Professional Documents
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Customer Ion Online Share
Customer Ion Online Share
HISTORY
Online trading involves investment activity which takes place over the Internet
and it does not require physical inclusion of the broker. An investor has to
register with an online trading portal like ICICIdirect.com, motilaloswal.com
and sharekhan.com and many companies like that and investor gets into an
agreement with the firm to trade in different securities according to the terms
and conditions given on the agreement. As the servers of the online trading
portal are connected all the time to the stock exchanges and designated banks
the order processing is done in real time and investors can also have updates on
the trading. They can also check the status of their orders either through e-mail
or through the interface that it cannot be accessed by a third party.Some options
are usually given to users such as to link their bank account, Demat accounts
and brokerage accounts into a single interface. A single window is also there for
all exchanges and a single screen is there for the complete order routing
mechanism.
The reason why online trading has developed over conventional offline
brokerage firms is that this conventional method struggled with unfavorable
economies. Staff cost is just one example of it. As the markets opens for 330
minutes a day one dealer can at best execute 500 trades in a day while online
company like ICICI direct executes 150,000-200,000 trades a day on the
National Stock Exchange alone accounting for 3-4% of NSE trades of 5 million
a day. It would require a large amount of dealers to service this demand.
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Besides the salary costs it would also demand huge expenses in real estate and
support systems.
The offline model has got a downfall in the form of lower bandwidth and IT
costs and the cost of bandwidth has fallen to one-eighth of what it was in 2000
giving online broking an advantage especially in the case of lower-volume retail
investors.
Today 30% of volumes on the NSE comes from this and it may go up to 50% in
three-four years providing explosive growth for online broking in India.
The Indian trader is being fancied by the democratized world of online trading
or also known as e-broking. The regular and attractive advertisements in the
print media and electronic media have added to this fancy world.
But as we compare to the Western countries, in India online trading has not still
grasped the market , but has done a very important amount of progress in the
past years and the future of online trading is bright. That is why many new
companies are coming into this form of business structure and the existing
companies are changing to this new format besides offline and other traditional
forms of business. With only a mere share of 10% online trading a combined
gross turnover of around Rs. 9000-10,000 crores handled by the BSE and NSE
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together there is a much greater scope for online trading. At present some of the
dominant players in the online trading market of share market are –
1. Sharekhan.com
2. Icicidirect.com
3. Unicon
4. 5paisa.com
5. Indiabulls
6. Kotak Securities
7. Motilal Oswal
8. Geojit Securities
Earlier the share market was not safe enough to invest but some of the changes
in the past ten years in the Indian share market have created the interest of
trading in the shares by the people. Broadly we can classify three important
factors which have contributed to the development of online trading in India-
Firstly the major step was taken by the National Stock Exchange (NSE) in the
year 1994 which allowed the electronic trading and seeing to this various other
stock exchanges in India followed soon. This helped in making the fast
.accurate and transparent transactions saving a lot of time then the traditional
method of trading. The investors were also saved by the clutches of the fraud
brokers at the times when the clients were not aware of the true prices of the
shares.
Secondly, in the year 1996 the dematerialization of the shares came (also known
as DEMAT) which avoided the online presence of shares in an electronic form
avoiding them from theft, pilferage or from other losses like counterfeiting and
frauds regarding share transfer
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The third reason was the rapid growth of computer education and learning of
internet by the people. With the evolving of internet the online trading became a
hit and the investors became confident in investing just with a click of a mouse.
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4. Ensures the best price for investors
5. Online trading offers greater transparency
6. Provides hassle free trading
7. Online trading allows instant trade execution
8. Online trading reduces the settlement risk
9. Keeps Information Secure
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CHP1--INTRODUCTION AND DESIGN OF
THE STUDY
INTRODUCTION
Statistics reveal that the trade volume has been increasing continously, coupled
with ups and downs which is nature of share trading.
We are living in the interlinked world .With growing volume of trade, it has
become a nessecity that people are aware of the intricacies of the web world.
SENSEX the benchmark indicator of share trading has more than tripled ever
since online – share trading commenced .It has become imperative to be the
participant of this mode of training.
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Recently the crisis in the financial market resulted in global inflation. The share
market was clear indicator of the prevailing prices.
Share trading is the way for faster earning and loosing money. In recent years a
volatile market could be witnessed. In the desire to earn money in a quick
manner , more and more people ventured into the share trading. Lack of
awareness of many investors has made them loose lakhs of money in share
market. Wise play by many others has made them earn in crores.
At such time, it would be interesting to know the attitude of the players and the
condition in the market. A survey about the investors and share market in such a
time would be educative to tommorow’s investors. It could also lead to
improvement in the conditions that would facilitate increase in the share trading.
Several websites provide information about the stock market. They educate
people about the share trading and guide them through each step. Online share
trading has become so common. Still many of them are unaware of the
intricacies involved in share trading.
Condition being such it is necessary to take stock of the market activity and the
awareness of investors in our town.
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OBJECTIVITY OF THE STUDY
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The stock market is one of the most important sources for companies to raise
money. This allows businesses to be publicly traded, or raise additional capital
for expansion by selling shares of ownership of the company in a public market.
The liquidity that an exchange provides affords investors the ability to quickly
and easily sell securities. This is an attractive feature of investing in stocks,
compared to other less liquid investments such as real estate.
Electronic trading- It eliminates the need for the physical trading floors.
Brokers can trade from their offices, using fully automated screen based
purposes. Their workstations are connected to a stock exchange central
computer via satellite using very small aperture terminus (VSATs). The orders
placed by brokers reach the exchange central computer and are matched
electronically.
If a company wants to grow – may be build more factories , hire more people
,or develop new products – it needs money. It could get a loan from a bank. But
then it would owe money. By issuing stock , company can raise money without
going into debt. People who buy stock are giving the company the money it
needs to grow. Not every company can issue stock. A business owned by a
person or few people (partnership) cannot issue stock. Only business
corporation can issue the stock. A corporation has special legal status. Like
school, its existence does not depend on the people who run ii. Under the law it
is separate from the people associated with it , and has special legal rights and
responsibilities well as its own unique name.
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Why people buy it
Owning stock in a company means owning part of the company. Each part is
known share. If a company has issued 100 shares of stock, and you bought one,
you own 1% of that company. People who own stock are called stock holders or
shareholders.
Stockholders hope the company will earn the money as it grows. If a company
earns money the stockholders share the profit. Over time people usually earn
more from owning stock than from leaving money in the bank, buying bonds or
making other investments.
Bears are cautious animals who don’t like to move fast. Bulls are bold animals
that might charge right ahead. An investor is said to be “bearish” if he or she
believes that the stock market will go down. A bearish investor will buy stock
cautiously. A bullish investor believes the market will go up. He or she will
charge ahead and put more money in the market. An investor can be bearish or
bullish about a particular kind of stock.
Like wise the term “bear market” describes the time when stock price has been
falling on the whole. A “bull market” is a period when stock prices are
generally rising.
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CHP- 2 RESEARCH METHODOLOGY
RESAEARCH OBJECTIVE
3. To see the type of technology used by stock exchanges and by the Indian
4. To determine what type of products the customers deal while doing the online
trading.
5. To understand the presence of major online traders in the Indian market and
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RESEARCH DESIGN
It would be helpful to take the stock of the prevailing trend of the investors
public in any city. This study is aimed at collecting information from the share
investing public of Mumbai with respect to online share traders.
The objective of this study is to understand the condition prevailing among the
investing public. Considering the cost involved, time factor and lack of
awareness of efficient data gathering techniques and tool for analysis , all the
online share trading public may not be covered. It may not be possible to arrive
to the exact value of findings.
The tool employed here is percentage analysis. The total of the data collected
under one factor are summed up and their percentage is calculated. Suppose we
consider 10 factors with 5 attributes for each factor.
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Each attribute is given ranks. The values are added and the percentage for each
attribute is calculated. These values are used for analysis. This is percentage
analysis.
SOURCES OF DATA
SAMPLING PLAN
➢ Sampling:
Since Sharekhan Limited has many segments .100%
coverage was difficult within the limited period of time. Hence sampling
survey method was adopted for the purpose of the study.
Population:
(Universe) customers & non consumers of Sharekhan limited
➢ Sampling size:
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➢ Sampling Methods:
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CHP-3 COMPANY PROFILE
MISSION OF SHAREKHAN is
“To educate and empower the individual investor to make better investment
decisions through
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1) QUALITY ADVICE
2) INNOVATIVE PRODUCTS and
3) SUPERIOR SERVICE.”
Sharekhan offers both Offline and online trading account. But now a days it
mostly concentrates on online trading account through which a customer can
buy and sell shares in an instant from any part of the globe trough website. It
does not take into account any type of physical restriction of going to the broker
for carrying out a transaction or any type of settlement of payment. It facilitates
the customer a speedy and hassle free transaction. Share khan’s product consists
of a 4-in-1 concept, which integrates:
D-matAccount
TradingAccount
Bank Link
Dial-N-Trade
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For doing a trading of shares everyone need D-mat A/C. In his D-mat A/C one
can kept his shares. Then Sharekhan provides a Trading A/C Through this
trading account, a Sharekhan customer can directly transfer his funds from his
savings account i.e. from bank account to Sharekhan to his trading account
without any paper work. He can buy and sell shares from the website and also
view the market prices of the shares he trades on the terminal.Sharekhan.com
allows trading at present only on NSE. BSE trading will be shortly available. To
open an account a customer requires filling up a form consisting of 12
agreements, a passport size photograph, a residential proof, a photo id proof and
a cheque drawn of respective amount in favor of S. S. Kantilal Ishwarlal
securities Pvt. Ltd. & from 22 March , 2007 cheque is drawn in favor of
Sharekhan LTD. it self.
After opening an account with Sharekhan, a customer will be given User
id, Membership password and trading password, which will enable him to
access his account and trade.
PRODUCTS OF “SHAREKHAN”:-
CLASSIC ACCOUNT:-
This account allows the client to trade through the website and is suitable
for the retail investors.
Here maximum scripts that can be shown on the terminal are only
The lifetime registration charge for this account is Rs.750 and there is no
constraint of minimum turnover.
This is ideal for active traders who transact frequently during day’s
with market depth and intra-day chart and lets the client do his own
stock/technical analysis.
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Key features of online trading with sharekhan
COMPETITORS:
Sharekhan is one of the major player in on line Trading. In Mumbai the main
competitors of Sharekhan are ICICI Direct, India bulls, Kotak Securities, HDFC
Securities, Anand Rathi, and Motilal Oswal.
1. Religare Enterprises
2. India Info line
3. ICICI Direct
4. India Bulls
5. Reliance Money
6. Kotak Securities
7. Motilaloswal
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REASON TO CHOOSE SHAREKHAN
Experience
SSKI has more than eight decades of trust and credibility in the Indian stock
market. In the Asia Money broker's poll held recently, SSKI won the 'India's
best broking house for 2004' award. Ever since it launched Sharekhan as its
retail broking division in February 2000, it has been providing institutional-
level research and broking services to individual investors.
Technology
With their online trading account one can buy and sell shares in an instant from
any PC with an internet connection. Customers get access to the powerful
online trading tools that will help them to take complete control over their
investment in shares.
Accessibility
Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION
services for investors. These services are accessible through many centers
across the country (Over 650 locations in 150 cities), over the Internet (through
the website www.sharekhan.com) as well as over the Voice Tool.
Knowledge
In a business where the right information at the right time can translate into
direct profits, investors get access to a wide range of information on the content-
rich portal,www.sharekhan.com. Investors will also get a useful set of
knowledge-based tools that will empower them to take informed decisions.
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Convenience
One can call Sharekhan’s Dial-N-Trade number to get investment advice and
execute his/her transactions. They have a dedicated call-center to provide this
service via a Toll Free Number 1800 22-7500 & 39707500 from anywhere in
India.
Customer Service
Its customer service team assist their customer for any help that they need
relating to transactions, billing, demat and other queries. Their customer service
can be contacted via a tollfree number, email or live chat on
www.sharekhan.com.
Investment Advice
Sharekhan has dedicated research teams of more than 30 people for
fundamental and technical research. Their analysts constantly track the pulse of
the market and provide timely investment advice to customer in the form of
daily research emails, online chat, printed reports etc.
BENEFITS
➢ Free Depository A/c
➢Instant Cash Transfer
➢ Multiple Bank Option.
➢ Secure Order by Voice Tool Dial-n-Trade
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How to open account with Sharekhan?
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ADVANTAGES OF SHAREKHAN:
Online trading is very user friendly and one doesn't need any software to
access.
They provides good quality of services like daily SMS alerts, mail alerts,
stock recommendations etc.
Sharekhan has ability to transfer funds from most banks. Unlike ICICI
Direct, HDFC Sec, etc., so investor not really needs to open an account
with a particular bank as it can establish link with most modern banks.
DISADVANTAGES OF SHAREKHAN:
They charge minimum brokerage of 10 paisa per stock would not let you
trade stocks below 20 rs. (If you trade, you will loose majority of your
money in brokerage).
Lots of hidden rules and charges.
They do not provide facility to book limit order trades during after-hours.
Classic account holders cannot trade commodities.
Cannot purchase mutual fund
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CH-4 FINDINGS AND INTERPRETATION
The data collected from the customers were systematically applied and they
were presented as tables under various heading in following pages. They are
also arranged in such a way that a detailed analysis can be made so as to
present suitable interpretation
for the same .
Table 1
TABLE SHOWING AGE GROUP OF RESPONDENTS
2 30 - 50 years 16 37%
4 Total 70 100%
The above table indicates that out of the total number of respondents , 41% of
the respondents are below 30 years of age , 37% of the respondents were
between 30 years and 50 years and 22% of the respondents were above 50 years
of age It shows that majority of respondents are below 30 years
Table 2
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TABLE SHOWING THE GENDER RATIO OF THE
RESPONDENT
1 MALE 28 40%
2 FEMALE 42 60%
TOTAL 70 100%
The above table indicates that out of the total respondents , 40 % of the
respondents were male and 60% were female.
CHART 1
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GENDER RATIO
45
40
35
30
25
MALE
20 FEMALE
15
10
Table 3
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EDUCATION QUALIFICATION
2 Diploma 12 17 %
3 Under graduate 35 50 %
4 Post graduate 18 26 %
5 Total 70 100%
The above table shows that out of 70 respondents, 5 have school level
education , 12 have diploma , 35 of them under graduates and 18 of them hold
post graduate level of education.
Table 4
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INCOME
5 Total 70 100%
The above table indicates that out of the total respondents , 26% of the
respondents had an income below Rs. 10000 per month , 57% of the
respondents had an income in range of Rs. 10000 and Rs. 20000, 16% of the
respondents had an income in range of Rs. 20000 and Rs. 30000, and 1% of
the respondents had an income above Rs. 30000.
Table -5
INDUCING FACTOR
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S.NO INDUCING FACTOR NO.OF PERCENTAGE
RESPONDENTS
1 Friends 40 57%
4 Total 70 100%
The above table indicates that out of the total respondents , 57% of the
respondents were induced by friends into online share trading , 14% of the
respondents were induced by online advertisements, and 29% of the
respondents were induced by financial consultants.
Chart 2
INDUCING FACTOR
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Table 6
INTERNET FACTOR
37
S.NO INTERNET ACESS NO.OF PERCENTAGE
PLACE RESPONDENT
1 Home 19 27%
4 Total 70 100%
The above table indicates that out of the total respondent , 27% of the
respondent were accessing internet for share trading at home ,47% of the
respondent were accessing internet for share trading at the stock brokers office,
27% of the respondent were accessing internet for share trading at browsing
centres
Table 7
TRADING PERIODICITY
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1 Daily basis 31 14%
3 Monthly basis 5 7%
4 Irregular 14 20%
5 Total 70 100%
THE above table indicates that out of the total respondent , 14% of the
respondents were doing online share trading on a daily basis, 29 % of the
respondents were doing online share trading on a weekly basis, 7% of the
respondents were doing online share trading on a monthly basis, 20% of the
respondents were doing online share trading on a irregular basis.
Chart 3
TRADING PERIODICITY
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TABLE 8
40
SHARE BROKING COMPANY
1 Anandrathi 12 17%
2 Karvy 18 26%
3 Sharekhan 12 17%
4 Geojit 14 20%
5 II % FS 11 16%
6 OTHERS 3 4%
TOTAL 70 100%
The above table indicate that out of total respondent , 17% of the respondent
chose Anandrathi as their broker to do online share trading , 26% of the
respondent chose Karvy as their broker to do online share trading , 17% of the
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respondent chose Sharekhan as their broker to do online share trading , 20% of
the respondent chose Geojit as their broker to do online share trading , 16% of
the respondent chose IL & FS as their broker to do online share trading ,and 4%
of the respondent chose other firms like motilal as their broker to do online
share trading ,
Chart 4
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Table 9
INFRASTRUCTURE OPINION
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S.NO RATING NO. OF PERCENTAGE
RESPONDENT
1 Poor 15% 21%
The above table indicates that out of the total respondent, 21% of the respondent
rate the Telecommunication and internet facility in Mumbai city as poor, , 58%
of the respondent rate the Telecommunication and internet facility in Mumbai
city as average , 21% of the respondent rate the Telecommunication and internet
facility in Mumbai city as good.
CHART 5
INFRASTRUCTURE OPINION
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Table 10
2 Good 33 47%
3 Average 23 32%
4 Satisfactory 2 4%
5 Total 70 100%
The above table indicates that out of the total respondent, 17% of the
respondents grade the bank related activities of their share broking company as
very good, 47% of the respondents grade the bank related activities of their
share broking company as good, 32% of the respondents grade the bank related
activities of their share broking company as average, 4% of the respondents
grade the bank related activities of their share broking company as satisfactory.
Chart5
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CHP 5- SUGGESTION AND
CONCLUSIONS
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SUGGESTIONS
CONCLUSIONS
The purpose of this study is well achieved. The day is not far when
there would be free internet access in the city. Its delightful to note that the
investors are eager to be updated about the market situation. Considering the
ongoing trend the infrastructure for online share trading will improve in the city
and there would be hike in volume of share trading.The study has revealed the
nature of share investors , share broking firms and investment atmosphere.
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People in the beginning of their earning life seem to be more involved in
online share trading.
Married men and women have found online share trading as their source
of extra income.
Friends have been the major inducing factor towards online share trading.
Most of the respondents access the internet at the stock brokers office and
they access it on all business days.
50% of the online share trading respondents here rate the infrastructure
facility in this town as average.
Majority of the respondents grade the bank associated activities of their
online trading site as good.
LEARNINGS
The two month summer training was a good experience for me to learn the
practical aspects of the corporate life.Some of the learning of mine are:
• I improved my communication skills by learning how to talk to different
kind of people as it requires the diffent approach to handle each person.
• I learnt to how handle the pressure under difficult situations.
• I became aware about various aspects of working of stock exchange
• I learnt about the consumer perception about the stock market and online
trading.
• Patience was the thing I learnt the most as I have to approach the clients
who were to be explained same things again and again while
appraoching or calling them at regular Intervals
BIBLIOGRAPHY
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Books
1.) Dalal street journals stock market book
1) Buisness world
2) Business today
3) Capital market
4) Economic times
Website
1) www.tradersplace.in
2) www.sharekhan.com
APPENDIX
QUESTIONNAIRE
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CUSTOMER SATISFACTION TOWARDS ONLINE
TRADING
1)Name ()
2) Gender :i)male ()
ii)female ()
3)Age i) below 30 ()
ii) 30-50 ()
iii) above 50 ()
4) Educational qualification
i) school level ()
ii) under graduate ()
iii) post graduate ()
iv) others ()
5) Income
i) below 10000 ()
ii)10000-20000per month ()
iii) above 20000 ()
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iii) advice by finanacial consultants ()
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i) yes ()
ii) no ()
13) Do you feel that there is more transperancy in online share trading
i) yes ()
ii) no ()
16) Do you feel that trading volume will increase in near future
i) yess ()
ii) no ()
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