project on sharekhan

A
Summer Internship Project Report
On
CONSUMER BEHAVIOR TOWARDS ONLINE
TRADING IN STOCK MARKET
Submitted
In the partial fulfillment of the degree of
Master of Business Administration
Semester – II
Prepared By:
GUJARATI MITESH K
Enroll. No.: 137730592019
Guided By:
PROF.SUNIL MASHRU
Submitted to:
GUJARAT TECHNOLAGY UNIVERSITY

DECLARATION
I undersigned Mr Gujarati Mitesh student of SUNSHINE GROUP OF
INSTITUTIONS,M.B.A. SEMESTER – II Rajkot, hereby declare that the all
information of the Project is my own work. This project report is correct and true
to the best of my knowledge and ability and has been presented here my level best
under the supervision of my Professor SUNIL MASHRU of Sunshine college
rajkot.
This Report has not been previously submitted by the any other student for any
Examination.
Date:
Place: RAJKOT
Signature
_____________
(Gujarati Mitesh k.)

PREFACE
“With every experience you alone are painting your own canvas, thought by
thought, choice by choice.” This saying has played the guiding role in preparing
this practical financial project report of Sharekhan Ltd. This report has made it
possible for us to practically have a look at the financial conditions of the
company. The Summer Internship Project allows the student to expand their
practical knowledge and helps us to study and read business environment.
This practical training inMasterof Business Administration curriculum plays a vital
role in understanding and knowing the difficulty and challenges in the business
world. Only theoretical knowledge does not impart complete education, practical
experience must be there in order to add some meaning to education.
I have undergone my summer training at Sharekhan Ltd.It is one of the leading
broking house of the country. I feel great pleasure to present this report work after
my training at Sharekhan Ltd. that produced to be golden opportunity for me by
enriching my knowledge by comparing my theoretical knowledge with the
managerial skill and application.

ACKNOWLEDGEMENT
I Mitesh Gujarati student of M.B.A. feel great Pleasure to present this report. I am
thankful to all the persons who directly or indirectly helped me in the preparation
of this report.
I am very thankful GUJARAT TECHNOLOGICAL UNIVERSITY for
introducing this subject in course, as one becomes aware of the practical aspect of
life.
I am thankful to Sunshine college and to the respected Dean Dr. Nirmalkumar
Sharma for giving us such a valuable chance to go for Industrial Training and to do
work on this report.
I also like to thanks Prof. Sunil Mashru who guided & motivated me in preparing
the project report.
I am very much thankful to Mr. Bhavin Dhruve, Team Manager, of Sharekhan
Ltd.for being a helping hand in understanding all the details for preparation of this
report.

INDEX
Sr. No. Particular Page No.
1. Executive Summary
2. Industry Overview:
1.2 Introduction to Stock Broking Industry
3. Company Overview:
2.1Sharekhan at Glance
2.2 Functional Areas of the Sharekhan
4. Research Methodology
3.1Research Objective
3.2 Research Methodology
3.3 Review of Literature
3.4 Research Analysis & Interpretation
3.5Limittions
5. Research Finding and Conclusion
3.1 Findings
3.2 Recommendations
3.3 Conclusion
6.s Bibliography and Annexure
4.2 Bibliography
4.3 Annexure
 Questionnaire

EXECUTIVE SUMMARY
This is a project report on “Consumer behavior towards online trading.” which is
made on the basis of summer internship done at Sharekhan stock broking.
The objective of the proposed study is to identify the specific factors that affect
consumer attitudes towards online share trading. The methodological approach to
this study is descriptive, because we attempt to identify and explain variables that
exist in a given situation and to describe the relationship that exists between these
variables in order to provide a picture of a particular phenomenon, but not to ferret
out cause-effect relationship.
The primary data was collected through questionnaire filling. The secondary data
was collected through the internet. India has a large chunk of population which is
at lower income level and at middle income level. There is a need of creating
awareness among them for share trading and the tremendous potential it has. They
are doing trading on the old methods which were used in the past. Now with the
advent of technology there are many options available to the traders which they
can use without any fear.
The trend is moving towards the online share trading but still it has a lot to cover.
The traders are more of young age and middle age and don’t fear from risk taking
but the lack of knowledge doesn’t allows them to do so. So the stock broking
companies should take measures to empower the normal investors so that they can
trade with the latest technologies available.

Target the youth as they are most potential customers of the stock market as
their interest towards stock trading is increasing. The stock broking companies
should educate the investors by giving them timely help in the form of reports and
tips.The companies should try to work in more transparent way. People want good
services and are ready for paying extra penny. People prefer Ease of transactions
and security.
As per my summer internship project topic, “Consumer Behavior towards
Online Trading in Stock Market” I choose 100 people as the sample size as the part
of research and most of the people who are traded in stock market they are doing it
offline. So, there is the more scope of online trading customer and they can also try
to convert the offline customer into the online trading customer. And they can also
catch the attention of those who are investing in Mutual Fund. They have to attract
the more businessmen and the employees who are working in private or public
sector.

INTRODUCTION
Securities market has essentially divided into three categories of participants,
namely the issuer of securities, investors in securities and the intermediaries.
The security market has two interdependent and inseparable segmentsthe Primary
Market and the Secondary Market.
Primary Market:
The primary market is the part of the capital market that deals with issuing of new
securities. Companies, government or public sector institutions can obtain funds
through the sale of a new stock or bond issues through primary market.
Secondary Market:
A market where investors purchase securities or assets from other investors, rather
than from issuing companies themselves. The national exchange – such as the New
York Stock Exchange and the NASDAQ are secondary markets.

HISTORY
 1850 – Shares of banks and securities of east India Company traded in
Mumbai under a sprawling banyan tree in front of town hall, which is now in
the honiman circle park.
 1875 – Brokers organized an association known as the native share brokers
association, and the country’s first stock exchange the Bombay stock
exchange (BSE), set up in Mumbai with 318 members. The membership fee
gradually increased from Rs 1 in 1887 to Rs 1000 in 1896, and Rs 48000 in
1920.
 1956 – Securities contract regulation Act passed.
 1957 – The BSE and eight other stock exchange registered under the
securities trading contract act.
 1982 – The BSE classifies scripts into group A for carry forward, and group
B for cash transaction.
 1986 – The BSE 30 – share sensitivity index (a.k.a. the sensex) compiled;
updated every two minutes.
 1987 – Stock holding corporation of India set up.

 1992 – Ordinance promulgated for granting statutory powers to the SEBI.
The over- the counter exchange of India begins operations. The national
stock exchange incorporated.
 1994 – The NSE’s debt segment begins operation on June 30; and the capital
market segment begins online script less trading on November 3.
 1995 – the BSE computerizes its trading operation , signaling the end of 120
years of floor trading with open out cry system of share trading and the
beginning of screen – based trading on the BSE.
 1996 – NSE 50 index launched April 22. NSDL set up as the first
depositary in India, and the NSE commences trading in dematerialized
securities on December 26.
 2000 – The SEBI approves the reports on net trading brought out by the
SEBI committee on net based trading and services. Pursuant to the circular ,
stock exchanges are require to give permission to members to start net based
trading after ensuring fulfillment of the minimum conditions.

BSE (BOMBAY STOCK EXCHANGE)
 The Stock Exchange, Mumbai, popularly known as "BSE" was established
in 1875 as "The Native Share and Stock Brokers Association". It is the
oldest one in Asia, even older than the Tokyo Stock Exchange, which was
established in 1878.
 It is a voluntary non-profit making Association of Persons (AOP) and is
currently engaged in the process of converting itself into demutualized and
corporate entity.
 It has evolved over the years into its present status as the premier Stock
Exchange in the country. It is the first Stock Exchange in the Country to
have obtained permanent recognition in 1956 from the Govt. of India under
the Securities Contracts (Regulation) Act, 1956.
 The Exchange, while providing an efficient and transparent market for
trading in securities, debt and derivatives upholds the interests of the
investors and ensures redressal of their grievances whether against the
companies or its own member-brokers.
 It also strives to educate and enlighten the investors by conducting investor
education program and making available to them necessary informative
inputs.

NSE (NATIONAL STOCK EXCHANGE)
 NSE was incorporated in 1992 and was given recognition as a stock
exchange in April 1993. It started operations in June 1994, with trading on
the Wholesale Debt Market Segment. Subsequently it launched the Capital
Market Segment in November 1994 as a trading platform for equities and
the Futures and Options Segment in June 2000 for various derivative
instruments.
 NSE has been able to take the stock market to the doorsteps of the investors.
The technology has been harnessed to deliver the services to the investors
across the country at the cheapest possible cost.
 It provides a nation-wide, screen-based, automated trading system, with a
high degree of transparency and equal access to investors irrespective of
geographical location. The high level of information dissemination through
on-line system has helped in integrating retail investors on a nation-wide
basis.
 The standards set by the exchange in terms of market practices, Products,
technology and service standards have become industry benchmarks and are
being replicated by other market participants.

National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally
managed online multi commodity exchange promoted by ICICI Bank Limited (ICICI Bank),
Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural
Development (NABARD) and National Stock Exchange of India Limited (NSE). Punjab
National Bank (PNB), CRISIL Limited (formerly the Credit Rating Information Services of
India Limited), Indian Farmers Fertilizer Cooperative Limited (IFFCO) and Canara Bank by
subscribing to the equity shares have joined the initial promoters as shareholders of the
Exchange. NCDEX is the only commodity exchange in the country promoted by national
level institutions. This unique parentage enables it to offer a bouquet of benefits, which
are currently in short supply in the commodity markets. The institutional promoters of
NCDEX are prominent players in their respective fields and bring with them institutional
building experience, trust, nationwide reach, technology and risk management skills.
NCDEX is a public limited company incorporated on April 23, 2003 under the Companies
Act, 1956. It obtained its Certificate for Commencement of Business on May 9, 2003. It
has commenced its operations on December 15, 2003.
NCDEX is a nation-level, technology driven de-mutualized on-line commodity exchange
with an independent Board of Directors and professionals not having any vested interest
in commodity markets. It is committed to provide a world-class commodity exchange
platform for market participants to trade in a wide spectrum of commodity derivatives
driven by best global practices, professionalism and transparency.

FACILITIES PROVIDED BY NCDEX:
 NCDEX has developed facility for checking of commodity and also provides a ware
house facility.
 By collaborating with industrial partners, industrial companies, news agencies,
banks and developers of kiosk network NCDEX is able to provide current rates
and contracts rate.
 To prepare guidelines related to special products of securitization NCDEX works
with bank.
 To avail farmers from risk of fluctuation in prices NCDEX provides special services
for agricultural.
 NCDEX is working with tax officer to make clear different types of sales and
service taxes.
 NCDEX is providing attractive products like “weather derivatives.”
Cashew Castor Seed
Chana Chilli
Coffee - Arabica Coffee - Robusta
Common Raw Rice Common Parboiled Rice
Crude Palm Oil Cotton Seed Oilcake
Expeller Mustard Oil Grade A Parboiled Rice
Grade A Raw Rice Groundnut (in shell)

Groundnut Expeller Oil Guar gum
Guar Seeds Gur
Jeera Jute sacking bags
Lemon Tur Indian Parboiled Rice
Indian Raw Rice Indian 28 mm Cotton
Indian 31 mm Cotton Maharashtra Lal Tur
Masoor Grain Bold Medium Staple Cotton
Mentha Oil Mulberry Green Cocoons
Mulberry Raw Silk Mustard Seed
Pepper Raw Jute
Rapeseed-Mustard Seed Oilcake RBD Palmolein
Refined Soy Oil Rubber
Sesame Seeds Soyabean
Sugar Yellow Soybean Meal
Turmeric Urad
V-797 Kapas Wheat
Yellow Peas Yellow Red Maize

MCX an independent and de-mutulised multi commodity exchange has permanent
recognition from Govt. of India for facilitating online trading, clearing and settlement
operations for commodity futures markets across the country. Key shareholders of MCX
include Financial Technologies (I) Ltd., State Bank of India (India’s largest commercial
bank) & associates, Fidelity International, National Stock Exchange of India Ltd. (NSE),
National Bank for Agriculture and Rural Development (NABARD), HDFC Bank, SBI
Life Insurance Co. Ltd., Union Bank of India, Canara Bank, Bank of India, Bank of
Baroda and Corporation Bank.
Headquartered in Mumbai, MCX is led by an expert management team with deep
domain knowledge of the commodity futures markets. Through the integration of
dedicated resources, robust technology and scalable infrastructure, since inception MCX
has recorded many first to its credit.
Inaugurated in November 2003 by Shri Mukesh Ambani, Chairman & Managing
Director, Reliance Industries Ltd, MCX offers futures trading in the following
commodity categories: Agri Commodities, Bullion, Metals- Ferrous & Non-ferrous,
Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft commodities.
MCX has built strategic alliances with some of the largest players in commodities eco-system,
namely, Bombay Bullion Association, Bombay Metal Exchange, Solvent
Extractors' Association of India, Pulses Importers Association, Shetkari Sanghatana,
United Planters Association of India and India Pepper and Spice Trade Association.

Commodities
Gold, Gold HNI, Gold M, I-Gold, Silver, Silver
HNI, Silver M
Castor Oil, Castor Seeds, Coconut Cake, Coconut
Oil, Cottonseed,
Crude Palm Oil, Groundnut Oil,
Kapasia Khalli (Cottonseed Oilcake), Mustard
/Rapeseed Oil,
Mustard Seed (Sirsa), RBD Palmolein, Refined Soy
Oil, Refined Sunflower Oil, Sesame Seed, Soymeal,
Soy Seeds
Cardamom, Jeera, Pepper, Red Chilli
Aluminium, Copper, Lead, Nickel, Sponge Iron,
Steel Flat, Steel Long (Bhavnagar),
Steel Long (Gobindgarh), Tin, Zinc
Cotton Long Staple ,
Cotton Medium Staple,
Cotton Short Staple, Cotton Yarn, Kapas
Chana, Masur, Tur, Urad, Yellow Peas,
Basmati Rice, Maize, Rice, Sarbati Rice, Wheat
Brent Crude Oil , Crude Oil , Furnace Oil Middle
East Sour Crude Oil

Arecanut, Cashew Kernel, Rubber
High Density Polyethylene (HDPE),
Polypropylene (PP), PVC
Guar Seed, Guar gum, Gurchaku, Mentha Oil,
Potato, Sugar M-30, Sugar S-30,

BRIEF INTRODUCTION TO ONLINE STOCK MARKET
TRADING
Investors who are trading over the Internet or online need to know how they can
protect themselves against unexpected losses (especially in fast-moving markets)
and what additional steps to take in order to guard themselves against the typical
problems of online trading.
Online trading may be quick and easy but it still requires time and efforts. You can
buy or sell stocks from a great number of online brokers with just a click of your
mouse. However, do not forget that making wise investment decisions takes time.
Online trading may be seamless and quick but it is not always in stantaneous. A
number of technological problems can actually slow or prevent your orders from
reaching your online firm. Some of them include: a slow modem, computer, or
Internet Service Provider at the investor's end, heavy Internet traffic that is
slowing, down overall usage, inadequate hardware at the broker-dealers end, etc.
No regulations require that a trade should be executed within a certain time. If you
are unable to access your account online you should know what other options for
placing a trade you have. Your online trading firm may allow touch-tone telephone
trades, ordering by calling your broker, or placing your order. Have in mind that
sometimes turning to one of these options may increase your costs, and other times
you may still experience delays when using them.
Sometimes investors place an order, mistakenly assume that it hasn't been
executed, and place another order again. Thus, they end up either selling stocks

they do not own, or owning twice as much they wanted. If you are unsure whether
your original order was executed, don't rush in to placing it again. Talk to your
firm and clarify how to handle such situations. In other cases, investors don't make
sure that the transaction hasn't been executed when they cancel an order. You
should know that you may receive an electronic receipt for the cancellation but
your trade may still not have been canceled. Talk to your firm and ask them how
you can check to see if a cancellation has really worked. Limit your possible losses
by setting limit orders on fast-moving stocks.
By placing a regular market order, you don't have control over the price at which
the order will be filled. You hardly want to buy or sell stocks at a price that is
higher or lower than the one you have in mind so you better place a limit order. A
buy limit order will be executed only at a price that is not higher than your
preliminarily set limit price. A sell limit order on the other hand will be executed at
the limit price or higher. If you have a complaint, act promptly.

TRANSECTION CYCLE
Placing
Order
Decision
to trade
Settlement
of trades
Trade
Execution
Clearing
of Trades
Funds or
Securities
Transaction
Cycle

ADVANTAGES OF ONLINE STOCK TRADING
1. Time
Customers can trade online with a real time basis and buying and selling of shares
happens with a press of a button.
2. Flexibility
Customers can modify the placing orders according to the market movements.
3. Standardized Procedures
When the order is accepted by the exchange, it will give pay-in and pay-outdates
and customer can easily expect the cash or shares to be credited to his account.
4. One stop shop
Bank statements and transaction statements can be viewed at the click of a button.
5. Informed Researches
Service providers carry stock analysis like intraday and EOD (End of day)
technical charting which helps the customer to make right choices
6. Flexibility of timing
Customers can place orders before start of a trading session

DISADVANTAGES OF ONLINE STOCK MARKET TRADING
1. Forgetting You Are Using Real Money
In recent decades, people have become very accustomed to doing both work and
play in front of a computer monitor. When you're so immersed in an online task,
it's possible to become detached. This can cause users of online investing firms to
forget that they are using real money as they trade on the brokerage's website.
Investors may make mistakes because they make trading decisions too quickly and
get caught up in the ease of using the technology.
2. Lack of a Broker/Investor Relationship
When you invest with a traditional brokerage firm, there is a relationship with the
broker, who can become an investing mentor. The broker provides advice and
guidance to the investor. This is beneficial relationship to both parties, as the
investor gets the broker's financial expertise and the brokerage firm gets extra fees
from clients if its portfolio grows in size. With an online trading firm, all portfolios
are self-directed, which means users need to have at least a working knowledge of
the financial markets to make informed decisions. Many investors simply don't
have enough time to follow the financial markets, especially on a daily basis. This
can cause them to make inappropriate investments due to a lack of complete
information.
3. No Time to Learn Online Programs
Online brokerage firms claim their software is easy, but this isn't always the case.
Often, the software is complicated, with several different options and calculators,
and no instructions on how to actually use them. People who don't learn software
quickly may not master all the ins and outs of the program.

COMPANY DETAILS
Sharekhan
EQUITIES &
DERIVATIVES
PORTFOLIO
MANAGEMENT AND
STRUCTURED PRODUCTS
DEPOSITORY
SERVICES
RESEARCH
IPO, MUTUAL FUND
Your Guide to the
Financial Jungle
COMMODITIES

SSKI HISTORY
S. S. KANTILAL ISHWARLAL SECURITEIS PRIVATE LTD.
In 1922 Sharekhan,was founded as SSKI (ShantilalShevantilalKantilalIshwarlal)
and later on it is renamed as Sharekhan Ltd. And it is one of India’s oldest
brokerage houses having over eighty years of broking experience.
 Founding member of the stock exchange, Mumbai and pioneer institutional
broker.
 SSKI is the only domestic player in a market crowded by 44 multinational
securities firms.
 venture into institutional broking and corporate finance 18 years ago
SSKI group also comprises institutional broking and corporate finance 18
years ago. While the institutional broking division caters to the largest
domestic and foreign institutional investors, the corporate finance division
focuses on niche areas such as infrastructure, telecom and media. SSKI
holds a sizeable portion of the market in each of these segments.

 predecessor of investment research in the Indian market,
SSKI provide the best research coverage amongst broking houses in India.
The company’s research team was set up in des. 1992 and is rated as one of
the best in the country. Voted four times as the top domestic brokerage
house by Asia money survey, SSKI is consistently ranked amongst the top
domestic brokerage houses in India.
 Retail broking started in 1985
 Research group was set up in December 1992
 It acts as a pioneer of investment research in the Indian market aimed at
generating quick investment ideas.
 Its research team is rated as one of the best in the industry……across retail
& institutional.
 Group interest in investment banking, institutional broking and retail
broking.
 It is an integrated equity solution provider.
 It commands good market share of the institutional business.
 It has over 60 institutional client spread over India, Far East, UK and US.
 It occupies 65% of business share from foreign institutional investors.
 Its daily turnover average to US$ 2 million.
 The private equity deals sum over US$ 1 billion.
 SSKI named its online division as “share khan” on February 8, 2000
coinciding with the launch of its website.

VISION
 To empower the investor with quality advice and superior service to help
him take better investment decisions. We believe that our growth
depends on client satisfaction.
MISSION STATEMENT
..to educate and empower the
individual investor to make
better investment decisions
through
QUALITY ADVICE
INNOVATIVE PRODUCTS
and
SUPERIOR SERVICE

 To provide the best Customer Service and Product Innovation tuned to
diverse needs of clientele.
 Continuous up-gradation with changing technology, while maintaining
human values.
 Respond to progressive globalization and achieving international standards.
 Efficiency and effectiveness built on ethical practices.

ABOUT SHAREKHAN
1. Earlier Name: Shantilal Shevantilal Kantilal Ishwarlal
Securities Pvt. Ltd.
2. New Name: Sharekhan Ltd.
3. Year of Establishment: 8 February, 2000
4. Head Office: Sharekhan Ltd.
A – 206, Phoenih House,
BaptaMarg, Lower Parle,
Mumbai – 400013
5. Promoter: Shripal Morakhiya
Shreyas Morakhiya
6. Chief Executive Officer:Tarun P. Shah
7. Director of Operation: Shankar Valiya
8. Director of Product: Jaideep Arora
9. Branch Address: 103/104, Sakar Complex,
Dr. Radhakrishna Road,
Opp. Rajkumar College,
Rajkot – 360001
10. Branch Manager: Mr. Malay Popat
11. Web-site: www.sharekhan.com
12. Phone No.: 0281-2482483 / 4

SSKI group – corporate structure
Owns 56% of Owns 50.5% of
SSKI Securities Pvt. Ltd.
Morakhia Family & Associates
SSKI Corporate Finance Pvt. Ltd.
50.5% SSKI Securities Pvt. Ltd.
49.5% Morakhia Family
Chart-1
SSKI Investor Securities Pvt. Ltd.
Retail broking arm of the group
Shareholding Pattern:
55.5% Morakhia Family (Promoters)
18.5% HSBC Pvt. Equity India Fund Ltd.
18.5% First Carlyle Ventures, Mauritius
7.5% Intel Pacific Inc.
Investment banking arm of the
group
Shareholding Pattern:
SHAREHOLDERS & SHAREHOLDING PATTERN:
Table-
1
Sr. No. Shareholders Holding
%
1 Citi Venture Capital & Other Private Equity Firms 81
2 IDFC (Infrastructure Development Finance
Company)
9
3 Employees 10

PRICING POLICY OF SHAREKHAN:-
Parameters A/c Opening Fee Brokerage Interface
Trading
A/c
Demat Delivery Square
Off
Banks Associated
with
ShareKhan 400 NIL 0.40 0.07 HDFC, AXIS,
OBC, IDBI, ICICI,
IndusInd, SBI, UBI,
BOI
ICICI Direct 750 NIL 0.75 0.18 ICICI Bank
Indiabulls 750 250 0.40 0.10 N.A.
Kotak Street 500 N.A. 0.50 0.06 Kotak Bank &
Citibank
HDFC Securities 700 NIL 0.50 0.15 HDFC & Other 4
Banks

INDUSTRY ANALYSIS USING PORTER’S
(5 FORCES MODEL)
POTENTIAL
ENTRANT
 Investment
 Various Banks
SUPPLIERS
 Web maintainers
 NSCL
 CSDL
 NSE
 BSE
 MCX
 NCDEX
COMPETITORS
 ICICI Web Trade Ltd
 5paisa.com
 Kotak Securities Ltd
 India Bulls
 MotilalOswal
Securities Ltd
BUYERS
 Small Investors
 Franchise/Business
 Partners
 HNI’s
 MF Companies
 HUF
 Institutional
Investors
SUBSTITUTES
 Mutual Funds
 Insurance
 Bank FD

(Chart – 2)
SWOT Analysis
1. Strength of Sharekhan
Scale Growing retail network across
 279 franchisees + 115 branches *
 1950 Share Shops*
 575 cities*
Technology Robust platform
 Processing 150000 transactions everyday
 Scalable to 750000 at very low cost/time
Human
capital
1. 1650 employees and growing low turnover rate
compared to Industry.
2. Standards performance- driven work ethics.
Brands One of the most visible brands since inception among
the top 3 Retail brokers in India.
Table-2
(* Data as per the Sharekhan Value Guide, JUNE 2014)

2. Weakness of Sharekhan
 Lack of enough promotional measures or advertising
 No. of trading centers are less compared to other stock broking companies.
3. Opportunities to Sharekhan
 Scope of expansion
 Increasing interests and knowledge of people towards share market
4. Threats to Sharekhan
 Competition from major stock brokers and new entrance
 Introduction of new technology

Share khan offers online trading account through which a customer can buy and
sell shares in an instant from any part of the global trough website. It does not take
account any type of physical restriction of going to the broker for carrying out a
transaction or any type of settlement of payment. It facilitates the customer a
speedy and hassle free transaction. Share khan’s product consists of a 3-in-1
concept, which integrates;
1. Trading account
2. Demat account
3. Linking with the saving account.
Through its trading account, a share khan customer can directly transfer his
fund from his savings bank account affiliated to share khan to his trading account
without any paper work. He can buy and sell shares from the website and also view
the market prices of the shares he trades on the terminal.
To open an account a customer requires filling up a form consisting of
agreements, a passport size photograph, a residential proof, a photo id proof and a
cheque drawn of respective amount in favor of S.S.kantilalishwarlal securities
private Ltd. After opening an account with share khan, a customer will be given
user id, membership password and trading password, which will enable him to
access his account and trade.

RESEARCH DEPARTMENT
All the suggestion, tips and high performance trading recommendation are
received from the research team of share khan consisting of 38 dedicated analysts
who have years of working experience in the industries that they track, and a
proven track record in using their knowledge of the investment science to deliver
results. Share khan boasts of strike rates as high as 70-90% in booking
recommendations in the money. “The company believes in not to lose money and
to make some.”
 Depository services.
 Portfolio Doctoring
 Alpha Delivery
 Wealth of content and tools to help you make sound investment
decisions.
 Stability and security.
 Substantial shareholding by prestigious foreign institution.
 Personalized attention.

PRODUCT AND SERVICES OFFERD BY SHAREKHAN
1. Sharekhan Depository Services
Dematerialization and trading in the demat mode is the safer and faster
alternative to the physical existence of securities. Demat as a parallel solution
offers freedom from delays, thefts, forgeries, settlement risks and paper work. This
system works through depository participants (DPs) who offer demat services and
the securities are held in the electronic form for the investor directly by the
Depository. Sharekhan Depository Services offers dematerialization services to
individual and corporate investors. Sharekhan is a registered Depository
Participant (DP) with National Securities Depository Ltd. (NSDL). It has a team of
professionals and the latest technological expertise dedicated exclusively to our
demat department, apart from a national network of franchisee, making our
services quick, convenient and efficient. At Sharekhan, the commitment is to
provide a complete demat solution which is simple, safe and secure.
2. Investment Avenues
a. Equity Shares
Equity shares represent ownership capital. As an equity shareholder,
you have an ownership stake in the company. This essentially means
that you have a residual interest in income and wealth. Perhaps, the
most idealistic among various investment avenues, equity shares are
classified into the blue chip shares, growth shares, income shares,
cyclical shares, speculative shares by stock market analysts.

3. Mutual Funds:
Instead of directly buying equity shares and/or fixed income instruments, you
can participate in various schemes floated by mutual funds which, in turn invest in
equity shares and fixed income securities.
4. Life Insurance:
In a broad sense, life insurance may be viewed as an investment. Insurance
premiums represent the sacrifice and the assured sum of the benefits.
5. Precious Objects:
Precious objects are items that are generally small in size but highly valuable in
monetary terms. Some important precious objects areGold and Silver, Precious
stones or Art objects

6. Financial Derivatives:
The most important financial derivatives from the point of view of investors are;
 Options
 Futures
7. Commodity:
Today the business is not limited to our area only. Where the production is less
but, demand is comparatively high prices of the product will go up. On the
contrary where the production is high but demand is comparatively low the prices
will go down.
 If sellers and buyers come together at a place then it will create a market.
Here against one seller there will be more than one buyer. In this market
buyers will come across the country for transactions.
 In this market not only producer and seller are included but arbitrageur,
speculator, and hedger can tread. In this way the total area of market will
become broad.

 In our country agricultural products from 25% of GDP. Total turnover of
commodity of market is nearly Rs.1, 10,000 corers. In which 60,000 corers
comes from agriculture and left is coming from coal, crude, etc.
Today in our country most of the trade is done in unorganized market. In the
market current and future contracts are done. Promissory contracts have been
started science 1875. But due to some restriction it was not properly worked.
Presently nearly in 122 commodities tread is being done.
8. Currency
Currency futures are standardized foreign exchange contracts traded on a
recognized stock exchange to buy or sell one currency against another on a
specified future date, at a price specified on the purchase or sale date. It is a
contract to exchange one currency for another currency at a specified date and a
specified rate in the future. Therefore, thebuyer and the seller lock themselves into
an Exchange Rate for a specific value or delivery date.
There are three participants of currency:
 Hedgers
 Hedgers face risk associated with the price of an asset.
 They wish to eliminate or reduce the price risk to which they are
already exposed.
 They use futures or options markets to reduce or eliminate this risk.

 Speculators
 Participants who wish to bet on future price movements of an asset.
 Futures and Options contracts can give them leverage(i.e. by putting
in small amounts of money upfront, they can take large position in the
market)
 As a result of this leveraged speculative position, they increase the
potential for large gains as well as large losses.
 Arbitragers
 They work for making Profits by taking advantage of discrepancy
between prices of the same product across different markets.
 They profit from price differential existing in two markets by
simultaneously operating in two different markets
 e.g. If they see the future price of an asset getting out of line with the
cash price, they would take offsetting position in two markets to lock
in the Profit.

MARKETING DEPARTMENT
The main aim of marketing activities at Sharekhan is that the customer should
get enough guidance to join the company and how he can get the best service than
any other stockbroker. There is an officer for handling the marketing activities
followed by two executives and it is not limited to them but the other people are
also having some responsibilities to increase the no. of clients and retain them by
providing them the services needed by them.
There are many services those are designed such that the specific target
segments of the customers are covered and the products are positioned in the minds
of customers as the best one in India. The services are as given below:
Sharekhan is India’s leading national network of stock-broking outlets. It is
having the largest retail distribution chain in India. Sharekhan is not only a share-broking
firm, but it avails of various services and other financial products to its
clients.
1. Offline Trading facility
2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading
and NEAT, i.e. National Exchange Automated Trading)
3. Free access to investment advice from Sharekhan’s Research team.
4. Derivatives trading, i.e. Futures and Options (through NEAT F&O)
5. Internet based online trading.
6. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc

FREE ACCESS TO INVESTMENT ADVICE THROUGH R&D
The Research and Development at Sharekhan is done at its Head office
Mumbai. From there it forwards the relevant data and tips on particular shares and
scripts at the relevant time. The R&D department Head Mr. HemangJani forwards
all the details regarding all stocks and scripts to all the branches through internet.
At the end of each trading day there is a Teleconference, through which the R&D
department Head Mr. HemangJani talks with each Branch heads and discusses
about each day’s closing position and shows their predictions about next day’s
opening position. The quarries regarding stock positions and other relevant matter
of the branch heads of each branch is being solved through teleconference. The
various publications of Sharekhan viz. Commodities Buzz, Commodities Beat,
Commodity Trader’s corner, Sharekhan Xclusive, etc. are being prepared by the
research team of Sharekhan made up of highly experienced people from diverse
field
ONLINE IPO
Online IPO (Initial Public Offering) is a new service started by Sharekhan
for providing the application form of any company’s issues of just like the TCS
issue can be subscribed by filling an online form to reduce the paper work and the
fund transfer facility is also provided to the clients for transferring the funds
online. It is given on its web-site for helping the clients who are not able to collect
the forms manually and the speed of filling and reducing the risk of misplacing of
forms, not reaching in time, etc.

MARKETING MIX
The marketing mix of Sharekhan is an excellent example we have seen in
the industry because no other brokering organization has such products to target
the investors of different minds, incomes and aims. There is an objective of
satisfying the customer as to make him delighted with affordable prices and
convenient services. The fourth P of the marketing mix is the best at Sharekhan in
India because the total no. of share shops are widespread all over to have the
maximum contacts and awareness about Sharekhan, and we can say that it has
achieved that because it is having the maximum turnover than any other broker in
India. The Classic, Speed Trade and Speed Trade Plus are the trading products,
which are one of the bests in the market.
The marketing is done based on leads generated through the web contact;
tele-contact and personal contact with the customer and is a planned procedure to
find out new customers. The marketing management is carried out in an excellent
way at Sharekhan.

PRODUCTS OF SHAREKHAN
Sharekhan‟s products are basically divided into online and offline products.
Off - Line Other Services
Other Services:
SHAREKHAN
Trade tiger
On - Line
Classic Speed Trade
1. Equity Trading
2. Depository Services
3. Commodity Trading
4. Derivative Trading (F&O)
5. Mutual fund
6. Portfolio Management Services
7. IPO
8. Insurance
9. Currency
10. NSEL
Dial and Trade

OFF-LINE TRADING ACCOUNT:
The Off-Line account is trading account through which one can buy and sell
through his/her telephone or by personal visit at sharekhan shop. This a/c is for
those who are not comfortable with computer and want to trade.
ON-LINE TRADING ACCOUNT:
The Online trading facilities provided by Sharekhan is basically divided into
two types of accounts, viz. Classic Account and Speed trade Plus and Streamer.
1. Classic Account
The CLASSIC ACCOUNT is a Sharekhan online trading account, through which
one can buy and sell shares through our website www.sharekhan.com in an instant.
Along with enabling access for you to trade online, the CLASSIC ACCOUNT also
gives you our Dial-n-Trade service. With this service, all you have to do is dial 1-
600-22-7050 to buy and sell shares using your phone.
9 Features of the CLASSIC ACCOUNT that enable you to invest effortlessly-
1. Online trading account for investing in Equities and Derivatives via
sharekhan.com
2. Integration of: Online trading + Bank + Demat account
3. Instant cash transfer facility against purchase & sale of shares
4. Reasonable transaction charges
5. Instant order and trade confirmation by e-mail
6. Streaming quotes
7. Personalized market watch
8. Single screen interface for cash, derivatives and more

9. Provision to enter price trigger and view the same online in market watch
2. Speed Trade:
SPEEDTRADE is an internet-based software application that enables you to
buy and sell shares in an instant. It’s ideal for active traders and jobbers who
transact frequently during day's trading session to capitalize on intra-day price
movements.
Speed Trade also provides the features of and functionality of trading in
derivatives from the same single-screen interface.
7 Features of Speed trade Plus that enable you to trade effortlessly-
1. Instant order Execution & Confirmation
2. Single screen trading terminal
3. Real-time streaming quotes, tic-by-tic charts
4. Market summary (most traded scrip, highest value)
5. Hot keys similar to a brokers terminal
6. Alerts and reminders
7. Back-up facility to place trades on Direct Phone lines

 A/C Opening Charges Rs.1000 (onetime Charge).
 For 1st Year Demat A/C is Free, from 2nd Year AMC charge is 400
per/year.
 ShareKhan has tie up with 13 banks through which one can transfer or
withdraw his fund online. Which are as follows:
1. HDFC Bank
2. IDBI Bank
3. AXIS Bank
4. OBC Bank
5. CITY Bank
6. Indusind Bank
7. Union Bank of India
8. ICICI Bank
9. SBI Bank
10. BOI Bank
Anyone who have A/C either of above banks they can use this facility.
Otherwise one has to make fund transfer or withdraw by cheque.

PROMOTION
Promotional activities at Sharekhan are done by web, e-mails and personal
contact. Sharekhan is also organizing seminars and presentations and promotes its
services to the clients. It is spending Rs.20000 per month for promotional
activities.
As explained earlier, Sharekhan is having the largest distribution chain of retail
outlets of share shops. And it can be seen also because there are 180 share shops
in 90 cities, which gives the maximum awareness to Sharekhan. The distribution
of Sharekhan is also proved by its turnover and awareness among the investors in
the stock market.
The marketing strategies followed by Sharekhan at this point are as given below:
 The excellent marketing mix i.e., the Product-Price-Place-Promotion and for
services additional 3Ps viz. People, Process and Physical evidence, are
managed according to the needs of the customers and try the best to deliver
the maximum value to the customers for what they pay a price.
 The HR and Operations are one of the best at Sharekhan to help the
customers for getting the needs fulfilled with a family culture and
atmosphere of harmony, peace and brotherhood and it is focusing on the
specific segments like HNI, Delivery-based and Intra-day trader

FINANCE DEPARTMENT
Like blood is the most important factor in our body, Finance is the blood of
any business. Finance is needed for all the activities like production or services as
well as their distribution. The finance department directly influences all the
functions of the other departments. Also finance has to give equal importance to all
departments. Finance is that administrative area or set of administrative function in
an organization may have the means to carry out its objective as satisfactorily as
possible. Sharekhan has special accounts department for separate calculation of
pay-in and pay-out of funds according to the client’s Profit/Loss. Finance
management is done at Sharekhan is done by managing the stocks in the demat
accounts and funds in the margin & trading
FINANCE
DP ACCOUNT
Finance is the lifeblood of an organization to continue its activities and the
finance management at Sharekhan can be divided into two major parts viz. DP
(Depository Participation) and Accounts management, which are shown in the
figure given above.

DP is treated as a separate department at Sharekhan and is covered in the
back office management in the organization structure. In simple words, DP means
providing the facility to the clients for managing the stock bought/sold by them.
DP covers two major terminologies viz. settlements and the auction which is a
part of managing demat account. Settlements as defined by SEBI (Securities
Exchange Board of India) are T+2, currently and it means that the demat account
of the clients are prone to be sufficient for selling a script with no debit at all, i.e.,
the account must have the sold amount of stock to fulfill the settlement after 2 days
from trade-day. The settlements for Day-Traders is not needed because they
buy/sell stocks in that particular day, only the delivery trades are needed to be
settled because if you sell 1000 shares of, say SAIL then your account must have
the stock before you sell it or it must be there in you demat before the next days
trading begins (market opens). Generally, the timings are 9:30 and 3:00 as a
deadline for the client and he must provide the stock for giving a delivery to the
buyer. The chart show the total transaction between two clients:
C DP (Sharekhan) E DP (anyone) C
The chart shows the process that the request for selling and buying passes through
the DPs of the respective clients and finally the exchanges like SKSE (Saurashtra
Kutch Stock Exchange) becomes the controlling intermediary for the delivery of
stocks and this process is done in two days. Nowadays, as banks are becoming fast
for E-Fund Transfer (EFT) and Phone-banking is getting more popularity, SEBI is
thinking to make the financial market of India to have a maximum speed of

transactions just like the other nations in the world and proposing for T+1
settlement scheme but the system is not enough competent for that thing.
The client, if not capable of providing the delivery of say, 1000 shares of
SAIL then the Auctions are initiated by the exchanges and the client has to pay for
the price prevailing in the market with 4-5% penalty. The penalty can go on
maximum to 20% more than the market price of the sold stock. Generally, it is
known as a buying auction and a same kind of auction is for selling the stock for
which the buyer was proved unable to pay the price is carried out by exchange,
known as the selling auction. And a debit or credit note is provided in the
respective case of auction to the clients, i.e., for buying auction debit note is given
on the T+4 basis and in case of selling auction the credit note is given on T+5
basis. There are two types of auctions called as Internal auctions & Market
auctions, the internal auctions are defines as the auctions carried out between the
other shops of Sharekhan and market auctions are those as explained earlier, the
auction carried out in the market.
This is all about settlements but now switch to funds management or
accounts management at Sharekhan. The accounts are different that is the margin
a/c for deposits of the client and trading a/c for which Profit/Loss are settled. The
collection of funds from the clients who had a debit balance or made a loss are
made on the next day of trading and the payments to the profiting traders are made
after two days of trading because the cheques are received from H/O and then pay-out
is done and Pay-in is as explained that amounts to be taken from the clients. In
this way, accounts are managed but in case if the client is unable to pay, the
deposit from the margin a/c is cut down to the payments and in case if a client is
having a credit balance in F&O trading though he had a debit balance in cash-NSE

& BSE trading, a JV request is sent to H/O for totaling the three balances. The
main aim for accounts management is that the clients must have a credit or no debit
on the next day.
The DP services provided by Sharekhan are falling under the regulation of NSDL
(National Securities Depository Limited) and CDSL (Central Depository
Services Limited), organizations governed by SEBI to regulate the depository
services in the interest of the investors. So, the financial market in India is
governed by Ministry of finance under which two major bodies viz. SEBI & RBI
are covered and under RBI the banks and other financial institutions are covered
while SEBI covers the exchanges, NSDL & CDSL and the whole DP service
providers with the brokers to the investors.
In this way we have gained a meaningful knowledge about India‟s financial
market and its structure from this training at Sharekan. In this way, the finance
function is carried out at Sharekhan by following the guidelines given by SEBI.
And the company is a private limited one with its own policies for disclosing its
financial statements, so we are not able to give any figures for showing the
financial position of the company.

SHAREKHAN- ONE OF THE FASTEST GROWING FINANCIAL
SERVICES COMPANY IN INDIA
Network
10 lakhs Customers & Growing
82
Online Business is 50%
1500 Share Shops
across300+Cities
800
700
600
500
400
300
200
100
> 3000employees
Most preferred broking website in India
147 176
228
410
607
704
0
2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007 Sep-07
Winner of
Chip
magazine’s
‘Best
Financial
Website
Award’

HUMAN RESOURCE DEPARTMENT
Human resource is the crucial resource that a company can use to grow with
the work of the employees. HRM activities at Sharekhan start form induction to the

specific job training and are done by H/O at Mumbai. H/O takes a written test and
selection interview for filling up vacancies in branches but the recruitment is done
by the branch itself and the selection is performed by H/O from the screened
applicants.
Any new recruit is firstly inducted to the company and sent to T & D
department that is covered under HRD and T & D programmes makes employees
aware about all the activities/jobs within the department he/she is to be recruited.
Then the specific job training is provided at H/O and the person has to keep in
touch with the concerned department at H/O on internet because he/she has t solve
many conflicts arising in the investor‟s mind and to have an up-to-date information
regarding the procedures and any new facilities or policies to resolve the problems
of the clients.
HRP (Human Resource Planning), HRIS (Human Resource Information
System), Recruitment & Selection, Career planning and development, Assessment
& development of employees for Performance appraisal, etc. activities of
managing the HR at Sharekhan is maintained in a way to meet the requirements.
The corporate culture at Sharekhan is maintained in such a way that the people are
helpful to each other and eager to get the work done as soon as possible with a co-operative
thinking. An additional Rs.10000 is provided for each outlet of
Sharekhan to motivate its employees by performance appraisal and also the heads
of each departments and branches has to go through a 3606 performance appraisal
for maintaining the consistency in growth of the company.
In the end we can say that the human resource of Sharekhan is a best
managed and used for the continuous growth and development of the company for
its future plans to be achieved time-to-time.

OPERATIONS STRATEGY AT SHAREKHAN
Operations strategies are implemented in Sharekhan as shown in the chart
given above and the main points of consideration are Efficiency, Dependability,
Quality and Flexibility.
The points demand a facility mission that is made up of process, capacity,
facilities, vertical integration, and infrastructure facilities provided to get the
desired outputs as per the plan.
The main aim of the operations strategy at Sharekhan is that the efficiency of
the organization and high level of it is desired outputs with low costs, i.e.,
productivity with effectiveness. Quality should be high and consistent in delivering
services; Flexibility is related with fast introduction of new services and providing
a wide range to select an option to the customer. This is facilitated by the process
of operations, capacity/ability of the organization, competitive advantages, vertical
integration and the infrastructure created by the firm.
Sharekhan plans the strategies to get a working plan from it and the planning
is done from top-to-bottom level, i.e., national level, regional level, divisional level
and the branch level planning is carried out by the managers.
In this way, the Operations are managed with the best efforts in a direction
that is to facilitate future plans by achieving success in time and create milestones
in the industry by driving the company with excellence.

RESEARCH OBJECTIVE
The main objective of the study is to check consumer behavior towards
online trading in stock market among the people of Rajkot City. The objective of
any research is basically divided into two categories.
Primary Objectives
To study the “consumer behavior toward online trading in stock market”.
Secondary Objectives
 To study trading frequency through online trading
 To study investment decision making in online trading
 To study over all influence of online trading to the security market.

RESEARCH METHODOLOGY
SOURCES OF DATA:
The task of data collection begins after a research problem has been defined
and research plan chalked out. While deciding about the method of data collection
to be used for the study, first of all the sources of data must be very clear.
There are basically two sources of data.
 Primary Data Source:
The primary data are those, which are collected afresh for the first time for the
problem solution, and thus happen to be original in character. It may be obtained
from individual, families and representative or from organization.
 Secondary Data Source:
The secondary data are those which have already been collected by someone
else and which have to decide which have already been passed through the
statistical process. Externally, these sources may include books or periodicals
reports, data services and computer data banks.
In the context of the project study, the source of data used by me for this project
is primary type of sources. The primary data source is the respondents who have
filled the questionnaire.

SAMPLING PLAN:
 Sampling Unit:
The sampling Unit is the entity to which we have to follow during the whole
research study.In the context of the project study, the sampling unit primarily
consists of Individuals who may be Businessmen, Professional, Government
employee, Employees working in the private firmAnd other persons.
 Sampling Size:
It plays an important role in the research. Samples are representative of the
whole population. This refers to the no. of items to be selected from the universe to
constitute a sample.
In the context of the project study, 75 respondents are chosen keeping in view
the above constrains. Attempts have being made to see that samples are chosen
from different strata.
1. Sampling Methods:
There are various methods of sampling in the context of my project study I have
selected Non-probability Sampling Method. And under that, I have taken
Convenience Sampling. Under this I prepared a simple questionnaire to collect the
information.

2. Data Collection Method:
Data collection is done basically in three ways: Observation Method, Survey
Method and Questionnaire. And in the context of my project study, I have selected
questionnaire method for collecting the data.
3. Data Analysis & Interpretation:
Data analysis is based on the data collected by the questionnaire. From the
collected data findings are extracted. The data is tabulated and frequency
distribution chart is prepared.
i. Data Analysis By Charts:
Charts make easy to understand. Therefore I have use pie chart and histogram to
present the data.

REVIEW OF LITERATURE
1. Intention To Adopt Online Trading: Identifying The Future Online
Traders
Yinghao Mickey Li, Jinkook Lee and Brenda J. Cude
This paper is based on the first author's thesis, which won the 2002 American
Council on Consumer Interests thesis award. The dataset was provided to the
second author by Larry Cohen, the director of Consumer Financial Decisions of
SRI Consulting Corporation.
This paper proposes that investors' intention to adopt online trading in the future is
influenced by investment, psychology, technology and demographic factors. Data
from the 2000-01 Macro Monitor database are employed in this study. Macro
Monitor is a biennial survey conducted by the Consumer Finance Decision section
of SRI Consulting Corporation. The sampling method of the survey is two-stage
random sampling. The first step is a stratified disproportionate random sampling.
And the second step is a simple random sampling. Sample size was 3759
household in 2000 in U.S.
Among the investors, there were 389 current online investors and 1,066 current
offline investors. On average, online investors were younger than offline investors
and had more education than offline investors. Online investors traded 29.2 times a
year, while offline investors traded only 7.1 times a year. In terms of trading
volume, online investors also traded a larger sum of money than offline investors.

2. Impact of online trading on customer satisfaction in Tehran stock
exchange
DelbarJafar Pour, Lulea University of technology - master thesis,
continuation courses - marketing and e-commerce.
The aim of the study is to indicate how Indian traders rank quality factors and if
online trading system could enhance their satisfaction level or not?
For research distributive and explorative research designs are used and for data
collection survey method is used. There were 300 invitees were invited for the
purpose of survey.
Result shows that there is a meaningful difference between traders’ satisfaction in
conventional stock exchange. And existence of online trading system in stock
exchange can raise the degree of traders’ satisfaction.

RESEARCH ANALYSIS AND INTERPRETATION
1. Different age group of respondent:
AGE %
Below 30 54
31 – 45 32
46 – 60 11
Above 60 3
Chart Title
0%
11%
3%
32% 54%
AGE
Below 30
31 – 45
46 – 60
Above 60
From the above chart we can know that young persons are interested in
investing in stock market and also it shows their risk taking willingness and
accurate decision making ability. If look at adult group then they are also little bit
taking interest in stock market.

2. Education:
EDUCATION %
Undergraduate 23
Graduate 48
Post graduate 29
23%
Education
48%
29%
60%
50%
40%
30%
20%
10%
0%
Undergraduate Graduate Post graduate
Above chart shows that more graduate people takes initiative towards stock
market working than under graduates and post graduates It can also be derived
from the chat 4 that people who are younger and graduates would like to work in
stock market.

20%
40%
29%
11%
Occupation
Professional
Businessman
Working in Pvt. Firm
Government Employee
3. Occupation:
OCCUPATION %
Professional 20
Businessman 40
Working in Pvt. Firm 29
Government Employee 11
As businessmen are more accurate decision makers and also risk takers,
therefore they takes more interest in stock market working. Compare to
professional, government employee and working in private firms. While
employees working in private Firms are also growing as stock market investors.

4. Where do you invest your savings?
Use of Saving Option %
Bank FD 10
Mutual Fund 28
Shares / Equity 42
Insurance 15
other 5
45
40
35
30
25
20
15
10
5
0
Bank FD Mutual Fund Shares / Equity Insurance other

If we evaluate all the above charts then we can make note that younger,
graduate and businessmen are stock market investors, therefore it directly implies
more use of their savings in stock market as shown in chart. While about 13-18%
of saving goes tobank FD, mutual fund, insurance. And due to increasing
knowledge, risk taking willingness and changing market trend, very less people
goes to postal schemes investment.
5. Do you participate in equity market? If yes, what best describes you as
Participation as % No of
participant
Investor 65 45
Trader 35 25
% of participants
Investor
Trader
As investment is safer than trading, therefore more portion of the market prefers
investment to trading, in spite of existence of more risk takers. Portion of trading is
not that much of less than investment, but due to involvement of more loss of
money enables less people to go for it.

6. In your opinion, which medium is the more reliable for trading in stock
36%
64%
Medium for Trading
Through Broker
Online Direct Participant
market?
Medium for Trading %
Through Broker 36
Online Direct Participant 64
Increased use of internet technology has lead people to go for more online
direct participant. Online direct participant also gives some benefits of time and
cost saving, less paper work and fast decision making.

7. Out of following online traded products, in which you trade regularly?
Online Traded Products %
F & O 34
Cash 38
Commodity 21
Currency 7
Chart Title
34%
7%
38%
21%
F & O
Cash
Commodity
Currenncy
As people more prefer investment in cash therefore is more online traded
product F n O and commodity are traded nearby 21-38%. While currency is less
preferable by respondents due to high risk involvement.

preferance of online trading
35%
26%
21%
18%
Online Fund Transfer
Comfortable Trading
No Geographical
Boundary
Paperless Transaction
8. Why do you prefer online trading?
Preference %
Online Fund Transfer 26
Comfortable Trading 27
No Geographical Boundary 23
Paperless Transaction 26
From the above chart we can conclude that 35% respondent are doing online
trading due to online fund transfer while 26% are because of the comfortable
trading and 18-21% are doing because of the no geographical boundary and
paperless transaction.

9. Which online trading platform you prefer the most?
Trading Platform %
Trade Tiger 64
ODIN 8
NOW 9
Trade Racer/ Icici Direct 19
64
8 9
19
70
60
50
40
30
20
10
0
Trade Tiger ODIN NOW Trade Racer / ICICI
Direct
Trading Platform
Most of the respondent are prefer the Trade Tiger for the trading than other
because of the different features and options are available in trade tiger and the
technical charts are also there.

10. Which one will influence your online trading decision making?
8%
11%
13%
15%
13%
15%
14%
11%
Influencer
Independently
Broker/ Agent's Advice
News Channels
Newspapers
Advice of Friends/ Colleagues
Internet
Well-Known Stock Broking
House
Business Magazine
Influencer %
Independently 8
Broker/ Agent's Advice 11
News Channels 13
Newspapers 15
Advice of Friends/ Colleagues 13
Internet 14
Well-Known Stock Broking
15
House
Business Magazine 11

From the above chart we can conclude that more of the respondents are
influence through the newspaper or by the well know stock broking house
decision. 14% are from the internet and 11-13% are by the Brokers/ agent’s advice,
business magazine, news channels and friend’s advice. And only 8% are take the
decision by their own.
11. What is the order of importance for you as online market participant?
%
Fast Executive System 42
Much Cheaper 35
User Friendly 23
Preference in online Market
42%
23%
35%
Participant
Fast Executive System
Much Cheaper
User Friendly
(Table – 13)
(Chart – 14)
From the above respondent we can say that the 42% are using the online trading
platform for the fast executive system and 35% are because it is much cheaper than
the other ways and 23% are using it due to the user friendly.

12. As an online market participant what is your participant’s status?
39%
33%
28%
Type of Investor
Long Term
Short Term
Intraday
Type of Investor %
Long Term Investor 39
Short Term Investor 33
Intraday Trader 28
Above chart shows that the 39% respondents are want to be a long term
investor which will lead them towards the wealth maximization an 33% want to be
a short term investor and want to earn money in short span of time while the 28%
are the intraday traders.

LIMITATIONS
 This exploratory research is done in the Rajkot city only and therefore
findings and suggestion given on the basis of this research and cannot be
considered for the entire security market of India.
 Due to limitation of time and cost constrains, a sample size of only 75
respondents was chosen.
 Data analysis and interpretation done may not be that strong due to small
sample and random sampling method.
 And also the views of respondents of Rajkot towards online trading may not
reflect the overall scenario.
 Respondents taken for the study were most of from the Sharekhan, therefore
true picture of the stock broking companies can also not be seen from the
study.

FINDINGS
From the research objective following can be interpreted;
 40 % of businessmen are risk takers and they prefer trading and out of that
15% were doing intraday trading.
 Out of 48% graduate 15% of employees working in private firm and 20%
post graduate working as government employee.
 15% of Private firm Employees prefer Bank FD and 40% of Private firm
Employees prefer mutual fund investment compare to others
 There were 33% of the businessmen investing in shares out of all the
investors.
 35% of businessmen and 34% of Private firm Employees were online traders
 Out of all the online traded products 25% of F &O preferred by Private firm
Employees, 29% of equity preferred by businessmen, 15% of commodity
preferred by Private firm Employees and 5% of currency preferred by
Private firm Employees
 Out of all the long term investors, 50% were Private firm Employees,
 Out of all the short term investors20% were Private firm Employees and
 Out of all the intraday traders 40% were businessmen
Thus we say that online trading has gained more attention of today’s generation
and more no. of businessmen and Private firm Employees are taking initiative
towards stock market working.
It can be said that consumer behave rationally, are risk takers and also they prefer
keeping pace with changing technology i.e.; online trading.

RECOMANDATION
As the analysis makes it clear that there is potential market for online trading in the
region of Rajkot, but this market needs to be explored because Stock broking
companies are not able to convert mutual fund investors into stock market
investors. Some of the few recommendations based on the above research are:
 From the tests it can be reccomandated to the sharekhan that it should attract
more businessmen and Private firm Employees, because they are the persons
possessing IT infrastructure.
 Many people don’t do this business because of the lack of the proper market
knowledge. And hence they should be made aware of the trends of the
market.
 People prefer Online trading as a secondary business, because liquidity is
high in this business. Therefore, some steps should be taken to explain this
scenario to all the knowledgeable class by proper marketing.
 Trusted brokers get easily online traders because of timeliness and right tips
on trading; therefore Sharekhan should make its brand name strong enough
to convince the customer for online trading through more advertisement.
 Online trading requires fast and effective decision making, therefore
company should held regularly seminars, coaching class and make its
customer aware of true extent of risk and return
 Try to remove myth of money losing from stock trading from the minds of
people by providing some help in decision making and schemes.

CONCLUSION
The objective of this study is to develop a theoretical model to explain and
predict the stock traders' behavioral intentions to use online trading by using the
concepts of perceived benefit, perceived risk and trust. This study reveals that
perceived risk is a more important influential factor than perceived benefit in
online trading decision making.
However, building a risk-free online stock trading environment is much
more difficult than providing benefits to customers. Online trading companies need
to search for risk-reducing strategies that might assist in inspiring high confidence
in customers. This study suggests that online trading companies should consider
focusing more on the prevention of intrusion, fraud and identity theft.
The current generation of investors is trading very actively by historical
standards. Investors are flush with cash, partly because of a robust economy, and
partly because they are borrowing aggressively. Very active investors are often
making decisions in a situation of high uncertainty. On-line investors have
concentrated their trading in e-commerce and other high-tech firms. Many e-commerce
firms have novel, untested business plans. Many have little or no
earnings.
Online brokers should provide customers with digital receipts or a guarantee
for every transaction in order to increase customers' confidence with regard to
online trading. Customers may be willing to trust in online trading if they're
confident that the service providers stand behind their service.

BIBLIOGRAPHY
 Capital Market (Sep 16 – 29, 2013, Vol. XXVIII/15)
 Sharekhan Value Guide – June- 2014
 Sharekhan Value Guide May – 2014

APPENDICES
1. List of Tables:
Table -1 Shareholder & Shareholding Pattern 22
Table -2 Strength of Sharekhan 24
Table -3 Age 53
Table -4 Education 54
Table -5 Occupation 55
Table -6 Saving Option 56
Table -7 Participation as 57
Table -8 Medium of Trading 58
Table -9 Online Traded Products 59
Table -10 Preference 60
Table -11 Trading Platform 61
Table -12 Influencer 62
Table -13 Trading Platform 63
Table -14 Type of Investor 64

2. List of Charts:
Chart -1 SSKI Group – Corporate Structure 22
Chart -2 Industry Analysis using Poter’s 5 Force
Model
23
Chart -3 Products of Sharekhan 35
Chart -4 Age 53
Chart -5 Education 54
Chart -6 Occupation 55
Chart -7 Saving Option 56
Chart -8 Participation as 57
Chart -9 Medium of Trading 58
Chart -10 Online Traded Products 59
Chart -11 Preference 60
Chart -12 Trading Platform 61
Chart -13 Influencer 62
Chart -14 Preference in Online Market Participant 63
Chart -15 Type of Investor 64

Questionnaire
1. Name: ………………………………………………………………………
2. Age:
a. Below 30 c. 46-60
b. 31-45 d. Above 60
3. Education:
a. Undergraduate
b. Graduate
c. Post graduate
4. Occupation:
a. Professional c. Working in Private Firm
b. Businessman d. Government Employee
5. Where do you invest your savings?
a. Bank FD
b. Mutual Fund
c. Shares / Equity
d. Insurance
e. Others

6. Do you participate in equity market? If yes, what best describes you as
a. Investor b. Trader
7. In your opinion, which medium is the more reliable for trading in stock
market? (Give rank 1 for most reliable)
a. Through Brokers
b. Online Direct Participation
8. Out of following online traded products, in which you trade regularly?
a. F & O c. Commodity
b. Cash d. Currency
9. Why do you prefer online trading?(Give your rank 1 to the most imp and 4
for the lest imp)
a. Online Fund Transfer c. No Geographical Boundary
b. Comfortable Trading d. Paperless Transaction
10. Which online trading platform you prefer the most?
a. TRADE TIGER
b. ODIN
c. NOW
d. TRADE RACER
e. ICICI Direct

11. Which one will influence your online trading decision making? (Give Rank
1 to the most imp and 8 for the lest imp)
a. Independently
b. Broker/ Agent’s Advice
c. News Channels
d. Newspapers
e. Advice of Friends / Colleagues
f. Internet
g. Well – Known Stock Broking House
h. Business Magazine
12. What is the order of importance for you as online market participants?
Fast executive system
Much cheaper
User friendly
13. As an online market participant what is your participant status?
Long term investor
Short term investor
Intraday trader
14. Name any online stock broking company that you like to recommend?

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