Froozan

A STUDY ON PERCEPTION OF INVESTOR TOWADS ONLINE TRADING
CHAPTER 1
INTRODUCTION
Finance:-
Business concern needs finance to meet their requirements in the economic world. Any kind of
business activity depends on the finance In general; the “finance” is understood as provision of
funds as and when needed. Finance is the essential requirement of every organization.
Finance is the life blood of business activity. It is required for every business unit, be it a small
or medium and large scale industry. Every business enterprise has to raise the funds to start their
business activity. The entire business activities are directly related with making profit.
Required everywhere: all activity, be it production, marketing, human resources development,

purchases and even research and development, depend on the adequate and timely availability of
finance both for commencement and their smooth continuation to completion.
The funds are available in the economy from different sources viz., primary market, secondary
market, money market and personal funds. All these sources are exploited through the issue of
long term and short financial instruments.
The need of finance starts with the setting up of business. Its growth and expansion require more
funds. The funds have to be raised from sources. The sources have to be selected keeping in
relation to the implications, in particular, risk attached. Rising of money, alone, is not important.
Terms and conditions while raising money are more important.
The purpose of financial analysis is to diagnose the information contain in the financial
statement so as to judge the profitability and financial soundness of the firm. The analysis and
interpretation of financial statements is essential to bring out the mystery behind the figures in
financial statements.
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Whenever the word finance strikes yours ears, the very first thing that strikes your mind is
money. But is the scope of finance merely related to money? Well for a layman, the answer may
be yes. But all your need to do is a little pondering and you will easily understand that finance is
something much more than money terminologies. It is one of the most sought after courses in
business schools and in job sectors. There must be something which makes it so popular and in
demand. This article is written to find out few of the reasons behind popularity of finance.
The analysis and interpretation of financial statements is used to determine the financial position
and results of operations. A number of methods or devices are used to study the relationship
between different statements they are, comparative statements, trend analysis, common size,
fund flow statement analysis, cost volume profit analysis, ratio analysis.
Cost of the funds is an important element. Its utilization is rather more important. If funds are
utilized properly, repayment would be possible and easier, too. Care has to be exercised to match
the inflow and outflow of funds. Needless to say, profitability of any firm is dependent on its
cost as well as its efficient utilization
What is Finance?
Finance is a broad term that describes two related activities: the study of how money is managed
and the actual process of acquiring needed funds. It encompasses the oversight, creation and
study of money, banking, credit, investments, assets and liabilities that make up financial
systems. Many of the basic concepts in finance come from micro and macroeconomic
theories. One of the most fundamental theories is the time value of money, which essentially
states that a dollar today is worth more than a dollar in the future. Since individuals, businesses
and government entities all need funding to operate; the field is often separated into three main
sub-categories: personal finance, corporate finance and public (government) finance.
Types of Finance
 Personal Finance
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Financial planning generally involves analyzing an individual's or a family's current financial

position, and formulating strategies for future needs within financial constraints. Personal
finance is a very personal activity that depends largely on one's earnings, living requirements,
goals and individual desires. For example, individuals need to save for expenses, which means
investing enough money along the way to properly fund their long-term plans. This type of
financial management decision falls under personal finance. Personal finance includes the
purchasing of financial products, like credit cards, insurance, mortgages and various types
of investments. Banking is also considered apart of personal finance,
including checking and savings accounts as well as online or mobile payment services like
PayPal and Venmo.orry.
 Corporate Finance
Corporate finance consists of the financial activities related to running a corporation, usually
with a division or department set up to oversee the financial activities. For example, a large
company may have to decide whether to raise additional funds through a bond issue or stock
offering. Investment banks may advise the firm on such considerations and help them market the
securities. Startups may receive capital from angel investors or venture capitalists in exchange
for a percentage of ownership. If a company thrives and decides to go public, it will issue shares
on a stock exchange in an initial public offering (IPO) to raise cash. Another instance could be a
company that is trying to budget their capital and make decisions on what projects to finance and
what projects to put on hold in order to grow the company. These types of decisions fall under
corporate finance.
 Public Finance
Public finance includes tax, spending, budgeting and debt issuance policies that all affect how a
government pays for the services it provides to the public. The federal government helps prevent
market failure by overseeing the allocation of resources, distribution of income and stabilization
of the economy. Regular funding is secured mostly through taxation. Borrowing from banks,
insurance companies and other governments also help finance the government. In addition to
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managing money for its day-to-day operations, a government body also has larger social
responsibilities. Its goals include attaining an equitable distribution of income for its citizens and
enacting policies that lead to a stable economy. Equity investments a buying and selling of
stocks, through internet in an area of commercial activity. The set of institution facilitates the
exchange of stocks between buyers and sellers. For the growth of electronic transaction a large
fraction of stock market transaction are not centrally located in a particular location because of
every transaction are made through online trading.
The project is an attempt to identify the current investment trends amongst individual investors
in Bangalore and to ascertain the investor perception about professional financial advisory
services. Also an attempt is made to ascertain investor opinion about information technology /
internet as a means of investment planning and trading.
This study required both Primary and Secondary data. Primary data was collected through a
structured questionnaire and the Secondary data was made available through company literature
and Internet.
1.3 FUNCTIONS OF FINANCE MANAGER:

Finance function is one of the major parts of business organization, which involves the
permanent and continuous process of the business concern. Finance is one of the interrelated
functions which deal with personal function, marketing function, production function and
research and development activities of the business concern. Following are the functions of
finance manager.
 Forecasting Financial Requirements

 Acquiring Necessary Capital
 Investment Decision
 Interrelation with Other Departments
 Cash Management
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IMPORTANCE OF FINANCE:
It takes money to make money, so the proverbial saying goes. Businesses have to consider their
finances for so many purposes, ranging from survival in bad times to bolstering the next success
in good ones. How you finance your business can affect your ability to employ staff, purchase
goods, acquire licenses, expand and develop. While finances are not necessarily as important as
vision and a great product, they are crucial to making the good stuff happen.
 Initial Capital
Every new venture needs seed money. Entrepreneurs only have dreams and ideas until they have
some capital to put their ideas in motion. Whether it's a product or service, you will need a way
to create and deliver it -- as well as enough money and time to lay the groundwork of selling and
establishing important relationships. Most business owners face the critical choice between.Debt
and equity financing. A small business loan leaves you free to own and have absolute control
over your company while it also leaves you lasting financial obligations. Equity gives you cash,
but you have to share the success. The critical decision in your financing will determine how
your business will work from that point onward.
 Debt Ratios
Finances are about more than money in your hand. While most businesses have some amount of
debt -- especially in the beginning stages -- too much debt compared with revenues and assets
can leave you’re with more problems than making your loan payments. Vendors and suppliers
often run credit checks and may limit what you can buy on credit or keep tight payment terms.
Debt ratios can affect your ability to attract investors including venture capital firms and to
acquire or lease commercial space.
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 Business Cycles
No matter how well your business is doing, you have to prepare for rainy days and even storms.
Business and economic cycles bring dark clouds you can't predict. That's why smart businesses
create financial plans for downturns. Cash savings, good credit, smart investments, and favorable
supply and real estate arrangements can help a business stay afloat or even maintain momentum
when the business climate is unfavorable.
 Growth
Success can bring a business to a difficult crossroads. Sometimes to take on more business and
attain greater success, a company needs significant financial investment to acquire new capital,
staff or inventory. When business managers hit this juncture, they have to wade through their
financial options, which may involve infusions of equity capitals -- perhaps from venture
capitalists. Every situation is different, but smart managers consider the cost of success and their
options for obtaining growth financing.
 Payroll
Nothing spells imminent death like a company being unable to make payroll. Even the
organization gets, the larger the labor costs. Above all, companies have to ensure they have
enough cash on hand to make payroll for at least two payroll cycles ahead if not more. Financial
planning to ensure your payroll accounts are in strong shape are essential to the integrity and
longevity of your company.
BUSINESS FINANCE:
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“Business finance is that business activity which is concerned with the acquisition and
conversion of capital funds. In meeting financial needs overall objectives of business
enterprises”. Financial function of a business may define as the procurement of funds and their
effective utilization.
FINANCIAL MANAGEMENT:
In every organization, where finds are involved sound financial management is necessary. As
Collins brooks has remarked “Bad production management and bad sales management have stain
in hundreds, but faulty financial management has slain in thousands”.
A business finance of financial management is a managerial activity, which is concerned with

the anticipation of financial needs acquiring financial resources allocating funds within the
business. Administrating the allocated funds and accounting and reporting to management over
financial matters.
MEANING OF FINANCIAL MANAGEMENT:
Financial management is the operational activity of a business that is responsible for obtaining
and effectively utilizing the funds necessary for efficient operation
DEFINATION OF FINANCIAL MANAGEMENT:

John N. Myer defines financial statements as, “The financial statements provide a summary of
the accounts of a business enterprise, the balance sheet reflecting the assets, liabilities and capital
as on a certain date and the income statement showing the results of operations during a certain
period.”
According to the Encyclopedia of Social Sciences, “Corporation finance deals with the financial
problems of corporate enterprises. These problems include the financial aspects of the promotion
of new enterprises and their administration during early development, the accounting problems
connected with the distinction between capital and income, the administrative questions created
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by growth and expansion, and finally, the financial adjustments required for the bolstering up or
rehabilitation of a corporation which has come into financial difficulties”.
SCOPE OF FINANCIAL MANAGEMENT:

Financial management is one of the important parts of overall management, which is directly
related with various functional departments like personnel, marketing and production. Financial
management covers wide area with multidimensional approaches. The following are the
important scope of financial management.
 Arrangement of funds from financial institutions.

 Financial management also uses the economic equations like money value discount
factor, economic order quantity etc.
 Modern approaches of the financial management applied large number of mathematical
and statistical tools and techniques.
 Production management is the operational part of the business concern, which helps to
multiple the money into profit.
 Financial management helps in marketing, production, decisions making, and control
over the financial activities.
OBJECTIVES OF FINANCIAL MANAGEMENT:
The main objective of financial management is as follows:
 To achieve profit maximization as a corporate social objective.

 To ensure wealth maximization.
 It should give way for maintaining balanced asset structure.
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 To maintain liquidity to meet debt obligation.

 To ensure fair returns to shareholders.
 It should give way for maintaining balanced asset structure.
TRADE:-
Trade is the transfer of ownership of goods and services from one person to another. Trade is
sometimes loosely called commerce or financial transaction or barter. A network that allows
trade is called a market. The original form of trade was barter, the direct exchange of goods and
services. Later one side of the barter was the metals, precious metals (poles, coins), bill, paper
money. Modern traders instead generally negotiate through a medium of exchange, such as
money. As a result, buying can be separated from selling, or earning. The invention of money
(and later credit, paper money and non-physical money) greatly simplified and promoted trade.
Trade between two traders is called bilateral trade, while trade between more than two traders is
called multilateral trade. Trade exists for man due to specialization and division of labor, most
people concentrate on a small aspect of production, trading for other products. Trade exists
between regions because different regions have a comparative advantage in the production of
some tradable commodity, or because different regions' size allows for the benefits of mass
production. As such, trade at market prices between locations benefits both locations.
Retail trade consists of the sale of goods or merchandise from a very fixed location, such as a
department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption
by the purchaser hole trade is defined as the sale of goods or merchandise to retailers, to
industrial, commercial, institutional, or other professional business users, or to other wholesalers
and related subordinated services. Trading can also refer to the action performed by traders and
other market agents in the financial market.
INTRODUCTION TO ONLINETRADING:-
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The internet is used as a medium of trading in internet trading. Orders are communicated to the
stock exchange through website. Internet trading started in India on 1 st April 2000 with 79
members seeking permission for online trading. The SEBI committees on internet based
securities trading services has allowed the net to be used as an Order Routing System (ORS)
through registered stock brokers of their clients for execution of transaction.
Under the Order Routing System the client enters his requirements (security, quantity, price,
buy /sell) in broker’s site. They are checked electronically against the clients account and routed
electronically to the appropriate exchange for execution by the brokers. The client receives
conformed on execution of the order the customer’s 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. He should also
have a demat account and bank account. The system permits only register clients to log in using
user ID and password. Order can be placed using place order window of the website.
 The client has to enter stock code and other parameters such have quantity and
price of the scrip on the place order window.
 The client can review the order place by clicking the review option. He can also
reset to clear the values.
 Satisfactory orders are sent by clicking the send option.
 The client receives an order conformation message with order number and value
of the order.
 If the order is rejected by the broker or stock exchange for certain reasons such as
in valid price limit, a related message appears at the bottom of the screen. The
time taken to execute the order in 10 seconds.
 When the trade is executed, the broker asks for the transfer of funds by the
investor to his account. Stocks are credited or debited according to the buy or sell
in the demat accounts.
Online trading is a buying and selling of stocks, through internet in an area of commercial
activity. The set of institution facilitates the exchange of stocks between buyers and sellers. For
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the growth of electronic transaction a large fraction of stock market transaction are not centrally
located in a particular location because of every transaction are made through online trading.
On its recognition as a stock exchange under the securities contract (regulation) Act 1956 in
April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June
1994. The capital market (equities) segment commenced operations in November 1994 &
operations in Derivatives segment commenced.
The stock exchange covers various cities and town across the country. There are two leading
stock exchange in India, they are;
(a) National Stock Exchange (NSE)

(b) Bombay Stock exchange (BSE)
Technology has always been a destiny of curiosity and learning, the changing phase of
technology incubates a strong urge of study it and to implement it. The technology redefines the
subject where it finds the place. Most important is its change and velocity. Technology has not
left any former of the social, political, economical life of an individual. The wildered hands of
technology found its place from corner of the house to the ground floor of multi-crores
companies. This dynamic and instrumental application technology always makes it matter of
interest and study.
As quoted earlier technology has extended everywhere. From the rolling of the wheels to the
processing of the material technology has become inevitable, with the advent of technology
everything is being converted to virtual. Internet and intranet have made the world has a “Global
village”. It was found its scope in various aspects of society like hospital, transportation,
education, business, banking, stock trading and what not.
One of the important activities in any economics is the role of “stock exchange”. They are the
residence of capitalists, investors, economists and all players in economy stock exchange may be
defined as “an association, organization or body of individuals whether incorporated or not
established for the purpose of assisting, regulating and controlling business in buying, selling
and dealing in securities”.
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The traditional form of trading has now been replaced with the technology based trading. A
technology frame work has set into an agreement in share trading. Share trading, which is the
major activity in an economy is not an exception for technology adoption. The tradition form of
bidding is being replaced by ‘screen based trading which facilitated for trading through tip of
the fingers to the investors’ spread all over the country.
Definitionof Online Trading:-

The act or practice of buying and sellingsecurities over the Internet. Generally speaking, online
trading occurs when an investor makes an order to a broker online; the broker then executes the
order through the ordinary means. Online trading became more common in the 1990s as more
brokerages offered their services online, often for a small fee rather than a commission on the
trade.
Online trading should be distinguished from electronic trading, which occurs on an exchange.
See also: Discount brokerage. Online trading in India is the internet based investment activity
that involves no direct involvement of the broker. There are many leading online trading portals
in India along with the online trading platforms of the biggest stock houses like the National
stock exchange and the Bombay stock exchange.
FEATURES OF ONLINE TRADING:
The Online Trading is having many features which make it most suitable for the investors to go
for. Some of these features are as follows:
 Features of information.
The Internet can provide a new sense of control over your financial future. The amount of
investment information available online is truly astounding. It's one of the best aspects of being a
wired investor. For the first time in history, any individual with an Internet connection can:
 Know the price of any stock at any time

 Review the price history of any stock in chart format
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 Follow market events in-depth

 Receive a wealth of free commentary and analysis about stock markets and the global
economy
 Conduct extensive financial research on any company
 Control of your money:
One of the great appeals of using an online trading account is the fact that the account belongs to
you, and is under your direct control. When you want to buy or sell stock, you no longer need to
call your broker on the phone; hope that he is in the office to place your order; possibly argue
with the broker about the order; and hope that the transaction is executed instantly.
 Access to Market:
At the most basic level, an online trading account gives you more agility in buying and selling
stocks. This is through sophisticated information streams, dedicated trading platforms and
sophisticated tools for accessing the markets.
Ensures the best price for Investor:
Every broker house aims at providing the investor with the best price available. Also due to the
high level of transparency with regard to display of information relating to the specific stocks
And company profiles, you will be able to get the best quote for your orders.
 Offers greater transparency:
Online trading offers you greater transparency by providing you with an audit trail. This involves
a complete integrated electronic chain starting from order placement, to clearing and settlement
and finally ending with a credit into your depository account. All these stages are subject to
inspection, thus bringing in transparency into the system.
Enables hassle free trading:
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Online trading integrates your bank account, your trading account and your demat accounts,
which leads to easy and paperless trading for you.
Advantage of online:-
 Many customers, who have chosen to trade shares online today, had at one point time
been trading through offline brokers. After realizing the advantage of trading shares
Online, they have switched over to online trading now. However, before choosing an
online trading site, all the sites should be compared in order to from a decision.
 Online trading has made it possible for anyone to have easy and efficient access to more
reports and charts that it was previously possible if one when to brokers office. thus ,we
have accesses to a lot more information online to self teach ourselves.
 It eliminates the risk of bad deliveries , which in turn elimination all costs and advantage
of time associated whit follow up for rectification.
 This reduction in risk associated with bad delivery has lead to reduction in brokerage to
the extent of 0.5% by quite a few brokerage firms.
 Screen- based trading facilitates the investor to keep a track of the transaction from sours
to end. He can punch in the orders and see the results at bottom of the screen thus, one
can get instant trades confirmation.
 Online trading has left room for smaller organizations to compeer with multination
organization, since is no longer a legit issue. Being online dose not identify the size of
any particular organization.
 Online trading has allowed companies to locate themselves were they want, as physical
location is not an issue anymore. Companies can establish themselves according to their
gains and losses, for instance, where tax (sales and valve added taxes ) is best suited to
them.
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 Online trading gives control to individuals and the can exercise it over their account thus
comprehend what is going on the trade. It is like going Back to school and re-educating
oneself on how to trade online .
Individuals benefit by saving comparatively a lot more when trading online as the cost per
trades is less.59
 Individual can invest in a verity of product, unlike earlier when people bought bonds,
mutualfunds, and stocks for long- term basis. Now they can invest in stocks, and index
option, mutual funds,individual,government,corporate, municipalbonds, various types
of IRA account, mortgages and even insurance.
 Online trading has it possible for one to find investment options that were not available
on a regular basis, like offbeat net stock, eccentric unique things and trading in global
markets only to enquire about the prices of various scrape, internet trading connects the
stock exchange directly of the investor, who should make sure that online trading sits ,
he selects provides him the trading screen , which uses the push technology to display
prices. Using the push technology the trading screen display the real time price of 10 to
15 scripts at a glance, unlike pull technology where in one needs to types the quote
every time one needsthe price.
 Internet has made it possible for broking firms to transmit key market information all
clients at one go. Market watch screen gives live ticks update on the desktop, where by
the investor can seta number of scripts his choice, which will keep ticking through
streaming quotes without manual intervention.
 Client find it easier and convenient interact with their broker in a web-enable
environment. In the past there were instances of broker misleading the information give
t o them by their client, because of communicate lags. This led in effect ruined several
investor. The internet ensures speedy and correct flow of information between all user.
 Online trading sites provide professional advice to investors. Manyinvestors are not
knowledgeable about the stock markets and need advice about their investment
decisions.
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Disadvantage of online trading:-

 The ease and speed of online trading can give the investor a false sense of security and
encourage him to trade more frequently without paying any heed to marker basics like,
researching a company or knowing the risk he going to assume .
 The concept of chat rooms, which has become very popular with the investors, may
provide them with misleading information. Chat room participants are often paid to high
light certain stocks.
 Online trading is not always instantaneous in a rapidly change market; order may not get
executed at the price on the computer screen. This is because even a nanosecond delay
can put one out of the race for that particular stock at that particular price.
 DeLay in execution usually arises due to various technological choke – points like that
internet slowing down to heavy traffic or if modems, computer or internet service
provider (ISP) is mal functioning. if the investor dose not factor in these technological
lags while entering into a volatile market , he may suffer heavy losses .
 The investor should familiarize himself with order entry screen and the software provider
to him. Any mistake made while inputting an order can case him significant financial loss
Moreover, he will be responsible for any losses cause by lack of knowledge and or
experience when an order is placed and executed, he become liable for payment of the
securities.
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 Active trading is dependent upon a number of specialization software systems.

Disruptions or failure of any electronic systems utilized may lead the investor with an
open position at which time losses can occur.
 Customers trading online may have difficulty assessing their account due to high internet
traffic or because of systems Capacity limitation. customers trading through
representatives of on line firm , when online trading has been disable or not available
because of system limitation , may have difficulty reaching accouter preventative on the
telephone during period of high volume .
When was online trading introduced in INDIA?
Online trading started in India in February 2000 when a couple of brokers started offering an
online trading platform for their customers.
Facilities of the online trading in India:
The investor has to register with an online trading portal and get into an agreement with the firm
to trade in different securities following the terms and conditions listed down on the agreement.
The order processing is done in correct timings as the servers of the online trading portal are
connected to the stock exchanges and designated banks all round the clock. They can also get
updates on the trading and check the current status of their orders either through e-mail or
through the interface. Brokerage also provides research content on their websites, such that the
clients can take their own decisions on stocks before investing.
Products and services of the online trading in India:
Varieties of financial products and services of the online trading are available in India such as:
 Life insurance
 Equities,
 Portfolio management
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 Mutual funds
 Loans
 General insurance
 Share trading
 Commodities trading
 Financial planning.
BASICS OF ONLINE SHARE TRADING IN INDIA
1. Stock Exchange:
Stocks (shares, equity) are traded in stock exchange. India has two big stock exchanges (Bombay
Stock Exchange – BSE) (National Stock Exchange – NSE ) and few small exchanges like Jaipur
stock exchange, Bangalore stock exchange etc. investor can trade stocks in any of the stock
exchange in India
Stock Broker:
Investors require a stock broker to buy and sell shares in stock exchange (BSE, NSE etc). Stock
Broker is registered member of stock exchange. A stock broker can register to one or more stock
exchange only stock brokers can directly buy sell shares in stock market. An investor must
contact a stock broker to commissions (brokerages) for their service.
Stock Trading: The main two methods of trading systems are:
Traditional trading system:

Traditionally stock trading is done through stock brokers, personally or through telephones as
known as traditional or opens outcry system.
As number of people increase enormously in last few years, some issues like location constraints,
busy phone lines, miss communication broker offices. Information technology helps stock
brokers in solving these problems with on-line stock trading.
Online Trading System:
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Online stock trading is an internet based stock trading facility. Investor can trade through a
website with from stock broker. In this case on-line stock trading companies are stock broker for
the investor.
The internet is used as a medium of trading in online trading. Orders are communicated to the
stock exchange through website. Internet trading started in India 1 st April 2000 with 79 members
seeking permission for online trading. The SEBI committees on internet based securities trading
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 of transaction.
This internet facility has both advantages and disadvantages. It provides fully transparency, and
best quotes possible at any time. An investor will have he control over the information and
quotes a will be able to hit a quite online basis. Doubles about the broker’s capacity integrity will
be non-issues.
The problems with internet broking are the risk of safety and confidentiality. There are
possibilities someone having in to the system and possible malpractices. These are controlled by
SEBI through the stock exchanges. For an individual broker a network of Rs. 80 lakhs is laid
down and stock exchanges can insist an adequate network limits to trading and collect margins
and ensure trade guarantee.
National stock exchange and Bombay stock exchange:
In spite of many private stock houses at present involved in online trading in India, the NSE and
BSE are among the largest exchanges. They handle huge daily trading volumes, supporting large
amounts of data traffic, and possessing a countrywide network. The automated online systems
used for trading by the national stock exchange and the Bombay stock exchange are the NIBIS or
NSE's Internet Based Information System and NEAT for the national stock exchange and the
BSE Online Trading system or BOLT for the Bombay stock exchange.
 .Online trading is termed as selling products or good services through Internet.
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 Customers willing to purchase the product should provide the credit card details and
personal contact information online and once the payment is being made the
productisshipped to the address of the customer as provided earlier generally after two
business days.
 The product is shipped to the customer from the retailer only.

 Online trading is treated as the most effective process to make money with the help of
Internet by sitting at home only.
 But is not easy and simple as it requires constant supervision and once people attains the
appropriate skill can gain profit in huge amount.
 In order to make a business successful a plan need to be prepared first then multiple
sources of income policy should be opened so that the plan at later time should be
incorporated in to the business.
Companies provide Online Trading in India:-
Online Trading in India

:: India Stock :: BSEIndia
:: A1 Technology Online Trading :: JV Financial Online
:: Best online trading :: Kotak Securities Online Trading
:: Bonanza Online Trading :: Mansukh Securities Online Trading
:: BullishIndian.com Online Trading :: Quote.com Online Trading
:: Express Computer Online Trading :: SHCL Online Trading
:: Geojit Securities Online :: STC Online Trading
:: ICICI Online Trading :: Technical Analysis Trading
:: Indiabulls Online :: Union Bank of India Online Trading
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:: India Insurance :: Best Online Trading
BENEFITS OF ONLINE BROKING
1) Less Costly:
The most significant advantage of the online broking is the cost reduction in the brokerage. Due
to the power of the Internet one has the privilege of becoming the clients of really large
brokerages with the benefits of enjoying the low charges hithelio before enjoyed only by the big
players. As the DP account has got linked to the trading account most players do not charge a
minimum transaction cost thus truly allowing one to buy a single share and achieve meaningful
rupee price averaging whatever be your buying power.
2) Peace of Mind:
One can never have complete peace of mind but online investing does away with the hassles of
filling up instruction slips, visits to the broker for handing over these slips and consequent costs.
3) Keeping Records:
The site one trades on keeps a record of all transactions down to unexecuted orders and cancelled
orders thus keeping one abreast of all your transactions 24 hours a day. No paperwork means
more time at one’s disposal for research and analysis.
4) Access to Information and investment Tools:
Most online investing sites have a wealth of information for their registered members. This
includes research reports, results, analysis and even gossip and the buzz in the market.
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5.) Unparalleled Liquidity:
The bank account linked with the trading account invariably has an A TM free. Most partner
banks offer Internet banking as well. This results in one’s money becoming available to him
whenever he like from his trading account. Conversely in case he spot an opportunity in the
market he can immediately allocate money from his savings account to his trading account and
make profits.
6.) Unparalleled Safety:
Most sites are secure using 128-bit algorithms -highest available commercially anywhere in the
world. Moreover even if somebody broke in and tampered with one’s account the money from
the stocks he sold or the stock bought from the money in his account is in his account only.
7.) Reduces the settlement risk:
This method of trading reduces the settlement risk for the investor, as in this case no Short sale is
possible i.e. the seller will not be able to sell the securities unless he has their actual possession.
In the case of a demat account (required for an online transaction), when a seller wants to sell the
securities, his demat account is checked by the Depository Participant before executing the sale
transaction. This reduces the settlement risk for the buyer, who is assured of the delivery of the
securities.
8.) Offers greater transparency:
Online trading gives greater transparency to the investors by providing them an audit trail. This
involves a complete integrated electronic chain starting from order placement, to clearing and
settlement and finally ending with a credit to the depository account of the investor. All these
stages are subject to inspection, thus bringing in transparency into the system.
9.) Ease of: trade
It is the ease of doing the trade through net, with a click of mouse, one can buy or sell any share
that is dematerialized.
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Other than the above-mentioned advantages, Internet trading provides some additional
advantages to the investors, brokers and also helps the nation to channelize the resources. Net
trading would increase competition in the market hence increase in the bargaining power of the
investors. The entire communication between the investor, broker and exchange would take
place within milliseconds.
PROBLEMS OF ONLINE BROKING
There is a flip side to everything and online trading is no exception.
Chart Title
4%
14% 21%
More Costly Lack O f Knowledge
11%
Loyalty to T raditional Broker Lack of Trust
23% Slow Speed Ot her
27%
Chart
Source:- www.lse.co.in
27% Loyalty is of traditional broker
23% people say that online trading is more costly than manual trading.
21% people not prefer online trading because of lack of knowledge.
PROCEDURE FOR ON-LINE TRADING:
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An Investor interesting in trading through Internet shall such as filling the account opening
form of -broker, copies of identity proof have to, firstly register himself with an Internet
brokerage firm. Some formalities, copy of residence proof are made to register himself with
the e-trader. Secondly, the investor would be required to open a bank account with a
scheduled bank and sufficient balance should be kept in the account. Thirdly he would be
required to open account with a depository participant because only dematerialized shares
can be traded on Internet.
The client places order via the net by logging on to his
Broker’s site.
The broker accepts and executes the order and places it with the
exchange
The exchange accepts the order after checking the share limit for the day.
The broker makes the payment either directly via the client bank account
or pays through its own account and recovers it later from the client.
The exchange receives money and completes the settlement.
The client is intimated about the settlement either through the

demat or via e-mail.
So, generally following steps are followed while doing the trading through the Internet:
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Step-I:
Those investors interested in doing the trading over Internet system, that is, NEAT - ISX (NSE),
should approach the brokers and register with the Stock Broker.
Step-2:
After registration, the broker will provide to them a login name, password and a personal
identification number (PIN).
Step-3:
Actual placement of an order, Using the place order window as under can then place an order:
(a) First by entering the symbol and series of stock and other parameters such as quantity and
price of the scrip on the place order window.
(b) Second, fill in the symbol, series and the default quantity.
Step-4:
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.
Step-5:
After the review has been satisfactory; the order has to be sent by clicking on the send option.
Step-6:
The investor will receive an "Order Confirmation" 'message along with the order number and the
value of the order.
Step- 7
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: 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 ten seconds is there in executing the trade.
Step-8:
It is regarding charging payment, for which there are different modes. Some brokers will take
some advance payment from the, investors and will fix their trading limits. When the trade is
executed, the broker will ask the investor for transfer of funds by the investor to his account.
The benefits of investor due to Online Investing:
a) Independence and freedom due to enjoyed by an individual access to the markets: This is
conceivably the greatest advantage of online brokerages. A novice investor with an Internet
connection can know there all time stock quotes, historical stock price trends, have a handle
on market events, access vast amounts of economic and market analysis, do research on firms,
and interact with other investors via forums or chat rooms. This, in combination with time, can
transform even the most novice investor with an active interestin investments into a
knowledgeable and powerful investor.
b) Elimination of the “middle man”:
Investing online gives the investor a sense of control over their wealth. Buying and selling of
stock no longer requires another individual to carry it out. It saves the investor headed
worriesthat come with busy phone lines; broker not being in, etc. when wanting to do an
important trade. It can be done whenever and wherever by the Investor themselves.
c) Elimination of Losses on account of Brokers: Most brokers live on commissions, hence the
tactics used by them are inthe favor of the broker first, thebrokerage house next and finally
theclient. Online brokerages pay financialadvisors a fixed salary, thus eliminating the chance for
an investor doing unnecessary trades for the benefit of thebrokerage firm and the broker.
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d) Inexpensive and affordable commissioncharges: Commissions per trade online are much
lower than when compared to that charged by traditional brokerage houses like Merrill Lynch,
etc. This is thefulcrum on which online brokerages leverage. Cheap transaction costs along with
the immense amount accessible online are thebiggest reasons for the clients to moveonline.
Traditional brokerage houses
e) Internet as an InformationSuperhighway: Information related to stocks, company
Fundamentals, etc., which were once only available to licensed brokers, are now at the fingertips
of anyone and everyone. Online brokerages are inconstant endeavor to bridge the gapbetween the
investor and the market.
f) Diverse range of investment products and choices: Online brokerages are offering more
Products to the consumer, so as to givethe consumer a wider choice and also toaccommodate
consumers that have niche tastes. Investors can invest in stocks, bonds, mutual funds, mortgages.
g) Speed of trade execution: Keeping time in mind, online trading ismuch quicker – as far as
accessibility and availability to investment information and execution of trades are concerned.
Online have decreased the time for total completion of a trade from the regular T+3 days toa
matter of minutes.
The costs borne by an Individual Investor from Online Investing:

a) Technical Reliability: The greatest disadvantage of online trading is the inability of a
network tobe fail-safe. Computers in spite of the technological advances are by no means perfect.
There are various things thatcould go wrong like failure to log on tothe network, network
blackout due to failure power, server crash resulting incite failure, traffic overload thus
Causing site freeze. Site freeze can happen on extremely demanding days with large amounts of
orders going over the networks.
b) The investor is alone: Another disadvantage may be the penalty of a bad investment.
The do ityourself attitude that empowers theinvestor over his own money, can givea sense of
autonomy previously notexperienced when dealing with traditional brokerages. But it can also
Spell investment failure.
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The Limitations of Online Investingto an individual investor:

Besides advantages and disadvantages, there exists the possibility of limitations of what online
brokerages can do for an individual investor. Though the Internet has allowed more players into
the investment playing field, some investors like the institutional investors still have an
advantage over the individual investors in spite of the Internet and all its advantages. It can be
assertively said, “Size does matter”.
Firstly, because of the sheer size ofresources and contacts, institutional investors almost always
get exclusive access to the hottest Initial Public Offering (IPO) deals before it goes into the
markets. Individual investors usually gain access to these stocks after the initial price gain is
already lost. Online brokerages do offer IPO deals –provided the trading account has between
$100,000 to $500,000.
1. THINGS TO DO BEFORE OPENING INTERNET SHARE TRADING

ACCOUNT:
 Ask for demo: contact the broker who provide Equity investment service and ask him to give
you a demo of product.
 Check if the broker trades in multiple stock exchanges. Usually most of the Equity
investment websites trade in NSE.
 Check the integration of brokerage account, Demat account and bank account.
 Compare brokerage with other companies.

3. MAJORE PRE-REQUISITES TO DO INTERNET SHARE TRADING:
 A BAND ACCOUNT: Any bank should be having an alliance with the Equity
investment service provider. This bank account will facilitate as a payment and receipts gate
way.
 A DEPOSITARY ACCOUNT OR DEMAT ACCOUNT: The depository account
also should be having an alliance with the Equity investment service provider. This account
will act as a bank for the shares you hold. This account is must for share holders.
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THE PROCEDURE OF THE DEPOSITORY ACCOUNT
 To open an account, you can approach any DP of your choice and fill up an account opening
form.
 At the time of opening an account, you have to sign an agreement with DP in
the Depository prescribed standard agreement, which deals the rights and duties of the
investors and his/her DP.
 All investors have to submit proof of identity and proof of address along with
the prescribed account opening form.
PROOF OF IDENTITY:
 Your signature and photograph must be authenticated by an existing

Demas account holder the same DP or by a bank manager.
 Alternatively you want to submit a copy of passport, voters ID Card,
Driving License, PAN card with photograph.
PROOF OF ADDRESS:
You need to submit a copy of passport, voters ID card and Driving License, Pan Card with
photograph, ration card or bank passbook as proof of address. And also have original documents
to the DP for verification with passport-size photograph.
TRADING ACCOUNT:
Trading account positions can be taken purely for intraday purposes. All trading account
positions have to be compulsorily squared off before the end of the market or any other specified
by the trading stock broker. In case any outstanding position remains the stock broker will square
off the same at the prevailing market price. In case the square off cannot be done, the trading
account will get shifted to investment account off the client.
STANDARD DOCUMENT REQUIRES OPENING AN INTERNET TRADING

ACCOUNT:
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I. PROFF OF RESIDENCE: (Address proof)

 Driving license
 Voters ID
 Passport
 Photo credit card
 Photo ration card
 Utility bill (Telephone bill, Electricity Bill)
PROOF OF IDENTITY:
 Driving license
 Voters ID
 Passport
 Photo ration card
 PAN card
 Two photographs
II. ONLINE SERVICE PROVIDER ACCOUNT:

This can be opened with any of the major service provider’s i.e. client registration form.
III. SYSTEM ORDER ROUTING (ORS):

Under the order routing system the client enters his requirements (security, quantity, price, and
buy/sell) in broker’s site. They are checked electronically against the clients account and routed
electronically to the appropriate exchange for execution by the broker. The client receives a
confirmation on execution of the order. The customer’s portfolio and ledger accounts get
updated to reflect the transaction.
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The user should have the user ID and password to enter into the electronic ring. He should have
a Demat account and bank account. The system permits only a registered client to log in using
user ID and password. Order can be placed using place order window of the website.
 The client has to enter stock code and other parameters such as quantity and price of the scrip
on the place order window.
 The client can review order placed by clicking the review option. He can also reset to clear
the values.
 Satisfactory orders are sent by the clicking the send option.
 The client receives an order confirmation message with order number and value of the order.
 If the order is rejected by the broker or stock exchange for certain reasons such as invalid
price limit, a related message appears at the bottom of the screen. The time taken to execute
the orders is ten seconds.
 When the trade is executed, the broker asks for the transfer of funds by the investor to his
account. Stocks are credited /debited according to the buy/sell order in the Demat accounts.
Internet trading provides total transparency between a broker and an investor in the secondary
market. In the open outcry system, only the broker knew the actually transacted price. Screen
based trading provides more transparency. With Equity investment investors can see themselves
the price at which the deal takes place.
The time gap has narrowed in every stage of operation. Confirmation and execution of trade
reaches investor within the least possible time, mostly within thirty seconds. Instant feedback is
available about the execution. Some of the websites also offer
 News and research report

 BSE and NSE movements
 Stock analysis
 IPO and Mutual Fund centers
 Movements of International Stock Exchanges
CHAPTER 2
RESEARCH DESIGN
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This chapter deals with research design and methodology. Under this, statement of the problem
explain about the impact of online trading in customer and their expectation, after that study
needs briefing the points for company operation expansion. Strategies exploration, assessing the
level of online trading and the factors affecting the customers are included in the objective of
study. The scope, limitations and research methodologies gives the clear picture about the
chapter. Finally review of literature includes reports and opinions of various leaders.
TITLE OF THE STUDY
“PERCEPTION OF INVESTORS TOWARDS ONLINE TRADING”
Research is one of the best instruments to identify the investing pattern of investors to invest in
various sectors & to study different sectors of Capital market.
DEFINITION
“Research is careful inquiry or examination to discover new information and relationship and to
expand and to vary existing knowledge.”
Research always starts with question or any problem and finds answer of problem by using
scientific method. It gives complete knowledge about any problem or question.
STATEMENT OF THE PROBLEM

The company intended to find out the investment trends amongst individual investors of
Bangalore. So as to refine or retune their portfolio to match the investor needs. Keeping this in
view, the researcher attempts to make a study on “Perception of individual investors towards
Equity investment Bangalore – A Study”.
OBJECTIVES OF THE STUDY
 To know the perception of investors towards online trading.
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 To study the procedure and benefit of internet share trading.

 To study the awareness and attitude of investors towards online share trading.
 To study the service of online share trading.
 To analyze the extent usage of technology based share trading among the investors.
TYPE OF RESEARCH
The research type adopted for the proposed study is an evaluative and descriptive in nature.
SAMPLING DESIGN
a) Sample size: The study is based on 50 respondents, of which it includes investors,

intermediaries and others involved in online trading.
b) Sample Area: It refers to the place where the studies are conducted. The Sample Area
selected for the study is Bangalore City.
c) Sample Technique: The sample technique adopted for this study is random and
convenient technique.
SOURCES OF DATA
The data pertaining to inventories collected through primary & secondary sources are analysed
through percentage analysis, ratio analysis & marketing analysis.
PRIMARY DATA
Primary data are those that are collected as fresh for the first time & thus happen to be origin in
character. Here primary data was collected through a structured questionnaire.
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The selection of respondents is based on simple random sampling. Information was collected
from personal interview & discussion with the manager of BMA Wealth Creators Ltd & also
with the respondents.
SECONDARY DATA
The secondary data are those, which have collected by same others that have been processed. For
the study, the secondary data is called from various publications and journals of stock exchanges,
newspapers, books, business and investment magazines, articles & websites.
SCOPE OF THE STUDY
The research on a study of investor’s preference towards online market helps to know the
attitude, awareness & preferences on the investors. Based on the information investment brokers
can carry out further research on specific problem. The research suggestion through report will
help them to improve their services. Many services will be undertaken to attract new investors.
This study helps to give value-added services & maintain healthy investor relationship.
The scope extends to various classes of investors being classified as employees, professionals,
and businessmen and other. Concerning to the fact that, there is a need of institutional support
which may be broker, agents or even financing institutions. The study extends to these areas too.
LIMITATION OF THE STUDY
 The study is restricted to Bangalore City.
 Selected Investment Option is only Online Trading.
 Availability of data.
 Time Constraints.
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 Respondents might have felt hesitation in providing information related to their age,
income etc. So, there can be some data that might questionable because of unwillingness
of respondents to give right information.
 Sample selected may not represent whole population, as sample size selected is very
small in proportion to population due to time and cost constraints.
 Even many of the respondents may give bias answer.
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CHAPTER SCHEME
CHAPTER 1: INTRODUCTION
To start with performance in term of profitable is a bench mark for any business enterprise. Here
in this chapter theoretical back grout of finance and cash management which includes
deifications, meaning types, steps, and importance are discussed along with the conclusion.
CHAPTER 2: RESEACH DESIGN AND METHODE

 Title of the study
 Statement of the problem
 Need of study
 Scope of the study
 Objective of the study
 Methodology of the study
 Limitation of the study
CHAPTER 3: INDUSTRY COMPANY PROFILE

Pl is a stock broking company in India with a vision of rising up to become Indians leading
financial service provider. This chapter contain the company background .
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

Analysis of data with required interpretation, the information obtained needs to reduce to table
and graphs. Charts are to be measured based on the survey conducted through questionnaire.
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CHAPTER 5: SUMMARY OF FINDINGS, SUGGESTIONS AND

CONCLUSION.
It is to be noted that the recommendation are practical, acceptable and comprehensive. All
inferences drawn from each table become findings and conclusion for each objective to be given.
BIBILIOGRAPHY & ANNEXURES
CHAPTER 3
Page 37
COMPANY PROFILE
PRABUDAS LILLADHER
HISTORY:
Seven decades of powering financial growth

In 1944, Mr. Prabhudas Lilladher Sheth registered a stock broking company In India with a
vision of rising up to become India's leading financial services provider. It has been a long
journey since. A journey of success, based on strong adherence to ethics,uncompromising
dedication to quality and an attitude of excellence. Imbibed in our corporate culture, these
founding principles have guided us to reach the pinnacle that we are at today. Over the years, PL
has evolved from a standalone brokerage firm to a one-stop shop to companies for all financial
services.
With a team of dedicated experts and a nationwide distribution network of branches, franchisees
and associates, PL provides a comprehensive gamut of financial advisory services in the
Institutional and Retail domain. Our range of services includes Equity & Derivative Broking,
Investment Banking, Corporate Advisory, PMS, Online Trading, Loan against Shares, Mutual
Funds, IPO's, Real Estate, Home Loan & Loan Against property.
Drawing on our team's profound technical expertise and years of extensive practical experience,
we develop customized solutions that are unique to each of our clients, thus ensuring high levels
of customer satisfaction.
Foundations & Milestones

1944 – 1970
 Registered as a partnership Stock Broking Firm in 1944
 Introduced Equities Arbitrage Business services
 Introduced Equity Stock Broking services
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1970 – 1980
 Started first branch in Pune
 Became first to offer door step service
 Distribution of Initial Public Offering (IPO)
 Underwriting
 Team size increases to 25
1981 – 1990
 First Broker to be corporatized as a BSE Member
 First brokerage firm in India to computerize back office operations
 One of the leaders in Badla Finance for retail segment
 Institutional equities
 Badla Finance
1991 – 2000
 Empanelled with numbers of FII and DII
 Developed a strong sub broker network
 Foreign Institutional Investor
 Arbitrage between NSE and BSE
 Franchisee Set-up
2001 – 2014
 Corporate Advisory business grew manifold within 3 years
 PMS - Corpus size grew multifold
 Rated amongst the best for our research by Institutional Investors
 Consistently rated amongst the best brokerage houses for its research by Asia
money Brokers Poll
 Corporate Advisory
Page 39
 Investment Banking
 Margin Funding through NBFC
 Portfolio Management Services (PMS)
 Online Trading
 Currency
 Commodity
 Team size: 350+
In 71 years PL has seen a growth of 800 folds in terms of gross revenue and 35 folds in terms of
man power
Vision & Values

Our Vision Statement
To be India's leading and most preferred financial services
organization built on ethical practices and integrity.
Our Values
Core Essence: Wealth of Wisdom
It is with our years of experience and knowledge about the category that we have been able to
distinguish what will work and what may not. It is this ability and our perspective that our clients
value us for. We believe our wealth is in the people, the knowledge and the experience. What we
share is our wisdom to ‘power our clients financial growth’
Page 40
Expertise
The level of involvement in financials decisions is very high across the board. The
dependability factor becomes the crucial differentiator. At PL we continuously invest in
building people competencies by enhancing their knowledge and the skill sets. We invest in
research to enable us to offer the experts’ advice to our clients.
Integrity
At PL Group, integrity is the key to the way we work, interact and deliver. Adherence to
ethical practices and integrity takes precedence over all other considerations. This has enabled
us to earn trust and commitment from our clients and employees alike.
Responsiveness
Being responsive to client needs and changing market dynamics is at the core of all we do at
PL. Being responsive means that we are sensitive to needs, flexible and agile in transforming
and adapting to any evolving challenge or scenario. This value is critical to keeping our clients
and us ahead and abreast in the financial market.
Enterprising
At PL, we are driven by an entrepreneurial spirit that's focused on growth and advancement.
Our enterprising attitude translates into adaptation of new technologies, methodologies and
newer ways to reach our clients or enhance their experience. Entrepreneurial spirit is at the
heart of our progress.
Ambitious
Ambition drives growth and urges to set higher goals every time. It is the cornerstone of
building a progressive futuristic organization built on the pride of delivering perfection and
aiming excellence in all endeavors. Ambition drives people to give their best and also builds
pride of association in clients.
Page 41
Leadership Team
Drivers of Growth
Ajay BodkeCEO & Chief Portfolio Manager (PMS) Prabhudas Lilladher Pvt. Ltd.
Ajay has over 18 years of experience as a Senior Portfolio Manager with India’s leading Mutual
Funds like IDFC MF, Standard Chartered MF & SBI MF. He has done Masters in Financial
Management & Masters in Business Administration from the Macquarie Graduate School of
Business (Sydney) and Mechanical Engineering from the Government College of Engineering
(Pune). Ajay’s responsibility involves spearheading Investment Management for all portfolio
strategies by monitoring company selection & exposures, sect oral allocation, risk mitigation,
actively participating in client interactions/ presentations & building the PMS business. He was
ranked among India’s Top 10 Fund Managers by one of India’s leading financial newspapers in
its first ever ratings of Fund Managers and was part of the Mutual Fund team recognized as
‘India’s Best Money Makers’ by a leading capital markets magazine. He conceived ‘Thought
Leader Series’ in mid-2012 and continues to facilitate interactive sessions between India’s
leading Opinion Makers from various domains like Macro-Economics & Foreign Exchange,
Political Economy, Politics &Psychology, Geo-strategy &Defiance, Banking & Infrastructure
etc. and PL’s Top Institutional Clients when that domain has maximum salience from Market’s
perspective
Anajit SinghaHead, Corporate AdvisoryPrabhudas Lilladher Advisory Services Pvt. Ltd.
Anajit comes with the unique distinction of holding over two decades of experience in Indian
and European equity markets, in both institutional brokerage and ECM capacities. Starting as a
Corporate Finance Analyst at Reliance Capital, Anajit moved to London and diversified into
European equities. He has held senior equity positions in some of the most prestigious European
investment banks viz. ING Barings, Dresdner Kleinwort &Comersbank, and then went on to
establish and successfully develop leading boutique German investment banks viz. VEM
Aktienbank AG in London. Recently, Anajit has had stints with Ambit Capital as Head of
Institutional Sales and as Head of Equities at Map Advisory, one of the leading boutique
investment banks. His experience in managing ECM transactions and institutional broking,
Page 42
domestically as well as internationally, hold him in excellent stead to bring out the best in PL’s
Corporate Advisory strength.
Dara J KalyaniwalaVice President, Investment BankingPL Capital Markets Pvt. Ltd.
Dara is a qualified chartered accountant with over 28 years of experience in corporate finance
and capital market solutions. He has successfully handled SBU's for investment banking
activities, managed numerous public/rights issues, and various acquisitions and mergers for a
large number of corporate clients.
Manish BhattVice President & Head, IPO & Primary MarketsPrabhudas Lilladher Pvt. Ltd.
Manish holds over 18 years of experience in the finance industry which is built on his solid
academic background. He holds a Post-Graduate Diploma in Investment Management and
Diplomas in Financial Management and System Management. He has a proven record of
successfully handling HNI’s, retail clients, trusts and corporate.
Pankaj ShresthaAsst. Vice President, Investment Advisory DivisionPrabhudas Lilladher Pvt. Ltd.
Pankaj has spent 10 years with Prabhudas Lilladher, starting as Client Relations Manager. Over
these years he has acquired extensive experience in handling multiple PL businesses. He was
instrumental in starting the NRI and PMS businesses of the company. His achievements have
been recognized with various accolades within and outside the company.
Parag PaigankarWhole Time Director Prabhudas Lilladher Financial Services Pvt Ltd.
An experienced and qualified corporate finance professional, Parag has over 25 years of
extensive experience in corporate banking and finance, credit risk management, equity financing
& project and working capital finance. Currently he spearheads the business activities of the
group's NBFC.
Payal SanghaviHead - HNI & Online TradingPrabhudas Lilladher Pvt. Ltd.
Page 43
Payal, a qualified finance professional comes with an extensive experience of over 10 years in
the capital markets, focusing on Research, Advisory & Portfolio Restructuring. Her roles include
developing High Net worth Businesses - Individual &Corporate. She was instrumental in
promoting Margin Funding & PMS. She also provides key derivative strategies and complete
solutions to needs of HNI’s. She started as an Executive and is today heading the HNI & Online
Trading departments.
Rahul JainVice President, India SalesPrabhudas Lilladher Pvt. Ltd.
A CA, ICWA graduate, Rahul has over 20 years of experience in the financial services industry.
Following a brief stint as a Research Analyst with Network Investments, he joined PL for
developing the Groups Institutional business.Currently, heading Domestic Institutional Sales -
Domestic MF, Insurance cos. (Public & Pvt. Sector Banks) and PMS.
Ropes AgarwalGroup CFOPrabhudas Lilladher Pvt. Ltd.
A Chartered Accountant and MBF (Master in Business Finance), Ropes is a seasoned finance
professional having more than 14 years of experience in Finance, MIS, Audit, Taxation and
Company related matters. With excellent managerial skills and strong leadership qualities, he
was instrumental in developing a Management Information System (Finance) within the
organization. Presently he is heading the Finance, Accounts, Banking and Taxation for entire PL
group.
Sabita KamathVice President & Head, Depository ServicesPrabhudas Lilladher Pvt. Ltd.
She holds a rich experience of over 25 years at Prabhudas Lilladher during which she has earned
various recognitions for her efforts. She has various academic and professional qualifications to
her name and was actively involved in the team that was responsible for setting up Depository
operations of PL at CDSL & NSDL. She has also been handling KYC Processing & Client
Activation of entire PL group for Trading, Demat, Online Trading, PMS & Commodity
accounts.
Sandip RaichuraHead, RetailPrabhudas Lilladher Pvt. Ltd.
Page 44
An experienced & qualified economist and management post graduate (Delhi School of
Economics/IIM ELP) , Sandip holds 15 years of financial services experience in sales &
marketing, research analysis & business development. At PL he is responsible for overall
monitoring & growth of non institutional businesses.
Sreesankar RadhakrishnanHead - Institutional EquitiesPrabhudas Lilladher Pvt. Ltd.
Over a career spanning two and a half decades, Sreesankar Radhakrishnan brings with him
formidable experience and diversified exposure with large national and multi-national
organizations like Canara bank, HG Asia Securities, Baring Asset Management (Head, South
Asian Investments), SSKI Securities (Chief Executive Officer), DSP Merrill Lynch (Chief
Investment Officer) and ILFS Invest smart (Head, Research). His last assignment was as the
Head of Equities at Tata Securities. A proficient industry veteran, he has been a mentor and
guide to many broking and asset management teams. As the Head of PL’s Institutional equities
team, he is responsible for formulating strategies for domestic and overseas institutional
investors, leading research & sales and dealing functions for the institutional team at PL. He
brings on board high-specialization and immaculate understanding of corporate banking, equity
research and money management.
Subrahmanian Analakkatt President - Operations & Compliance OfficerPrabhudas Lilladher Pvt.

Ltd.
With over 29 years of experience, Mr. Subrahmanian Analakkatt started his career in Indian
Bank, working in various banking departments. He is a Chartered Accountant and has graduated
at Calicut University. He enjoyed a stint at NSE during 1996-99, where he handled the funds and
margins department. He joined PL in 2001, working in a wide spectrum of areas including
investor service, compliance, internal audit, fund accounting, dealing in equities and equity
related derivatives in secondary market and scheme operations.
Sunita SaveVice President, Client RelationsPrabhudas Lilladher Pvt. Ltd.
Page 45
Sunita is a successful, dynamic & result oriented senior professional with a proven track record
of 25 years at Prabhudas Lilladher. She is responsible for providing service support to clients and
Progress Partners. Internally, she offers solid support to the entire team with regards to guidance,
setting goals and delivering high quality and responsive service to clients. She is actively
involved in the development of PLClients.com, a website dedicated to clients of PL, in order to
extend better services and add value to the client base.
Vijay ShahHead, Retail Client GroupPrabhudas Lilladher Pvt. Ltd.
With over 22 years of experience, Vijay has spent his entire career at Prabhudas Lilladher. He
started as a back-office trainee and over these years has come through the ranks to reach this
position. He has been successfully handling his responsibilities as the Head of Retail Client
Group since 2008.
Corporate Structure
With its various Group Companies, the PL Group is committed to offering products and services
that drive growth and help meet various financial objectives of institutions and individuals based
on a deep understanding of their unique potential and aptitude. In its endeavor of making
progress and taking ahead, PL abides by the principle of inclusiveness and mutual growth.
Corporate Structure:
 Prabhudas Lilladher Advisory Services Pvt. Ltd. (Holding Co & Corporate Advisory

Services)
 Prabhudas Lilladher Pvt. Ltd. (Broking;DP, PMS & Third Party Product Distribution)
 PL Capital Markets Pvt. Ltd. (Investment Banking)
 Prabhudas Lilladher Financial Services Pvt. Ltd. (Margin Funding)
 PL Fund Advisors Pvt. Ltd. (Debt Syndication):
 PL Distribution Company Pvt. Ltd. (distribution of third party financial products and
channel partner for real estate)
 PL Commodity Markets Pvt. Ltd. (Commodity Broking)
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 PL Insurance Broking Services Pvt. Ltd.
DEPARTMENTAL STUDIES:
A. HR DEPARTMENT:
HumanResourceDepartmentistheentityorganizationformtoorganizepeople,reportingrelationshipsa
ndworkinawaythatbestsupportstheaccomplishmentsoftheorganization goals.
The PL INDIA has such a department which is organized by functions such as Human Resource,
marketing, administration and Sales.
STRUCTURE OF HR DEPARTMENT
Vicepresident, HRRregional,HR manager, Assistant HR, Recruitment Specialist, Documentation

and verificationAppraisal and review.
OBJECTIVES OF HR DEPARTMENT:
 To recruit right candidates required for the organization

 To maintain theircordsof theemployees.
 To train and develop theskills required bythe employees.
 To assess and appraise the performance of the employees.
 To generate reports ofthe employees and conduct exit formalities.
 To maintain good employeeand industrial relation
ROLES AND RESPONSIBILITIES ARE ASS FOLLOWS:
 Hiringmangers: it
identifiesthehiringneeded,developsthepositiondescriptionandotherrecruitment
relateddocuments.
 Ensures accurate and complete recruitment and selection and procedures.
 Provides diversityprofiledata availability.
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 Training and development of employee’s skills.

 Manage employee and industrial relations
B. MARKETING DEPARTMENT:
In PL INDIA, the marketing department involves arrange of processesconcerned with finding out
what consumer wants and then providing it for them. It is to carry out market research and to
find out about customerrequirement and needs.
In PL INDIA, the costumer find out about what sort of accounts want to operand the standard
service they expect to get.
OBJECTIVES
 To promote the products/services of the company.

 To provide necessary information to the customers/clients.
 To provide advertising strategies to the companies.
 Tomanagetheconcept of integrated marketing&onanorganization-widebasis to develop a
customer-orientated culture.
 To provide an interdisciplinary environment for the generation of creative idéeas in
marketing.
 To provide sufficient analytic skills for evaluation of these ideas i.e. critical insight.
 To provide training in the communication of these ideas to others.
 To create opportunities for innovation, improved performance andincremental
profitability.
ROLES & RESPONSIBILITIES AREASFOLLOWS:
 listening to customer needs

 Company Internal channels
 Channels outside the company
 Track trends and monitor competition.
 Work and transmit brand values.
 Coordinate efforts with those of marketing partners of the company.
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 To come up with an innovative product and service.

 To maintain the reputation of the brand image.
 Specialist marketing expertise.
C. FINANCE DEPARTMENT:
At PL INDIA, the department deals with all the matters related to finances inthe state which
includes the framing of rules and regulation in keeping with thechanging times to bring about
efficient finance administration.
STRUCTURE OF FINANCE DEPARTMENT
Chief Financial Officer, Operation Manager, Assistant Operation Manager Senior

OperationManagerCurrency, commodity, equity dealersAccountant.
OBJECTIVES
 Strategic Budgeting
 Cost Containment
 Cash Flow management
 Debt Service
 Tax Planning
ROLES AND RESPONSIBLITIES
 These firms primarily deal with originating or facilitating ﬁnancialtransactions.

 The transactions include creation, liquidation, transfer of ownership, andservicing or
management of ﬁnancial assets
 It involves raising funds by taking deposits or issuing securities, making loans, keeping
assets in custody or trust, or managing them to generate return, pooling of risk by under
writing insurance and annuities, orproviding specialized services to facilitate these
transactions.
 Current profit ratio increased.
 Employee morale high.
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 Market share has increased.
D. INFORMATION TECHNOLOGY DEPARTMENT
IT department at PL INDIA was implemented to put technology to its highestand best use to
improve the administration and services. The mission of thisdepartment is to provide the
information technology required for the fulfillment and effective manner through building a
world class competency in thetechnical analysis, design, and procurement and support of
computing infrastructure and services.
ROLES AND RESPONSIBILITIES
 Improve communication and collaboration with clients

 Provide security for confidential data
 Provide access to the authorized employees
 Manage online operations
 Provide information and communicate based on local networks or internetnetworking
process.
 Useoftechnologyforprogrammed assessment and measurementofoutcomes
 Enhancingthe privacyfor information
 Useof technologyto communicate with the clients
 Useof technologyto improvethe business process
 It is responsible for the maintenanceof thesystems
 It offers a wide area for networking
 Provide Information and communicatebased on local networks or internet
Networking process:
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OBJECTIVES
 To maintain the documents in the electronic format

 To manage the systems and processes
 To unify the company data
 To improve performance in administration and governance
 To manage the online share trading
SWOT ANALYSIS
STRENGTHS
 Brand Name:
PL INDIA has a very good name in the market due to its prominentservices as well as with the
big clients under its belt. Moreover, becauseof its 66 prolonged years of excellent services to the
clients.
 Competent Personnel:
PL INDIA, is blessed with one of the best employees u can get in themarket, and all the
employees bring in with them years of experience and
Talent needed to accomplish the tasks.
 Verities Of Services Offered To Clients:
PL INDIA provides varieties of services like mutual funds, insurance,derivatives, equity, for the
customers to choose from.
 Vast Experience:
PL INDIA comes with a vast experience of 66 years.
Regarded as India’s one of the first securities brokerage house.
 Original Research:
According to the analysis based on facts, theories, ideas that have not yetbeen subject to peer
review by experts, which are reliable publication.
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 Integrated Technology:
It is a converged solution with the problems relating to system andtechnology. The technology as
a lot tool to enhance the learning area in multidisciplinary and effective integration to achieve the
information in timely manner analyzes and present professionally.
 One Stop Shop:
It is the company, which have umbrella of services to its customerswhere they can get all; they
need in just one shop. Company has positivecash flow for last three yearsi.e. the total assets in
2011 is 3220 million, in2012 it is 3580 million, and in 2013 is 3564 million. A good reputation
in financial sector. It has a strong balance sheet with total assets roundingto 1300 million for last
three years. Company has a growing turnover andprofitability as it has high value of shares,
which helps to reach higherrevenue. Sound financial condition give the advantage over
thecompetitors as it shows the financial status of the company.
WEAKNESSES
 Poor presence in the world’s largest markets

 insignificant presence in institutional segment
 Turnover of employees:
 Employees are leaving the job on a constant scale, so the management isfacing the
problem of recruitment employees continuously and facing regular expenses of training
and development
 High cost structure in IT department because the company is investing more on online
services and technologies, which are used.
 Lack of usage and insufficient telephone devices to communicate withthe customer and
clients
 Lack of investment in Research and Development department below theindusty average
because they need to go with more innovations andresearch
PPURTUNITIES
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 Dissatisfied customers of competitors

 Insurance sales can increase by future changes in personal taxation
 Market growth for the firm’s main product and services
 Falling interest rates with the companies favorable percentage.
 Changing preferences and customer habits.
 Economy is expected to increase by 4% next year.
 Well-equipped meet the ever changing challenges and esteemed clientsgive a constant
end devour for the company.
 The new introduction of financial bankers who are keen to fundexpansion.
THREATS
 Developments in technology may change this market beyond our abilityto adapt.
 New or increased competition:
 Insurance plans changes according to time.
 Adverse government policies affect the company negatively when itcomes to
productivity.
 Economic slowdown.
 Lenders reducing credit lines or increasing charges.
 Many online competitors who are teaming up and expanding thedistribution channels and
customer base.
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
Meaning of analysis & interpretation
‘Analysis’ and ‘interpretation’ are complimentary to each other. Interpretation requires analysis,
analysis is useless without interpretation. Most of the authors have used the term ‘analysis’ only
to cover the meaning of both analysis and interpretation, since analysis involves interpretation.
According to Myres, “financial statement analysis is largely a study of the relationship among
the various financial factors in a business as disclosed by a single of statement and of the trend of
these factors as shown in a series of statements.” For the sake of convenience, we have also used
the term ‘financial statement analyses.
ANALYSIS: -
‘Analysis’ means methodical classification of the data given in the financial statements. The
figures given in the financial statements will not help one unless they are put in a simplified
form. For example, all items relating to ‘current assets’ are put at one place while all items
relating to ‘current liabilities’ are put at another place.
Analysis of financial statements involve methodical completion of accounting data, identification

of relevant data expressing the relationship to identify strong and weak areas of business
operations, to seek possible answers to problem in view.
In short analysis of financial statements is a means to understand financial statement of affairs of

a business enterprise in a better by a process of appropriate analysis includes establishing
relationships comparison and getting trends.
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INTERPRETATION: -
Interpretation is a “explaining the financial analysis in simple language which may be

understood by layman”.
Interpretation is an activity concerned with giving brief and understandable explanation of

analyzed data to the needy people. By interpreting the data in effective manner, it helps to
different category of people for different purposes, for management in decision making, for
shareholders or public in investing the companies, for regulatory authorities, to know the
company’s position in the market etc.
The information contained in these statements is used by management, creditors, investors and
others to form judgment about the operating performance and financial position of the firm users
of financial statements can get better insight about financial strength and weakness of the firm.
If they properly analyze information reported in these statement the management should be
particularly interested in knowing financial strengths of the firm to make their best use and to be
able to spot out financial weakness of the firm to take suitable corrective action. The future plans
of the firm should be laid down in view of the firm’s financial strengths and weaknesses. Thus
financial analysis is the starting point for making plans before using any sophisticated
forecasting and planning procedure understanding the past is a prerequisite for anticipating the
future.
INTRODUCTION:
Internet share trading has been generalized. The traditional system of open outcry has been
replaced by ‘screen based trading’. The stock exchanges have setup their terminals in major
cities across the country. The basic purpose is to ensure the accessibility of trading system and
stock exchanges index to all those who seek investment in capital market. The investors can
Page 55
quote their orders at specified prices from their places to carry on the transactions. The order
placed is further compared with order sleeked and the transactions are tallied virtually with
conformity of both parties. This current system still is not accessible to many cities in the
country and hence is violent.
The government and stock exchanges need to analyze and study awareness and attitude of
investors towards online share trading. The attitude of investors is the function of their reactions
to risk, return, safety, and liquidity. The awareness has major influence from technology
awareness and the extent of trading through online. Such a study enables the stock exchanges to
take the measures to build awareness and attitude towards capital market.
The questionnaire is prepared in accordance with the objectives laid down for the study. It is
designed to collect the primary data for the analysis of ‘investors’ perception.
The data of the project is collected through questionnaire, which tries to analyze investor’s
attitude and perception towards online share trading in Bangalore city.
Table No.4.1
Awareness of people about online trading.
Particular Investor response
Yes 90
No 10
Total 100
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Analysis:-
This question was asked whether online trading awareness means online experience, 90
respondents agree with it. And 10 respondents was not aware of online trading.
Graph-4.1
This graph showing awareness of people about online trading.
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Investores respones
100
90
80
70
60 90
50
40
30
20 10
10
0
Category 1 Category 2
Interpretation:-
According to this survey we find that 90% of the people are a wear of online trading and 10% of
them are not a wear of it.
Table No. 4.2
Table showing the no. of respondents who has invested a part of their income in trading.
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No. of respondents Percentage

Yes 35 70%
No 15 30%
Total 50 100%
Analysis
The firm should understand the customer needs and align their organization to fulfill those needs
to be best positioned to attract as well as retain their customers. Also, the firm should assess its
core competencies and choose an appropriate business model that leverages these competencies
and fulfills the customer needs. And may be investor’s relatively big size of the family and
commitments towards it. So any income would be spent towards the family thus leading to part
of their minimal savings.
Graph 4.2
Graph showing respondents who has a invest a part of their income trading
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70
70
60
50
40
30
27
30
20
10 3
0
INTERPRETATION:
In the survey it was found that 70% of the respondents are ready to take risk in share market and
remaining 30% respondents are not ready to take risk.
Table-4.3
Investors interest to trade online.
Page 60
Particular Investors response
Equity 55
Portfolio management 5
Commodities 18
Future and option 12
Total 100
Graf 4.3
Graph shows that investors interest to online trading.
Page 61
Investors Response
100
90
80
70
60
50
40
55
30
20
18 12
10 5
0
Category 1 Category 2 Category 3 Category 4
Analysis and interpretation:-
According to this survey we find that maximum number of people prefers to trade in equity
online trading, the second preference is to trade in portfolio management which is about 5% .
18% deal in commodities and 12% deal in future and option.
Table No. 4.4
Table showing the objectives of investing in Shares, Bonds, and Mutual Funds etc.
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30 60%
To earn high project
To meet future needs 20 40%
To meet emergency - 0
If any other purpose - 0
ANALYSIS:-
In survey it was found that 60% of the respondents say the objective of investing in shares,
bound & mutual funds is to earn high profit & 40% of the respondents say that to meet future
needs. This may be because of their preference of safety of investments.
Graph 4.4
Graph showing the objectives of investing in Shares, Bonds, and Mutual Funds etc.
Page 63
Percentage
To earn high project

40%
To meet future needs
To meet emergency
If any other purpose
60%
INTERPRETATION:
As per graph 60% of respondents are getting more income and try to get more return on without
taking risk remaining 40% respondents are future need.
Table No. 4.5
Table showing the investment option you are aware of
Page 64
Field / other deposits 08 16
Insurance 12 24
Equity market 12 24
Bonds 0 0
Mutual fund 15 30
Others 3 06
ANALYSIS
In the Survey it was found that the majority of the respondents that is up to 16% one aware of
equity market & 24% of respondents one aware of mutual funds & 30% of respondents, One
aware of fixed deposits & 06% of respondents, One aware of insurance & 24% of respondents
one aware of others.
Graph -4.5
Graph showing the investment option you are aware of
Page 65
Percentage
10%
17%
Field / other deposits
Insurance
Equity market
23% 10% Bonds
Mutual fund
Others
40%
INTERPRETATION:
Majority of 17%and 10% of the investors consider other deposits and insurance respectively to
be the most prospective investment avenue in the future. This may be due to the investor’s
preference for safety of their investments. Mutual funds Government bonds and other deposits
are considered as less prospective investment avenues. The investors have started sensing that
these avenues yield less returns comparatively.
Table - 4.6
The tables showing that investing know the Equity investment& now to buy & sell shares in
online
Page 66
yes 45 90%
No 5 10%
Total 50 100%
ANALYSIS:-
Survey was conducted to know whether the respondents are aware of Equity investment or not?
In the survey it was found that 90% of the respondents know to buy & sell share in outline
trading and 10% of the respondents are not.
Graph -4.6
Graph showing that investing know the Equity investment& now to buy & sell shares in online
Page 67
Percentage
100%
90%
80%
70%
60%
Percentage
50%
40%
30%
20%
10%
0%
yes No
INTERPRETATION:
A majority of 90% of the investors accepted to internet as a means of investment planning and
advisory services. Internet is the latest channel that is available to a service provider to conduct
business. Only 10% 0f the respondents were not accepted internet as a means of investment
planning and advisory services.
Table 4.7
The table showing the No. of respondents who can give better advice for investment in online
trading.
Page 68
Share Brokers 17 33%
Magazine 05 10%
TV channels 13 27%
Friends & relations 08 16%
News paper 7 14%
Total 50 100%
ANALYSIS:-
In the survey it was found that majority of the respondent feel that share brokers and TV
channels can give better advice for investment in Equity investment up to 60% and remaining
40% of respondents can get advice from magazine, TV Channels and Newspapers.
Graph-4.7
Graph showing the No. Respondents who can give better advice for investment in online
trading.
Page 69
News paper
14%
Share Brokers
33%
Friends & relations
16%
Magazine
10%
TV channels
27%
INTERPRETATION:
The majority of the investor are getting more knowledge for share brokers so they are traded in
Equity investmenti.e.33% through share brokers because they given better advice to buy & sell
of shares through online. And remaining investor is getting advice are magazine, TV channels,
Friends &Relations and News papers.
Table – 4.8
The table showing the number of respondents would you like to invest in online trading?
Page 70
yes 41 83%
No 09 17%
Total 50 100%
ANALYSIS:
In the survey it was found that 83% of the would like to invest in Equity investment and 17% of
the investors are not interested to invest in online trading.
Graph –4.8
The graph showing the number of respondents would you like to invest in online trading?
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90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
yes No
INTERPRETATION:
In the survey it was found that 83% of the respondents are would like to invest in Equity
investment because they want to get more knowledge about share market by using online
trading. And online is a latest channel i.e. available to a service provider to conduct a business.
Only the 17% of the respondents were not accepted internet as a means of investment planning
and advisory services.
Table – 4.9
The table showing the number of respondents for factors influence for investing in online trading
Page 72
Returns 35 70%
Liquidity 05 10%
Tax concession 10 20%
More investment 0 0
Total 50 100%
ANALYSIS:-
In the survey it was found that the majority of respondent that is up to 70% respondents like to
invest in Equity investment for returns, 20% for tax concession and 10% for liquidity.
Graph –4.9
The graph showing the number of respondents for factors influence for investing in online
trading
Page 73
20%
10% Returns
Liquidity
Tax concession
More investment
70%
INTERPRETATION:
In the survey it was found that the majority of respondents are trading purpose is to get more
return what they have invested and 20% of respondents are liquidity purpose others are tax
concession and the investors invested for a secure future which was the least amongst all. This is
because of the conservative nature of the Indian investors.
Table – 4.10
Table showing the no of respondents are more preferred to invest.
Page 74
Long term investment 16 33%
Short term investment 34 67%
Total 50 100%
ANALYSIS:-
In the survey it was found that about 67% of the respondents preferred to invest in short term
investment & 33% of the respondents preferred to invest in long term investment.
Graph –4.10
Graph showing the no of respondents are more preferred to invest.
Page 75
70%
60%
50%
40%
30%
20%
10%
0%
Long term investment Short term investment
INTERPRETATION
In the survey it was found that about 67% of the respondents are invested in short term because
of they want to get money in short period to full fill their financial commitment. And others are
having more money and they are not much financial commitment
Table – 4.11
Table showing the Stock exchange at which internet trading are commonly done.
Page 76

Stock
exchange
NSE 30 60%
BSE 20 40%
Total 50 100%
ANALYSIS:-
The above table indicates that 40% of respondents trade with BSE and remaining 60% of
respondent trade with NSE.
Graph –4.11
Graph showing the Stock exchange at which internet trading are commonly done.
Page 77
70
60
60
50
40
40
No. of respondents
30 Percentage
20 18
12
10
0
NSE BSE
INTERPRETATION:
The above graph indicates that 40% of respondents trade with BSE and remaining 60% of
respondent trade with NSE. Because of NSE is compare to BSE is contains less business sectors
so the investor are going to invest more in NSE.
Table – 4.12
The table showing investors trading habits.
Page 78
Trading habits No. of respondents Percentage
Regular 25 50
Occasionally 07 14
Weekly 10 20
Monthly 08 16
Others 00 00
Total 50 100
ANALYSIS:-
In the survey it was found that 50% of investors are trading regularly, 16% of the investors
trading weekly, 20% of the investors trading monthly and 14% of investors trading occasionally.
Graph –4.12
The graph showing investors trading habits.
Page 79
60
50
50
40
30 Trading habits
Percentage
20
20 17
13
10
0
0
1 2 3 4 5
INTERPRETATION:
In the survey it was found that 50% of investors are trading regularly because of they are not
committed to the other work. And private sector workers are trading weekly. Others are doing
monthly. Because the peoples are highly committed with the personnel business so the more
peoples are trading in monthly.
Table- 4.13
Online trading is easy way of trading.
Page 80
Particular Investor response
Yes 92
No 8
Total 100
Graph-4.13
Thisgraph shows that online trading is easy and fast way of trading.
Page 81
Investors response
100
90
80
70
60
50
40
30
20
10
0
Category 1 Category 2
According to this survey shows that 92% people say that online trading is easy and fast way of
trading while 80% people say it is not easy and fast way of trading.
Table-4.14
Investor’s preferable methods investment.
Page 82
Particular Investors response
Online 62
Offline 25
Both 13
Total 100
Graph-4.14
This graph shows that investors preferable methods investment.
Page 83
Investors Response
70
60
50
40
62
30
20
25
10 13
0
Category 1 Category 2 Category 3
According to this survey we find that more than half number of people prefer online trading,
25% people prefer offline trading while 13% people prefer both online and offline.
Table 4.15
Showing that product or service with certain qualities are provided by online trading.
Page 84
Particular No of percentage
respondents
agree 51 85%
Partially agree 6 10%
disagree 3 5%
total 60 100%
Analysis:-
When we asked about product and service with certain qualities are provided by online trading
51, respondents that 85% agreed with it, 6respondents that is 10% partially agree with it and 3
respondents that is 5% with it.
Graph4.15
Page 85
Chart Title
60
50
40
30 51
20
10
6 3
0
Interpretation
It was inferred that most of the customers agree that products or service with certain qualities are
provided by online trading, because quality products or service make a positive note on
customers mind which makes the customers to go with the online trading.
Table 4.16
Showing factor which help to build a good online trading image.
particular No of percentage
Page 86
respondents
quality 42 70%
Competitive price 6 10%
Good value added service 8 5%
Fast delivery 3 13%
Discount 1 2%
Total 60 100%
Analysis
When we asked about the factors which help to build a good image about online trading 42
respondents about the quality of product in online trading, 6 respondents said it is competitive
price 8 respondents at good value ,3 respondent about fast delivery and 1 respondents about
discount rate
Graph 4.16
Graph showing the factor which helps to build a good online trading
Page 87
Chart Title
50
45
40
35
30
25
20 42
15
10
5
6 8
1 3
0
Interpretation
Majority of the customers said quality helps to build a good image of online trading.
Table 4.17
Table showing which media is the best for investors.
Page 88
particular No of
respondents
T.V 60
Newspaper 30
magazine 10
Total 100
Graph4.17
Graph showing which media is the best for investors
Page 89
Chart Title
70
60
50
40
60
30
20 30
10 10
0
Analysis and interpretation
According to the above Table showing which media is the best for investor’s 60 respondents for
TVs, 30 respondents news paper and 10 respondents on magazine
Table 4.18
Table showing short comings do feel India online trading.
Page 90
particular No of
respondents
Lack of awareness the investor about online 40
trading
Shortage of domestic technical expertise 35
If any other 25
Total 100
Graph 4.18
Graph showing short comings do feel India online trading.
Page 91
45
40
40
35
35
30
25
25
20
15
10
0
1 2 3
According to the above Table showing which Lack of awareness the investor about online
trading is 40%, Shortage of domestic technical expertise is 35%, If any other is 25%.
Table 4.19
Table showing the mode of trading.
Page 92
particular No of
respondents
Daily 30
Weekly 25
Monthly 15
yearly 30
Total 100
Graph 4.19
Graphy showing the mode of trading.
Page 93
35
30 30
30
25
25
20
15
15
10
0
1 2 3 4
According to the above Table showing the mode of trading in terms of daily trading
contributes30%, Weekly trading contributes 25%, Monthly trading amounts to 15%, Yearly
trading contributes 30% .
Table 4.20
Table showing the experiences with online trading till date.
Page 94
particular No of
respondents
Very easy to operate 40
very difficult to operate 20
Not secure 15
any other 15
Total 100
Graph 4.20
Graph showing the experiences with online trading till date.
Page 95
45
40
40
35
30
25
20
20
15 15
15
10
0
1 2 3 4
According to the above Table the experiences with online trading till date with regards to 40%
respondents are very easy to operate, 20% respondents very difficult to operate, 15% respondents
are not secure and 15% belongs to others.
CHAPTER 5
SUMMARY OF FINDINDS, SUGGESTIONS & CONCLUSION
Page 96
Findings:
 In the survey it was found that Majority of the respondents would like to invert their income
in trading.
 In the survey it was found that investors’ objective of investing in shares, bonds & mutual
funds is to earn high profit & to meet their future needs.
 It is found in the survey that Majority of the respondents are aware of equity market, mutual
funds etc.
 It is found in the survey that all most all the respondents i.e., up to 90% are aware of online
trading.
 It is found in the survey that through share brokers, friends & relations, T.V. channels they
will get better advice for investing in online trading.
 In the survey it is found that majority of the investors prefer to invest in short term
investment.
 In the survey it was found that the service provided by the BMA Wealth Creators investment
satisfactory.
 The online share trading popularity is depending upon the extent of technology awareness
and trading habit.
SUGGESTIONS:
 Most of the respondent is not aware of internet share trading so government should
make efforts to educate people on this.
Page 97
 The stock exchange most establish there “operating Branches” across the country so
as to easily accessible to the investors.
 In advancer city there is limited internet service providers so exchanges should
establish branches in all district level also.
 Many internet share trading sites do not offer facility to apply for IPO’s online they
need to be provided by all.
 The internet usage cost should come down so that more and more people encourage
using internet for trading.
OBSERVATIONS
 Most of the investors prefer fixed deposits rather than shares. So comparative advantages
of investing in stock market should be clearly explained.
Page 98
 As most of the investors are not aware about mutual funds, bonds, the company should
recommend the investors about mutual funds and bonds.
 Awareness about Equity investment should be increased through
 Publishing articles in regional language conducting seminars
 Conducting seminars
 Advertisements should be done in regional languages.
 Increasing promotional activities
 Online education.
 Educating the investors by supplying some materials regarding Equity investment and its
benefits and leading capital market research analysis.
 To attract new investors to share market improve in the portfolio investment, which gives
move return and less risk, and by giving better advice to investors through online about
share market and bonds.
 Advisors should give proper information to the investors about investing shares in online
trading.
 Emerging changes should be informed, communicated to the investors periodically.
Changes should be published in newspaper, magazines. Newsletters etc.
CONCLUSION
Page 99
 The country economies development is resorted in to variety of aspects that tend to

improve and speed up the process of development. In this context, contribution of the
capital market is consents. The role capital market is omniscient as it bridges the gap
between the capital deficiencies and capital surplus. In order to ensure the transparency
so as to enable the investors to speed up their process of investing, the stock exchanges
are restoring to screen based train
 Equity investment plays a vital role in the economy by mobilizing savings and investing
them in capital market, thus establishes a link between savings and capital market. Now
slowly more and more investors are attracted towards Equity investment for high returns,
tax concession etc.
 The trading outcry system failed to provide transparency, hence for the only resort to opt
was technology infrastructure to the share trading, thus, facilitating the open up of BOLT
in the country. The process can succeed when it is properly communicated to the targets.
In this direction, the project focused to study the awareness level and perception of
investors towards online share trading.
 Awareness of IST is increasing in people day by day. Some people feel that there are
security and integrity issues with IST. Facility numbers of daily trade have increased at
NSE and BSE at the same time. Many internet sites provide real time data of shares to the
investors at their finger tips. Internet trading brokerage charges are less compared to the
reading through brokers as no manual intervention is required.
Page 100
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A STUDY ON PERCEPTION OF INVESTOR TOWADS ONLINE TRADING

Required everywhere: all activity, be it production, marketing, human resources development,

Financial planning generally involves analyzing an individual's or a family's current financial

1.3 FUNCTIONS OF FINANCE MANAGER:

 Forecasting Financial Requirements

A business finance of financial management is a managerial activity, which is concerned with

MEANING OF FINANCIAL MANAGEMENT:

DEFINATION OF FINANCIAL MANAGEMENT:

SCOPE OF FINANCIAL MANAGEMENT:

 Arrangement of funds from financial institutions.

OBJECTIVES OF FINANCIAL MANAGEMENT:

The main objective of financial management is as follows:

 To achieve profit maximization as a corporate social objective.

 To maintain liquidity to meet debt obligation.

(a) National Stock Exchange (NSE)

Definitionof Online Trading:-

FEATURES OF ONLINE TRADING:

 Know the price of any stock at any time

 Follow market events in-depth

Ensures the best price for Investor:

 Offers greater transparency:

Enables hassle free trading:

Disadvantage of online trading:-

 Active trading is dependent upon a number of specialization software systems.

When was online trading introduced in INDIA?

Facilities of the online trading in India:

Products and services of the online trading in India:

BASICS OF ONLINE SHARE TRADING IN INDIA

Stock Trading: The main two methods of trading systems are:

Traditional trading system:

Online Trading System:

National stock exchange and Bombay stock exchange:

 .Online trading is termed as selling products or good services through Internet.

 The product is shipped to the customer from the retailer only.

Companies provide Online Trading in India:-

Online Trading in India

:: A1 Technology Online Trading :: JV Financial Online

:: Best online trading :: Kotak Securities Online Trading

:: Bonanza Online Trading :: Mansukh Securities Online Trading

:: BullishIndian.com Online Trading :: Quote.com Online Trading

:: Express Computer Online Trading :: SHCL Online Trading

:: Geojit Securities Online :: STC Online Trading

:: ICICI Online Trading :: Technical Analysis Trading

:: Indiabulls Online :: Union Bank of India Online Trading

:: India Insurance :: Best Online Trading

BENEFITS OF ONLINE BROKING

4) Access to Information and investment Tools:

5.) Unparalleled Liquidity:

6.) Unparalleled Safety:

7.) Reduces the settlement risk:

8.) Offers greater transparency:

9.) Ease of: trade

PROBLEMS OF ONLINE BROKING

There is a flip side to everything and online trading is no exception.

More Costly Lack O f Knowledge

23% Slow Speed Ot her

27% Loyalty is of traditional broker

21% people not prefer online trading because of lack of knowledge.

PROCEDURE FOR ON-LINE TRADING: