As an online market participant what is your participant status?

Long term investor Short term investor Intraday trader 14.Name any online stock broking company that you like to recommend?

TESTING THE HYPOTHESIS