A

STUDY ON

ONLINE TRADING

AT

AXIS BANL LTD

A Project report submitted to Osmania University

In partial fulfillment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

S. ARVIND

HT NO: 2121-20-672-152

UNDER THE GUIDANCE OF

--------------------------------------------

ARISTOTLE PG COLLEGE

(Affiliated To Osmania University, Hyderabad)

Recognized By UGC under section 2(f) of UGC Act 1956

Beside Moinabad Police Station,

Chilkur, Moinabad ,Ranga Reddy District, Telangana.

2020-2022
 CHAPTER-I
INTRODUCTION

Online trading definition is a basic understanding of online trading processes. Since the

invention of Internet people have been able to do practically everything virtually. Due to the

Internet online trading has become one of the most popular ways to trade as far as stock

trading turned out to be as available to independent investors as possible. Online trading

gives both beginners who've just had a single day trading course and advanced traders an

opportunity to trade stocks, options, forex and futures all over the world without physical

presence of a broker and with much lower commissions, because everything is done online

Internet trading commissions are clearly posted on the websites of the various

services, and are typically a fixed rate charge, depending upon the type of security being

traded and the size of trade. In theory, therefore, an Interest investor always knows what

commission he is being charged on each trade. Internet investors can take as much time as

they would like to take prior to placing a trade order. Similarly the online investor likely does

not have to worry that his broker is making unauthorized trades. Since there is no individual

broker making a commission, the only person who is authorized to trace in the account is the

actual investor. Furthermore, the internet investor can never become a victim of excessive

trading (where for the broker) since the investor maintains total control over the number of

transactions which take place in the account.

All of these positive features of internet trading may lead the unwary investor to

believe that Internet trading is a way to take control of their finances and save more money in

the process. Unfortunately, this is not always the case. The advantages of Internet stock
trading have also its weaknesses and these weaknesses present significant drawbacks for the

average investor.

First and foremost, the average investor is not an expert in the financial markets.

There is a danger for allowing the autonomy of online trading to hull you into the belief that

you are an expert investor. An online investor sitting at home at a personal computer also

foregoes proper investment advice and financial planning, perhaps among the most valuable

services provided by traditional brokers.

There are, of course, additional risks relative to performing transactions over the

Internet especially on a shared computer. Those people whom investors have provided their

account number and password can freely trade that account while the investor will have little,

if any, resource against the brokerage firm for the breach of security.
 CHAPTER-II
REVIEW OF LITERATURE
TITTLE OF PAPER : Examines the impact of financial and

capital market

AUTHOR :Shirai

YEAR :2019

ABSTRACT

Examines the impact of financial and capital market reforms on corporate finance in India.

India’s financial and capital market reforms since the early 1990s have had a positive impact

on both the banking sector and capital markets. Nevertheless, the capital markets remain

shallow, particularly when it comes to differentiating high-quality firms from low-quality

ones (and thus lowering capital costs for the former compared with the latter). While some

high-quality firms (e.g., large firms) have substituted bond finance for bank loans, this has

not occurred to any significant degree for many other types of firms (e.g., old, export-oriented

and commercial paper-issuing ones)

TITTLE OF PAPER : Stages of capital market

AUTHOR : Bajpai

YEAR : 2017

ABSTRACT

Concludes that the capital market in India has gone through various stages of liberalization,

bringing about fundamental and structural changes in the market design and operation,

resulting in broader investment choices, drastic reduction in transaction costs, and efficiency,

transparency and safety as also increased integration with the global markets. The opening up

of the economy for investment and trade, the dismantling of administered interest and

exchange rates regimes and setting up of sound regulatory institutions have enabledtime.

TITTLE OF PAPER :CochraneOrchutt two step procedures

AUTHOR : Sen Shankar Som and Ghosh

YEAR : 2018

ABSTRACT

An effort has been made to establish a relation between liquidity and volatility in their paper.

It has been found that there is a statistically significant negative relationship between risk and

stock market liquidity. Finally, it is concluded that there is no significant relationship

between liquidity and trading activity in terms ofturnover.

TITTLE OF PAPER : Global Stock Futures

AUTHOR : Masih AM, Masih R

YEAR :2017

ABSTRACT

A Diagstinoc Analysis of a Selected Emerging and Developed Markets with Special

Reference to India”, by using tools correlation coefficients , granger’s causality test,

augmented Dicky Fuller test (ADF), Elliott, Rothenberg and Stock point optimal test. The

Authors, through this paper, have tried to find out what kind of relationship exists between

emerging and developed futures markets of selectedcountries

TITTLE OF PAPER : Dynamic growth of derivatives

AUTHOR : Naresh, G

YEAR : 2016

ABSTRACT

Studied the dynamic growth of the Derivatives market, particularly Futures & Options and

the perceived risks to the financial sector continue to stimulate debate on the proper

regulation of these instruments. Even though this market was initially fuelled by various

expert teams’ survey, regulatory framework, recommendations byelaws and rules there is still

a debate on the existing regulations such as why is regulation needed? When and where

regulation needed? What are reasonable and attainable goals of these regulations? Therefore,

this article critically examines the views of market participants on the existing regulatory

issues in trading Derivative securities in Indian capital marketconditions

 CHAPTER-III
RESEARCH METHODOLOGY

NEED FOR THE STUDY:

The present study to review the online trading procedure a case study of ONLINE TRADING

at AXIS BANL LTD., as the exchange has changed it’s trading from it and there is need to

assess the performance of the capital market.

Maintaining good records requires discipline, just like good trading. Unfortunately, many

commodity traders don’t take the time to track their trading history, which can offer a wealth

of information to improve their odds of success. Most professional traders, and those who

consistently make money from trading commodities, keep diligent records of their trading

activity. The same cannot be said for the masses that consistently lose at trading

commodities.

SCOPE OF THE STUDY

 ‘Investor can assess the company financial strength and factors that effect the

company. Scope of the study is limited. We can say that 70% of the analysis is proved good

for the investor, but the 30% depends upon market sentiment.

 The topic is selected to analyses the factors that affect the future EPS of a company

based on fundamentals of the company.

 The market standing of the company studied in the order to give a better scope to the

Analysis is helpful to the investors, share holders, creditors for the rating of the company.
OBJECTIVES OF THE STUDY:

 It is to analyze the changes in trading after the exchange shifted from outcry to
online trading system.
 It is to study the functions of AXIS BANL LTD through various departments.
 To know the online screen based trading system adopted by AXIS BANL LTD
and about its communication facilities. The appropriate configuration to set the network,
which would link the AXIS BANL LTD to individual / members.
 To know about the latest and future development in the stock exchange trading
system.

RESEARCH METHODOLOGY OF THE STUDY:

The data collection methods include both primary and secondary

Collection methods.

Primary method: This method includes the data collected from the personal interaction with
authorized members of AXIS BANL LTD.

Secondary method: The secondary data collection method includes:

 The lecturers delivered by the superintendents of respective departments.
 The brochures and material provided by AXIS BANL LTD.
 The data collected from the magazines of the NSE, economic times, etc.
 Various books relating to the investments, capital market and other related topics.

PERIOD OF STUDY

 A Project Of 45 Days
Pre-Testing Or Pilot
In this chapter, we detail the possibilities and pitfalls presented by pretesting, the methods of
validating the survey instrument and its measurements, and pilot testing, the “dress rehearsal”
of survey administration and procedures Pretesting and pilot testing are invaluable
components of survey research, affording researchers a valuable opportunity for reflection
and revision of their project before the costs of errors begin to multiply later on. We begin
this chapter with a discussion of the goals of and guidelines for pretesting followed by a
summary checklist to help you make the most of this procedure. Then we provide an
elaboration of the broader process of pilot testing the entire project from start to finish.

Survey Tools using in the study

Statistical Tools: MS-excel and pie and bar diagrams are used to analyze the data.

LIMITATIONS OF THE STUDY:

The study confines to the past and present system of the trading procedure in the and the
India info line study is confined to the coverage of all the related issues in brief. The data is
collected from the primary and secondary sources and thus is subject to slight variation than
what the study includes in reality.
The study is confined to online trading procedure only. Problems of listing are not covered
due to limited time and to keep the study in manageable limits.
- Time constraint was a major limiting factor. Forty five days were insufficient to even
grasp the theoretical concepts.
- Several other strategies that could have been studied were not done.
- Lack of knowledge with the brokers.
- Difference of theory from practice.
Absence of required knowledge and technology
 CHAPTER-IV
COMPANY PROFILE
AXIS BANK
Axis Bank India, the first bank to begin operations as new private banks in 1994 after the
Government of India allowed new private banks to be established. Axis Bank was jointly
promoted by the Administrator of the specified undertaking of the
 Unit Trust of India (UTI-I)
 Life Insurance Corporation of India (LIC)
 General Insurance Corporation Ltd.
Also with associates viz. National Insurance Company Ltd., the New India Assurance
Company, The Oriental Insurance Corporation and United Insurance Company Ltd.
EVOLUTION:
UTI was established in 1964 by an Act of Parliament; neither did the Government of India
own it nor contributes any capital. The RBI was asked to contribute one-half of its initial
capital of Rs 5 crore, and given the mandate of running the UTI in the interest of the unit-
holders. The State Bank of India and the Life Insurance Corporation contributed 15 per cent
of the capital each, and the rest was contributed by scheduled commercial banks which were
not nationalized then. This kind of structure for a unit trust is not found anywhere else in the
world. Again, unlike other unit trusts and mutual funds, the UTI was not created to earn
profits.
In the course of nearly four decades of its existence, it (the UTI) has succeeded phenomenally
in achieving its objective and has the largest share anywhere in the world of the domestic
mutual fund industry. '' The emergence of a "foreign expert" during the setting up of the UTI
makes an interesting story. The announcement by the then Finance Minister that the
Government of India was contemplating the establishment of a unit trust caught the eye of
Mr. George Woods, the then President of the World Bank. Mr. Woods took a great deal of
interest in the Indian financial system, as he was one of the principal architects of the AXIS,
in which his bank, First Boston Corporation Bank, had a sizeable shareholding. Mr. Woods
offered, through Mr. B.K. Nehru, who was India's Executive Director on the World Bank, the
services of an expert. The Centre jumped at the offer, and asked the RBI to hold up the
finalization of the unit trust
Proposals till the expert visited India. The only point Mr. Sullivan made was that the
provision to limit the ownership of units to individuals might result in unnecessarily
restricting the market for units. While making this point, he had in mind the practice in the
US, where small pension funds are an important class of customers for the unit trusts. The
Centre accepted the foreign expert's suggestion, and the necessary amendments were made in
the draft Bill. Thus, began corporate investment in the UTI, which received a boost from the
tax concession given by the government in the 1990-91 Budget. According to this
concession, the dividends received by a company from investments in other companies,
including the UTI, were completely exempt from corporate income tax, and provided the
dividends declared by the investing company were higher than the dividends received.

The result was a phenomenal increase in corporate investment which accounted for 57 per
cent of the total capital under US-64 scheme. Because of high liquidity the corporate sector
used the UTI to park its liquid funds. This added to the volatility of the UTI funds. The
corporate lobby which perhaps subtly opposed the establishment of the UTI in the public
sector made use of it for its own benefits later. The Government-RBI power game started
with the finalization of the UTI charter itself. The RBI draft of the UTI charter stipulated that
the Chairman will be nominated by it, and one more nominee would be on the Board of
Trustees. While finalizing the draft Bill, the Centre changed this stipulation. The Chairman
was to be nominated by the Government, albeit in Consultation with RBI. Although the
appointment was to be made in consultation with the Reserve Bank, the Government could
appoint a person of its choice as Chairman even if the Bank did not approve of him.Later on
in 2002 the UTI was renamed to Axis Bank.
 CHAPTER-V

CHAPTERIZATION

CHAPTERIZATION
CHAPTER-1
INTRODUCTION
CHAPTER-2
REVIEW OF LITERATURE
CHAPTER-3
RESEARCH METHODOLOGY
 NEED OF THE STUDY
 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 DATA COLLECTION
 LIMITATIONS
 STATISTICAL TOOLS
CHAPTER-4
INDUSTRY/COMPANY PROFILE
CHAPTER-5
DATA ANALYSIS
CHAPTER-6
FINDINGS
CHAPTER-7
SUGGESTION & CONCLUSION
BIBLIOGRAPHY
ANNEXURES