BBA Programme                          Bharati Vidyapeeth Deemed University, Pune  STOCK MARKETS IN INDIA:     Stock excha...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune         Introduction                To The            ...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune        Yashwantrao Mohite Institute Of Management, Karad
BBA Programme                      Bharati Vidyapeeth Deemed University, Pune    Functions of Stock Exchanges:    Stock ex...
BBA Programme                      Bharati Vidyapeeth Deemed University, Pune    Various Stock Exchange in India.    At pr...
BBA Programme                      Bharati Vidyapeeth Deemed University, Pune  Out of these major stock exchanges were:  N...
BBA Programme                       Bharati Vidyapeeth Deemed University, Pune                                    NSE (NIF...
BBA Programme                       Bharati Vidyapeeth Deemed University, Pune                           BSE (Bombay Stock...
BBA Programme                      Bharati Vidyapeeth Deemed University, Pune  BSE (Bombay Stock Exchange    A Governing B...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  REGULATORY FRAME WORK OF STOCK EXCHANGE ...
BBA Programme                          Bharati Vidyapeeth Deemed University, Pune  SECURITIES AND EXCHANGE BOARD OF INDIA ...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  SEBI GUIDELINES TO SECONDARY MARKETS: (S...
BBA Programme                        Bharati Vidyapeeth Deemed University, Pune    order the broker tries to execute the o...
BBA Programme                          Bharati Vidyapeeth Deemed University, Pune     crore or more. Then it was extended ...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  Primary Market:    A Primary market is g...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  Investors’ protection in the primary mar...
BBA Programme                       Bharati Vidyapeeth Deemed University, Pune  SECONDARY MARKET    The primary market dea...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune           Objectives              &          Methodolo...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune        Yashwantrao Mohite Institute Of Management, Karad
BBA Programme                          Bharati Vidyapeeth Deemed University, Pune    OBJECTIVES AND METHODOLOGY    NEED FO...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  METHODOLOGY OF THE STUDY:     The data c...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune    Company profile        Yashwantrao Mohite Institute...
BBA Programme                          Bharati Vidyapeeth Deemed University, Pune                    Introduction to the c...
BBA Programme                             Bharati Vidyapeeth Deemed University, Pune  1.) Stockbrokers     A Stock broker ...
BBA Programme                           Bharati Vidyapeeth Deemed University, Pune    3.) Market Makers    Market maker is...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune     SHAREKHAN- ONE OF THE FASTEST GROWING FINANCIAL   ...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune  Shareholders & Management Team        Yashwantrao Moh...
BBA Programme                        Bharati Vidyapeeth Deemed University, Pune                      WORK STRUCTURE OF SHA...
BBA Programme                           Bharati Vidyapeeth Deemed University, Pune    BPL Cellular Holding, Gujarat Pipava...
BBA Programme                            Bharati Vidyapeeth Deemed University, Pune                     Sharekhan offers t...
BBA Programme                          Bharati Vidyapeeth Deemed University, Pune    Features    • Instant order Execution...
BBA Programme                           Bharati Vidyapeeth Deemed University, Pune    PREPAID ACCOUNT          Customers  ...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune                                                       ...
BBA Programme                          Bharati Vidyapeeth Deemed University, Pune                                CHARGE ST...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune       MAJOR PLAYERS IN THE REGION        Yashwantrao M...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune    Project Analysis        Yashwantrao Mohite Institut...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune                                PROJECT AN...
BBA Programme                       Bharati Vidyapeeth Deemed University, Pune   MANUAL TRADING    Trading procedure befor...
BBA Programme                             Bharati Vidyapeeth Deemed University, Pune      note is written agreement betwee...
BBA Programme                              Bharati Vidyapeeth Deemed University, Pune     Dematerialization normally takes...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune        Yashwantrao Mohite Institute Of Management, Karad
BBA Programme                        Bharati Vidyapeeth Deemed University, Pune  ONLINE TRADING    Before getting in to th...
BBA Programme                        Bharati Vidyapeeth Deemed University, Pune  2. E-commerce    Electronic   commerce is...
BBA Programme                           Bharati Vidyapeeth Deemed University, Pune           Brokers (now e-brokers) will...
BBA Programme                            Bharati Vidyapeeth Deemed University, Pune  Besides, through internet trading thr...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune    For stock brokers:    1. Permission fr...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune        Yashwantrao Mohite Institute Of Management, Karad
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  Procedure for net trading     Step 1: Th...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  investors can see themselves the price a...
BBA Programme                          Bharati Vidyapeeth Deemed University, Pune  ONLINE TRADING HAS LED TO ADDITIONAL FE...
BBA Programme                           Bharati Vidyapeeth Deemed University, Pune  INVESTORS REASONS TO TRADE ONLINE:    ...
BBA Programme                             Bharati Vidyapeeth Deemed University, Pune  HERE ARE THE POSSIBLE DISADVANTAGES:...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  TRADING AND SETTLEMENT AT SHARE KHAN    ...
BBA Programme                          Bharati Vidyapeeth Deemed University, Pune  automatically after completion of tradi...
BBA Programme                        Bharati Vidyapeeth Deemed University, Pune  ORDERS:    Orders can be done one at a ti...
BBA Programme                             Bharati Vidyapeeth Deemed University, Pune     For example, if a member a place ...
BBA Programme                          Bharati Vidyapeeth Deemed University, Pune    Pay-in: The member who is in paying p...
BBA Programme                                 Bharati Vidyapeeth Deemed University, Pune     The given flow chart clearly ...
BBA Programme                      Bharati Vidyapeeth Deemed University, Pune                        Investment Solution P...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune       Comparative          Analysis        Yashwantrao...
BBA Programme                 Bharati Vidyapeeth Deemed University, Pune  THE MAJOR PLAYERS IN ONLINE TRADING    1) SHAREK...
BBA Programme                       Bharati Vidyapeeth Deemed University, Pune                                HDFC SECURIT...
BBA Programme                      Bharati Vidyapeeth Deemed University, Pune                                ICICI Direct:...
BBA Programme                        Bharati Vidyapeeth Deemed University, Pune                                  INDIABULL...
BBA Programme                        Bharati Vidyapeeth Deemed University, Pune                                           ...
BBA Programme                        Bharati Vidyapeeth Deemed University, Pune    Slab structure of Kotak    Delivery Vol...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune        Yashwantrao Mohite Institute Of Management, Karad
BBA Programme                        Bharati Vidyapeeth Deemed University, Pune                                        5pa...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune                                      Shar...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  Pricing   for   Retail     Customers  Cl...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  CLASSIC/WEBSITE FEATURES       Facility...
BBA Programme                         Bharati Vidyapeeth Deemed University, Pune  * MULTIPLE Tic-by-Tic Intra-day charts w...
BBA Programme                           Bharati Vidyapeeth Deemed University, Pune                                SWOT ANA...
BBA Programme                           Bharati Vidyapeeth Deemed University, Pune     3.   Limited customer appeal as the...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune                               75        Yashwantrao Mo...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune            Finding            &           Observations...
BBA Programme            Bharati Vidyapeeth Deemed University, Pune        Yashwantrao Mohite Institute Of Management, Karad
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A project report on online trading at sharekhan

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  1. 1. BBA Programme Bharati Vidyapeeth Deemed University, Pune STOCK MARKETS IN INDIA: Stock exchanges are the perfect type of market for securities whether of government and semi-govt bodies or other public bodies as also for shares and debentures issued by the joint-stock companies. In the stock market, purchases and sales of shares are affected in conditions of free competition. Government securities are traded outside the trading ring in the form of over the counter sales or purchase. The bargains that are struck in the trading ring by the members of the stock exchanges are at the fairest prices determined by the basic laws of supply and demand. Definition of a stock exchange: “Stock exchange means anybody or individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities.” The securities include:  Shares of public company. Government securities  Bonds History of Stock Exchanges: The only stock exchanges operating in the 19th century were those of Mumbai setup in 1875 and Ahmadabad set up in 1894. These were organized as voluntary non- profit-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 Ahmadabad in 1937. During the war boom, a number of stock exchanges were organized. Soon after it became a central subject, central legislation was proposed and a committee headed by A.D.Gorwala went into the bill for securities regulation. On the basis of the committee‟s recommendations and public discussion, the securities contract (regulation) act became law in 1956. Yashwantrao Mohite Institute Of Management, Karad
  2. 2. BBA Programme Bharati Vidyapeeth Deemed University, Pune Introduction To The Study Yashwantrao Mohite Institute Of Management, Karad
  3. 3. BBA Programme Bharati Vidyapeeth Deemed University, Pune Yashwantrao Mohite Institute Of Management, Karad
  4. 4. BBA Programme Bharati Vidyapeeth Deemed University, Pune Functions of Stock Exchanges: Stock exchanges provide liquidity to the listed companies. By giving quotations to the listed companies, they help trading and raise funds from the market. Over the hundred and twenty years during which the stock exchanges have existed in this country and through their medium, the central and state government have raised crores of rupees by floating public loans. Municipal corporations, trust and local bodies have obtained from the public their financial requirements, and industry, trade and commerce- the backbone of the country‟s economy-have secured capital of crores or rupees through the issue of stocks, shares and debentures for financing their day-to-day activities, organizing new ventures and completing projects of expansion, diversification and modernization. By obtaining the listing and trading facilities, public investment is increased and companies were able to raise more funds. The quoted companies with wide public interest have enjoyed some benefits and assets valuation has become easier for tax and other purposes. Yashwantrao Mohite Institute Of Management, Karad
  5. 5. BBA Programme Bharati Vidyapeeth Deemed University, Pune Various Stock Exchange in India. At present there are 23 stock exchanges recognized under the securities contracts (regulation), Act, 1956. Those are: National Stock Exchange of India (NSE) Bombay Stock Exchange (BSE) Ahmadabad Stock Exchange Association Ltd. Bangalore Stock Exchange Bhubaneshwar Stock Exchange Association Calcutta Stock Exchange Cochin Stock Exchange Ltd. Coimbatore Stock Exchange Delhi Stock Exchange Association Guwahati Stock Exchange Ltd Hyderabad Stock Exchange Ltd. Jaipur Stock Exchange Ltd Ludhiana Stock Exchange Association Ltd Madras Stock Exchange Madhya Pradesh Stock Exchange Ltd. Magadh Stock Exchange Limited Meerut Stock Exchange Ltd. Pune Stock Exchange Ltd. Saurashtra Kutch Stock Exchange Ltd. Uttar Pradesh Stock Exchange Association Vadodara Stock Exchange Ltd. Yashwantrao Mohite Institute Of Management, Karad
  6. 6. BBA Programme Bharati Vidyapeeth Deemed University, Pune Out of these major stock exchanges were: NSE (National Stock Exchange) The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FI‟s) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. Yashwantrao Mohite Institute Of Management, Karad
  7. 7. BBA Programme Bharati Vidyapeeth Deemed University, Pune NSE (NIFTY) NSEs mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the main objectives of:  Establishing a nation-wide trading facility for equities and debt instruments.  Ensuring equal access to investors all over the country through an appropriate communication network.  Providing a fair, efficient and transparent securities market to investors using electronic trading systems.  Enabling shorter settlement cycles and book entry settlements systems, and  Meeting the current international standards of securities markets. The standards set by NSE in terms of market practices and technology, have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. Its that force which is guiding the industry towards new horizons and greater opportunities. Yashwantrao Mohite Institute Of Management, Karad
  8. 8. BBA Programme Bharati Vidyapeeth Deemed University, Pune BSE (Bombay Stock Exchange) The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is currently engaged in the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of India under the Securities Contracts (Regulation) Act 1956.The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redresses of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education programmers and making available to them necessary informative inputs. Yashwantrao Mohite Institute Of Management, Karad
  9. 9. BBA Programme Bharati Vidyapeeth Deemed University, Pune BSE (Bombay Stock Exchange A Governing Board having 20 Directors in a apex body which decides the policies & regulates the affairs of the Exchange. The Governing Board consists of 9 elected Directors, who are from the broking community(one third of them retire ever year by rotation) three SEBI nominiees, six public representatives and an executive Director & Chief Executive officer and a Chief Operating Officer. The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of the Exchange and the Chief Operating Officer and other Heads of Department assist him. The Exchange has inserted new Rule No.126 A in its Rules, Byelaws pertaining to constitution of the Executive Committee of the Exchange. Accordingly, an Executive Committee, consisting of three elected directors, three SEBI nominees or public representatives, Executive Director & CEO and Chief Operating Officer has been constituted. The Committee considers judicial & quasi matters in which the Governing Board has powers as an Appellate Authority, matters regarding annulment of transactions, admission, continuance and suspension of memberbrokers, declaration of a member-broker as defaulter, norms, procedures and other matters relating to arbitration, fees, deposits, margins and other monies payable by the member-brokers to the Exchange, etc. Yashwantrao Mohite Institute Of Management, Karad
  10. 10. BBA Programme Bharati Vidyapeeth Deemed University, Pune 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. Yashwantrao Mohite Institute Of Management, Karad
  11. 11. BBA Programme Bharati Vidyapeeth Deemed University, Pune 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. 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. Yashwantrao Mohite Institute Of Management, Karad
  12. 12. BBA Programme Bharati Vidyapeeth Deemed University, Pune 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. 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 investors‟ choice is placed with the broker. The order may be of any type. After receiving the Yashwantrao Mohite Institute Of Management, Karad
  13. 13. BBA Programme Bharati Vidyapeeth Deemed University, Pune order the broker tries to execute the order in his computer terminal. Once matching order is found, the order is executed. The broker then delivers the contract note to the investor. It gives the details regarding the name of the company, number of shares bought, price, brokerage, and the date of delivery of share. In this physical trading form, once the broker gets the share certificate through the clearing houses he delivers the share certificate along with transfer deed to the investor. The investor has to fill the transfer deed and stamp it. The stamp duty is one of the percentage considerations, the investor should lodge the share certificate and transfer deed to the register or transfer agent of the company. If it is bought in the DEMAT form, the broker has to give a matching instruction to his depository participant to transfer shares bought to the investors account. The investor should be account holder in any of the depository participant. In the case of sale of shares on receiving payment from the purchasing broker, the broker effects the payment to the investor. 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. 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 Yashwantrao Mohite Institute Of Management, Karad
  14. 14. BBA Programme Bharati Vidyapeeth Deemed University, Pune 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. 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. Yashwantrao Mohite Institute Of Management, Karad
  15. 15. BBA Programme Bharati Vidyapeeth Deemed University, Pune Primary Market: A Primary market is generally reffered to the market of new issues or market for mobilization of resources by the companies and government, for new projects as also for expansion, modemization, addition, diversification and upgradation. Primary market is also reffered to as New Issue Market. Primary market seperations include new issues of shares by new and existing companies, further and right issues to existing shareholders, public offers, and issue of debt instruments such as debentures, bonds, etc. The primary market is regulated by the Securities and Exchange Board of India (SEBI a government regulated authority). Function: The main services of the primary market are origination, underwriting, and distribution. Origination deals with the origin of the new issue. Underwriting contract make the shares predictable and remove the element of uncertainty in the subscription. Distribution refers to the sale of securities to the investors. The following are the market intermediaries associated with the market: 1. Merchant banker/book building lead manager 2. Registrar and transfer agent 3. Underwriter/broker to the issue 4. Adviser to the issue 5. Banker to the issue 6. Depository 7. Depository participant Yashwantrao Mohite Institute Of Management, Karad
  16. 16. BBA Programme Bharati Vidyapeeth Deemed University, Pune Investors’ protection in the primary market: To ensure healthy growth of primary market, the investing public should be protected. The term investor protection has a wider meaning in the primary market. The principal ingredients of investors‟ protection are:  Provision of all the relevant information  Provision of accurate information and  Transparent allotment procedures without any bias. Yashwantrao Mohite Institute Of Management, Karad
  17. 17. BBA Programme Bharati Vidyapeeth Deemed University, Pune SECONDARY MARKET The primary market deals with the new issues of securities. Outstanding securities are traded in the secondary market, which is commonly known as stock market or stock exchange. “The secondary market is a market where scrip‟s are traded”. It is a market place which provides liquidity to the scrip‟s issued in the primary market. Thus, the growth of secondary market depends on the primary market. More the number of companies entering the primary market, the greater are the volume of trade at the secondary market. Trading activities in the secondary market are done through the recognized stock exchanges which are 23 in number including Over The Counter Exchange of India (OTCE), National Stock Exchange of India and Interconnected Stock Exchange of India. Secondary market operations involve buying and selling of securities on the stock exchange through its members. The companies hitting the primary market are mandatory to list their shares on one or more stock exchanges in India. Listing of scrip‟s provides liquidity and offers an opportunity to the investors to buy or sell the scrip‟s. The following are the intermediaries in the secondary market: 1. Broker/member of stock exchange - buyers broker and sellers broker 2. Portfolio Manager 3. Investment advisor 4. Share transfer agent 5. Depository 6. Depository participants. Yashwantrao Mohite Institute Of Management, Karad
  18. 18. BBA Programme Bharati Vidyapeeth Deemed University, Pune Objectives & Methodology Yashwantrao Mohite Institute Of Management, Karad
  19. 19. BBA Programme Bharati Vidyapeeth Deemed University, Pune Yashwantrao Mohite Institute Of Management, Karad
  20. 20. BBA Programme Bharati Vidyapeeth Deemed University, Pune OBJECTIVES AND METHODOLOGY NEED FOR THE STUDY: The present study to review the online trading procedure a case study of ONLINE TRADING at SHAREKHAN as the exchange has changed it‟s trading from the outcry mode to online trading on 20th February 1997, there is need to assess the performance of the capital market. OBJECTIVES OF THE STUDY:  It is to analyze the changes in trading after the exchange shifted from outcry to online trading system.  It is to study the functions of SHAREKHAN through various departments.  To know the online screen based trading system adopted by SHAREKHAN and about its communication facilities. The appropriate configuration to set the network, which would link the SHAREKHAN to individual / members.  To know about the latest and future development in the stock exchange trading system. Yashwantrao Mohite Institute Of Management, Karad
  21. 21. BBA Programme Bharati Vidyapeeth Deemed University, Pune METHODOLOGY OF 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 Sharekhan Securities limited. Secondary method: The secondary data collection method includes: The lecturers delivered by the superintendents of respective departments. The brochures and material provided by Sharekhan 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. LIMITATIONS OF THE STUDY: Despite of the training my level best, there were still some limitation which I think remains there to draw fruitful conclusion. There were some practical problem which come across and could not be properly death with  The advisory services being promised by the brokers would be of little use to investors looking for an insight into the market.  As a client one will access the NSE through a server of the online brokerage and this may involve queuing delays  If one like to ask his broker "Aaj kya achcha lag raha hai" he may not be able to do so.If he want advice on a particular stock in his portfolio he may not even be able to get that. Yashwantrao Mohite Institute Of Management, Karad
  22. 22. BBA Programme Bharati Vidyapeeth Deemed University, Pune Company profile Yashwantrao Mohite Institute Of Management, Karad
  23. 23. BBA Programme Bharati Vidyapeeth Deemed University, Pune Introduction to the company SHAREKHAN Sharekhan Ltd is India‟s leading online retail broking house with its presence through 1288„Share Shops‟ in 325 cities and serving more than 8, 00,000 customers across the nation. Launched on Feb 8th 2000 as an online trading portal, Sharekhan offers its clients trade execution facilities for cash as well as derivatives, on BSE and NSE, depository services, mutual funds, initial public offerings (IPOs), and commodities trading facilities on MCX and NCDEX. Besides high quality investment advice from an experienced research team Sharekhan provides market related news, stock quotes fundamental and statistical information across equity, mutual funds, IPOs and much more. Sharekhan has set category leadership through pioneering initiatives like „Speed Trade‟, a net based executable application that emulates a broker terminal besides providing information relevant to Day traders. Their second initiative, „First Step‟ is targeted at empowering first time investors. Sharekhan has also set their global footprints through the „India First‟ initiative, a series of seminars conducted by Sharekhan to help NRIs participate and benefit from the huge investment opportunities in India. These exchange do not work of its own, rather, these are run by some persons and with the help of some persons and institution. All these are down as functionaries on stock exchange. These are 1. Stockbrokers 2. Sub-broker 3. Market makers 4. Portfolio consultants etc. Yashwantrao Mohite Institute Of Management, Karad
  24. 24. BBA Programme Bharati Vidyapeeth Deemed University, Pune 1.) Stockbrokers A Stock broker is a member of a recognized stock exchange, who is permitted to do trades on the screen-based trading system of different stock exchanges. He is enrolled as a member with the concerned exchange and is registered with SEBI. These are the persons who buy, sell or deal in securities. A certificate of registration from SEBI is mandatory to act as a broker. SEBI can impose certain conditions while granting the certificate of registrations. It is obligatory for the person to abide by the rules, regulations and the buy-law. Stock brokers are commission broker, floor broker, arbitrageur etc. Details of registered brokers Total no. of registered Total no. of sub-brokers as on brokers as on 31.03.2009 31.03.2009 9000 Approx 2,40,000 Approx 2.) Sub-broker Sub broker is a person who is registered with SEBI as such and is affiliated to a member of a recognized stock exchange. A sub-broker acts as agent of stock broker. He is not a member of a stock exchange. He assists the investors in buying, selling or dealing in securities through stockbroker. The broker and sub-broker should enter into an agreement in which obligations of both should be specified. Sub-broker must be registered SEBI for a dealing in securities. For getting registered with SEBI, he must fulfill certain rules and regulation. Yashwantrao Mohite Institute Of Management, Karad
  25. 25. BBA Programme Bharati Vidyapeeth Deemed University, Pune 3.) Market Makers Market maker is a designated specialist in the specified securities. They make both bid and offer at the same time. A market maker has to abide by bye-laws, rules regulations of the concerned stock exchange. He is exempt from the margin requirements. As per the listing requirements, a company where the paid-up capital is Rs. 3 crore but not more than Rs. 5 crore and having a commercial operation for less than 2 years should appoint a market maker at the time of issue of securities. 4.) Portfolio consultants A combination of securities such as stocks, bonds and money market instruments is collectively called as portfolio. Whereas the portfolio consultants are the persons, firms or companies who advise, direct or undertake the management or administration of securities or funds on behalf of their clients. It is basically a stock brokering company which deals in security and derivative market, Commodity market, mutual funds and Insurance etc. Yashwantrao Mohite Institute Of Management, Karad
  26. 26. BBA Programme Bharati Vidyapeeth Deemed University, Pune SHAREKHAN- ONE OF THE FASTEST GROWING FINANCIAL SERVICES COMPANY IN INDIA Yashwantrao Mohite Institute Of Management, Karad
  27. 27. BBA Programme Bharati Vidyapeeth Deemed University, Pune Shareholders & Management Team Yashwantrao Mohite Institute Of Management, Karad
  28. 28. BBA Programme Bharati Vidyapeeth Deemed University, Pune WORK STRUCTURE OF SHAREKHAN Sharekhan has always believed in investing in technology to build its business. The company has used some of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette, Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The Citi Venture holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors. On April 17, 2002 Sharekhan launched Speed Trade and Trade Tiger, are net-based executable application that emulates the broker terminals along with host of other information relevant to the Day Traders. This was for the first time that a net-based trading station of this caliber was offered to the traders. In the last six months SpeedTrade has become a de facto standard for the Day Trading community over the net. Sharekhan‟s ground network includes over 1288+ Shareshops in 325+ cities in India. The firm‟s online trading and investment site - www.sharekhan.com - was launched on Feb 8, 2000. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the site has a registered base of over 3 Lacs customers. The number of trading members currently stands at over 8 Lacs. While online trading currently accounts for just over 5 per cent of the daily trading in stocks in India, Sharekhan alone accounts for 27 per cent of the volumes traded online. The Corporate Finance section has a list of very prestigious clients and has many „firsts‟ to its credit, in terms of the size of deal, sector tapped etc. The group has placed over US$ 5 billion in private equity deals.Some of the clients include Yashwantrao Mohite Institute Of Management, Karad
  29. 29. BBA Programme Bharati Vidyapeeth Deemed University, Pune BPL Cellular Holding, Gujarat Pipavav, Essar, Hutchison, Planetasia, and Shopper’s Stop. Finally, Sharekhan shifted hands and Citi venture get holds on it. Yashwantrao Mohite Institute Of Management, Karad
  30. 30. BBA Programme Bharati Vidyapeeth Deemed University, Pune Sharekhan offers the following products. CLASSIC ACCOUNT This is a User Friendly Product which allows the client to trade through website www.sharekhan.com and is suitable for the retail investors who is risk-averse and hence prefers to invest in stocks or who does not trade too frequently. Features • Online trading account for investing in Equity and Derivatives via www.sharekhan.com • Live Terminal and Single terminal for NSE Cash, NSE F&O & BSE. • Integration of On-line trading, Saving Bank and Demat Account. • Instant cash transfer facility against purchase & sale of shares. • Competitive transaction charges. • Instant order and trade confirmation by E-mail. • Streaming Quotes (Cash & Derivatives). • Personalized market watch. • Single screen interface for Cash and derivatives and more. • Provision to enter price trigger and view the same online in market watch. SPEEDTRADE SPEEDTRADE is an internet-based software application that enables you to buy and sell in an instant. It is ideal for active traders and jobbers who transact frequently during day‟s session to capitalize on intra-day price movement. Yashwantrao Mohite Institute Of Management, Karad
  31. 31. BBA Programme Bharati Vidyapeeth Deemed University, Pune Features • Instant order Execution and Confirmation. • Single screen trading terminal for NSE Cash, NSE F&O & BSE. • Technical Studies. • Multiple Charting. • Real-time streaming quotes, tic-by-tic charts. • Market summary (Cost traded scrip, highest clue etc.) • Hot keys similar to broker‟s terminal. • Alerts and reminders. • Back-up facility to place trades on Direct Phone lines. • Live market debts. DIAL-N-TRADE Along with enabling access for trade online, the CLASSIC and SPEEDTRADE ACCOUNT also gives Dial-n-trade services. With this service, one can dial Sharekhan‟s dedicated phone lines 1-800-22-7500, 3970-7500. Beside this, Relationship Managers are always available on Office Phone and Mobile to resolve customer queries. ShareMobile Sharekhan had introduced ShareMobile, mobile based software where one can watch Stock Prices, Intra Day Charts, Research & Advice and Trading Calls live on the Mobile. Yashwantrao Mohite Institute Of Management, Karad
  32. 32. BBA Programme Bharati Vidyapeeth Deemed University, Pune PREPAID ACCOUNT Customers pay Advance Brokerage on trading Account and enjoy uninterrupted trading in their Account. Beside this, great discount are also available on brokerage. Prepaid Classic Account : - Rs750 < Rs. 2000 Prepaid Speed trade Account : - Rs. 2000 < Above. IPO ON-LINE Customers can apply to all the forthcoming IPOs online. This is quite hasslefree, paperless and time saving. Simply allocate fund to IPO Account, Apply for the IPO and Sit Back & Relax. Mutual Fund Online Investors can apply to Mutual Funds of Reliance, Franklin Templeton Investments, ICICI Prudential, SBI, Birla, Sundaram, HDFC, DSP Merrill Lynch, PRINCIPAL and TATA with Sharekhan. Yashwantrao Mohite Institute Of Management, Karad
  33. 33. BBA Programme Bharati Vidyapeeth Deemed University, Pune 2 Yashwantrao Mohite Institute Of Management, Karad
  34. 34. BBA Programme Bharati Vidyapeeth Deemed University, Pune CHARGE STRUCTURE Fee Structure for General Individuals: - Charges* Classic Account Speed Trade Account Account Opening Rs. 750 Rs. NIL Monthly Rs. NIL Rs. NIL Commitment Brokerage Intra-day - 0.05 % Intra-day - 0.05% Delivery - 0.50 % Delivery - 0.50% * Taxes as per govt. EXPOSURE: 4 TO 6.7 TIMES (ON MARGIN MONEY) BROKERAGE RATES OF SHAREKHAN.COM Yashwantrao Mohite Institute Of Management, Karad
  35. 35. BBA Programme Bharati Vidyapeeth Deemed University, Pune MAJOR PLAYERS IN THE REGION Yashwantrao Mohite Institute Of Management, Karad
  36. 36. BBA Programme Bharati Vidyapeeth Deemed University, Pune Project Analysis Yashwantrao Mohite Institute Of Management, Karad
  37. 37. BBA Programme Bharati Vidyapeeth Deemed University, Pune PROJECT ANALYSIS OUTCRY SYSTEM The broker has to buy or sell securities for which he has received the orders. For this, the broker or his authorized representatives goes to the stock exchange. This method is called the open outcry system. Basically the brokers shout while buying or selling the securities. The floor of the stock exchange is divided into a number of markets also known as „post pit‟ or wing based on particular securities dealt there. In the post pit or wing, the broker using „open outcry‟ method makes an offer or bid price. For making the necessary bargain, he quotes his purchase or sale price, also known as offer or bid price. The dealer, to whom the price is quoted, quotes his own price when the quotation of the dealer suits the broker, he may loose the bargain. If he is not satisfied with the quote price, he may turn to some other dealer. On the close of the bargain, the dealer as well as the broker makes a brief note of the particulars of the deal. Such notes are made on some pad and on it the number of shares, the price agreed upon, the name of the party, what membership number etc., are noted. DISADVANTAGES OF OUTCRY SYSTEM: It lacks transparency.  The scope of manipulation, speculation and mal practice is more.  Signal were more important in the outcry system any member who could not interpret the buy/sell signal correctly often landed himself in disaster situation.  In audibility was another disadvantage of the outcry system.  Due to the above disadvantages of the outcry system the SHAREKHAN has shifted from outcry system to online trading from February 29th 1997. Yashwantrao Mohite Institute Of Management, Karad
  38. 38. BBA Programme Bharati Vidyapeeth Deemed University, Pune MANUAL TRADING Trading procedure before introduction of online trading: Trading on stock exchanges is officially done in the trading ring. In the trading ring the space is provided for specified and non-specified sections, the members and their authorized assistants have to wear a badge or carry with them an identity card given by the exchange to enter the trading ring. They carry a sauda book or confirmation memos, duly authorized by the exchange and carry a pen with them. The stock exchanges operations are floor level are technical in nature .Nonmembers are not permitted to enter in to stock market. Hence various stages have to be completed in executing a transaction at a stock exchange .The steps involved in this method of trading have given below: Choice of broker: sell shares and transact business, have to act through member brokers only. They can also appoint their bankers for this purpose as per the present regulations. Placement of order: The next step is the The prospective investor who wants to buy shares or the investors, who wants to placing order for the purchase or sale of securities with a broker. The order is usually placed by telegram, telephone, letter, fax etc or in person. To avoid delay, it is placed generally over the phone. The orders may take any one of the forms such as At Best Orders, Limit Order, Immediate or Cancel Order, Limited Discretionary Order, and Open Order, Stop Loss Order. Execution of order or contract: Orders are executed in the trading ring of the BSE. This works from 11:30 to 2.30 P.M on all working days Monday to Friday, and a special one-hour session on Saturday. The members or the authorized assistants have to wear a badge given by the exchange to enter into the trading ring. They carry a sauda Block Book or conformation memos, which are duly authorized by the exchange when the deal is struck; both broker and jobber make a note in their sauda block books. From the sauda book, the contract notes are drawn up and posted to the client. A contract Yashwantrao Mohite Institute Of Management, Karad
  39. 39. BBA Programme Bharati Vidyapeeth Deemed University, Pune note is written agreement between the broker and his clients for the transaction executed. Drawing Up and Bills: Both sale and purchase bills are prepared along with the contract note and it is posted on the same day or the next day. This in a purchase transaction, once the shares are delivered to the client effects payment for the purchases and pays the stamp fees for transfer, a bill is made out giving the total cost of purchase, including other expenses incurred by the broker in the price itself. With this, the process ends. DEMATERLIZATION: Dematerialization is the process by which physical certificates of an investor are converted to an equipment number of securities in electronic from and credited in the investor account with his DP. In order to dematerialize the certificates, an investor has to first open an account with a DP and then request for the Dematerialization Request Form, which is DP and submit the same along with the share certificates. The investor has to ensure that he marks “Submitted for Dematerialization” on the certificates before the shares are handed over to the DP for demat. Dematerialization can only be done to those certificates, which are already registered in your name and belong to the list of securities admitted for Dematerialization at NSDL. Most of the active scrip‟s in the market including all the scrip‟s of S&P CNX NIFTY and BSE SENSEX have already joined NSDL. This list is steadily increasing. Briefly, the process is as follows: after completion of transfer, the investor gets the option to dematerialize such shares. Investor‟s willing to exercise this option sends a Demat request along with the option letter sent by the company to his DP. The company or its R&T agent would confirm the Demat request on its receipt from the DP to reduce risk of loss in transit. Dematerialized shares do not have any distinctive or certificate numbers. These shares are fungible-which means that 100 shares of a security are the same as any other 100 shares of the security. Odd lot shares certificates can also be dematerialized. Yashwantrao Mohite Institute Of Management, Karad
  40. 40. BBA Programme Bharati Vidyapeeth Deemed University, Pune Dematerialization normally takes about fifteen to thirty days. To get back dematerialized securities in the physical form, request DP for Rematerialization of the same is made. Rematerialization is the process of converting electronic shares in to physical shares. 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. Yashwantrao Mohite Institute Of Management, Karad
  41. 41. BBA Programme Bharati Vidyapeeth Deemed University, Pune Yashwantrao Mohite Institute Of Management, Karad
  42. 42. BBA Programme Bharati Vidyapeeth Deemed University, Pune ONLINE TRADING Before getting in to the online trading we should know some things about the internet, e-commerce and etc. 1) What is Internet? Internet is a worldwide, self-governed network connecting several other smaller networks and millions of computers and persons, to mega sources of information. This technology shrinks vast distances, accelerating the pace of business reforms and revolutionizing the way companies are managed. It allows direct, ubiquitous links to anyone anywhere and anytime to build up interactive relationships. A combination of time and space, called the Internet promises to bring unprecedented changes in our lives and business. Internet or net is an inter- connection of computer communication networks spanning the entire globe, crossing all geographical boundaries. It has re-defined the methods of communication, work study, education, business, leisure, health, trade, banking, commerce and what not it is virtually changing every thing and we are living in dot.com age. Net being an interactive two way medium, through various websites, enables participation by individuals in business to business and business to consumer commerce, visit to shopping arcades, games, etc. in cyber space even the information can be copied, downloaded and retransmitted. The use of Internet has grown 2000 percent in last decade and is currently growing at 10 percent per month. In India, growth of Internet is of recent times. It is expected to bring changes in every functional area of business activity including management and financial services. It offers stock trading at a lower cost. Internet can change the nature and capacity of stock broking business in India. Yashwantrao Mohite Institute Of Management, Karad
  43. 43. BBA Programme Bharati Vidyapeeth Deemed University, Pune 2. E-commerce Electronic commerce is associated with buying and selling over computer communication networks. It helps conduct traditional commerce through new way of transferring and processing of information. Information is electronically transferred from computer to computer in an automated way. E-commerce refers to the paperless exchange of business information using electronic data inter change, electronic technologies. It not only reduces manual processes and paper transactions but also helps organization move to a fully electronic environment and change the way they operated. PC‟s and networking attempts to introduce banks of the tools and technologies required for electronic commerce. The computers are either workstations of individual office works or serves where large databases and information reside. Network connects both categories of computers; the various operating systems are the most basis program within a computer. It manages the resources of the computer system in a fair and efficient manner. Now we can enter in to the concept known as online trading. In the past, investors had no option but to contact their broker to get real time access to market data. The net brings data to the investor on-line and net broking enables him to trade on a click of mouse. Now information has become easily accessible to both retail as well as big investor. EVOLUTION OF BROKING IN INDIA: The evolution of a broking in India can be categorized in three phases -  Stockbrokers will offer on their sites features such as live portfolio manager, live quotes, market research and news, etc. to attract more investors.  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. Yashwantrao Mohite Institute Of Management, Karad
  44. 44. BBA Programme Bharati Vidyapeeth Deemed University, Pune  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. The actual definition of “Online Trading” is as explained below: “Online trading is a service offered on the internet for purchase and sale of shares. In the real world you place orders on your stockbroker either verbally (personally or telephonically) or in a written form (fax).” In online trading, you will access a 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. 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. Yashwantrao Mohite Institute Of Management, Karad
  45. 45. BBA Programme Bharati Vidyapeeth Deemed University, Pune Besides, through internet trading three fundamental objectives of securities regulation can be easily achieved, these are:  Investor protection  Creation of a fair and efficient market and  Reduction of the systematic risks. Some of the brokers offering net trading include ICICI direct, kotakstreet, etc. Requirements for net trading: For investors: 1. Installation of a computer with required 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: 1) Voter ID card 2) Driving license 3) PAN card ( in case of to trade more than 50000) 4) Ration card 5) Bank pass book 6) 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. Yashwantrao Mohite Institute Of Management, Karad
  46. 46. BBA Programme Bharati Vidyapeeth Deemed University, Pune For stock brokers: 1. Permission from stock exchange for net trading 2. Net worth of Rs. 50 lac 3. Adequate back-up system 4. Secured and reliable software system 5. Adequate, experienced and trained staff 6. Communication of order (trade confirmation to investor by e-mail) 7. Use of authentication technologies 8. Issue of contract notes within 24 hours of the trade execution 9. Setting up a website. The net is used as a medium of trading in internet trading. Orders are communicated to the stock exchange through website. Internet trading started in India on 1st April 2000 with 79 members seeking permission for online trading. The SEBI committees on internet based securities trading services has allowed the net to be used as an Order Routing System (ORS) through registered stock brokers on behalf of their clients for execution of transaction. Under the Order Routing System the client enters his requirements (security, quantity, price, and buy/sell) in brokers site. They are checked electronically against the clients account and routed electronically to the appropriate exchange for execution by the broker. The client receives a confirmation on execution of the order. The customers portfolio and ledger accounts get updated to reflect the transaction. The user should have the user id and password to enter into the electronic ring. He should also have demat account and bank account. The system permits only a registered client to log in using user id and password. Order can be placed using place order window of the website. Yashwantrao Mohite Institute Of Management, Karad
  47. 47. BBA Programme Bharati Vidyapeeth Deemed University, Pune Yashwantrao Mohite Institute Of Management, Karad
  48. 48. BBA Programme Bharati Vidyapeeth Deemed University, Pune 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. 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 Yashwantrao Mohite Institute Of Management, Karad
  49. 49. BBA Programme Bharati Vidyapeeth Deemed University, Pune 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 Step by step procedure in online trading: Following steps explain the step by step approach to on-line trading: 1) Log on to the stock brokers website 2) Register as client/investor 3) Fill the application form and client broker agreement form on the requisite value stamp paper 4) Obtain user ID and pass word 5) Log on to the brokers site using secure user ID and password 6) Market watch page will show real time on-line market data 7) Trade shares directly by entering the symbol or number of the security 8) Brokers server will check your limit in the on-line account and Demat account for the number of shares and execute the trade 9) Order is executed instantly (10-30 seconds) and confirmation can be obtained. 10) Confirmation is e-mailed to investor by broker 11) Contract note is printed and mailed in 24 hours 12) Settlement will take place automatically on the settlement day 13) Demat account and the bank account will get debited and credited by electronic means. Yashwantrao Mohite Institute Of Management, Karad
  50. 50. BBA Programme Bharati Vidyapeeth Deemed University, Pune ONLINE TRADING HAS LED TO ADDITIONAL FEATURES SUCH AS: 1) Limit / stop orders: orders that can be go unfilled, but there is an extra Charge for this leeway facility since one need to hold a price. 2) Market orders: orders can be filled at unexpected prices, but this type is much more risky, since you have to buy stock at the given price. 3) Cash account: where funds have to be available prior to placing the order. 4) Margin account: where orders can be placed against stocks, to increase Purchasing power. ADVANTAGES OF ONLINE TRADING: 1) 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. 2) 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. 3) 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. 4) 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. 5) Individuals‟ benefit by saving comparatively a lot more when trading online as the cost per trade is less. 6) Individuals can invest in a variety of products, unlike earlier when people bought bonds, mutual funds, and stock for long-term basis and sat on them. Now they can invest in stocks, stock and index options mutual funds, government, and even insurance. Yashwantrao Mohite Institute Of Management, Karad
  51. 51. BBA Programme Bharati Vidyapeeth Deemed University, Pune INVESTORS REASONS TO TRADE ONLINE: 1) They have control over their accounts, can make their own decisions and don‟t have to give reasons for their actions. They are independent. 2) They have a reason to participate in the market and learn about it. 3) It is interesting, cheap, easy, fast, and convenient. 4) A lot of information is online so they can keep up-to-date with what is happening in the trading world. 5) It will give investors a greater choice and better realization. 6) The immediate impact will be competition and benefits will accrue to the investors. 7) It will lead to brokerage commissions going down and brokers striving to increase business afloat. 8) Investors will now go to place, which have better trading conditions and also members to offer them better facilities. 9) They have access to numerous tools to invest, and can create their own portfolio. Yashwantrao Mohite Institute Of Management, Karad
  52. 52. BBA Programme Bharati Vidyapeeth Deemed University, Pune HERE ARE THE POSSIBLE DISADVANTAGES: 1) When network crashes, there will be problems and delays due to a large influx of rapid online trading criteria. 2) Individuals are restricted to first-hand financial guidance. This simply means that the individual is himself / herself alone to. 3) A tax (sales tax and value added tax) evaluation becomes an issue, especially when you are trading internationally. 4) One has no idea with whom he is dealing with on the other end. 5) According to a study conducted by Mary Rowland, careful investor: is online trading bad for your portfolio, the more one trades the less returns one gets, meaning that an addicted trader gets, carried away online and begins to trade for too much which causes losses for him / her. 6) Individuals think that they are trading with the market directly and know what they are doing, but the truth is that even though technology has taken over, the basic rules of trading are the same. It seems that the middleman has been removed, but that is not so. When the individuals click on the mouse, his trade goes through a broker. The commissions online pertain to the intermediary. 7) There is a need for more effective communication links over the Internet and the ability of the server to deal with a large volume of visitors. Yashwantrao Mohite Institute Of Management, Karad
  53. 53. BBA Programme Bharati Vidyapeeth Deemed University, Pune TRADING AND SETTLEMENT AT SHARE KHAN The NSE first introduced online trading in India. The Online trading system imparted a greater level of transparency and investors preferred exchanges that offered Online trading because of the following factors:  The ease of operation from the view of the both members and the investors.  Increase in the confidence of the investors because of higher level of transparency.  Facilities better monitoring of the market by the exchange.  The best price achieved in buying and selling. All these resulted in ever-increasing volumes on the exchanges offering the online trading. TRADING PROCEDURE AT SHARE KHAN STOCK BROCKING ShareKhan deals in buying and selling equity shares and debentures on the National Stock Exchange (NSE), the Bombay Stock Exchange (BSE) and the Over-The- Counter Exchange of India (OTCEI). Share Khan is provided with a computer and required software from their registered stock exchanges. These centers are called “Broker Work Stations”. These computers are connected to the server at the stock exchanges through cable. The member or broker sitting in his office can send the quotations, orders, negotiations, deals, in-house deals, auction orders etc., through the computer. The Central trading system (CTS) will accept these orders and send it for match. If there is any mistake in the order, CTS will reject the orders and send respective error message to the member concern. All these operations are in built. The main objective of CTS is to monitor the Stock Exchanges operations. Order placed by the broker will be sent for a match and if the match is found suitable, the transaction will be executed. Otherwise, the order will be deleted Yashwantrao Mohite Institute Of Management, Karad
  54. 54. BBA Programme Bharati Vidyapeeth Deemed University, Pune automatically after completion of trading time. The carry forward transactions (Good Till cancellation) are forwarded to the next day. Even if the match is not found with in the prescribed period, the order will not cancel. Useful links about Sharekhan: 1. Sharekhan Website: http://www.ShareKhan.com 2. Product Demo - Speed Trade: http://www.sharekhan.com/Demos/speedtrade/index.html 3. Product Demo - Classic: http://www.sharekhan.com/Demos/classic/index.html 4. Email: info@sharekhan.com 5. FAQs: http://sharekhan.com/KnowledgeCentre/Sharekhan_FAQ.aspx 6. Phone: 022-66621111 7. Toll Free: 1-800-22-7500 TRADING SESSION Trading timings are from 9:15 A.M. to 3:30 P.M. on all 5 days of the trading period. Monday to Friday is the trading period in all the stock exchanges. SEBI has stipulated that all the stock exchanges in India must have same trading period. 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. 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. Yashwantrao Mohite Institute Of Management, Karad
  55. 55. BBA Programme Bharati Vidyapeeth Deemed University, Pune ORDERS: Orders can be done one at a time or in a batch mode. The submitted order will be accepted at the CTS, after validation if it finds any invalid reason the order is return back to the BWS, with the appropriate error message. If Accepted at the CTS it will be added to the local pending order book. The order will then be taken up for matching, if it is a buy order the system tries to find a sell order, which fits the requirement of the buy order, when such match is found a trade gets executed. Each trade involves two brokers and respective traders who sent the order. Both these traders are informed of the trade being executed at their respective BWS. At the BWS the trade is added to the local trade book. Orders sent by the brokers are two types: 1) Good for the day (GFD) 2) 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. Yashwantrao Mohite Institute Of Management, Karad
  56. 56. BBA Programme Bharati Vidyapeeth Deemed University, Pune For example, if a member a place purchase order of 500 shares of SBI @ 690 per share and selects the order as GTC and place an order. If the match is not found on that day it will be forwarded to the next day until trading settlement period day. SETTLEMENT OF TRANSACTIONS: Clearing of transaction in the form of shares and cash is called settlement. Buyers will take the delivery of shares through the depository participants like SHARE KHAN and others. Finally, the settlement is made by means of delivering the share certificates along with the transfer deeds. The transferor (or the seller) duly signed transfer deed. It bears a stamp of the selling broker. The buyer then fills up the certificates fills up the particulars in the transfer deed. Settlement can be done in the following way. Spot settlement: under this method, the delivery of securities and payment for them are affected on the day of the contract itself. Rolling settlement: Under this rolling settlement the trading is on “T+2”,basis i.e. if Monday is trading day then Wednesday is the paying day . In case on non-delivery, the securities will go for auction. DETAILS OF PROCEDURES: Delivery in : The members who are in pay-out position delivers share certificates in to clearing house within the settlement period along with the delivery Chelan filled in with the details of share certificates which has folio numbers or distinctive numbers etc. Delivery out: The buyer of shares who made pay in position will take delivery of shares from the clearing house. Yashwantrao Mohite Institute Of Management, Karad
  57. 57. BBA Programme Bharati Vidyapeeth Deemed University, Pune Pay-in: The member who is in paying position shall pay for value of shares with in the trading settlement period (T+2). Payout: The cheques paid in the clearinghouse will be paid to members who are in paying position. All disputes arising between members regarding non-deliveries, non-payments, good and bad deliveries pertaining to the settlement will be settled by the settlement committee of the exchange. Yashwantrao Mohite Institute Of Management, Karad
  58. 58. BBA Programme Bharati Vidyapeeth Deemed University, Pune The given flow chart clearly explains the process of online trading: Login Buy Sell Transaction Transaction The system will check your The system will check your selling quantity dp amount quantity OrderOrder Accepted Rejected orders would be Accepted communicated along with reasons Your order is transmitted to exchange for execution Pending buy orders would On execution of your Pending sell orders be displayed on your orders would be displayed on screen your screenYou may edit You may delete You may edit your You may deletepending orders your pending pending orders your pending orders orders Flashed on your Confirmation could Contract note would be sent to screen immediately be send to your e- by e-mail or hand delivery on execution mail and mobile Yashwantrao Mohite Institute Of Management, Karad
  59. 59. BBA Programme Bharati Vidyapeeth Deemed University, Pune Investment Solution Profile  Punch line: “Working Together For A Better Tomorrow”  Investment Solution was established on 2nd May 2011  Working under Sharekhan Ltd. Over 3,50,00,000 Turnover per day. Open 250 A/c within 6 months. Over 2000 client relations in Insurance & Mutual Fund Sector. They guide a complete investment solution in Equities,Derivatives,Insurance,Mutual Fund & Depository Services. They have number of employee and client having over 15 years experience in Stock Market. Employee Profile Mr. Nitesh Kumar Equity & Derivative Head Premnath Roy Commodity Head Dhirendra Gupta Marketing Head Vijay Kumar Authorised Signatory Raju Kumar Back Office Head Nirbhay Kumar Singh Marketing Executive Yashwantrao Mohite Institute Of Management, Karad
  60. 60. BBA Programme Bharati Vidyapeeth Deemed University, Pune Comparative Analysis Yashwantrao Mohite Institute Of Management, Karad
  61. 61. BBA Programme Bharati Vidyapeeth Deemed University, Pune THE MAJOR PLAYERS IN ONLINE TRADING 1) SHAREKHAN.COM 2) 5PAISA.COM 3) KOTAKSTREET.COM 4) INDIABULLS.COM 5) ICICIDIRECT.COM 6) HDFCSEC.COM POLL RESULTS: BROKER PREFERENCE 5paise The image cannot bedisplay ed. Your computermay not hav e enoughmemory to open the ima… 119 13.45% Sharekhan The image cannot be display e d. Your computer maynot have enough memory to open the image, or theimage may hav e been corrupted. Restart your computer, and then open the file agai n. If the red… 194 21.92% Motilal oswal T h eim a g 38 4.29% ICICI Direct The im age cannot be display ed. Your computer maynot have enough memory to open the image, or the image may hav e been c orrupted. Restart yourcomputer, and then open the file again. If the red… 192 21.69% HDFC T h eim a ge c a n… 46 5.20% Indiabulls The image cannot bedisplay ed. Your computermay not hav e enoughmemory to open the image,… 121 13.67% Kotak T h e im a g ec a n not b e dis pl ay e d. Y ou r c o … 59 6.67% Others The image cannot bedisplay ed. Your computermay not hav e enoughmemory to open the ima… 116 13.11% Yashwantrao Mohite Institute Of Management, Karad
  62. 62. BBA Programme Bharati Vidyapeeth Deemed University, Pune HDFC SECURITIES: Company Background: HDFC Securities Ltd is promoted by the HDFC Bank, HDFC and Chase Capital Partners and their associates. Pioneers in setting up Dial-a-share service with the largest team of Tele-brokers. Online Account Type:  HDFC Online Trading A/c: Plain Vanilla Account with focus on 3 in 1 advantage. Pricing of HDFC Account  Account Opening: Rs 750  Demat: NIL, 1st year charges included in Account Opening  Initial Margin : Rs 5000/- for non HDFC Bank Customers (AQB)  Brokerage: Trading 0.15%* each side + ST Delivery 0.50%** each side + ST *Rs 25 Min Brokerage per transaction **Rs 8 Min Brokerage per transaction Yashwantrao Mohite Institute Of Management, Karad
  63. 63. BBA Programme Bharati Vidyapeeth Deemed University, Pune ICICI Direct:  Account Opening: Rs 750  Schemes: For short periods Rs 750 is refundable against brokerage generated in a qtr.These schemes are introduced 3-4 times a year.  Demat: NIL, 1st year charges included in Account Opening Plus a facility to open additional 4 DP‟s without 1st yr AMC. Only Rs 100 as linking charges per DP  Initial Margin : Nil  Brokerage: ICICI‟s brokerage rates are inclusive of Stamp duty (0.002%) for trading and 0.010% for delivery while service tax (10.2%) on BROKERAGE land turnover tax is EXTRA.  Delivery Vol per QTR Brokerage Square Vol P.M. Brokerage < 10 lakhs 0.75% < 50 lakhs .10% Both Sides 10 - 25 lakhs 0.70% 50 lakhs - 2 Cr .08% Both Sides 25 - 50 lakhs 0.55% 2Cr-5Cr .05% Both Sides 50 lakhs - 1 Cr 0.45% 5Cr- 10 Cr .04% Both Sides 1 Cr - 2 Cr 0.35% 10Cr -20 Cr .035% Both Sides 2 Cr - 5 Cr 0.30% > 20 Cr .03% Both Sides > 5 Cr 0.25% ---- -------- Yashwantrao Mohite Institute Of Management, Karad
  64. 64. BBA Programme Bharati Vidyapeeth Deemed University, Pune INDIABULLS: Company Background: India Bulls is a retail financial services company present in 70 locations covering 62 cities. It offers a full range of financial services and products ranging from Equities to Insurance. 450 + Relationship Managers who act as personal financial advisors. Online Account Type:  Signature Account: Plain Vanilla Account with focus on Equity Analysis. The equity analysis is a paid service even for A/c holders.  Power India bulls: Account with sophisticated trading tools, low commissions and priority access to R.M. Pricing of IB Accounts: Signature Account Power India Bulls * Account Opening: Rs 250 * Account Opening: Rs 750 * Demat: Rs 200 if POA is signed, *Demat: Rs.200 if POA is signed, No AMC for this DP No AMC for this DP * Initial Margin: NIL * Initial Margin: NIL * Brokerage: Negotiable * Brokerage: Negotiable PAID Research: SCHEME FACILITY WebBased-1-Month-500: View & Print on Website WebBased-1-Month-6000: View & Print on Website PrintReport-1-Month-750: View & Print on Website Yashwantrao Mohite Institute Of Management, Karad
  65. 65. BBA Programme Bharati Vidyapeeth Deemed University, Pune + 10 Reports Delivered Print Report-1-Month-9000: View & Print on Website + 10 Reports Delivered Kotakstreet: Company Background: Kotakstreet is the retail arm of Kotak Securities. Kotak Securities limited is a joint venture between Kotak Mahindra Bank and Goldman Sachs. Online Account Type  Twin Advantage / Green Channel : 2 DP‟s, Limit against shares  Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction  High Trader : 6 Times Exposure Cash & Derivatives, Auto sq off 2:55  Cash Expressway : Spot payment, additional 0.5% charges For Kotak FastLane / Keat Lite / Keat Desktop are trading interfaces. Keat Desktop with advanced tools comes at a charge of Rs 500 p.m, Non refundable. PRICING OF KOTAK  Account Opening : Rs 500  Demat: Rs 22.5 p.m  Initial Margin : Rs 5000(Compulsory)  Min Margin Retainable : Rs 1000  Brokerage Slab wise: Higher the volume, lower the brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise structure w.e.f 1/4/2004 Yashwantrao Mohite Institute Of Management, Karad
  66. 66. BBA Programme Bharati Vidyapeeth Deemed University, Pune Slab structure of Kotak Delivery Vol p m Brokerage * Square Vol P.M. Brokerage ** < 1 lakhs 0.65% < 10 lakhs 0.10% Both Sides 1 lakhs - 5 lakhs 0.60% 10 lakhs - 25 lakhs 0.08% Both Sides 5 lakhs - 10 lakhs 0.50% 25 lakhs - 2 Cr 0.05% Both Sides 10 lakhs - 20 lakhs 0.40% 2 Cr - 5 Cr 0.04% Both Sides 20 lakhs - 60 lakhs 0.30% > 5 Cr 0.035% Both Sides 60 lakhs - 2 Cr 0.25% ---do--- 0.03% Both Sides >2 0.20% ---- -------- * Brokerage is inclusive of All Taxes * Brokerage is inclusive of All Taxes * DP Charges Extra * Min Brokerage of Rs 0.05 per share * Min Brokerage of Rs 0.01 per share Derivatives Vol off p m Brokerage < 2 Cr 0.07% Both Sides 2 Cr - 5.5 Cr 0.05% Both Sides 5.5 Cr - 10 Cr 0.04% Both Sides > 10 Cr 0.03% Both Sides * Brokerage is inclusive of All Taxes. Yashwantrao Mohite Institute Of Management, Karad
  67. 67. BBA Programme Bharati Vidyapeeth Deemed University, Pune Yashwantrao Mohite Institute Of Management, Karad
  68. 68. BBA Programme Bharati Vidyapeeth Deemed University, Pune 5paisa Company Background Indiainfoline was founded in 1995 and was positioned as a research firm In 2000 e-broking was started under the brand name of 5paisa.com. Apart from offering online trading in stock market the company offers mutual funds online. It also acts as a distributor of various financial services i.e. GOI securities, Company Fixed Deposits, Insurance. Limited ground network, present in 20 cities Online Account Types  Investor Terminal : Investors / Students  Trader Terminal : Day Traders / HNI‟s PRICING FOR RETAIL CLIENTS Investor Terminal  Account Opening : Rs 500  Demat 1st Yr : Rs 250  Initial Margin : Rs 2500 (Compulsory)  Min Margin Retainable : Rs 1000  Brokerage : Trading 0.10% each side + ST Delivery 0.50% each side + ST PRICING FOR HNI CLIENTS Trader Terminal  Account Opening : Rs 500  Demat 1st Yr : Rs 250  Initial Margin : Rs 5000(Compulsory)  Min Margin Retainable : Rs 1000  Brokerage : Trading 0.10% each side + ST Delivery 0.50% each side + ST (Negotiable to 0.05% each side & 0.25%)  Account Access Charges Monthly Rs 800, adjustable against Brokerage Yearly Rs 8000, adjustable against brokerage Yashwantrao Mohite Institute Of Management, Karad
  69. 69. BBA Programme Bharati Vidyapeeth Deemed University, Pune Sharekhan Company Background  Sharekhan is the retail broking arm of SSKI Securities Pvt Ltd. SSKI owns 56% in Sharekhan, balance ownership is HSBC, First Caryle, and Intel Pacific  Into broking since 80 years  Focused on providing equity solutions to every segment  Largest ground network of 210 Branded Share shops in 90 cities Online Account Types  Classis Account / Applet : Investor in equities  Speed Trade : Trader in equities & derivatives PRICING FOR HNI CLIENTS Speed Trade  Account Opening : Rs 1000 ( Refundable against brokerage in Month + 1)  Demat 1st Yr : Incl in Account Opening  Initial Margin : Nil  Min Margin Retainable : NIL  Brokerage : Trading 0.10% each side + All Taxes Delivery 0.50% each side + All Taxes (Negotiable based on volume)  Account Access Charges Monthly Rs 500, adjustable qtrly against brokerage of Rs 9000/- for qtr. No access charges for gold customers (Above 1 lac brokerage p.a) Yashwantrao Mohite Institute Of Management, Karad
  70. 70. BBA Programme Bharati Vidyapeeth Deemed University, Pune Pricing for Retail Customers Classic / Applet  Account Opening : Rs 750  Demat 1st Yr : NIL  Initial Margin : NIL  Min Margin Retainable : NIL  Brokerage: Trading 0.10% each side + All Taxes Delivery 0.50% each side + All Taxes Sharekhan online Trading Interfaces The customer can choose the online trading interface that meets his requirement based on his trading habits and preferences CLASSIC / APPLET The website is meant for customers who Invests in Equities SPEEDTRADE The speed trade is meant for customers who trade in Equities DIAL-N-TRADE - Toll Free The DNT is a value added services meant for all customers who Want to transact but are not online. DNT - TOLL FREE FERTURES  Dedicated Toll - Free number for Order placements  Automatic fund transfer with phone banking*  Simple and secure IVR based system for authentication  No wait time, on entry of Phone Id & TPIN, the call is transferred  Trusted,professional advice of Tel-brokers who offer undiluted Sharekhan Research Inputs  After-hours order placement facility Yashwantrao Mohite Institute Of Management, Karad
  71. 71. BBA Programme Bharati Vidyapeeth Deemed University, Pune CLASSIC/WEBSITE FEATURES  Facility to integrate choice of 4 Banks/DP/Trading Account  Instant credit for shares sold from DP  Automatic pick-up of shares from linked DP for pay - in  Automatic deposit of shares into linked DP after pay-out  4 Times leverage on Margin Trades  Margin Trading available for entire marker session  Slab wise brokerage structure for delivery and margin trades, shortly  Free calls for order placement on Toll-Free  Trusted, Professional advice of Tele-brokers  Facility to enter After Market Orders online & via Phone CLASSIC/WEBSITE FEATURES  Daily Research newsletter (Investor Eye) Via e-mail  Access to new IPO without any paperwork  Advanced portfolio monitoring Tools  Integrated DP account with trading account  Option of linking additional 4 DP accounts to trading account  Choice of linking 4 banks to trading a/c for online payments  Cash and Derivatives trading in a single account  E-mail confirmations for all transactions  Choice of electronic/Physical contracts SPEEDTRADE EXE FEATURES ALL THE FEATURES OF CLASSIC * Real - time streaming quotes using 2 Marker Watches * Trade Execution in 2-3 seconds * Instant Order/trade confirmations in the same window * Hot keys similar to a Broker‟s Terminal Yashwantrao Mohite Institute Of Management, Karad
  72. 72. BBA Programme Bharati Vidyapeeth Deemed University, Pune * MULTIPLE Tic-by-Tic Intra-day charts with multiple indicators * Availability of 2 ISP & 6 Servers ensuring maximum uptime * Customized alerts based on multiple parameters * Cancel All/Square Off All Facility * Window for Top Gainers, Top Losers, and Most Active updated Live Yashwantrao Mohite Institute Of Management, Karad
  73. 73. BBA Programme Bharati Vidyapeeth Deemed University, Pune SWOT ANALYSIS Strengths 1. Strong credibility among investors because of its heritage. 2. Excellent reputation among the business society. 3. Capability of providing superior customer service. 4. Quality research team. 5. Easier access to the customer due to largest ground network of 280 branded share shops in 120 cities. 6. Abundant information about economy and companies. 7. Ability to attract and retain superior and quality personnel. 8. Highly sophisticated infrastructure. 9. Efficient research and analysis team, which by interpreting the economy and company‟s performance accurately is enhancing the profitability of the clientele. Weaknesses 1. Limited customer appeal as the company product line does not include mutual funds which is increasingly becoming a preferred customer investment option. 2. Inadequate product awareness among the retail investors. Yashwantrao Mohite Institute Of Management, Karad
  74. 74. BBA Programme Bharati Vidyapeeth Deemed University, Pune 3. Limited customer appeal as the company does not have access to the BSE online space. 4. Brand awareness is low in the financial market. 5. Promotional activities conducted by the company are not at par with the other firms. Opportunities 1. Bullish phase of the market attracts investing public. 2. Access to the BSE online space for the retail investors creates opportunity to increase clientele base. 3. Awareness campaigns about online trading create new market. Threats 1. Availability of Unit Linked Insurance Policies (ULIP‟s) and mutual funds in the market. 2. Threat of entry is high in this industry as the manpower required is less and capital requirement is medium. Yashwantrao Mohite Institute Of Management, Karad
  75. 75. BBA Programme Bharati Vidyapeeth Deemed University, Pune 75 Yashwantrao Mohite Institute Of Management, Karad
  76. 76. BBA Programme Bharati Vidyapeeth Deemed University, Pune Finding & Observations Yashwantrao Mohite Institute Of Management, Karad
  77. 77. BBA Programme Bharati Vidyapeeth Deemed University, Pune Yashwantrao Mohite Institute Of Management, Karad

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