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See our Privacy Policy and User Agreement for details. Published on Sep 9, Clipping is a handy way to collect and organize the most important slides from a presentation. You can keep your great finds in clipboards organized around topics. SlideShare Explore Search You. Show related SlideShares at end. Full Name Comment goes here. Are you sure you want to Yes No. Download eBooks , GET at http: Vibha Painkra , Student at Banaras Hindu University. Prudhwi Nandamuri , Executive at Concentrix at Concentrix.

Utkarsh Sharma , Student at Staloysius college. Embeds 0 No embeds. No notes for slide. I also here by declarethat this project report has not been submitted at any timeto any other university or institute for the award of anyDegree or Diploma. CHANDRA SEKHAR GOUD 08J81E 2 3. CHANDRA SEKHAR GOUD 08J81E In the partial fulfillment of the requirements for the award of the degree of Master of Business Administration from P.

Indra Reddy Memorial Engineering College, affiliated to Jawaharlal Nehru Technological University is a record of bonafide workcarried out by them under my guidance and supervision. The resultembodied in this has not been submitted to any other university or institute for the award of any degree.

SRINIVAS Head of the department Master of Business Administration 3 4. Krishnaiahfor providing excellent infrastructure. Prasad Head of the Department of MBA forhis constant help and support. I express my sincere thanks to our committed facultyMr. SRINIVAS for his support and guidance. I have great regard for all the well wishers whose help is beyondacknowledgement.

CHANDRA SEKHAR GOUD 08J81E 4 5. The data collection methods include both primary and secondary collection methods. This method includes the data collected from the personal interaction with authorized members of Sharekhan Securities limited.

The secondary data collection method includes: The lecturers delivered by the superintendents of respective departments. The brochures and material provided by Sharekhan Securities limited. The data collected from the magazines of the NSE, economic times, etc. Various books relating to the investments, capital market and other related topics. Despite of the training my level best, there were still some limitation which I thinkremains there to draw fruitful conclusion.

If he want advice on a particular stock in his portfolio he may not even be able to get that. Chapter 2Company profile 9 INDUSTRY PROFILE Following diagram gives the structure of Indian financial system: Financial markets are helpful to provide liquidity in the system and for smooth functioning of the system.

These markets are the centers that provide facilities for buying and selling of financial claims and services. The financial markets match the demands of investment with the supply of capital from various sources. According to functional basis financial markets are classified into two types. The unorganized market is composed of indigenous bankers, moneylenders, individual professional and non-professionals. Money market is a place where we can raise short-term capital.

Capital market is a place where we can raise long long-term capital. Shares, Debentures, and Loans etc. Primary market is generally referred to the market of new issues or market for mobilization of resources by the companies and government undertakings, for new projects as also for expansion, modernization, addition, diversification and up gradation.

Primary market is also referred to as New Issue Market. The primary market is regulated by the Securities and Exchange Board of India SEBI a government regulated authority. The main services of the primary market are origination, underwriting, and distribution. Origination deals with the origin of the new issue.

Underwriting contract make the shares predictable and remove the element of uncertainty in the subscription. Distribution refers to the sale of securities to the investors.

The following are the market intermediaries associated with the market: Registrar and transfer agent 3. Adviser to the issue 5. Banker to the issue 6. To ensure healthy growth of primary market, the investing public should be protected. The term investor protection has a wider meaning in the primary market. SECONDARY MARKET The primary market deals with the new issues of securities. Outstanding securities are traded in the secondary market, which is commonly known as stock market or stock exchange.

Thus, the growth of secondary market depends on the primary market. More the number of companies entering the primary market, the greater are the volume of trade at the secondary market. Trading activities in the secondary market are done through the recognized stock exchanges which are 23 in number including Over The Counter Exchange of India OTCE , National Stock Exchange of India and Interconnected Stock Exchange of India.

Secondary market operations involve buying and selling of securities on the stock exchange through its members. The companies hitting the primary market are mandatory to list their shares on one or more stock exchanges in India. The following are the intermediaries in the secondary market: Share transfer agent 5.

STOCK MARKETS IN INDIA: Stock exchanges are the perfect type of market for securities whether of governmentand semi-govt bodies or other public bodies as also for shares and debentures issuedby the joint-stock companies. In the stock market, purchases and sales of shares areaffected in conditions of free competition.

Government securities are traded outside thetrading ring in the form of over the counter sales or purchase. The bargains that arestruck in the trading ring by the members of the stock exchanges are at the fairestprices determined by the basic laws of supply and demand.

Definition of a stock exchange: The only stock exchanges operating in the 19th century were those of Mumbai setup in and Ahmadabad set up in These were organized as voluntary non- profit-marking associations of brokers to regulate and protect their interests. Before the control on securities under the constitution in , it was a state subject and the Bombay securities contracts control act of used to regulate trading in securities.

Under this act, the Mumbai stock exchange was recognized in and Ahmadabad in During the war boom, a number of stock exchanges were organized. Soon after it became a central subject, central legislation was proposed and a committee headed by A.

Gorwala went into the bill for securities regulation. Functions of Stock Exchanges: Stock exchanges provide liquidity to the listed companies. By giving quotations to the listed companies, they help trading and raise funds from the market. Over the hundred and twenty years during which the stock exchanges have existed in this country and through their medium, the central and state government have raised crores of rupees by floating public loans.

By obtaining the listing and trading facilities, public investment is increased and companies were able to raise more funds. The quoted companies with wide public interest have enjoyed some benefits and assets valuation has become easier for tax and other purposes. Various Stock Exchanges in India: At present there are 23 stock exchanges recognized under the securities contracts regulation , Act, Ahmadabad Stock Exchange Association Ltd. Bangalore Stock Exchange Bhubaneshwar Stock Exchange Association Calcutta Stock Exchange Cochin Stock Exchange Ltd.

Coimbatore Stock Exchange Delhi Stock Exchange Association 17 Guwahati Stock Exchange LtdHyderabad Stock Exchange Ltd. Jaipur Stock Exchange LtdKanara Stock Exchange LtdLudhiana Stock Exchange Association LtdMadras Stock ExchangeMadhya Pradesh Stock Exchange Ltd. Magadh Stock Exchange LimitedMeerut Stock Exchange Ltd. Mumbai Stock ExchangeNational Stock Exchange of IndiaOTC Exchange of IndiaPune Stock Exchange Ltd. Saurashtra Kutch Stock Exchange Ltd.

Uttar Pradesh Stock Exchange AssociationVadodara Stock Exchange Ltd. Out of these major stock exchanges were: Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts Regulation Act, in April , NSE commenced operations in the Wholesale Debt Market WDM segment in June The Capital Market Equities segment commenced operations in November and operations in Derivatives segment commenced in June 19 NSEs mission is setting the agenda for change in the securities markets in India.

TheNSE was set-up with the main objectives of: The standards set by NSE in terms of market practices and technology, have become industry benchmarks and are being emulated by other market participants. NSE is more than a mere market facilitator. Its that force which is guiding the industry towards new horizons and greater opportunities. BSE Bombay Stock Exchange The Stock Exchange, Mumbai, popularly known as "BSE" was established in as "The Native Share and Stock Brokers Association".

It is the oldest one in Asia, even older than the Tokyo Stock Exchange, which was established in It is a voluntary non-profit making Association of Persons AOP and is currently engaged in the process of converting itself into demutualised and corporate entity. It has evolved over the years into its present status as the premier Stock Exchange in the country. It is the first Stock Exchange in the Country to have obtained permanent recognition in from the Govt. The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redresses of their grievances whether against the companies or its own member-brokers.

It also strives to educate and enlighten the investors by conducting investor education programmers and making available to them necessary informative inputs. A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange.

The Executive Director as the Chief Executive Officer is responsible for the day-to-dayadministration of the Exchange and the Chief Operating Officer and other Heads ofDepartment assist him. The Exchange has inserted new Rule No. The securities contract regulation act has provided uniform regulation for the admission of members in the stock exchanges. The qualifications for becoming a member of a recognized stock exchange are given below: It was later made statutory body by the SEBI act With the coming into effect of the securities and exchange board of India act, some of the powers and functions exercised by the central government, in respect of the regulation of stock exchange were transferred to the SEBI.

Buy and sell orders placed with members of the stock exchange by the investors. The orders are of different types. Orders are limited by a fixed price. Here, the buyer or seller gives the freedom to the broker to execute the order at the best possible rate quoted on the particular date for buying. It may be lowest rate for buying and highest rate for selling.

The investor gives the range of price for purchase and sale. The broker can use his discretion to buy within the specified limit. Generally the approximation price is fixed. The orders are given to limit the loss due to unfavorable price movement in the market. A particular limit is given for waiting. If the price falls below the limit, the broker is authorized to sell the shares to prevent further loss. Sell BRC limited at Rs. Buying and selling shares: To buy and sell the shares the investor has to locate register broker or sub broker who render prompt and efficient service to him.

The order may be of any type. After receiving the 25 Once matching order is found, the order is executed. The broker then delivers the contract note to the investor.

It gives the details regarding the name of the company, number of shares bought, price, brokerage, and the date of delivery of share. In this physical trading form, once the broker gets the share certificate through the clearing houses he delivers the share certificate along with transfer deed to the investor. The investor has to fill the transfer deed and stamp it.

The stamp duty is one of the percentage considerations, the investor should lodge the share certificate and transfer deed to the register or transfer agent of the company. If it is bought in the DEMAT form, the broker has to give a matching instruction to his depository participant to transfer shares bought to the investors account.

The investor should be account holder in any of the depository participant. In the case of sale of shares on receiving payment from the purchasing broker, the broker effects the payment to the investor. The Z group scrips are of the blacklisted companies. Under rolling settlement system, the settlement takes place n days usually 1, 2, 3 or 5days after the trading day.

The shares bought and sold are paid in for n days after the trading day of the particular transaction. Share settlement is likely to be completed much sooner after the transaction than under the fixed settlement system.

A rolling period which offers a large number of days negates the advantages of the system. Generally longer settlement periods are shortened gradually.

SEBI made RS compulsory for trading in 10 securities selected on the basis of the criteria that they were in compulsory demat list and had daily turnover of about Rs. A provision of an exception window would be available for late confirmation. The time limit and the additional changes for the exception window are dedicated by the exchange.

Depository participants accept the instructions for pay in securities by investors in physical form upto 4 p. The depository permits the download of the paying in files ofsecurities and funds till In the demat mode net basissettlement is allowed.

The buy and sale positions in the same scrip can be settled andnet quantity has to be settled. ABOUT SHAREKHAN LIMITEDSharekhan Ltd. It is the retail broking arm of theMumbai-based SSKI Group, which has over eight decades of experience in the stockbroking business. Sharekhan offers its customers a wide range of equity relatedservices including trade execution on BSE, NSE, Derivatives, depository services,online trading, investment advice etc.

The site gives access to superior content and transaction facility to retailcustomers across the country. Known for its jargon-free, investor friendly language andhigh quality research, the site has a registered base of over one lakh customers. Thecontent-rich and research oriented portal has stood out among its contemporariesbecause of its steadfast dedication to offering customers best-of-breed technology andsuperior market information.

What is A DEMAT Account??

The objective has been to let customers make informeddecisions and to simplify the process of investing in stocks. On April 17, Sharekhan launched Speed Trade, a net-based executableapplication that emulates the broker terminals along with host of other informationrelevant to the Day Traders. This was for the first time that a net-based trading station ofthis caliber was offered to the traders.

In the last six months Speed Trade has become ade facto standard for the Day Trading community over the net. Sharekhan has always believed in investing in technology to build its business.

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Thecompany has used some of the best-known names in the IT industry, like SunMicrosystems, Oracle, Microsoft, Cambridge Technologies, Nexgenix, Vignette,Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. The Morakhiya family holds a majority stake in the company.

With a legacy of more than 80 years in the stock markets, the SSKI group ventured intoinstitutional broking and corporate finance 18 years ago. Presently SSKI is one of theleading players in institutional broking and corporate finance activities. SSKI holds asizeable portion of the market in each of these segments.

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It has 60 institutionalclients spread over India, Far East, UK and US. Sharekhan SSKI A Phoenix House Phoenix Mills Compound Lower Parel Mumbai - Maharashtra, INDIA- Nature of Business: Depository Services, Online Services and Technical Research. Data Not Available Website: Your Guide to The Financial Jungle. Vision To be the best retail brokering Brand in the retail business of stock market.

Mission To educate and empower the individual investor to make better investment decisions through quality advice and superior service.

REASON TO CHOOSE SHAREKHAN LIMITEDExperienceSSKI has more than eight decades of trust and credibility in the Indian stock market. Inthe Asia Money brokers poll held recently, SSKI won the Indias Best Broking Housefor award. Ever since it launched Sharekhan as its retail broking division inFebruary , it has been providing institutional level research and broking services to institutional-levelindividual investors.

TechnologyWith its online trading account one can buy and sell shares in an instant from any PCwith an internet connection. One can get access to its powerful online trading tools thatwill help him take complete control over his investment in shares.

AccessibilitySharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for EXECUTIONinvestors. These services are accessible through its centers across the country over theinternet through the website www. One can also get a useful set of knowledge-based tools that will asedempower him to take informed decisions. ConvenienceOne can call its Dial-N-Trade number to get investment advice and execute his Trade investmenttransactions.

Its customer servicecan be contacted via a toll-free number, email or live chat on www. Investment AdviceSharekhan has dedicated research teams of more than 30 people for fundamental andtechnical researches. Its analysts constantly track the pulse of the market and providetimely investment advice to its clients in the form of daily research emails, online chat,printed reports and SMS on their mobile phone.

Vice President of ResearchPRODUCTS AND SERVICES OF SHAREKHAN LIMITEDThe different types of products and services offered by Sharekhan Ltd. This account comes with the following features: Online trading account for investing in Equities and Derivatives b. Free trading through Phone Dial-n-Trade I. Two dedicated numbers and for placing the orders using cell phones or landline phones II.

Automatic funds transfer with phone banking facilities for Citibank and HDFC bank customers III. Simple and Secure Interactive Voice Response based system for authentication IV. After hours order placement facility between 8.

Instant order and trade confirmations by e-mail. Single screen interface for cash and derivatives. SPEED TRADE ACCOUNTThis is an internet-based software application, which enables one to buy and sell in aninstant.

Instant order Execution and Confirmation. Real-time streaming quotes, tic-by-tic charts. Market summary Cost traded scrip, highest value etc. Back-up facility to place trades on Direct Phone lines. Charge Classic Account Speed Trade AccountAccount Opening Rs. Account Opening Charges Rs. NIL first year Rs. For online trading with Sharekhan Ltd. Following arethe ways to open an account with Sharekhan Ltd.: One can call on the Toll Free Number: Sharekhan has a huge network all over India centers in cities.

After that the executives of the respective branches contact the prospective clients over phone or through email and give them information regarding the various types of accounts and the documents they need to open an account and then fix appointment with the prospective clients to give them demonstration and making them undergo the formalities to open the account. Generally the process of opening an account follows the following steps: Apart from two passport size photographs, one needs to provide with the followingdocuments in order to open an account with Sharekhan Limited.: Driving License valid e.

Electricity Bill should be latest and should be in the name of the client f. Telephone Bill should be latest and should be in the name of the client g. Flat Maintenance Bill should be latest and should be in the name of the client h.

Insurance Policy should be latest and should be in the name of the client i. Lease or Rent Agreement. Only Saving Bank Account cheques are accepted for the purpose of Opening an account. RESEARCH SECTION IN SHAREKHAN LIMITEDSharekhan Limited has its own in-house Research Organisation which is known asValueline.

It comprises a team of experts who constantly keep an eye on the sharemarket and do research on the various aspects of the share market. Generally theresearch is based on the Fundamentals and Technical analysis of different companiesand also taking into account various factors relating to the economy.

Out of 37 trading calls given by Sharekhan in the month of November , 33 hit theprofit target. These exclusive trading picks come only to Sharekhan Online TradingCustomer and are based on in-depth technical analysis. As a customer of Sharekhan Limited, one receives daily Research Reports on theiremails which they can use as tips for investing in the market. These reports are namedas Pre-Market Report, Eagle Eye, High Noon, Investors Eye, Daring Derivatives andPost-Market Report.

Apart from these, Sharekhan Limited issues a monthly subscriptionby the name of Valueline which is easily available in the market. Chapter 3Project Analysis 42 Forthis, the broker or his authorized representatives goes to the stock exchange. Thismethod is called the open outcry system.

Basically the brokers shout while buying orselling the securities. For making the necessary bargain, he quotes his purchase or sale price, alsoknown as offer or bid price.

The dealer, to whom the price is quoted, quotes his ownprice when the quotation of the dealer suits the broker, he may loose the bargain. Ifhe is not satisfied with the quote price, he may turn to some other dealer. On theclose of the bargain, the dealer as well as the broker makes a brief note of theparticulars of the deal.

Such notes are made on some pad and on it the number ofshares, the price agreed upon, the name of the party, what membership numberetc. MANUAL TRADING Trading procedure before introduction of online trading: Trading on stock exchanges is officially done in the trading ring.

In the trading ring the space is provided for specified and non-specified sections, the members and their authorized assistants have to wear a badge or carry with them an identity card given by the exchange to enter the trading ring.

They carry a sauda book or confirmation memos, duly authorized by the exchange and carry a pen with them. The stock exchanges operations are floor level are technical in nature. Non- members are not permitted to enter in to stock market. Hence various stages have to be completed in executing a transaction at a stock exchange. The steps involved in this method of trading have given below: They can also appoint their bankers for this purpose as per the present regulations.

The next step is the The prospective investor who wants to buy shares or the investors, who wants to placing order for the purchase or sale of securities with a broker. The order is usually placed by telegram, telephone, letter, fax etc or in person. To avoid delay, it is placed generally over the phone.

The orders may take any one of the forms such as At Best Orders, Limit Order, Immediate or Cancel Order, Limited Discretionary Order, and Open Order, Stop Loss Order. Execution of order or contract: Orders are executed in the trading ring of the BSE.

This works from M on all working days Monday to Friday, and a special one-hour session on Saturday. The members or the authorized assistants have to wear a badge given by the exchange to enter into the trading ring. They carry a sauda Block Book or conformation memos, which are duly authorized by the exchange when the deal is struck; both broker and jobber make a note in their sauda block books.

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From the sauda book, the contract notes are drawn up and posted to the client. A contract 44 Drawing Up and Bills: Both sale and purchase bills are prepared along with the contract note and it is posted on the same day or the next day. This in a purchase transaction, once the shares are delivered to the client effects payment for the purchases and pays the stamp fees for transfer, a bill is made out giving the total cost of purchase, including other expenses incurred by the broker in the price itself.

With this, the process ends. Dematerialization is the process by which physical certificates of an investor are converted to an equipment number of securities in electronic from and credited in the investor account with his DP.

In order to dematerialize the certificates, an investor has to first open an account with a DP and then request for the Dematerialization Request Form, which is DP and submit the same along with the share certificates. Dematerialization can only be done to those certificates, which are already registered in your name and belong to the list of securities admitted for Dematerialization at NSDL. This list is steadily increasing. Briefly, the process is as follows: Dematerialized shares do not have any distinctive or certificate numbers.

These shares are fungible-which means that shares of a security are the same as any other shares of the security. Odd lot shares certificates can also be dematerialized.

Dematerialization normally takes about fifteen to thirty days. To get back dematerialized securities in the physical form, request DP for Rematerialization of the same is made. Rematerialization is the process of converting electronic shares in to physical shares. This has lead to reduction in brokerage to the extent of 0.

ONLINE TRADING Before getting in to the online trading we should know some things about the internet, e-commerce and etc. Internet is a worldwide, self-governed network connecting several other smaller networks and millions of computers and persons, to mega sources of information. This technology shrinks vast distances, accelerating the pace of business reforms and revolutionizing the way companies are managed.

It allows direct, ubiquitous links to anyone anywhere and anytime to build up interactive relationships. A combination of time and space, called the Internet promises to bring unprecedented changes in our lives and business. Internet or net is an inter- connection of computer communication networks spanning the entire globe, crossing all geographical boundaries. It has re-defined the methods of communication, work study, education, business, leisure, health, trade, banking, commerce and what not it is virtually changing every thing and we are living in dot.

Net being an interactive two way medium, through various websites, enables participation by individuals in business to business and business to consumer commerce, visit to shopping arcades, games, etc. The use of Internet has grown percent in last decade and is currently growing at 10 percent per month.

In India, growth of Internet is of recent times. It is expected to bring changes in every functional area of business activity including management and financial services. It offers stock trading at a lower cost. Internet can change the nature and capacity of stock broking business in India. E-commerceElectronic commerce is associated with buying and selling over computercommunication networks.

It helps conduct traditional commerce through new way oftransferring and processing of information. Information is electronically transferredfrom computer to computer in an automated way.

E-commerce refers to thepaperless exchange of business information using electronic data inter change,electronic technologies.

It not only reduces manual processes and papertransactions but also helps organization move to a fully electronic environment andchange the way they operated. The computers are either workstations ofindividual office works or serves where large databases and information reside. Network connects both categories of computers; the various operating systems arethe most basis program within a computer. It manages the resources of thecomputer system in a fair and efficient manner.

Now we can enter in to the concept known as online trading. In the past, investors had no option but to contact their broker to get real time accessto market data. The net brings data to the investor on-line and net broking enableshim to trade on a click of mouse. Now information has become easily accessible toboth retail as well as big investor. EVOLUTION OF BROKING IN INDIA: In the real world you place orders on your stockbroker either verbally personally ortelephonically or in a written form fax.

These orders are routed to the stockexchange without manual intervention and executed thereon in a matter of a fewseconds. The net is used as a mode of trading in internet trading. Orders are communicated tothe stock exchange through website. Internet trading started in India on 1st April with 79 members seekingpermission for online trading.

The SEBI committees on internet based securitiestrading services has allowed the net to be used as an Order Routing System ORS through registered stock brokers on behalf of their clients for execution oftransaction.

Besides, through internet trading three fundamental objectives of securities regulation can be easily achieved, these are: Some of the brokers offering net trading include ICICI direct, kotakstreet, etc.

Requirements for net trading: Installation of a computer with required specification 2. Installation of a modem 3. Registration for on-line trading with broker 5. A bank account 6. Compliance with SEBI guidelines for net trading The following should be produced to get a demat account and online trading account: Permission from stock exchange for net trading2.

Net worth of Rs. Secured and reliable software system5. Adequate, experienced and trained staff6. Communication of order trade confirmation to investor by e-mail 7. Use of authentication technologies8. Issue of contract notes within 24 hours of the trade execution9. Setting up a website. The net is used as a medium of trading in internet trading. Orders are communicatedto the stock exchange through website. Internet trading started in India on 1st April with 79 members seeking permission for online trading.

The SEBI committeeson internet based securities trading services has allowed the net to be used as anOrder Routing System ORS through registered stock brokers on behalf of theirclients for execution of transaction. They are checked electronically againstthe clients account and routed electronically to the appropriate exchange forexecution by the broker.

The client receives a confirmation on execution of the order. The customers portfolio and ledger accounts get updated to reflect the transaction. The user should have the user id and password to enter into the electronic ring.

Heshould also have demat account and bank account. The system permits only aregistered client to log in using user id and password. Order can be placed usingplace order window of the website. Procedure for net trading Step 1: Those investors, who are interested in doing the trading over internet system i. NEAT-IXS, should approach the brokers and get them self registered with the Stock Broker.

After registration, the broker will provide to them a Login name, Password and personal identification number PIN. Actual placement of an order. An order can then be placed by using the place order window as under: It is the process of review. Thus, the investor has to review the order placed by clicking the review option. He may also re-set to clear the values. After the review has been satisfactory, the order has to be sent by clicking on the send option. The investor will receive an "Order Confirmation" message along with the order number and the value of the order.

In case the order is rejected by the Broker or the Stock Exchange for certain reasons such as invalid price limit, an appropriate message will appear at the bottom of the screen. At present, a time lag of about 10 seconds is there in executing the trade. It is regarding charging payment, for which there are different mode. Some brokers will take some advance payment from the investor and will fix their trading limits.

When the trade is executed, the broker will ask the investor for transfer of funds to his account. Internet trading provides total transparency between a broker and an investor in thesecondary market. In the open outcry system, only the broker knew the actuallytransacted price.

Screen based trading provides more transparency. With online trading 52 The time gap has narrowed in every stage of operation. Confirmation and execution of trade reaches the investor within the least possible time, mostly within 30 seconds. Instant feedback is available about the execution. Following steps explain the step by step approach to on-line trading: Thus we have access to a lot more information online.

Being online does not identify the size of any particular organization, therefore, this additional power to the underdogs. Companies can establish themselves according to their gains and losses, for instance where tax sales and value added taxes is best suited to them.

It is like going back to school and re-educating oneself on how to trade online. Now they can invest in stocks, stock and index options mutual funds, government, and even insurance. INVESTORS REASONS TO TRADE ONLINE: It seems that the middleman has been removed, but that is not so. When the individuals click on the mouse, his trade goes through a broker. The commissions online pertain to the intermediary. The Online trading system imparted a greater level of transparency and investors preferred exchanges that offered Online trading because of the following factors: All these resulted in ever-increasing volumes on the exchanges offering the online trading.

TRADING PROCEDURE AT SHARE KHAN STOCK BROCKING ShareKhan deals in buying and selling equity shares and debentures on the National Stock Exchange NSE , the Bombay Stock Exchange BSE and the Over-The- Counter Exchange of India OTCEI.

Share Khan is provided with a computer and required software from their registered stock exchanges. These computers are connected to the server at the stock exchanges through cable. The member or broker sitting in his office can send the quotations, orders, negotiations, deals, in-house deals, auction orders etc. The Central trading system CTS will accept these orders and send it for match. If there is any mistake in the order, CTS will reject the orders and send respective error message to the member concern.

All these operations are in built. The main objective of CTS is to monitor the Stock Exchanges operations. Order placed by the broker will be sent for a match and if the match is found suitable, the transaction will be executed.

Otherwise, the order will be deleted 57 The carry forward transactions Good Till cancellation are forwarded to the next day. Even if the match is not found with in the prescribed period, the order will not cancel.

Useful links about Sharekhan: Product Demo - Speed Trade: Product Demo - Classic: Monday to Friday is the trading period in all the stock exchanges. SEBI has stipulated that all the stock exchanges in India must have same trading period. Other information will be available on query from the BWS. Brokers are also provided with information relating to the companies in the matter of Book closure, Dividend declarations, resolutions in board meeting, information about liquidated companies, company report etc.

Orders can be done one at a time or in a batch mode. The submitted order will be accepted at the CTS, after validation if it finds any invalidreason the order is return back to the BWS, with the appropriate error message. IfAccepted at the CTS it will be added to the local pending order book. The order will then be taken up for matching, if it is a buy order the system tries tofind a sell order, which fits the requirement of the buy order, when such match isfound a trade gets executed.

Each trade involves two brokers and respective traderswho sent the order. Both these traders are informed of the trade being executed attheir respective BWS. At the BWS the trade is added to the local trade book. Orders sent by the brokers are two types: For an order if the member selects the deal asgood for the day, the order is treated as market order. If the match is not found thenafter trade time the order gets cancelled that day.

Next day he has to place a neworder. For example if a member wants to purchase shares of satyam info eachthrough Good for Day order. If the correct match is not found, order gets cancelledautomatically and new quotation has to be placed the next day.

This order is forwarded to the last trading day of that settlement period. This is alsocalled as carry forward order like GFD; broker has to select the option of GTC for theorder. If the order finds match with in the trading settlement period, the order isexecuted. If no match is found, the order is cancelled on the last day of settlementperiod.

This order is not carried forward to the next settlement period. For example, if a member a place purchase order of shares of SBI per share and selects the order as GTC and place an order. If the match is not found on that day it will be forwarded to the next day until trading settlement period day. Clearing of transaction in the form of shares and cash is called settlement.

Buyers will take the delivery of shares through the depository participants like SHARE KHAN and others. Finally, the settlement is made by means of delivering the share certificates along with the transfer deeds. The transferor or the seller duly signed transfer deed. It bears a stamp of the selling broker.

The buyer then fills up the certificates fills up the particulars in the transfer deed. Settlement can be done in the following way.

In case on non-delivery, the securities will go for auction. The members who are in pay-out position delivers share certificates in to clearing house within the settlement period along with the delivery Chelan filled in with the details of share certificates which has folio numbers or distinctive numbers etc.

The buyer of shares who made pay in position will take delivery of shares from the clearing house. The cheques paid in the clearinghouse will be paid to members who are inpaying position. All disputes arising between members regarding non-deliveries, non-payments,good and bad deliveries pertaining to the settlement will be settled by the settlementcommittee of the exchange.

The given flow chart clearly explains the process of online trading: Login Buy transcation Sell transcation The system will check your The system will check buying dp account quantity limits Orders accepted Rejected orders would be orders accepted communicated along with reasons your order is transmitted to exchange for execution pending buy orders on execution pending sell orders would be displayed of your orders would be displayed on your screen on your screen you may edit your you may delete you may edit your you may delete your pending order your pending order pending order pending order flashed on your conformationcoul contract note would screen immediately d be send to your be sent to by mail on execution e-mail and mobile or hand delivery 62 Chapter 4ComparativeAnalysis 63 THE MAJOR PLAYERS IN ONLINE TRADING 1 SHAREKHAN.

Your computer may not hav e enough memory to open the ima… Your computer may not hav e enough memory to open the image, or the image may hav e been corrupted. Restart your computer, and then open the file again. If the red … Your computer may not hav e enough memory to open the image,… Your co… 59 6. HDFC Securities Ltd is promoted by the HDFC Bank, HDFC and Chase CapitalPartners and their associates.

Pioneers in setting up Dial-a-share service with thelargest team of Tele-brokers. Plain Vanilla Account with focus on 3 in 1advantage. For short periods Rs is refundable against brokerage generatedin a qtr. These schemes are introduced times a year.

India Bulls is a retail financial services company present in 70 locations covering 62cities. It offers a full range of financial services and products ranging from Equitiesto Insurance.

Plain Vanilla Account with focus on Equity Analysis. Account with sophisticated trading tools, low commissionsand priority access to R. Pricing of IB Accounts: Kotakstreet is the retail arm of Kotak Securities. Kotak Securities limited is a jointventure between Kotak Mahindra Bank and Goldman Sachs. Flat Rs Cover Charge p. Spot payment, additional 0. Keat Desktop with advanced tools comes at a charge of Rs p. Higher the volume, lower the brokerage.

Even older customers on 0. Apart from offering online trading in stock market the company offersmutual funds online. It also acts as a distributor of various financial services i. GOI securities,Company Fixed Deposits, Insurance. No access charges for gold customers Above 1 lac brokerage p. Strong credibility among investors because of its heritage. Excellent reputation among the business society. Capability of providing superior customer service.

Easier access to the customer due to largest ground network of branded share shops in cities. Abundant information about economy and companies.

A project report on overview of indian stock market

Ability to attract and retain superior and quality personnel. Limited customer appeal as the company product line does not include mutual funds which is increasingly becoming a preferred customer investment option. Inadequate product awareness among the retail investors. Limited customer appeal as the company does not have access to the BSE online space.

Brand awareness is low in the financial market. Promotional activities conducted by the company are not at par with the other firms. Bullish phase of the market attracts investing public.

Access to the BSE online space for the retail investors creates opportunity to increase clientele base. Awareness campaigns about online trading create new market. Threat of entry is high in this industry as the manpower required is less and capital requirement is medium. Project Report on Share Khan Competitive Analysis. A project report on overview of indian stock market.

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