1 Summer Training Project Report ON“Awareness of on line trading and comparative analysis between different stock brokers” OF SUBMITTED FOR PARTIAL FULFILLMENT TOWARDS THE AWARD PGDM SUBMITTED BY INDRA BHUSHAN (PG090011) UNDER THE SUPERVISION OF Internal Guide External Guide Mr. Satya Prakash Ray Mr.Nandan Kumar(A.V.P.) Mr. Deepak Kumar Bagasi (S.M.) TAKSILA BUSINESS SCHOOL GREATER NOIDA (U.P.)
2 DECLARATIONI undersigned here declare that the project report entitled ““Awareness of online trading and comparative analysis between different stockbrokers” written and submitted by me under the guidance of Mr.NandanKumar (A.V.P) , Mr. Deepak Kumar Bagasi (S.M) and Mr. Satish KumarPundir(R.M) is my original work. The findings in this project are based on datacollected by myself. I have not copied any other reports submitted to TaksilaBusiness School Greater Noida (U.P). I am fully aware that any such copying isliable to punished in a way the university authority adjudge suitable.PLACE…... INDRA BHUSHANDATE……………
3 PREFACETo maintain and cope up with the growing competition from the various onlinetrading providers, India Infoline needs to find potential clients, also the newinvestors and satisfy there needs.The Broad objective of the project is to equipped the trainees with all the qualitywhich is essential to face any circumstances which can arise while providingservice to the clients.This project will accomplish to understand how the people interact withtechnology savy products and if they are ready for doing all the trading throughnet. The project also helps in understanding the trend of the scripts of theparticular sector (banking sector) in different market condition.All these steps help me to understand how to cope up with different types ofpeople and there diversified need and satisfaction level.Productivity is the main concern of any industrial/service organization for itssurvival in the competitive business world; it can be achieved in different ways.
4 ACKNOWLEDGEMENTIt gives me great pleasure to present the project report entitled““Awareness of on line trading and comparative analysisbetween different stock brokers” Preservation, inspiration and motivation have always played a key role inthe success of any venture. In the present world of competition andsuccess, training is like a bridge between theoretical and practical working;willingly I prepared this particular Project. First of all I would like to thankthe supreme power, the almighty god, who is the one who has alwaysguided me to work on the right path of my life.My special thanks to my training head Mr. Deepak Kumar Bagasi (S.M.),and my sincere thanks to Mr. satish Kumar pundir (R.M.). Also my thanksto other staff members of India Infoline ltd.My special thanks to Mr. Shivam Kumar Shukla for constantly guiding,motivating and encouraging me.I also thank my project Guide Mr. Satya Prakash ray for giving me theirvaluable inputs for the project .And my thanks to Mrs. Shagun chahal(I.T.S)I am also thankful to all the friendsLast but definitely not the least my gratitude goes to my Mother and myFather and my elder brother Chandra Bhushan Azad for believing in me.PLACE …... INDRA BHUSHANDATE……………
5 TABLE OF CONTENTTitle Pg.No EXECUTIVE SUMMERY…………………… 6 OBJECTIVES…of the study………………………… 7 Scope of the study………………………… 8 INTRODUCTION to the topic……………………….…. 9 Introduction to the company…………………………….. 83 METHODOLOGY…ADOPTED…………...…… 137 QUESTIONNAIRE DESIGNING 145 COLLECTION OF DATA 141 150 DATA ANALYSIS… FINDINGS………………………………… 164 RECOMMENDATION & SUGGESTIONS…………………. 165 CONCLUSION…………………………………..…………..… 168 REFERENCES/BIBILIOGRAPHY……………………………. 169
6 Executive SummaryThere is growing competition betweenbrokerage firms in post reform India.For investor it is always difficult todecide which brokerage firm to choose.Since this industry is growing havinggrowth rate that attract me for doingmy summer internship in this field thatI can gather more and more knowledgeabout the share market. It was the greatexperience in that field and I am alsovery thankful to the India Infoline forgiving me this opportunity to completemy project .Research was carried out to find thatwhich brokerage house, people preferand to figure out what people wantwhile investing in stock market.This study suggests that people arereluctant while investing in stock andcommodity market due to lack ofknowledge. Main purpose of
7investment is returns and liquidity,commodity market is less preferred byinvestors due to lack of awareness. Themajor findings of this study are that thepeople are interested to invest in stockmarket but they have lack ofknowledge.Through this report we were also able tounderstand, what are our Company’s(India Infoline Ltd.) strong and weakpoints, on the basis of which we come toknow what can be the basis of pitchingto a potential client.
8OBJECTIVE OF THEPROJECT1. To know about the awareness of theconsumers towards stock brokers andshare market.2. To study the market share of IndiaInfoline Ltd in the Share market andidentify the areas of competitiveadvantage over other players.3. To study about consumer awareness& satisfaction, about operationalServices & procedures of India Infolineltd.4. To study about the difficulties facedby the clients/trades while trading withIndia Infoline.5. To identify the lacunae in the presentsystem suggesting the measuresimprovement in current Tradingsystem.
96. To study about the on line terminalterms and Dmat account of IndiaInfoline ltd
10Sope of the studyActually I have got my summer internship on two topics-1-awareness of online trading2-comparative analysis of India Infoline and different stock brokersI would like to tell that now a day on line trading is a booming field for investorbecause they can generate more returns as compared to other fields. I gotgolden experience regarding on line trading when I went to market for survey.Because I met no of person for knowing awareness of on line trading, Dmataccount, and comparative analysis between different stock brokers.This project will help for those who dose not have the knowledge about thetrading and services offered by the different broker company. It will also help forthe people who are interested in the trading and in share market.This will also helpful for the company IIFL because it is containing thecooperative analysis of the different broker company, it also contains the strongand weak points of IIFL. By that way they can remove their weaknesses and canadd more and more costumers in their series. Because people are facing a lot ofproblem regarding online trading.Hence this project have multidimensional scope
12 INTRODUCTION OF STOCK MARKETA stock, also referred to as a share, is commonly a share of ownership in acorporation. In British English, the word stock has another completely differentmeaning in finance, referring to a bond. It can also be used more widely to referto all kinds of marketable securities. Where a share of ownership is meant theword share is usually used in British English.HistoryThe first company that issued shares is considered to be the Northern-Europeancopper mining enterprise Stora Kopparberg, in the 13th century.OwnershipThe owners and financial backers of a company may want additional capital toinvest in new projects within the company. If they were to sell the company itwould represent a loss of control over the company.Alternatively, by selling shares, they can sell part or all of the company to manypart-owners. The purchase of one share entitles the owner of that share toliterally share in the ownership of the company, including the right to a fraction ofthe assets of the company, a fraction of the decision-making power, andpotentially a fraction of the profits, which the company may issue as dividends.
13However, the original owners of the company often still have control of thecompany, and can use the money paid for the shares to grow the company.In the common case, where there are thousands of shareholders, it is impracticalto have all of them making the daily decisions required in the running of acompany. Thus, the shareholders will use their shares as votes in the election ofmembers of the board of directors of the company. However, the choices areusually nominated by insiders or the board of the directors themselves, whichover time has led to most of the top executives being on each others boards.Each share constitutes one vote (except in a co-operative society where everymember gets one vote regardless of the number of shares they hold). Thus, ifone shareholder owns more than half the shares, they can out-vote everyoneelse, and thus have control of the company.Shareholder rightsAlthough owning 51% of shares does mean that you own 51% of the companyand that you have 51% of the votes, the company is considered a legal person,thus it owns all its assets, (buildings, equipment, materials etc) itself. Ashareholder has no right to these without the companys permission, even if thatshareholder owns almost all the shares. This is important in areas such asinsurance, which must be in the name of the company not the main shareholder.So as long as the shareholders agree that the management (agent) areperforming poorly they can elect a new board of directors which can then hire anew management team.
14Owning shares does not mean responsibility for liabilities. If a company goesbroke and has to default on loans, the shareholders are not liable in any way.However, all money obtained by converting assets into cash will be used to repayloans, so that shareholders cannot receive any money until creditors have beenpaid.Means of financingFinancing a company through the sale of stock in a company is known as equityfinancing. Alternatively debt financing (for example issuing bonds) can be done toavoid giving up shares of ownership of the company.TradingShares of stock are usually traded on a stock exchange, where people andorganizations may buy and sell shares in a wide range of companies. A givencompany will usually only trade its shares in one market, and it is said to bequoted, or listed, on that stock exchange.However, some large, multinational corporations are listed on more than oneexchange. They are referred to as inter-listed shares.
15BuyingThere are various methods of buying and financing stocks. The most commonmeans is through a stock broker. Whether they are a full service or discountbroker, they are all doing one thing – arranging the transfer of stock from a sellerto a buyer. Most of the trades are actually done through brokers listed with astock exchange such as the New York Stock Exchange.There are many different stock brokers to choose from such as full servicebrokers or discount brokers. The full service brokers usually charge more pertrade, but give investment advice or more personal service; the discount brokersoffer little or no investment advice but charge less for trades. Another type ofbroker would be a bank or credit union that may have a deal set up with either afull service or discount broker.There are other ways of buying stock besides through a broker. One way isdirectly from the company itself. If at least one share is owned, most companieswill allow the purchase of shares directly from the company through theirinvestors relations departments. However, the initial share of stock in thecompany will have to be obtained through a regular stock broker. Another way tobuy stock in companies is through Direct Public Offerings which are usually soldby the company itself. A direct public offering is an initial public offering acompany in which the stock is purchased directly from the company, usuallywithout the aid of brokers.When it comes to financing a purchase of stocks there are two ways: purchasingstock with money that is currently in the buyers ownership or by buying stock onmargin. Buying stock on margin means buying stock with money borrowed
16against the stocks in the same account. These stocks, or collateral, guaranteethat the buyer can repay the loan; otherwise, the stockbroker has the right to sellthe stocks (collateral) to repay the borrowed money. He can sell if the share pricedrops below the margin requirement, at least 50 percent of the value of thestocks in the account. Buying on margin works the same way as borrowingmoney to buy a car or a house using the car or house as collateral. Moreover,borrowing is not free; the broker usually charges you 8-10 percent interest.SellingSelling stock in a company goes through many of the same procedures asbuying stock. Generally, the investor wants to buy low and sell high, if not in thatorder; however, this is not how it always ends up. Sometimes, the investor willcut their losses and claim a loss.As with buying a stock, there is a transaction fee for the brokers efforts inarranging the transfer of stock from a seller to a buyer. This fee can be high orlow depending on if it is a full service or discount broker.After the transaction has been made, the seller is then entitled to all of themoney. An important part of selling is keeping track of the earnings. It isimportant to remember that upon selling the stock, in jurisdictions that have them,capital gains taxes will have to be paid on the additional proceeds, if any, that arein excess of the cost basis.
17Technology’s on TradingStock trading has evolved tremendously. Since the very first Initial Public Offering(IPO) in the 13th century, owning shares of a company has been a very attractiveincentive. Even though the origins of stock trading go back to the 13th century,the market as we know it today did not catch on strongly until the late 1800s.Co-production between technology and society has led the push for effective andefficient ways of trading. Technology has allowed the stock market to growtremendously, and all the while society has encouraged the growth. Withinseconds of an order for a stock, the transaction can now take place. Most of therecent advancements with the trading have been due to the Internet. The Internethas allowed online trading. In contrast to the past where only those who couldafford the expensive stock brokers, anyone who wishes to be active in the stockmarket can now do so at a very low cost per transaction. Trading can even bedone through Computer-Mediated Communication (CMC) use of mobile devicessuch as hand computers and cellular phones. These advances in technologyhave made day trading possible.The stock market has grown so that some argue that it represents a countryseconomy. This growth has been enjoyed largely to the credibility and reputationthat the stock market has earned.
18Types of sharesThere are several types of shares, including common stock, preferred stock,treasury stock, and dual class shares. Preferred stock, sometimes calledpreference shares, have priority over common stock in the distribution ofdividends and assets, and sometime have enhanced voting rights such as theability to veto mergers or acquisitions or the right of first refusal when new sharesare issued (i.e. the holder of the preferred stock can buy as much as they wantbefore the stock is offered to others). A dual class equity structure has severalclasses of shares (for example Class A, Class B, and Class C) each with its ownadvantages and disadvantages. Treasury stocks are shares that have beenbought back from the public.DerivativesA stock option is the right (or obligation) to buy or sell stock in the future at afixed price. Stock options are often part of the package of executivecompensation offered to key executives. Some companies extend stock optionsto all (or nearly all) of their employees. This was especially true during the dot-com boom of the mid- to late- 1990s, in which the major compensation of manyemployees was in the increase in value of the stock options they held, ratherthan their wages or salary. Some employees at dot-com companies becamemillionaires on their stock options. This is still a major method of compensationfor CEOs.
19The theory behind granting stock options to executives and employees of acorporation is that, since their financial fortunes are tied to the stock price of thecompany, they will be motivated to increase the value of the stock over time.Primary market (IPO’s)In financial markets, an initial public offering (IPO) is the first sale of a companyscommon shares to public investors. The company will usually issue only primaryshares, but may also sell secondary shares. Typically, a company will hire aninvestment banker to underwrite the offering and a corporate lawyer to assist inthe drafting of the prospectus.The sale of stock is regulated by authorities of financial supervision and whererelevant by a stock exchange. It is usually a requirement that disclosure of thefinancial situation and prospects of a company be made to prospective investors.The Federal Securities and Exchange Commission (SEC) regulates thesecurities markets of the United States and, by extension, the legal proceduresgoverning IPOs. The law governing IPOs in the United States includes primarilythe Securities Act of 1933, the regulations issued by the SEC, and the variousstate "Blue Sky Laws".Secondary marketThe secondary market (also called "aftermarket") is the financial market fortrading of securities that have already been issued in its initial private or publicoffering. Stock exchanges are examples of secondary markets. Alternatively,secondary market can refer to the market for any kind of used goods.
20HistorySecondary markets have a long history, beginning perhaps with a flourishingtrade in commercial bills of exchange in 12th and 13th century France. It was theFrench King Philip the Fair who created the profession of broker, or "courtier dechange," in order to regularize this market.Amsterdams Bourse, which began operations in 1611, was the first true stockexchange, and this reflected the importance of Holland in world trade at that time.FunctionIn the secondary market, securities are sold by and transferred from onespeculator to another. It is therefore important that the secondary market behighly liquid and transparent. The eligibility of stocks and bonds for trading in thesecondary market is regulated through financial supervisory authorities and therules of the market place in question, which could be a stock exchange.Online TradingWhat Does Online Trading Mean?The act of placing buy/sell orders for financial securities and/or currencies withthe use of a brokerages internet-based proprietary trading platforms. The use ofonline trading increased dramatically in the mid- to late-90s with the introductionof affordable high-speed computers and internet connections.Stocks, bonds, options, futures and currencies can all be traded online.
21Investopedia explains Online TradingThe use of online trades has increased the number of discountbrokerages because internet trading allows many brokers to further cut costs andpart of the savings can be past on to customers in the form of lowercommissions.Another benefit of online trading is the improvement in the speed of whichtransactions can be executed and settled, because there is no need for paper-based documents to be copied, filed and entered into an electronic formaON LINE STOCK MARKET TRADINGSTOCK EXCHANGEStocks (Shares, equity) are traded in stock exchange. India has two big stockexchanges (Bombay Stock Exchange - BSE and National Stock Exchange -NSE) and few small exchanges like Jaipur Stock Exchange etc. Investor cantrade stocks in any of the stock exchange in India.
25Types of online stock tradersBasically there are four types of online stock traders:(1)Long-term traders – who hold their shares for one or more years(2) Medium-term traders – who hold their stock anywhere from 1 month to sixmonths.(3) Short-term traders – who ordinarily hold stock for a week, but this can be upto one month(4) Day traders – who buy and sell stock in the same day.Stock ChartsIf you are going to stand any chance of having a successful career as an onlinestock trader, you’ll need to make sure that your software has the capability ofproducing stock charts. The most common types of stock charts in use are:Line charts: This is simply a line connecting stock price over a period of time.Bar charts: a little more complex in that the information not only consists ofstock price movements over a period of time, but will also include the opening,high, low and closing price of the stock for one particular day, from which you canconstruct a bar chart.
26Reference chart: which track both the stock price and trading volume, whichis then used to plot where the stock price should go.Candlestick charts: uses the same information that bar charts do, butdisplays the information differently.
2811-NET WORTH STOCK BROKING12-KOTAK SECURITIES13-STANDARD CHARTERED_STC CAPITAL MARKETS LTD14-ANGEL TRADE15-HSBC INVEST DIRECT
29MY WORK AT INDIA INFOLINE LTD1- Trader Terminal2- Demat Account
30India Infoline Ltd. User Manual Trader Terminal
31Trader TerminalIndia Infoline Ltd has Trader terminal as trading software. It isdesign and built in house by the technology teach of India InfolineLtd.Trader Terminal is a comprehensive trading tool, with superiorcharting and analytical capabilities, that allows you to place ordersand get them executed at lighting fast pace.
33After successfully installing the trading software when User clicks on the icon ofthe Trader Terminal, it opens the windows as shown in the Snapshot-1Snapshot-1As shown in Snapshot-1 User can get connected to the server by using Internetor VSAT connection. User will have to choose appropriate option before Userclicks on login.
34User will have to enter the correct login ID and Password to login successfullyinto the software.User can change the old password by entering the new password in NewPassword field and same (new) password in the Conf. Password field along withcorrect login ID in login ID field and Old password in Password field.Neither the Login ID nor the Password is case sensitive.The first login is actually a registration process where the server captures certainkey information about system and compares them with every subsequent login.If some User tries to hack into your account from any other system he/she willnot be allowed to login even if he/she has your password since the machinecredentials would not match. Also all such attempts will not be counted towardsyour unsuccessful attempts tally and therefore your account will never be lockedout due to some User else’s mischief or unscrupulous attempt.User has option of changing the setting by clicking on the Setting before theylogin.When User clicks on the Setting then it shows the window as shown in theSnapshot-2.User can choose In HO Network or Use Proxy option. If User is opting for theUse Proxy option then User will have to enter the Proxy IP.
35Snapshot-2After choosing appropriate setting, when User enters the correct login ID andPassword and clicks on the Login User can enter into the software. It opens thewindows as shown in the Snapshot on successful log in.
361. Main WindowAfter successful login it opens the main window as shown in the Snapshot-1.1.Snapshot-1.1In the Menu bar it will have following options as shown in the Snapshot-1.1.
37FileMarketReportsMessageLinksToolsResearchWindowsHelpContact usIt will also have the SEBI registration no and NSE Code no in the Menu Bar.It will also have today’s date (mm/dd/yyyy) and time in the Menu bar.
382. FileWhen User clicks on the File in Menu bar it opens the windows as shown in theSnapshot-2.1Snapshot-2.1
39When User clicks on File in menu bar it will have following option as shown in theSnapshot-2.1.Log OutReconnectLock (Ctrl+O)Change PasswordDownload mastersExitWe will see all these option User by User.Log OutYou can logout any time by accessing the ‘Logout’ (File>Logout) option from the‘File’ menu. On logout your terminal will still be active.
40Snapshot-2.2When User clicks on the Logout system asks the question, ‘do you want tologout?’ as shown in the Snapshot-2.2When User clicks on the Yes then he/she will be logout of the software.
41[Note:-This option is same as Exit]ReconnectThis option is active only when connectivity to the server is lost.User can reconnect to the server by accessing the ‘Reconnect’ option from the‘File’ menu.
42LockUser can lock the screen by accessing the ‘Lock’ (File>Lock) option from the‘File’ menu.The shortcut key for the same is ‘Ctrl+O’When User clicks on File>Lock or press ‘Ctrl+O’ the screen will show thewindows as shown in the Snapshot-2.3.Snapshot-2.3
43User can access all other options except entering of trades which terminal islocked.As shown in the Snapshot-2.3 it shows the message that ‘Your terminal has beenlocked. Enter your password to unlock it’User will have to enter the correct password to unlock the terminal.When User clicks on the Exit User will exit from the trading terminal.Change PasswordUser can change password by accessing the ‘Change Password’ (File>ChangePassword) option from the ‘File’ menu.When User Clicks on File>Change Password it opens the window as shown inthe Snapshot-2.4
44Snapshot-2.4User will have to enter the Old Password, New Password and Confirm Password(same as new password) before they click on OK.When User clicks on the Cancel the Change Password window gets closed.Password is valid only for 14 days, after which User have to compulsorily changethe password.The new password should not be User that was used in the previous twochanges. In other words User cannot recycle a password for next two changes.
45Once User has changed the password it cannot be changed again within the next24 hours.Rules for Password1. Password cannot be same as login ID2. Password has to be at least 8 characters and maximum of 10 characters3. It should contain at least 1 alphabet and 1 numeric4. It can contain special characters5. It cannot start with a space or special character6. It cannot be reused for subsequent two changes
46Download MastersUser can down load the masters by accessing the ‘Download Masters’(File>Download Master) option from the File Menu.When User clicks on File>Download Master it opens the windows as shown inthe Snapshot-2.5.Snapshot-2.5
47User will have to download master before User begins other options.User will have to select Exchange (BSE or NSE or BSE and NSE) and Markettype (Cash or F & O or Cash and F & O) to down load the masters.After selecting Exchange and Market type User has three options. User caneither click on Scrip master or Incremental download or Default Group.Scrip masterThis option is used when some has just installed TT and using it for the first timethen User need to load all the scrip and this option will do the same. It will load allthe scrips.When User clicks on the Scrip master after selecting the exchange it downloadsit shows the message as shown in the Snapshot-2.6
48Snapshot-2.6It shows the message that Masters downloaded and created.[Incremental Download:-This option is used when some User wants to add newscrip to the master. Using this option User doesn’t need to load all the scrip. Thisoption will load only those scrips which were not in the scrip master before.]
49ExitUser can exit from the trading terminal by accessing the ‘Exit’ (File>Exit) optionfrom the ‘File’ menu.Snapshot-2.7
50When user clicks on Exit it will ask “Do you want to Exit?’ as shown in theSnapshot-2.7. If user clicks on Yes user can exit from the software.3. MarketWhen User clicks on the Market in Menu bar it opens the windows as shown inthe Snapshot-3.1
51Snapshot-3.1When User clicks on Market in menu bar it will have following option as shown inthe Snapshot-3.1Market WatchMarket AnalyserSnap QuotePrice AlertIndicesBuy/Offline Buy
52Sell/Offline SellHedging BuyHedging SellGroupsTickerHistorical chartOption CalculatorWe will see all these options User by User.Market watchUser can open the Market watch window by accessing the ‘Market Watch’(Market >Market watch) option from the ‘Market’ menu.When User clicks on Market>Market Watch it opens the windows as shown in theSnapshot-3.2.
53Snapshot-3.2Using this window User can see the market details of the various scrips.First of all User will have to add the scrip for which User wants to see the details.
54Market watch window will show following details of particular scrip.CategoryExchangeExchange typeTokenSymbolSeriesPercentage changeIndicatorLast rateBid quantityBid rateOffer quantityOffer rateHighLowPrevious closeTotal quantityLast quantityWeighted AveragePercentage PremiumTime
55ValueTotal Bid quantityTotal Sell quantityOpen interestAfter opening the market watch window when User right clicks on the windowthen it will have following options as shown in the Snapshot-3.3.Buy F1Sell F2Historical chart Crtl+HTick listMarket DepthLoad Group Crtl+GAppend from Group Crtl+ASave to Group Crtl+SExport scrip ListImport scrip ListMarket watch setting Crtl+WHide/ Unhide ColumnsGrid Settings Crti+Shift+SSave to FileAdd Scrip InsAdd F&O scrip Crtl+InsOption chainRemove DelRemove all Crtl+DelOption Pricing
56Snapshot-3.3Add Scrip (Ins)To add the scrip User will have to open the market watch window first then Userwill have to right click and have to click on the Add scrip as shown in theSnapshot-3.4.The short cut for the same is Ins.
57Snapshot-3.4When User clicks on the Add scrip or press Ins on the keyboard it opens thewindows as shown in the Snapshot-3.5
58Snapshot-3.5As shown in the Snapshot User will have to select the segment for which Userwants to add the scrip.There are three options available named NSE Cash, BSE Bash and NSEDerivative.Say for example User wants add the scrip of NSE’s Cash segment then User willhave to check the NSE cash and it will show the scrip available in the NSE.
59The available scrip will have following details.ExchangeExchange typeCodeSymbolSeriesFull nameUser will have to check for the particular security User wants to add and thenhave to click on Ok.User can also search for particular security based on Code/Symbol or Name.Say for example User wants to add two scrips in NSE segment named BombayDyeing and Mfg. and Bharat Petroleum Corporation Limited whose symbols areBOMBDYEING and BPCL. To add these scrips first User will have to check onthe NSE cash and then User will have to check these two scrips as shown inSnapshot-3.6.
60Snapshot-3.6After checking for these two scrip when User clicks on the OK then it showsthese two scrip as shown in the Snapshot-3.7
61Snapshot-3.7The added two scrips will show all those details which we mentioned in themarket watch window.
62Buy (F1)Using this option User can buy particular scrip.When User adds the scrip to the market watch window and wants to buyparticular scrip then User will have to click on that particular scrip.Snapshot-3.8
63Say for example User wants to buy some quantity of scrip named MundraPort onNSE-cash segment then User will have to add that scrip to that market watchwindow and have to single click on it as shown in the Snapshot-3.8.Snapshot-3.9
64After single click on MundraPort when User right clicks then it shows the optionsas shown in the Snapshot-3.9 and User will have to click on the Buy.OrUser will have to single click on MundraPort as shown in the Snapshot and haveto press F1(short-cut) then it will open the windows as shown in theSnapshot-3.10Snapshot-3.10
65As shown in the Snapshot-3.10 User will have to enter the buy quantity.User can buy the particular scrip at market price or User can limit the price.When User enters the buy quantity at market price and click on Place then it willbuy the shares at a rate available in the market. (At the price of the best seller).User also has option to disclose quantity. This option is used to disclose thequantity. Say for example User wants to buy 500 shares of MundraPort and wantto disclose only 100 then User will have to enter the 100 in the DiscQty field andit will disclose only 100 shares in the market.When User enters the buy quantity at limit price then User will have to enter theprice at which User wants to buy that particular share and User will have to clickon the Place. The limit price will get executed when it will find its match.User can also avail the option of the stop-loss order. User will have to enter thetrigger price and limit price for both the order.User can also use the option of the IOC (Immediate or Cancel). When Userenters the buy order using this option then if the order will not find the matchimmediately then it will get cancel.
66Sell (F2)Using this option User can sell particular scrip.When User adds the scrip to the market watch window and wants to sellparticular scrip then User will have to click on that particular scrip.Snapshot-3.11Say for example User wants to sell some quantity of scrip named ReliancePetroleum Limited on NSE-cash segment then User will have to add that scrip to
67that market watch window and have to single click on it as shown in theSnapshot-3.11Snapshot-3.12After single click on RPL when User right clicks then it shows the options asshown in the Snapshot-3.12 and User will have to click on the Sell.Or
68User will have to single click on RPL as shown in the Snapshot and have topress F2(short-cut) then it will open the windows as shown in the Snapshot-3.13Snapshot-3.13As shown in the Snapshot-3.13 User will have to enter the sell quantity.User can sell the particular scrip at market price or User can limit the price.When User enters the sell quantity at market price and click on Place then it willsell the shares at a rate available in the market. (at the price of the best buyer).
69User also has option to disclose quantity. This option is used to disclose thequantity. Say for example User wants to sell 500 shares of RPL and want todisclose only 100 then User will have to enter the 100 in the DiscQty field and itwill disclose only 100 shares in the market.When User enters the sell quantity at limit price then User will have to enter theprice at which User wants to sell that particular share and User will have to clickon the Place. The limit price will get executed when it will find its match.User can also avail the option of the stop-loss order. User will have to enter thetrigger price and limit price for both the order.User can also use the option of the IOC (Immediate or Cancel). When Userenters the sell order using this option then if the order will not find the matchimmediately then it will get cancel.Historical chartUsing this option User can view the historical chart of particular scrip.When User adds the scrip to the market watch window and wants to see thehistorical chart of particular scrip then User will have to click on that particularscrip.
70Snapshot-3.14Say for example User wants to see the historical chart of scrip named ReliancePetroleum Limited on NSE-cash segment then User will have to add that scrip tothat market watch window and have to single click on it as shown in theSnapshot-3.14.
71Snapshot-3.15After single click on RPL when User right clicks then it shows the options asshown in the Snapshot and User will have to click on the Historical chat.OrUser will have to single click on RPL as shown in the Snapshot and have topress Crtl+H(short-cut) then it will show the historical chat as shown in theSnapshot-3.16.
72Snapshot-3.16The historical chart will be from the 11th May, 2006.Using +/- User can Zoom In/Zoom out the graph.
73Tick ListUsing this option User can view the Tick List of particular scrip.When User adds the scrip to the market watch window and wants to see the TickList of particular scrip then User will have to click on that particular scrip.
74Snapshot-3.17Say for example User wants to see the Tick list of scrip named ReliancePetroleum Limited on NSE-cash segment then User will have to add that scrip tothat market watch window and have to single click on it as shown in theSnapshot-3.17.
75Snapshot-3.18After single click on RPL when User right clicks then it shows the options asshown in the Snapshot-3.18 and User will have to click on the Tick List.Snapshot-3.19When User clicks on the tick list it shows the details as shown in theSnapshot-3.19.
76The tick list will have following details.Name of the scrip on the topTimeRateQuantityThe latest executed quantity along with its rate and time on the top.DMAT ACCOUNTDemat account is a safe and convenient means of holding securitiesjust like a bank account is for funds. Today, practically 99.9%settlement (of shares) takes place on demat mode only. Thus, it isadvisable to have a Beneficiary Owner (BO) account to trade at theexchanges.BENEFITS OF DMAT ACCOUNT 1. A safe and convenient way of holding securities (equity and debt instruments both). 2. Transactions involving physical securities are costlier than those involving dematerialised securities (just like the transactions through a bank teller are costlier than ATM transactions). Therefore, charges applicable to an investor are lesser for each transaction.
773. Securities can be transferred at an instruction immediately.4. Increased liquidity, as securities can be sold at any time during the trading hours (between 9:00 AM to 3:30 PM on all working days), and payment can be received in a very short period of time.5. No stamp duty charges.6. Risks like forgery, thefts, bad delivery, delays in transfer etc, associated with physical certificates, are eliminated.7. Pledging of securities in a short period of time.8. Reduced paper work and transaction cost.9. Odd-lot shares can also be traded (can be even 1 share).10.Nomination facility available.11.Any change in address or bank account details can be electronically intimated to all companies in which investor holds any securities, without having to inform each of them separately.12.Securities are transferred by the DP itself, so no need to correspond with the companies.13.Shares arising out of bonus, split, consolidation, merger etc. are automatically credited into the demat account of the investor.14.Shares allotted in public issues are directly credited into demat account of the applicants in quick time
78 DOCUMENTS SHOULD BE REQUIRED FOR DEMAT ACCOUNT • IDETIFICATION PROOF- Any one should be - 1. Voter Id 2. Driving License 3. passport 4. Pan Card • RESIDENCE PROOF- Any one should be- 1. Ration card 2. Voter Idcard 3. Latest Bank Statement 4. Telephone Bill Statement 5. Electricity Bil Statement 6. Passport • ONE PHOTO • Marginal cheque only Rs 5750 Candidates name should be same on every documents.Bank details:
79 • Copy of cancelled cheque with printed name from the bank. • Copy of bank passbook with name and address and copy of cancelled cheque. • Bank statement with name and address (duly authorized by the bank, if statement is on plain paper) not more than 4 months old and copy of cancelled cheque of MICR & bank detail verification.Maximum Number of holders in a Demat AccountA maximum of three persons are allowed to open a joint demataccount in their names.DEMATERIALISATIONDefinitionDematerialization is the process of converting physical shares (sharecertificates) into an electronic form. Shares once converted intodematerialized form are held in a Demat account.
80Dematerialization ProcessAn investor having securities in physical form must get themdematerialized, if he intends to sell them. This requires the investor tofill a Demat Request Form (DRF) which is available with every DP andsubmit the same along with the physical certificates. Every securityhas an ISIN (International Securities Identification Number). If there ismore than one security than the equal number of DRFs has to be filledin. The whole process goes on in the following manner:
82RematerialisationThe process of getting the securities in an electronic form, convertedback into the physical form is known as Rematerialisation. An investorcan rematerialize his shares by filling in a Remat Request Form (RRF).The whole process goes on as follows:
83• Depository - An organization that facilitates holding of securities in the electronic form and enables DPs to provide services to investors relating to transaction in securities. There are two depositories in India, namely NSDL and CDSL. As per a SEBI guideline, the minimum net worth stipulated for a depository is Rs.100 crore• NSDL/CDSL - The securities are held in depository accounts, like the funds are held in bank accounts. There are two depositories in India namely NSDL and CDSL. NSDL (National Securities Depository limited) was established in August 1996 and is the first depository in India. CDSL (Central Depository Securities Limited) is the other depository and was established in 1999.• DP (Depository Participant) - A Depository Participant can be a financial organization like banks, brokers, financial institutions, custodians, etc., acting as an agent of the Depository to make its services available to the investors. There are a total of 538 DPs registered with SEBI, as on March 31, 2006 and each DP is assigned a unique identification number known as DP-ID.
84COMPANY INDRODUCTIONIndia Infoline originally in corporated on October 18, 1995 as probityresearch and services pvt ltd. At Mumbai under the companies act, 1956 withregistration no. 1193797. And become a public limited company on april 28, 2000The name of the company was changed to India Infoline.com limited on may 23,2000 and later to India Infoline Limited on march 23, 2001. it is the first companyin India to foray into the online distribution of mutual funds.It is a one stop financial services shop, most respected for quality of its advice,personalized service and cutting edge technology. The no.1 corporate agent forICICI prudential life insurance company.Research acknowledged by Forbes as“Must read for investor in south Asia”Listed on Bombay and national stock exchange with anet worth of INR 200 croreand a market cap of over INR 1970 crore.The company has a network of 976 business locations (brances and sub-brokers) spread across 365 cities and towns. It has more than 800,000customers. It is registered with NSDL as well as CDSL as a depositoryparticipant providing a one- stop solution for clients trading in the equities marketIndia Infoline group, comprising the holding company, India Infoline Limitedandits wholly-owned subsidiaries, straddle the entire financial services spacewith offerings ranging from equity research, equities and derivatives trading,commodities trading, portfolio management services, mutual funds, lifeinsurance, fixed deposits, govt. bonds and other small savings instruments to
85loan products and investment banking. India Infoline also owns and manages thewebsites www.Indiainfoline.com and www.5Paisa.com .In todays competitive world there are many goods chasing few customers someare trying it expands their size and share of existing market. As a result there areloser and winners. Winners are those who crefully analyze needs identifyopportunities and create also rich offers for target customer.The objective of the market research to determine the demand and supply anduse of the product and competitors study so as to get the total market scenario ofthe product for analyzing market problem research is needed. A firm canobtained market research in a number of ways . It can hire market research firmor it can ask students to design and carry out market research project.These marketing problems and opportunities if entrust to the students ofmarketing specially when they seek the same during the project givesopportunities to apply their theoretical knowledge and managerial knowledge.India Infoline.com and 5paisa.com is related to share market, it is equity tocaused organization tracing its lineage to SSKL, a veteran solution company withover 8 decades of experience in the lead in stock market.
94Performance highlights – FinancialYear, 2009-10Overall consolidated financial performance • Annual Income at Rs11,239 mn, up 28% yoy • PBT and PAT at Rs3,547 mn and Rs2,320 mn, up 62% yoy and 60% yoy respectively • EBIDTA margin for the year was 39% as compared to 33% in the previous yearBroking • Average daily turnover up 57% in FY10 to Rs35 bn • Overall market share in NSE was 3.8% in FY10 • Commodities brokerage registers 47% increase yoyLife Insurance • Life insurance distribution income at Rs536 mn, up 11% yoy • In FY10, the relative share of pension products have increased from 32% to 35%Investment Banking • During the year, our Investment Banking team advised and managed more than 10 transactions including the • Cox & Kings IPO, Infinite Computer Solutions IPO and the Gammon India QIP • Income from Investment Banking increased 16 times to Rs 388 mn, as against Rs 23 mn in FY09Credit and Finance • Book size in FY10 increased to Rs16.3 bn from Rs9.6 bn • Loan growth likely to accelerate in the next year on the back of improving macro-economic scenarioWealth Management • Assets under advisory over Rs 50 bn – spanning over 1,000 families. • Wide gamut of products meeting risk - return profiles for all segments.
99Equities • Market share on NSE maintained at 3.8% in FY10 • Average daily turnover up 57% yoy in FY10 to Rs35.02bn • Present in over 2,300 business locations through branches and sub- brokers. • IIFL Securities Pte Ltd, our Singapore-based subsidiary, received in- principle approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX) • Our first Global Investors’ Conference at Mumbai - ‘Enterprising India’ had a participation of more than 450 Fund Managers, over 70 corporates, world renowned economists and thought leaders.
106 Different competitorsThe major players in online trading• 5paisa.• IndiaBulls.com• ICICIDirect.com.Share khan.com• HDFCsec.com
107 5 paisa.com5paisa is Online Stock Trading Company of India Infoline Securities PrivateLtd., Owner of popular business portal Indiainfoline.com. Besides high qualityinvestment advice from an experienced research team, the site offers real timestock quotes, market news and multiple tools for technical analysis.Trade In: BSE and NSE Trading Terminals:5Paisa offers 2 different online trading terminals to its customers: 1. Investor Terminal (IT) Investor Terminal is 5Paisas equity trading terminal for low volume trader. This is web based terminal and could access from anywhere. This product provides limited features in comparison of Trader Terminal, which is another product provided by 5Paisa. 2. Trader Terminal (TT) Trader Terminal is design for high volume equity traders or day traders. Trader Terminal provides high volume trading with powerful interface and fast order execution.
108Few popular features of trader terminal are: • Fast trade execution with instant trade confirmation. • Live streaming quotes and price watch on any number of stocks. • Intra day charts, updated live, tick-by-tick. • Live margin, position, marked to market profit & loss report. • Set any number of price alerts on any number of scrips. • Flexibility to customize screen layout and setting. • Facility to customize any number of portfolios & watch lists. • Facility to cancel all pending orders at one click. • Facility to square off all transactions at one click. • Top Gainers, Top Losers, Most Active, updated live. • Index information; index chart, index stock information live. • Market depth, i.e. Best 5 bids and offers, updated live for all stocks. • Online access to both accounts and DP to check live updated Order and Trade Book. • Facility to place after market orders. • Online fund transfer facility from leading Banks including ICICI, HDFC, CITI and UTI banks. • Online intra-day technical calls. • Historical charts and technical analysis tools. • India Infolines world - acclaimed news service and research. • and many more. How to open account with 5PaisaThere are few steps to open an account with 5paisa.
1091. First log on to their site and fill the registration form. Once you fill the form they will give you 2 options. Either you can receive the form by mail or one of their agent visit you personally. Personal visit is not available in all cities.2. After registration, you will be required to deposit a certain amount of initial margin deposit with them. The deposit can be of any amount, but it should not be less than Rupees Five Thousand.3. When your account is activated, you will receive a welcome kit, which contains details about your account, your username and password, and the users manual. The kit will also include a CD ROM which will allow you to install trading software.4. It will take approximately 15 days to complete the formalities if all the correct documents are sent and the forms are correctly filled.5. Documents required are 2 latest passport size photos, proof of identity and address i.e. say electricity/ telephone bill, passport photocopies and PAN number.
110 Advantages of 5paisa1. Very fast execution speed.2. Rates are very competitive then other providers.3. Easy online fund transfer facility from leading Banks including ICICI, HDFC, CITI ,AXIS,YES BANK,BANK OF BARODA4. Free facility of subscribing to mutual funds, equity IPOs and other investment products. Disadvantages of 5paisa1. No intra-day tick by tick charts in Investor Terminal (IT).2. Investing in IPO and Mutual Funds is not so easy like in ICICIDirect.3. Learning 5paisa Trading Terminal is little hard. IPO / Mutual Funds investment through 5Paisa (IndiaInfoLine)1. 5Paisa provides free facility of subscribing to mutual funds, equity IPOs and other investment products using internet banking account of ICICI, HDFC, CITI and UTI banks.2. Registered users with 5Paisa can logon to following website to apply in an IPO: http://www.indiainfoline.com/ipo3. While applying for IPO shares online through 5Paisa, Investor are taken to there corresponding banks homepage. Investors can use there net banking user id & password & transfer funds directly using any of these banks.4. 5Paisa members can use the similar steps to invest in Mutual Funds online.
111Least Brokerage Charges Starting AsFollows:opening charge of Dmat- zeroIntraday: From 0.03% To 0.05%.Delivery: From 0.30% To 0.50%.Easy online Trading PlatformMultiple Exchanges on Single ScreenStop-loss feature.Facility to customize any number of portfolios & watchlists.Online Tips Free Of Cost.Online Terminal Free Of Cost. .Expert inputs from industry professionals.
112A/C opening charge- zeroName of the software used- Trader Terminal.Software installation charge- Nil.No. of scripts provided by the software- unlimited.Maintainance charge- Nil.lExposure- 8 times (intra day) 3 times (delivery).Name of the bank with the help of which customer get the facility of netbanking- HDFC Bank, Axis Bank, ICICI Bank.,CITI, , YES BANK,BANK OFBARODAServices provided- Equity,IPO,MF,PMS,Commodities,Insurance,WealthManagement Services, Mortgages.DP sells charge- 15 per instruction + service tax.Brokerage- 0.01% to.05% intraday 0.1% to 0.5% deliveries.Transaction Report- sms, daily mail, daily courier,Prepaid Scheme- not available.Types of trading accounts provided- De-Mat a/c, Trading a/c , Margin a/c.Network-976 business locations,spread across 365 cities and more than 800,000customers..Margin money- minimumRs5750Secrecy- telephone logger with recorder.
113 IndiabullsType Public (NSE:)Industry Financial ServicesFounded 2000 As Indiabulls Financial Services Ltd.Headquarters Mumbai, IndiaKey people Sameer Gehlaut, Chairman & CEO Rajiv Rattan, President & CFO, Saurabh MittalDirectorProducts Securities, Consumer Finance, Mortgages,Real EstateEmployees ~ 20000 (2007)Website www.Indiabulls.com
114 INDIA BULLS.COMIndiabulls is Indias leading Financial Services and Real Estate Company havingpresence over 414 locations in more than 124 cities. Indiabulls FinancialServices Ltd is listed on the National Stock Exchange, Bombay Stock Exchange,Luxembourg Stock Exchange and London Stock ExchangeIndiabulls Group is one of India’s top Business houses with businesses spreadover Real Estate, Infrastructure, Financial Services, Securities, Retail, Multiplexand Power , Charterd Aviation sectors. The group companies are listed onimportant Indian and Overseas markets. Indiabulls has been conferred the statusof a “Business Superbrand” by The Brand Council, Superbrands India. Type of Account 1. Indiabulls Equity Trading Account Indiabulls Equity Trading Account is standard Online trading account from India bulls and along with online trading it also provides priority telephone access that gives you direct access to your Relationship Manager and full access to Indiabulls Equity Analysis. Application Trading Terminal(Need Installation)
1151. Power Indiabulls Power Indiabulls trading terminal is the most advanced new generation trading platform with great speed. This trading terminal is built in JAVA. Power Indiabulls is extremely reach in features including Live Streaming Quotes, Fast Order Entry and execution, Tic by Tic Live Charts, Technical Analysis, Live News and Alerts, Extensive Reports for Real-time Accounting.Document Required to open Equity Trading Account with Indiabulls1. One passport size photograph.2. Proof of bank account3. Copy of PAN card.4. Identity proof - copy of passport or PAN card or voter ID or driving license or ration card.5. Address proof - copy of driving license or passport or ration card or voter card or telephone bill or electricity bill or bank statement. Brokerage and fees :1. Account opening fees : Rs 1200/- (One time non-refundable) as below: 250/- Equity Trading Account opening charge 200/- Demat Account opening charge 750/- Software changes
116 Advantages of Indiabulls Equity Trading Account 1. Brokerage is less compare to other online trading companies. 2. Provide trading terminal powerbulls, a java based software. Its very fast in terms of speed and execution DRAWBACKS OF INDIABULLS W Management team is not serious. e Brokerage is very high. r Don’t send proper transaction report daily. Take time for opening an accout Brokerage chargesSEBI allows brokers to charge up to 2.5% on every trade transaction. Indiabullscharges 0.5% (either buy or sell) for delivery trades. A complete trade (buy &sell) would cost 1%. The intra-day brokerage is 0.05%. Brokerage costs reducewith further volumes in trade. 0.3% for delivery & 0.01% for intraday is easilypossible now a days
117A/C opening charge-Rs 1200Name of the software used- PIB(Power India Bulls)Software installation charge- 750/-No. of scripts provided by the software- unlimitedMaintenance charge- nilExposure- 3 times intraday and 8 times delivery.Name of the bank with the help of which customer get the facility of netbanking- HDFC,IDBI,ICICI and Axis Bank.Services provided- Equity, Housing Loan, Personel Loan, Insurance.12DP sell charge- 10/-Brokerage- Intraday-.05% & Delivery-.5%Transaction Report- Through mail & courier(Free of cost)Prepaid Scheme- not available.Types of trading accounts provided- Cash a/c , Intra a/c, Margin a/c.Network- 718 branches and 4500000 customers across the country.Margin money- NILSecrecy- use logger phone so that the broker cannot go beyond their word.
118 ICICIDirect.comICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Alongwith stock trading and trading in derivatives in BSE and NSE, it also providesfacility to invest in IPOs, Mutual Funds and Bonds. Trading is available in BSEand NSE. Products and Services A product for every need: ICICIdirect.com is the most comprehensive website, which allows you to invest in Shares, Mutual funds, Derivatives (Futures and Options) and other financial products. Simply put we offer you a product for every investment need of yours. 1. Trading in shares: ICICIdirect.com offers you various options while trading in shares. Cash Trading : This is a delivery based trading system, which is generally done with the intention of taking delivery of shares or monies. Margin Trading : You can also do an intra-settlement trading upto 3 to 4 times your available funds, wherein you take long buy/ short
119sell positions in stocks with the intention of squaring off the positionwithin the same day settlement cycle.MarginPLUS Trading : Through MarginPLUS you can do an intra-settlement trading upto 25 times your available funds, wherein youtake long buy/ short sell positions in stocks with the intention ofsquaring off the position within the same day settlement cycle.MarginPLUS will give a much higher leverage in your accountagainst your limits.CallNTrade® : CallNTrade® allows you to call on a local numberin your city & trade on the telephone through our Customer ServiceExecutives. This facility is currently available in over 11 majorstates across India.Trading on NSE/BSE : Through ICICIdirect.com, you can tradeon NSE as well as BSE.Market Order : You could trade by placing market orders duringmarket hours that allows you to trade at the best obtainable price inthe market at the time of execution of the order.Limit Order : Allows you to place a buy/sell order at a price definedby you. The execution can happen at a price more favorable thanthe price, which is defined by you, limit orders can be placed by youduring holidays & non market hours too.
1202. TRADE IN DERIVATIVES:FUTURESThrough ICICIdirect.com, you can now trade in index and stockfutures on the NSE. In futures trading, you take buy/sell positions inindex or stock(s) contracts having a longer contract period of up to3 months.Trading in FUTURES is simple! If, during the course of the contractlife, the price moves in your favour (i.e. rises in case you have abuy position or falls in case you have a sell position), you make aprofit.Presently only selected stocks, which meet the criteria on liquidityand volume, have been enabled for futures trading.Calculate Index and Know your Margin are tools to help you incalculating your margin requirements and also the index & stockprice movements. The ICICIDIRECT UNIVERSITY on the HOMEpage is a comprehensive guide on futures and options trading.OPTIONSAn option is a contract, which gives the buyer the right to buy or sellshares at a specific price, on or before a specific date. For this, thebuyer has to pay to the seller some money, which is calledpremium. There is no obligation on the buyer to complete thetransaction if the price is not favorable to him.
121 To take the buy/sell position on index/stock options, you have to place certain % of order value as margin. With options trading, you can leverage on your trading limit by taking buy/sell positions much more than what you could have taken in cash segment. The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Call has the obligation of selling the Underlying Asset at the specified Strike price. The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset at the specified strike price by paying a premium whereas the Seller of the Put has the obligation of Buying the Underlying Asset at the specified Strike price. By paying lesser amount of premium, you can create positions under OPTIONS and take advantage of more trading opportunities.Trade In: BSE and NSE
122Type of AccountICICIDirect offers 3 different online trading platforms to its customers: 1. Share Trading Account Share Trading Account by ICICIDirect is primarily for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading, MarginPLUS Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone. ICICIDirect.com website is the primary trading platform for this trading account. They also provide installable application terminal based application for high volume trader. 2. Wise Investment Account Along with stock trading and IPO investing in BSE and NSE, Wise Investment account also provide options to invest in Mutual Funds and Bonds online. Online Mutual funds investment allows investor to invest on-line in around 19 Mutual Fund companies. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to
123 electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds. ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs, Bonds and stock trading. 3. Active Trader Account Active Trader account gives more personalized investment options to the investors. It allows investor to use online and offline stock trading. It also provides with independent market expertise and support through a dedicated Relationship Manager from ICICI. Active Trader also provides commodity trading.Brokerage and fees 1. Account opening fees : Rs 750/- (One time non-refundable) 2. Brokerage : ICICIDirect.com brokerage varies on volume of trade and inclusive of demat transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.85% on delivery based trades.How to open account with ICICIDirect?For Online Stock Trading with ICICI, investor needs to open 3 accounts...ICICIBank Account, ICICI Direct Trading Account and ICICI Demat Account (DPAccount).
124Note: If you already have a bank account or demat account with ICICI, you couldlink it with new ICICIDirect trading account.Opening trading account with ICICI is easy. You could use one of the followingoptions to open account with ICICIDirect. • Visit ICICIDirect.com and fill the "Open an Account" form. • Call ICICI and tell them that you are interested in opening an account with them.In both the cases ICICI representative contact you in a day or two and tell youabout the procedure to open the account. They usually send somebody to yourhome to collect documents, signature and for demo if required.Advantages of ICICIDirect 1. 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. This feature makes ICICI the most interesting player in online trading facility. There is absolutely no manual interfere require. This is truly online trading environment. 2. Unlike most of the online trading companies in India which require transferring money to the brokers pool or towards deposits, at ICICIDirect you can manage your own demat and bank accounts through ICICIdirect.com. Money from selling stock is available in ICICI bank account as soon as the ICICIDirect receive it. 3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard.
125 4. Trading is available in both BSE and NSE.Disadvantages of ICICIDirect 1. Getting access to ICICIDirect.com website during market session can be frustrating. 2. ICICIDirect brokerage is high and not negotiable. 3. Not all stocks are available under Margin Plus.
126A/C opening charge-Rs750-Name of the software used- not available one can access through net.Maintenance charge- Rs.450/- from 2nd year.Exposure- 5 times for margin and 25 times for margin plus.Name of the bank with the help of which customer get the facility of netbanking- ICICI(providing zero balance in saving account)Services provided- Equity,IPO,Commodities,Insurance,Mutual Funds, GOIbonds,Derivatives, Postal Savings.Brokerage- intra day-.10%-.15%Delivery- .4%-.85%Transaction Report- Through Courier(free of cost)Prepaid Scheme- not available.Types of trading accounts provided- De-Mat a/c, Trading a/c , Saving a/c.Network- 2124 branches across the countries and 19 foreign branches.Margin money- Rs.500/-Secrecy- password provided to the customers and it can be changed by thecustomer only.
127 SHARE KHAN.COMSharekhan is online stock trading company of SSKI Group, provider of India-based investment banking and corporate finance service. ShareKhan is one ofthe largest stock broking houses in the country. S.S. Kantilal Ishwarlal SecuritiesLimited (SSKI) has been among India’s leading broking houses for more than acentury.Sharekhans equity related services include trade execution on BSE, NSE,Derivatives, commodities, depository services, online trading and investmentadvice. Trading is available in BSE and NSE. Along with Sharekhan.comwebsite, ShareKhan has around 510 offices (share shops) in 170 cities aroundthe country.Share khan has one of the best state of art web portal providing fundamental andstatistical information across equity, mutual funds and IPOs. You can surf across5,500 companies for in-depth information, details about more than 1,500 mutual
128fund schemes and IPO data. You can also access other market related detailssuch as board meetings, result announcements, FII transactions, buying/sellingby mutual funds and much more.Trade In: BSE and NSE Type of AccountClassic Account Trading Terminal 1. ShareKhan Classic account Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer. a. Online trading account for investing in Equities and Derivatives b. Free trading through Phone (Dial-n-Trade) I. Two dedicated numbers for placing your orders with your cellphone or landline. II. Automtic funds tranfer with phone banking (for Citibank and HDFC bank customers)
129 III. Simple and Secure Interactive Voice Response based system for authentication IV. get the trusted, professional advice of our telebrokers V. After hours order placement facility between 8.00 am and 9.30 am c. Integration of: Online trading + Bank + Demat account d. Instant cash transfer facility against purchase & sale of shares e. IPO investments f. Instant order and trade confirmations by e-mail g. Single screen interface for cash and derivatives SpeedTrade Treading Terminal2. ShareKhan SpeedTrade account This accounts for active traders who trade frequently during the days trading session. Following are few popular features of SpeedTrade account. a. Single screen interface for cash and derivatives b. Real-time streaming quotes with Instant order Execution & Confirmation c. Hot keys similar to a traditional broker terminal d. Alerts and reminders
130 e. Back-up facility to place trades on Direct Phone linesBrokerage:Some stock trading companies charge direct percentage while others charge afixed amount per Rs 100. Sharekhan charges 0.5% for inter day shares and0.1% for intra day or you could say Sharekhan charges 50 paise per Rs 100.How to open account with Sharekhan?For online trading with Sharekhan, investor has to open an account. Followingare the ways to open an account with Sharekhan: • Call them at phone number provided below and ask that you want to open an account with them. 1. Call on Toll free number: 1-800-22-7500 to speak to a Customer Service executive 2. If you are in Mumbai call on 022-66621111 • Visit one of their branches. Sharekhan has a huge network all over India. Click on http://sharekhan.com/Locateus.aspx this link to find out your nearest branch. Just select the place near you and youll find a manager to assist you there. • You can send them an Email on email@example.com to know about their products and services. • If you wish to chat with customer service representative, you can join the chat sesssion.
131Advantages of Sharekhan: 1. Online trading is very user friendly and one doesnt need any software to access. 2. They provides good quality of services like daily SMS alerts, mail alerts, stock recommendations etc. 3. Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.Disadvantages of Sharekhan:1. They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 rs. (If you trade, you will loose majority of your money in brokerage).2. Lots of hidden rules and charges.3. They do not provide facility to book limit order trades during after-hours.4. Classic account holders cannot trade commodities.5. Cannot purchase mutual funds online. 6. Their management team is not serious 7. Their brokerage rate is not fixed. 8. Take large time for account opening. 9. They give wrong information at the time of opening the account. 10. They don’t send daily transaction report
132A/C opening charge- 750/-Name of the software used- Java ssn.Software installation charge- nilMaintenance charge-Exposure- 4 times for intraday and delivery both.Name of the bank with the help of which customer get the facility of netbanking- AXIS bank, HDFC bank, UBI, IDBI,City Bank.Services provided- Equity,IPO,MF,Derivatives,Commodities.DP sell charge- NILBrokerage- intraday-.05%-.07% & Delivery-.25%-.40%Transaction Report- Through mail(Free of Cost)Prepaid Scheme- yesTypes of trading accounts provided- Classic a/c (for sudden user)Spend Trade a/c(for frequent user)Network- 510 centers across 170 cities 2,18,000 customers.Margin money- Rs.5000/-Secrecy- Security Socket Layer(SSL),a security that the informationtransmitted between customer and agent , given by Versign , universallyaccepted world wide web.The security encripton level in Sharekhan is 128bit.
133 HDFCsec.comHDFC Securities(HDFCsec) is Equity Trading Company of HDFC Bank. HDFCSecurities provide both online trading and trading on phone. The HDFCSecurities trading account has a unique 3-in-1 feature that integrates your HDFCSecurities trading account with your existing HDFC bank savings account andexisting Demat account. Funds / shares are seamlessly moved from the linkedDemat/Bank account to execute the transactions.HDFCsec provides Cash-n-Carry on both NSE and BSE, Day trading on bothNSE and BSE, Trade on Futures & Options on the NSE and Online IPOInvestment.Features on HDFC Securities Online trading 1. Seamless Transactions - By integrating your accounts, we ensure minimal waste of time during movement of your funds and shares. 2. Speed - Orders are placed electronically, so proceeds are available instantly.
134 3. No manipulation - To prevent any mismanagement, we will send you an email confirmation, the minute your order is executed. 4. Safety and Security - HDFC Securities offer the highest level of security such as 128-bit encryption technology. 5. Dedicated and Separate contact numbers - for trading over the phone as well as for customer care.Document Required to open account with HDFCsecAny Indian resident/non resident individual NRI (except for the US NRIs) or anIndian Corporate can register with HDFCsec. However, to become a member,you will have to open savings/current and demat accounts with HDFC Bank.Following documents are required to open accouunt with HDFCsec 1. One passport size photograph. 2. Copy of PAN card. 3. Identity proof - copy of passport or PAN card or voter ID or driving license or ration card. 4. Address proof - copy of driving license or passport or ration card or voter card or telephone bill or electricity bill or bank statement.Brokerage and fees : 1. Rs. 799/- (Including trading account, bank account and DP account with HDFC) Please note: HDFC Bank savings account required a quarterly minimum balance of Rs. 2,500/-. If you already have Saving account or DP account with HDFC, you could link them with trading account.
135Summary of service chargesFor the convenience of our customers and as a fair practice measure, we listbelow the various standard charges that we levy for our services/facilities. Thesecharges are w.e.f. Apr 1 2007.Account opening charges :Rs. 799/- for Resident individualsRs. 1200/- for Non Resident IndividualsStatutory leviesThese are charged as applicable from time to time. The following charges arepresently levied as statutory dues.Securities Transaction tax* Rate effective from Apr 1 2007 :
136 Segment Exchange Delivery Intraday Cash NSE and BSE 0.125% 0.025% Derivatives * NSE 0.017 0.017%* at the time of saleService Tax and Education Cess :Service Tax is charged at the rate of 12% and Education Cess at 2% and HigherEducation cess at 1% (Total tax 12.36%).REMARK
137The above charges are subject to changes/ revision from time to time. Thechanges/revision will be displayed on the Companys website.The above charges do not include any charges that may be levied forDP/Banking services.The above charges are applicable for all clients other than NRI clients.A/C opening charge- 799/-Name of the software used- Sun Java.Software installation charge- NILMaintenances charge- 500/- from 2nd year.Exposure- 5 times for intraday.
13812Name of the bank with the help of which customer get the facility of netBanking- HDFC, SB I, ICICI, Axis Bank.Services provided- Equity, IPO, PMS, Derivatives, Mutual Funds.Brokerage- Delivery-.50% & Intraday-.05%Transaction Report- Through mail/courier(Free of cost)Prepaid Scheme- not available.Types of trading accounts provided- De-Mat a/c, Trading a/c, Margin a/c.Network- 480 branches in 230 cities.Margin money- 5000/-Secrecy- password cannot be accessed through internet.HDFC Securitiesoffer the highest level of security such as 128-bit encryption andSSL(Secured Socket Layer) technology. METHODOLOGY…ADOPTEDResearch methodology refers to the search for Knowledge. It is a way tosystematically solve the research problem. In it we study the various steps thatare generally adopted by the researcher in studying his research problem alongwith logic behind them.
139Research Methodology concerning a research problem or study provide answersto various questions like; why a research study has been undertaken, how theresearch problem has been defined, what data have been collected and whatparticular method has been adopted to collect the data, what technique has beenused for analyzing the data and a host of similar other questionsThough there are more than one alternative approaches available to theresearcher, but this not enough to make the task of selecting the suitableresearch design simpler. Like the so-called suitable research design may requiresome in between approach. The objective of study being the main determinant ofthe validity and reliability of the method adopted the degree of usefulness of thescientific method. Since there are many aspects of research methodology, in lineof action has to be chosen from variety of alternatives, so that individual choice ofsuitable method is further complicated and make a viable whole. The choice ofsuitable method is further complicated by the possibility of many permutationsand combinations. The fair selection can be arrived at through the objectiveassessment and of course comparison of various alternatives. The finallyselected line of action must ensure that this is indeed best one as against thoserejected by the researcher. in addition, the circumstances and problems alsohaving a bearing in the choice. To count a fem, limitations could be imposed inthe sense of funds available, time and urgency in conducting the research. Sothe final choice must be based on assessment of its advantage anddisadvantages when weighted against affecting factors.Research methodology can be said to have four major components namely-Research design, Sample design, Data collection procedure and methods ofanalyzing and reporting the findings.
140 Methodology of the project starts with: • In the first phase we are trained and they teach us different things about market. • After that they conduct a mock viva , in this they ask about the real life problem faced by the customers. • They provide leads and after that we make calls. • Then after that we have to provide details of product and convince them • Then we have to visit them and get the formed filled from them. • Maintaing dairy of clients and contacting them at regular basis. • The next part is knowing the patteren of the banking sectors scripts.How they move with the correspondance to the market movement and also the economy. • Get the knowledge of technical as well as fundamental methods. • Observe the patterns of the scripts.Objective of research;
141 • The main objective of this project is concerned with getting the opinion of people regarding demat account, and to create awareness of on line trading. • I had tried to explore the general opinion about the equity market and services provided by India Infoline ltd .It also covers why/ why not investors are availing the services of financial advisors. • Along with it a brief introduction to India’s largest financial intermediary, India Infoline Ltd has been given and it is shown that what are Demat a/c, online trading awareness and how they work.TYPES OF RESEARCHOn the basis of theoretical study a researchhas many types. All of these are distributedon the nature of research. Some of theseare like1. Descriptive and Analytical2. Qualitative and Quantitative3. Conceptual and empirical4. Applied and fundamental