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Growth of Indian online Trading Industry

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G H A Z I A B A D

INSTITUTE OF TECHNOLOGY AND SCIENCE, MOHAN NAGAR, GHAZIABAD
SUMMER INTERNSHIP PROJECT REPORT ON TITLE

“GROWTH OF INDIAN ONLINE

TRADING INDUSTRY”
BY ANKUL MAHESHWARI Enrollment No : PG2K8 010 E mail id Maheshwari_ankul@yahoo.com MOBILE – 09891786609

IL&FS INVESTSMART SECURITIES LIMITED (A group company of HSBC)

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INDIA’S FINANCIAL MULTIPLEX

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A REPORT
ON
“GROWTH OF INDIAN ONLINE TRADING INDUSTRY”

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A report submitted in partial fulfillment of the requirements of PGDM program of

INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD

SUBMITTED TO:

RAHUL KUMAR AGARWAL
AREA SALES MANAGER IL&FS INVESTSMART SECURITIES LIMITED MOBILE - 9871204928 E MAIL rahulagarwal8285@gmail.com &

DR. KAVITA SRIVASTAVA
ASST. PROFESSOR ITS GHAZIABAD MOBILE -+919871286444 E MAIL: kavitasrivastava7@gmail.com

ACKNOWLEDGEMENT
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The beatitude, bliss and euphoria that accompany the successful completion of any task would not be complete without the expression of appreciation of simple virtues to the people who made it possible. The final project report is submitted to institute of technology and science, Ghaziabad for partial fulfillment of diploma, post graduate diploma in management (PGDM). This project is an attempt to study “future and growth of online trading in India At IL&FS INVESTSMART SECURITIES LTD.(HSBC Group). I would like to thanks to the Management of IL&FS INVESTSMART SECURITIES LTD. (HSBC Group) for giving me the opportunity to do my two-month project training in their esteemed organization. I am highly obliged to Mr. RAHUL KUMAR AGARWAL

(AREA SALES MANAGER) for granting me to undertake my training at RDC RAJ NAGAR
branch. I express my thanks to all Sales Managers and other relationship managers under whose guidance and direction, I gave a good shape to my training. Their constant review and excellent suggestions throughout the project are highly commendable. My heartfelt thanks go to all the executives who helped me to gain knowledge about the actual working and the processes involved in various departments. I would also like to sincerely thank my faculty guide Dr. KAVITA SRIVASTAVA whose guidance has helped me to Understand and complete my project in a timely and proper manner

ANKUL MAHESHWARI

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DECLARATION

I do hereby declare that the project report is submitted as partial fulfillment of the requirement of PGDM Program of INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD The Project has been done under the guidance of Mr. RAHUL KUMAR AGARAWAL, KUMER SINGH NEGI and GAURAV KUMAR in Raj nagar branch, Ghaziabad and Dr. KAVITA SRIVASTAVA Faculty guide, INSTITUTE OF TECHNOLOGY AND SCIENCE, Ghaziabad No part of this report has not been published or submitted elsewhere for the fulfillment of any degree or diploma for any institute or university.

ANKUL MAHESHWARI

CONTENTS
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PAGE NO. EXECUTIVE SUMMARY……………………………………..………………..……6 PROJECT DETAIL………………………………………………………………..…..7 Project title……………………………………………………..............………7 Justification of the title…………………………………………...…………….7 Scope of the study……………………………………………………..……….7 Research objective…………………………………………………………..….8 Research methodology………………………………………………………... 8 Research design……………………………………………………..………….9. Sampling methodology……………………………………………..………….10. Limitations of the study…………………………………………………….... 10 COMPANY PROFILE……………………………………………………................. 11 LITERATURE REVIEW………………………………………………...……………34 ONLINE TRADING……………………………………………….………………….38 THE EMERGENCE OF ONLINE TRADING IN INDIA……………………………42 ICICIdirect ……………………………………………….……………………44 Reliance money ………………………………………….…………………….46 Share khan ……………………………………………….…………………….48 Kotak securities ………………………………………….…………………….51 Indiabulls …………………………………………………..…………………..54 Motilal Oswal ……………………………………………….…………………55 Religare ………………………………………………………………………..57 IndiaInfoline …………………………………………………………………..58 GROWTH OF ONLINE TRADING ………………………………………………....62 ANALYSIS PART ………………………………………………….…………………67 CONCLUSION ………………………………………………………….…………….79 RECOMMENDATIONS ……………….……………………………….………….....80 INDUSTRY RELEVANCE ……………………………………………………….…..81 LEARNING ……………………………………………………………………………82 BIBLIOGRAPHY ………………………………………………………..…………….83

1. EXECUTIVE SUMMARY

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As per the title suggest the project report has been prepared regarding the growth and development of online trading in India. Online trading was initiated by NSE in India and soon after the other exchanges also followed it. There was a major boom in yr. 2000 when lots of online trading companies came with a bang but only few were survived because of lack of computer knowledge and low internet penetration. There are two types of online trading companies one is the banking online trading companies and the other is non-banking trading. A few examples of banking online trading companies are HDFC securities, ICICI direct.com, UTI securities etc. On the other hand non -banking trading companies are IL&FS investsmart, Religare securities Angel Broking, Reliance Money etc. A study was undertaken to determine the growth of various online trading companies in India in terms of trade done by them through online and services provided by them

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Major findings indicates that out of a survey of 100 respondents it was seen that most of the investors prefer online trading because of few major factors such as time saving convenience, protection through Freudian brokers etc. although during my research project I’ve seen that most of the respondents feel online trading, a secure way of investing into stock market still a few of them feel that it’s unsafe and a bit complicated but they posses information about online trading. Today the online trading companies having cut-throat competition in our offering whose brokerage discounts lower margin money and zero balance accounts. Due to the rising education awareness and use of internet there is a huge potential for online trading in future and companies must come up with innovative offerings to capture the untapped market.

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2. PROJECT DETAIL
PROJECT TITLE: To determine the “GROWTH OF INDIAN ONLINE TRADING INDUSTRY” TITLE JUSTIFICATION: The above title is self explanatory. This study mainly deals with growth and development of online trading in India since its inception in the year 2000. Due to subprime mortgage crisis in year 2008 NASDAQ and S&P 500, two major stock exchange of the world entered into the bearish market. it also affected the stock market all over the world including India. It is the challenge for the growth and development of trading in India that’s why I choose that particular topic for the study. SCOPE OF THE STUDY Since the year 2000 a big boom has been witnessed in the Indian Stock Market when the market showed the coming up of Online Trading System. Many online stock trading companies came but initially due to lack of online trading some companies vanished and some survived. The companies which survived are getting the handsome returns also attracting the foreign Investment Companies. Nowadays this sector is facing cut-throat competition and also provides huge growth prospects. The study then goes to evaluate and analyze the findings so as to present a clear picture of the trends in the online trading sector.

RESEARCH OBJECTIVES

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The objectives of my research project is – 1. To determine the growth and future of online trading industry in India 2. To understand the customer perception of online trading. 3. To see the type of technology used by stock exchanges and by the Indian customer in online trading 4. To determine what type of products the customers deal while doing the online trading. 5. To understand the presence of major online traders in the Indian market and looking about the features provided by them 6. To find out the important factor which do mostly affect to the customer 7. To develop a good strategy and process that improves the business of the organization 8. To be able to compare and analyze the various Financial Products. 9. Business development and revenue generation.

RESEARCH METHODOLOGY
The research methodology for the project completed in two phases: First Phase is the collection of Secondary Data: This involves the collection of Secondary data using internet and internal sources for comparison of Online trading account of other Broking houses in the market like ICICI Direct, MOTILAL Oswal, Religare and Reliance Money etc. This also involves talking to their executives regarding various features provided to the customer along with their Brokerage structure.

Second Phase is Collection of Primary Data and Analysis:

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After collecting the Secondary data the next phase will be collection of primary data using Questionnaires. The questionnaire will be filled by around 100 people who will be mainly from Delhi/NCR region. The sample will consist of people who are employed or work as free lancers dealing in investment options to know their financial requirements. Based on these requirements different investments will be informed to them for further perusal. The data collected will be then entered into SPSS (software) and MS-excel for analysis of the data collected

RESEARCH DESIGN
Non probability The non –probability respondents have been researched by selecting the persons who do the stock trading. Those persons who do not trade in stocks have not been interviewed. Exploratory and descriptive research The research is primarily both exploratory and descriptive in nature. The sources of information are both primary and secondary. The secondary data has been taken by referring to various magazines, newspapers, internal sources and internet to get the figures required for the research purposes. The objective of the exploratory research is to gain insights and ideas. The objective of the descriptive research study is typically concerned with determining the frequency with which something occurs. A well structured questionnaire was prepared for the primary research and personal interviews were conducted to collect the responses of the target population.

SAMPLING METHODOLOGY

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Sampling Technique Initially, a rough draft was prepared a pilot study was done to check the accuracy of the Questionnaire and certain changes were done to prepare the final questionnaire to make it more judgmental. Sampling Unit The respondents who were asked to fill out the questionnaire in the National Capital Region are the sampling units. These respondents comprise of the persons dealing in stock trading. The people have been interviewed in the open market, in front of the companies, telephonic interviews and through other sources also Sample Size The sample size was restricted to only 100 respondents. Sampling Area The area of the research was National Capital Region (NCR).

LIMITATION OF THE STUDY The various limitations of the study are:  People were not willing to fill the entire questionnaire due to the less time available to them  Some respondents might be hesitant to divulge personal and financial information which can affect the validity of all responses

 There is lack of awareness among people about investing in stock market. So the people who are aware of such things were found in specific areas for survey purposes.

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 Most people are comfortable with traditional system in small towns and like to trade from their respective brokers, hence not providing a true opinion of theirs.  Some of the respondents who did not do online trading were able to respond to only few questions.  The survey was done in the NCR region and may not truly express the opinion of whole country

3. COMPANY PROFILE

IL&FS Investsmart securities Limited (IISL) is one of India’s leading financial services organizations providing individuals and corporates with customized financial management solutions. IL&FS investsmart limited( IIL) through its subsidiaries in India and Singapore provide a wide range of investment products to its retail and institutional client including equity broking investment banking, insurance broking and distribution, mutual fund distribution and related financial services. IISL’s 2000 employees provide a complete range of investment solution to over 138000 customers in India through its 88 branches and 190 franchisee outlets from 133 cities. Company is having a market capitalization of approximately US $260 million. Investsmart is listed on the national stock exchange (NSE) and the Bombay stock exchange (BSE) and its global depository share are listed on the LUXEMBURG STOCK EXCHANGE At IISL, we believe in "Realizing your goals together". You will find in us - a trusted investment partner to help you work towards achieving your financial goals. Our

Institutional expertise, combined with a thorough understanding of the financial markets results in appropriate investment solutions for you.

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Our strong team of all your investment needs through a office near you. All you need to do is drop in at the nearest branch or call us and we’ll be happy to do the rest! Investsmart recognized as “National Relationship Managers, Customer Service Executives, Advisory Managers and Research Analysts, offers efficient execution backed by in-depth research, knowledge and expertise to customers across the country. With a pan-India presence of over 300 offices, IISL is geared to meet “Best Performing Financial AdvisorRetail” for two tear in a row (2006-07 and 2007-08) by CNBC TV18.

Vision To become a long term preferred long term financial to a wide base of customer whilst optimizing Stake holder value Mission To establish a base of 1 million satisfied customer by 2010 We will create this by being a responsible trustworthy partner Corporate action

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An approach to business that reflects responsibility, transparency and ethical behavior Respect for employee client and stake holder group

PROMOTER OF THE COMPANY IL&FS Investsmart securities Limited (IISL) is one of India’s leading companies in the Financial Services industry. It was promoted in 1997 by Infrastructure Leasing & Financial Services (IL&FS), one of India's leading infrastructure development and finance companies. The company is now held by HSBC, one of the world’s largest banking and financial services organizations. In India, The HSBC Group offers a range of financial services including corporate, commercial, retail and private banking, insurance, asset management, investment banking, equities and capital markets, institutional brokerage, custodial services. It also provides software development expertise and global services facilities for the HSBC Group’s operations worldwide.

HSBC ACQUIRED 93.86 % OF IL&FS INVESTSMART IN INDIA HSBC has completed the acquisition of 93.86 % of IL&FS investsmart limited (investsmart). A leading retail brokerage in India for a total consideration of INR 1311 crore (approx. US $296.4 million) Sandy flockhart Group managing director and CEO of HSBC Asia pacific said “investsmart gives HSBC access to the world’s third-largest investor base with over 20 million retail investors. In fact ,the business already has 1,43,000 customers and operates in 128 cities with

Indian GDP expected to grow by 7.8% in 2009. The opportunity here is obvious and underlines why HSBC has a stated strategic aim of focusing on high-growth economics”

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Under the transaction agreement, HSBC acquired 43.85% of Investsmart from E*TRADE Mauritius Limited, an indirectly wholly-owned subsidiary of E*TRADE Financial Corporation, and 29.36 per cent from Infrastructure Leasing and Financial Services Limited (IL&FS). The decision to acquire a controlling stake in Investsmart triggered an open offer to public shareholders, through which HSBC has accepted shares equivalent to 20.65 per cent of Investsmart's capital. E*TRADE Mauritius Limited, IL&FS and those that tendered shares through the open offer received INR200 per share for their Investsmart shares. In addition, IL&FS was paid, as part of a three-year non-compete agreement, INR82.0 crore (approximately US$17.9 million). In accordance with local regulations, HSBC paid interest of INR2.3 per share to the public shareholders who tendered their shares. This amounted to INR3.31 crore approximately US$0.72 million).

Naina Lal Kidwai, Group General Manager and Chief Executive Officer, HSBC in India, added: "Investsmart is a great addition to our current operations, which already constitute the second largest foreign banking network in India. We look forward to working with Investsmart's management team and growing this business." HSBC was advised on the acquisition by the investment banking division of HSBC Global Banking and Markets. The HSBC Group in India is represented by several entities including The Hongkong and Shanghai Banking Corporation Limited which offers a full range of banking and financial services to its over 2.8 million customers in India through its 47 branches and 170 ATMs across 26 cities. HSBC is one of India's leading financial services groups, with over 34,000 employees in its banking, investment banking and capital markets, asset

management, insurance broking, two global IT development centers and six global resourcing operations in the country. The Bank is the founding and a principal member of

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the HSBC Group which, with over 9,500 offices in 85 countries and territories and assets of US$2,547 billion at 30 June 2008, is one of the world's largest banking and financial services organizations.

According to the old share holder pattern of INVESTSMART, majority of the share was in the hand of E*TARDE Mauritius Limited, That was 43.85% and IL&FS was having the share of 29.36%. The Participation of SAIF was 10.02% , FII’s 8.30% ,private corporate bodies 2.89%, resident individuals 3.21% and other was 2.37%.

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In September 2008, HSBC Securities & Capital Markets (HSCI) and HSBC Violet Investments (Mauritius) had acquired 29.35% and 43.85% stakes held by IL&FS and E Trade in IL&FS Investsmart. Post the stake acquisition, HSCI’s total holding in IL&FS Investsmart increased to 50.01%, taking the total stake held by HSBC and HSCI together in the company to 93.86% HSBC Securities & capital markets (India) private limited HSBC Violet investment (Mauritius) limited Others Total 34,922,751 30,625,692 4,287,830 69836273 50.01 % 43.85 % 6.14 % 100 %

Currently HSBC group is having 93.86% of share in IL&FS investsmart securities limited. HSBC securities and capital markets (INDIA) private limited has 50.01% HSBC violet investment (maturities) limited has 43.85% in investsmart. Now the company is running under the management of HSBC group.

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Company is now offering two type of product in the market according to the effectiveness of the segments Retail offering

Advisory Product Mutual Fund Advisory Services Our team of experts across India helps you in selecting the right scheme from over 500 offerings, matching your needs, goals and risks. In addition to this, we also help you constantly monitor your MF portfolio, making changes according to your changing needs as per the market scenario, in order to make your money work for you. Portfolio Management Services (PMS) At IL&FS Investsmart securities limited, we offer you just the solution that allows you to relax as we put your money to work through the IISL-PMS, a Discretionary Portfolio Management Service

IPO Advisory & Distribution Services IL&FS Investsmart securities limited is one of India's leading companies engaged in the activity IPO Advisory and Distribution. Our primary markets division does a comprehensive research before recommending issues to clients. As a part of our online offering, customers can invest in IPO's not only through our branches but also through our website, which also provides you with regular updates on the IPO scenario, Open IPO's as well as all the forthcoming IPO's at any given point of time.

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Insurance Advisory Services IL&FS Investsmart securities limited is your one stop shop for all Insurance & Retirement needs. We have also been recognized as Best Retail Financial Advisor by CNBC TV 18 for two years in a row 2005-06 and 2006-07. We are a composite insurance broker providing comprehensive risk management solutions, both for corporates as well as individuals key service features include the following:    

Risk management solutions for all Comprehensive research for all policies available on a regular basis Recommendations on a comprehensive insurance cover based on clients needs Maintain proper records of client policies Continuous monitoring of client account

Trading Products

Equities & Derivatives IL&FS Investsmart is a full service broking house offering services across both the Cash and F&O segments. We are a member with National Stock Exchange (NSE) as well as the Bombay Stock Exchange (BSE) and cater to your trading needs through a network of more than 300 offices across India. We also offer comprehensive trading solutions through our website www.investsmart.in which is equipped with host of unique features to cater to your trading needs.

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Our offerings include 3 different trading platforms to suit your individual needs, depending upon your profile. Our experienced team of Research Analysts and Advisory Managers guide you with appropriate solutions, backed by in-depth research, knowledge and expertise on a regular basis. We would constantly help you with strategies for investments in equities, recommendations for trading on futures & options, hedging with Nifty and other product and opportunities of risk-less arbitrage between various segments.

NRI Services

We offer investment solutions for NRIs with a host of services to make investing in India simple. We guide you at every step of your investment in India right from PAN Card Assistance* to using our robust trading platforms till assistance on accounting & income tax returns filing* in India

NRI Product offerings  NREquity Complete control of equity investments in India  NRI PMS Customized Solutions to meet NRI Investment needs

Additional NRI Product offerings

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 Mutual fund  Insurance  IPOs  Other wealth management product

Institutional offering

Investment Banking IL&FS Investsmart securities limited (IISL) offers you extensive range of Investment Banking Services for equity related products and instruments. Our team advises you on transactions like business structuring and capital raising opportunities based on your corporate needs and state of capital markets. Services we specialize in include Management of:
       

Initial Public Offering (IPOs) Follow-on Offerings Qualified Institutional Placements (QIPs) Buyback of Equities Open Offers Mergers & Acquisitions Private Equity Placements ESOPs

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Institutional Equity

Company’s efficient execution, quality research, top quality human resources and complete compliance with stock exchange regulations, as well as business standard ethics lend towards our exemplary services to investors, through IPOs, equities, derivatives and mutual funds. Company also focus on identifying undiscovered value stocks to investors. Through it’s array of services, this division is well-suited to corporate investors, banks, financial institutions, insurance companies and FII’s .company’s Institutional Equity Business (IEB) is well positioned to offer support for a complete range of investment banking service to corporates. IISL, work closely with institutional investors, private equity investors and corporates, have been hosting round table conferences with leading CIOs / Fund Managers etc. Also, conduct activities like organizing of road shows, enabling the senior management to interact with FIIs, regular conference calls for institutional Investors etc. This works as a prerequisite to investing in stocks. Company’s expertise in this area also extends to international investors from Singapore, Hong Kong, USA and the UK.

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Institutional Debt

Institutional debt broking division includes, secondary market broking, primary market debt placement & distribution and provident fund advisory services. Secondary debt broking is the principle service provided by this division. The clients mainly comprise of institutional debt players, such as banks, primary dealers, mutual funds, large provident funds and in some cases corporate treasuries. The division empanelled with almost all banks, primary dealers and mutual funds, on whose behalf it acts either on the buying or selling side. All types of debt papers are covered, including government securities, treasury bills, public sector bonds, corporate bonds etc. This desk also provides transacting and advisory services to various provident funds and HNI clients. The primary market services cover placement of debt paper issued by corporates, with institutional segments covering banks, mutual funds etc. These services cover various activities :

Advising the clients on the issuance including the instrument, quantum, timing, other instrument specific structuring such as put / call option, conversion option and rating. Assisting in the rating exercise and suggesting various means and options to improve rating if so desired, through “Structured Obligations” or other mechanisms.

 

Pre marketing the placement / issuance Selling / placing the issuance

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 

Assisting in any related documentation for the issuance Assisting in all other steps to complete the issuance for draw down funds

The debt instrument covered by this division cover both short term as well as longer term instruments. Commercial paper and MIBOR Linked Bonds are popular among the short-term instruments. The division uses a proprietary online platform called “DebtonNet” for online book building of debt issuances.

IL&FS investsmart securities limited is facilitating the three type of trading product to its retail customer are

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SmartSTART SmartStart is a powerful browser based trading system for those who are relatively new to online investing. A unique integrated account, which integrates your banking, broking, and demat accounts. A comprehensive trading service, which allows you to invest in equities and derivatives. SmartStart trading platform allows you the flexibility of trading on any internet capable system, with access to both the NSE and BSE.

FEATURES  Trade on NSE & BSE

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 Simple order entry for Equity & Derivatives  Fully Customizable display  User friendly Get Quote screen  Integrated Accounts (Bank. Demat & Trading)  Live order status  Track your orders real-time  Dynamic buying power  Works behind a Proxy  Back office access

SYSTEM REQUIREMENTS
Browser Type Internet Connection System Operating System

Microsoft Internet explorer 6.0 or higher Dial-up connection (Modem at a minimum of 28.8/33.6 Kbps) Pentium 3 and above. RAM 128 MB or above Windows 98/2000 or Windows XP

BENEFITS NSE& BSE Access Flexibility of trading on both the NSE & BSE via a single screen. Fully Customizable display – The save desktop option allows you to save your created trade screen layout, so the next time you access the application the created layout is not lost

Integrated Accounts (Bank. Demat & Trading) –

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Integrates your banking, broking and demat accounts. This enables you to trade in shares without going through the hassles of tracking settlement cycles, writing cheques and Transfer Instructions, chasing your broker for cheques or Transfer Instructions etc. Live order status – Tracking all your orders is made easy through the order status screen. Further drill down into all details pertaining to an order is available in the order detail sub report Track your orders – Track your stock order and trades Dynamic buying power – Reflects your credits and debits instantly on every trade execution. No need to refresh each statement to know your latest buying limits Works behind a Proxy – This platform can be accessed on any Internet enabled network. You can access it even from your place of work Back Office access – View segment wise ledger bills and contract notes, trades, positions, account contract notes, trades, positions, account balance, realized/unrealized profit & loss, and buying power all in real time

SmartINVEST Smartinvest is a browser-based system designed for customers who transact occasionally. It is ideal for investors who believe in the Buy and Hold approach towards investment in equities. SmartInvest's capability as a browser-based trading platform gives you the benefit of real-time streaming data with the flexibility of trading on any Internet capable system. With access to both the NSE & BSE, you are in the driver's seat when routing your order to the best price on either of

the exchanges. Smartinvest sophisticated yet easy to use point and click order entry interface allows you to react more quickly to the markets and make better decisions.

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FEATURES  Instant Loading  Works behind a Proxy  Live Streaming quotes  Multiple Watch lists  NSE& BSE Access

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 Single order form for Cash and FnO  Point and Click order entry  Hot Key Functions  Market Depth Window  Back Office access SYSTEM REQUIREMENT

Browser Type Internet Connection System Pentium Operating System

Microsoft Internet Explorer 6.0 or higher (Java enabled) Broadband/Dial-Up connection (Modem at a minimum of 28.8/33.6 Kbps) 3 or 4 GHz or best available at market RAM (Physical) 128 MB or better Windows 98/2000 or Windows XP

BENEFITS

Instant Loading The browser-based applet system allows you instant access to your account with no wait time, unlike other systems that take a few minutes to load. Works behind a Proxy This platform can be accessed on any Internet enabled network. You can access it even from your place of work Live Streaming quotes Keep an eye on the stocks you care about most with streaming, real-time quotes and customizable market data. Color-coded price changes help you to spot trends and react to them quickly

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Multiple Watch lists The new watch list option allows you to create upto 10 watch lists. Each watch list can be personalized by inserting securities which you would like view as a group NSE& BSE Access Flexibility of trading on both the NSE & BSE via a single screen Single order form for Cash and FnO Single order form offers you the convenience of transacting in various segments of the market without having to switch between multiple windows Point and Click order entry Makes order entry quick and simple with a click on the security the same gets inserted into the order form on your trade screen Hot Key Functions Using a single keystroke (Hot Key) function you can achieve important tasks very similar to a broker's terminal. Accessing important reports is also one keystroke away Market Depth Window It gives an immediate "at a glance" info about the stock you are following. The view provides the best 5 bid and offer quotes and the outstanding order quantities Back Office access View segment wise ledger bills and contract notes, trades, positions, account balance, realized/unrealized profit & loss, and buying power all in real time

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SmartTRADE

SmartTrade is an EXE based desktop software designed for active traders who transact frequently to capture favorable short-term price movements. The platform offers active traders the tools they need to make critical decisions with confidence. SmartTrade is designed and built from the ground up to address the needs of active traders. SmartTrade makes the most of state-of the-art technology to deliver power, speed and reliability. Through an easy-to-use interface, users are provided with the same tools and advantages that the professionals enjoy.

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FEATURES

 Fully Customizable display  Dynamic Charts with Indicators  EOD Charts  Real-Time market data  Advanced Alert capabilities  Live order status  Track your orders real time  Real time position updates  Dynamic buying power  Derivative chain  Lock terminal option  Message window docking

SYSTEM REQUIREMENT Browser Type Internet Connection System Operating System Microsoft Internet Explorer 6.0 or higher (Java enabled) Broadband/Dial-Up (Modem at a minimum of 28.8/33.6 Kbps) P 3 or 4 GHz or best available at market RAM 128 MB or better Windows 98/2000 or Windows XP

BENEFITS

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Fully Customizable display The save desktop option allows you to save your created trade screen layout, so the next time you access the application the created layout is not lost. Dynamic Charts with Indicators Provides you a wealth of charting capabilities and timing indicators, which allow

you to go right into the action with real-time daily charts, and intra-day charts. Watch price movements by minutes, days, or weeks. EOD Charts SmartTrade puts up to 5 years of in-depth market history at your command with the power to instantly back-test any trading strategy you design, before risking one rupee of your trading capital. Real-Time market data Get real time market data from both the NSE and BSE similar to what your broker gets. Advanced Alert capabilities Alert Window allows you to be free from watching every tick. Users can be notified once a security has reached the set parameters. Multiple securities can be monitored using the set parameters. These alerts can be triggered both visually and audibly. Live order status Tracking all your orders is made easy through the order status screen. Further drill down into all details pertaining to an order is available in the order detail sub report. Track your orders real time Track your stock order and trades in real-time.

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Real time position updates All your positions are updated automatically and instantly. No need to use the refresh button at all. Dynamic buying power Reflects your credits and debits instantly on every trade execution. No need to refresh each statement to know your latest buying limits.

Derivative chain This feature provides you with a list of all derivative contracts available for the selected security. To view derivative prices of a security just right click on the symbol and click on derivative chain. Lock terminal option If your system is unattended this function locks the trading platform for you and can be accessed again only on providing the proper login details. Message window docking This feature enables you to receive trading messages, intra-day trading calls, and messages from both the exchanges flashed real time onto your screen These are the various product ranges for its retail customer SMART POWER
Advance subscription value(Rs) Default delivery brokerage intraday brokerage CM (1 leg) 0.50% 0.05% 2500 0.35% 0.04% 12500 0.25% 0.03% 25000 0.20% 0.03% 50000 0.15% 0.02%

SMART ELITE

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intraday brokerage CM (2 leg intraday brokerage F&O (1 leg) intraday brokerage F&O (2 leg) option brokerage(which is high)

0.05% 0.05% 0.05% 2.5% or Rs.100

0.04% 0.04% 0.04% 2.5% or Rs 90

0.03% 0.03% 0.03% 1% or Rs.60

0.03% 0.03% 0.03% .75% or Rs.40

0.02% 0.02% 0.02% .60% or Rs.30

ONLINE FUND TRANSFER IISL have tie up with 5 banks, which are. HSBC, HDFC, IDBI, CITI, AXIS bank , for online money transfer

4. LITERATURE REVIEW

ONLINE TRADING INFRASTRUCTURE The emergence of online exchanges has facilitated faster transactions by providing online trading portals and brokerage houses ease and flexibility. The Internet has indeed opened up new opportunities for conducting the business. The worldwide stock exchanges has made a major shift from the traditional method of trading and now conduct a bulk of its business online through its brokers and partners. In the developed countries majorly all the exchange transactions are conducted online. The trend took off slowly in India and the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) two of the largest exchanges in India have been conducting online trade successfully for some time.

WHY ONLINE TRADING ENTERED LATE IN INDIA? The Indian exchanges and brokering houses have been very slow in moving their transactions online and the major reason has been the lot government regulations. The initial delay was due to laying down the specifications for creating Closed User Groups (CUGs). This issue was resolved

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between the Department of Telecommunications (DoT) and the Finance Ministry around 1998 and after that soon came the online trading portals like IL&FS investsmart, ICICIDirect.com, motilaloswal.com, sharekhan.com etc. Connectivity related issue was perhaps the most important technological factor.RBI made regulation that it is mandatory for company to store at least 7 year financial and transactional data. In the non-stop, 24 hours a day, seven days a week world of investing, we are able to  Obtain investment news around the clock  Check quotes on exchanges all over the world – day or night

 Easily compare one investment to another via numerous ratios, charts, graphs, and tables  Screen for the best investments to fit our individual goals and requirements  Trade stocks as easily and quickly as professional traders  Calculate retirement needs based on various scenarios  Regularly monitor portfolios and make necessary changes quickly and almost effortlessly  Control the routing of individual trades for the best possible price and execution Even many years after the launch of the first online brokerage firm, there remain a large contingent of individual investors who still pick up the phone and call their stock broker to buy and sell investments. However, every year a growing number of investors are placing their trades using online brokers. INDIAN EXCHANGES: NSE and BSE The NSE and BSE are among the largest exchanges in the country handling very large daily trading volumes, support large amounts of data traffic, and have a very large nationwide network. The trading volume in year 2000 was huge with the average daily turnover in the capital markets segment at NSE is around Rs 2300 crore and in the derivatives segment, around Rs 1300 crore.

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The average daily traffic volume was around one million trades per day in the capital markets segment and around 50,000 trades per day in the derivatives segment and there were around 13,000 registered users in both segments and an average of around 9500 users is logged in at a time. At BSE the average daily turnover in 2001-2002 (April-March) was Rs 1244.10 crore and the number of average daily trades was Rs 5.17 lakh. THE NETWORK DESIGN Any online exchange should always be-on, safe, secure, redundant and should have adequate backup & recovery processes. The Vice President of NSE-IT G.M Shenoy tells that the basic design

objective of NSE was to provide fair, equal and transparent access across all NSE nationwide locations and to provide connectivity to the trading members as soon as possible. RECOMMENDATIONS OF SEBI The SEBI has also played an important role in the issue of the guidelines regarding online trading so that the chances of fraud and misrepresentation are minimized.The stock brokers which are being registered with Securities Exchange Board of India (SEBI) will have to apply to stock exchanges for a formal permission. The following conditions must be fulfilled The online trading company must have a minimum net worth of Rs 50 lakh  The encryption technology should be there in the system used by the brokers to ensure the provision for confidentiality ,security ,justifiability and reliability of data .The user id, first level and second level password, automatic expiry of passwords at the end of a reasonable period,  The brokers must maintain adequate back-up systems and data storage capacity which must be checked by the stock exchanges.  SEBI has recently announced that to reduce the fraud cases each and every broking house has to give back the full amount of customer after each three month, they will have to show the zero balance of every customer’s account at the end of every 3 month

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 The minimum qualification must be laid down by the stock exchange to ensure that the persons hired by the brokers must have the proper qualification regarding trading so as to guide the clients and he can communicate regarding trading instructions.  To ensure the authenticity and accuracy of data a certification agency must be appointed using the certification technologies when notified by the government or the SEBI.  The better client and the broker relationship to be maintained.  To determine the risk associated with the clients the brokers must have the have sufficient verifiable information about clients and the stock exchange must ensure it.

 The clients must be taken into an agreement stating about all the obligations and rights including the minimum service standards to be maintained by the service provider broker for services specified by SEBI/exchanges for Internet-based trading from time to time.  The web site of the broker providing the online trading facility should contain information rules and regulations affecting client broker relationship, arbitration rules, investor protection rules, etc meant for investor protection. It should also provide and display prominently hyper link to the web site/page on the web site of the relevant stock exchange(s) displaying rules/ regulations/circulars. Ticker/quote/order book displayed on the web site of the broker should display the time stamp as well as the source of such information.  An e-mail should be sent to he investor for the confirmation of his Order or trade.  The limits of trading and exposure provided to the client must be set on system-based control and brokers and exchanges must ensure it. The limits must be predefined by the broker on the exposure and turnover of each client. The system of broker should be such that it is capable of assessing the risk of the client as soon as the order comes in. The system should inform the clients client the reports on margin requirements, payment and delivery obligations etc.  As per the regulations the Contract Notes must be issued to clients within 24 hours of the trade execution.

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 Cross trades of the clients will not be allowed with each other to the brokers using Internetbased systems for routing client order and all orders must be offered to the market for matching. A separate working group has been set up to look into the surveillance and enforcement-related issues arising due to Internet-based securities trading. However, general anti-fraud provisions (SEBI Fraudulent and Unfair Trade Practices Regulations, 1995) will apply to all transactions involving securities or financial services, regardless of the medium

5. ONLINE TRADING
Online trading involves investment activity which takes place over the Internet and it does not require physical inclusion of the broker. An investor has to register with an online trading portal like Investsmart.in, ICICIdirect.com,Religare, motilaloswal.com and sharekhan.com and many companies like that and investor gets into an agreement with the firm to trade in different securities according to the terms and conditions given on the agreement. As the servers of the online trading portal are connected all the time to the stock exchanges and designated banks the order processing is done in real time and investors can also have updates on the trading. They can also check the status of their orders either through e-mail or through the interface that it cannot be accessed by a third party. Some options are usually given to users such as to link their bank account, Demat accounts and brokerage accounts into a single interface. A single window is also there for all exchanges and a single screen is there for the complete order routing mechanism. The hardware used comprises Web and application servers, switches, routers, firewalls and security devices, and specialized appliances. There are two broad models in play in the online brokerage space Bank-backed firms  Entrepreneur-floated firms.

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Bank-backed brokerages such as ICICIdirect and HDFC Securities have expanded on the basis of their brand name and the trust of investors in them. The integrated 3-in-1 accounts offered by these bank-backed brokerages help their parent bank by giving it accounts along with float income. In second case i.e. Entrepreneur-backed companies like Investsmart, Indiabulls, Sharekhan, Religare and IndiaInfoline have expanded by offering customers a mix of online and offline accounts, higher margin finance amounts and lower brokerage rates. Though the bank based has performed better but the latter have not lagged too far behind. The reason why online trading has developed over conventional offline brokerage firms is that this conventional method struggled with unfavorable economies. Staff cost is just one

example of it. As the markets opens for 335 minutes a day one dealer can at best execute 500 trades in a day while online company like ICICI direct executes 150,000-200,000 trades a day on the National Stock Exchange alone accounting for 3-4% of NSE trades of 5 million a day. It would require a large amount of dealers to service this demand. Besides the salary costs it would also demand huge expenses in real estate and support systems. The offline model has got a downfall in the form of lower bandwidth and IT costs and the cost of bandwidth has fallen to one-eighth of what it was in 2000 giving online broking an advantage especially in the case of lower-volume retail investors. In 2004, 30% of volumes on the NSE comes from this and it gone up to 50% in year 2008-2009 providing explosive growth for online broking in India. To be a successful trading portal it will definitely depend on bunch of services provided by it for an end-user. Most of the portals charge a small registration fee and brokerage based on various conditions but it's important for the organization to keep focussed on customer-centric services and delivery models to actually enjoy the most attention.

ADVANTAGES OF ONLINE TRADING 1. Provides with the Freedom of Information The Internet provides a new sense of controlling our financial future as the amount of investment information available online is truly outstanding. An investor can-

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 Know the price of any stock he desires at any point time on the internet.  An investor can review the price history of any stock in chart format online  An investor can follow in-depth the events happening in the market  Helps an investor in receiving a wealth of free commentary and analysis about stock markets in the global economy  Helps an investor to conduct an extensive financial research of any company he desires  He may also consult with other investors online present around the world Some online stock broking companies provide real-time stock quotes, daily roundups of the stock market, expert commentary, and a deep community of fellow investors.

2.

Provides Control to Investors Money

When an investor wants to buy or sell stock he no longer need to call his broker on the phone thus helping in the execution of the order instantly on the internet.

3.

Provides access to the market Through the sophisticated information streams, dedicated trading platforms and Sophisticated tools the investor can access the markets which provide more agility in buying and selling stocks

.

4.

Ensures the best price for investors Some companies like Investsmart (IL&FS)specialize in the techniques which offers

the best price deals for the buy and sell orders of the investors and traders providing the high level of transparency by displaying of information relating to the specific stocks and

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company profiles which helps in getting the best quote for the orders.

5.

Online trading offers greater transparency Online trading offers the investors with greater transparency by providing with an

audit trail. The process involves a complete integrated electronic chain starting from order placement, to clearing and settlement and finally ending with a credit into the depository account of the investor. All these stages are inspected which brings the transparency into the system.

6.

Provides hassle free trading Online trading provides an integration of the bank account, trading account and

demat accounts, which leads to easy and paperless trading for the client. 7. Online trading allows instant trade execution Online transactions helps in the quick execution of the entire trading transaction right from logging to the traders site and to the settlement of the bank account in a very short period of time. 8. It provides a level playing field Trading online gives even the smallest retail investor access to information which was earlier available only to the big traders. It has provided with a level playing field for all investors in the securities market. 9. Online trading reduces the settlement risk This method of trading reduces the settlement risk for the investor as when a short

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sell order is played the orders are squared off at the specified cut-off time and are not allowed to be carried forward. 10. Provides live financial news & analysis The online sites also provide live terminals which provide streaming news to give investor the latest financial information as it occurs. 11. Online help desk Some companies provide online help desk an investor cancan contact the Tele Trading Executives from the Tele Trading team during and after market hours and can clarify questions. 12. Instant order trade confirmations Through online trading every trade is confirmed immediately and investor receives an on-screen confirmation following every trade with full details for the investors records which avoids costly errors that would have been discovered when it is too late. 13. Keeps Information Secure As per the guideline provided by SEBI every effort has to be made to keep the investors account and personal information secure by use of encryption technology and updated security technology to advanced fraud prevention measures. DISADVANTAGES OF ONLINE TRADING  In online terminal, investor can’t get customized expert advice, whereas in offline the broker gives suggestions according to investors strategy (i.e. short term or long-term)  Brokerage is high compared to offline.  Privacy is less due to hacking scandals  Transactional errors due to technical problems

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6. THE EMERGENCE OF ONLINE TRADING IN INDIA
The Indian trader is being fancied by the democratized world of online trading or also known as e-broking. The regular and attractive advertisements in the print media and electronic media have added to this fancy world But as we compare to the Western countries, in India online trading has not still grasped the market , but has done a very important amount of progress in the past years and the future of online trading is bright. That is why many new companies are coming into this form of business structure and the existing companies are changing to this new format besides offline and other traditional forms of business. With only a mere share of 10% online trading a combined gross turnover of around Rs.

12000-13,000 crores handled by the BSE and NSE together there is a much greater scope for online trading. The various player who’s offering and facilities is different according to the individual investors. This will help us understand what processes and strategies competitors’ have adopted to attract and retain investors and satisfy their investments needs. At present some of the dominant players in the online trading market of share market are –

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ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in IPOs, Mutual Funds and Bonds.

Type of Account ICICIDirect offers 3 different online trading platforms to its customers: Share Trading Account Share Trading Account by ICICIDirect is mainly for buying and selling of stocks in BSE and NSE. This account allows Cash Trading, Margin Trading, Margin Plus Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone. They also provide installable application terminal based application for high volume trader. Wise Investment Account Along with MF and IPO investing in BSE and NSE, Wise Investment account also provide options to invest in Mutual Funds, around 19 Mutual Fund companies and bonds. ICICI Direct offers various options while investing in Mutual Funds like Purchase Mutual Fund, Redemption and switch between different schemes, Systematic Investment plans, Systematic withdrawal plan and transferring existing Mutual Funds in to electronic mode. This account also provides facility to invest in Government of India Bonds and ICICI Bank Tax Saving Bonds. ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs, Bonds and stock trading. Active Trader Account Active Trader account gives more personalized investment options to the investors. It allows investor to use online and offline stock trading. It also provides with

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independent market expertise and support through a dedicated Relationship Manager from ICICI. Active Trader also provides commodity trading.

Brokerage and fees

Account opening fees : Rs 975/- (non-refundable) Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of demats transaction charges, service taxes and courier charges for contract notes. It ranges from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to 0.75% on delivery based trades.

Advantages of ICICIDirect

 3-in-1 account integrates your banking, broking and demat accounts. All accounts are from ICICI and very well integrated. This feature makes ICICI the most interesting player in online trading facility.  Unlike most of the online trading companies in India which require transferring money to the broker’s pool or towards deposits, at ICICI Direct you can manage your own demat and bank accounts through ICICIdirect.com..  Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all from one website. General Insurance is also available from ICICI Lombard.  Trading is available in both BSE and NSE.

Disadvantages of ICICIDirect

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Getting access to ICICIDirect.com website during market session can be frustrating.  ICICI Direct brokerage is high and not negotiable.  Not all stocks are available under Margin Plus  Facility for linking account of ICICI Bank Only

Reliance Money, A group company of Reliance Capital Limited, is the financial services division of the Rs 10'000 Crore Reliance Anil Dhirubhai Ambani Group. Reliance Money has over 22 lakhs customers and more than 10'000 branches in around 5000 cities in India. Company is among the largest broking and distribution house of financial products and having share of more than 3% of total stock market volume at BSE & NSE. RelianceMoney.com enables its customer to invest & manage most of the services provided by Reliance Money including Equity (Stock) Trading, Commodity Trading, Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General insurances, Money Transfer, Forex exchange, Gold Coins and Credit Cards Services. Company recently entered in to Wealth Management with tools like investment in equity-linked portfolio management services, structured products, insurance and mutual funds. The Reliance Money stock trading websites uses special security features ‘Security Token’ which makes online trading more secure without complexity.Stock Trading through

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RelianceMoney.com is available for BSE and NSE stock exchanges. Offline trading is also available through Reliance Money partners in more than 5000 city across India and through phone by dialing 022-39886000. The investment options available with Reliance Money online portal are as below:  Equity (Stock) Trading at BSE, NSE and NSE F&O  IPO Investment  Derivatives Trading  Forex Trading  Commodity Trading (Gold, Silver, Crude etc....) at MCX, NCDEX and NMCE.  Mutual Fund Investment  Life & General Insurance  'Pure Swiss' Gold Coins (99.99% pure, 24 carat)

Trading platforms

Reliance Money provides 3 different trading platforms for equity trading: 1. Insta Trade 2. Fast Trade 3. Easy trade

Reliance Money Technical Analysis (A paid service) Reliance Money offers a simplified, automated, sophisticated technical analysis to Indian retail broking consumers with the help of Recognia's Technical Analysis tools. Recognia, a Canada based company, has proprietary pattern recognition technology capable

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of recognizing patterns in the price charts of any publicly traded financial instrument including stocks, bonds, funds, commodities, currencies and indexes. The technical services are available for introductory free 7-day trial period to Reliance Money users. Post the trail period, this service is available to users at a nominal subscription of Rs. 99 for 3 months/ Rs. 179 for 6 months/ Rs. 299 for a year, i.e., less than Re 1 a day. Reliance Money Brokerage and fees: Reliance Money offers lowest brokerage rates in today's online stock trading industry in India. The brokerages are as low as 0.075% for delivery based trading and 0.02 for now delivery. For more detail about Reliance Money’s brokerage and fees visit the below section of this webpage. Advantages of Reliance Money  Extra security features with 'Security Token’', which is the most secure and tested technology in computer world.  Simple, easy and fast online stock trading.

 Almost all investment options are available under one account including Equity Trading, Derivatives, Forex, Commodity, IPO, Mutual Funds and Insurance.  Branches are available in all major cities and the number is growing.

Disadvantages of Reliance Money

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 Customer Service is not that good.

Sharekhan is online stock trading company of SSKI Group, provider of India-based investment banking and corporate finance service. Sharekhan is one of the largest stock broking houses in the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI) has been among India’s leading broking houses for more than a century. Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives, commodities, depository services, online trading and investment advice. Trading is available in BSE and NSE. Along with Sharekhan.com website, Sharekhan has around 510 offices (share shops) in 170 cities around the country. Share khan has one of the best state of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. You can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. You can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more.

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Type of Account

Sharekhan Classic account

Allow investor to buy and sell stocks online along with the following features like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time portfolio tracking with price alerts and Instant credit & transfer.  Online trading account for investing in Equities and Derivatives  Free trading through Phone (Dial-n-Trade) • • • • • Two dedicated numbers for placing your orders with your cellphone or landline. Automatic funds transfer with phone banking (for Citibank and HDFC bank customers) Simple and Secure Interactive Voice Response based system for authentication get the trusted, professional advice of our telebrokers After hours order placement facility between 8.00 am and 9.30 am

 Integration of: Online trading + Bank + Demat account  Instant cash transfer facility against purchase & sale of shares  Investments and trade confirmations by e-mail  Single screen interface for cash and derivatives

Sharekhan Speed Trade account

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This accounts for active traders who trade frequently during the day's trading session. Following are few popular features of SpeedTrade account.  Single screen interface for cash and derivatives  Real-time streaming quotes with Instant order Execution & Confirmation  Hot keys similar to a traditional broker terminal  Alerts and reminders  Back-up facility to place trades on Direct Phone lines

Brokerage:

Some stock trading companies charge direct percentage while others charge a fixed amount per Rs 100. Sharekhan charges 0.5% for inter day shares and 0.1% for intra day or you could say Sharekhan charges 50 paise per Rs 100.

Advantages of Sharekhan:

 Online trading is very user friendly and one doesn't need any software to access.  They provides good quality of services like daily SMS alerts, mail alerts, stock recommendations etc.  Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC Sec, etc., so investor not really needs to open an account with a particular bank as it can establish link with most modern banks.

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Disadvantages of Sharekhan:

 They charge minimum brokerage of 10 paisa per stock would not let you trade stocks below 20 rs. (If you trade, you will loose majority of your money in brokerage).  Lots of hidden rules and charges.  They do not provide facility to book limit order trades during after-hours.  Classic account holders cannot trade commodities.  Cannot purchase mutual funds online.

Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, was set up in 1994. Kotak Securities is a corporate member of both Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Currently, Kotak Securities is one of the largest broking houses in India with wide geographical reach.

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Kotak securities online trading, is the online trading portal of the Kotak Securities Ltd, the leading stock broking house of India. The online division of Kotak Securities Limited provides services like internet broking services, online IPO and mutual fund investments. ACCOUNT TYPES: Kotak offers different account types according to users requirement:

Kotak Gateway

Kotak securities gateway account opens the gateway to a world of investing opportunities for beginners. Kotak gateway user can trade anywhere, anytime using internet. Kotak also offers call and trade facility. They provide sms alert, research report, free news and market updates. Best feature of Kotak gateway is call and trade facility. Anybody can activate Kotak securities gateway account with any amount between Rs 20,000 to 5, 00,000. This can be in form of cash deposit or the value of the shares you buy. Brokerage will be charged based on the account type. For intraday trading brokerage is .06% both sides for less then 25 lakhs and .023% for more then 25 crores.

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Kotak Privilege Circle This is the premium account for its users. Along with kotak gateway account benefits they provides independent market expertise and support through a dedicated relationship manager and a dedicated customer service desk which provides assistance in opening accounts, handling day-to-day problems, and more. They provides KEAT premium which is an exclusive online tool that lets you monitor what is happening in the market and view your gains and losses in real-time. One can activate Kotak securities privilege circle account with any amount more than Rs. 10, 00,000/- as margin, by way of cash or stock. For intraday trading brokerage is .06% both sides for less then 25 lakhs and .03% for more then 25 crores.

Kotak High Trader

This is the best offer for daily trader or intraday traders. This is an Auto Square Off product where you can enjoy the benefits of intra-day trading. Trader can get the 6 times exposure on the margin. They provide all the benefits which kotak gateway and privilege account provides. Trader can apply paper free order for IPO. One can activate Kotak securities high trader with any amount less than Rs 5, 00,000/as margin, by way of cash or stock. The minimum brokerage that is applicable in the Kotak high trader account is 4 paisa on delivery and 4 paisa in the cash segment.

Kotak Freeway

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Frequent trader use this account type because freeway account enables it’s users to trade as many times as they like - at a fixed brokerage. One can activate Kotak securities freeway with any amount less than Rs. 1, 25,000/as margin, by way of cash or stock. They charge fixed brokerage of Rs.999/- a month and on delivery transaction brokerage is .59% on less then 1lakhs and .18% on more then 2 crores.

Kotak Flat

This product is best suited for the needs of the Indian retail investor who actively invests through the internet. Kotak flat introduces the international trend of charging brokerages on per trade basis. Brokerage rate works up to 0.18% on delivery trades and 0.018% for intraday trades.

Kotak Assist

This account most suits to long term investors. This account provides Complete assistance on all your financial investment.

Brokerage and Account opening fees: A trading account in Kotak requires you to have a minimum of Rs.1000 to start with, the bank account to have a minimum of Rs.2500.

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Brokerage:  For Intra-day trading, Kotak brokerage is around 0.05%.  For delivery trading, Kotak brokerage is around 0.45%.

Advantages of Kotak Securities Limited

 Kotak provides a Call & Trade facility to its customers wherein they can place and track their orders through phone when they are away from home.  They provides daily SMS alerts, market pointers, periodical research reports, stock recommendations etc.  Kotak provides exclusive online tool to monitor what is happening in the market and also investor can view gains/losses in real-time.

Disadvantages of Kotak Securities Limited  In online trading sometimes delay comes. So it can be frustrating

Indiabulls is India's leading Financial Services and Real Estate Company having presence over 414 locations in more than 124 cities. Indiabulls Financial Services Ltd is listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock Exchange and London Stock Exchange.

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TYPE OF ACCOUNT

Indiabulls Equity Trading Account

Indiabulls Equity Trading Account is standard Online trading account from India bulls and along with online trading it also provides priority telephone access that gives you direct access to your Relationship Manager and full access to 'Indiabulls Equity Analysis'.

Power Indiabulls

Power Indiabulls trading terminal is the most advanced new generation trading platform with great speed. This trading terminal is built in JAVA. Power Indiabulls is extremely reach in features including Live Streaming Quotes, Fast Order Entry and execution, Tic by Tic Live Charts, Technical Analysis, Live News and Alerts, Extensive Reports for Real-time Accounting.

Brokerage and fees:

Account opening fees: Rs 1200/- (One time, non-refundable) as below: 250/- Equity Trading Account opening charge 200/- Demat Account opening charge 750/- Software changes

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Advantages of Indiabulls

 Brokerage is less compare to other online trading companies.  Provide trading terminal 'powerbulls', a java based software. It's very fast in terms of speed and execution.

Disadvantages of Indiabulls  Faces lots of complaints regarding portal breakdown.

Motilal Oswal Financial Services (MOSL), a leading brokerage firm, has exhibited robust and consistent growth in both institutional and retail broking. An established brand name and extensive geographic network covering 1,339 locations in over 426 cities and towns would provide it ample opportunities to cross-sell products and services. It has also forayed into related businesses like investment banking, private equity and asset management. We believe the stock offers quality exposure to the domestic equity broking and financial services market, which has impressive growth potential. Strong competitive positioning MOSL is one of the leading stock broking firms in India with a rapidly growing client base and wide distribution network. A respected research presence and extensive reach has resulted in robust growth in its retail business. The company also has a strong institutional

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equity business. It has consistently improved its market share in terms of traded volumes on the stock exchanges

Diversifying into related businesses MOSL has forayed into related business like investment banking, private equity and asset management. Though all these business are linked to capital market, we believe the move would bring in various diversification benefits for the company going forward Customized investment management services MOSL offers customized investment management services to its retail clients. These services include planning, advisory, execution and monitoring a range of investment products. It also provides wealth management services. The company has classified its clients into three segments – Mass Retail, Mid-Tier Millionaire and (PCG) Private Client Group. According to the needs of each segment, products and services are offered through the company’s business locations and online channels. MOSL has a discretionary portfolio management business. The company is seeking to build this business rapidly. The target customer segment for wealth management business would largely be the HNW (high net-worth) segment. The growing client bases of its broking and distribution businesses would be a captive source for cross-selling these products. MOSL has recently launched a separate branded product (Purple) for catering to the needs of this segment.

Strategy adopted by Motilal Oswal

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Religare Securities Ltd is a Ranbaxy promoter group company, is one of India’s largest and fastest growing integrated financial services institutions. The company offers a large and diverse bouquet of services ranging from equities, commodities, insurance broking, to wealth advisory, portfolio management services, personal finance services, Investment banking and institutional broking services. Religare’s retail network spreads across the length and breadth of the country with its presence through more than 900 locations across more than 300 cities and towns. Having spread itself fairly well across the country and with the promise of not resting on its laurels, it has also aggressively started eyeing global geographies.

Unique features and benefits of trading through Religare:  Trade Reward Trade Rewards is a unique offering from Religare that gives you dual benefits of hassle free investment experience online and an opportunity to earn while you invest with us.  Zero Brokerage:

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“Break the shackles”. Get freedom from brokerage and avail zero brokerage on your trades through us.  Exposure up to 20 times on your margin: Allowing you the freedom to trade without hassles throughout the day without having to worry about your cash margin. You can get exposure (on cash

Segment) as high as 20 times for intraday trades. Of course conditions apply on above two.  Interest on cash margin: Even while you are waiting to make your next trade or online investment, your unutilized cash does not lie idle with us. You earn interest on your unutilized cash margin.

The indiaInfoline group, comprising the holding company, India Infoline Limited and its wholly-owned subsidiaries, straddle the entire financial space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, portfolio management services, Mutual Funds, Life Insurance, Fixed Deposits, Gold Bonds and other small savings instruments to loan products and investment banking. Website of India Infoline for trading is www.5paisa.com. The company has a network of 976 business locations (branches and Sub-brokers) spread across 365 cities and towns. Today it has more than 800000 clients

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Trading Platform 5Paisa offers 2 different online trading terminals to its customers: Investor Terminal (IT) Investor Terminal is 5Paisa's equity trading terminal for low volume trader. This is web based terminal and could access from anywhere. This product provides limited features in comparison of Trader Terminal, which is another product provided by 5Paisa. Trader Terminal (TT) Trader Terminal is for high volume equity traders. Trader Terminal provides high volume trading with powerful interface and fast order execution. Brokerage and Account opening fees: Account opening fees Rs 500/- onetime non refundable Brokerage Brokerage: 5 paisa offers charge only 5 paisa for Rs100 of intraday trade done, which is 0.05% brokerage. In case of in delivery trade, they charge an additional 0.20% for back office and securities handling. So these are the key players of the Indian online trading market Brokerage Comparison Sheet of key player of the Indian market Online Broker
IL&FS investsmart ICICIdirect Indiabulls Religare

Brokerage for Delivery* (%) .50-.15% 0.75 - 0.25 0.50 - 0.25 0.30 - 0.20

Brokerage for Intraday trading* (%) .05-.02 0.375 - 0.125 0.10 - 0.50 0.03 - 0.02

Account opening charges (Rs) 950/975/900/500/-

AMC (Rs) 300 500/NIL NIL

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Sharekhan Kotak Securities Motilal Oswal Reliance Money IndiaInfoline

0.50 - 0.03 0.59 – 0.18 0.50 - 0.30 0.50 - 0.10 0.50 - 0.25

0.10 - 0.03 0.06 – 0.03 0.15 - 0.03 0.03 - 0.01 0.10 - 0.05

750/750/500/750/555/-

300/350/300/200/NIL

Comparison of Allied Services
Online Broker Bank Alliance
HSBC,CITI.HDFC, IDBI,AXIS ICICI ICICI, IDBI, HDFC, UTI, SBI Axis, ICICI, BOI, Indian Overseas Bank, Yes Bank, HDFC, IDBI, IndusInd, PNB ICICI, HDFC,Axis,IDBI SBI Kotak Mahindra, HDFC, Citibank, UTI, ICICI Axis, Citi, HDFC, ICICI

Third Party Product*
YES

Buy/Sell Online/Offline
BOTH

IL&FS investsmart ICICIdirect Reliance Money Sharekhan Indiabulls Religare Motilal Oswal Kotak Securities IndiaInfoline

Yes Yes Yes Yes Yes Yes Yes Yes

ONLINE ONLINE

ONLINE BOTH BOTH OFFLINE ONLINE BOTH

*Third party products includes Mutual Funds, Fixed Deposits (corporate), Insurance, etc.

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Earlier the organization’s which provided the facility of online trading was not safe enough to invest but some of the changes in the past years in the Indian share market have created the interest of trading in the shares by the people. Broadly we can classify three important factors which have contributed to the development of online trading in IndiaFirstly the major step was taken by the National Stock Exchange (NSE) in the year 1994 which allowed the electronic trading and seeing to this various other stock exchanges in India followed soon. This helped in making the fast, accurate and transparent transactions saving a lot of time then the traditional method of trading. The investors were also saved by the clutches of the fraud brokers at the times when the clients were not aware of the true prices of the shares. Secondly, in the year 1996 the dematerialization of the shares came (also known as DEMAT) which avoided the online presence of shares in an electronic form avoiding them from theft, pilferage or from other losses like counterfeiting and frauds regarding share transfer. The third step was the rapid growth of computer education and learning of internet by the people. With the evolving of internet the online trading became a hit and the investors became confident in investing just with a click of a mouse.

With the happening of such events the ratio of trading has improved a lot. As it takes less time people praise this technology for trading purposes. Some people who traded rarely now even trades 2-3 times every day as it provides edge of researching about companies on the internet. The number of small investors is increasing on the daily basis that trades on the internet.If a person invests or trades in equities, derivatives, commodities etc through the use Internet it is known as online trading enabling the investor to connect electronically to buy or sell stocks, derivatives etc with the other investors. This can be done with the help of online service providers like investsmart, indiaInfoline etc. A person can access a stockbroker's website through an PC connected to Internet and can place his orders. The benefits are A person can see the latest market movement through streaming quotes.  Reduces time lag due to self-execution and instant confirmation.  Empowers traders to have a complete control over their trading decisions.  A person can access his accounts and related information on the Website.

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 Provides greater convenience of trade as a person can trade from home or other convenient location.  It is cheap in terms of cost associated and offers reduction in overheads  A trader can view the historical charts on his computer. The Internet revolution has changed the way to communicate and the way to do business in today’s society bringing us closer and closer to vital sources of information. It provides us with means to directly interact with service-oriented computer systems tailored to our specific needs; therefore, we can serve ourselves better by making our own decisions.

This new access by the online trading customers to low-cost transactions and cutting-edge, real-time market information that formerly belonged only to brokers has opened up extraordinary new investment opportunities as well as a crucial need for state-of-the-art information. Today the investors use the Internet Client-Server technology to buy and sell the securities at an instant at any point of time. People investing online have reached the proportions. Online trading allows an investor to buy and sell shares on the exchange through Internet and helps in the direct control of his investments.

7. GROWTH OF ONLINE TRADING

According to an article by Krishnamurthy B in 2005 after inception of online trading in India in the year 2000 online trading is gained momentum with trading volumes growing by 150 per cent per annum in the years 2003-2005 and it was more than approx. 200% in the year 2008 The volume of all trades executed through the Internet on the National Stock Exchange had grown from less than Rs 100 crore (Rs 1 billion) in June 2003 to over Rs 700 crore (Rs 7 billion) in July 2005 which was a handsome growth in the year 2005in the starting of 2008 the growth of online share was good

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but at the mid of the year when subprime crisis affected India including all over the world, market of online trading got shrunk by more than 50% Now the growth of online trading is on its right track ,Indian stock market has been announced the one of the Safe and stable market of the world, so here in India the online trading is growing like anything in comparison to the whole world At the end of July 2008, there were more than 168 registered brokers on the NSE and the number of Internet trading subscribers to about 2.024 million. In the year 2007 India has 8 crore (80 million) internet user, the % of internet user is growing in each year

At the same time the number of subscribers trading through the portal of Kotak Securities had gone up significantly by 150 per cent and the number of online trading customers had grown from 30,000 to 75,000. And the company expected to have at least 130,000 customers by the end of that fiscal. In the recent past years of 2005 ICICIDirect and Indiabulls recorded an annual volume growth of 100 per cent and Indiabulls had about 30 per cent of India's online trading volumes. Today the total volume of online trade in India is about 29-31% of total trades. According to brokers the better broadband connectivity across the country and wider awareness of equity as an asset class will raise the online trade volumes to over 50% of total trade.In India the demography is such that 75% of the population is under the age of 36 and more than 50% of the 75% is under age of 25 and this is another supporting factor The Chief Executive of Reliance Money Ltd says that online investing is still at a nascent stage in India and expects that Internet-based trading will eventually take about half of the total stock market trading as like with developed markets such as the US. Philippines has the highest online trade with about 55-60% execution of trade is online. The reason is because they had wider Internet connectivity years before India. The biggest challenge in India remains better Internet connectivity. The earlier Web-based technology used for Internet trading has been replaced by specialized software which gives real-time global data streaming rates to trader helping investors to

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analyze the market trends and helps in faster execution of trades. Earlier the investors made trade calls over the phone which sometimes led to the delays. Online share trading in India was at a boom in the end of 2006 with daily-traded volumes more than tripling from Rs 1,500 crore to Rs 5,000 crore in the last one year and terminals was set up in small towns such as Rajkot, Hubli and Vijayawada .In that year the share of online trading rose dramatically from 7% last year to 20% as a percentage of overall traded volumes. Due to this factor the top five US brokerage firms decided to make a foray into India in the next year driven by strategic interest. Also at that time non-metros accounted for half of the daily turnover of online trading.

Graph is showing the declining in the turnover of online trading in Indian stock exchange during slowdown in economy due to subprime mortgage crisis.

A crash of the market in the early February 2008 the investors remained away from online trading the turnover of the NSE from internet-based trading dipped to a daily average of Rs 1,648

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crore between February 1 and February 8 as compared with Rs 3,450 crore in January 2008 Rs 3,587 crore in December 2007 and Rs 4,417 crore in November 2007 in the exchange’s cash market segment. In the mid February 2008 it accounted for just 12% of NSE’s total cash turnover as compared with a high of 24% in November last year.
"Issues

that need to be addressed are education on cyber crime and the security solutions

around it," says Vinesh Menon, Deputy CEO & Head for Online Investment & Branch Channel, Bajaj Capital "It's a matter of time when we will see exponential growth in the online trading segment, not just through the computer but also through our mobile phones," adds Menon. With over 20 million investors,

India boasts of the third highest investor base in the world, unthinkable till a few years ago. The most online stock broking companies started from 2000 onwards because of development of global Internet economy and for years 2000 to 2003 the stock market was under a bear hug. The intense competition among a new wave of online brokerage companies hammered down brokerage rates from 1% (in 2000) to 0.25 %, or even lower to 5 paisa

The number of investors opting for online trading has gone up manifold, according to the recently published 'India’s Leading Equity Broking Houses, 2008' by Dun & Bradstreet (D&B). The publication says that less than 10% of the 191 broking firms surveyed reported huge growth in opening of e-broking accounts and some firms saw a surge in value of up to 400% in e-broking during 2007

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According to the report, numbers of e-broking accounts registered in 2007 have grown exponentionally. Indiabulls Securities Ltd added 4,51,611 accounts while a relatively new firm in the industry, Reliance Money added 2,15,678 accounts during the same time period. Motilal Oswal

Securities Ltd managed to add 19,065 accounts while Unicon Financial Intermediates Pvt Ltd could increase their e-broking accounts by 13,787 According to market watchers, the rise in the value of on line transactions is also because of sustained bull run witnessed in 2007, when the 30-share Sensex of the Bombay Stock Exchange (BSE) gained from 13,842 points to 20,207 points, a gain of 6,365 points (up 47%).

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E-broking is contributing a sizeable portion to the trading volumes and also to the revenue generated for leading stock broking firms. Some examples of the percentage contribution to trading volumes contributed by e-broking are 91% in case of Reliance Money, 62% for India Bulls, 20% each for ASL Capital and Shreyas Stock, 19% Angel Broking, and 15% Farsight Capital. In respect of revenues generated from e-broking, India Bulls (63%), Reliance Money (54%), Unicon Financial (30%) and Shreyas Stock (20%) reported higher shares in 2007. Ashika reported 98% growth in ebroking business in the first 10 months of 2007.

Another significant trend is the growth in international business of broking firms. Firms that reported presence of offices outside India include Reliance Money, Motilal Oswal, Karvy Stock Broking, JRG securities, Vogue and Bonanza Portfolio. HDFC Securities have 500,000 online customers’ deals in daily online trades worth Rs 250300 crore is also in the black. The revenues it had in 2007-08 is Rs 100 crore. HDFC Securities had revenues of Rs 67 crore and a net profit of Rs 7.21 crore in 2006-07. ICICIdirect has 1.5 million online broking accounts and parent ICICI Securities reported revenues of Rs 750 crore for March

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2008. The new player Reliance Money has 2 million online accounts trades worth Rs 2,000 to Rs 3,000 crore per day.

8. ANALYSIS PART
Ans.1 What is your education qualification?

INTERPRETATION the people who are dealing with the stock market either online or offline. mort of them are graduate,49%of the total respondent who are dealing with the stock market are graduate, then 16%

are post graduate and 22%people is having professional degree. So here this is showing that qualification up to graduation or more than that is in the favour of the online trading pattern

Ans. 2 What is your annual income?

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INTERPRETATION 58%respondent are having the income level of 100000-200000 ,21% is having 200000300000 , 12% in having300000-400000 , 7% of the total respondent are having income more than 400000 per annum and only 2% are having less than 100000 per annum. To invest in the stock market minimum 100000 or more than this should be the annual income level of the people. In India the per capita income in also increasing so we can say that there is a good opportunity for the online trading market.

Ans.3 What percentage of your monthly household income could be available for investment?

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INTERPRETATION According to the data 23% of the total respondent invest less than 5% of their income, 41% respondents are saying that they invest 5%-10% of their monthly income (which is highest) Whereas the 21% investor do the investment 10%-15% of their total monthly income,13 invest between 15%-20% of the total income and only 2% does more than 20% of their income invest in the market We can easily understand that 75% of the total population is having a good amount of investment, so the investment is their in the market, good number of people are ready to invest a good amount in the market 91% of respondent is in the income level of 100000 – 300000 (according to the last question analysis). So we can say that stock brokerage houses will have to do a good business with the help of Online trading system with few value addition services

Ans.4 Where do you often invest your money?

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INTERPRETATION Highest number of respondent is having their investment in the equity that is 65% whereas the investment available for the mutual fund, term deposit and insurance is 14% ,12% and 9% So the investor for equity is high which is again showing the n number of opportunity for online trading

Ans.5 what is the primary objective of your investment?

INTERPRETATION

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13% of the respondent invest the money for the reason capital appreciation but most of the investor is having same motive that is source of income and retirement plan, wealth preservation and education funding for children or other are only 10% From the analysis we can have idea that the main objective of the investor to earn the money through trading in stock market 77% of the respondent achieve their objective with the help of investment in the equity market, because most of the investment take place in the form of equity (explanation of 4th ans. ) So we can say that there is a huge potential in the market for the trading in the stock market

Ans.6 Do you owe a Computer?

INTERPRETATION 78% of the total respondent who are dealing with the stock market is having computer in their house and only 22% is not having computer in their house The people who is having computer that is 78% can also go for online trading which can be a large number of people who will go for online trading. they don’t need to do a additional investment for computer to go for online trading

Ans.7 To operate a computer is easy for me

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INTERPRETATION 76% (26+51) of the total respondent believe that operate a computer is easy for me whereas 20%(13+7) of the respondent is having problem to operate a computer out of that 20% , 75 believe that they can’t go for computer So ,if 78% of the people who are dealing with the stock market is having computer at their house and around 76% of the same population don’t have any problem to operate a computer So around 60 % is their who is having computer and they don’t have problem to operate a computer

Ans.8 online trading is a secure way of trading

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INTERPRETATION 71% of the respondent is having a positive thinking that online trading is a secure way of trading whereas 185 of the respondent believes that online trading is not a secure way of trading Satisfaction about the process, by which they will be going to do a trading that is online trading, should be there in the mind of the customer. If they believe that their is no risk over the money which they are going to invest in the market with the help of online trading, there will be a perception to go for online trading at least one time

Ans.9 online trading is easy and fast way of trading?

INTERPRETATION

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51% of the total respondent believe that online trading is a easy task Whereas 41% of the respondent believes that to deal with online Trading is not a easy task and 85 was confused to anything about that the trading via internet is a easy task or not There is a difference between the people who believe and who don’t believe is not very big that is only 10% , the reason of this problem can be if a person is doing its investment on its own he or she think of the problem of being mistaken in the transaction. So there is a need of proper training to do trading online Ans.10 At what time do you trade?

INTERPRETATION 45% of the total respondent do trading in office timing while 32% do trading in non office timing and 23% of the respondents do the trading in free time Here the people who do the trading in office timing they face the problem of not in the continuous touch of the stock market, so online trading can be one of the good solution of this problem.

Ans.11 Introduction of online trading helped to attract the new Investors thus increasing the trading volumes at Stock Market?

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INTERPRETATION 76% of the respondent believe that the introduction of online trading helped to attract the new customer became the reason to increase the trading volume of the market On the other side 16% of the respondent believe that it doesn’t affect the trading volume Ans 12 . What factor would you consider before choosing an account in a brokerage house? RELIABILITY ANALYSIS OF THE DATA we calculate the value of cronbach’s Alpha to calculate how reliable the data collected by the sampling
Reliability Statistics
Cronbach's Alpha .880 Cronbach's Alpha Based on Standardized Items .875

N of Items 21

we also look for that if the value of cronbach’s Alpha is more than avrage so that data collected by the sample is showing the habit of the population the data is represening the whole population we are having the value of cronbach’s Alpha of 21 features that is .880 that is more than good , so here we can say that data is reliable enough to go further analysis

DESCRIPTIVE STATISTICS ANALYSIS OF THE DATA

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In the descriptive statistics analysis we calculate the MEAN and STANDERD DEVIATION Where low mean shows the avrage of the respondent who think that these quality should be in the product and deviation showing the differnciation in opinion of the respondent Low S.D. means small differenc in the opinion about the particular factor which should in the product
Descriptive Statistics Mean Guidance Variety of products offered Time to open an account Brokerage charged Customer services Software Research reports Efficiency at peak hours Customer relationship Compliance system Infrastructure Brand Trading Calls/sms Effective execution Regular delivery of contract notes Market exposure Recording confirmation Access to back office Comprehensive stock trading portal Employees skill Helpline services 1.56 1.90 1.97 2.29 2.42 2.35 1.88 1.91 2.03 1.77 1.90 1.94 2.12 2.18 1.98 2.02 2.20 1.92 2.47 2.47 1.92 Std. Deviation .625 .948 1.029 1.175 1.182 1.149 1.085 .986 1.114 .763 .823 .919 1.131 1.019 1.146 .899 .841 1.022 1.077 1.020 1.041 Analysis N 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100

If we do the analysis the data through value, we will find that few features are most important for the customer. These are Brand, Compliance system, infrastructure, Regular delivery of contract notes, Efficiency at peak hours, Time to open an account, Variety of products offered, Helpline services, Guidance, Research reports and Access to back office

The mean of the given component is around 1.5 – 1.99. That is showing that customer are looking theses component in the product

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S.D. of the product features Guidance, Variety of products offered, Efficiency at peak hours, Brand, Compliance system, infrastructure is less than 1. Here the respondent are not having different opinion about these component

FACTOR NANLYSIS

In the factor analysis we look for the few component and each component is having 1 or more than 1 features of the product
Rotated Component Matrix(a) Component Guidance Variety of products offered TIme to open an account Brokerage charged Customer services Software Research reports Efficiency at peak hours Customer relationship Compliance system Infrastructure Brand Trading Calls/sms Effective execution Regular delivery of contract notes Market exposure Recording confirmation Access to back office Comprehensive stock trading portal Employees skill Helpline services 1 -.079 2 .054 .183 .228 .181 .122 .109 .438 3 .027 .272 .333 .325 .145 .114 -.023 .189 -.120 -.090 .140 .207 .340 4 -.141 -.006 -.091 -.179 -.149 .140 .236 .121 .160 .014 .226 .255 -.043 .108 -.045 -.043 .011 5 -.772 .078 .559 .407 .184 .020 .038 -.271 .116 .126 -.174 -.404 .089 -.052 .076 .120 -.040 -.135 .311 .049 .096 6 -.030 .098 .014 .003 .108 .151 .084 -.152 .294 .403 .146 .275 .292 .017 .167 .484

.815 .511 .632 .793 .843 .514
.104 .377 .453 .734 .362 .076 .181 .448 .075 .193 -.283 .129 .302 .412

.721 .683
.376 .210 .395 .473 .063 .197 .516 -.004 -.180 .326 .198

.833 .652
.396 .094 .026 -.050 .085 .156

.835
.079 .117 -.190 -.083

.796 .668 .675
.003

.547

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 8 iterations.

Component Transformation Matrix
Component 1 2 3 4 5 6

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1 2 3 4 5 6

.748 -.235 -.233 .219 -.479 .233

.489 .349 .235 -.297 .001 -.704

.330 -.140 .381 .523 .670 .067

.110 .803 -.456 .187 .203 .243

.148 -.389 -.653 -.347 .504 -.161

.242 .086 .333 -.660 .164 .601

Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization.

If we analyze the given Rotated Component Matrix and Component Transformation Matrix we will find that there are six component are coming and each of them component include one or more than 1 features in its own If we talk of component 1 it include few features which are most important while designing the product Variety of products offered, Time to open an account, Brokerage charged, Customer services, Software, Research reports and infrastructure In component 2 it include four features of the online trading product that is Efficiency at peak hours, Customer relationship, Market exposure, Helpline services. In component 3 it include four features of the online trading product that is Effective execution, Regular delivery of contract notes. In component 4 there are three factor which are most important for the product and they are Access to back office, Comprehensive stock trading portal, Employees skill According to component 5 there is only a single feature which is Time to open an account is important And the component 6 is also having only a single product feature that is Recording confirmation .if we gone through the all component of the product we will find that there are few quality or features which a product like online trading should have These are Variety of products offered, Time to open an account, Brokerage charged, Customer services, Software, Research reports.

10.CONCLUSION

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The online trading is growing with a rapid pace with the rising level of education among the customers. The other factors being that the Indian Investor nowadays wants to deal himself in trading rather than depending upon other middlemen. They also consider the factors like time saving in doing the online transactions, convenience etc. Although some people feel that online trading is not secure but the people doing the trading online is happy about the increasing security concerns among the companies. The year 2008 has not been so good for the stock market and the Sensex and Nifty has been dipping and affecting the business negatively for these companies. This is due to the fact that at these times people do not prefer to open the DMAT and Trading accounts. So the companies have to reduce their account opening fees to attract more and more customers. Also people trade very less in the bearish market and the company’s profits against brokerage fees soars downwards. It is also a found fact that during the bearish market the ratio of online trading becomes very less. Also there is an intense competition among the companies and the companies come up with new and new promotion schemes such as discounted and negotiable brokerages, Zero balance accounts, waiving a/c opening fee and AMC etc. As the internet penetration is growing in India this business holds a huge potential for growth. Now if the existing company will have to capture the market they will have to look for the innovation in their product as well as service mix The mantra for success in the current situation will be educating the customers about the benefits of online trading and the amount of ROI that can be generated through it.

11.RECOMMENDATIONS

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 The companies should come up with more and more innovative features in their web portals.  We came to know about most important factor about the product with the help of factor analysis , so we should go for change the product according to the customer need  We should also focus upon the value added services. Generally company does claim that if you will by the product you will get these benefits but company doesn’t provide the services here. So services always does matter when we talk of ONLINE TRADING  Company should also look for the problem which customer generally face when they do trading (like problem of operating properly)  The customer should be educated regularly regarding the new technologies and techniques of trading online and also other relevant information.  The companies should look after to develop more safe and secure ways of transacting business online.  The companies should make maximum efforts to detect fraud cases and minimize them.

12.INDUSTRY RELEVANCE

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My research project is Quite Relevant to the Investment Industry. The following things can be useful for IL&FS investsmart (HSBC group)  IL&FS investsmart will be able to know their market position with other competitors.  The company will also get to know some areas of improvement which came forward through my research.  The changing perception of Indian consumers and their requirements will also be made clear.  The company will be able to do the effective segmentation of their market based on the research analysis.  The investment companies at large will be able to understand how to keep themselves abreast with the changing technology.

13.LEARNINGS

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The two month summer training was a good experience for me to learn the practical aspects of the corporate life. Some of the learning of mine is:  I improved my communication skills by learning how to talk to different kind of people as it requires the different approach to handle each person.  I learnt how to manage a team of member to achieve a goal  I learnt to how handle the pressure under difficult situations.  I became aware about various aspects of working of stock exchange  I learnt few things about back office work  I learnt about the consumer perception about the stock market and online trading.  Patience was the thing I learnt the most as I have to approach the clients who were to be explained same things again and again while approaching or calling them at regular Intervals.

14. BIBLIOGRAPHY

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 httpeconomictimes.indiatimes.comarticleshow4758236.cms  http business.mapsofindia.comonline-tradingicici.html  http business.mapsofindia.comonline-tradingkotaksecurities.html  www.investsmart.in/ilfs-webapp/RetailOfferings/RetailIndex.jsp  http business.mapsofindia.comonline-tradingindiabulls.html  www.investsmart.in/ilfs-webapp/InstitutionalOfferings/InstitutionalIndex.jsp  Httpin.reuters.comarticlepersonalFinanceidINIndia-40914120090709pageNumber=2  http://EzineArticles.com/?expert=Tanya_Lobo  www.investsmart.in/ilfs-webapp/Home/AboutUs/CompanyProfile.jsp  httpbusiness.mapsofindia.comonline-tradingbest-online-trading.html  www.the financialexpress/home/growth of market.htm  www.rediff.com/money/2005/aug/31trading.htm  www.reliancemoney.com/Aboutus.aspx  www.icicidirect.com  www.kotakstreet.com  www.bseindia.com  www.nseindia.com  www.bseindia.com  www.sebi.co.in

QUESTIONAIRE

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(To understand the perception of customer toward online trading)
NAME _______________________________________________________________________ AGE ______________________________ GENDER ____________________________ MOBILE _______________________________________________________________________ OCCUPATION _______________________________________________________________________

Q.1 What is your education qualification?  higher Secondary  senior secondary  Graduate  Post Graduate  professional degree holder Q.2 What is your annual income?  Below 100000  1,00,000 – 2,00,000  2,00,000 – 3,00,000  3,00,000 – 4,00,000  Above 4,00,000 Q.3 What percentage of your monthly household income could be available for investment?  Less than 5%  5% to 10%  10% to 15%  15% to 20%  More than 20% Q.4 Where do you often invest your money?  Equity  Mutual fund  Insurance  Term deposits  Others

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Q.5 What is the primary objective of your investment?  Capital appreciation  Source of income  Retirement planning  Wealth preservation  Education funding /others

Q.6 Do you owe a Computer?  Yes  No

Q.7 To operate a computer is easy for me  Strongly agree  Agree  Can’t say  Disagree  Strongly disagree

Q.8 online trading is a secure way of trading  Strongly agree  Agree  Can’t say  Disagree  Strongly disagree Q.9 online trading is easy and fast way of trading?  Strongly agree  Agree  Can’t say  Disagree  Strongly disagree Q.10 At what time do you trade?  Office Hours  Non Office Hours

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 Free Time

Q.11 Introduction of online trading helped to attract the new Investors thus increasing the trading volumes at Stock Market?      Strongly agree Agree Can’t say Disagree Strongly disagree

Q.12 What factor would you consider before choosing an account in a brokerage house ? Tick the appropriate option according to your choice on the scale of 1 to 5 (Where 1 is Most important to 5 for least important)

S.NO. PRODUCT ATTRIBUTES Variety of products offered 1 Time to open an account 2 Brokerage charged 3 Customer services 4 Software 5 Research reports 6 Efficiency at peak hours 7 Customer relationship 8 Compliance system 9 Infrastructure 10 Brand 11 Trading Calls/sms 12 Effective execution 13 Regular delivery of contract 14 15 16 17 18 19

notes Market exposure Recording confirmation Access to back office Comprehensive stock trading portal Employees skill

1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2

3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3

4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4

5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

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20 21

Helpline services Guidance

1 1

2 2

3 3

4 4

5 5

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