SUMMER TRAINING PROJECT REPORT

ON
A Study On Trading System and Investors
A project report submitted in partial fulfilment of
the requirements of
Masters of Business Administration
By

Chaitanya Patel
(Y21282014)
M.B.A. 3rd Sem.

Under the guidance of

Dr. Shree Bhagwat
(Head Of the Department)

DEPARTMENT OF BUSINESS MANAGEMENT

DR. HARISINGH GOUR VISHWAVIDYALAYA
(A CENTRAL UNIVERSITY) SAGAR (M.P)
PREFACE

I am pleased to present the project report on “A Study on Trading System and

Investors” before my respected reader. It is a humble attempt from my part to
study about the Arihant Capital. This study deals with the number of topics such
as introduction, organization profile & the process of recruitment and selection.
Language of the report is simple and lucid. Attempt have been made to arrange
the subject matter in a systematic and well-knit style. Efforts have also been
made to deal with all topics precisely and gently.

Chaitanya Patel
MBA 3rd Semester
(Y21282014)
DECLARATION

I Chaitanya Patel, student of 3rd Semester, master’s in business administration

(MBA) high by declare that the project work on “A Study on Trading System
and Investors” is my own work & has been carried out under the supervision of
DR. Shree Bhagwat (Head Of Department) of DR. HARISINGH GOUR
CENTRAL UNIVERSITY, SAGAR.
This project has not been previously submitted to any other university for my
examination.

Place: Sagar Signature

Date:
CERTIFICATE OF INTERNSHIP
CERTIFICATE

The project report titled “A Study On Trading System and Investors” prepared
by chaitanya Patel (Y21282014) under the guidance of Shree Bhagwat (Head
Of Department), Department of Business Administration, Dr Harisingh Gour
Central University, Sagar (M.P.). For the partial fulfilment of the Degree of
Master of Business Administration is satisfactory.

Signature of supervisor Signature of examiner

ACKNOWLEDGEMENT

“Gratitude is the hardest emotion to express and often does not find adequate
ways to convey the entire one feels.”
I am heartily thankful to all the persons who spared their valuable time and
helped me a lot in preparation of this project report. There are many people
behind making of this report, without their help and guidance, this report would
never be made possible.
I am extremely thankful and pay my gratitude to my faculty Shree Bhagwat
(Head Of Department) for her valuable guidance and support on completion of
this project.
I extended my gratitude to Dr Hari Singh Gour University, Sagar (M.P.) for
giving me this opportunity.
Finally, I am very much thankful to my parents and my friends for their support
and valuable help.

Thanking you
Chaitanya Patel
(Y21282014)
 TABLE OF CONTENT

Sr. no. Title

1. Introduction
2 Historical Background of Stock Exchanges
3 Literature review
4 The Company Background
5 About The Topic
6 Objectives
7 Research Design
8 Justification of the project
9 Data Analysis And Interpretation
10 Findings
11 Conclusion
12 Reference
INTRODUCTION

A Stock Exchange is the single most important institution in the secondary market for
providing a platform to the investors for buying and selling of securities through its member.
It is a place where already issued securities of companies are bought and sold by investors.
Stock Exchanges are an organized marketplace, either corporation or mutual organization,
where members of the organization gather to trade company stocks or other securities. The
members may act either as agents for their customers, or as principals for their own accounts.
It also facilitates for the issue and redemption of securities and other financial instruments
including the payment of income and dividends. Traditionally a stock exchange is an
association of its members or stock brokers, formed for the purpose of facilitating the buying
and selling of securities by the public and institutions at large and regulating its day-to-day
operations. Of late however, stock exchanges in India are operating now with due recognition
from Security and Exchange Board of India (SEBI)/ the Government of India under the
securities contracts (Regulation) Act, 1956. There are 24 recognized stock exchanges in
India, out of which one has not commenced its operations. Out of the 23 remaining stock
exchanges, the trading volumes are recorded. Most of the regional stock exchanges have
formed subsidiary companies and obtained membership of Bombay Stock Exchanges (BSE),
or A NATIONAL STOCK EXCHANGE (NSE) or both. Members of these stock exchanges
are now working as sub brokers of BSE / NSE brokers.

Mostly, a stock exchange in India works independently as no ‘market makers’ or ‘specialists’

are present in them. The entire process of trading in stock exchange in India is order-driven
and is conducted over an electronic limit order book. In such a set-up, orders are
automatically matched with the help of the trading computer. It functions to match investors’
market orders with the most suitable limit orders. The major benefit of such an order-driven
market is that it facilitates transparency in transactions by displaying all market orders
publicly. Brokers play a vital role in the trading system of the stock exchange market, as all
orders are placed through them. Both institutional investors and retail customers can avail the
benefits associated with direct market access or DMA. By using the trading terminals
provided by stock exchange market brokers, investors can place their orders directly into the
trading system.

 Securities listed on the stock exchange(s) have following advantages: -

o The stock exchange(s) provides a fair market place
o It exchanges liquidity
o There is continuous reporting of their prices
o Full information is available on the companies
 o Rights of investors are protected

Historical Background of Stock Exchanges

The first stock exchange was established in London in the year 1773. just after establishment
of London stock exchange various countries like France, Germany and USA also established
their own stock exchange markets. In India, the first exchange established in Bombay in the
year 1875. later, in year 1908, Calcutta stock exchange was established which was recognized
in the company in 1923. mean which in 1920 the madras stock exchange limited in 1973. So
far the government of India has recognized 22 stock exchange, which was located at major
business centres in different parts of country. Till the mid-fifties the stock exchange was
governed by their own bye laws and regulations with very little interface by the government.
In the year 1925, the government of Bombay promulgated an act ―securities contracts and
control act, 1625 for regulation and the stock exchange. During the world was second trading
outside the stock exchange flourished with adverse effect on investor‘s confidence due to
base – less issues and higher rate of liquidation of companies. In 1956, the centre government
passed contracts (regulation) act 1956, which came into force through-out the country on 20th
Feb. 1957. Earliest records of securities trading in India are available from the end of the
eighteenth century. Before 1850, there was business conducted in Mumbai in shares of the
East India Company, which were considered as securities for buying, selling\ & exchange.
The shares of the Commercial Banks, mercantile bank & the Bank of Bombay were some of
the prominent shares traded. In 1850, the Companies Act was passed & that heralded the
commencement of the joint stock companies in India. It was the American civil war that
helped Indian to establish broking business. The leading broker, Shri Premchand Roy Chand
designed & developed the procedure to be followed while dealing in shares. In 1874, the
Dalal Street became the permanent place for meeting the brokers to conduct their business.
The brokers organized an association on 9th July 1875 known as ―Native share 7 stock
Brokers Association‖ to protect the stock & interest of the native brokers. That was the
foundation of the Stock Exchange, Mumbai. The Exchange was established with 318
members. The Stock Exchange, Mumbai did not have to look back as it started riding high in
the ladder of growth. In January 1899, Mr. James M.Maclen, M.P inaugurated the Brokers
hall. After the 1st World War, the stock exchange was housed properly at an old building
near the Town Hall. In 1928 the present premises were acquired surrounded by Dalal Street,
Bombay Samacher Marg and Hamman Street. At new building the present location was
constructed and was occupied on 1st December 1930.

STOCK BROKERS

SEBI registered stock - brokers interested in providing Internet based trading services will be
required to apply to the respective stock exchange for a formal permission. The stock
exchange should grant approval or reject the application as the case may be, and
communicate its decision to the member within thirty calendar days of the date of completed
application submitted to the exchange. The Exchange closely monitors outstanding position
of top buying memberbrokers and top selling member-brokers on a daily basis. For this
purpose, it has developed various market monitoring reports based on certain pre-set
parameters. These reports are scrutinized by officials of the Surveillance Dept. to ascertain
whether a member-broker has built up excessive purchase or sale position compared to his
normal level of business. Further, it is examined whether purchases or sales are concentrated
in one or more scrips, whether the margin cover is adequate, whether transactions have been
entered into on behalf of institutional clients and even the quality of scrips, i.e., liquid or
illiquid is looked into in order to assess the quality of exposure. The Exchange also
scrutinizes the pay-in position of the member-brokers and the member-brokers having larger
funds pay-in positions are at times, at the discretion of the Exchange, required to make
advance pay-in on T+1 day instead of on T+2 day.

BASIC REQUIREMENTS FOR STOCK BROKERS

Trading will be on existing stock exchanges through order routing system for execution of
trades. Therefore, stockbrokers are to comply with the following before the start of trade on
Internet.
1. The broker must have a net worth of Rs. 50 lakhs if he wants to avail the facility of
Internet for his own.
2. Provision for maintenance of adequate back-up system.
3. The software system to be used by him should be secured and reliable. 4. To employ
the qualified staff for this purpose.
4. To send order/trade confirmation to the client also through e-mail.
5. The contract notes must be issued to the clients as per existing regulation within 24
hours of the execution of trades.
6. The broker and his client should use authentication technologies.
The above are some of the important pre-requisites for the stockbroker should intend to take
benefits of trading on Internet. However, detailed guidelines issued by the SEBI for the stock
exchange.

KIND OF STOCK BROKERS

1. Commission Broker
Near about all the brokers buy and sell securities for earning a commission for investor
point of view he is the most important person and responsibility is to buy and sell
stoke for his customer. It means that he acts as an agent of investor and earns
commission for his services rendered. The broker is also an independent dealer in
 securities. He purchases and sell securities in his own name but he is not allowed to
deal with non-member.

2. Jobber
He is a professional speculator who works for a profit called ‗turn ‘he makes a
continuous auction in the market in the stoke in which he specialized. He trades in the
market evens for small difference in the prices and helps to maintain liquidity in the
stoke exchange.

3. Floor Broker
The floor broker buys and sell shares for the other broker on the floor of the exchange.
He is an individual member owns his seat and receives his own commission on the
orders he execute. He helps other brokers when they are buying and as compensation
receives a portion the broker.
4. Odd lot dealer

For trading in stock exchange there a certain number of share a fixed to be transacted
in a lot, this is known as round let which is usually a, 100 share a. Anything less than
the round lot are add lot. If a person is in possession of add lot of shares i.e., 10, 20,
30, 40 etc. They he will has to look for the add lot dealer.

5. Budliwala
He is the person who finance or provide credit facilities to the market for this service
he charges a fee called contango or backwardation charges. The budliwala gives a fully
secured loan for period of 2 to 3 weeks.

6. Arbitrageur
A person who is specialist in dealing with securities in different stoke exchange
centres at the same time. He makes a profit by the difference in the piece prevailing in
different centres of the market activity. For example the rte. of a certain scrip is higher
in some stoke exchange than other on. In this case the broker will buy the scrip from
the marked lower price and will sell the scrip in the market at higher price. The profit
of the arbitrageur depends on the ability to get the prices from different centres before
trading in other stoke exchanges.
Literature review

Rebecca Davies and Stuart Cunningham (2012), in his research paper “A Review of
Online Trading” has said that the literature is related to the functions and contributions
to online trading, discussing them in a cohesive, meta-analytic fashion. To further
increase knowledge in the field, two studies have been undertaken to present a view of
current online trading practices in the United Kingdom (UK). Data was collected by
conducting online questionnaires and performing interviews using the Repertory Grid
technique. This method has its roots in Personal Construct Psychology and allows for
the expression of participants’ perceptions and preferences in their own terms or
personal constructs.

Abdhul Rahim (2013)2, in his research paper “Problems and Prospects of Online Share
Trading Practices in India, International Journal of Marketing, Financial Services and
Management Research”, Abdhul Rahim has explained about SEBI and NSE, Where
NSE have trade securities online as per the regulation of SEBI. He also added the
benefits of the investing in equities or an equity oriented mutual funds for a longer
period in his study.

Petric Loana Ancuta (2015)3, in his research paper “Benefits and Drawbacks Of
Online Trading”, has Explained that the investment and financial services companies
should guide their marketing campaign to attract more investors for online platforms
by studying other factors that influence the decision to move from traditional to online
trading. He also says that the investors will switch to online trading when they have a
high level of knowledge in the stock market, and higher education and knowledge of
internet.

Dr. Sarika Srivastava (2016), in his article “Impact of Internet Growth on the Online
Stock Trading in India” has mention that because of the internet, customers are more
aware about the financial products and services and eliminated geographical barriers.
The primary objective of this research paper is to analyze the impact of internet growth
on the stock market transactions. The paper also discusses the current state of internet
trading in India and particularly the scope of online trading market available in India.

Professor Aadil Bade (2017)4, The Department of Commerce, “Analysis- Demat

account and online trading”, in this article, which was published in the Scholarly
Research Journal for Interdisciplinary studies, Professor Aadil Bade has analyzed
about Dem at account and online trading. He said that in India, Online trading is still at
its infancy stage.
The Company Background

A listed public corporation, Arihant Capital Markets Limited was established on June 25, 1992. It is
based in Indore, Madhya Pradesh, and is categorised as a public limited corporation. Its entire paid-
up capital is INR 10.41 billion, and its authorised share capital is INR 12.50 billion.

For the fiscal year that ends on March 31, 2019, Arihant Capital Markets Limited expects operating
revenues ranging from INR 1 billion to 100 billion. EBITDA has dropped by - 21.16% compared to the
prior year. Its book net value has also improved by 15.88% over this time. Additional performance
and liquidity measures.

Arihant Capital Markets Limited was founded in Central India as a small stock brokerage firm and is
now one of the country's top providers of financial services. We offer a wide range of goods and
services, such as securities, commodities, foreign exchange, financial planning, depository services,
PCG (priority client group) services, merchant banking, and investment banking services, to a sizable
and varied clientele that consists of private individuals, businesses, and financial institutions.

Through its 800+ investment centres located throughout 185+ Indian cities, Arihant Capital offers
trading and investing services to over 1.45 lac customers. Customers choose Arihant because of its
comprehensive array of financial services and because they know we always have their best
interests in mind. (As of the 31st of March 2019)

We want to help our clients become wealthy by providing wise financial counsel and effective
investment methods. With integrity and commitment, we want to assist our clients in achieving their
financial objectives.

The promoters and managing team

Ashok Kumar Jain

Mr. Ashok Jain is a certified chartered accountant and holds a master's degree in commerce.
He is Arihant Capital Markets Ltd.'s chairman, chief founder, and promoter. Mr. Jain has
more than 40 years of extensive expertise in the financial and capital markets industries.
- Chairman & Managing Director
- Member of Stakeholders relationship Committee
- Chairman of Corporate Social Responsibility Committee.

Managing team
SUNIL KUMAR JAIN
Mr. Jain, a 50-year-old M.Com. with more than two decades of wealth expertise in the capital
market, has been crucial to the development of the business. He is a well-known value
investor who maintains his own portfolio and is known for his stock selection techniques in
the business.

Non-executive Member, Non-Executive Member of the Nomination and Remuneration

Committee, Non-Executive Member of the Stakeholders Relationship Committee, Non-
Executive Member of the Corporate Social Responsibility.

ANITA SURENDRA GANDHI

(Whole Time Director)

Over 32 years of expertise in the field of finance, including corporate finance, primary market
research, and secondary market research, belong to Mrs. Gandhi, a 58-year-old B.Com, ACA,
and CMA. She was extensively involved in the firm's financial operations during her five
years with Pidilite Industries Ltd., including working capital agreements, term loan
syndication, commercial paper placements, company credit ratings, and public company
offerings. When the Indian capital markets began to open up, she entered the market and
joined JM Share & Stockbrokers Ltd in the primary markets sector. When the National Stock
Exchange of India launched, she was in charge of setting up the company's Institutional Desk
for NSE, which she accomplished effectively.

AKHILESH RATHI

Chairman of Audit Committee

53-year-old Mr. Rathi, an MBA, has more than 25 years of extensive and varied expertise in
the financial, trading, textile, real estate, and service industries. Mr. Rathi now holds board
positions with a number of organisations, including Savitt Universal Ltd., New City of
Bombay Manufacturing Mills Ltd., and Bhaskar Infrastructure Ltd., all of which are members
of the Dainik Bhaskar Group. Currently, Mr. Rathi is a board member. He serves as a trustee
for numerous social and religious foundations in addition to belonging to many trade groups.
Since he joined the board of directors in 1994, Mr. Rathi has been integral to the company's
growth and strategic planning.

Mr. Ramesh Bhai Shah,

The 49-year-old group chairman of the E-Global group of enterprises holds a B.E.
(Mechanical) degree. eGlobaL is a manufacturer and innovator of industrial weighing, MHE
equipment, industrial automation, and software under the well-known names Endel and
Endeavour. He has been instrumental in creating short- and long-term strategic growth plans,
budgets, and branding initiatives for all group firms' ongoing operational development. They
operate out of many places in East Africa, the Middle East, and India.
The titles used by the corporation are Non-Executive Independent Director, Member of the
Audit Committee, Member of the Nomination and Remuneration Committee, and Member of
the Stakeholders Relationship Committee.

Mr. Ashish Maheshwari

With over 20 years of expertise in stock brokerage and management consulting, Mr. Ashish
Maheshwari, a 46-year-old MBA finance graduate, is qualified. He provides guidance to
important companies on how to change their investing strategy. He is a well-known
personality on television platforms including CNBC, ET Now, Zee Business, and others. He
is a master at carrying out fundamental analysis, identifying undervalued businesses, and
grasping the stock market.
Business Designation: Non-executive, independent board members who also serve on the
Corporate social responsibility, nomination, and pay committees.

LOCAL, NATIONAL & GLOBAL PRESENCE

Local Presence

Although the company was initially from Indore, Madhya Pradesh, it was incorporated in
Mumbai. Its headquarters are in Indore, and it has the following local branches:

6, Laad Colony Road, Indore, Arihant Capital Markets Ltd.

In Indore, at 601 Atlantis Tower, Plot No. 13-A, Arihant Capital Markets Ltd.
301-A&B, 3rd Floor, Silver Sanchora, R.N.T. Marg, Indore: Arihant Capital Markets Ltd.
Behind Dmart, 355-B, Indore, Arihant Capital Market Ltd.
Arihant Capital Markets Limited, 10/1 New Palais, Bakhatgarh
Tower, 105-106, Indore

National Presence

A well-known name in the stock brokerage and investing industries is Arihant Capital
Markets Ltd. It has established roots not just in Indore but all over the country. The company
has worked hard and done all the necessary steps to become what it is today. Arihant Capital
Markets Ltd. is well-known both locally and nationally; expanding internationally is the
organization's next objective. However, the company currently operates PAN India.

Numerous states, including Maharashtra, Gujarat, West Bengal, Madhya Pradesh, Rajasthan,
and many others, have Arihant Capital branches. The main benefit of a branch locator is that
it makes it easier to search for an Arihant Capital Office by state in India.

One of the many choices based on state, city, pincode, etc. is the Arihant Capital Branch in
India. It excels at this and does a fantastic job. Assam often has the fewest branches, whereas
Madhya Pradesh typically has the most.

Global Presence
The company does not currently have any operations abroad, but it does have a number of
investment and trading ambitions for FDIs and NRIs.

State No. of Branches State No. of Branches

Maharashtra 11 Haryana 13
West Bengal 5 Telangana 4
Uttar Pradesh 5 Kerala 0
Delhi 4 Punjab 5
Karnataka 6 Bihar 4
Tamil Nadu 9 Orissa 0
Madhya Pradesh 177 Jharkhand 2
Andhra Pradesh 11 Chhattisgarh 7
Rajasthan 32 Uttarakhand 0
Gujarat 12 Assam 1

Key business of company

Broking: - Arihant is one of the leading providers of broking services to individuals and
institutions in the equity, derivatives and commodities segment in India. We proactively
deliver the full depth and breadth of our broking services to clients through a network of
more than 300 branches and franchises across India.
Excellent research support, state-of-the-art tools, smart risk management, capital
requirements, excellent order routing and efficient operational practices are key components
of our offerings. We provide superior pre- and post-trading services to clients through robust
technical architecture.
Distribution: - With the objective of meeting all the investment needs of our clients, we
provide distribution services of mutual funds and IPOs. We are an AMFI registered mutual
fund distributor and are also registered with all the AMCs in India to sell the schemes offered
by them. Our distribution network is backed by in-depth & comprehensive research and a
strong team for marketing and sales support.
We have a dedicated team exclusively for research on mutual funds and IPO. We provide
monthly publications on mutual fund activity and fund recommendations and also furnish
reports on New Fund Offers (NFO) and forthcoming IPOs‘recommendations. Our
recommendations are objective and unbiased. For us, the client ‘s growth is the top priority.
Depository: - Our Depository business helps us in providing integrated financial solutions to
our clients. It is led by a team of professionals and the latest technological expertise,
dedicated exclusively for the depository services.
This creates a seamless transaction platform for clients – to execute trades through Arihant
capital market Business and settle them through Arihant Depository Services.
12
Wealth management: - Our wealth management business provides tailored, impartial and
regulated financial planning advice on life, retirement and investment products. Our services
to high-net-worth individuals and corporate clients include: ✓ Asset management ✓ Stock
broking ✓ Wealth structuring ✓ Financial planning.

Our Disciplined investment processes

Arihant has a philosophy of investing in quality businesses with a strong management at
reasonable prices. We follow both a bottom-up approach and top-down approach to investing
with an intensive research process for screening potential investments

Research

Our research team supplements our broking, wealth management and distribution business.
Our research team comprises expert investment professionals for fundamental and technical
research covering equity, derivatives, mutual funds and IPOs. We draw upon our experience
and depth of resources, to provide the financial and strategic advice necessary for successful
asset management.
From day one, our focus has been to offer investors a platform to make informed investment
decisions based on thorough research and discipline. We have therefore established a
research team to offer complete support and the right guidance to our clients. Our research is
used only for our personal and institutional clients.
Our research extends into every corner of our equities business, supplying invaluable
analysis, information, and advice to our clients. We employ a disciplined and rigorous
research process. Starting with a top-down analysis, we look closely at the megatrends and
industry drivers that create opportunities for innovative companies. We identify and affiliate
ourselves with the fastest growing and fundamentally strong companies and provide our
investors with the best investment opportunities.
Merchant banking and investment banking
We deliver high-quality strategic advice and creative financing solutions to corporate with the
help of qualified professionals who have a combined experience of over 50 years in
investment banking, corporate advisory and corporate finance.

The primary activities of Merchant Banking Business are:

 Capital Market Services
 Corporate Finance
 Strategic Services
The comprehensive experience and knowledge of our team enables us to offer a host of
financial services covering capital raising, mergers and acquisitions, advisory, debt
syndication, qualified institutional placements, private placements, financial restructuring
among others

ABOUT THE TOPIC

Online Trading Systems

Online Trading Systems, was started to help you find the right trading system to make money
in the market. We offer all different types of trading systems, from Futures Trading, Forex
Trading, Stock Trading to Options Trading. Our Trading systems include day trading, swing
trading and longer-term trading systems. Online Trading Systems will continue to test and
list various trading systems on our website. All Trading systems including Futures, Forex,
Stocks and Options should be tested and verified before you use real money. Some trading
systems will post actual accounts on their websites or newsletters. We still recommend you
paper trade their trading system before using real money.

Online Trading in India

You can place trade orders or cancel orders at your will from the comforts of your home. It
allows you to make your own decision with regards to trading without any interference of the
broker. You can buy shares or invest in IPO or buy mutual funds as well.
Online trading can be done by simply opening a demat and trading account with any SEBI
registered broker. Account opening can be done in a matter of 15 minutes. The documents
required to open an account are PAN card, address proof, AADHAAR card, mobile number
linked to AADHAAR, bank statement, cancelled cheque leaf and passport photograph.
Documents issued by trading member/broker:

Contract note:
The trading member or the broker has to issue contract note within 24 hrs of the execution of
trade. Digital contract notes are issued these days. You have to check the contract notes
regularly and any discrepancy has to be taken up with the broker immediately. The broker
also issues a quarterly statement of funds in digital format.

Products and services of the Online trading in India:

The major financial products and services of the Online trading in India are like equities,
mutual funds, life insurance, general insurance, loans, share trading, commodities trading,
portfolio management and financial planning.

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.

Types of Trading
Primarily, there are five types of share trading. These are –
Day Trading:
This form of trade involves purchasing and selling stocks in a single day. In the case of day
trading, individuals hold stocks for a few minutes or hours. A trader involved in such trade
needs to close his/her transactions prior to the day’s market closure. It is popular for
capitalizing on small-scale fluctuations in NAV of stocks.
Day trading requires proficiency in market matters, a thorough understanding of market
volatility, and keen sense regarding the up and down in stock values. Therefore, it is
performed mostly by experienced investors or traders.
Scalping: It is also known as micro-trading. Scalping and day-trading are both subsets of
intraday trading. Scalping involves reaping small profits repeatedly ranging from a dozen to a
hundred profits in a single market day. 16 However, every transaction does not
yield profits, and in some cases a trader’s gross losses might exceed the gains. The holding
period of securities, in this case, is shorter compared to day-trading, i.e. individuals hold
stocks spanning a maximum of a few minutes.
This feature allows for the frequency of transactions. Similar to day-trading, scalping requires
market experience, proficiency, awareness of market fluctuations, and prompt transactions.
Swing Trading:
This style of stock market trading is used to capitalize on the short-term stock trends and
patterns. Swing trading is used to earn gains from stock within a few days of purchasing it;
ideally one to seven days. Traders technically analyse the stocks to gauge the movement
patterns they are following for proper execution of their investment objectives.
Momentum Trading:
In case of momentum trading, a trader exploits a stock’s momentum, i.e. a substantial value
movement of stock, either upwards or downwards. A trader tries to capitalise on such
momentum by identifying the stocks that are either breaking out or will break out.In case of
upward momentum, the trader sells the stocks he/she is holding, thus yielding higher than
average returns. In case of downward movement, the trader purchases a considerable volume
of stocks to sell when its price increases.
Trading Procedure on a Stock Exchange:
The Trading procedure involves the following steps:
1. Selection of a broker:
The buying and selling of securities can only be done through SEBI registered brokers who
are members of the Stock Exchange. The broker can be an individual, partnership firms or
corporate bodies. So the first step is to select a broker who will buy/sell securities on behalf
of the investor or speculator.

2. Opening Demat Account with Depository:

Demat (Dematerialized) account refer to an account which an Indian citizen must open with
the depository participant (banks or stock brokers) to trade in listed securities in electronic
form. Second step in trading procedure is to open a Demat account.
The securities are held in the electronic form by a depository. Depository is an institution or
an organization which holds securities (e.g. Shares, Debentures, Bonds, Mutual (Funds, etc.)
At present in India there are two depositories: NSDL (National Securities Depository Ltd.)
and CDSL (Central Depository Services Ltd.) There is no direct contact between depository
and investor. Depository interacts with investors through depository participants only.
Depository participant will maintain securities account balances of investor and intimate
investor about the status of their holdings from time to time.
 3. Placing the Order:
After opening the Demat Account, the investor can place the order. The order can be placed
to the broker either (DP) personally or through phone, email, etc.
Investor must place the order very clearly specifying the range of price at which securities
can be bought or sold. e.g. “Buy 100 equity shares of Reliance for not more than Rs 500 per
share.”

4. Executing the Order:

As per the Instructions of the investor, the broker executes the order i.e. he buys or sells the
securities. Broker prepares a contract note for the order executed. The contract note contains
the name and the price of securities, name of parties and brokerage (commission) charged by
him. Contract note is signed by the broker.
5. Settlement:
This means actual transfer of securities. This is the last stage in the trading of securities done
by the broker on behalf of their clients. There can be two types of settlement.
(a) On the spot settlement
It means settlement is done immediately and on spot settlement follows. T + 2 rolling
settlement. This means any trade taking place on Monday gets settled by Wednesday.
(b) Forward settlement
It means settlement will take place on some future date. It can be T + 5 or T + 7, etc. All
trading in stock exchanges takes place between 9.55 am and 3.30 pm. Monday to Friday.

OBJECTIVES OF THE STUDY

(a) To have an idea about the various Trading System Of Stock Exchange.
(b) To gather some knowledge about the Trading System.
(c) To understand the Trading System in a better way.
(d) To understand the trends of trade in the stock market in the last few years.
(e) To get the detail information about the company and to analysis the learning in past
six weeks at Arihant capital market.
(f) To gain the knowledge about the market conditions.
(g) How to handle the various questions raised by them and how to deal with them.
RESEARCH DESIGN
For any researcher the research methodology is the most important criteria to decide before
the actual research process starts. There are many methods for conducting the research some
of them are as under:
The design of a research is a plan or a model that helps researcher to conduct a formal
investigation and survey. It is an application of methods and procedures for acquiring the
information needs for getting a desire out come. It decides the sources of data and methods
for gathering data. A good design insures that the information obtained is relevant to the
research question and that it was collected by objectives. Since, research design is simply the
frame work or plan for a study. It is a blue print that of a house devised by an architect. My
approach to research is descriptive and quite specific.
Out of various research methods the research method, which was most suitable to my
research, was Exploratory Research because it provides me all the opportunities to cover the
all the aspect that I require to conduct the research and get an appropriate out come.
Types of Data Collection
There are two types of data used. They are primary and secondary data. Primary data is
defined as data that is collected from original sources for a specific purpose. Secondary data
is data collected from indirect sources.
Primary Sources
These include the survey or questionnaire method as well as the personal interview methods
of data collection.
Secondary Sources
These include books, the internet, company brochures, product brochures, the company
website, competitor‘s websites etc, newspaper articles etc.

Data collection instrument was structured schedule.

Contact methods: Schedule reservation filled with data by
asking questions from respondents.
Sampling universe: share market investors of Indore city
Sample size: 50

Justification of the project: -

Company wants to know about the age and occupation of investors, to know whether
investors are aware about the instruments of the share market or not and are investing in
which type of instrument and also the frequency of the investment.
DATA ANALYSIS AND INTERPREATATION
Table 1.0: Demographic Profile of investors

Demographics No. of respondents Percentage of respondents

Age
Less than 20 years 0 0

20-40 20 40
Greater than 40 30 60

Total 50 Total 100

Qualification
Matric 0 0

Under Graduate 25 50

Post Graduate 25 50

Total 50 Total 100

Occupation
Service 19 38

Profession 6 12

Business 15 30

Student 10 20

Total 50 Total 100

Income (per month)

Less than Rs.20000 10 20
Rs.20000-40000 25 50
Greater than 40000 15 30

Total 100 Total 100

Analysis & Interpretation:

It was found that the major population of investors was greater than 40yrs and 60% was of
20-40 yrs. And 50% respondents were under graduate and 50% were post graduate. 35% of
respondents were doing service. And majority of respondents i.e. 50% earn income between
Rs.20000-40000 per month. It means majority of investors was greater than 40 years having
income in between Rs 20000-40000.

Statement 1. To know whether respondents invest.

Table no. 1.1 To know whether respondents invest

No. of respondent Percentage of respondent

Yes 45 90%

N0 05 10%

Total 50 100%
 Sales

Yes No

Analysis & Interpretation:

From the survey it was found that 90% respondents invest in the stock market and 10% who
were non-investors

Statement 2. Awareness regarding types of Investment Instruments

Table No. 1.2 Type of investment option the person is aware of

Type of investment No. of respondent Percentage of respondent
instruments

Shares 15 30%
Debentures 5 10%
Mutual funds 23 46%
Bonds 5 10%
Derivatives 2 4%
Total 50 100%
 Percentage of respondent

4%
10%

30%

10%
46%

Shares Debentures Mutual funds Bonds Derivatives

Analysis & Interpretation

Above pie-chart shows that 46% investors were aware of the mutual fund, 30% investors
were aware of shares, 10% investors were aware of debentures, 10% investors were bonds. It
means majority of persons aware about mutual fund whereas shares and debentures were of
second importance.

Statement 3. To know the type of investment option the person has been
investing

Table No.1.3 Type of investment option the person has been investing
investment alternative No. of respondent Percentage of respondent

Shares 15 30%
Mutual funds 15 30%
Debentures 10 20%
Bonds 5 10%
Derivatives 5 10%
Total 50 100%
 Percentage of respondent

10%

10% 30%

20%

30%

Shares Mutual funds Debentures Bonds Derivatives

Analysis & Interpretation:

From the survey it was found that 30% respondents invest in Mutual funds, 30% invest in
Shares and 20% invest in Debentures. Thus, it can be stated that maximum people invest in
Mutual Funds and shares whereas Debenture are having 2nd importance.

Statement 4. To know the rates at which the investment grow

Table No.1.4 The rates at which the investment grown

Investment growth rate No. of respondent Percentage of respondent

Steadily 0 0%

At an average rate 05 10%

At fast rate 45 90%

Total 50 100%
 Percentage of respondent

10%

90%

Steadily At an average rate At fast rate

Analysis & Interpretation:

From the survey it was found that 90% respondents want their investment grow at fast rate
whereas only 10% respondents were in the favour of investment growth at average rate.

Statement 5. To know the frequency of investment by the Respondents.

Table No. 1.5 Frequency of investment

Frequency of investment No. of respondent Percentage of respondent
Daily 0 0%
Weekly 10 20%
Monthly 24 48%
Yearly 16 32%
50 100%
 Percentage of respondent

20%

32%

48%

Daily Weekly Monthly Yearly

Analysis & Interpretation:

From the above table & chart it was found that 24 respondents invest monthly, 16 invest
yearly and there were 10 respondents who invest weekly. Thus, it can be stated that majority
of the investors invest monthly in stock market.

Statement 6: To know the investors investing decision influenced by

Table No. 1.6 Frequency of investment

Investor influenced by No. of respondent Percentage of respondent

Friends and relatives 15 30%
Own decision 20 40%
News and advertisements 05 10%
Market study 10 20%
 50 100%

Percentage of respondent

20%
30%

10%

40%

Friends and relatives Own decision News and advertisements Market study

Analysis & Interpretation:

The investment decision of investors is influenced mostly by their own decision with 40%
and followed by friends & relatives.

Statement 7: To know the factors which investors consider during

investment
Table No. 1.7 Frequency of investment
Factors No. of respondent Percentage of respondent
Return 25 50%
Risk 10 20%
Capital appreciation 05 10%
Tax benefits 10 20%
 50 100%

Percentage of respondent

20%

10% 50%

20%

Return Risk Capital appreciation Tax benefits

Analysis & Interpretation:

Different factors considered by investors while investing are return, risk, tax benefits, capital
appreciation and the most prominent factor is the return on any investment avenue with 50%.

Statement 8: To know the percentage of salary an investor invest

Table No. 1.6 Frequency of investment
Percentage of salary No. of respondent Percentage of respondent
05%-10% 10 20%
10%-20% 30 60%
20%-30% 07 14%
30%-40% 03 6%
 50 100%

Percentage of respondent
6%

20%
14%

60%

05%-10% 10%-20% 20%-30% 30%-40%

Analysis & Interpretation:

Majority of investors invest 10-20% of their annual income. Followed by 5%-10%

CORPORATE RESOURCE CENTRE

Summer Internship 2022: Weekly Progress Report
Enrolment No. – Y21282014
Program: MBA finance NAME: Chaitanya Patel
Company Name : Arihant Capital
Industry Guide’s Name : Anirudh Sharma
Project Title : Treading System
Targets for the week: - Case study 1 : Lehman Brothers Crisis, Satyam scam and Ketan ,
Parikh
Case study 2 : Last 10 years data analysis of Repo rate, Reverse repo,
Rate , CLR, SLR.
Case study 3 : Last financial year IPO and their GMP analysis.
Achievements for the week: : Case study 1 completed
: Case study 2 completed
: Case study 3 completed

Days /Time

Wednesday - Expense activity.

- Monthly expenditures plan of individual.

Thursday - Study and training of financial market. Structure of

- Indian financial market.

Friday - Last 10 years data analysis of Repo rate, Reverse repo rate, CLR and
SLR.

CORPORATE RESOURCE CENTRE

Summer Internship 2022: Weekly Progress Report

Enrolment No. – Y21282014

Program: MBA finance NAME: Chaitanya Patel
Company Name : Arihant Capital
Industry Guide’s Name : Anirudh Sharma
Project Title : Treading System
Targets for the week : List of all IPOs of last financial year.
Achievements for the week: IPOs list of last financial year prepared.

Days /Time

Monday - Understanding about Primary Market.

- Types of Issues in stock market (IPO, FPO, OFS, Right issue,
Preferential, etc)

Tuesday - Understanding various methods of fund raising.

- Small classroom activity for raising funds.
- Steps for IPO analysis.

Wednesday - Knowledge about www.chittorgarh.com (IPO website).

- Preparation of business model to understand the concept of
fund raising

Thursday - Methods to determine pricing of public issue.

- Various intermediaries for primary market.
- Categories of investors in stock market.

CORPORATE RESOURCE CENTRE

Summer Internship 2022: Weekly Progress Report

Enrolment No. – Y21282014

Program: MBA finance NAME: Chaitanya Patel
Company Name : Arihant Capital
Industry Guide’s Name : Anirudh Sharma
Project Title : Treading System
Targets for the week : List of all GMP of last financial year.
Achievements for the week: Made GMP list of last financial year.

Future work plans: Portfolio creation on Dalal Street (virtual trading app)

Days /Time
Monday - Analysis of IPO and their GMP (last 10
years).
-

Tuesday - Understanding about secondary market.

Wednesday - Understanding about various national and international share market

Thursday - Understanding different kinds of market barometer

Friday - Who are the participants in trade of stock between Exchange market
and clients.

- Importance of tracking of closing market for another day.

CORPORATE RESOURCE CENTRE

Summer Internship 2022: Weekly Progress Report

Enrolment No. – Y21282014

Program: MBA finance NAME: Chaitanya Patel
Company Name : Arihant Capital
Industry Guide’s Name : Anirudh Sharma
Project Title : Treading System
Targets for the week : List of all GMP of last financial year.
Achievements for the week: Made GMP list of last financial year.
Future work plans: Buying shares through DSJL

Days /Time
Monday - What is portfolio in stock market.
- Steps for building portfolio.

Tuesday - Importance of stock selection for an individual

- Steps for selecting stock.

Wednesday - Discussion about ODIN Software

- Various functions keys of ODIN software.

Thursday - Allocation of shares as per respective market capitalization.

- Types of stock in share market.

Friday - Doubt solving session

CORPORATE RESOURCE CENTRE

Summer Internship 2022: Weekly Progress Report

Enrolment No. – Y21282014

Program: MBA finance NAME: Chaitanya Patel
Company Name : Arihant Capital
Industry Guide’s Name : Anirudh Sharma
Project Title : Treading System
Targets for the week:
Visiting 10 Financial institutions in total for collection of data regarding schemes and plans
for women, children and senior citizen. Also information fetching about various retirement
planning options
Achievements for the week:
Future work plans: As per company’s demand

Days

Monday Day Off

Tuesday Buying shares through DSJL

Wednesday Discussion on individual Portfolio & Off Beat shares

Thursday Discussion on banking task

Friday Day off

CORPORATE RESOURCE CENTRE

Summer Internship 2022: Weekly Progress Report

Enrolment No. – Y21282014

Program: MBA finance NAME: Chaitanya Patel
Company Name : Arihant Capital
Industry Guide’s Name : Anirudh Sharma
Project Title : Treading System
Targets for the week:
Visiting 10 Financial institutions in total for collection of data regarding schemes and plans
for women’s, children and senior citizen. Also, information fetching about various retirement
planning options (Focus on Plans for Children)
Achievements for the week: Project Report -1 on 02-07-2022 Done
Future work plans: As per company’s demand

Days

Monday Day Off

Tuesday Discussion on Project title

Wednesday Trading on DSIJ

Thursday Intraday Trading tips

Friday Intraday Trading on DSIJ

CORPORATE RESOURCE CENTRE

Summer Internship 2022: Weekly Progress Report

Enrolment No. – Y21282014

Program: MBA finance NAME: Chaitanya Patel
Company Name : Arihant Capital
Industry Guide’s Name : Anirudh Sharma
Project Title : Treading System
Targets for the week:
Case study 6- 12th July 2022.
Do a study on open interest and select 5 shares each of long build up, long unwinding, short
build up & short covering.
Achievements for the week: Case study 6- done
Future work plans: As per company’s demand

Days
Monday Future terminologies of derivatives .

Tuesday Concept of open interest and margins.

Wednesday Kavita Mam’s session

Thursday Types of risks & options

Friday Options, interest (call & put)

Saturday Numerical practice on call options.

CORPORATE RESOURCE CENTRE

Summer Internship 2022: Weekly Progress Report

Enrolment No. – Y21282014

Program: MBA finance NAME: Chaitanya Patel
Company Name : Arihant Capital
Industry Guide’s Name : Anirudh Sharma
Project Title : Treading System
Targets for the week:
Research Task 1
Research Task 2
Analysis of top 5 mutual funds of small cap, mid cap and large cap.
Achievements for the week:
Research task 1 & 2 achieved respectively.
Future work plans: As per company’s demand.

Days

Monday Allotment of research task 1 virtually.

Tuesday Day off

Wednesday Day off

Thursday Allotment of research task 2

Friday Day off

Practical Learnings & Outcomes

1. How to put my knowledge and skills into practice - Thanks to my internship, my
understanding of business and finance theories was translated into a variety of useful
tactics and abilities that I can now apply in actual business situations, such as doing
thorough competitor analysis research and creating a finance and communication
plan.

2. Understanding Workplace Culture - As a student from a different country, I learned

that every business and organisation has a distinctive culture that influences
 communication. It's crucial to observe people to comprehend how they interact and
engage with their co-workers or help them with tasks and projects. I quickly learned
that whenever anything is unclear to me or I don't understand it, asking for
clarification is appropriate.

3. Enthusiasm is priceless - During my internship, I saw how crucial it is to be

enthusiastic about learning new things, open to asking for more work, and eager to
research and inquire. This strategy will show how eager you are to assist and how
much you like working in a team. Additionally, curious and enthusiastic individuals
benefit more from their internships, which opens up a variety of opportunities.

4. How crucial effective communication is - Communication is the key to success in the

workplace. I learned that if I have any problems or am unsure how to accomplish an
assignment, it's imperative to contact my manager by phone, email, or SMS. It is
better to ask for help and explanation than to always present the impression that you
understand what needs to be done. However, I also learned that you should Google
everything and anything. It's important to remember that everyone's time is valuable
and to refrain from asking questions that can be answered elsewhere in order to
communicate effectively. An intern's growth, productivity, efficiency, and
engagement depend on effective communication.

5. The advantages of accepting criticism - It's critical to ask for and welcome expert
criticism. Making note of both the positive and negative aspects of your job is
essential if you want to go on and succeed. I found that while receiving or providing
feedback can be difficult, doing so will have a significant positive impact on your life
and career going forward.

FINDINGS OF THE STUDY

Following findings were generated from the study:-

1. Maximum investors are aware of all the investment options.

2. Investors do not invest in a single avenue. They prefer different avenues and
maximum investors prefer to invest in shares, mutual funds & debentures.
 3. Maximum investors wants their investment grow at fast rate.

4. The investment decision of investors is influenced by their own decision and

through friends & relatives.

5. Different factors considered by investors while investing are return, risk, tax
benefits, capital appreciation and the most prominent factor is the return on any
investment avenue.

6. Majority of investors invest 15-20% of their annual income.

7. Maximum investors invest on monthly basis.

8. The investors investing in different avenues are highly satisfied with the return
generated by their investment option.

9. Maximum investors have other investment policies.

10. The most important factor is Return which influenced the decision regarding
investment.

CONCLUSION

Stock exchange is a place where the savers and the users if their funds come together in the
market for finance, and the rules of supply and demand are applicable and also subject to
Government regulation. In the trading, several transfers of funds and securities take place
between various investors. And after this trading, the accounts of all those investors need to
be settled within a specified time limit. SEBI has developed the rules and regulations to
protect the common investors from market failures by fixing margins, capital adequacy of
brokers, limits the turnover, indemnity insurance, on-line position monitoring etc. and most
of the company is doing online trading because it helps them to be up-to-date from Stock
Market.

However, in general, a trading system offered by a financial institution such as Arihant

Capital should be evaluated based on its effectiveness in meeting the needs of traders and its
ability to provide a competitive advantage.
A well-designed trading system should provide clear and actionable signals to traders,
allowing them to make informed decisions based on market trends and data analysis. It
should also be flexible enough to adapt to changing market conditions and incorporate risk
management strategies to help traders minimize potential losses.
Furthermore, a trading system offered by a reputable financial institution should have a track
record of success and be backed by a team of experienced professionals who can provide
support and guidance to traders.
Overall, the effectiveness of the trading system offered by Arihant Capital or any financial
institution should be evaluated based on its ability to meet the needs of traders, its track
record of success, and the level of support and guidance provided to traders.

Reference

1. Rebecca Davies Stuart Cunningham A Review of Online Trading and User Perceptions of

Usability and Trust2012118810.7726/jait.2012.1001r

2. A Rahim Problems and Prospects of Online Share Trading Practices in IndiaInt J Marketing

Financial Serv Manag Res20132416

3. A P Loana Benefits and drawbacks of online trading versus traditional trading. Educational factors

in online tradingAnn Fac Econ20151112539

4. A Bade Analysis Demat Account And Online Trading Sch Res J20174304921

5. www.nseindia.com (website)

6. www.bseindia.com (website)

7. www.google.com (website)

8. Securities Market (Basic) Module Work Book

9. Research Methodology- Methods and Techniques (by C.R. Kothari)

10. www.arihant capital.com

11. www.sebiindia.com