1. A STUDY ON
ONLINE TRADING
At
INDIA INFOLINE LTD.,
HYDERABAD.
Submitted
In the partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
In
DEPARTMENT OF MANAGEMENT STUDIES
By
GOLLAPALLI.HARSHAVARDHAN REDDY
[Reg. No.130A1E0043]
Under the Supervision and Guidance of
Dr. P. BASAVAIAH,M.com., MBA., Ph.D.
DEPARTMENT OF MANAGEMENT STUDIES
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
ANANTAPUR – 515002
INDIA
JULY-2015
2. JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY
ANANTAPUR – 515002
DEPARTMENT OF MANAGEMENT
B O N A F I D E C E R T I F I C A T E
This is to certify that the project report, entitled ‘A STUDY ON ONLINE
TRADING’, submitted to the JAWAHARLAL NEHRU TECHNOLOGICAL
UNIVERSITY, ANANTAPUR in Partial fulfillment of the requirements for the award of
the Degree of MASTER OF BUSINESS ADMINISTRATION is a record of original
research work done by ‘GOLLAPALLI.HARSHAVARDHAN REDDY’, during the
period 6th May, 2014 to26th June, 2014 of his study in the ‘MASTER OF BUSINESS
ADMINISTATION’ at ‘JAWAHARLAL NEHRU TECHNOLOGICAL
UNIIVERSITY ANANTAPUR’, under the supervision of
‘Dr. P. BASAVAIAH M.com., MBA., Ph.D’ and the training report has not formed the
basis for the award of any Degree / Diploma / Associate ship / Fellowship or other similar
title to any candidate of any University.
The results embodied in this thesis have not been submitted to any other
university or institute for the award of any degree or diploma.
Faculty Guide Officer-In charge of MBA
Viva voce examination held on: ______________________
Internal Examiner External Examiner
Date:
Place: ANANTAPUR.
3.
4. D E C L A R A T I O N
I, ‘GOLLAPALLI.HARSHAVARDHAN REDDY’, hereby declare that the
project report, entitled ‘A STUDY ON ONLINE TRADING’, submitted to the
‘JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, ANANTAPUR’, in
Partial fulfillment of the requirements for the award of the Degree of MASTER OF
BUSINESS ADMINISTRATION is a record of original and independent research work
done by me during 1st June to 30th June under the supervision and guidance of ‘Dr. P.
BASAVAIAH M.com., MBA., Ph.D,’ ‘MASTER OF BUSINESS ADMINISTATION,
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY, ANANTAPUR’ and it
has not formed the basis for the award of any Degree / Diploma / Associate ship /
Fellowship or other similar title to any candidate of any University.
Date : Signature of the Student
Place: GOLLAPALLI.HARSHAVARDHAN
REDDY
5. ABSTRACT
Now a day’s all the technological changes are being made in the competitive
environment. In all fields computerization as taken place. In case of stock exchange
also they go for on line trading. So the investors have to be aware of online trading
procedure, in order to know the minute-to-minute changes in trading in stoic exchanges.
The main aim of this study to make the investor aware of the online trading procedures,
and the disadvantages from it . When the investor come to know the changes in the
trading in stock exchanges, then only he can sell or buy the securities which give high
return and in order to minimize the risk. The online trading system displays the overall
changes in the world of trading per second. So the knowledge of online trading is must
for every investor.
The online system displays the graphs of senses, Nifty, and the risk and return of a
security which the investor need to invest and displays the profile of the company,
dividend declare by that company. The main advantage to the investor is that he can
buy and sells shares by sitting at home instead of calling the broker and ordering him to
buy or sell.
Futures or future contracts are transferable specific delivery forward contracts. They are
agreements between two counter parties that fix the terms of an exchange, or that
lock in the price today of an exchange, which will take place between them at some
fixed future dates.
6. ACKNOWLEDGEMENT
I express my sincere gratitude to Dr. B.CHANDRAMOHAN REDDY
B.Tech., M.tech., Ph.D., the Head-in-charge, Department of Management Studies
for his constant support and encouragement.
I would never forget to thank Dr. P. Basavaiah M.com., M.B.A., PhD,
Department of Management Studies for her valuable guidance in preparation of
this project work.
I also thank our faculty members Mr.P.jayarami reddy M.B.A., Ph.D.,
K.Rajesh sam M.B.A.,, Ms. k.sreelatha M.B.A.,, Dr.B.C.Lakshamanna
M.B.A., PhD., and Ms.R. Nagaveni M.B.A., for their keen interest and
constructive criticism, which played vital role in completing my project on time.
It’s most pleasant duty to record my gratitude to Mr. P. Manohar, Asst.
Manager Finance of India Infoline ltd. in Hyderabad and who permitted to do
the project work and also for their continuous support and encouragement and
their guidance.
I would like to express my heartfelt thanks to all the respondents who gave
valuable information to me.
I also extend my thanks to all my family members and my friends who helped
me in completing this project work successfully.
7. CHAPTER NO. DESCRIPTION PAGE
NO.
CHAPTER I INTRODUCTION………………………………………………….. 07-11
CHAPTER II INDUSTRY PROFILE& COMPANY PROFILE………….. 12-42
CHAPTER III RESEARCH METHODOLOGY…………………………………. 43-45
CHAPTER IV DATA ANALYSIS AND INTERPRETATION………………… 46-63
CHAPTER V FINDINGS, SUGGESTIONS & CONCLUSION………………. 64-70
ANNEXURE & BIBLIOGRAPHY
ANNEXURE
BIBLIOGRAPHY
cONTENTS
8. LIST OF TABLES
TABLE NO PARTICULARS PAGE
NO
2.1 IIFL SERVICES
4.1 PROCESS OF ONLINE TRADING
4.2 CSR FACILITIES IN IIFL
4.3 IN WHICH SERVICES IIFL IS BEST
4.4 WHICH TYPE OF TRADING IS GIVING GOOD RESULTS
4.5 ANTICIPATION OF MARKET FLUCTUATIONS IN IIFL?
4.6 PORTFOLIO CONSTRUCTION IN IIFL?
4.7 IS ONLINE TRADING GIVES LIVE EXPERIENCE?
4.8 ARE YOU HAPPY WITH SEBI REGULATIONS?
4.9 INSIDER TRADING ACTIVITIES IN INDIA (IN THESE DAYS)
4.10 ROLLING SETTLEMENT SYSTEM IN INDIA
4.11 REALLY “F” GROUP SHARE GIVE GOOD INTEREST
4.12 BROKERAGE FEE IN IIFL
4.13 BROKERAGE FACILITIES IN INDIA
4.14 ISSUE SETTLEMENT SYSTEM IN IIFL
4.15 IN WHICH PORTFOLIO YOU HAVE BEEN INVESTING?
4.16 IS SEBI AND IIFL PROVIDING INVESTOR AWARENESS
PROGRAMMES IN ALL AREAS?
4.17 DLF LTD
4.18 ACC LTD
4.19 BHEL LTD
4.20 HERITAGE FOODS LTD
9. LIST OF CHARTS
CHART NO PARTICULARS PAGE NO
4.1 CSR FACILITIES IN IIFL
4.2 IN WHICH SERVICES IIFL IS BEST
4.3 WHICH TYPE OF TRADING IS GIVING GOOD RESULTS
4.4 ANTICIPATION OF MARKET FLUCTUATIONS IN IIFL?
4.5 PORTFOLIO CONSTRUCTION IN IIFL?
4.6 IS ONLINE TRADING GIVES LIVE EXPERIENCE?
4.7 ARE YOU HAPPY WITH SEBI REGULATIONS?
4.8 INSIDER TRADING ACTIVITIES IN INDIA (IN THESE DAYS)
4.9 ROLLING SETTLEMENT SYSTEM IN INDIA
4.10 REALLY “F” GROUP SHARE GIVE GOOD INTEREST
4.11 BROKERAGE FEE IN IIFL
4.12 BROKERAGE FACILITIES IN INDIA
4.13 ISSUE SETTLEMENT SYSTEM IN IIFL
4.14 IN WHICH PORTFOLIO YOU HAVE BEEN INVESTING?
4.15 IS SEBI AND IIFL PROVIDING INVESTOR AWARENESS
PROGRAMMES IN ALL AREAS?
4.16 DLF LTD
4.17 ACC LTD
4.18 BHEL LTD
4.19 HERITAGE FOODS LTD
11. INTRODUCTION TO ONLINE TRADING
THE ACTUAL DEFINITION OF “ONLINE TRADING” IS:
“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
stockbroker’s website through your internet enabled PC and place orders through the
broker’s 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.
Online trading means buying and selling securities or currencies over the internet, or
through a broker's proprietary software that works through the Internet. The use of online
trading is increasing with the introduction of affordable high-speed computers and
internet connections.
Online trading definition is a basic understanding of online trading processes. Since the
invention of Internet people have been able to do practically everything virtually. Due to
the Internet online trading has become one of the most popular ways to trade as far as
stock trading turned out to be as available to independent investors as possible. Online
trading gives both beginners who've just had a single day trading course and advanced
traders an opportunity to trade stocks, options, FOREX and futures all over the world
without physical presence of a broker and with much lower commissions, because
everything is done online.
Stock online trading is based on buying and selling stocks. Today stock online trading is
the most popular method to trade owing to computers, because information on stocks was
available only to brokers and you had to call a broker and pay brokerages for buying or
12. selling stocks and now this information is widely available. Since these modifications
occurred traders can control their investments with the help of Internet.
Stock option online trading is based on buying and selling options and very perspective
financial products. This system gives traders a perfect chance to control and protect their
stocks and generate their investment benefits as far as an option is an agreement to buy or
to sell certain financial product. The main idea of stock option online trading is that an
option you buy has its fixed price and time limitation.
FOREX online trading is another speculative online business based on buying and selling
foreign exchange, gaining profits due to rise and fall of currency rate, namely on the
difference between the currency pairs price.
Futures online trading is another kind of online trading which is based on buying and
selling financial products (commodities, labour, currency) by means of futures contracts.
Such contract specifies a particular date (delivery date or final settlement date) in the
future when a certain financial product should be bought or sold and this product's price.
Speaking about online trading it's necessary to say about safe online trading. It's obvious
that in order to trade online you'll have to open your online account and choose online
trading software. When you choose a certain website for your future account, you should
search for information about a company you are going to fix upon and make sure that it
has a trustworthy reputation. The same refers to choosing online trading software,
platform and online trading portal.
The online trading is simply defined as “dealing securities on net”. In online trading
system, from a single location anywhere, can service investors across the country.
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,
live quotes, market research and news, etc. to attract more investors.
13. Brokers will offer online broking and relationship management by providing
and offering 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 initial
public 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.
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 broker’s 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,
Investor protection,
Creation of a fair and efficient market, and
Reduction of the systematic risks.
14. Requirements for net trading:
For investors:
1. Installation of a computer with required specification
2. Installation of a modem
3. Telephone connection
4. Registration for on-line trading with broker
5. A bank account
6. Depository account
7. Compliance with SEBI guidelines for net trading
The following should be produced to get a demat account and online trading
account:
As identity proof & address proof any one of the following:
Voter ID card
Driving license
PAN card( in case of to trade more than 50000)
Ration card
Bank pass book
Telephone bill
Other requirements, which are necessary
First page of the bank pass book and last 6 months statement.
Bank manager’s signature along with bank’s seal, manager registration code on
photograph.
15. 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.
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.
16. Internet trading provides total transparency between a broker and an investor in the
secondary market. In the open outcry system, only the broker knew the actually
transacted price. Screen based trading provides more transparency. With online
trading investors can see themselves the price at which the deal takes place.
The time gap has narrowed in every stage of operation. Confirmation and execution
of trade reaches the investor within the least possible time, mostly within 30 seconds.
Instant feedback is available about the execution. Some of the websites also offer;
News and research report
BSE and NSE movements
Stock analysis
IPO and mutual fund centers
ADVANTAGES OF ONLINE TRADING:
Online trading has made it possible for anyone to have easy and efficient access to
more reports and charts than it was previously possible if one went to any brokers'
office. Thus we have access to a lot more information online.
Online trading has let room for smaller organizations to compete with
multinational organizations since it is no longer a leg it issue. Being online does
not identify the size of any particular organization, therefore, this additional
power to the underdogs.
Online trading has allowed companies to locate themselves where they want as
physical location is not an issue anymore. Companies can establish themselves
according to their gains and losses, for instance where tax (sales and value added
taxes) is best suited to them.
Online trading gives control to individuals and they can exercise it over accounts
thus comprehend what is going on when they trade. It is like going back to school
and re-educating oneself on how to trade online.
Individuals’ benefit by saving comparatively a lot more when trading online as
the cost per trade is less.
17. INVESTORS REASONS TO TRADE ONLINE:
They have control over their accounts, can make their own decisions and don’t
have to give reasons for their actions. They are independent.
They have a reason to participate in the market and learn about it.
It is interesting, cheap, easy, fast, and convenient.
A lot of information is online so they can keep up-to-date with what is happening
in the trading world.
The immediate impact will be competition and benefits will accrue to the
investors.
It will lead to brokerage commissions going down and brokers striving to increase
business afloat.
Investors will now go to place, which have better trading conditions and also
members to offer them better facilities.
They have access to numerous tools to invest, and can create their own portfolio.
STOCK EXCHANGES 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.
18. 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 Ahmedabad set up in 1894. These were organized as voluntary non-profit-
marking 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
securities contracts (control) act of 1925 used to regulate trading in securities. Under this
act, the Mumbai stock exchange was recognized in 1927 and Ahmedabad 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 committee’s
recommendations and public discussion, the securities contract (regulation) act became
law in 1956.
Various Stock Exchanges in India:
At present there are 23 stock exchanges recognized under the securities contracts
(regulation), Act, 1956.
19. 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
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 12th 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.
20. 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 take over 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: (STOCK EXCHANGES):
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.
All recognized stock exchanges will have to inform about transactions within 24
hrs.
21. TYPES OF ORDERS:
Buy and sell orders placed with members of the stock exchange by the investors. The
orders are of different types.
Limit orders: Orders are limited by a fixed price. E.g. ‘buy Reliance Petroleum at
Rs.50.’Here, the order has clearly indicated the price at which it has to be bought and
the investor is not willing to give more than Rs.50.
Best rate order: Here, the buyer or seller gives the freedom to the broker to execute
the order at the best possible rate quoted on the particular date for buying. It may be
lowest rate for buying and highest rate for selling.
Discretionary order: The investor gives the range of price for purchase and sale. The
broker can use his discretion to buy within the specified limit. Generally the
approximation price is fixed. The order stands as this “buy BRC 100 shares around
Rs.40”.
Stop loss order: The orders are given to limit the loss due to unfavorable price
movement in the market. A particular limit is given for waiting. If the price falls
below the limit, the broker is authorized to sell the shares to prevent further loss. E.g.
Sell BRC limited at Rs.24, stop loss at Rs.22.
Buying and selling shares: To buy and sell the shares the investor has to locate
register broker or sub broker who render prompt and efficient service to him. The
order to buy or sell specifying the number of shares of the company of investor’s
choice is placed with the broker. The order may be of any type.
Share groups: The scrips traded on the BSE have been classified into
‘A’,’B1’,’B2’,’C’,’F’ and ‘Z’ groups. The ‘A’ group represents those, which are in
the carry forward system. The ‘F’ group represents the debt market segment (fixed
income securities). The Z group scrips are of the blacklisted companies. The ‘C’
group covers the odd lot securities in ‘A’, ‘B1’&’B2’ groups.
22. ROLLING SETTLEMENT SYSTEM:
Under rolling settlement system, the settlement takes place n days (usually 1, 2, 3 or
5days) after the trading day. The shares bought and sold are paid in for n days after
the trading day of the particular transaction. Share settlement is likely to be completed
much sooner after the transaction than under the fixed settlement system.
The rolling settlement system is noted by T+N i.e. the settlement period is n days
after the trading day. A rolling period which offers a large number of days negates the
advantages of the system. Generally longer settlement periods are shortened
gradually.
SEBI made RS compulsory for trading in 10 securities selected on the basis of the
criteria that they were in compulsory demat list and had daily turnover of about Rs.1
crore or more. Then it was extended to “A” stocks in Modified Carry Forward
Scheme, Automated Lending and Borrowing Mechanism (ALBM) and Borrowing
and lending Securities Scheme (BELSS) with effect from Dec 31, 2001.
SEBI has introduced T+5 rolling settlement in equity market from July 2001 and
subsequently shortened the cycle to T+3 from April 2002. After the T+3 rolling
settlement experience it was further reduced to T+2 to reduce the risk in the market
and to protect the interest of the investors from 1st April 2003.
Activities on T+1: conformation of the institutional trades by the custodian is sent to
the stock exchange by 11.00 am. A provision of an exception window would be
available for late confirmation. The time limit and the additional changes for the
exception window are dedicated by the exchange.
The exchanges/clearing house/ clearing corporation would process and download the
obligation files to the broker’s terminals late by 1.30 p.m on T+1. Depository
participants accept the instructions for pay in securities by investors in physical form
upto 4 p.m and in electronic form upto 6 p.m. the depositories accept from other DPs
till 8p.m for same day processing.
23. Activities on T+2: The depository permits the download of the paying in files of
securities and funds till 10.30 a.m on T+2 from the brokers’ pool accounts. The
depository processes the pay in requests and transfers the consolidated pay in files to
clearing House/clearing Corporation by 11.00am/on T+2. The exchange/clearing
house/clearing corporation executes the pay-out of securities and funds latest by 1.30
p.m on T+2 to the depositories and clearing banks. In the demat mode net basis
settlement is allowed. The buy and sale positions in the same scrip can be settled and
net quantity has to be settled.
Benefits of Demat:
It reduces the risk of bad deliveries, in turn saving the cost and wastage of
time associated with follow up for rectification. This has lead to reduction in
brokerage to the extent of 0.5% by quite a few brokerage firms.
In case of transfer of electronic shares, you save 0.5% in stamp duty. You
avoid the cost of courier / notarization.
You can receive your bonuses and rights issues into your DA as a direct
credit, this eliminating risk of loss in transit.
You can also expect a lower interest charge for loans taken against Demat
shares as compared to loans against physical shares.
There is no lost in transit, thus the overheads of getting a duplicate copy in
such circumstances is reduced.
RBI has also reduced the minimum margin to 25% for loans against
dematerialized securities as against 50% for loans against physical securities.
BROKER WORK STATION:
At the broker workstation the BBO’s, the last traded price, the day‘s opening
price, previous day’s closing price, highest and lowest prices, the weighted average
price and total trade value will be available continuously, as the BBO for each scrip.
24. Other information will be available on query from the BWS. These include top
gainers /losers of the day. Trader-wise, scrip wise net position, client wise net
position, top scrip by the volume/value, market summary etc.
Brokers are also provided with information relating to the companies in the matter of
Book closure, Dividend declarations, resolutions in board meeting, information about
liquidated companies, company report etc.
ORDERS:
Orders sent by the brokers are two types:
Good for the day (GFD)
Good till cancellation(GTC)
Good for the day:
This is also called as “market order”. For an order if the member selects the deal
as good for the day, the order is treated as market order. If a “best bid” founds match
with “best order” then the transaction gets executed. If the match is not found then
after trade time the order gets cancelled that day. Next day he has to place a new
order.
For example if a member wants to purchase 1000 shares of satyam info @ 400 each
through Good for Day order. If the correct match is not found, order gets cancelled
automatically and new quotation has to be placed the next day.
Good till cancellation:
This order is forwarded to the last trading day of that settlement period. This is
also called as carry forward order like GFD; broker has to select the option of GTC
for the order. If the order finds match with in the trading settlement period, the order
is executed. If no match is found, the order is cancelled on the last day of settlement
period. This order is not carried forward to the next settlement period.
26. Evolution
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200
years ago. The earliest records of security dealings in India are meager and obscure. The
East India Company was the dominant institution in those days and business in its loan
securities used to be transacted towards the close of the eighteenth century.By 1830's
business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen
brokers recognized by banks and merchants during 1840 and 1850.
The 1850's witnessed a rapid development of commercial enterprise and brokerage
business attracted many men into the field and by 1860 the number of brokers increased
into 60.
In 1860-61 the American Civil War broke out and cotton supply from United States of
Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers
increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a
disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850
could only be sold at Rs. 87).
At the end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business. In 1887, they formally established in
Bombay, the "Native Share and Stock Brokers' Association" (which is alternatively
known as " The Stock Exchange "). In 1895, the Stock Exchange acquired a premise in
the same street and it was inaugurated in 1899. Thus, the Stock Exchange at Bombay was
consolidated.
Indian Stock Exchanges - An Umbrella Growth
The Second World War broke out in 1939. It gave a sharp boom which was followed by a
slump. But, in 1943, the situation changed radically, when India was fully mobilized as a
supply base.
27. On account of the restrictive controls on cotton, bullion, seeds and other commodities,
those dealing in them found in the stock market as the only outlet for their activities.
They were anxious to join the trade and their number was swelled by numerous others.
Many new associations were constituted for the purpose and Stock Exchanges in all parts
of the country were floated.
The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited
(1940) and Hyderabad Stock Exchange Limited (1944) were incorporated.
In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and
the Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947,
amalgamated into the Delhi Stock Exchnage Association Limited.
Post-independence Scenario
Most of the exchanges suffered almost a total eclipse during depression. Lahore
Exchange was closed during partition of the country and later migrated to Delhi and
merged with Delhi Stock Exchange.
Bangalore Stock Exchange Limited was registered in 1957 and recognized in 1963.
Most of the other exchanges languished till 1957 when they applied to the Central
Government for recognition under the Securities Contracts (Regulation) Act, 1956. Only
Bombay, Calcutta, Madras, Ahmadabad, Delhi, Hyderabad and Indore, the well
established exchanges, were recognized under the Act. Some of the members of the other
Associations were required to be admitted by the recognized stock exchanges on a
concessional basis, but acting on the principle of unitary control, all these pseudo stock
exchanges were refused recognition by the Government of India and they thereupon
ceased to function.
Thus, during early sixties there were eight recognized stock exchanges in India
(mentioned above). The number virtually remained unchanged, for nearly two decades.
During eighties, however, many stock exchanges were established: Cochin Stock
28. Exchange (1980), Uttar Pradesh Stock Exchange Association Limited (at Kanpur, 1982),
and Pune Stock Exchange Limited (1982), Ludhiana Stock Exchange Association
Limited (1983), Gauhati Stock Exchange Limited (1984), Kanara Stock Exchange
Limited (at Mangalore, 1985), Magadh Stock Exchange Association (at Patna, 1986),
Jaipur Stock Exchange Limited (1989), Bhubaneswar Stock Exchange Association
Limited (1989), Saurashtra Kutch Stock Exchange Limited (at Rajkot, 1989), Vadodara
Stock Exchange Limited (at Baroda, 1990) and recently established exchanges -
Coimbatore and Meerut. Thus, at present, there are totally twenty one recognized stock
exchanges in India excluding the Over The Counter Exchange of India Limited (OTCEI)
and the National Stock Exchange of India Limited (NSEIL).
The Table given below portrays the overall growth pattern of Indian stock markets since
independence. It is quite evident from the Table that Indian stock markets have not only
grown just in number of exchanges, but also in number of listed companies and in capital
of listed companies. The remarkable growth after 1985 can be clearly seen from the
Table, and this was due to the favouring government policies towards security market
industry.
Trading Pattern of the Indian Stock Market
Trading in Indian stock exchanges are limited to listed securities of public limited
companies. They are broadly divided into two categories, namely, specified securities
(forward list) and non-specified securities (cash list). Equity shares of dividend paying,
growth-oriented companies with a paid-up capital of atleast Rs.50 million and a market
capitalization of atleast Rs.100 million and having more than 20,000 shareholders are,
normally, put in the specified group and the balance in non-specified group.
Two types of transactions can be carried out on the Indian stock exchanges: (a) spot
delivery transactions "for delivery and payment within the time or on the date stipulated
when entering into the contract which shall not be more than 14 days following the date
of the contract" : and (b) forward transactions "delivery and payment can be extended by
further period of 14 days each so that the overall period does not exceed 90 days from the
29. date of the contract". The latter is permitted only in the case of specified shares. The
brokers who carry over the outstandings pay carry over charges (cantango or
backwardation) which are usually determined by the rates of interest prevailing.
A member broker in an Indian stock exchange can act as an agent, buy and sell securities
for his clients on a commission basis and also can act as a trader or dealer as a principal,
buy and sell securities on his own account and risk, in contrast with the practice
prevailing on New York and London Stock Exchanges, where a member can act as a
jobber or a broker only.
The nature of trading on Indian Stock Exchanges are that of age old conventional style of
face-to-face trading with bids and offers being made by open outcry. However, there is a
great amount of effort to modernize the Indian stock exchanges in the very recent times.
Over The Counter Exchange ofIndia (OTCEI)
The traditional trading mechanism prevailed in the Indian stock markets gave way to
many functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly
long settlement periods and benami transactions, which affected the small investors to a
great extent. To provide improved services to investors, the country's first ringless,
scripless, electronic stock exchange - OTCEI - was created in 1992 by country's premier
financial institutions - Unit Trust of India, Industrial Credit and Investment Corporation
of India, Industrial Development Bank of India, SBI Capital Markets, Industrial Finance
Corporation of India, General Insurance Corporation and its subsidiaries and CanBank
Financial Services.
National Stock Exchange (NSE)
With the liberalization of the Indian economy, it was found inevitable to lift the Indian
stock market trading system on par with the international standards. On the basis of the
recommendations of high powered Pherwani Committee, the National Stock Exchange
was incorporated in 1992 by Industrial Development Bank of India, Industrial Credit and
30. Investment Corporation of India, Industrial Finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.
Trading at NSE can be classified under two broad categories:
(a) Wholesale debt market and
(b) Capital market.
Wholesale debt market operations are similar to money market operations - institutions
and corporate bodies enter into high value transactions in financial instruments such as
government securities, treasury bills, public sector unit bonds, commercial paper,
certificate of deposit, etc.
There are two kinds of players in NSE:
(a) trading members and
(b) participants.
Recognized members of NSE are called trading members who trade on behalf of
themselves and their clients. Participants include trading members and large players like
banks who take direct settlement responsibility.
Trading at NSE takes place through a fully automated screen-based trading mechanism
which adopts the principle of an order-driven market. Trading members can stay at their
offices and execute the trading, since they are linked through a communication network.
The prices at which the buyer and seller are willing to transact will appear on the screen.
When the prices match the transaction will be completed and a confirmation slip will be
printed at the office of the trading member.
31. About IIFL
The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd
(NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in
the Indian financial services space. IIFL offers advice and execution platform for the
entire range of financial services covering products ranging from Equities and
derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed
deposits, Loans, Investment Banking, GoI bonds and other small savings instruments.
IIFL recently received an in-principle approval for Securities Trading and Clearing
memberships from Singapore Exchange (SGX) paving the way for IIFL to become the
first Indian brokerage to get a membership of the SGX. IIFL also received membership of
the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL
owns and manages the website, www.indiainfoline.com, which is one of India’s leading
online destinations for personal finance, stock markets, economy and business.
IIFL has been awarded the ‘Best Broker, India’ by FinanceAsia and the ‘Most improved
brokerage, India’ in the AsiaMoney polls. India Infoline was also adjudged as ‘Fastest
Growing Equity Broking House - Large firms’ by Dun & Bradstreet. A forerunner in the
field of equity research, IIFL’s research is acknowledged by none other than Forbes as
‘Best of the Web’ and ‘…a must read for investors in Asia’. Our research is available not
just over the Internet but also on international wire services like Bloomberg, Thomson
First Call and Internet Securities where it is amongst one of the most read Indian brokers.
A network of over 2,500 business locations spread over more than 500 cities and towns
across India facilitates the smooth acquisition and servicing of a large customer base. All
our offices are connected with the corporate office in Mumbai with cutting edge
networking technology. The group caters to a customer base of about a million
customers, over a variety of mediums viz. online, over the phone and at our branches.
32. History & Milestones
1995 - Commenced operations as an Equity Research firm
1997 - Launched research products of leading Indian companies, key sectors and the
economy Client included leading FIIs, banks and companies.
1999 - Launched www.indiainfoline.com
2000 - Launched online trading through www.5paisa.com Started distribution of life
insurance and mutual fund
2003 - Launched proprietary trading platform Trader Terminal for retail customers
2004 -Acquired commodities broking license
Launched Portfolio Management Service.
2005 - Maiden IPO and listed on NSE, BSE
2006 - Acquired membership of DGCX Commenced the lending business
2007 - Commenced institutional equities business under IIFL
Formed Singapore subsidiary, IIFL (Asia) Pte Ltd
2008 - Launched IIFL Wealth Transitioned to insurance broking model
2009 - Acquired registration for Housing Finance ,SEBI in-principle approval for Mutual
Fund
Obtained Venture Capital license
2010 - Received in-principle approval for membership of the Singapore Stock Exchange
Received membership of the Colombo Stock Exchange
2011 - Launchied IIFL mutual funds
33. Board of directors
IIFL’s philosophy on Corporate Governance
IIFL (India Infoline) is committed to placing the Investor First, by continuously striving
to increase the efficiency of the operations as well as the systems and processes for use of
corporate resources in such a way so as to maximize the value to the stakeholders. The
Group aims at achieving not only the highest possible standards of legal and regulatory
compliances, but also of effective management.
Audit Committee
Terms of reference & Composition, Name of members and Chairman: The Audit
committee comprises Mr Nilesh Vikamsey (Chairman), Mr Sat Pal Khattar, Mr Kranti
Sinha, three of whom are independent Directors. The Managing Director, the Executive
Director along with the Statutory and Internal Auditors are invitees to the Meeting. The
Terms of reference of this committee are as under: - To investigate into any matter that
34. may be prescribed under the provisions of Section 292A of The Companies Act, 1956 -
Recommendation and removal of External Auditor and fixation of the Audit Fees. -
Reviewing with the management the financial statements before submission of the same
to the Board. - Overseeing of Company’s financial reporting process and disclosure of its
financial information. - Reviewing the Adequacy of the Internal Audit Function.
Share Transfer and Investor Grievance Committee
Details of the Members, Compliance Officer, No of Complaints received and pending
and pending transfers as on close of the financial year. The committee functions under
the Chairmanship of Mr Kranti Sinha, a Non-executive independent Director. The other
Members of the committee are Mr. Nirmal Jain and Mr. R Venkataraman. Ms Sunil
Lotke, Company Secretary is the Compliance Officer of the Company.
Some of the activities undertaken by the IIFL Foundation:
Barsana eye camp
The IIFL Foundation sponsored an eye and dental camp held in February, 2010 with the
support of expert doctors and surgeons from the Bhaktivedanta Hospital in Barsana near
Mathura. While over 2,600 people underwent eye tests and over 800 were selected for
free eye surgery, a total of over 1,800 dental procedures like extraction, scaling and
filling, among others, were performed.Team IIFL provided its whole-hearted support to
this noble cause and will continue to do so in the future.
Pandharpur medical camp
The IIFL Foundation sponsored the Pandharpur medical camp which was held by the
Bhaktivedanta Hospital in July 2010 at Pandharpur. Free medical treatment was given at
4 camp sites, to approximately 49,815 pilgrims who had come to Pandharpur during
Ashadi Ekadashi. The pilgrims were treated for fever, injuries, fractures, gastroenteritis,
myalagia, headache, epilepsy, malaria, respiratory infections etc, during the camp.
Blood donation drive
IIFL regularly organizes blood donation drives via camps at its various locations across
India. Over 800 employees have participated in these camps.
36. RESEARCH METHODOLOGY
NEED FOR THE STUDY:
The present study to review the online trading procedure a case study of ONLINE
TRADING at INDIA INFOLINE LTD (IIFL)., as the exchange has changed it’s
trading from it and there is need to assess the performance of the capital market.
One of the single best things you can do to further your education in trading
commodities is to keep thorough records of your trades.
Maintaining good records requires discipline, just like good trading.
OBJECTIVESOF THE STUDY:
• To know the process ofonline trading.
• To study the portfolio management structures in IIFL.
• To know the investor satisfaction on online trading in IIFL.
• To study Comparative analysis between 4 companies
(volume of trade).
37. SCOPE OF THE STUDY
The scope of the study analyze us to know the online trading activities are carried
out in IIFL
The trading on stock exchanges in India used to take place to open outcry with out
use of IT for immediate matching on recording of trades.
In order to provide efficiency, liquidity and transparency introduced a national
wide online fully automated screen based training system(SBTS).
METHODOLOGYOF THE STUDY:
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 India info. line Securities limited and clients.
Secondary method: The secondary data collection method includes:
The brochures and material provided by India infoline Securities 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.
38. LIMITATIONS OF THE STUDY:
- Time constraint was a major limiting factor. Forty five days were insufficient to
even grasp the theoretical concepts.
- Several other strategies that could have been studied were not done.
- Lack of knowledge with the brokers.
- Difference of theory from practice.
- Absence of required knowledge and technology.
40. DATA ANALYSIS&INTERPRETATION
The given flow chart clearly explains the process ofonline trading:
Login
Buy transcation Sell transcation
The system will check buying
limits
The system will check your
dp account quantity
Orders accepted Rejected orders would be
communicated along with reasons
orders accepted
contract note would
be sent to by mail
or hand delivery
flashed on your
screen immediately
on execution
conformationcoul
d be send to your
e-mail and mobile
you may edit your
pending order
you may delete your
pending order
your order is transmitted to exchange for execution
pending sell orders
would be displayed
on your screen
pending buy orders
would be displayed
on your screen
on execution
of your orders
you may edit your
pending order
you may delete
your pending order
41. ANAIYSIS
1. CSR facilities in IIFL
Indicator No. of respondents % of respondents
Good 60 68.9
Average 25 28.7
Bad 2 2.4
Total 87 100
Interpretation:
By this pie-chart we know that the corporate responsibility activities(CSR) is good with 68.9%
and only 2.4% of clients said that it is bad.
0
5
10
15
20
25
30
35
40
45
Yes No Frequently
No. of respondents
% of respondents
42. 2. In which services IIFL is best?
Indicator No.of respondents % of respondents
Equity 47 54.02
Insurance 18 20.68
Mutual fund 22 25.30
Total 87 100
Interpretation:
By this pie-chart we know that IIFL is best brokerage house for equities with 54%,then followed
by mutual funds and insurance with 25&21%.
Equity
54%
Insurance
21%
Mutual fund
25%
43. 3. Which type of trading is giveing better results?
Indicator No.of respondents % of respondents
Offline 34 39.08
Online 53 60.92
Total 87 100
Interpretation:
By this pie-chart we know that most of the clients are felt that online trading gives best and fast
results as compared to off-line with 60.92%
34
39.08
53
60.92
1 2
Offline Online
44. 4. Anticipation of market fluctuations in IIFL?
Indicators No.of
respondents
% of respondents
Excellent 23 26.43
Good 48 55.17
Average 16 18.4
bad 0 0
Too bad 0 0
TOTAL 87 100
Interpretation:
By this pie-chart we know that anticipation of market fluctuation is not excellent, it may predict
somewhat correct only, finally anticipation is good with 55.17%.
Excellent , 23
Good , 48
Average , 16
bad , 0
Too bad , 0
45. 5. Portfolio construction in IIFL?
Indicators No.of respondents % of respondents
Excellent 9 10.34
Good 48 55.17
Average 19 21.83
Bad 9 10.34
Poor 2 2.32
TOTAL 87 100
Interpretation:
By this pie-chart we know that the portfolio construction in IIFL is good as compared to rest with
65.51%.
11%
55%
22%
10%
2%
No.of respondents
Excellent
Good
Average
Bad
Poor
46. 6. Is online trading gives live experience?
Indicators No.of respondents % of respondents
Yes 71 81.60
No 18 18.40
Total 87 100
Interpretation:
By this pie-chart we know that most of them felt that they got live experience through online with
81.60%.
0 10 20 30 40 50 60 70 80 90
1
2
No
Yes
47. 7. Are you happy with SEBI regulations?
Indicator No.of respondents % of respondents
Yes 80 91.95
No 7 8.05
Total 87 100
Interpretation:
By this pie-chart we know that the SEBI is formulating better regulations for the welfare of
clients in both stocks and mutual funds.
0 20 40 60 80 100
1
2
No
Yes
48. 8. Insider trading activities in India (in these days)
Indicator No. of respondents % of respondents
Low 63 72.41
Quite high 3 3.44
Medium 21 24.15
Total 87 100
Interpretation:
By this pie-chart we know that after started SEBI, insider trading activities are come down to
minority level.
0
20 40
60
80
100
120
140
Low
Quite high
Medium
Series1
Series2
49. 9. Rolling settlement system in India
Indicators No. of respondents % of respondents
Fast 20 22.98
Slow 49 56.32
Very slow 18 20.7
Total 87 100
Interpretation:
By this pie-chart we know that rolling system in stock exchanges is very slow .through this late
process many of the clients are losing their monitory value.
34
20
33
39.08
22.98
37.94
Yes No Frequently
No. of respondents % of respondents
50. 10. Is really “F” group share give good interest rate to investor?
Indicators No. of respondents % of respondents
Yes 39 44.82
No 17 19.54
Not confirmed 31 35.64
Total 87 100
Interpretation:
By this pie-chart we know that(( ‘F’ group shares are belongs to long-term investing shares it
will give interest to the client))44.82% clients are felt that they got good interest on their
investment.
Yes No Not confirmed
39 17 31
44.82 19.54 35.64
Series1 Series2
51. 11. Brokerage fee in IIFL
Indicators No. of respondents % of respondents
High 5 5.74
Medium 25 28.73
Same as others 57 65.53
Total 87 100
Interpretation:
By this pie-chart we know that the fee structure in IIFL is same as others. they didn’t collect
higher money from the clients.
Series1
Series2
0
10
20
30
40
50
60
70
High
Medium
Same as others
Series1
Series2
52. 12. Brokerage facilities in India
Indicators No. of respondents % of respondents
High 15 17.24
Low 20 22.98
Average 52 59.78
Total 87 100
Interpretation:
By this pie-chart we know that the brokerage facilities in IIFL are average. they are not providing
outstanding facilities to the clients. about 60% of the clients thinking like this.
High
Low
Average
15
20
52
17.24
22.98
59.78
Series1 Series2
53. 13. Issue Settlement system in IIFL
Indicators No. of respondents % of respondents
Bad 12 13.79
Good 55 63.21
Average 20 23
Total 87 100
Interpretation:
By this pie-chart we know that the settlement system is good in IIFL. it is providing faster
facilities to the client.
39.08
22.98
37.94
0
10
20
30
40
50
60
70
80
Yes No Frequently
% of respondents
No. of respondents
54. 14. In which portfolio you have been investing?
Portfolio type No.of respondents % of respondents
EQUITY+COMMODITIES 18 20.68
EQUITY+MUTUAL
FUNDS
45 51.72
EQUITY+OPTIONS 3 3.47
EQUITY+FEATURES 6 6.89
EQUITY+COMMODITIES+
MUTUAL FUNDS
15 17.24
TOTAL 87 100
Interpretation:
By this pie-chart we know that the stock exchanges are providing advanced facilities but laggard.
0
10
20
30
40
50
60
persentages
indicators
No.of respondents
% of respondents
55. 15. Is SEBI and IIFL providing investor awareness programmes in all areas?
Indicators No. of respondents % of respondents
Yes 34 39.08
No 20 22.98
Frequently 33 37.94
Total 87 100
Interpretation:
By this pie-chart we know that the SEBI and IIFL is providing awareness programs in all town
and cities in India. Mainly focusing on investment and awareness.
0
5
10
15
20
25
30
35
40
Yes No Frequently
No. of respondents
% of respondents
57. INTERPRETATION:
On open value has risen from 152.2 to 155.4 than compare to higher value of
EPS 154.5 to 156.8. Then coming to lower price from 151.6 to 153.00. Wholly the
conclusion is 152.65 to155.75 rise.The comings to the volume on the same dates or days
volumes are increased. Because on this session DLF LTD value is raised i.e. percentage
of 16.8%.
0
5,000
10,000
15,000
20,000
25,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
No. of Trades
No. of Trades
59. INTERPRETATION:
On open value has risen from 1095.00 to 1055.00 than compare to higher value of
EPS 1118.10 to 1058.00. Then coming to lower price from 1089.90 to 1030.15. Wholly the
conclusion is 1094.15 to 1034.65 rise.
The comings to the volume on the same dates or days volumes are increased.
Because on this session ACC LTD value is raised i.e. percentage of 1086%.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35 37
No. of Trades
No. of Trades
61. INTERPRETATION:
On open value has risen from 157.6 to 171.55 than compare to higher value of EPS
160.85 to 173.95. Then coming to lower price from 156.7 to 171.1. Wholly the conclusion is
159.25 to 173.45 rise.
The comings to the volume on the same dates or days volumes are increased.
Because on this session BHARAT HEAVY ELECTRICALS LTD value is raised i.e.
percentage of 75.8%.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
No. of Trades
No. of Trades
63. INTERPRETATION:
On open value has risen from 180.00 to 225.00. Then compare to higher value of
EPS 179.69 to 226.55. Then coming to lower price from 17810 to225.00. Wholly the
conclusion is 178.95 to 226.75 raised.
Then coming to the volume on the same dates or days volumes are increased.
Because totally this session Heritage Foods Limited. EPS value is increased i.e. percentage
of 20.38%.
0
500
1000
1500
2000
2500
3000
3500
1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 31 33 35
No. of Trades
No. of Trades
65. FINDINGS
52% of respondents are investing in portfolio only.
54% felt that services are good in IIFL.
55% felt that anticipation is nearly reality.
56% felt that rolling settlement is slow.
44% felt that they are receiving good interest.
Then coming to lower price from 17810 to225.00. Wholly the conclusion is
178.95 to 226.75 raised.Then coming to the volume on the same dates or days
volumes are increased. Because totally this session Heritage Foods Limited. EPS
value is increased i.e. percentage of 20.38%.
Then coming to lower price from 156.7 to 171.1. Wholly the conclusion is 159.25
to 173.45 rise. The comings to the volume on the same dates or days volumes are
increased. Because on this session BHARAT HEAVY ELECTRICALS LTD
value is raised i.e. percentage of 75.8%.
Then coming to lower price from 1089.90 to 1030.15. Wholly the conclusion is
1094.15 to 1034.65 rise. The comings to the volume on the same dates or days
volumes are increased. Because on this session ACC LTD value is raised i.e.
percentage of 10.86%.
Then coming to lower price from 151.6 to 153.00. Wholly the conclusion is
152.65 to155.75 rise. The comings to the volume on the same dates or days
volumes are increased. Because on this session DLF LTD value is raised i.e.
percentage of 16.8%.
66. CONCLUSION
The comprehensive study of capital market instrument at Inter Connected
stock exchange has been an enlightening experience stressing on the
positive aspects on Dematerialization.
And settlement of shares, derivative market and capital instrumentshas
done in whole lot of good to the issuer, investor companies and country.
The depository systems has reduced the lag in delivery and settlement of
securities but also supported the cause of providing more liquidity to the
security holder, the need for setting up of a depository paper less trading.
Through online trading system and settlement became inevitable and
unavoidable for the smooth and the efficient functioning of the capital
market.
This system has proved its worthiness by increasing in the speed of
transactions within T+3 days which are earlier T+5 days.
Now there is a proposal that the settlement will be done within T+1days in
near future which is in it an indication of a boon in the system of demat
and capital market instruments.
It has been fairly long since derivative trading started off on the Indian
Indexes.
Actively has failed to really take off with low figures being transacted in
terms of value and volumes.
67. The introduction of derivative trading was hailed by the punters in the
capital markets but has not really brought about a wave so as to speak.
There are several factors, which impede the growth of the derivative
markets in India.
Of these factors the absence of clear guidelines on tax-related issues and
the high cost of transactions are the most prominent.
SUGGESTIONS
I recommend the exchange authorities to take steps to educate Investors about
their rights and duties. I suggest to the exchange authorities to increase the
investors’ confidences.
I recommend the exchange authorities to be vigilant to curb wide fluctuations of
prices.
The speculative pressures are responsible for the wide changes in the price, not
attracting the genuine investors to the greater extent towards the market.
Genuine investors are not at all interested in the speculative gain as their
investment is based on the future profits, therefore the authorities of the exchange
should be more vigilant to curb the speculation.
Necessary steps should be taken by the exchange to deal with the situations
arising due to break down in online trading.
68. QUESTIONNAIRE:
Name:
Place:
1. CSR facilities in IIFL
a. Good b. Average c . Bad
2. In which service is IIFL is best?
a. Equity b. Insurance c. Mutual fund
3. Which type of trading is give better results?
a. Offline b. Online
4. Anticipation of market fluctuations in IIFL?
a. Excellent b. Good c. Average
5. Portfolio construction in IIFL?
a. Bad b. Good c. Average
6. Is online trading gives live experience?
a. Yes b. No
7. Are you happy with SEBI regulations?
a. Yes b. No
8. Insider trading activities in India (in these days)
a. Low b. Quite high c. Medium
a. Fast b. Slow c. Very slow
10. Is really “F” group share give good interest rate to investor?
a. Yes b. No c. Not confirm
11. Brokerage fee in IIFL
a. High b. Medium c. Same as others
69. 12. Brokerage facilities in India
a. High b. Low c. Average
13. Issue Settlement system in IIFL
a. Bad b. Good c. Average
14. In which portfolio you have been investing?
a. Equity+commandity b. . Equity+MF c. Equity+options
d. . Equity+features e. . Equity+MF+Commanditys
15. Is SEBI and IIFL providing investor awareness programmes in all areas?
a. Yes b. No c. Frequently
BIBLIOGRAPHY
BOOKS:
o Investment management -V.K.Bhalla
o Investment management -Preethi Singh
o Security Analysis And Portfolio Management -V.A.Avadhani
o Marketing of Financial Services -V.A.Avadhani
o Indian Financial System -M.Y.Khan
WEBSITES:
www.indiainfoline.com
www.bseindia.com
www.sebi.com
www.moneycontrol.com
www.economictimes.com
www.nseindia.com
![A STUDY ON
ONLINE TRADING
At
INDIA INFOLINE LTD.,
HYDERABAD.
Submitted
In the partial fulfillment of the requirements for the award of the degree of
MASTER OF BUSINESS ADMINISTRATION
In
DEPARTMENT OF MANAGEMENT STUDIES
By
GOLLAPALLI.HARSHAVARDHAN REDDY
[Reg. No.130A1E0043]
Under the Supervision and Guidance of
Dr. P. BASAVAIAH,M.com., MBA., Ph.D.
DEPARTMENT OF MANAGEMENT STUDIES
JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY,
ANANTAPUR – 515002
INDIA
JULY-2015](https://image.slidesharecdn.com/d984aa7a-efd0-477e-adca-805a2c1ac3d4-150620105509-lva1-app6892/85/ommmm-1-320.jpg)
