Lal Project...

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BACHELOR OF BUSINESS ADMINISTRATION

Major project on

INVESTOR PREFERENCE FOR ONLINE TRADING

AT

SHAREKHAN Ltd.

IN PUNEBatch: 2009-2012

Submitted By: PROJECT GUIDELal krishnan Ms. Vaishali

TRINITY INSTITUTE OF PROFESSIONAL STUDIES(Affiliated to Guru Gobind Singh Indraprastha University, Delhi)

Sector 9, Dwarka Institutional Area, Dwarka, New Delhi 110075
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CERTIFICATE

TO WHOM SO EVER IT MAY CONCERN

This is to certify that the project workPERFORMANCE EVALUATION OF MUTUAL

FUNDS IN INDIA & ITS AWARENESS AMONG THE INVESTORS made byMamta

Khowal, BBA (B&I),1st shift, enrollment no- 05420601809 is an authentic work carried out

by her under guidance and supervision of ms. vaishali.

The project report submitted has been found satisfactory for the partial fulfillment of the

degree of Bachelor of Business Administration.

Project Supervisor

Signature

Name

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ACKNOWLEDGEMENT

It is in particular that I am acknowledging my sincere feeling towards my mentors who

graciously gave me their time & expertise.

They have provided me with the valuable guidance, sustained efforts and friendly approach.

It would have been difficult to achieve the results in such a short span of time without their

help.

I deem it may duty to record my gratitude towards the Vaishali mam who devoted her

precious time to interact, guide and gave me the right approach to accomplish the task and

also helped me to enhance my knowledge and understanding of the project.

Signature

Lal krishnan

05820601809

BBA(B&I)

VIth Semester, 1st shift

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DECLARATION

I hereby declare that the following documented project report tittle PERFORMANCE

EVALUATION OF MUTUAL FUNDS IN INDIA & ITS AWARENESS AMONG THE

INVESTORS is an original & authentic work done by me for the partial fulfillment of

Bachelor of Business Administration degree program.

I hereby certify that all the Endeavour put in the fulfillment of the task are genuine & original

to the best of my knowledge and I have not submitted it earlier elsewhere.

Signature

Mamta Khowal

BBA(B&I)

VIth semester, 1st Shift

05420601809

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7 THEORETICAL PERSPECTIVE 41

8 SWOT ANALYSIS 44

8.1 STRENGTH 45

8.2 WEAKNES 45

8.3 OPPORTUNITY 45

8.4 THREATS 45

9 RESEARCH METHODOLOGY 46

9.1 DEFINES THE PROBLEM 47

9.2 DEVELOPING RESEARCH PLAN 47

9.3 DATA SOURCE 47

8.4 RESEARCH APPROACH 49

9.5 SAMPLING 49

9.6 SAMPLING PLAN 49

9.7 STATEMENT OF PROBLEM 50

10 DATA ANALYSIS 51

10.1 INVESTMENT OPTION 52

10.2 BRAND AWARENESS 53

10.3 IS ONLINE TRADING EASY? 5410.4 DO YOU NEED TRANNING 55

10.5 SOURCES OF ADVERTISEMENT 56

10.6 WHICH IS BETTER, NSE OR BSE 57

10.7 AWARENESS OF E-BROKING 58

10.8 KNOWLEDGE THROUGH COMPANY WEBSITE 59

10.9 VISIT BY COMPANY REPRESENTIVE 60

10.10 INTEREST IN E-BROKING 61

10.11 PEFERRED SYSTEMS OF SHARE TRADING 62

10.12 TRADITIONAL-INFLUENCING FACTORS 63

10.13 PREFERENCE FOR INVERTMENT 64

10.14 INFLUENCING FACTOR 65

10.15 FUTURE PLANNING FOR ONLINE TRADING 66

10.16 REASONS FOR NOT ENTERING IN TO E-BROKING 67

11 FINDING AND OBSERVATION 68

12 LIMITATIONS 70

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13 SUGGESTIONS AND RECOMMENDATIONS 7214 CONCLUSION 74

15 ANNEXURE 76

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CHAPTER: 1

EXECUTIVE SUMMARY

1.1 COMPANY: - SHAREKHAN LTD.

1.2 PROJECT TITLE:-

INVESTORS PREFERENCE FOR ONLINE TRADING.

1.3 SCOPE OF THE PROJECTThe research has been conducted within the geographical area of PUNE city. I have targeted

students, businessmen, and other people.

1.4 OBJECTIVE

The objective behind conducting this project is as followed:-

PRIMARY OBJECTIVE

To find out the people who are willing to be an agent for SHAREKHAN LTD.

To find potential customer of SHAREKHAN LTD. who involved in trading activities

and generate the business for SHAREKHAN LTD.

SECONDARY OBJECTIVE

To know and understand the thinking and perception of different people about D-mat

account and online trading account and share market

To see the interest of people for SHAREKHAN LTD.

To create the image about SHAREKHAN financial product.

Promotion of the product.

For conducting the research the data was collected through-

1-Primary Data

2- Secondary Data

PRIMARY DATA :- Primary data is the data which is actually collected from the field it is

a fresh data which is not used by anybody.

Primary data was collected using the following techniques-

# Questionnaire Method

# Direct Interview Method# Observation Method

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The main tool used was the questionnaire method. Further direct interview method, where

face to face formal interview was taken. Lastly observation method was used continuously

with the questionnaire method.

SECONDARY DATA :- It is the second hand data it used by the other person

before we use it. This data has been published in magazine, News Paper and Websites.

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CHAPTER: 2

COMPANY PROFILE

Sharekhan is one of the top retail brokerage houses in India with a strong online

trading platform. The company provides equity based products (research, equities,

derivatives, depository, margin funding, etc.) through its pan India presence of 200 branches

and 310 franchises across 170 cities. Sharekhan was established by Morakhia family -in

1999-2000 and Morakhia family, continues to remain the largest shareholder.

Sharekhan is one of the leading retail broking brands in the country. It is the retail

broking arm of the Mumbai-based SSKI Group. With a legacy of more than 80 years in the

stock markets, the SSKI group ventured into institutional broking and corporate finance over

a decade ago. Presently SSKI is one of the leading players in institutional broking and

corporate finance activities. Sharekhan offers its customers a wide range of equity related

services including trade execution on BSE, NSE, Derivatives. Depository services, online

trading, Investment advice, Commodities, etc.

The Company's online trading and investment site - www.Sharekhan.com - was

launched on Feb 8, 2000. The site gives access to superior content and transaction facility to

retail customers across the country. Known for its jargon-free, investor friendly language and

high quality research, the content-rich and research oriented portal has stood out among its

contemporaries because of its steadfast dedication to offering customers best-of-breed

technology and superior market information.

Sharekhan's management team is one of the strongest in the sector and has positioned

Sharekhan to take advantage of the growing consumer demand for financial services products

in India through investments in research, pan-Indian branch network and an outstanding

technology platform. Further, Sharekhan's lineage and relationship with SSKI Group provide

it a unique position to understand and leverage the growth of the financial services sector.

SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment

bank with strong research-driven focus. Company team members are widely respected for

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their commitment to transactions and their specialized knowledge in their areas of strength.

The team has completed over US$5 billion worth of deals in the last 5 years - making it

among the most significant players raising equity in the Indian market. SSKI, a veteran

equities solutions company with over 8 decades of experience in the Indian stock markets.

If you experience Company profile, content or for that matter the online trading

facility, you'll find a common thread; one that helps you make informed decisions and

simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all

about!

"Sharekhan has always believed in collaborating with like-minded Corporates into

forming strategic associations for mutual benefit relationships" saysJaideep Arora, Director

- Sharekhan Limited.

2.1 SERVICES PROVIDED BY SHAREKHAN

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2.2 PRODUCT PROFILE

SHAREKHAN is one of the leading Depository Participants (DP) in the country with over 8

Lac demat accounts. SHAREKHAN Demat services offers you a secure and convenient way

to keep track of your securities and investments, over a period of time, without the hassle of

handling physical documents that get mutilated or lost in transit. SHAREKHAN is

Depository participants both with -National Securities Depositories Limited (NSDL) and

Central Depository Services Limited (CDSL).

2.3 TWO IN ONE ACCOUNT:-

SHAREKHA is providing 2-in- 1 account to its customer i.e.

1) Demat Account

2) Online Trading Account

D-MAT ACCOUNT :-

It is called as demateralised account. It is used for keeping share in our account .

After placing order to BSE or NSE for share , the share transfer to your D-mat account

And amount price of that share you purchased deducted from your saving account.

D-mat account is used for holding share for particular period .

FEATURES & BENEFITS

As opposed to the earlier form of dealing in physical certificates with delays in transaction,

holding and trading in Demat form has the following benefits :

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Settlement of Securities traded on the exchanges as well as off market transactions.

Shorter settlements thereby enhancing liquidity.

Pledging of Securities.

Electronic credit in public issue.

Auto credit of Rights / Bonus / Public Issues / Dividend credit through ECS.

Auto Credit of Public Issue refunds to the bank account.

No stamp duty on transfer of securities held in demat form.

No concept of Market Lots.

Change of address, Signature, Dividend Mandate, registration of power of attorney,

transmission etc. can be effected across companies held in demat form by a single

instruction to the Depository Participant (DP).

2.4 ONLINE TRADING ACCOUNT:-

Online trading account is used for purchasing the share or to sale the share of particular

company.

It is provided for Rs.700 to the customer .

Normal plan is also available at Rs.299.

Client has to give the cheque on name of SHAREKHAN LTD.

ONLINE TRADING CONCEPT

2.5 PROCESS OF ONLINE TRADING

For online trading SHAREKHAN provides ID and password to client so that client can easily

do login on sharekhan .com for online trading.

Client gives the order through online trading account to purchase the share of particular

company. The order goes to BSE or NSE. Order is executed and share of particular companycompany comes to client D-MAT account where he hold the share until price of share rise.

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2 IN 1 ACCOUNTONLINE

TRADING

ACCOUNT

D-MAT

ACCOUNT


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As the share come to client D-mat account the cost amount is deducted from client saving

account. When client want to sell his share he give the order through online trading account.

Share is sell through his D-mat account And money get deposited in his saving account.

INTRA DAY TRADING

In intra day trading the share is purchase and sale on the same day. The share market starts at

9.50 a.m. and close at 3.30 p.m. if the client purchases the share and prices of share rise then

he can sell his share and he will get the profit. If the prices of share fall down then he will be

in loss. If client purchases the share and he does not sell it at market closing time then the

share automatically sell i.e. called square off. If price of share is high then client will get

profit and price of share fall down the customer will be in loss at time of square off.

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CHAPTER: 3FINANCIAL SYSTEM OVERVIEW

3.1 FINANCIAL SYSTEM- AN OVERVIEW:

The financial system of any country consists of specialized and non-specialized

financial institutions, organized and unorganized financial markets, financial instruments and

services that facilitate flow of funds from areas of surplus funds to the areas of deficit.

Financial system is a composition of various institutions, markets, regulations, law practices,

money managers, analysts, etc. By making funds available, the financial system helps the

growth of modern economics and the increase in the standard of living among the citizens.

3.2 FINANCIAL MARKETS:

A financial market can be defined as the market in which financial assets are created

or transferred. Financial assets represents represent a claim to the payments of a sum of

money sometime in the future and/or periodic payment in the form of interest or dividend.Financial Market performs an important function of mobilization of savings and channeling

them into the most productive uses. The participants in the financial markets are financial

institutions, agents, brokers, dealers, borrowers, lenders, savers and others who are inter-

linked by the laws, contracts and communication networks.

Financial markets consist ofPrimary and SecondaryMarkets. The Primary markets

deal in new financial claims and securities and hence are known as new issue markets. The

secondary market deals in securities already issued, existing or outstanding. Financialmarkets are also classified as Money and Capital Markets. Money markets deals with

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transactions in short-term instruments (with period of maturity one year or less, e.g. treasury

bills), while capital market deals with transactions in long-term instruments (with period of

maturity above one year, e.g. corporate debentures and government bonds).

On the basis of the type of the financial claim, financial markets are classified as Debt and

Equity markets. By the timing of delivery, financial markets are classified as Cash or Spot

markets and Forward or Future markets.

The classification of Financial markets can be summarized as follows:

o Money Market

o Debt Market

o Forex Market

o Capital Market.

MONEY MARKETS:

Money markets can be defined as a market for short term money and financial assets

that are near substitutes for money (any financial assets that can be quickly converted into

money with minimum transaction cost). One more important function of this market is to

channel savings into short term productive investments like working capital. Money market

aids banking, operates as a medium of integration between sub markets, promotes

maintaining of minimum reserve in the form of cash and liquidity and controls the interest

rates.

Money market is a collection of market for the instruments like Call money, Treasury

bills, Commercial papers, Certificate of deposits, Money Market Mutual Funds, etc. A certain

degree of flexibility in the regulatory framework exists and there are constant endeavors for

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introducing a new instruments or innovating dealing techniques. It is a wholesale market and

the volume of funds or financial assets traded are very large i.e. in crores of rupees.

ORGANIZED MONEY MARKET: Indian financial system consists of money

market and capital market. The money market has two components - the organized and the

unorganized. The organized market is dominated by commercial banks. The other major

participants are the Reserve Bank of India, Life Insurance Corporation, General Insurance

Corporation, Unit Trust of India, Securities Trading Corporation of India Ltd., Discount and

Finance House of India, other primary dealers, commercial banks and mutual funds. The core

of the money market is the inter-bank call money market whereby short-term money

borrowing/lending is effected to manage temporary liquidity mismatches. The Reserve Bank

of India occupies a strategic position of managing market liquidity through open market

operations of government securities, access to its accommodation, cost (interest rates),

availability of credit and other monetary management tools. Normally, monetary assets of

short-term nature, generally less than one year, are dealt in this market.

UN-ORGANIZED MONEY MARKET: Despite rapid expansion of the organized money

market through a large network of banking institutions that have extended their reach even to

the rural areas, there is still an active unorganized market. It consists of indigenous bankers

and moneylenders. In the unorganized market, there is no clear demarcation between short-

term and long-term finance and even between the purposes of finance. The unorganized

sector continues to provide finance for trade as well as personal consumption. The inability of

the poor to meet the creditworthiness requirements of the banking sector make them take

recourse to the institutions that still remain outside the regulatory framework of banking. But

this market is shrinking.

FOREIGN EXCHANGE MARKET:

Every sovereign country in the world has a currency, which is a legal tender in its

territory, and which does not act as money outside its boundaries. Foreign exchange or Forex

market is the one where a countrys currency is traded for another. The rate at which one

currency is converted to another is known as the rate of exchange. Forex market is the largest

financial market in the world having a daily turn over of couple of trillion dollars. The key

participants in the Forex market are importers (who need foreign currency to pay off their

imports), exporters (who want to convert their foreign currency receipts into domestic),

traders (who make a market in the foreign currency), foreign exchange brokers (who bring

together buyers and sellers), speculators (who tries to profit from exchange rate movements)

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and portfolio managers who buy and sell foreign currency. Speculative transactions account

for more than 95% of the turnover on the Forex markets.

In India, the key participants in the Forex markets are RBI, banks and business

undertakings. Business undertakings can participate in the Forex market only to the extent

that they need cover for the exchange exposure arising from a merchant transaction or a

foreign currency borrowing and cannot resort to speculative transaction. One reason justified

for the existence of the Forex market is that each nation has decided to keep their sovereign

right to have control on their own currency. If every country had the same currency, then

there will be no need for a foreign exchange market.

CAPITAL MARKETThe function of the financial market is to facilitate the transfer of funds from surplus

sectors (lenders) to deficit sectors (borrowers). Normally, households have investible funds or

savings, which they lend to borrowers in the corporate and public sectors whose requirement

of funds far exceeds their savings. A financial market consists of investors or buyers of

securities, borrowers or sellers of securities, intermediaries and regulatory bodies. Financial

market does not refer to a physical location. Formal trading rules, relationships and

communication networks for originating and trading financial securities link the participants

in the market.

Capital markets provide the resources needed by medium and large-scale industries

for investment purposes unlike money markets that provide the resources for working capital

needs. While money markets deal in short-term claims (with a period of maturity 1 year or

less) capital market deals in long-term claims (with a period of maturity more than 1 year).

Stock market and Government bond markets are example of capital markets.

Capital market consists of primary and secondary markets. The primary markets

create long-term instruments through which corporate entities borrow and the secondary

market provides liquidity and marketability to these instruments. Companies can raise capital

in the primary market through the issue of shares and debentures for which prior approval of

The SEBI is required. The secondary market that operates through the medium of stock

exchanges is that segment of the capital market where securities already issued are traded.

The primary market in which public issue of securities is made through a prospectus is a retail

market and there is no physical location. Offer for subscription to securities is made to

investing community. The secondary market or stock exchange is a market for trading and

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settlement of securities that have already been issued. The investors holding securities sell

securities through registered brokers/sub-brokers of the stock exchange. Investors who are

desirous of buying securities purchase securities through registered broker/sub-broker of the

stock exchange. It may have a physical location like a stock exchange or a trading floor.

Since 1995, trading in securities is screen-based and Internet-based trading has also made an

appearance in India. The secondary market consists of 22 stock exchanges. The secondary

market provides a trading place for the securities already issued, to be bought and sold. It also

provides liquidity to the initial buyers in the primary market to re-offer the securities to any

interested buyer at any price, if mutually accepted..

CAPITAL MARKET PARTICIPANTS: There are several major players in the primary

market.These include the merchant bankers, mutual funds, financial institutions, foreign

institutional investors (FIIs) and individual investors. In the secondary market, there are the

stock exchanges, stock brokers (who are members of the stock exchanges), the mutual funds,

financial institutions, foreign institutional investors (FIIs), and individual investors. Registrars

and Transfer Agents, Custodians and Depositories are capital market intermediaries that

provide important infrastructure services for both primary and secondary markets.

3.3 COMPONENTS OF CAPITAL MARKET:Following are the three main components of capital market:

1. New Issue Market

2. Financial Institutions

3. Stock Market

1. NEW ISSUE MARKET

The new issue market represents the primary market where new securities, i.e. shares

or bonds that have never been previously issued, are offered. Both the new companies and the

existing ones can raise capital on the new issue market. The prime function of new issue

market is to facilitate the transfer of funds from willing investors to the entrepreneurs setting

up new corporate enterprise or going for expansion, diversification, growth or modernization.

Besides, the helping corporate enterprise in securing their funds, the new issue market

channelises saving of individuals and others into investors.

Issuing companies and the investors respectively represents the two facets of this

market, i.e. supply and demand. Also there is participation of intermediaries, which help, in

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selling, transferring, underwriting etc. These agencies include financial institution,

underwriters, brokers, merchant bankers, etc.

It must be noted that although the functions and organization of new issue market are

quiet different from that of the secondary (stock) market, the sentiment in the stock market

influence the activity of new issue market.

Successful issue of new securities is a highly specialized activity and requires both

experience and skill. There are number of methods of marketing new issue of securities. And

the choice of method selection depends upon number, character and sentiment of prospective

buyers.

2. FINANCIAL INSTITUTIONS

Specialized Financial Institutions are the most active constituent of the Indian Capital

Market. Such organizations provide medium and long-term loans on easy installments to big

business house. Such institutions help in promoting new companies during economic

depressions.

The need for establishing financial institutions was felt in many countries immediately

after the Second World War to reestablish war-shattered economies. Need for such institution

was more in underdeveloped countries.

Following are the main special financial institutions that are most active constituents

of the Indian Capital Market.

1. The industrial Finance Corporation of India. (I.F.C.I)2. The Industrial Credit and Investment Corporation of India. (I.C.I.C.I)3. The Refinance Corporation of India. (R.F.C.)4. State Financial Development Corporation. (S.F.Cs.)5. National Industrial Development Corporations. (N.I.D.C.)6. State Industrial Development Corporations. (S.I.D.Cs.)7. National Small Industries Corporations. (N.S.I.C.)8. Industrial Development Bank of India. (I.D.B.I.)9. Unit Trust of India. (U.T.I.)10. Life Insurance Corporation of India. (L.I.C.)11. Nationalized Commercial Banks. (N.C.B.)12. Merchant Banking Institutions. (M.B.Is.)

3. STOCK MARKET

Capital Market also includes Stock market. It is a place where securities which have

been issued the past are traded. It is a secondary market. In stock market the participants are

Stock Exchanges, Brokers and the investors. The investors want liquidity of their

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investments. The securities, which they hold, should be easily sold when they need cash.

Similarly there are others who want to invest in new securities. So there should be a place

where securities should be purchased and sold. Stock exchange provides such a place where

securities of different companies can be purchased and sold via stock market.

One can trade in stock market two ways:

1. On Market

2. Off Market

In On market trading is done via stock exchanges, where the buyer and seller dont know

each other. But one can also trade Off market without the interference of stock exchange may

be through stock broker or not. For example: Raja and Gandhi are neighbors, Raja wants to

Sell the shares of Zodiac JRD, which he holds and Gandhi is ready to buy them at that price

they can enter into contract off market.

DEBT MARKET:

Traditionally debt instruments are known for generating a predetermined income for a given

period of time, other than in cases of default. Hence they are also known as fixed income

instruments. The debt markets in advanced are significantly larger and deeper than equity

markets. But in India, the trend is just the opposite. The development of debt market in India

has not been as remarkable as in the equity market. However the debt markets in India have

undergone a considerable change in the last few years. Characterized by regulated interest

rates, limited players and lack of trading earlier, the markets have become more integrated

and less regulated. The debt market in India is divided into two categories:

o Government securities market consisting of Central Government and State

Government securities.

o Bond market consisting of FI bond, PSU bonds and Corporate bonds/debentures.

3.4 PRIMARY AND SECONDARY MARKET:

There are two ways for investors to get shares from the primary and secondary markets. In

primary markets, securities are bought by way of public issue directly from the company. In

Secondary market share are traded between two investors.

PRIMARY MARKET

Market for new issues of securities, as distinguished from the Secondary Market,

where previously issued securities are bought and sold.A market is primary if the proceeds of

sales go to the issuer of the securities sold.This is part of the financial market where

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enterprises issue their new shares and bonds. It is characterized by being the only moment

when the enterprise receives money in exchange for selling its financial assets.

Stocks available for the first time are offered through new issue market. The issue may be a

new company or an existing company. These issues may be of new type or the security used

in the past. In the new issuing houses, investment bankers act as the channel of distribution

for the new issues. They take responsibility of selling the stocks to the public.

THE FUNCTION OF PRIMARY MARKET:

The main service functions of the primary market are origination, under writing and

distribution. Origination deals with the origin of the view issue. The proposal is analyzed in

terms of the nature of security, the size of issue, timing of the issue and floatation method of

issue. Underwriting contract makes the shares predictable and removes the elements of

uncertainty in the subscription. Distribution refers to the sale of the securities to the investors.

This is carried out with the help of the lead manager and broker to the issue.

IPO INITIAL PUBLIC OFFERING

Public issues can be classified into Initial Public offerings and further public

offerings. In a public offering, the issuer makes an offer for new investors to enter its

shareholding family. The issuer company makes detailed disclosures as per the DIP

guidelines in its offer document and offers it for subscription. Initial Public Offering (IPO) is

when an unlisted company makes either a fresh issue of securities or an offer for sale of its

existing securities or both for the first time to the public. This paves way for listing and

trading of the issuers securities.

IPO is new shares Offered to the public in the Primary Market .The first time the

company is traded on the stock exchange. A prospectus is issued to read about its risk before

investing. IPO is a company's first sale of stock to the public. Securities offered in an IPO areoften, but not always, those of young, small companies seeking outside equity capital and a

public market for their stock. Investors purchasing stock in IPOs generally must be prepared

to accept very large risks for the possibility of large gains. Sometimes, just before the IPO is

launched, Existing share Holders get very liberal bonus issues as a reward for their faith in

risking money when the project was new.

SECONDARY MARKET

The market where securities are traded after they are initially offered in the primary

market. Most trading is done in the secondary market. To explain further, it is Trading in

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previously issued financial instruments. An organized market for used securities. Examples

are the New York Stock Exchange (NYSE), Bombay Stock Exchange (BSE),National Stock

Exchange NSE, bond markets, over-the-counter markets, residential mortgage loans,

governmental guaranteed loans etc.The secondary market is the financial market for trading

of securities that have already been issued in an initial private or public offering.

Alternatively, secondary marketcan refer to the market for any kind of used goods. The

market that exists in a new security just after the new issue, is often referred to as the

aftermarket. Once a newly issued stock is listed on a stock exchange, investors and

speculators can easily trade on the exchange, as market makers provide bids and offers in the

new stock.

3.5 PRODUCTS DEALT IN SECONDARY MARKET

EQUITY: The ownership interest in a company of holders of its common and preferred

stock. The various kinds of equity shares are as follows

EQUITY SHARES: An equity share, commonly referred to as ordinary share also represents

the form of fractional ownership in which a shareholder, as a fractional owner, undertakes the

maximum entrepreneurial risk associated with a business venture. The holders of such shares

are members of the company and have voting rights. A company may issue such shares withdifferential rights as to voting, payment of dividend, etc.

RIGHTS ISSUE/ RIGHTS SHARES: The issue of new securities to existing shareholders

at a ratio to those already held.

BONUS SHARES: Shares issued by the companies to their shareholders free of cost by

capitalization of accumulated reserves from the profits earned in the earlier years.

PREFERRED STOCK/ PREFERENCE SHARES: Owners of these kind of shares are

entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before

dividend can be paid in respect of equity share. They also enjoy priority over the equity

shareholders in payment of surplus. But in the event of liquidation, their claims rank below

the claims of the companys creditors, bondholders / debenture holders.

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http://en.wikipedia.org/wiki/Financial_marketshttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Investorhttp://en.wikipedia.org/wiki/Speculationhttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Security_(finance)http://en.wikipedia.org/wiki/Stockhttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Investorhttp://en.wikipedia.org/wiki/Speculationhttp://en.wikipedia.org/wiki/Market_makerhttp://en.wikipedia.org/wiki/Financial_markets


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CUMULATIVE PREFERENCE Shares. A type of preference shares on which dividend

accumulates if remains unpaid. All arrears of preference dividend have to be paid out before

paying dividend on equity shares.

CUMULATIVE CONVERTIBLE PREFERENCE SHARES: A type of preference

shares where the dividend payable on the same accumulates, if not paid. After a specified

date, these shares will be converted into equity capital of the company.

PARTICIPATING PREFERENCE SHARE: The right of certain preference shareholders

to participate in profits after a specified fixed dividend contracted for is paid. Participation

right is linked with the quantum of dividend paid on the equity shares over and above a

particular specified level.

SECURITY RECEIPTS: Security receipt means a receipt or other security, issued by a

securitisation company or reconstruction company to any qualified institutional buyer

pursuant to a scheme, evidencing the purchase or acquisition by the holder thereof, of an

undivided right, title or interest in the financial asset involved in securitisation.

GOVERNMENT SECURITIES (G-Secs): These are sovereign (credit risk-free) coupon

bearing instruments which are issued by the Reserve Bank of India on behalf of Government

of India, in lieu of the Central Government's market borrowing programme. These securities

have a fixed coupon that is paid on specific dates on half-yearly basis. These securities are

available in wide range of maturity dates, from short dated (less than one year) to long dated

(upto twenty years).

DEBENTURES: Bonds issued by a company bearing a fixed rate of interest usually payable

half yearly on specific dates and principal amount repayable on particular date on redemption

of the debentures. Debentures are normally secured/ charged against the asset of the company

in favour of debenture holder.

BOND: A negotiable certificate evidencing indebtedness. It is normally unsecured. A debt

security is generally issued by a company, municipality or government agency. A bond

investor lends money to the issuer and in exchange, the issuer promises to repay the loan

amount on a specified maturity date. The issuer usually pays the bond holder periodic interest

payments over the life of the loan. The various types of Bonds are as follows-

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ZERO COUPON BOND: Bond issued at a discount and repaid at a face value. No periodic

interest is paid. The difference between the issue price and redemption price represents the

return to the holder. The buyer of these bonds receives only one payment, at the maturity of

the bond

CONVERTIBLE BOND: A bond giving the investor the option to convert the bond into

equity at a fixed conversion price.

COMMERCIAL PAPER: A short term promise to repay a fixed amount that is placed on

the market either directly or through a specialized intermediary. It is usually issued by

companies with a high credit standing in the form of a promissory note redeemable at par to

the holder on maturity and therefore, doesnt require any guarantee. Commercial paper is amoney market instrument issued normally for a tenure of 90 days.

TREASURY BILLS: Short-term (up to 91 days) bearer discount security issued by the

Government as a means of financing its cash requirements.

3.6 ACCOUNT OPENING

To avail the services of depository one requires opening an account with any of the

depository participants. The e-invest account is an account which allows a customer

electronic trading on the exchange. Through this unique three in one trading every customer

opening an e-invest account gets a bank saving account.

You can open a Depository Participant (DP) Account, either through sharekhan

branches or through Sharekhan Franchisee center.

There is no fee for opening DP accounts with SharekhanI. However, deposit

(refundable) will be levied towards services which can be adjusted towards billing

charges.

All investors have to submit their proof of identity and proof of address alongwith the

prescribed account opening form.

1. I. Proof of Identity : Your signature and photograph must be authenticated by an

existing demat account holder with the same DP or by a bank manager. Alternatively,

you can submit a copy of Passport, Voters Id Card, Driving Licence or PAN card with

photograph.

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2. II. 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. III Passport-size photograph.

DEMATERIALISATION:

Dematerialisation is the process by which a client can get physical certificates converted into

electronic balances maintained in its account with the DP.

FEATURES:

Holdings in only those securities that are admitted for dematerialisation by NSDL can

be dematerialised.

Structure of holding in the securities should match with the account structure of the

depositoryaccount

If the shares are in the name of X and Y it cannot be dematerialised in to the account

of either X or Y alone. Further, if the shares are in the name of X first and Y second

and the account is in the name of Y first and X second, then these shares cannot be

dematerialized in this account. The dematerialisation process can be initiated only by

X first and Y second and for this a depository account will have to be opened in the

name of X first and Y second.

Only those holdings that are registered in the name of the account holder can be

dematerialised.

REMATERIALISATION:

Rematerialisation is the process by which a client can get his electronic holdings converted

into physical certificates. The client has to submit the rematerialisation request to the DP with

whom he has an account. The DP enters the request in its system which blocks the client's

holdings to that extent automatically. The DP releases the request to NSDL and sends therequest form to the Issuer/ R&T agent. The Issuer/ R&T agent then prints the certificates,

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despatches the same to the client and simultaneously electronically confirms the acceptance

of the request to NSDL. Thereafter, the client's blocked balances are debited.

FEATURES:

A client can rematerialise his dematerialised holdings at any point of time.

The rematerialisation process is completed within 30 days.

The securities sent for rematerialisation cannot be traded.

TRADES:

When an investor sells in a market trade i.e. through a broker, the flow of securities happens

as follow:

THE FLOW OF SECURITIES (MARKET TRADE) CAN BE SHOWN

This settlement of the trade happens on the investor giving his DP an instruction to debit his

account and credit the brokers account for the said quantity of shares and the broker in turn

giving his DP the instruction of delivering the sharesto the clearing corporation. Thus, on the

respective DPs executing the instructions the transfer of securities takes place.

In case of a market purchase, the securites come into the brokers account from the clearing

corporation on payout, then teh broker provides instructions to his DP to transfer stocks into

the investor account. If the investor has not availed of automatic credit facility, then he should

provide a receipt instruction to his DP.

In case of an off-market trade, the securities move from the seller to the buyer on the

execution of respective instructions by the respective DPs.

Thus, the flow of securities essentially depends upon the parties to the trade providing the

relevant instruction to the respective DPs at the appropriate time.

PLEDGE:

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Pledge enables you to obtain loans against your dematerialised shares. So you get liquidity

without having to sell your shares.

You can pledge your shares and the money can be utilised to finance your personal needs, or

you can make further investments.

A highly simplified procedure may be availed of for pledging of securities in the electronic

mode. The pledged securities continue to be reflected in the DP account of the pledger but the

concerned securities are "blocked" and can not be used for any transactions. As and when the

pledge is to be removed, based on confirmations received from both the pledger and the

pledgee, the blocked securities will be released to "Free Balance" of the account holder.

CORPORATE BENEFITS:

Corporate benefits are benefits given by a company to its investors. These may be either

monetary benefits like dividend, interest or non-monetary benefits like bonus, rights, etc.

NSDL facilitates distribution of corporate benefits.

CLIENT REGISTRATION PROCESS

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FORM

SUBMISSIO

NSCRUTINY

SEGREGAT

E

OPEN A/C OR

REJECTBANK

VALID

FORM

INTIMATES

CPU

INTIMATES

CPU

OPEN A/C

OR REJECT DP


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CHAPTER: 4

OBJECTIVES & SCOPE

Online share trading is not a new concept for India too.NSE has started it in 1992.

Still share-trading is not very popular among middle class people and they think it as risky

investment. If we see the growth of the sensex .It has increased more than 15 times in 16

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years. In 1992 it was at just 1000 and today it is about15000. It was at 21000 in January

2008.

During research it was my aim to find out different aspects of online trading and

peoples interest about it . Which companies are popular among them, how much they know

about these things, how much are they satisfied etc.?

Meanwhile I was also looking for prospect customers also for Sharekhan Ltd.

Following are the main objectives of the research:

4.1 PRIMARY OBJECTIVES:

To find out potential customer by creating awareness among the people for

opening Demat a/c

To study the awareness and interest of customers for online trading services.

To find out customers satisfaction level.

4.2 SCOPE OF THE STUDY:

To find out customers overall perception about the system.

To know what motivates prospective customer to think about going for online

share trading.

To know what options are used by customer in online trading.

To get information regarding the current market share of the company.

To know competitors of Sharekhan in the market.

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CHAPTER: 5

ORGANISATION STRUCTURE

5.1 OVERALL ORGANISATIONAL STRUCTURE

5.2 FUNCTIONS OF DEPARTMENTS

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HEAD

REGIONAL

HEAD

QUARTERS

REGIONAL

HEAD

QUARTERS

REGIONAL

HEAD

QUARTERS

REGIONAL HEAD

QUATERS

REGIONAL

BRANCHQUATERS

OPERATIONSDIVISION

SUPPORTFUNCTION BRANCHES

ISO CELL

BROKING

FPO

RIS

DP

ACCOUNTS

SYSTEM

HRD

ADMN.PURCHA

OPERATIONS

SUPPORT FUCTION


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5.3 MARKETING

5.4 ACCOUNTS

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HEAD OF THE BRANCH

MARKETING MANAGER

SALES EXE. ASSISTANT TRAINEE

HEAD OF THE BRANCH

ACCOUNTANT MANAGER

DOCUMENTRY ASSISTANT ACCOUNT MANAGER


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5.5 HR & ADMINISTRATION

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HEAD OF THE BRANCH

HRM

HR DEVOLPMENT PAY ROLE RECURTMENT

SALES EXE. TRAINEES


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CHAPTER: 6

STOCK EXCHANGES

6.1 FUNCTIONS OF STOCK EXCHANGES

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The importance of stock exchanges will be clear from the following functions performed by

stock exchanges:

1. ENSURES LIQUIDITY OF CAPITAL: The stock exchange provides a place where

shares and stock are converted into cash. It provides a ready market for buyers and sellers of

securities. If exchanges were not there many persons would have fear of blocking their

savings in securities.

2. CONTINUOUS MARKET FOR SECURITIES: The securities once listed continue to

be traded irrespective of the fact that owners go on changing. Exchanges provide regular

market for trading in securities.

3. EVALUATION OF SECURITIES: The investors can evaluate the worth of their shares

from price quoted at different stock exchanges for those securities.

The securities are quoted under free atmosphere of demand and supply and prices are set on

the basis of free market.

4. MOBILIZING SURPLUS SAVINGS: Through stock exchanges the investors are given a

safe platform to invest their savings. Hence stock exchanges play an important role in

mopping up surplus funds of investors.

5. HELPFUL IN RAISING NEW CAPITAL: The new concerns raise capital for first time

and the existing units increase their capital for further expansion and diversification purposes.

The new concerns get themselves registered so that the shares they issue can be further traded

at exchanges.

6. SAFETY IN DEALINGS: The dealings in stock exchanges are governed by well defined

rules and regulations of Securities contract act; 1956. There is no scope of manipulating the

transactions. Every transaction is done according to the procedure laid done and there is no

fear in minds of trading parties.

7. LISTING OF SECURITIES: Only listed securities can be traded in stock exchanges.

Every company desires of listing its securities will apply to the exchange authorities. But

listing is allowed after critical examination of capital structure, management and prospectus

of company. Hence provide security to a limit but it does not guarantee the financial stability,

so the investors should make analysis before investing.

8. CLEARING HOUSE FOR BUSINESS INFORMATION: The companies listing

securities with exchange have to provide financial statements, annual reports and other

reports to ensure maximum publicity of corporations operations and working. The economic

and other information provided at stock exchanges help companies to make their policies.

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9. PLATFORM FOR PUBLIC DEPTS.: The stock exchanges are also organized market

for government securities. However there is no any provision for a separate counter for

government securities but these are traded through brokers dealing in these securities.

10. FAIR PRICE DETERMINATION: The prices in the stock market are determined by

the interplay of forces of supply and demand. In stock exchange there is active bidding and a

two way auction takes place as a result there is a free competition in the stock market. The

price is determined where the bargain is stuck.

Stock exchanges also perform other functions that are useful for tax purposes and

hence protect the investors interest by eliminating dishonest and irregular practices in the

brokerage of trade.

6.2 THE BOMBAY STOCK EXCHANGE

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Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage.

Popularly known as "BSE", it was established as "The Native Share & Stock Brokers

Association" in 1875. It is the first stock exchange in the country to obtain permanent

recognition in 1956 from the Government of India under the Securities Contracts

(Regulation) Act, 1956.The Exchange's pivotal and pre-eminent

role in the development of the Indian capital market is widely

recognized and its index, SENSEX, is tracked worldwide. Earlier

an Association of Persons (AOP), the Exchange is now a

demutualised and corporatised entity incorporated under the

provisions of the Companies Act, 1956, pursuant to the BSE

(Corporatisation and Demutualization) Scheme, 2005 notified

by the Securities and Exchange Board of India (SEBI).

With demutualization, the trading rights and ownership

rights have been de-linked effectively addressing concerns

regarding perceived and real conflicts of interest. The Exchange is professionally managed

under the overall direction of the Board of Directors. The Board comprises eminent

professionals, representatives of Trading Members and the Managing Director of the

Exchange. The Board is inclusive and is designed to benefit from the participation of market

intermediaries.

In terms of organization structure, the Board formulates larger policy issues and

exercises over-all control. The committees constituted by the Board are broad-based. The

day-to-day operations of the Exchange are managed by the Managing Director and a

management team of professionals.

The Exchange has a nation-wide reach with a presence in 417 cities and towns of

India. The systems and processes of the Exchange are designed to safeguard market integrity

and enhance transparency in operations. During the year 2004-2005, the trading volumes on

the Exchange showed robust growth.

6.3 THE NATIONAL STOCK EXCHANGE

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The National Stock Exchange (NSE) is India's leading stock exchange covering

various cities and towns across the country. NSE was set up by leading institutions to provide

a modern, fully automated screen-based trading system with national reach. The Exchange

has brought about unparalleled transparency, speed & efficiency, safety and market integrity.

It has set up facilities that serve as a model for the securities industry in terms of systems,

practices and procedures. NSE has played a catalytic role in

reforming the Indian securities market in terms of microstructure,

market practices and trading volumes. The market today uses state-of-

art information technology to provide an efficient and transparent

trading, clearing and settlement mechanism, and has witnessed

several innovations in products & services viz. demutualization of

stock exchange governance, screen based trading, compression of settlement cycles,

dematerialization and electronic transfer of securities, securities lending and borrowing,

professionalization of trading members, fine-tuned risk management systems, emergence of

clearing corporations to assume counterparty risks, market of debt and derivative instruments

and intensive use of information technology.

MISSION

NSE's mission is setting the agenda for change in the securities markets in India. The NSE

was set-up with the main objectives of:

establishing a nation-wide trading facility for equities, debt instruments and hybrids,

ensuring equal access to investors all over the country through an appropriate

communication network,

providing a fair, efficient and transparent securities market to investors usingelectronic trading systems,

enabling shorter settlement cycles and book entry settlements systems, and

Meeting the current international standards of securities markets.

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CHAPTER: 7

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THEORETICAL PERSPECTIVE

Bringing together under one site all the relevant factors to enable an informed investment is

what online trading is all about. There are several terms which are commonly used for online

share trading :

1.DEMAT A/c This is a account where dematerialization takes place. Dematerialization is

the process by which physical certificates of an investor are converted to an equivalent

number of securities form and credited into the investors account with his/her DP.

2.DP A depository participant is an agent of the depository through which it interfaces with

the investor. DP can offer depository services only it gets proper registration from SEBI.

3. DEPOSITORY A depository is an organization which holds securities of investor in

electronic form at request at request of the investor through a registered repositoryparticipant. It also provides services related to transactions in securities.

4. SAVING A/c - This is a regular bank a/c which is linked to D Mat a/c and trading a/c.

required amount of money is used for trading from saving a/c.

5. TRADING A/c This is a a/c through which actual trading i.e. buying and selling takes

place. In online share trading all three accounts are interlinked.

6. LIMIT ORDER- A price higher or lower than you wanted, you need to place a limit order

rather than a market order. A limit order is an order to avoid buying or selling a stock at order

to buy or sell a security at a specific price. A buy limit order can only be executed the limit

price or higher. When you place a market, you cant control the price at which your order will

be filled. Remember that your limit order may never be executed because the market price

may quickly surpass your limit before your order can be filled. But by using a limit order you

also protect yourself from buying the stock at too high prices.

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TRADING

ACCOUNT

SAVING

ACCOUNT

DEMAT


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7.MARKET ORDER- Market order is an order to buy or sell stock at the current market

price. Unless you specify otherwise, your broker will enter your order as a market order.

8. ORDER- Investors have several options when it comes to placing an order to buy or sell

the securities. For example, whether you place an order directly with your broker or trade

online, you can instruct your broker to buy or sell at a specified price. Or you can place an

order that is good for one day only or for an extended period.

9. STOP ORDER- A stop order is an order to buy to sell a stock once the price of the stock

reaches the specified price, know as stop price. When the specified price is reached, your stop

order becomes a market order.

Buy stop order- Investors typically uses a stop order when buying stock to limit a loss or

protect a profit on short sell. The order is entered at a stop price that is always above the

current price.

Sell Stop order- A sell stop order helps the investors to avoid further losses or to protect a

profit that exists if the stock price continues to drop. A stop order to sell is always placed

below the current market price.

10. SHORT SELL- A short sell is generally the sale of a stock you do not own. Investors

who sell short believe the price of the stock will fall. If the price of the stock drops, you can

buy the stock at lower price and make the profit. If the price of the stock rises and you buy it

back later at higher price, you will incur a loss.

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CHAPTER: 8

SWOT ANALYSIS

8.1 STRENGTH:

1) EMPLOYE MOTIVATION POLICY

2) RESEARCH TEAM

3) GOOD INFRASTRUCTURE

4) HELTHY FINACIAL MARKET

5) USER FRIENDLY WEB SITE

8.2 WEAKNES

1) INSUFFICIENT ADVERTISEMENT POLICY

2) NO ACCESS TO THE RURAL MARKET

8.3OPPORTUNITY

1-Sharekhan having goog customer relation strategy so that it create good opportunity to

create goodwill and capture the market.

2-Growing initial public offer create opportunity to capture the new market

3- Positive outlook of people towards financial product becouse most of investor more

about financial instrument and working strategy of stock brokers.

8.4 THREATS

1) MARKET UNCERTAINTY

2) STIFF COMPETITION

3) NEW ENTRY IN TO MARKET

4) GOVERNMENT POLICY

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CHAPTER: 9

RESEARCH METHODOLOGY

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Marketing research is a systematic design, collection, analysis & reporting of Data

which is relevant to specific market situation .

My research process is as follows.

9.1 DEFINES THE PROBLEM AND RESEARCH OBJECTIVES

The objective of the research conducted was to study of consumers preference for online share

trading. Secondary objective of the survey was to know the customers satisfaction level. My

other objectives were to find out the overall perception about the system and what motivates

the people to think about going for online share trading.

9.2 DEVELOPING RESEARCH PLAN

The second stage of marketing research calls for developing a most efficient plan for gathering

needed information. Designing a research plan calls for taking decision on data sources

research, approach, research instrument, sampling plan and contact methods.

9.3 DATA SOURCE

There are two types of methods used in data collection i.e. primary data & secondary data.A) PRIMARY DATA

Those data which are collected at first hand by the researcher especially for the purpose of

the study ,are known as primary Data .The data is collected directly from the person in sample

population. In this project research the collection of data is directly interviewing customer. In

the collection of the primary data, I have used survey method and use the questionnaire

methods.

There are mainly two methods for the collection of the primary data which are given

below,

Observational Method.

Survey Method.

OBSERVATION METHOD:-

In the observation method, it requires the observer. The observer will keenly observe theperson at the time of the interview & record his behavior accurately. it is also one of The

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important method for the collection of data but it requires good & experienced observer who

can observer The behavior of the respondent properly and record it with great accuracy.

SURVEY METHOD:-

It is most popular method for the collection of necessary data from the respondents. I have usedsurvey method for the collection of the necessary data.

Different types of the survey are given below,

Personal interview.

Telephonic survey.

Mail questionnaires.

PERSONAL INTERVIEW:-

In the personal interview, the interviewer will personally meet the respondent and will take is

interview. The interviewer will ask question in face to face direction to the respondents or

group of respondents.

TELEPHONIC SURVEY:-

In the telephonic interview, the interviewer will make call to respondents, inform the

respondents about the purpose of the call and then he will ask the related questions to the

respondents. This method is used, when the information to be collected is limited. It is mostly

used when information to be collected is limited.

MAIL QUESTIONNAIRE:-

In the mail questioner the interviewer will mail the questionnaire to the respondents and inform

them about the purpose of the survey. Also the time limit for the questionnaire is specified in

the mail. This method is used when the area to be covered is large and the survey has to be

conducted in the specific limit.

In my survey, I have used the personal interview to know customer awareness towards online

share trading. I have visited respondents personally.

B) SECONDARY DATA

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Any data which had been gathered earlier for other purposes are secondary data in hand of

marketing research. These data has been collected from company dealer like Dealer profile,

industrial profile, company profile are collected from the internet.

The secondary data are collected from the magazines, internet and

Web -sites. Different web sites like www.sharekhan.com and GOOGLE

Search engine help in collecting the detailed information.

9.4 RESEARCH APPROACH

Out of 4 ways of research approaches i.e.

1. Observation research.

2. Survey Research

3. Focus Group research

4. Experimental research.

In this project the approach used was survey approach because the main objective of our survey

was to study of the market potential and have an idea about the customer awareness.

9.5 SAMPLING

Research instruments can be of two types firstly questionnaire methods and secondly

mechanical instruments. In this survey the research instrument was questionnaire method.

9.6 SAMPLING PLAN:-

Sampling size : 50

Field Work area : Pune City

Random sampling

SAMPLING PROCEDURE:-

The sampling Procedure can be of two types:

1. Probable Samplings

2. Non-probable sampling

In this survey expert Judgments sampling method can be used.

CONTACT METHODS:

The method of contacts can be four types

1. Mail Questionnaire

2. Personal Interview

3. Telephonic Interview.

4. Internet

9.7 STATEMENT OF PROBLEM

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Problem definition is one of the most important parts of the study. It is very important to

properly define the problem. If the problem is properly defined then it will provide proper

guide line for the further study. The properly defined problem will direct the surveyor on the

proper path. And it is truly said that a properly defined problem is a half solve.

Here the main problem is to study on the INVESTOR PREFERENCES FOR ONLINE

TRADING (IN PUNE). Market potential is nothing but the finding out potential customers

for the product of organization; which gives maximum profitability. To find out market

potential study of competitors; consumer behavior; brand positioning is must which gives

idea about the market scenario. Online share trading share trading is nothing but the buying

and selling shares as per the market position, this is done through broker. Broker-broker is

the person who brings buyer and seller together.

So the problem is to know the market potential of online share trading and the popularity of

online share trading among the people. It is also to know which options are preferred by

customers.

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CHAPTER: 10DATA ANALYSIS

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10.1 INVESTMENT OPTIONS

InvestmentOption Person Percent %

Valid Percent%

CumulativePercent %

Bank 2 4.0 4.0 4.0

Insurance 20 40.0 40.0 44.0

Post office 10 20.0 20.0 64.0

Mutual-fund 18 36.0 36.0 100.0

Total 50 100.0 100.0

INTERPRETATION

This shows that most of people, who are observed, are interested in investing in

Insurance or Mutual Fund. 20% people are also interested in investing in Post office.

10.2 BRAND AWARENESS

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INTERPRETATION

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Companies No. of Respondents Percentage %

ICICI 22 45%

Sharekhan 16 31%Kotak Securities 07 14%

HDFC Securities 05 10%

Total 50 100%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Percentag

e ofPeopl

e

ICICI Sharekhan Kotak

Securities

HDFC

Securities

BRAND AWARENESS


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ICICI was at the top of the mind of 45% people out of 100% and Sharekhan securing

second position with 31%, followed by Kotak and HDFC with 14% and 10%

respectively.

10.3 IS ONLINE TRADING EASY?

Ans

Respondent

s

Percent

%

Valid

Percent %

Cumulative

Percent %

Yes 41 82.0 82.0 82.0

No 9 18.0 18.0 100.0

50 100.0 100.0

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Total


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INTERPRETATION

This proves most of people accept that online trading is easy. This is a plus point for

stock trading companies.

10.4 DO YOU NEED TRAINING?

Responde

nts

Perce

nt %

Valid

Percent

%

Cumulativ

e Percent

%

Yes 42 84.0 84.0 84.0

No 8 16.0 16.0 100.0

50 100.0 100.0

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An

Tot


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INTERPRETATION

This shows that people need proper training for using online trading although it is

easy.

10.5 SOURCES OF ADVERTISEMENT

Sources No. of Respondents Percentage %

News papers & magazines 32 64%

Friends 10 20%

Internet & Other media 08 16%

Total 50 100%

INTERPRETATION

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0%

10%

20%

30%

40%

50%

60%

70%

PercentageOf people

News papers

& magazines

Friends Other media

SOURCES OF ADVERTISEMENT

Internet &

Other

media


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63% people come to know about online share trading through news paper and

magazines whereas 20% people come to know through friends and 17%

people come to know through other media like internet, news channel etc.

10.6 WHICH IS BETTER, NSE OR BSE?

Opstion

Respondent

s

Percent

%

Valid

Percent %

Cumulative

Percent %

NSE 44 88.0 88.0 88.0

BSE 6 12.0 12.0 100.0

Total 50 100.0 100.0

INTERPRETATION

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This shows that most people like NSE in comparison of BSE.

10.7 AWARENESS OF E-BROKING

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Reply No. of Respondents Percentage %

Yes 20 40%

No 30 60%

Total 50 100%

0%

10%

20%

30%

40%

50%

60%

1

percent

ageofpeople

Awareness of e-broking

yes

No


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INTERPRETATION

60% people were unfamiliar of the term e-broking and only 40% people

aware were with the concept of e-broking.

10.8 KNOWLEDGE THROUGH COMPANY WEBSITE

Reply No. of Respondents Percentage %Yes 22 43%

No 28 57%

Total 50 100%

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0%

10%

20%

30%

40%

50%

60%

Percentag

e

Of

people

Yes No

KNOWLEDGE THROUGH COMPANY WEBSITE


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INTERPRETATION

Out of the total sample size 43% people have visited the website of any e-broking

company and 57% people have not visited any website regarding e-broking.

10.9 VISIT BY COMPANY REPRESENTATIVE


Yes 12 24%No 38 76%

Total 50 100%

INTERPRETATION

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0%

10%

20%

30%

40%

50%

60%

70%

80%

Percentage

ofPeople

Yes No

VISIT BY COMPANY REPRESENTATIVE


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Only 24% people who are interested in online share trading have been visited

by the representatives of the e-broking company and rest of the 73% people

have not been visited.

10.10 INTEREST IN E- BROKING


Yes 48 96%

No 02 04%

Total 50 100%

INTERPRETATION

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0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PercentageOf people

Yes No

INTEREST IN E-BROKING


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Out of the total sample size 97% people found the concept of e-broking interesting

and 03% people do not find it interesting.

10.11 PREFERRED SYSTEMS OF SHARE TRADING

System No. of Respondents Percentage %

Online 26 52%

Traditional 21 42%Cant say 03 06%

Total 50 100%

INTERPRETATION

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PREFERED SYSTEMS OF SHARE TRADING

52%42%

6%

Online Traditional Cant say


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Regarding the preferences towards the different systems of share trading,

online share trading emerged as a clear cut winner with 53% people preferring

it, followed by traditional with 41% while 06% people were unable to answer.

10.12 TRADITIONAL- INFLUENCING FACTORS

Reason No. of Respondents Percentage

%

Dependence on broker 20 40%

Lack of computerknowledge

14 28%

Fear of fraudulence 16 32%

Total 50 100%

INTERPRETATION

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TRADITIONAL- INFLUENCING FACTORS

40

%

28

%

32

%

Dependence on

broker

Lack of computer

knowledgeFear of fraudulence


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39% people opt for traditional system of share trading because of there

dependence on broker, 29% people opt for traditional system of share trading

because of the lack of computer knowledge and 32% people wants to stick

with traditional system due to fear of fraudulence.

10.13 PREFERENCE FOR INVESTMENT

Option Respondents Percent %

Valid

Percent %

Cumulative

Percent %

* Largecap 40 80.0 80.0 80.0

** Midcap 8 16.0 16.0 96.0

*** Smallcap 2 4.0 4.0 100.0

Total 50 100.0 100.0

INTERPRETATION

By seeing this we can say that people prefer to invest in largecap companies. It may

be due to less risk.* Largecap :- Companies worth $5 billion or more.

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** Midcap :- Companies worth $1 billion to $5 billion.

*** Smallcap :- companies worth $250 million to $1 billion.

10.14 INFLUENCING FACTORS

Factors No. of Respondents Percentage %

Transparency 32 64%

Hassle Free Service 07 14%

Economical 06 12%

Time saving 05 10%Total 50 100%

INTERPRETATION

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INFLUENCING FACTORS

64%14%

12%

10%

Transparency Hassle Free Service Economical Time saving


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Out of the four fascinating factors of online share trading transparency is at the

top as 64% people has voted for it followed by hassle free with 14%,

economical with 12% and time saving with 10% respectively.

10.15 FUTURE PLANNING FOR ONLINE TRADING


Yes 26 52%

No 22 44%

Cant say 02 04%

Total 50 100%

INTERPRETATION

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FUTURE PLANNING FOR ONLINE TRADING

52%

44%

4%

Yes

No

Cant say

Percentage of people


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Out of the total sample size 53% people are planning to go for online share

trading and 43% people do not want to go for it while 4% people have not

yet decided.

10.16 REASONS FOR NOT ENTERING INTO E-BROKING

Reasons No. of Respondents Percentage %

Relationship with broker 27 54%

Trade rarely 15 30%

Other reasons 08 16%

Total 50 100%

INTERPRETATION

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0%

10%

20%

30%

40%

50%

60%

Percentage

of People

Relationship

With broker

Trade rarely Other reasons

REASONS FOR NOT ENTERING INTO E-BROKING


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55% people do want to do online share trading because they have good

relationship with there broker, 30% people trade rarely and 15% have some

other reasons.

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CHAPTER: 11

FINDINGS AND OBSERVATIONS

It is found that people who were observed, they are yet investing in Insurance. And

mutual funds are also a good option for them. Post office was 3 rd favorable option for

investing. It may be due to less knowledge of Share market as well as it is considered

risky.

ICICI is found to be most popular among all. People are well aware of various services

providers like sharekhan.com, kotakstreet.com, hdfcsecurities.com. Professionals and

executive category are found to be in favor of the online share trading. They showed

interest in going for online share trading.

It is also seen that people think that online trading is convenient and easy to operate but

they also need initial guidance and training. So it must be provided to them so that they

can trade comfortably via online.

According to most of the people observed NSE is better than BSE.

People prefer to invest in largecap companies because of less risk.

News and magazines are found to be of major source of information.

93% people found to be aware of online trading of securities.

43% people said that they have visited at least one of the websites for the online share

trading concept.

The representative of at least one service provider has visited 24% people.

90% of the total population agrees that the concept is easy, convenient & interesting.

Still only 53% people are sure to go for online share trading. 41% people rarely want

to go for online trading.

People have highly voted for transparency feature of the online trading followed by

hassle free service, economical and time saving features.

Business class prefer off line share trading as most of them have good

relationship with their broker.

Business class which can be defined as the people who are self employed

entrepreneurs are found to be less interested and would like to stick to the traditional

system and are much dependent on their broker regarding investments.

.

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CHAPTER: 12

LIMITATIONS

There is no activity without limitations so it had too. The main Limitation has been faced

during project research are as follows:-

The research has been carried on time span of one an half month.

The research is totally based on the personal opinion of the respondents which

may vary depending upon their personal view.

The research has done along with achieving our target given by company.

Peoples response was also not favorable.

Due to instability of market people were afraid of it, so they were less interested in

these things.

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CHAPTER: 13

SUGGESTIONS AND RECOMMENDATIONS

1. Although people have heard about online trading of securities still people have great

doubt about its operational feasibility as they are not clear about the concept. Special

awareness programs using various media mixes should be carried out to remove fear

from the minds of people and make it familiarize.

2. More emphasis should be laid on the convenience that the trading facilities offer by

either introducing kiosks in the centre where the clients could have a demonstration

for themselves and understand the various features of the product. This could help

them determine how conventional mode of trading is.

3. There are large numbers of prospective customers, who trades in small volume or

make infrequent transactions or like to hold the stock as a long term investment. The

current price structures are not at all suitable for such population. E- Trading

companies should look at such class.

4. Awareness campaigns like giving idea about futures and options, derivatives, dividend

policies will create interest in online trading. And this helps organization for market

positioning as well as mind positioning.

5. Sharekhan.com can go for banking business as it has large customer base. Generally

e-trading are not in banking business but this can be done as it will provide

convenience. Many times customer faces problem because of lack of coordination

between management of e-trading company and bank.

6. Development in public relation management and customer relationship management

will lead organization towards strong brand image as well goodwill.

7. Comparative study of customer care and services provide by other companies will

help develop business strategies as well business policies.

8. Seminars can be conducted at corporate level so as to increase potential customer

base. Corporate people do not go for share trading due to lack of time. This kind of

seminar will motivate them and make them aware about e-trading.

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9. Tie-up with banks will facilitate the customer as maximum customers have their

salary accounts in banks and this account can be used for net banking as well share

trading.

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CHAPTER: 14

CONCLUSION

Shares are the best kind of investment available over a long period of time. And also

share market is a place where money earns money. For investing in share market every

investor needs to have an agreement with a Depository Participants. Depository Participants

are the one who provide the services of DEMAT.

Sharekhan is very well known among the investors but from the analysis I found that

ICICI Direct Securities is one of the major competitors. During my research I found that there

is a large market which is untapped, as most of people find the concept of online share trading

very interesting but none of them have been visited by the representative of any company.

During my research I also found that many people want to stick with the traditional system of

share trading because of lack of computer knowledge and also many people are dependent of

their personal broker. In the research I observed that Sharekhan limited is not effective in the

advertisement of its products.

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CHAPTER: 15

ANNEXURE

QUESTIONNAIRE

PERSONAL INFORMATION:

1. Name:2. Gender: (a) Male (b)Female

3. Address:

4. Contact No.:

5. Age

(a) Between 20-22 years (b) Between 22-25years

(c) Between 25-30years (d) Above 30 years

6. Are you married?

(a) Yes (b) No

7. Education(a) Postgraduate (b) Graduate

(c) 12th (d) below 12th

8. Are you employed?

(a) Yes (b) No

9. What is your monthly income? (In Rs)

(a) Below 10000/-

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(b) Between 10000-20000/-

(c) Between 20000-30000/-

(d) Above 30000/-

RESEARCH-QUESTIONS:

10. Which is the best investment-option for you?

(a)Bank (b) Insurance

(c)Post office (d) Mutual Funds

(e) Others

11. If yes, which companys DEMAT a/c do you have?(a)Sharekhan (e) ICICI

(d)Kotak Securitie (f) HDFC

12. Which is the best company according to you?

(a)Sharekhan (b) ICICI

(c)Kotak Securitie (d) HDFC

13. Do you agree that online trading is easy & convenient?

(a) Yes (b) No

14. Do you need training for online trading?

(a) Yes (b) No

15. How do you know about Sharekhan?

(a) News Paper (b) friend(c) Internet & Other media

16. Which is better according you?

(a) NSE (b) BSE

17. Are you interested to open a DEMAT a/c. with Sharekhan?

(a) Yes (b) No

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18. Do you collect information which is shows on company website?

(a) Yes (b) No

19. Have you been visited by company representive?

(a)Yes (b) No

20. Are you interested in e-broking?

(a) Yes (b) No

21. Which is your preference for share trading?(a) Online (b) Traditional

(c) Cant say

22. Which is your traditional influencing factor?

(a) Dependent on broker

(b) Fear of fraudulence

(c) Lack of computer information

23. Which is your preference for investing?

(a) Large-cap (b) Mid-cap

(c) Small-cap

24. Which is your Influencing factor?

(a) Transparency (b) ICICI

(c) Hassle free service (d) Time saving

25. Do you have future planning for online trading?

(a) Yes (b) No

(c) Cant say

26. What is reason for not entering in E-Broking?

(a) The Relationship with broker

(b) Trade rarely(c) Other reason

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