Project Report on Future of Online Share Trading

PROJECT REPORT

ON

“Future of online Share trading and The Growth of Internet in India”

Submitted to Guru Gobind Singh Inderprastha Univerisity in the partial fulfillment of the Degree

Of

MASTER OF BUSINESS ADMINSTRATION

UNDER GUIDANCE OF SUBMITTED BY:

NITIN DHIMANMr. DEEPAK ARORA

ARMY INSTITUTE OF MANAGEMENT AND TECHNOLOGY PLOT NO. M-1,POCKET P-5, DISTT. GAUTAM BUDHNAGAR, GREATER NOIDA. U.P.

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Certificate

This is certify that Nitin Dhiman of MBA , student of Army Institute of Management and

Technology has successfully completed his project titled

“Future of online Share trading in India and The Growth of Internet”

Under my supervision. This project is an original piece of work and has not been copied from any

other source. It further certifies that this project has not been submitted to any other company/

University for any other purpose.

Dated: Mr. Deepak Arora

(Project Guide)

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INDEX PAGE NO.

ACNOWLEDGMENT 4

PREFACE 5

EXECUTIVE SUMMARY 6

ASTRACT 7-8

1. Introduction 9-11

1.1Objectives 12

1.2Methodology 13

2. Company Profile 14

2.1companyDetails 15-25

3. Growth of Internet 26-29

4. About Online share trading 30

4.1 Facts about online trading 31

4.2 Indian Scenario (SWOT Analysis) 32-34

4.3 Investing advices 35-36

4.4 Hurdles for online share trading 37-38

5. Different Competitors 39-40

5.1 Unicon Securities 41

5.2 Icici Securities 42

5.3 India bulls 43-44

5.4 Kotak securities 44

6. Account opening Requirements 45-46

6.1 Documents required 47

7. Analysis of the market research 48-70

8. Limitation 71

9. Conclusion 72

10. Annexure 73-74

11. Bibliography 75

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ACKNOWLEDGEMENT

I express my sincere gratitude and thanks to hon’ble, Mr. DEEPAK ARORA, for whose kindness I

Got the opportunity to undergo on the Research project at Religare securities ltd. Under his brilliant

untiring guidance I could complete the project being undertaken on the “Future of online Share

trading in India and the growth of Internet” successfully in time. His meticulous attention and

invaluable suggestions have helped me in simplifying the problem involved in the work. I would also

like to thank the overwhelming support of all the people who gave me an opportunity to learn and gain

knowledge about the various aspects of the industry.

I am also thankful to my friends for helping me in many ways

Last but not the least, I would like to thank the management of Army institute of Management and

Technology for their kind guidance and help at every step of the project.

Yours Truly

NITIN DHIMAN

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PREFACE

Theoretical knowledge is of no use, until & unless it is applied into some practical aspects. It lays

down the stress on the proper implementation of the theoretical knowledge into real life practical

aspect. Thus to apply all theoretical knowledge gained so far on practical field, I have undertaken

on the job research project titled as” future of online share trading in India and growth of

internet”.

I have done the project by applying various marketing tools like Marketing Research

(Questionnaire design, Interviews and Presentations), Tele Marketing, and Direct Marketing in the

Chandigarh region where my Branch was located.

The report contains first of all, an executive summary about the work undertaken by me and the

procedure followed. Then follows a small abstract of each section covered by me .The introduction

part highlights the objective and the methodology followed. The report also tells in detail about the

profile of the company, throws some light on the growth of Internet in India that is an essential part

of share trading. The report also tells in detail about online share trading, different competitors in

the market, the various requirements for opening share trading accounts and finally the analysis of

the market Research done by me. It also highlights the limitations of share trading in India .In the

end I have summed up the entire project with a conclusion that I have derived from my

experience about online share trading

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EXECUTIVE SUMMARY

The work executed by me had an object oriented and realistic approach towards the online share

trading scenario in India as well as covering the globe by and large, precisely speaking economic

giants.

I did follow Market Research, Tele marketing and direct marketing procedure to get an extensive

idea about the general perception in the mass when online share trading is considered. To acquire

customers in favor of RELIGARE was also an integral part of the job. I covered Chandigarh and

its adjoining Areas for this purpose. A brief profile about the organization was also intimated

to each and every respondent in order to increase the popularity of RELIGARE.

The next phase was all about to have an Overall look in this field of online share trading. I

examined thoroughly all the areas such as the number of players, Product and Services they are

offering, the prices they charge for there services, whether this is appealing to the common people

or not, the presence of the players in the market & how they market their services etc.

Taking into Considerations all the above facts It can be concluded that in due course of time,

Indian online share trading will find its hold; there is no doubt about that.

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ABSTRACT

To maintain and cope up with the growing competition from the various online trading providers,

Religare needs to find the potential customer and also target the new investors.

The project is being done to comment on the future of online trading in India. Its objective is to

find out whether online trading is being accepted on large scale by the people or not. The project is

also being done to train the people about the whole procedure essential to open an online trading

account couple with Demat account. The project will help in exploring the area where there is the

feasibility of acquiring more new investors. It would also help in knowing the various competitors

of the industry and exploring the areas through which competitive advantage could be obtained.

The report is divided into various sections

1. Company Profile:

This part describes the profile of the company. This section tells in detail about the company, when

it came into existence, who the members of its management team, what are its mission, visions and

goals etc.It also gives little insights into what company offers to the Corporate and the Consumers.

This section also describes the kind of technology used.

2. Growth of Internet

This part will describe about the number of Internet users, which has developed over the years with

growth of Internet.Difference between the numbers of users who do share trading with Internet

with those who do trading without Internet.

3. About online trading

Since the project leads to opening of online trading account, this section describe in detail about

the various factors that an investor should keep in mind before opening an online trading account.

This section also describes the swot analysis done by me highlighting the strength,

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weakness, and opportunities and threats that online share trading have in Indian market. It also

highlights the various hurdles for online share trading in India. The investing advices given on

daily bases to the active clients are also highlighted in the project .

4. Different competitors in online trading.

This section gives the detail of the different competitors and different services provided by them.

Then I have compared there services with our services.

5. Procedures and requirement for opening a Trading, Demat & Fund account.

This section gives the detail of the different conditions that have to be met for opening a trading,

demat and Fund account. The section contains the documents, which are required to open the

various accounts.

6. Different formalities for opening demat account

This section throws some light over different document as well as hardware and software

requirement for opening of online trading and demats account.

7. Analysis of the survey conducted on online trading in India

This section tells you about the analysis which is conducted for online trading.

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INTRODUCTION

Today scenario Online Share Trading in Stock market is mainly not in used by every one. Till now

mostly customers are working with offline but in major cities Online Share Trading is preferred

because no one have much time to go to market and work with offline.

BASIC CONCEPT

In Online Share Trading investors invest their money in stock market through online. They do not

go to broking house. They invest their money through Internet. Today companies provided all

information on a company website or make own software. Investors buy or sell their securities in a

few seconds by clicking a mouse.

Online Share Trading is beneficial for customer as well as company because in online customers

need not to take much pain for investing money in a market. All process is done automatically in a

few seconds. Companies provided research reports, monthly magazine etc through Internet.

Investors can fetch these information’s through online. These reports help investors for investing in

securities. Online Share Trading is very less time consuming and expensive. So Online share

Trading is much better than offline share trading. Online Share Trading is safer and faster

alternative to the offline Share Trading as it offers a freedom from delays, thefts and paperwork. So

Online Share Trading is quick, convenient and efficient.

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THE FLOW CHART BELOW DESCRIBE BROADLY WORKING OF

ONLINE SHARE TRADING

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Dealing Terminal Creation

Opening Client Account

Execution of orders/rms

Upfront Margin Collection

Post trade Pay in

Pay out

1.1PROJECT OBJECTIVE

I had taken the task of predicting the future of online share trading in India & the growth of

Internet as a part of the curriculum. The entire project was divided into two parts:

A) Conducting Market Research in various parts of the city in order to get statistical data

for commenting on the future of online share trading in India & the growth of Internet. It will help

me

To know the awareness for online trading among respondents

To determine the investors perspective and there responses towards online equity

trading

Find out Customer satisfaction and acceptability of online trading

B) Customer Acquisition through sales of Trading, Demat and Fund Accounts in order to get a

deep insight as to how the Organization actually performs these functions. It also helped me to;

Act as an equity advisor while the investor makes decision to invest in equities

To provide better investment solution to equity investor

We have to be in regular contacts with our clients so that we come to know about the problem they

are facing. This also helps us to multiply our clients by getting the further references. By this we

are able to make a chain of the customers which expands as we satisfy there needs.

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1.2METHODOLOGY

Methodology for Market Research

I divided the entire city into zones and drew out samples out of each zone. The size of samples

drawn from each zone depended on the prospective ness of the particular area. For e.g., if a

particular research area consisted of Offices then the sample size would obviously be higher than,

an area like Shopping mall. This is because Office employees constitute the service sectors who are

the active investors of today. Also, the office areas consist of people from the business class who

have always been in the hunt for quick money, not to forget that smart and timely investment in the

share market can yield you enormous returns. After dividing the city into zones, the Target

audience was probed using Interviews and questionnaires. These were later analyzed to draw out

conclusive results.

The Research Area Comprised of the following places:

Zone Areas Covered Sample Size

North SECTOR-9,10,11 9

South SECTOR-44, 45Industrial area-phase-1&2 21

East SECTOR-7, 8,18,19, 26,27,28 15

West SECTOR-37, 38,39,40,41,42,43 18

Central SECTOR- 15,16,17,20,21,22,23,24,34,35,36 41

And some parts of Panchkula and Mohali have also been taken for the research work.

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COMPANY DETAILS

INTRODUCTION

Religare Enterprises Limited (REL), is one of the leading integrated financial services groups of

India. Backed by a blue chip promoter pedigree and a proven track record, REL’s businesses are

broadly clubbed across three key verticals, the Retail, Institutional and Wealth spectrums, catering

to a diverse and wide base of clients.

REL offers a multitude of investment options and a diverse bouquet of financial services and can

boast of a rt seach thapreads across the length and breadth of the country with its presence in more

than 1460 locations across more than 450 cities and towns.

As part of its recent initiatives, the group has also started expanding globally and has acquired

London’s oldest brokerage & investment firm, Hichens, Harrison & Co Plc. Following this acquisi-

tion Religare now proposes to operate out of 10 countries. Religare has successfully partnered with

Aegon, one of the global leaders to launch Life Insurance and Mutual Fund products in India and

with Macquarie, Australia’s leading financial services provider for a Wealth Management joint

venture. It has also partnered with Vistaar Entertainment to launch India’s first film fund*.

The vision is to build Religare as a globally trusted brand in the financial services domain and

present it as the ‘Investment Gateway of India’. All employees of the group ceaselessly strive to

provide financial care driven by the core values of diligence and transparency.

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COMPANY PROFILE

Industry

: Finance - General BSE Code : 532915Book Closure

: 20/09/2008

Group: Ranbaxy Group NSE Code : RELIGARE Market Cap

: Rs. 2982.98 Cr.

ISIN No : INE621H01010Market Lot

: 1 Face Value : Rs. 10.00

Registered & Corporate Office Registrar & Share Transfer Agent19, Nehru Place, , , New Delhi, Delhi - 110019 Tel: 30815100/66552200, , , Fax: 30815288, Email: [email protected] Website: www.religare.in

Karvy Computershare Private Ltd Plot No. 17-24, Vittal Rao Nagar, Madhapur, Hyderabad - 500081, Andhra Pradesh. Tel: 23420818, 23420824

Key OfficialsName DesignationMalvinder Mohan Singh Chairman / Chair PersonSunil Godhwani Managing Director & CEORavi Batra Company Secretary and Compliance OfficerOther DetailsListings Incorporation Public Issue DateBSE , NSE 30/01/1984 29/10/2007

Recent News And Analysis

Date Headlines30/06/2008 Religare Enterprises - Allotment of Equity Shares under ESOS28/06/2008 Religare Enterprises fixes Book Closure for Dividend & AGM27/06/2008 Religare Enterprises - Results Press Release26/06/2008 Religare Enterprises Board recommends dividend24/06/2008 Religare Enterprises clarifies on news item

2. Mission

To provide financial care driven by the core values of diligence & transparency.

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http://www.religare.in/

mailto:[email protected]

3. Vision

To build Religare as a globally trusted brand in the financial services domain and present it as the

‘Investment Gateway of India’.

4. MANAGEMENT TEAM

Mr. Sunil Godhwani - CEO & Managing Director, Religare Enterprises Limited

Mr. Shachindra Nath - Group Chief Operating Officer, Religare Enterprises Limited

Mr. Anil Saxena- Group Chief Finance Officer, Religare Enterprises Limited

Board of Directors - Religare Enterprises Limited

Mr. Malvinder Mohan Singh - Chairman (Non Executive)

Mr. Sunil Godhwani - CEO & Managing Director

Mr. Shivinder Mohan Singh - Non Executive Director

Mr. Harpal Singh - Non Executive Director

Mr.Deepak Ramchand Sabnani - Independent Director

Mr.Padam Bahl - Independent Director

Mr.J.W. Balani - Independent Director

Mr. Baldev Singh Johal - Independent Director

Mr. R. K. Shetty - Alternate to Mr. J. W. Balani

Capt.G.P.S.Bhalla - Alternate to Mr. Deepak Sabnani

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5. HR INITIATIVE

Processes - Human Resources

Relgare prides itself on being an employee friendly company. We have adopted an extremely

positive HR policy that ensures the best possible results through effective pre-induction and post-

induction of personnel and imparting of requisite training

Retention

In order to get the best out of its employees and retain them in a high attrition rate industry,

Religare has established a number of attractive schemes and incentive programs for its employees.

All employees are full time salaried employees. These salaries, which are among the top tier of

industry earnings, are complemented by performance-based incentives. Impeccable attendance

rates and employee longevity are also recognized and bonuses paid accordingly. Religare believes

that recognition programs are vital to maintaining the highest levels of motivation.

Career Development

For promising employees, Religare has a career development program in place. Employees ready

to take on higher responsibilities are identified and relevant training is imparted upon them.

Employees are also encouraged to upgrade their skills from external sources if these skills are

relevant to their current profiles.

Training

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Religare adopts a scheduled training process and a modular approach for imparting theoretical and

practical knowledge in its trainees.

Training Schedule

Employees, on being hired, go through an intensive induction-training module, which covers

technical enhancement and orientation in cross cultural sensitization. The induction training is

followed by process specific training, which is tailor-made to the client's requirement

Training Tools

Religare's trainers make use of a wide variety of training tools and applications to make the

learning process both fun and interesting. Tools and methodologies used include Discussions,

Lecture Debates, Assignments, Shadowing Process, Movie Clips, and Reading exercises

Religare customers have the advantage of trading in all the market segments together in the same

window, as we understand the need of transactions to be executed with high speed and reduced time.

At the same time, they have the advantage of having all kind of Insurance & Investment Advisory

Services for Life Insurance, General Insurance, Mutual Funds, and IPO's also.

Religare is a customer focused financial services organization providing a range of investment

solutions to our customers. We work with clients to meet their overall investment objectives and

achieve their financial goals. Our clients have the opportunity to get personalized services depending

on their investment profiles. Our personalized approach enables clients to achieve their Total

Investment Objectives. Our key product offerings are as follows

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Client Interface

Retail Spectrum-

To cater to a large number of retail clients by offering all products under one roof through the Branch

Network and Online mode

Equity and Commodity Trading

Personal Financial Services

Mutual Funds

Insurance

Saving Products

Personal Credit

Personal Loans

Loans against Shares

Online Investment Portal

Institutional Spectrum-

To Forge & build strong relationships with Corporate Client and Institutions

Institutional Equity Broking

Investment Banking

Merchant Banking

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Transaction Advisory

Corporate Finance

Wealth Spectrum

- To provide customized wealth advisory services to High Net worth Individuals

Wealth Advisory Services

Portfolio Management Services

International Advisory Fund Management Services

Priority Client Equity Services

Arts Initiative

BRAND IDENTITY

Name

Religare is a Latin word that translates as 'to bind together'. This name Religare was chosen to re-

flect the integrated nature of the financial services the company offers. The name is intended to

unite and bring together the phenomenon of money and wealth to co-exist and serve the interest of

individuals and institutions, alike.

Symbol

The name is paired with the symbol of a four-leaf clover , a rare mutation of the common three-

leaf clover. Traditionally, it is considered good fortune to find a four leaf clover as there is only

one four-leaf clover for every 10,000 three-leaf clovers found.

Each leaf of the four-leaf clover has a special meaning in the sphere of Religare.

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The first leaf of the clover represents Hope. The aspirations to succeed. The dream of becom-

ing. Of new possibilities. It is the beginning of every step and the foundations on which a per-

son reaches for the stars.

The second leaf of the clover represents Trust. The ability to place ones own faith in another.

To have a relationship as partners in a team. To accomplish a given goal with the balance that

brings satisfaction to all not in the binding but in the bond that is built.

The third leaf of the clover represents Care. The secret ingredient that is the cement in every

relationship. The truth of feeling that underlines sincerity and the triumph of diligence in ev-

ery aspect. From it springs true warmth of service and the ability to adapt to evolving envi-

ronments with consideration to all.

The fourth and final leaf of the clover represents Good Fortune. Signifying that rare ability to

meld opportunity and planning with circumstance to generate those often looked for remuner-

ative moments of success.

Hope. Trust. Care. Good fortune. All elements perfectly combine in the emblematic and rare,

four-leaf clover to visually symbolize the values that bind together and form the core of the

Religare vision.

Accent usage

The diacritical tilde mark ( ˜ ) over the letter A in the Religare typeface indicates a palatal empha-

sis sound of the letter A.

Pronunciation

rel•i•ga•re (rel'i-gâir)

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NEW INITIATIVES

Religare Capital Markets Limited, the wholly owned subsidiary of Religare Enterprises Lim-

ited (REL), the holding company for financial services businesses of the group has proposed

to acquire London’s oldest brokerage firm - Hichens Harrison & Co Plc. This acquisition will

provide Religare with the opportunity of creating a global distribution and execution platform

within emerging countries and surely help the Group to emerge as a global player in the financial

services market to provide small and medium Indian corporates with much needed access to capi-

tal.

Hichens Harrison is well placed in the emerging markets of Johannesburg, Cape Town,

Jakarta, Kuala Lumpur, Buenos Aires, Rio de Janero, Dubai and Mumbai.

Religare recently launched Femme Power - a financial advisory platform managed by women, for women .

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Religare has created an alternative career path keeping in mind the needs, wants and desires of today’s woman. Femme Power provides an opportunity for the contemporary Indian woman who strives to strike a balance between work and family life.

The primary focus of Femme Power is to provide a single point of contact from which women across India can access their financial investments and transactions, in addition to providing timely lifestyle tips.

5. PRODUCT PROFILE

Group Structure

Religare Enterprises Limited

Religare Securities Limited -

Equity BrokingPortfolio Management ServicesDepositoryOnline Investment PortalInstitutional Equity Broking

Religare Finvest Limited -

Lending and Distribution business

Religare Commodities Limited -

Commodity Business

Religare Insurance Broking Limited -

Life and Non Life InsuranceReinsurance

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Religare Capital Markets Limited -

Investment Banking

SEBI Registered Merchant Banker

Acquisition in UK through an international arm

Religare Arts Initiative Limited -

Art Fund and other businesses of Art

Gallery to be launched soon

Religare Realty Limited -

Real Estate Management Company

Religare Venture Capital Private Limited -

Private Equity and Investment Manager

Religare Macquarie Wealth Management Limited -

50: 50 joint venture with Macquarie for wealth management business

Religare AEGON AMC -

50:50 Joint Venture between REL and Aegon for Asset Management business in India.

trade on NSE, BSE and Derivatives all on one screen.

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Growth of Internet

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Internet trading in stocks eliminates the hassles of running around the broker, uncertainty over the

exact price of purchase, writing out cheque and giving instructions to depository participants (a

broker with a demat account). An investor can do his own research on the Net before making a

deal. The websites offering e-broking have all the information needed to make an informed

purchase or sale. Till recently, such information was the exclusive preserve of big investors.

Internet trading in India is expected to account for 10 per cent of the trading volume of the stock

exchanges in a year and would grow to 25 to 30 per cent in the next few years. Internet users in

India nearly account for 40 million users in India.

Though the spread of the Internet has been slow in India, players are catching on fast, at least in the

online stock trading business. Internet trading or e-broking seems to have passed through its

teething troubles and more players are now entering the fray. Given the suitability of the product

and rising demand, therefore, it is no surprise that E-broking has captivated the imagination of the

consumer and created a new breed of investor - the day-trader -whose impulse to buy, own and sell

is, and must be, matched by swift transaction processes. Online brokerage houses aim to provide

real-time quality information and research, high transaction efficiency and customer service.

This include stock analysis tools like technical analysis charts, stock tips, latest research

reports, company analysis, trends in the market, real-time market commentary, market

scoops and breaks etc provided by Religare . All these tools will help in making the investor

better informed and better equipped to make intelligent investments.

While volumes are still low at the Rs 100 million a day mark compared to the combined turnover

of Rs 90 billion a day on the Bombay Stock Exchange and the National Stock Exchange, e-brokers

have already announced price cuts that have been unheard of for the Indian trader. Investors and

traders have never had it as good as trading commissions and brokerage rates are declining steeply.

E-broking has triggered off a price war with each player valiantly trying to outdo the other. Every

broker has offered a service or a price to differentiate itself from the rest of the fray.

Share trading in India, until the arrival of online brokerages in about 2000 or so, was like driving on

Indian roads. It was a familiar story of might is right, big trucks (brokers) ruled the market and

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http://www.financialexpress.com/fe/daily/20000411/ffe06089.html

there were potholes and pitfalls in the shape of bad deliveries, dishonoured contracts, fakes and

what not. Unlike the highways, which have remained out of the reach of the aam aadmi, the share

market has changed. Slowly, from the physical world, shares moved into the digital world at

the NSDL &CDSL Then, trading became electronic. First it was a few of the blue chips, then it was

most of the blue chips and slowly it has taken over most of the market. New issues are today,

exclusively electronic. If digitisation took care of the back end, it has also made life easy at the

front end.

In the physical delivery world, one had to talk to a broker who told you the quotes. There was no

way of knowing if the quote was right. There was no way of knowing if your trade was made,

especially if you made a good call (Bad calls, almost inevitably got made). The broker could say,

that this was the best price I got and nobody would be wiser. You would not know if the shares

came from his account or from the market. You would not know if the shares were fake or

unsigned, as it happened sometimes. All this and more were true for the small investor.

Now with HDFC, ICICIdirect,KOTAK SECURITIES,INDIABULLS,UNICON and the other

brokers, share trading in India has gone online. Starting at about 2 pct, online trading forms about 10 pct in

terms of volume (I think the figure is higher than 10 pct in the retail segment). Some of these have

gone on to become the biggest "brokers" in India. It has opened the market to a whole segment of

people. Earlier, investing in shares was done by a limited few most of whom applied in an IPO and

stuck with the shares till they wanted money. Now, not only has online trading made life easier for

these people, it has opened up investing and trading to segments that never before participated in it.

By my rough estimates during my experience in Religare I found that many people who are

willing to open an online trading accounts,and do trading to earn quick and high returns out of the

boom that stock market is witnessing these days . More than 80% of these investors are active

traders; the number of day traders are less. But a small chunk of these also dabble in the futures

and options market. Housewives, retired professionals and even small businessmen. What was

hitherto a male dominated sphere also has quite a few women into trading. The regional stock

exchanges which were the way to route trades in the olden days, are now almost defunct with BSE

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http://www.indiainfoline.com/bisc/mdifm08.html

http://www.rediff.com/netguide/2002/jul/04broker.htm

http://nsdl.co.in/

and NSE ( NSE more than BSE) holding sway. Earlier investors were mostly from the bigger

cities. With online trading, it has opened avenues for investors from all parts of the country with an

internet connection. A few months ago, Businessworld India reported that:46 pct of the trades

were done by the top 100 brokers in 1996-97. Today it is about 64 pct. 90% of online trades are by

the top five in the business ICICI Web Trade (owner of ICICIdirect.com), Unicon Securities,

Indiabulls Securities and kotaksecurites

Going online via these professional services driven by technology is a great way to cut the

uncertainities caused by the middleman out of the business of share trading and make lives easier

for the investor. There will be more competition in this space as brokers try to take over accounts

of other brokers. More specialised and personalised services will be in the offing as the market

expands and as smaller brokers try to survive and evolve into niche players.

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4.1FACTS ABOUT ONLINE TRADING IN INDIA

Well online trading is a big business in any way and in any standards. With daily volumes of

Rs12000-15000 crore (on the BSE and NSE) in the cash segment and a volume of about Rs 30,000

– 35,000 crore in the derivative market, the size of the industry is around Rs 5,000 crore per annum

in terms of broking revenues. Meanwhile the online business too is booming. “Most retail brokers

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have realized that they need to provide alternate channels to customers for transaction,” Says

Venkataraman. Top Brokers like ICICI direct, HDFC Securities Kotak Securities, and India bulls

offer Internet and phone- based broking facilities.

With respect to the figures i.c.i.c.i direct has1, 000 outlets spread across 375 cities (compared to

400 two years ago), India bulls has 300 shops in over 110 cities and has210 offices spread across

95 cities and we plan to add another 150 offices in the coming year.

Realizing there is untapped market of investors who won’t to be able to execute their own trades

when it suits them, brokers have taken their trading rooms to the Internet. Known as online

brokers, they allow you to buy and sell shares via Internet.

There are 2 types of online trading service: discount brokers and full service online broker.

Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality

research, other don’t. Full service online brokerage is linked to existing brokerages. These brokers

allow their clients to place online orders with the option of talking/ chatting to brokers if advice is

needed. Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com,

Sharekhan.com, Geojit securities.com, HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of

the online broking sites in India.

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4.2INDIAN SCENARIO (SWOT ANALYSIS)

Strengths

The `do-it-yourself' framework of online share trading offers retail investors the three benefits of

transparency, access and efficiency. Paperwork diminishes significantly, and no more painful trips

to your broker to check if everything's in order. Online trading has made it possible to universalize

access to retail investors. This was earlier very difficult, as the cost of servicing often-outweighed

transaction volumes. Online brokerage ranges between 0.05-0.20 per cent of the value of

transactions for non-delivery-based trades, and between 0.25-0.95 per cent for delivery-based

trades. Once major investments in online infrastructure are over and done with - and with the

economies of scale coming into play - it is expected that brokerage rates would head further

downwards.

Access to online trading and latest financial happenings, apart from quotes and unbiased

investment analyses, all consolidate into a value-added product mix in tandem with evolving

markets that are freer and fairer. The Net result: An inquisitive, informed and demanding investor.

Today's investor is more involved in managing his or her assets and analyzing a vast array of

investment options. Technology and today's enabled investor have, in turn, driven competition,

resulting in reduced costs of trading, transparency in dealings, and pricing info that is accurate and

real-time. More and more investors now want to know how their trades are executed, and whether

they have received the best possible price. Critical components of execution quality include the

prices at which orders were executed as well as the speed of execution. The quality of execution, in

turn, hinges on efficient order routing. We owe this to our investor fraternity.

Weaknesses

Every thing in the world has a flip side to it - Transaction velocity is crucial. And more often than

not, connections are lousy. There's also a degree of investor skepticism about online payment and

settlement mechanisms in spite of all the encryption and fire walling brought into play. Time and

technology will soon assuage these concerns, which hark back to the `physical' days.

33

“The three main technology obstacles which have prevented Internet broking from taking off are:

Lack of Internet penetration

Bandwidth infrastructure

Poor quality of ISP infrastructure.”

Opportunities

You have some money to dabble with. Trading shares on BSE/NSE has always been your dream.

When will you ever find the time? And besides, the hassle of finding a broker is not easy. This is

your main opportunity.

Realizing there is untapped market of investors who want to be able to execute their own trades

when it suits them, brokers have taken their trading rooms to the Internet. Known as online

brokers, they allow you to buy and sell shares via Internet.

There are 2 types of online trading service: discount brokers and full service online broker.

Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality

research, other don’t. Full service online brokerage is linked to existing brokerages. These brokers

allow their clients to place online orders with the option of talking/ chatting to brokers if advice is

needed. Brokerage rates here are higher. 5Paisa.com, ICICIDirect.com, IndiaBulls.com,

Sharekhan.com, Geojit securities.com, HDFCsec.com, Tatatdw.com, Kotakstreet.com are some of

the online broking sites in India.

And daily trading turnover is estimated in the vicinity of 0.75 per cent of the combined BSE and

NSE daily turnover of about RS 11,000 crore!!! The point is, there's tremendous scope for growth.

Especially when you consider the US, where trading over the Net accounts for about 55 per cent of

the total volumes. And, I believe, in some Asian markets the figures as high as 70 per cent.

Threats

On to some threat perception - Domestic funds, foreign institutional investors and operators

comprise the three main market constituents. And all three include term investors as well as

34

opportunists in their pecking order. Some, for instance, hitch their fate with what the FIIs are up to.

All this spells spurting volumes. But nobody gives a damn about the resultant volatility. And some,

not all, offer free investment advice over the Net to lure rookie investors with misleading

information. Prices of scripts can also be influenced to the advantage of vested interests, courtesy

the Net. Unlike in the US, stockbrokers out here willingly (or under the force of circumstance)

assume the role of `advisors', sans the neutral, non-vested stance

35

4.3 INVESTING ADVICE

Factors to be kept in mind while selecting online brokers.

Brokerage cost: It is important to weigh up the subscription and trading costs charged by an

online broker against benefits offered by the site. All online brokers display their charges on their

sites. Some make sure you find the charges easily, while with others you will have to search a bit.

Safety: Please make sure site has 128-bit encryption to ensure safety of transaction online.

ICICIDirect.com, 5paisa.com are few sites with 128-bit encryption. You normally get a secured

Login id and password. It is always advisable to frequently change trading password. Ideally online

trading site should be fully integrated. The greater the backward integration, the better it is for the

customer. Ideally broking account, demat account and bank account should be linked

electronically.

Rate refresh: Rate refresh has to be real-time with no time lag. The speed and reliability comes

with huge investment in technology. It is always advisable to check rates of online broking sites

with BSE/ NSE terminal rates.

Speed of execution: System has to be fast and reliable that does just one job- executes your trades.

The last thing you need is a site that is heavily congested with the users who are downloading

heavy jpeg graphs or pulling the latest story why market is moving. The site should be one click

wonder where squaring off all your positions or canceling all your pending orders takes one click

and a confirmation of action.

Trading limit: For trading, all sites provide 4 times buy and sell limit against margin money put in

by customer. For delivery of shares, buying limit is equal to margin money put in by customer.

Couple of sites also provides margin funding for buying of shares.

Free trial period: Site should allow users free trial period to familiarize yourself with system

before you decide to become trading member of the site.

36

Intraday chart/ historical chart: Lot of people trade based on charting packages.Before you can

trade, you need to open an account and register as a trader as with online broking site. This

involves filling up trading account form, Demat account form and for faster transfer of money-

Internet enabled bank account. Please read terms and condition of each site before commencing to

deal with them. As per SEBI rule, Photo id proof and current address proof is a must for opening

trading account. Online share dealing on the Internet is now a way of life for thousands of

investors. 80% of South Korea and 30%-40% US trades are executed online. If you want to deal in

shares, there is no easier way

37

4.4HURDLES FOR ONLINE SHARE TRADING

1. Internet fraud

In India, we see this kind of frauds happening in different way due to nature of our society. Here

when you talk to broker's staff while buying or selling, he will usually advise you to buy share

which he has bought and plans to dump when price goes up.

We have seen enough of PUMP and DUMP even without help of internet in cases of Harshad

Mehta boom of 1992 and Ketan Parikh boom of 2000 (he even had cult following with Index of 10

shares called K-10).

Today lot of investor’s depending on TV channel for recommendation about stocks to sell, or buy

or hold. Channels like CNBS offer array of experts from economist to brokers to analyst. Most of

these people have vested interest in stocks they recommend and promote.

One of the most common forms of securities fraud on the Internet involves an imposter who

attempts to manipulate the price of a stock by disseminating phony press releases or information,

or creating phony websites. A recent example of this scheme is the hoax perpetrated against US

based, Pair Gain Technologies.

2. Volatility of India’s Stock Markets

Recent market developments have once more focused attention on the volatility that has come to

characterise India’s stock markets. Movements in the Sensex during the two years have clearly

been driven by the behaviour of foreign institutional investors (FIIs), who were responsible for net

equity purchases of as much as $6.6 and $8.5 billion respectively in 2003 and 2004. These figures

compare with a peak level of net purchases of $3.1 billion as far back as 1996 and net investments

by FIIs of just $753 million in 2002. In sum, the sudden FII interest in Indian markets in the last

two years account for the two bouts of medium-term buoyancy that the Sensex recently displayed.

38

Given the presence of foreign institutional investors in Sensex companies and their active trading

behaviour, their role in determining share price movements must be considerable. Indian stock

markets are known to be narrow and shallow in the sense that there are few companies whose

shares are actively traded. Thus, although there are more than 4700 companies listed on the stock

exchange, the BSE Sensex incorporates just 30 companies, trading in whose shares is seen as

indicative of market activity. This shallowness would also mean that the effects of FII activity

would be exaggerated by the influence their behaviour has on other retail investors, who, in herd-

like fashion tend to follow the FIIs when making their investment decisions.

3. Rampant Speculation

The Indian stock markets are perhaps the only place in the world where you can buy shares without

having to put money on the table and sell shares you do not own. This extraordinary situation has

facilitated rampant speculation by all sorts of operators – the indigenous variety, FIIs and even our

own native financial institutions (FIs) as the massive UTI scandal of recent years has

demonstrated. So, when the stock markets were made to collapse by a record 800-plus points on

May 17 under the pretext that the Left is opposed to divestment, the profits reaped by short sellers

were astronomical and incalculable.

Could this situation have been avoided? As aforesaid, the answer is yes. The electronic monitoring

system in both the Bombay Stock Exchange and the bigger National Stock Exchange automatically

stopped trading for half-an-hour when the two markets respectively collapsed by 10 percentage

points. Thereafter when trading resumed and the markets fell further to another stipulated lower

level, the electronic system automatically stopped all trading again for another two hours.

A similar situation had occurred on Tuesday, September 11, 2001, the day of the terrorist attacks in

New York City. At the end of the day the stock exchange authorities of both the New York Stock

Exchange and the heavily-weighted software exchange called NASDAQ suspended all trading for

the remainder three working days during that fateful week to safeguard investor interests. So,

advanced capitalism does know how to intervene "politically" in the markets when fundamental

interests are in danger of violation by short sellers.

39

40

5. DIFFERENT COMPETITORS

The major players in online trading

Religare securities ltd

Unicon investment solutions

Icici direct.com

India bulls

Kotak securities

5.1 Religare securities ltd. Account Operations

Account Opening:Nil

Annual maintianance charges:Rs 250

Documentation charges:Rs 60

Dematerilization

Demat Processing Charges:Rs 2 per certificate

Rematerialization

Rematerialization charges:Rs 20 per request•

Brokerage:

Intraday Trading 0.03% each side + All Taxes

Delivery 0.20% each side + All Taxes

(Negotiable based on volume)

Facilities Applied for:

Equity

Derivative

Depository

Trading Account type:

R-ALLY

R-ALLY Lite

R-ALLY Pro

41

5.2 unicon investment solution

Company Background

• Unicon investment solution is the entrepreneurial venture of Mr Gajendra Nagpal (founder and

C.E.O)

• Into broking since 3 years

• Focused on providing equity solutions to every segment

• Have a ground network of 90 branches all over India.

Online Account Types

•Unicon plus-web based

Unicon swift-software

Pricing for Retail Customers

Unicon swift

•Account Opening: Rs 600 (100+500+400)

•Demat 1st Yr: Rs 270

•Min Margin Retainable: Rs 1000

42

5.3 ICICI Direct

Company Background

ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of ICICI Bank

Limited and the Website is owned by ICICI Bank Limited

Account Types

•ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1 advantage.

Differentiated in services within the account

1. Cash on spot

2. Margin Plus

Premium trading interface of ICICIDirect Link is given to DBC partners and HNI’s

•Account Opening: Rs 750

•Schemes: For short periods Rs 750 is refundable against brokerage generated in a qtr. These

schemes are introduced 3-4 times a year.

•Demat: NIL, 1st year charges included in Account Opening Plus a facility to open additional 4

DP’s without 1st yr AMC

•Initial Margin: Nil

•Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes.

Delivery Vol per qtr Brokerage * Square Vol off p m Brokerage **

< 10 lakhs 0.75%

10 lakhs - 25 lakhs 0.70%

25 lakhs -50 lakhs 0.55%

50 lakhs – 1 Cr 0.45%

1 Cr – 2 Cr 0.35%

2 Cr – 5 Cr 0.30%

43

5.4 INDIABULLS

Company Background

India Bulls is a retail financial services company present in 70 locations Covering 62 cities. It

offers a full range of financial services and Products ranging from Equities to Insurance. 450 +

Relationship

Managers who act as personal financial advisors

Online Account Type

•Signature Account: Plain Vanilla Account with focus on Equity Analysis. The equity analysis is

a paid service even for A/c holders

•Power India bulls: Account with sophisticated trading tools, low commissions and priority

access to R.M

Pricing of IB Accounts

Signature Account


•Demat: Rs 200 if POA is signed, No AMC for this DP

•Initial Margin: NIL

•Brokerage: Negotiable

Power India Bulls


•Demat: Rs 200 if POA is signed, No AMC for this DP

•Initial Margin: NIL

•Brokerage: Negotiable

44

PAID Research

SCHEME FACILITY

WebBased-1-Month-500: View & Print on website

WebBased-1-Year-6000 View & Print on website

PrintReport-1-Month-750: View & Print on website + 10 Reports Delivered

PrintReport-1-Year-9000: View & Print on website + 10 Reports Delivered

5.5 kotak street

Company Background

Kotakstreet is the retail arm of kotak securities. Kotak Securities Limited is a joint venture between

Kotak Mahindra Bank and Goldman Sachs

Online Account Types

•Twin Advantage / Green Channel : 2 DP’s, Limit against shares

•Free Way: Flat Rs 999 Cover Charge p.m, 0.03% per transaction

•High Trader: 6 Times Exposure Cash & Derivatives, Auto sq off 2:55

•Cash Expressway : Spot payment, additional 0.5% charges

For Kotak FastLane / Keat Lite / Keat Desktop are trading interfaces.

Keat Desktop with advanced tools comes at a charge of Rs 500 p.m, Non-refundable

PRICING OF KOTAK


•Demat: Rs 22.5 p.m

•Initial Margin: Rs 5000(Compulsory)

•Min Margin Retainable: Rs 1000

•Brokerage Slab wise: Higher the volume, lower the brokerage. Even older customers (on 0.25%

& 0.40%)

45

6 Requirement for opening online account

46

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.

Depository participants offer dematerialization services to individual and corporate investors. We

in collaboration with globe capital market limited provides demat facilities to our valuables

customers, apart from a national network of branches, making our services quick, convenient and

efficient.

At RELIGARE, our commitment is to provide a

complete investment solution, which is simple,

safe and secure.

47

6.1 Documents required to opening of demat account:--

All investors have to submit their proof of identity and proof of address along with the prescribed account opening form.

Proof of Requirement for opening Demat a\c:

1. Identity: You can submit a copy of Passport, Voters ID card, Driving licence or PAN card with photograph.

2. Proof of address: You can submit a copy of Passport, Voters ID card, Driving licence, PAN card with photograph, Ration card or Bank passbook as proof of address. You must remember to take original documents to the DP for verification.

3. Passport-size photograph- The above are mandatory requirements as per SEBI. .

4 Cancalled cheque with Printed Name

48

ANALYSIS OF THE QUESTIONNAIRE

In which of these Financial Instruments do you invest into?

Frequency Percent

Valid Percent

Cumulative Percent

Valid Shares 70 67.3 67.3 67.3Mutual Funds

19 18.3 18.3 85.6

Bonds 6 5.8 5.8 91.3Others 9 8.7 8.7 100.0Total 104 100.0 100.0

49

Shares Mutual Funds Bonds Others

0

10

20

30

40

50

60

70

Frequency

70

19

69

Comments- This question was meant to closely study the pulse and investment pattern in the stock market. It is clearly evident that 70% of the sample size prefer to invest in the share market over other financial instruments.

Which type of trading do you prefer?

Frequency Percent Valid PercentCumulative Percent

Valid Online 77 74.0 74.0 74.0Offline 16 15.4 15.4 89.4Not Applicable

11 10.6 10.6 100.0

Total 104 100.0 100.0

50

Online

Offline

Not Applicable

0 20 40 60 80

Frequency

77

16

11

Comments- The result shows that online trading has taken the driver’s seat over the conventional trading ever since internet triggered a revolution across the globe.

If you prefer online trading then the reasons for it?


Valid Privacy 20 19.2 22.7 22.7User Friendly and time saving

27 26.0 30.7 53.4

Convenience 20 19.2 22.7 76.1All the above 21 20.2 23.9 100.0

51

Total 88 84.6 100.0

Missing System 16 15.4Total 104 100.0

Online

Offline

Not Applicable

0 20 40 60 80

Frequency

77

16

11

Comments- The preferred choice of online trading itself is a proven fact that most of them find it user friendly, time saving, convenient etc. Hence it does not come as a surprise as 20% of the sample size preferred all the three options.

What factors motivates you to invest in securities?

Frequency Percent Valid Percent Cumulative PercentValid New IPO's 25 24.0 24.0 24.0

9 8.7 8.7 32.7More returns in less time

63 60.6 60.6 93.3

Others 7 6.7 6.7 100.0Total 104 100.0 100.0

52

25

9

63

7

New IPO's

Entry of FII's

More returns in less time

Others

Comments – This question was meant to understand why more and more investors have started creeping in the share market as never before. About 3/5th of the sample size believed that there is a possibility in multiplying their money within a short period of time and about 1/4th of the sample population is driven by the IPO’s issued by potential companies.

Does online trading motivate you to deal in securities?

Frequency Percent Valid Percent Cumulative PercentValid Yes 84 80.8 80.8 80.8

No 20 19.2 19.2 100.0

Total 104 100.0 100.0

53

84

20

Yes

No

Comments-It is clear and transparent that online trading has become more convenient way to deal in securities as majority (as much as 85%) of the sample population voted for it.

Have you heard about Religare?


Valid

Yes

81 77.9 77.9 77.9

No 18 17.3 17.3 95.23 5 4.8 4.8 100.0Total 104 100.0 100.0

54

81

18

5

Yes

No

3

Comments –Out of the 100 people surveyed, Religare has its slice of share as it is familiar and popular among 80% of the sample population. Hence Religare is a well heard off name among the investors.

Which brokerage firm do you prefer for online trading?


Valid ICICI Direct 14 13.5 13.5 13.5

Religare 27 26.0 26.0 39.4

Indiabulls 23 22.1 22.1 61.5

Kotak Securities

21 20.2 20.2 81.7

Unicon 18 17.3 17.3 99.0

Others 1 1.0 1.0 100.0

55

Total 104 100.0 100.0

Comments- This question was framed to understand the effectiveness of Religare among its competitors. The push and pull factor worked out well for Religare it grabbed 27% of the market share out of the 100 people surveyed. But the survey also reveals an interesting point that there is not much variation among the players in terms of investors’ consideration for a brokerage firm.

What differentiates your share trading company from others?


Valid Brokerage 32 30.8 30.8 30.8

Research Report 51 49.0 49.0 79.8

Dial up Trade facility

8 7.7 7.7 87.5

Exposure 3 2.9 2.9 90.4

Account opening charges

7 6.7 6.7 97.1

Others 3 2.9 2.9 100.0

56

Total 104 100.0 100.0

BrokerageResearch Report

Dial up Trade facility Exposure

Account opening chargesOthers

0

10

20

30

40

50

60

Frequency

32

51

8

37

3

Comments- This question was framed to read the mind of an investor. The survey reveals that investors have become more analytical and rationale over the period of time as they have compelled themselves to take decisions on the basis of pre and post market research reports offered to them at regular intervals. Also to some extent investors look in for the brokerages charged by the trading firm while other options were hardly considered as pre requisites for online trading.

How often do you trade?


Valid Daily 53 51.0 51.0 51.0

Weekly 31 29.8 29.8 80.8

Monthly 7 6.7 6.7 87.5

Yearly 13 12.5 12.5 100.0

Total 104 100.0 100.0

57

Daily Weekly Monthly Yearly0

10

20

30

40

50

60

Fre

qu

en

cy

53

31

713

Comments- This shows how stock market has swept the nation as a whole. Most of the investors prefer daily and weekly trading to keep a watch on the volatility of the stock market so as to take decisions accordingly.

In which category does your income fall?(Per month in Rs)


Valid 0-15000 26 25.0 25.0 25.015000-35000

61 58.7 58.7 83.7

35000-60000

17 16.3 16.3 100.0

Total 104 100.0 100.0

58

0-15000

15000-35000

35000-60000

0 10 20 30 40 50 60 70

Frequency

17

61

26

Comments- People from different categories of income group have taken their chance to invest in the booming stock market. The upper middle and middle class (income category ranging from 15000 – 35000) people have taken the primary seat as far as the number of people involved in trading is concerned.

What percentage of your earnings do you invest in share trading?


Valid Up to 10% 39 37.5 37.5 37.5

Up to 25% 33 31.7 31.7 69.2

Up to 50% 13 12.5 12.5 81.7

Above 50% 14 13.5 13.5 95.2

5 5 4.8 4.8 100.0

Total 104 100.0 100.0

59

Up to 10% Up to 25% Up to 50% Above 50%

0

10

20

30

40

Frequency

40

34

15 15

Comments- About 70% of the sample size reveals that not more than 25% of their earnings will be pushed into the market which clearly signifies that how volatility in the stock market can influence the investors.

(i) Rank the attribute "customer service" of a share trading company?


Valid most Important 27 26.0 26.0 26.0

Important 24 23.1 23.1 49.0

Neutral 22 21.2 21.2 70.2

Less Important 18 17.3 17.3 87.5

Not Important at all

13 12.5 12.5 100.0

Total 104 100.0 100.0

60

most Important Important Neutral Less Important Not Important at all

0

5

10

15

20

25

30

Frequency

27

2422

18

13

Comments- Investors feel that they should be provided with the best of the services in order to associate themselves with a brokerage company over a long period of the time. Hence more than half of the sample size surveyed preferred it to be an important parameter of a brokerage firm.

(ii) Rank the attribute "proper guidance" of a share trading company?



Important 41 39.4 39.4 52.9

Neutral 24 23.1 23.1 76.0



4 3.8 3.8 100.0

61

Total 104 100.0 100.0

most Important

Important

Neutral

Less Important


0 10 20 30 40 50

Frequency

Comments- More than 50% of the sample population felt that they require proper guidance from the brokerage company in order to execute their operations effectively.

62

(iii) Rank the attribute "regular updates" of a share trading company?



Important 14 13.5 13.5 32.7

Neutral 17 16.3 16.3 49.0



18 17.3 17.3 100.0

Total 104 100.0 100.0

most Important Important Neutral Less Important Not Important at all0

10

20

30

40

Fre

qu

en

cy

20

1417

35

18

Comments- Surprisingly about 35 people out of the 104 surveyed thought that the regular updates provided by the company were not that important. Only 34 of the sample population felt the importance of regular market updates.

63

(iv) Rank the attribute "trustworthiness" of a share trading company?



Important 7 6.7 6.7 16.3

Neutral 28 26.9 26.9 43.3



34 32.7 32.7 100.0

Total 104 100.0 100.0

most Important Important Neutral Less Important Not Important at all

0

10

20

30

40

Frequency

107

2825

34

Comments- A mere 20% of the sample population do consider the significance of the trustworthiness of the brokerage company with whom they have been associated.

64

(v) Rank the attribute "brokerage charge" of a share trading company?



Important 15 14.4 14.4 49.0

Neutral 13 12.5 12.5 61.5



35 33.7 33.7 100.0

Total 104 100.0 100.0

most Important

Important

Neutral

Less Important


0 10 20 30 40

Frequency

35

5

13

15

36

Comments- The brokerage charges imposed on the investors makes a significant impact on 50% of the sample population whereas another 35 felt that this factor is of no significance at all

65

(i) Rank the company "Religare" according to the quality of service?


Valid Excellent 31 29.8 29.8 29.8

Very Good 24 23.1 23.1 52.9

Good 29 27.9 27.9 80.8

Average 17 16.3 16.3 97.1

Below Average

3 2.9 2.9 100.0

Total 104 100.0 100.0

Comments-More than half of the sample population was satisfied with the kind of service that Religare offers to its customers.

66

(ii) Rank the company "ICICI Direct" according to the quality of service?



Very Good 41 39.4 39.4 61.5

Good 22 21.2 21.2 82.7

Average 7 6.7 6.7 89.4

Below Average

11 10.6 10.6 100.0

Total 104 100.0 100.0

Excellent Very Good Good Average Below Average

0

10

20

30

40

50

Frequency

23

41

22

7

11

Comments-Even ICICI Direct had its share of slice; more than 80% of the sample population is satisfied with its service offering.

67

iii) Rank the company "INDIABULLS" according to the quality of service?


Valid Excellent 40 38.5 38.5 38.5Very Good 21 20.2 20.2 58.7Good 26 25.0 25.0 83.7Average 12 11.5 11.5 95.2Below Average

5 4.8 4.8 100.0

Total 104 100.0 100.0

Excellent Very Good Good Average Below Average0

10

20

30

40

Fre

quency

Comments-Even India Bulls joined the rat race as a handsome 75 members opted for India Bulls in this regard.

68

(iv) Rank the company "Kotak Securities" according to the quality of service?



Very Good 13 12.5 12.5 19.2

Good 24 23.1 23.1 42.3

Average 52 50.0 50.0 92.3

Below Average

8 7.7 7.7 100.0

Total 104 100.0 100.0


0

10

20

30

40

50

60

Fre

quency

713

24

52

8

Comments-Kotak Securities was viewed as a low quality service provider as a mere 20 people voted in favour of this company as far as service offering was concerned.

69

(v) Rank the company "Unicon Securities" according to the quality of service?

Comments- Unicon Securities Is viewed as a Good quality service provider as large chunk of people voted in favour of this company as far as service offering was concerned.

70

Frequency Percent Valid PercentCumulative

PercentValid

Excellent 43 41.3 41.4 41.4

Very Good 22 21.1 21.2 65.6

Good 15 14.4 14.4 80

Average 13 12.5 12.5 92.5

Below Average

11 10.5 10.5 100.0

Total 104 100.0 100.0

05

101520253035404550

Excellent Very Good Good Average BelowAverage

frequency

Series1

(v) Rank the company "OTHERS" according to the quality of service?



Very Good 5 4.8 4.8 7.7

Good 6 5.8 5.8 13.5

Average 16 15.4 15.4 28.8

Below Average

74 71.2 71.2 100.0

Total 104 100.0 100.0


0

20

40

60

80

Fre

qu

en

cy

74

16

653

Comments-This result was very much predicted as other brokerage firms are still viewed as a low quality service providers as a bulk of them (about 75) were not in their favour.

71

Limitations:-

The various Limitations are:--

Lack of awareness of Stock market :-- Since the area is not known before it takes lot of

time in convincing people to start investing in shares primarily in IPO’s.

Mostly people feel comfortable with traditional brokers: -- Some people prefer to trade

with the help of traditional brokers who have fairly good knowledge of the market, so its

really tough to break the norms.

Lack of Techno Savy people and poor internet penetration: -- Since most of the people

are not techno savy and also due to poor internet penetration in India, convincing people to

trade online was a difficult task to achieve.

Some respondents are unwilling to talk: -- Some respondents either did not have time or

were not willing to respond.

Inaccurate Leads :-- Sometimes leads which were provided had inaccurate numbers.

Misleading concepts:-- Some people think that Shares are too risky and just another name

of gamble but they don’t know its not at all that risky for long investors.

72

Conclusion

Indian economy has been globalized and the capital market has been linked to the international

financial market. Foreign individuals and institutional investors have encouraged participating into

it. So, there is a need for raising the Indian Capital market in to the international standards in terms

of efficiency and transparency. One such measure is the passing out of the Depository Act during

the year 1996.

Dematerialization of securities and under this system is one of the major steps aimed at improving

and modernizing the capital market and enhancing the levels of investor’s protection measures

which aims at eliminating the bad deliveries and forgery of shares and expediting the transfer of

shares.

The draw back of the old system and the pool proof measures sought to improve efficiency in

transfer and transparency standards prompted to evaluate the functioning of the dematerialization

process and to focus on the 8developments of the depository system in the Indian capital market.

The study showed that there is a growth in the shares included in the dematerialization process

both in terms of volume of shares and value of shares.

Internet triggered a revolution across the globe as it was regarded as the next big thing in the

universe. Internet has come off age making work easier than ever before; similarly online trading

of shares is gaining momentum at a healthy rate as Internet penetration in India is on all time high.

So online trading would become the order of the day, taking over the traditional norms in the years

to come.

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QUESTIONNAIRE

Q1. In which of these Financial Instruments do you invest into?

(i) Shares (ii) Mutual Funds (iii)Bonds (iv) Others

Q2. Which type of trading you prefer?

(i) Online (ii) Offline (iii) Not Applicable

Q3. If you prefer Online Trading then the reasons for it?

(i) Privacy (ii) User friendly & Time Saving(iii) Convenience (iv) All The Above

Q4. What factors motivates you to invest in securities?

(i) New IPO’s (ii) Entry of FII’s (iii) More returns in less time (iv) Others

Q5. Does online trading system motivate you to deal in securities?

(i) Yes (ii) No

Q6. Have you heard about Religare?

(i) Yes (ii) No

Q7. Which Brokerage Firm do you prefer for Online Trading?

(i) ICICI Direct (ii) religare (iii) India bulls(iv)kotak Securities (v) hdfc securities (vi) Any other__________

Q8. What differentiates your Share Trading company from others?

(i)Brokerage (ii) Research Report (iii) Dial up trade facility(iv)Magazine (v) Exposure (VI) Account opening charges

(vii)Others

Q9. How often do you trade?

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(i) Daily (ii) Weekly (iii) Monthly (iv) Yearly

Q10. In which category does your income fall? (Per month in Rs)

i) 0-15000 ii) 15000 – 35000 iii) 35000 – 60000 iv) Above 60000

Q11. What percentage of your earnings do you invest in share trading?

(i)Up to 10% (ii) Up to 25% (iii) Up to 50% (iv) Above 50%

Q12. According to your preference rank the attributes of a share trading company.(1=Most Important, 5= Not Important at all)

1. Customer Service ____2. Proper Guidance ____3. Regular Updates ____4. Trustworthiness____5. Brokerage Charges_____

Q13. Rank these share trading companies according to the quality of service they provide.(1=Excellent, 5= Very poor)a)Religare( ) b)Kotak securities( ) c)H D F C( )

d)India bulls ( ) e)Others( )

Personal InformationName: _____________________

Age ; _____________________

Sex: Male Female

Phone No: _____________________

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a. Religareb. Kotak securitiesc. Hdfc securitiesd. India bullse. Others(Please Specify)

Bibliography

Securities Market (Basic) Module :--NCFM

Economic Times.

Training Kit Provided by the RELIGARE

Websites:

www.equitymaster.com

www.investopedia.com

www.valuenotes.com

www.google.com

www.indiainfoline.com

www.indiabulls.com

www.kotak.com

www.nsdl.com

www.nseindia.com

www.bseindia.com

www.sebi.gov.in

Magazines and Journals:

Times of India

Business Today

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http://www.sebi.gov.in/

http://www.bseindia.com/

http://www.nseindia.com/

http://www.nsdl.com/

http://www.kotak.com/

http://www.indiabulls.com/

http://www.indiainfoline.com/

http://www.google.com/

http://www.valuenotes.com/

http://www.investopedia.com/

http://www.equitymaster.com/

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