Summer Training Project Report

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Summer Training Project Report

ON
“Awareness of on line trading and comparative analysis between
different stock brokers”

OF SUBMITTED FOR PARTIAL FULFILLMENT TOWARDS THE AWARD

PGDM
SUBMITTED BY

INDRA BHUSHAN
(PG090011)
UNDER THE SUPERVISION OF

Internal Guide External Guide
Mr. Satya Prakash Ray Mr.Nandan Kumar(A.V.P.)
Mr. Deepak Kumar Bagasi (S.M.)

TAKSILA BUSINESS SCHOOL
GREATER NOIDA (U.P.)

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DECLARATION

I undersigned here declare that the project report entitled ““Awareness of on

line trading and comparative analysis between different stock
brokers” written and submitted by me under the guidance of Mr.Nandan
Kumar (A.V.P) , Mr. Deepak Kumar Bagasi (S.M) and Mr. Satish Kumar
Pundir(R.M) is my original work. The findings in this project are based on data
collected by myself. I have not copied any other reports submitted to Taksila
Business School Greater Noida (U.P). I am fully aware that any such copying is
liable to punished in a way the university authority adjudge suitable.

PLACE…... INDRA BHUSHAN
DATE……………

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PREFACE
To maintain and cope up with the growing competition from the various online
trading providers, India Infoline needs to find potential clients, also the new
investors and satisfy there needs.

The Broad objective of the project is to equipped the trainees with all the quality
which is essential to face any circumstances which can arise while providing
service to the clients.

This project will accomplish to understand how the people interact with
technology savy products and if they are ready for doing all the trading through
net. The project also helps in understanding the trend of the scripts of the
particular sector (banking sector) in different market condition.
All these steps help me to understand how to cope up with different types of
people and there diversified need and satisfaction level.

Productivity is the main concern of any industrial/service organization for its
survival in the competitive business world; it can be achieved in different ways.

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ACKNOWLEDGEMENT

It gives me great pleasure to present the project report entitled
““Awareness of on line trading and comparative analysis

between different stock brokers”
Preservation, inspiration and motivation have always played a key role in
the success of any venture. In the present world of competition and
success, training is like a bridge between theoretical and practical working;
willingly I prepared this particular Project. First of all I would like to thank
the supreme power, the almighty god, who is the one who has always
guided me to work on the right path of my life.

My special thanks to my training head Mr. Deepak Kumar Bagasi (S.M.),
and my sincere thanks to Mr. satish Kumar pundir (R.M.). Also my thanks
to other staff members of India Infoline ltd.

My special thanks to Mr. Shivam Kumar Shukla for constantly guiding,
motivating and encouraging me.
I also thank my project Guide Mr. Satya Prakash ray for giving me their
valuable inputs for the project .And my thanks to Mrs. Shagun chahal
(I.T.S)
I am also thankful to all the friends
Last but definitely not the least my gratitude goes to my Mother and my
Father and my elder brother Chandra Bhushan Azad for believing in me.

PLACE …... INDRA BHUSHAN

DATE……………

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TABLE OF CONTENT
Title Pg.No

 EXECUTIVE SUMMERY…………………… 6

OBJECTIVES…of the study………………………… 7


 Scope of the study………………………… 8

 INTRODUCTION to the topic……………………….…. 9

 Introduction to the company…………………………….. 83

 METHODOLOGY…ADOPTED…………...…… 137

 QUESTIONNAIRE DESIGNING 145

 COLLECTION OF DATA 141

150
 DATA ANALYSIS…

 FINDINGS………………………………… 164

 RECOMMENDATION & SUGGESTIONS…………………. 165

 CONCLUSION…………………………………..…………..… 168

 REFERENCES/BIBILIOGRAPHY……………………………. 169

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Executive Summary

There is growing competition between
brokerage firms in post reform India.
For investor it is always difficult to
decide which brokerage firm to choose.
Since this industry is growing having
growth rate that attract me for doing
my summer internship in this field that
I can gather more and more knowledge
about the share market. It was the great
experience in that field and I am also
very thankful to the India Infoline for
giving me this opportunity to complete
my project .
Research was carried out to find that
which brokerage house, people prefer
and to figure out what people want
while investing in stock market.
This study suggests that people are
reluctant while investing in stock and
commodity market due to lack of
knowledge. Main purpose of

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investment is returns and liquidity,
commodity market is less preferred by
investors due to lack of awareness. The
major findings of this study are that the
people are interested to invest in stock
market but they have lack of
knowledge.

Through this report we were also able to
understand, what are our Company’s
(India Infoline Ltd.) strong and weak
points, on the basis of which we come to
know what can be the basis of pitching
to a potential client.

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OBJECTIVE OF THE
PROJECT

1. To know about the awareness of the
consumers towards stock brokers and
share market.

2. To study the market share of India
Infoline Ltd in the Share market and
identify the areas of competitive
advantage over other players.

3. To study about consumer awareness
& satisfaction, about operational
Services & procedures of India Infoline
ltd.

4. To study about the difficulties faced
by the clients/trades while trading with
India Infoline.

5. To identify the lacunae in the present
system suggesting the measures
improvement in current Trading
system.

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6. To study about the on line terminal
terms and Dmat account of India
Infoline ltd

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Sope of the study

Actually I have got my summer internship on two topics-

1-awareness of online trading
2-comparative analysis of India Infoline and different stock brokers

I would like to tell that now a day on line trading is a booming field for investor
because they can generate more returns as compared to other fields. I got
golden experience regarding on line trading when I went to market for survey.
Because I met no of person for knowing awareness of on line trading, Dmat
account, and comparative analysis between different stock brokers.

This project will help for those who dose not have the knowledge about the
trading and services offered by the different broker company. It will also help for
the people who are interested in the trading and in share market.

This will also helpful for the company IIFL because it is containing the
cooperative analysis of the different broker company, it also contains the strong
and weak points of IIFL. By that way they can remove their weaknesses and can
add more and more costumers in their series. Because people are facing a lot of
problem regarding online trading.

Hence this project have multidimensional scope

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INTRODUCTION OF STOCK MARKET
A stock, also referred to as a share, is commonly a share of ownership in a
corporation. In British English, the word stock has another completely different
meaning in finance, referring to a bond. It can also be used more widely to refer
to all kinds of marketable securities. Where a share of ownership is meant the
word share is usually used in British English.

History

The first company that issued shares is considered to be the Northern-European
copper mining enterprise Stora Kopparberg, in the 13th century.

Ownership

The owners and financial backers of a company may want additional capital to
invest in new projects within the company. If they were to sell the company it
would represent a loss of control over the company.
Alternatively, by selling shares, they can sell part or all of the company to many
part-owners. The purchase of one share entitles the owner of that share to
literally share in the ownership of the company, including the right to a fraction of
the assets of the company, a fraction of the decision-making power, and
potentially a fraction of the profits, which the company may issue as dividends.

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However, the original owners of the company often still have control of the
company, and can use the money paid for the shares to grow the company.

In the common case, where there are thousands of shareholders, it is impractical
to have all of them making the daily decisions required in the running of a
company. Thus, the shareholders will use their shares as votes in the election of
members of the board of directors of the company. However, the choices are
usually nominated by insiders or the board of the directors themselves, which
over time has led to most of the top executives being on each other's boards.
Each share constitutes one vote (except in a co-operative society where every
member gets one vote regardless of the number of shares they hold). Thus, if
one shareholder owns more than half the shares, they can out-vote everyone
else, and thus have control of the company.

Shareholder rights

Although owning 51% of shares does mean that you own 51% of the company
and that you have 51% of the votes, the company is considered a legal person,
thus it owns all its assets, (buildings, equipment, materials etc) itself. A
shareholder has no right to these without the company's permission, even if that
shareholder owns almost all the shares. This is important in areas such as
insurance, which must be in the name of the company not the main shareholder.

So as long as the shareholders agree that the management (agent) are
performing poorly they can elect a new board of directors which can then hire a
new management team.

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Owning shares does not mean responsibility for liabilities. If a company goes
broke and has to default on loans, the shareholders are not liable in any way.
However, all money obtained by converting assets into cash will be used to repay
loans, so that shareholders cannot receive any money until creditors have been
paid.

Means of financing

Financing a company through the sale of stock in a company is known as equity
financing. Alternatively debt financing (for example issuing bonds) can be done to
avoid giving up shares of ownership of the company.

Trading

Shares of stock are usually traded on a stock exchange, where people and
organizations may buy and sell shares in a wide range of companies. A given
company will usually only trade its shares in one market, and it is said to be
quoted, or listed, on that stock exchange.
However, some large, multinational corporations are listed on more than one
exchange. They are referred to as inter-listed shares.

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Buying

There are various methods of buying and financing stocks. The most common
means is through a stock broker. Whether they are a full service or discount
broker, they are all doing one thing – arranging the transfer of stock from a seller
to a buyer. Most of the trades are actually done through brokers listed with a
stock exchange such as the New York Stock Exchange.
There are many different stock brokers to choose from such as full service
brokers or discount brokers. The full service brokers usually charge more per
trade, but give investment advice or more personal service; the discount brokers
offer little or no investment advice but charge less for trades. Another type of
broker would be a bank or credit union that may have a deal set up with either a
full service or discount broker.

There are other ways of buying stock besides through a broker. One way is
directly from the company itself. If at least one share is owned, most companies
will allow the purchase of shares directly from the company through their
investor's relations departments. However, the initial share of stock in the
company will have to be obtained through a regular stock broker. Another way to
buy stock in companies is through Direct Public Offerings which are usually sold
by the company itself. A direct public offering is an initial public offering a
company in which the stock is purchased directly from the company, usually
without the aid of brokers.
When it comes to financing a purchase of stocks there are two ways: purchasing
stock with money that is currently in the buyers ownership or by buying stock on
margin. Buying stock on margin means buying stock with money borrowed

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against the stocks in the same account. These stocks, or collateral, guarantee
that the buyer can repay the loan; otherwise, the stockbroker has the right to sell
the stocks (collateral) to repay the borrowed money. He can sell if the share price
drops below the margin requirement, at least 50 percent of the value of the
stocks in the account. Buying on margin works the same way as borrowing
money to buy a car or a house using the car or house as collateral. Moreover,
borrowing is not free; the broker usually charges you 8-10 percent interest.

Selling

Selling stock in a company goes through many of the same procedures as
buying stock. Generally, the investor wants to buy low and sell high, if not in that
order; however, this is not how it always ends up. Sometimes, the investor will
cut their losses and claim a loss.
As with buying a stock, there is a transaction fee for the broker's efforts in
arranging the transfer of stock from a seller to a buyer. This fee can be high or
low depending on if it is a full service or discount broker.
After the transaction has been made, the seller is then entitled to all of the
money. An important part of selling is keeping track of the earnings. It is
important to remember that upon selling the stock, in jurisdictions that have them,
capital gains taxes will have to be paid on the additional proceeds, if any, that are
in excess of the cost basis.

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Technology’s on Trading

Stock trading has evolved tremendously. Since the very first Initial Public Offering
(IPO) in the 13th century, owning shares of a company has been a very attractive
incentive. Even though the origins of stock trading go back to the 13th century,
the market as we know it today did not catch on strongly until the late 1800s.
Co-production between technology and society has led the push for effective and
efficient ways of trading. Technology has allowed the stock market to grow
tremendously, and all the while society has encouraged the growth. Within
seconds of an order for a stock, the transaction can now take place. Most of the
recent advancements with the trading have been due to the Internet. The Internet
has allowed online trading. In contrast to the past where only those who could
afford the expensive stock brokers, anyone who wishes to be active in the stock
market can now do so at a very low cost per transaction. Trading can even be
done through Computer-Mediated Communication (CMC) use of mobile devices
such as hand computers and cellular phones. These advances in technology
have made day trading possible.
The stock market has grown so that some argue that it represents a country's
economy. This growth has been enjoyed largely to the credibility and reputation
that the stock market has earned.

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Types of shares

There are several types of shares, including common stock, preferred stock,
treasury stock, and dual class shares. Preferred stock, sometimes called
preference shares, have priority over common stock in the distribution of
dividends and assets, and sometime have enhanced voting rights such as the
ability to veto mergers or acquisitions or the right of first refusal when new shares
are issued (i.e. the holder of the preferred stock can buy as much as they want
before the stock is offered to others). A dual class equity structure has several
classes of shares (for example Class A, Class B, and Class C) each with its own
advantages and disadvantages. Treasury stocks are shares that have been
bought back from the public.

Derivatives

A stock option is the right (or obligation) to buy or sell stock in the future at a
fixed price. Stock options are often part of the package of executive
compensation offered to key executives. Some companies extend stock options
to all (or nearly all) of their employees. This was especially true during the dot-
com boom of the mid- to late- 1990s, in which the major compensation of many
employees was in the increase in value of the stock options they held, rather
than their wages or salary. Some employees at dot-com companies became
millionaires on their stock options. This is still a major method of compensation
for CEOs.

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The theory behind granting stock options to executives and employees of a
corporation is that, since their financial fortunes are tied to the stock price of the
company, they will be motivated to increase the value of the stock over time.

Primary market (IPO’s)

In financial markets, an initial public offering (IPO) is the first sale of a company's
common shares to public investors. The company will usually issue only primary
shares, but may also sell secondary shares. Typically, a company will hire an
investment banker to underwrite the offering and a corporate lawyer to assist in
the drafting of the prospectus.
The sale of stock is regulated by authorities of financial supervision and where
relevant by a stock exchange. It is usually a requirement that disclosure of the
financial situation and prospects of a company be made to prospective investors.
The Federal Securities and Exchange Commission (SEC) regulates the
securities markets of the United States and, by extension, the legal procedures
governing IPOs. The law governing IPOs in the United States includes primarily
the Securities Act of 1933, the regulations issued by the SEC, and the various
state "Blue Sky Laws".

Secondary market

The secondary market (also called "aftermarket") is the financial market for
trading of securities that have already been issued in its initial private or public
offering. Stock exchanges are examples of secondary markets. Alternatively,
secondary market can refer to the market for any kind of used goods.

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History
Secondary markets have a long history, beginning perhaps with a flourishing
trade in commercial bills of exchange in 12th and 13th century France. It was the
French King Philip the Fair who created the profession of broker, or "courtier de
change," in order to regularize this market.
Amsterdam's Bourse, which began operations in 1611, was the first true stock
exchange, and this reflected the importance of Holland in world trade at that time.

Function
In the secondary market, securities are sold by and transferred from one
speculator to another. It is therefore important that the secondary market be
highly liquid and transparent. The eligibility of stocks and bonds for trading in the
secondary market is regulated through financial supervisory authorities and the
rules of the market place in question, which could be a stock exchange.

Online Trading

What Does Online Trading Mean?
The act of placing buy/sell orders for financial securities and/or currencies with
the use of a brokerage's internet-based proprietary trading platforms. The use of
online trading increased dramatically in the mid- to late-'90s with the introduction
of affordable high-speed computers and internet connections.

Stocks, bonds, options, futures and currencies can all be traded online.

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Investopedia explains Online Trading
The use of online trades has increased the number of discount
brokerages because internet trading allows many brokers to further cut costs and
part of the savings can be past on to customers in the form of lower
commissions.

Another benefit of online trading is the improvement in the speed of which
transactions can be executed and settled, because there is no need for paper-
based documents to be copied, filed and entered into an electronic forma

ON LINE STOCK MARKET TRADING
STOCK EXCHANGE
Stocks (Shares, equity) are traded in stock exchange. India has two big stock
exchanges (Bombay Stock Exchange - BSE and National Stock Exchange -
NSE) and few small exchanges like Jaipur Stock Exchange etc. Investor can
trade stocks in any of the stock exchange in India.

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Stock exchanges of India-

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25

Types of online stock traders
Basically there are four types of online stock traders:
(1)Long-term traders – who hold their shares for one or more years
(2) Medium-term traders – who hold their stock anywhere from 1 month to six
months.
(3) Short-term traders – who ordinarily hold stock for a week, but this can be up
to one month
(4) Day traders – who buy and sell stock in the same day.

Stock Charts
If you are going to stand any chance of having a successful career as an online
stock trader, you’ll need to make sure that your software has the capability of
producing stock charts. The most common types of stock charts in use are:

Line charts: This is simply a line connecting stock price over a period of time.

Bar charts: a little more complex in that the information not only consists of
stock price movements over a period of time, but will also include the opening,
high, low and closing price of the stock for one particular day, from which you can
construct a bar chart.

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Reference chart: which track both the stock price and trading volume, which
is then used to plot where the stock price should go.

Candlestick charts: uses the same information that bar charts do, but
displays the information differently.

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ONLINE STOCK TRADING COMPANIES
1- 5 PAISA

2- SHARE KHAN

3-INDIA BULLS

4-ICICI DIRECT

5-MOTILAL OSWAL SECURITIES

6-HDFC SECURITIES

7 -RELIANCE MONEY

8-IDBI PAISA BUILDER

9-RELIGARE

10-GEOJIT

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11-NET WORTH STOCK BROKING

12-KOTAK SECURITIES

13-STANDARD CHARTERED_STC CAPITAL MARKETS LTD

14-ANGEL TRADE

15-HSBC INVEST DIRECT

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MY WORK AT INDIA INFOLINE LTD

1- Trader Terminal

2- Demat Account

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India Infoline Ltd.

User Manual

Trader Terminal

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Trader Terminal
India Infoline Ltd has Trader terminal as trading software. It is
design and built in house by the technology teach of India Infoline
Ltd.

Trader Terminal is a comprehensive trading tool, with superior
charting and analytical capabilities, that allows you to place orders
and get them executed at lighting fast pace.

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Index

1. Main Window…………………………………………………….6

2. File………………………………………………………………..7

3. Market…………………………………………………………...16

4. Reports………………………………………………………….123

5. Messages………………………………………………………..142

6. Links……………………………………………………………151

7. Tools……………………………………………………………188

8. Research………………………………………………………...198

9. Windows………………………………………………………...217

10. Help……………………………………………………………..228

11. Contact US……………………………………………………....233

12. Intraday chart and market depth………………………………...235

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After successfully installing the trading software when User clicks on the icon of
the Trader Terminal, it opens the windows as shown in the Snapshot-1

Snapshot-1

As shown in Snapshot-1 User can get connected to the server by using Internet
or VSAT connection. User will have to choose appropriate option before User
clicks on login.

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User will have to enter the correct login ID and Password to login successfully
into the software.
User can change the old password by entering the new password in New
Password field and same (new) password in the Conf. Password field along with
correct login ID in login ID field and Old password in Password field.
Neither the Login ID nor the Password is case sensitive.
The first login is actually a registration process where the server captures certain
key information about system and compares them with every subsequent login.
If some User tries to hack into your account from any other system he/she will
not be allowed to login even if he/she has your password since the machine
credentials would not match. Also all such attempts will not be counted towards
your unsuccessful attempts tally and therefore your account will never be locked
out due to some User else’s mischief or unscrupulous attempt.
User has option of changing the setting by clicking on the Setting before they
login.
When User clicks on the Setting then it shows the window as shown in the
Snapshot-2.
User can choose In HO Network or Use Proxy option. If User is opting for the
Use Proxy option then User will have to enter the Proxy IP.

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Snapshot-2

After choosing appropriate setting, when User enters the correct login ID and
Password and clicks on the Login User can enter into the software. It opens the
windows as shown in the Snapshot on successful log in.

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1. Main Window

After successful login it opens the main window as shown in the Snapshot-1.1.

Snapshot-1.1

In the Menu bar it will have following options as shown in the Snapshot-1.1.

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File
Market
Reports
Message
Links
Tools
Research
Windows
Help
Contact us
It will also have the SEBI registration no and NSE Code no in the Menu Bar.
It will also have today’s date (mm/dd/yyyy) and time in the Menu bar.

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2. File

When User clicks on the File in Menu bar it opens the windows as shown in the
Snapshot-2.1

Snapshot-2.1

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When User clicks on File in menu bar it will have following option as shown in the
Snapshot-2.1.
Log Out
Reconnect
Lock (Ctrl+O)
Change Password
Download masters
Exit
We will see all these option User by User.

Log Out

You can logout any time by accessing the ‘Logout’ (File>Logout) option from the
‘File’ menu. On logout your terminal will still be active.

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Snapshot-2.2

When User clicks on the Logout system asks the question, ‘do you want to
logout?’ as shown in the Snapshot-2.2
When User clicks on the Yes then he/she will be logout of the software.

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[Note:-This option is same as Exit]

Reconnect

This option is active only when connectivity to the server is lost.
User can reconnect to the server by accessing the ‘Reconnect’ option from the
‘File’ menu.

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Lock
User can lock the screen by accessing the ‘Lock’ (File>Lock) option from the
‘File’ menu.
The shortcut key for the same is ‘Ctrl+O’
When User clicks on File>Lock or press ‘Ctrl+O’ the screen will show the
windows as shown in the Snapshot-2.3.

Snapshot-2.3

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User can access all other options except entering of trades which terminal is
locked.
As shown in the Snapshot-2.3 it shows the message that ‘Your terminal has been
locked. Enter your password to unlock it’
User will have to enter the correct password to unlock the terminal.
When User clicks on the Exit User will exit from the trading terminal.

Change Password

User can change password by accessing the ‘Change Password’ (File>Change
Password) option from the ‘File’ menu.
When User Clicks on File>Change Password it opens the window as shown in
the Snapshot-2.4

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Snapshot-2.4

User will have to enter the Old Password, New Password and Confirm Password
(same as new password) before they click on OK.
When User clicks on the Cancel the Change Password window gets closed.
Password is valid only for 14 days, after which User have to compulsorily change
the password.
The new password should not be User that was used in the previous two
changes. In other words User cannot recycle a password for next two changes.

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Once User has changed the password it cannot be changed again within the next
24 hours.
Rules for Password
1. Password cannot be same as login ID
2. Password has to be at least 8 characters and maximum of 10 characters
3. It should contain at least 1 alphabet and 1 numeric
4. It can contain special characters
5. It cannot start with a space or special character
6. It cannot be reused for subsequent two changes

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Download Masters

User can down load the masters by accessing the ‘Download Masters’
(File>Download Master) option from the File Menu.
When User clicks on File>Download Master it opens the windows as shown in
the Snapshot-2.5.

Snapshot-2.5

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User will have to download master before User begins other options.
User will have to select Exchange (BSE or NSE or BSE and NSE) and Market
type (Cash or F & O or Cash and F & O) to down load the masters.
After selecting Exchange and Market type User has three options. User can
either click on Scrip master or Incremental download or Default Group.

Scrip master

This option is used when some has just installed TT and using it for the first time
then User need to load all the scrip and this option will do the same. It will load all
the scrips.
When User clicks on the Scrip master after selecting the exchange it downloads
it shows the message as shown in the Snapshot-2.6

48

Snapshot-2.6

It shows the message that Masters downloaded and created.

[Incremental Download:-This option is used when some User wants to add new
scrip to the master. Using this option User doesn’t need to load all the scrip. This
option will load only those scrips which were not in the scrip master before.]

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Exit

User can exit from the trading terminal by accessing the ‘Exit’ (File>Exit) option
from the ‘File’ menu.

Snapshot-2.7

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When user clicks on Exit it will ask “Do you want to Exit?’ as shown in the
Snapshot-2.7. If user clicks on Yes user can exit from the software.

3. Market

When User clicks on the Market in Menu bar it opens the windows as shown in
the Snapshot-3.1

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Snapshot-3.1

When User clicks on Market in menu bar it will have following option as shown in
the Snapshot-3.1
Market Watch
Market Analyser
Snap Quote
Price Alert
Indices
Buy/Offline Buy

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Sell/Offline Sell
Hedging Buy
Hedging Sell
Groups
Ticker
Historical chart
Option Calculator
We will see all these options User by User.

Market watch

User can open the Market watch window by accessing the ‘Market Watch’
(Market >Market watch) option from the ‘Market’ menu.
When User clicks on Market>Market Watch it opens the windows as shown in the
Snapshot-3.2.

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Snapshot-3.2

Using this window User can see the market details of the various scrips.
First of all User will have to add the scrip for which User wants to see the details.

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Market watch window will show following details of particular scrip.
Category
Exchange
Exchange type
Token
Symbol
Series
Percentage change
Indicator
Last rate
Bid quantity
Bid rate
Offer quantity
Offer rate
High
Low
Previous close
Total quantity
Last quantity
Weighted Average
Percentage Premium
Time

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Value
Total Bid quantity
Total Sell quantity
Open interest

After opening the market watch window when User right clicks on the window
then it will have following options as shown in the Snapshot-3.3.
Buy F1
Sell F2
Historical chart Crtl+H
Tick list
Market Depth
Load Group Crtl+G
Append from Group Crtl+A
Save to Group Crtl+S
Export scrip List
Import scrip List
Market watch setting Crtl+W
Hide/ Unhide Columns
Grid Settings Crti+Shift+S
Save to File
Add Scrip Ins
Add F&O scrip Crtl+Ins
Option chain
Remove Del
Remove all Crtl+Del
Option Pricing

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Snapshot-3.3

Add Scrip (Ins)

To add the scrip User will have to open the market watch window first then User
will have to right click and have to click on the Add scrip as shown in the
Snapshot-3.4.
The short cut for the same is Ins.

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Snapshot-3.4

When User clicks on the Add scrip or press Ins on the keyboard it opens the
windows as shown in the Snapshot-3.5

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Snapshot-3.5

As shown in the Snapshot User will have to select the segment for which User
wants to add the scrip.
There are three options available named NSE Cash, BSE Bash and NSE
Derivative.
Say for example User wants add the scrip of NSE’s Cash segment then User will
have to check the NSE cash and it will show the scrip available in the NSE.

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The available scrip will have following details.
Exchange
Exchange type
Code
Symbol
Series
Full name
User will have to check for the particular security User wants to add and then
have to click on Ok.
User can also search for particular security based on Code/Symbol or Name.

Say for example User wants to add two scrips in NSE segment named Bombay
Dyeing and Mfg. and Bharat Petroleum Corporation Limited whose symbols are
BOMBDYEING and BPCL. To add these scrips first User will have to check on
the NSE cash and then User will have to check these two scrips as shown in
Snapshot-3.6.

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Snapshot-3.6

After checking for these two scrip when User clicks on the OK then it shows
these two scrip as shown in the Snapshot-3.7

61

Snapshot-3.7

The added two scrips will show all those details which we mentioned in the
market watch window.

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Buy (F1)

Using this option User can buy particular scrip.
When User adds the scrip to the market watch window and wants to buy
particular scrip then User will have to click on that particular scrip.

Snapshot-3.8

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Say for example User wants to buy some quantity of scrip named MundraPort on
NSE-cash segment then User will have to add that scrip to that market watch
window and have to single click on it as shown in the Snapshot-3.8.

Snapshot-3.9

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After single click on MundraPort when User right clicks then it shows the options
as shown in the Snapshot-3.9 and User will have to click on the Buy.
Or
User will have to single click on MundraPort as shown in the Snapshot and have
to press F1(short-cut) then it will open the windows as shown in the
Snapshot-3.10

Snapshot-3.10

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As shown in the Snapshot-3.10 User will have to enter the buy quantity.
User can buy the particular scrip at market price or User can limit the price.
When User enters the buy quantity at market price and click on Place then it will
buy the shares at a rate available in the market. (At the price of the best seller).
User also has option to disclose quantity. This option is used to disclose the
quantity. Say for example User wants to buy 500 shares of MundraPort and want
to disclose only 100 then User will have to enter the 100 in the DiscQty field and
it will disclose only 100 shares in the market.
When User enters the buy quantity at limit price then User will have to enter the
price at which User wants to buy that particular share and User will have to click
on the Place. The limit price will get executed when it will find its match.
User can also avail the option of the stop-loss order. User will have to enter the
trigger price and limit price for both the order.
User can also use the option of the IOC (Immediate or Cancel). When User
enters the buy order using this option then if the order will not find the match
immediately then it will get cancel.

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Sell (F2)
Using this option User can sell particular scrip.
When User adds the scrip to the market watch window and wants to sell
particular scrip then User will have to click on that particular scrip.

Snapshot-3.11
Say for example User wants to sell some quantity of scrip named Reliance
Petroleum Limited on NSE-cash segment then User will have to add that scrip to

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that market watch window and have to single click on it as shown in the
Snapshot-3.11

Snapshot-3.12

After single click on RPL when User right clicks then it shows the options as
shown in the Snapshot-3.12 and User will have to click on the Sell.
Or

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User will have to single click on RPL as shown in the Snapshot and have to
press F2(short-cut) then it will open the windows as shown in the Snapshot-3.13

Snapshot-3.13

As shown in the Snapshot-3.13 User will have to enter the sell quantity.
User can sell the particular scrip at market price or User can limit the price.
When User enters the sell quantity at market price and click on Place then it will
sell the shares at a rate available in the market. (at the price of the best buyer).

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User also has option to disclose quantity. This option is used to disclose the
quantity. Say for example User wants to sell 500 shares of RPL and want to
disclose only 100 then User will have to enter the 100 in the DiscQty field and it
will disclose only 100 shares in the market.
When User enters the sell quantity at limit price then User will have to enter the
price at which User wants to sell that particular share and User will have to click
on the Place. The limit price will get executed when it will find its match.
User can also avail the option of the stop-loss order. User will have to enter the
trigger price and limit price for both the order.
User can also use the option of the IOC (Immediate or Cancel). When User
enters the sell order using this option then if the order will not find the match
immediately then it will get cancel.

Historical chart

Using this option User can view the historical chart of particular scrip.
When User adds the scrip to the market watch window and wants to see the
historical chart of particular scrip then User will have to click on that particular
scrip.

70

Snapshot-3.14

Say for example User wants to see the historical chart of scrip named Reliance
Snapshot-3.14.

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Snapshot-3.15

shown in the Snapshot and User will have to click on the Historical chat.
Or
User will have to single click on RPL as shown in the Snapshot and have to
press Crtl+H(short-cut) then it will show the historical chat as shown in the
Snapshot-3.16.

72

Snapshot-3.16

The historical chart will be from the 11th May, 2006.
Using +/- User can Zoom In/Zoom out the graph.

73

Tick List

Using this option User can view the Tick List of particular scrip.
When User adds the scrip to the market watch window and wants to see the Tick
List of particular scrip then User will have to click on that particular scrip.

74

Snapshot-3.17

Say for example User wants to see the Tick list of scrip named Reliance
Snapshot-3.17.

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Snapshot-3.18

shown in the Snapshot-3.18 and User will have to click on the Tick List.

Snapshot-3.19

When User clicks on the tick list it shows the details as shown in the
Snapshot-3.19.

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The tick list will have following details.
Name of the scrip on the top
Time
Rate
Quantity
The latest executed quantity along with its rate and time on the top.

DMAT ACCOUNT

Demat account is a safe and convenient means of holding securities
just like a bank account is for funds. Today, practically 99.9%
settlement (of shares) takes place on demat mode only. Thus, it is
advisable to have a Beneficiary Owner (BO) account to trade at the
exchanges.

BENEFITS OF DMAT ACCOUNT

1. A safe and convenient way of holding securities (equity and debt
instruments both).
2. Transactions involving physical securities are costlier than those
involving dematerialised securities (just like the transactions
through a bank teller are costlier than ATM transactions).
Therefore, charges applicable to an investor are lesser for each
transaction.

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3. Securities can be transferred at an instruction immediately.
4. Increased liquidity, as securities can be sold at any time during
the trading hours (between 9:00 AM to 3:30 PM on all working
days), and payment can be received in a very short period of
time.
5. No stamp duty charges.
6. Risks like forgery, thefts, bad delivery, delays in transfer etc,
associated with physical certificates, are eliminated.
7. Pledging of securities in a short period of time.
8. Reduced paper work and transaction cost.
9. Odd-lot shares can also be traded (can be even 1 share).
10.Nomination facility available.
11.Any change in address or bank account details can be
electronically intimated to all companies in which investor holds
any securities, without having to inform each of them separately.
12.Securities are transferred by the DP itself, so no need to
correspond with the companies.
13.Shares arising out of bonus, split, consolidation, merger etc. are
automatically credited into the demat account of the investor.
14.Shares allotted in public issues are directly credited into demat
account of the applicants in quick time

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DOCUMENTS SHOULD BE REQUIRED FOR DEMAT
ACCOUNT

• IDETIFICATION PROOF-
Any one should be -

1. Voter Id
2. Driving License
3. passport
4. Pan Card

• RESIDENCE PROOF-
Any one should be-

1. Ration card
2. Voter Idcard
3. Latest Bank Statement
4. Telephone Bill Statement
5. Electricity Bil Statement
6. Passport

• ONE PHOTO
• Marginal cheque only Rs 5750

Candidates name should be same on every documents.

Bank details:

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• Copy of cancelled cheque with printed name from the bank.

• Copy of bank passbook with name and address and copy of cancelled
cheque.

• Bank statement with name and address (duly authorized by the bank, if
statement is on plain paper) not more than 4 months old and copy of
cancelled cheque of MICR & bank detail verification.

Maximum Number of holders in a Demat Account
A maximum of three persons are allowed to open a joint demat
account in their names.

DEMATERIALISATION

Definition
Dematerialization is the process of converting physical shares (share
certificates) into an electronic form. Shares once converted into
dematerialized form are held in a Demat account.

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Dematerialization Process

An investor having securities in physical form must get them
dematerialized, if he intends to sell them. This requires the investor to
fill a Demat Request Form (DRF) which is available with every DP and
submit the same along with the physical certificates. Every security
has an ISIN (International Securities Identification Number). If there is
more than one security than the equal number of DRFs has to be filled
in. The whole process goes on in the following manner:

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Rematerialisation
The process of getting the securities in an electronic form, converted
back into the physical form is known as Rematerialisation. An investor
can rematerialize his shares by filling in a Remat Request Form (RRF).
The whole process goes on as follows:

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• Depository - An organization that facilitates holding of securities in
the electronic form and enables DPs to provide services to investors
relating to transaction in securities. There are two depositories in
India, namely NSDL and CDSL. As per a SEBI guideline, the
minimum net worth stipulated for a depository is Rs.100 crore

• NSDL/CDSL - The securities are held in depository accounts, like
the funds are held in bank accounts. There are two depositories in
India namely NSDL and CDSL. NSDL (National Securities Depository
limited) was established in August 1996 and is the first depository
in India. CDSL (Central Depository Securities Limited) is the other
depository and was established in 1999.

• DP (Depository Participant) - A Depository Participant can be a
financial organization like banks, brokers, financial institutions,
custodians, etc., acting as an agent of the Depository to make its
services available to the investors. There are a total of 538 DPs
registered with SEBI, as on March 31, 2006 and each DP is
assigned a unique identification number known as DP-ID.

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COMPANY INDRODUCTION

India Infoline originally in corporated on October 18, 1995 as probity
research and services pvt ltd. At Mumbai under the companies act, 1956 with
registration no. 1193797. And become a public limited company on april 28, 2000
The name of the company was changed to India Infoline.com limited on may 23,
2000 and later to India Infoline Limited on march 23, 2001. it is the first company
in India to foray into the online distribution of mutual funds.
It is a one stop financial services shop, most respected for quality of its advice,
personalized service and cutting edge technology. The no.1 corporate agent for
ICICI prudential life insurance company.Research acknowledged by Forbes as
“Must read for investor in south Asia”
Listed on Bombay and national stock exchange with anet worth of INR 200 crore
and a market cap of over INR 1970 crore.
The company has a network of 976 business locations (brances and sub-
brokers) spread across 365 cities and towns. It has more than 800,000
customers. It is registered with NSDL as well as CDSL as a depository
participant providing a one- stop solution for clients trading in the equities market
India Infoline group, comprising the holding company, India Infoline Limited
andits wholly-owned subsidiaries, straddle the entire financial services space
with offerings ranging from equity research, equities and derivatives trading,
commodities trading, portfolio management services, mutual funds, life
insurance, fixed deposits, govt. bonds and other small savings instruments to

85

loan products and investment banking. India Infoline also owns and manages the
websites www.Indiainfoline.com and www.5Paisa.com .
In todays competitive world there are many goods chasing few customers some
are trying it expands their size and share of existing market. As a result there are
loser and winners. Winners are those who crefully analyze needs identify
opportunities and create also rich offers for target customer.
The objective of the market research to determine the demand and supply and
use of the product and competitors study so as to get the total market scenario of
the product for analyzing market problem research is needed. A firm can
obtained market research in a number of ways . It can hire market research firm
or it can ask students to design and carry out market research project.
These marketing problems and opportunities if entrust to the students of
marketing specially when they seek the same during the project gives
opportunities to apply their theoretical knowledge and managerial knowledge.
India Infoline.com and 5paisa.com is related to share market, it is equity to
caused organization tracing its lineage to SSKL, a veteran solution company with
over 8 decades of experience in the lead in stock market.

91

How we differentiate ourselves

94

Performance highlights – Financial
Year, 2009-10
Overall consolidated financial performance
• Annual Income at Rs11,239 mn, up 28% yoy
• PBT and PAT at Rs3,547 mn and Rs2,320 mn, up 62% yoy and
60% yoy respectively
• EBIDTA margin for the year was 39% as compared to 33% in
the previous year
Broking
• Average daily turnover up 57% in FY10 to Rs35 bn
• Overall market share in NSE was 3.8% in FY10
• Commodities brokerage registers 47% increase yoy
Life Insurance
• Life insurance distribution income at Rs536 mn, up 11% yoy
• In FY10, the relative share of pension products have increased
from 32% to 35%
Investment Banking
• During the year, our Investment Banking team advised and
managed more than 10 transactions including the
• Cox & Kings IPO, Infinite Computer Solutions IPO and the
Gammon India QIP
• Income from Investment Banking increased 16 times to Rs 388
mn, as against Rs 23 mn in FY09
Credit and Finance
• Book size in FY10 increased to Rs16.3 bn from Rs9.6 bn
• Loan growth likely to accelerate in the next year on the back of
improving macro-economic scenario
Wealth Management
• Assets under advisory over Rs 50 bn – spanning over 1,000
families.
• Wide gamut of products meeting risk - return profiles for all

segments.

95

Financials: Over the years

96

Financial Highlights – Financial Year,
2009-10

97

Financial Highlights: Jan – Mar
Quarter, 2009-10

99

Equities

• Market share on NSE maintained at 3.8% in FY10
• Average daily turnover up 57% yoy in FY10 to Rs35.02bn
• Present in over 2,300 business locations through branches and sub-
brokers.
• IIFL Securities Pte Ltd, our Singapore-based subsidiary, received in-
principle approval for Securities Trading and Clearing memberships from
Singapore Exchange (SGX)
• Our first Global Investors’ Conference at Mumbai - ‘Enterprising India’ had
a participation of more than 450 Fund Managers, over 70 corporates,
world renowned economists and thought leaders.

104

Group brand identity changed to IIFL

106

Different competitors
The major players in online trading

• 5paisa.

• IndiaBulls.com

• ICICIDirect.com

.Share khan.com

• HDFCsec.com

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5 paisa.com

5paisa is Online Stock Trading Company of India Infoline Securities Private
Ltd., Owner of popular business portal Indiainfoline.com. Besides high quality
investment advice from an experienced research team, the site offers real time
stock quotes, market news and multiple tools for technical analysis.

Trade In: BSE and NSE

Trading Terminals:
5Paisa offers 2 different online trading terminals to its customers:

1. 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.

2. Trader Terminal (TT)

Trader Terminal is design for high volume equity traders or day traders.
Trader Terminal provides high volume trading with powerful interface and
fast order execution.

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Few popular features of trader terminal are:

• Fast trade execution with instant trade confirmation.
• Live streaming quotes and price watch on any number of stocks.
• Intra day charts, updated live, tick-by-tick.
• Live margin, position, marked to market profit & loss report.
• Set any number of price alerts on any number of scrips.
• Flexibility to customize screen layout and setting.
• Facility to customize any number of portfolios & watch lists.
• Facility to cancel all pending orders at one click.
• Facility to square off all transactions at one click.
• Top Gainers, Top Losers, Most Active, updated live.
• Index information; index chart, index stock information live.
• Market depth, i.e. Best 5 bids and offers, updated live for all stocks.
• Online access to both accounts and DP to check live updated Order and
Trade Book.
• Facility to place after market orders.
• Online fund transfer facility from leading Banks including ICICI, HDFC,
CITI and UTI banks.
• Online intra-day technical calls.
• Historical charts and technical analysis tools.
• India Infoline's world - acclaimed news service and research.
• and many more.

How to open account with 5Paisa

There are few steps to open an account with 5paisa.

109

1. First log on to their site and fill the registration form. Once you fill the form
they will give you 2 options. Either you can receive the form by mail or one
of their agent visit you personally. Personal visit is not available in all
cities.
2. After registration, you will be required to deposit a certain amount of initial
margin deposit with them. The deposit can be of any amount, but it should
not be less than Rupees Five Thousand.
3. When your account is activated, you will receive a welcome kit, which
contains details about your account, your username and password, and
the user's manual. The kit will also include a CD ROM which will allow you
to install trading software.
4. It will take approximately 15 days to complete the formalities if all the
correct documents are sent and the forms are correctly filled.
5. Documents required are 2 latest passport size photos, proof of identity
and address i.e. say electricity/ telephone bill, passport photocopies and
PAN number.

110

Advantages of 5paisa

1. Very fast execution speed.
2. Rates are very competitive then other providers.
3. Easy online fund transfer facility from leading Banks including ICICI,
HDFC, CITI ,AXIS,YES BANK,BANK OF BARODA
4. Free facility of subscribing to mutual funds, equity IPOs and other
investment products.

Disadvantages of 5paisa

1. No intra-day tick by tick charts in Investor Terminal (IT).
2. Investing in IPO and Mutual Funds is not so easy like in ICICIDirect.
3. Learning 5paisa Trading Terminal is little hard.

IPO / Mutual Funds investment through 5Paisa (IndiaInfoLine)

1. 5Paisa provides free facility of subscribing to mutual funds, equity IPOs
and other investment products using internet banking account of ICICI,
HDFC, CITI and UTI banks.
2. Registered users with 5Paisa can logon to following website to apply in an
IPO:
http://www.indiainfoline.com/ipo
3. While applying for IPO shares online through 5Paisa, Investor are taken to
there corresponding banks homepage. Investors can use there net
banking user id & password & transfer funds directly using any of these
banks.
4. 5Paisa members can use the similar steps to invest in Mutual Funds
online.

111

Least Brokerage Charges Starting As
Follows:
opening charge of Dmat- zero
Intraday: From 0.03% To 0.05%.

Delivery: From 0.30% To 0.50%.

Easy online Trading Platform

Multiple Exchanges on Single Screen

Stop-loss feature.

Facility to customize any number of portfolios & watchlists.

Online Tips Free Of Cost.

Online Terminal Free Of Cost. .

Expert inputs from industry professionals.

112

A/C opening charge- zero
Name of the software used- Trader Terminal.
Software installation charge- Nil.
No. of scripts provided by the software- unlimited.
Maintainance charge- Nil.l
Exposure- 8 times (intra day) 3 times (delivery).
Name of the bank with the help of which customer get the facility of net
banking- HDFC Bank, Axis Bank, ICICI Bank.,CITI, , YES BANK,BANK OF
BARODA
Services provided- Equity,IPO,MF,PMS,Commodities,Insurance,Wealth
Management Services, Mortgages.
DP sells charge- 15 per instruction + service tax.
Brokerage- 0.01% to.05% intraday 0.1% to 0.5% deliveries.
Transaction Report- sms, daily mail, daily courier,
Prepaid Scheme- not available.
Types of trading accounts provided- De-Mat a/c, Trading a/c , Margin a/c.
Network-976 business locations,spread across 365 cities and more than 800,000
customers..
Margin money- minimumRs5750
Secrecy- telephone logger with recorder.

113

Indiabulls

Type Public (NSE:[1])

Industry Financial Services

Founded 2000 As Indiabulls Financial Services Ltd.

Headquarters Mumbai, India

Key people Sameer Gehlaut, Chairman & CEO Rajiv Rattan,
President & CFO, Saurabh MittalDirector

Products Securities, Consumer Finance, Mortgages,Real Estate

Employees ~ 20000 (2007)

Website www.Indiabulls.com

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INDIA BULLS.COM
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

Indiabulls Group is one of India’s top Business houses with businesses spread
over Real Estate, Infrastructure, Financial Services, Securities, Retail, Multiplex
and Power , Charterd Aviation sectors. The group companies are listed on
important Indian and Overseas markets. Indiabulls has been conferred the status
of a “Business Superbrand” by The Brand Council, Superbrands India.'

Type of Account

1. 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'.

Application Trading Terminal(Need Installation)

115

1. 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.

Document Required to open Equity Trading Account with Indiabulls

1. One passport size photograph.
2. Proof of bank account
3. Copy of PAN card.
4. Identity proof - copy of passport or PAN card or voter ID or driving license
or ration card.
5. Address proof - copy of driving license or passport or ration card or voter
card or telephone bill or electricity bill or bank statement.

Brokerage and fees :

1. 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 Equity Trading Account

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

DRAWBACKS OF INDIABULLS

W Management team is not serious.
e Brokerage is very high.
r Don’t send proper transaction report daily.
Take time for opening an accout

Brokerage charges

SEBI allows brokers to charge up to 2.5% on every trade transaction. Indiabulls
charges 0.5% (either buy or sell) for delivery trades. A complete trade (buy &
sell) would cost 1%. The intra-day brokerage is 0.05%. Brokerage costs reduce
with further volumes in trade. 0.3% for delivery & 0.01% for intraday is easily
possible now a days

117

A/C opening charge-Rs 1200
Name of the software used- PIB(Power India Bulls)
Software installation charge- 750/-
No. of scripts provided by the software- unlimited
Maintenance charge- nil
Exposure- 3 times intraday and 8 times delivery.
banking- HDFC,IDBI,ICICI and Axis Bank.
Services provided- Equity, Housing Loan, Personel Loan, Insurance.
12
DP sell charge- 10/-
Brokerage- Intraday-.05% & Delivery-.5%
Transaction Report- Through mail & courier(Free of cost)
Types of trading accounts provided- Cash a/c , Intra a/c, Margin a/c.
Network- 718 branches and 4500000 customers across the country.
Margin money- NIL
Secrecy- use logger phone so that the broker cannot go beyond their word.

118

ICICIDirect.com
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. Trading is available in BSE
and NSE.

Products and Services

A product for every need: ICICIdirect.com is the most
comprehensive website, which allows you to invest in Shares,
Mutual funds, Derivatives (Futures and Options) and other financial
products. Simply put we offer you a product for every investment
need of yours.

1. Trading in shares:
ICICIdirect.com offers you various options while trading in shares.

Cash Trading : This is a delivery based trading system, which is
generally done with the intention of taking delivery of shares or
monies.

Margin Trading : You can also do an intra-settlement trading upto
3 to 4 times your available funds, wherein you take long buy/ short

119

sell positions in stocks with the intention of squaring off the position
within the same day settlement cycle.

MarginPLUS Trading : Through MarginPLUS you can do an intra-
settlement trading upto 25 times your available funds, wherein you
take long buy/ short sell positions in stocks with the intention of
squaring off the position within the same day settlement cycle.
MarginPLUS will give a much higher leverage in your account
against your limits.

CallNTrade® : CallNTrade® allows you to call on a local number
in your city & trade on the telephone through our Customer Service
Executives. This facility is currently available in over 11 major
states across India.

Trading on NSE/BSE : Through ICICIdirect.com, you can trade
on NSE as well as BSE.

Market Order : You could trade by placing market orders during
market hours that allows you to trade at the best obtainable price in
the market at the time of execution of the order.

Limit Order : Allows you to place a buy/sell order at a price defined
by you. The execution can happen at a price more favorable than
the price, which is defined by you, limit orders can be placed by you
during holidays & non market hours too.

120

2. TRADE IN DERIVATIVES:

FUTURES

Through ICICIdirect.com, you can now trade in index and stock
futures on the NSE. In futures trading, you take buy/sell positions in
index or stock(s) contracts having a longer contract period of up to
3 months.

Trading in FUTURES is simple! If, during the course of the contract
life, the price moves in your favour (i.e. rises in case you have a
buy position or falls in case you have a sell position), you make a
profit.

Presently only selected stocks, which meet the criteria on liquidity
and volume, have been enabled for futures trading.

Calculate Index and Know your Margin are tools to help you in
calculating your margin requirements and also the index & stock
price movements. The ICICIDIRECT UNIVERSITY on the HOME
page is a comprehensive guide on futures and options trading.

OPTIONS

An option is a contract, which gives the buyer the right to buy or sell
shares at a specific price, on or before a specific date. For this, the
buyer has to pay to the seller some money, which is called
premium. There is no obligation on the buyer to complete the
transaction if the price is not favorable to him.

121

To take the buy/sell position on index/stock options, you have to
place certain % of order value as margin. With options trading, you
can leverage on your trading limit by taking buy/sell positions much
more than what you could have taken in cash segment.

The Buyer of a Call Option has the Right but not the Obligation to
Purchase the Underlying Asset at the specified strike price by
paying a premium whereas the Seller of the Call has the obligation
of selling the Underlying Asset at the specified Strike price.

The Buyer of a Put Option has the Right but not the Obligation to
Sell the Underlying Asset at the specified strike price by paying a
premium whereas the Seller of the Put has the obligation of Buying
the Underlying Asset at the specified Strike price.

By paying lesser amount of premium, you can create positions
under OPTIONS and take advantage of more trading opportunities.


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Type of Account

ICICIDirect offers 3 different online trading platforms to its customers:

1. Share Trading Account

Share Trading Account by ICICIDirect is primarily for buying and selling of
stocks in BSE and NSE.
This account allows Cash Trading, Margin Trading, MarginPLUS Trading,
Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone.

ICICIDirect.com website is the primary trading platform for this trading
account. They also provide installable application terminal based
application for high volume trader.

2. Wise Investment Account

Along with stock trading and IPO investing in BSE and NSE, Wise
Investment account also provide options to invest in Mutual Funds and
Bonds online.

Online Mutual funds investment allows investor to invest on-line in around
19 Mutual Fund companies. 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

123

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.

3. 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 independent market expertise and support through a
dedicated Relationship Manager from ICICI.

Active Trader also provides commodity trading.

Brokerage and fees

1. Account opening fees : Rs 750/- (One time non-refundable)
2. Brokerage : ICICIDirect.com brokerage varies on volume of trade and
inclusive of demat 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 0.85% on delivery based
trades.

How to open account with ICICIDirect?

For Online Stock Trading with ICICI, investor needs to open 3 accounts...ICICI
Bank Account, ICICI Direct Trading Account and ICICI Demat Account (DP
Account).

124

Note: If you already have a bank account or demat account with ICICI, you could
link it with new ICICIDirect trading account.

Opening trading account with ICICI is easy. You could use one of the following
options to open account with ICICIDirect.

• Visit ICICIDirect.com and fill the "Open an Account" form.
• Call ICICI and tell them that you are interested in opening an account with
them.

In both the cases ICICI representative contact you in a day or two and tell you
about the procedure to open the account. They usually send somebody to your
home to collect documents, signature and for demo if required.

Advantages of ICICIDirect

1. 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. There is
absolutely no manual interfere require. This is truly online trading
environment.
2. Unlike most of the online trading companies in India which require
transferring money to the broker's pool or towards deposits, at ICICIDirect
you can manage your own demat and bank accounts through
ICICIdirect.com. Money from selling stock is available in ICICI bank
account as soon as the ICICIDirect receive it.
3. Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings
Schemes all from one website. General Insurance is also available from
ICICI Lombard.

125

4. Trading is available in both BSE and NSE.

Disadvantages of ICICIDirect

1. Getting access to ICICIDirect.com website during market session can be
frustrating.
2. ICICIDirect brokerage is high and not negotiable.
3. Not all stocks are available under Margin Plus.

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A/C opening charge-Rs750-
Name of the software used- not available one can access through net.
Maintenance charge- Rs.450/- from 2nd year.
Exposure- 5 times for margin and 25 times for margin plus.
banking- ICICI(providing zero balance in saving account)
Services provided- Equity,IPO,Commodities,Insurance,Mutual Funds, GOI
bonds,Derivatives, Postal Savings.
Brokerage- intra day-.10%-.15%
Delivery- .4%-.85%
Transaction Report- Through Courier(free of cost)
Types of trading accounts provided- De-Mat a/c, Trading a/c , Saving a/c.
Network- 2124 branches across the countries and 19 foreign branches.
Margin money- Rs.500/-
Secrecy- password provided to the customers and it can be changed by the
customer only.

127

SHARE KHAN.COM

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

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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.

Type of Account

Classic Account Trading Terminal
1. 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.

a. Online trading account for investing in Equities and Derivatives
b. Free trading through Phone (Dial-n-Trade)
I. Two dedicated numbers for placing your orders with your
cellphone or landline.
II. Automtic funds tranfer with phone banking (for Citibank and
HDFC bank customers)

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III. Simple and Secure Interactive Voice Response based
system for authentication
IV. get the trusted, professional advice of our telebrokers
V. After hours order placement facility between 8.00 am and
9.30 am
c. Integration of: Online trading + Bank + Demat account
d. Instant cash transfer facility against purchase & sale of shares
e. IPO investments
f. Instant order and trade confirmations by e-mail
g. Single screen interface for cash and derivatives

SpeedTrade Treading Terminal
2. ShareKhan SpeedTrade account

This accounts for active traders who trade frequently during the day's
trading session. Following are few popular features of SpeedTrade
account.

a. Single screen interface for cash and derivatives
b. Real-time streaming quotes with Instant order Execution &
Confirmation
c. Hot keys similar to a traditional broker terminal
d. Alerts and reminders

130

e. 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.

How to open account with Sharekhan?

For online trading with Sharekhan, investor has to open an account. Following
are the ways to open an account with Sharekhan:

• Call them at phone number provided below and ask that you want to open
an account with them.
1. Call on Toll free number: 1-800-22-7500 to speak to a Customer
Service executive
2. If you are in Mumbai call on 022-66621111
• Visit one of their branches. Sharekhan has a huge network all over India.
Click on http://sharekhan.com/Locateus.aspx this link to find out your
nearest branch. Just select the place near you and you'll find a manager to
assist you there.
• You can send them an Email on info@sharekhan.com to know about their
products and services.
• If you wish to chat with customer service representative, you can join the
chat sesssion.

131

Advantages of Sharekhan:

1. Online trading is very user friendly and one doesn't need any software to
access.
2. They provides good quality of services like daily SMS alerts, mail alerts,
stock recommendations etc.
3. 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.

Disadvantages of Sharekhan:

1. 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).
2. Lots of hidden rules and charges.
3. They do not provide facility to book limit order trades during after-hours.
4. Classic account holders cannot trade commodities.
5. Cannot purchase mutual funds online.
6. Their management team is not serious
7. Their brokerage rate is not fixed.
8. Take large time for account opening.
9. They give wrong information at the time of opening the account.
10. They don’t send daily transaction report

132

A/C opening charge- 750/-
Name of the software used- Java ssn.
Software installation charge- nil
Maintenance charge-
Exposure- 4 times for intraday and delivery both.
banking- AXIS bank, HDFC bank, UBI, IDBI,City Bank.
Services provided- Equity,IPO,MF,Derivatives,Commodities.
DP sell charge- NIL
Brokerage- intraday-.05%-.07% & Delivery-.25%-.40%
Transaction Report- Through mail(Free of Cost)
Prepaid Scheme- yes
Types of trading accounts provided- Classic a/c (for sudden user)
Spend Trade a/c(for frequent user)

Network- 510 centers across 170 cities 2,18,000 customers.
Margin money- Rs.5000/-
Secrecy- Security Socket Layer(SSL),a security that the information
transmitted between customer and agent , given by Versign , universally
accepted world wide web.The security encripton level in Sharekhan is 128
bit.

133

HDFCsec.com

HDFC Securities(HDFCsec) is Equity Trading Company of HDFC Bank. HDFC
Securities provide both online trading and trading on phone. The HDFC
Securities trading account has a unique 3-in-1 feature that integrates your HDFC
Securities trading account with your existing HDFC bank savings account and
existing Demat account. Funds / shares are seamlessly moved from the linked
Demat/Bank account to execute the transactions.

HDFCsec provides Cash-n-Carry on both NSE and BSE, Day trading on both
NSE and BSE, Trade on Futures & Options on the NSE and Online IPO
Investment.

Features on HDFC Securities Online trading

1. Seamless Transactions - By integrating your accounts, we ensure minimal
waste of time during movement of your funds and shares.
2. Speed - Orders are placed electronically, so proceeds are available
instantly.

134

3. No manipulation - To prevent any mismanagement, we will send you an
email confirmation, the minute your order is executed.
4. Safety and Security - HDFC Securities offer the highest level of security
such as 128-bit encryption technology.
5. Dedicated and Separate contact numbers - for trading over the phone as
well as for customer care.

Document Required to open account with HDFCsec
Any Indian resident/non resident individual NRI (except for the US NRIs) or an
Indian Corporate can register with HDFCsec. However, to become a member,
you will have to open savings/current and demat accounts with HDFC Bank.
Following documents are required to open accouunt with HDFCsec

1. One passport size photograph.
2. Copy of PAN card.
3. Identity proof - copy of passport or PAN card or voter ID or driving license
or ration card.
4. Address proof - copy of driving license or passport or ration card or voter
card or telephone bill or electricity bill or bank statement.

Brokerage and fees :

1. Rs. 799/- (Including trading account, bank account and DP account with
HDFC)
Please note: HDFC Bank savings account required a quarterly minimum
balance of Rs. 2,500/-. If you already have Saving account or DP account
with HDFC, you could link them with trading account.

135

Summary of service charges

For the convenience of our customers and as a fair practice measure, we list
below the various standard charges that we levy for our services/facilities. These
charges are w.e.f. Apr 1 2007.Account opening charges :
Rs. 799/- for Resident individuals

Rs. 1200/- for Non Resident Individuals

Statutory levies
These are charged as applicable from time to time. The following charges are
presently levied as statutory dues.
Securities Transaction tax
* Rate effective from Apr 1 2007 :

136

Segment
Exchange
Delivery
Intraday

Cash
NSE and BSE
0.125%
0.025%

Derivatives *
NSE
0.017
0.017%

* at the time of sale

Service Tax and Education Cess :
Service Tax is charged at the rate of 12% and Education Cess at 2% and Higher
Education cess at 1% (Total tax 12.36%).

REMARK

137

The above charges are subject to changes/ revision from time to time. The
changes/revision will be displayed on the Company's website.

The above charges do not include any charges that may be levied for
DP/Banking services.

The above charges are applicable for all clients other than NRI clients.

A/C opening charge- 799/-
Name of the software used- Sun Java.
Software installation charge- NIL
Maintenances charge- 500/- from 2nd year.
Exposure- 5 times for intraday.

138

12
Banking- HDFC, SB I, ICICI, Axis Bank.
Services provided- Equity, IPO, PMS, Derivatives, Mutual Funds.
Brokerage- Delivery-.50% & Intraday-.05%
Transaction Report- Through mail/courier(Free of cost)
Types of trading accounts provided- De-Mat a/c, Trading a/c, Margin a/c.
Network- 480 branches in 230 cities.
Margin money- 5000/-
Secrecy- password cannot be accessed through internet.HDFC Securities
offer the highest level of security such as 128-bit encryption and
SSL(Secured Socket Layer) technology.

METHODOLOGY…ADOPTED
Research methodology refers to the search for Knowledge. It is a way to
systematically solve the research problem. In it we study the various steps that
are generally adopted by the researcher in studying his research problem along
with logic behind them.

139

Research Methodology concerning a research problem or study provide answers
to various questions like; why a research study has been undertaken, how the
research problem has been defined, what data have been collected and what
particular method has been adopted to collect the data, what technique has been
used for analyzing the data and a host of similar other questions

Though there are more than one alternative approaches available to the
researcher, but this not enough to make the task of selecting the suitable
research design simpler. Like the so-called suitable research design may require
some in between approach. The objective of study being the main determinant of
the validity and reliability of the method adopted the degree of usefulness of the
scientific method. Since there are many aspects of research methodology, in line
of action has to be chosen from variety of alternatives, so that individual choice of
suitable method is further complicated and make a viable whole. The choice of
suitable method is further complicated by the possibility of many permutations
and combinations. The fair selection can be arrived at through the objective
assessment and of course comparison of various alternatives. The finally
selected line of action must ensure that this is indeed best one as against those
rejected by the researcher. in addition, the circumstances and problems also
having a bearing in the choice. To count a fem, limitations could be imposed in
the sense of funds available, time and urgency in conducting the research. So
the final choice must be based on assessment of its advantage and
disadvantages when weighted against affecting factors.

Research methodology can be said to have four major components namely-
Research design, Sample design, Data collection procedure and methods of
analyzing and reporting the findings.

140

Methodology of the project starts with:

• In the first phase we are trained and they teach us different things about

market.

• After that they conduct a mock viva , in this they ask about the real life

problem faced by the customers.

• They provide leads and after that we make calls.

• Then after that we have to provide details of product and convince them

• Then we have to visit them and get the formed filled from them.

• Maintaing dairy of clients and contacting them at regular basis.

• The next part is knowing the patteren of the banking sectors scripts.How

they move with the correspondance to the market movement and also the

economy.

• Get the knowledge of technical as well as fundamental methods.

• Observe the patterns of the scripts.

Objective of research;

141

• The main objective of this project is concerned with getting the opinion of
people regarding demat account, and to create awareness of on line
trading.

• I had tried to explore the general opinion about the equity market and
services provided by India Infoline ltd .It also covers why/ why not
investors are availing the services of financial advisors.

• Along with it a brief introduction to India’s largest financial intermediary,
India Infoline Ltd has been given and it is shown that what are Demat a/c,
online trading awareness and how they work.

TYPES OF RESEARCH

On the basis of theoretical study a research
has many types. All of these are distributed
on the nature of research. Some of these
are like
1. Descriptive and Analytical
2. Qualitative and Quantitative
3. Conceptual and empirical
4. Applied and fundamental

142

5. One time research
Our research is based on Descriptive,
Qualitative and Quantitative research.

Descriptive Research: - Descriptive
research includes surveys and fact finding
enquires of different kinds. The major
purpose of descriptive research is
description of the state of affairs as it
exists at present. Researcher has no
control over the variables of this type of
research.

Qualitative Research: - In our
research we need comparison between
different stock brokers. So this based on all
qualitative data. In short, Qualitative
research is especially important in the
behavioral sciences where the aim is to
discover the underline motives of human
behavior. Through such research we can
analyses various factors which motivate to
people to behave in a particular manner or
which make people like or dislike a
particular thing.

143

Quantitative research: -
Quantitative research is based on the
measurement of quantity or amount. It is
applicable to phenomena that can be
expressed in terms of quantity. So we can
use it in our research for collection of all
the numerical data.

Scope of the study:

The research was carried out in Noida city only. I have visited people randomly
nearby my locality, different shopping malls, small retailers etc.

SOURES OF DATA
COLLECTION

While deciding about the method of data
collection to be used for the study the
researcher should keep to types of data.

1. Primary Data

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The Primary Data Is Collected Using
Sampling Method and By Survey Using
Questionnaire.

2. Secondary Data

Secondary data includes information
regarding present market scenario,
information
regarding mutual funds and competitors
are collected by internet, magazines and
news papers and books.

Survey Method: - Survey refers to
the method of securing information
concerning phenomena under study from
all or selected number of respondents of the
concerned area. In a survey the
investigator examines those phenomena
which exist in the universe independent of
his action.

Summer Training Project Report

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