Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Online Share Trading     Benefits and Pitfalls J.Karthikeyan Director, Finerva Financial Solutions Pvt Ltd FINERVA
Agenda <ul><li>History – Your Sharing </li></ul><ul><li>Entities Involved </li></ul><ul><li>Benefits for Each Entity </li>...
History <ul><li>Stock Exchanges </li></ul><ul><li>BSE </li></ul><ul><li>NSE </li></ul><ul><li>Volume Online  </li></ul>FIN...
Entities Involved <ul><li>Individual Investors </li></ul><ul><li>Intermediaries </li></ul><ul><li>The Government & The Reg...
Benefits & Pitfalls for the Government and the Regulator <ul><li>Benefits </li></ul><ul><ul><li>Settlement Period is reduc...
Benefits & Pitfalls for the Government and the Regulator <ul><li>Pitfalls </li></ul><ul><ul><li>Effort required for Implem...
Benefits & Pitfalls for the Intermediaries <ul><li>Benefits </li></ul><ul><li>Higher income – Higher transactions </li></u...
Benefits & Pitfalls for the Intermediaries <ul><li>Pitfalls </li></ul><ul><li>More investment required – margin money and ...
Benefits and Pitfalls for Individual Investors <ul><li>Benefits </li></ul><ul><li>Easier to maintain </li></ul><ul><li>Cos...
Benefits and Pitfalls for Individual Investors <ul><li>Pitfalls </li></ul><ul><li>More Transactions – More cost </li></ul>...
DISCUSSION <ul><li>THANK YOU </li></ul>FINERVA
Upcoming SlideShare
Loading in …5
×

Online Share Trading – Benefits And Pitfalls

1,878 views

Published on

Published in: Economy & Finance, Business
  • Be the first to comment

  • Be the first to like this

Online Share Trading – Benefits And Pitfalls

  1. 1. Online Share Trading Benefits and Pitfalls J.Karthikeyan Director, Finerva Financial Solutions Pvt Ltd FINERVA
  2. 2. Agenda <ul><li>History – Your Sharing </li></ul><ul><li>Entities Involved </li></ul><ul><li>Benefits for Each Entity </li></ul><ul><li>Pitfalls for Each Entity </li></ul><ul><li>Discussions </li></ul>FINERVA
  3. 3. History <ul><li>Stock Exchanges </li></ul><ul><li>BSE </li></ul><ul><li>NSE </li></ul><ul><li>Volume Online </li></ul>FINERVA
  4. 4. Entities Involved <ul><li>Individual Investors </li></ul><ul><li>Intermediaries </li></ul><ul><li>The Government & The Regulator </li></ul><ul><li>Excluded: Large & Institutional Investors, Mutual funds and Financial Institutions </li></ul>FINERVA
  5. 5. Benefits & Pitfalls for the Government and the Regulator <ul><li>Benefits </li></ul><ul><ul><li>Settlement Period is reduced and monitored easily – Events like Harshad Metha Scam cannot happen </li></ul></ul><ul><ul><li>Better control on the traders – through Demat Accounts – PAN linked </li></ul></ul><ul><ul><li>Better control on Intermediaries </li></ul></ul><ul><ul><li>Easy & More Collection of Tax – STT & Volumes </li></ul></ul><ul><ul><li>Environment friendly </li></ul></ul><ul><ul><li>IPO processing easier faster and more economical – promotes development </li></ul></ul>FINERVA
  6. 6. Benefits & Pitfalls for the Government and the Regulator <ul><li>Pitfalls </li></ul><ul><ul><li>Effort required for Implementation </li></ul></ul><ul><ul><ul><li>Education – Investor Education Fund </li></ul></ul></ul><ul><ul><ul><li>Infrastructure – processing, verifying documents </li></ul></ul></ul><ul><ul><li>Errors in Processing – Trade / Settlement Guarantee Fund </li></ul></ul><ul><ul><li>Scams like multiple demat accounts - Roopalben Panchal (14,807) 45,000 in all </li></ul></ul>FINERVA
  7. 7. Benefits & Pitfalls for the Intermediaries <ul><li>Benefits </li></ul><ul><li>Higher income – Higher transactions </li></ul><ul><li>Better Management of Portfolios – Easier and Faster </li></ul><ul><li>Transparent Operation – Clear Communication, Processing, Accounting </li></ul><ul><li>More Products – Futures, Options, Debt </li></ul>FINERVA
  8. 8. Benefits & Pitfalls for the Intermediaries <ul><li>Pitfalls </li></ul><ul><li>More investment required – margin money and client leverage </li></ul><ul><li>More risky if client is highly leveraged – Mark-to-Market </li></ul><ul><li>More research required </li></ul><ul><li>Higher regulator visibility and intervention </li></ul><ul><li>Lesser Investment sin Mutual funds </li></ul>FINERVA
  9. 9. Benefits and Pitfalls for Individual Investors <ul><li>Benefits </li></ul><ul><li>Easier to maintain </li></ul><ul><li>Cost per transaction is reduced </li></ul><ul><li>Easier and Faster to Trade - Buying or Selling </li></ul><ul><li>Transparent Transactions </li></ul><ul><li>Accounting is automatic </li></ul>FINERVA
  10. 10. Benefits and Pitfalls for Individual Investors <ul><li>Pitfalls </li></ul><ul><li>More Transactions – More cost </li></ul><ul><li>Day-Trading Addiction - Brad Barber and Terrance Odean in the US market shows that 82% of the day traders lose money. </li></ul><ul><li>Higher Visibility to the Taxman </li></ul><ul><li>Lack of Research and Knowledge </li></ul><ul><li>No Verification on Decision </li></ul>FINERVA
  11. 11. DISCUSSION <ul><li>THANK YOU </li></ul>FINERVA

×