A

SYNOPSIS REPORT
ON
ONLINE TRADING
AT
BULLS, NETWORTH STOCK BROKING,& MOTILAL OSWAL
Submitted
By
ANIL
H.T.NO: ***
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE
OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

AURORA’S PG COLLEGE
PEERZADIGUDA
(Affiliated to Osmania University)
2023-2024
 Aurora’s PG College , PEERZADIGUDA
Department of Management

SYNOPSIS

Title of the Project : ONLINE TRADING

Student Name : ANIL

Hall Ticket Number : ***

Signature of the Student :

Signature of the Guide :

 INDEX
. No. CONTENTS Page No

1 TITLE OF THE PROJECT

2 STATEMENT OF THE PROBLEM

3 INTRODUCTION

4 AIMS AND OBJECTIVES

1) NATURE OF THE STUDY
2) SCOPE OF THE STUDY
3) DATA COLLECTION METHODS
4) TOOLS FOR ANALYSIS
5) CHAPTERISATION
1.1 INTRODUCTION

INTRODUCTION:

In the current economic scenario, fluctuation in the share market has put investors in
confusion. One finds it difficult to take decision on investment. This is primarily, because of
investments are risky in nature and investors have to consider various factors before investing
in investment avenues.
These factors include risk, return, safety, volatility of shares and liquidity. The main
objective of the study is to analyze the equity shares and to know the where investors prefer
to invest in stock market.
Analysis has done on percentage method for studying equity shares. Those who have
well knowledge in equity market they can go for equity investments rather that investing in
mutual funds because no control on the expenses made by the fund manager.
The study will guide the new investor who wants to invest in equity, by providing
knowledge about the equities.
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200
years ago. The earliest records of security dealings in India are meager and obscure. The East
India Company was the dominant institution in those days and business in its loan securities
used to be transacted towards the close of the eighteenth century. By 1830's business on
corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the
trading list was broader in 1839, there were only half a dozen brokers recognized by banks
and merchants during 1840 and 1850.

The 1850's witnessed a rapid development of commercial enterprise and brokerage

business attracted many men into the field and by 1860 the number of brokers increased into
60.In 1860-61 the American Civil War broke out and cotton supply from United States of
Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased
to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous
slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be
sold at Rs. 87).
At the end of the American Civil War, the brokers who thrived out of Civil War in
1874, found a place in a street (now appropriately called as Dallal Street) where they would
conveniently assemble and transact business. In 1887, they formally established in Bombay,
the "Native Share and Stock Brokers' Association" (which is alternatively known as “The
Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it
was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges is limited to listed securities of public limited

companies. They are broadly divided into two categories, namely, specified securities
(forward list) and non-specified securities (cash list). Equity shares of dividend paying,
growth-oriented companies with a paid-up capital of at least Rs.50 million and a market
capitalization of at least Rs.100 million and having more than 20,000 shareholders are,
normally, put in the specified group and the balance in non-specified group.

Two types of transactions can be carried out on the Indian stock exchanges:

1. Spot delivery transactions "for delivery and payment within the time or on the date
stipulated when entering into the contract which shall not be more than 14 days following the
date of the contract”

2. Forward transactions "delivery and payment can be extended by further period of 14 days
each so that the overall period does not exceed 90 days from the date of the contract". The
latter is permitted only in the case of specified shares. The brokers who carry over the
outstanding pay carry over charges (can tango or backwardation) which are usually
determined by the rates of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell
securities for his clients on a commission basis and also can act as a trader or dealer as a
principal, buy and sell securities on his own account and risk, in contrast with the practice
prevailing on New York and London Stock Exchanges, where a member can act as a jobber
or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old conventional
style of face-to-face trading with bids and offers being made by open outcry. However there
is a great amount of effort to modernize the Indian stock exchanges in the very recent times.
ONLINE TRADING:

The actual definition of On-Line Trading is as explained below:

“On-Line trading is service offered on the internet for purchase and sale of shares, in
the real world an investor places orders to stock brokers. Either verbally or in a written form
(fax)”.

OFFLINE:

Offline trading is benefit from discussing with financial advisor the benefits’ of trading
online.

A brief explanation about Internet:-

Internet is a world wide self governed network connecting several other smaller
network and million of computers and persons to merge sources of information. This
technology is vast distance accelerating the pace of business forms and revolutionizing the
many companies are managed, it allow direct links to anyone anywhere and any time to build
up interactive relationship.

A combination of time and space called the internet promises to bring un

precendented changed in our lives and business Internet or net is an inter connection of
computer communication network spanning the entire globe crossing all geographical
boundaries it has re defined the method of communication work study education, Business
leisure health trade banking commerce and what not it is virtually changing everything and
we are living in dot.com age. Net being an interactive two way medium through various
websites enables participation by individually in business to business to consumer commerce
visit to shopping arcades, games, etc., in cyber space even the information can be copying,
down loaded and retransmitted. The use of internet has grown 2000 percent in last decade and
is correctly growing 10 percent per month in India growth of internet is of recent times.
It is expected to bring changes in every functional area of business activity including
marketing and financial services.

It offers stock trading at a lower cost, internet can change the nature and capacity of
stock broking business in India.

E- COMMERCE:
 Electronic Commerce is associated with buying and serving over computer
communication networks, it helps conduct traditional commerce through new way of
transferring and processing of information.

Information is electronically transferred from computer to computer in an automated

way. E- Commerce refers to the paperless exchange to business information using electronic
dates interchange electronic technology, it is not only reduce manual process and paper
transaction but also helps organization more to a fully electronic environment and change the
way they operated PCs and networking attempts to introduce banks of the tools and
technologies required for electronic commerce. The computers are either workstation of
individual office work or serves where large database and information resides.

Networks connects both categories of computer the various operating system are the
most basis programmed with is a computer it manages the resources of the computer system
in a fair and efficient manner.

Now we can enter into the concept known as “INVESTORS AWARENESS ON LINE
TRADING”.

In the past investor had no option but contact their broker to get real time access to
market data, the net brings data to the investor On line and net broking enables him to trade
on a click of mouse, Now information has because easily accessible to both retail as well as
big investor.

OBJECTIVES OF THE STUDY:

 It is to analyze the change in trading after the exchange shifted from outcry to On-line
trading system.
 To analyze conceptual frame work regarding On-line trading.
 To evaluate about the latest development in the stock exchange trading system.
 To analyze the investors awareness about On-line trading.
 To bring out the investors expectations regarding on-line trading to be simplified
further.
 To offer suitable suggestions up on drawn conclusions.
  To determine the growth and future of online trading industry in India
 To understand the customer perception of online trading.
 To see the type of technology used by stock exchanges and by the Indian customer in
online trading
 To determine what type of products the customers deal while doing the online trading.
 To understand the presence of major online traders in the Indian market and looking
about the features provided by them
 To find out the important factor which do mostly affect to the customer
 To develop a good strategy and process that improves the business of the organization
 To be able to compare and analyze the various Financial Products.
 Business development and revenue generation.

NEED FOR THE STUDY:

The purpose into review the On-line Trading procedure a case study of On-Line

trading at India Bulls as the exchanges has changes its trading from the out cry mode to On-

Line trading 20th February, 1997 there is need to assets the performance of the capital market.
SCOPE OF THE STUDY:

 The present study is to know the details regarding the trading through On-line system.

 The project also studies the impact of On-line trading system in the market and also

trading of Government Securities in stock exchange.

 Since the year 2000 a big boom has been witnessed in the Indian Stock Market when

the market showed the coming up of Online Trading System.

 Many online stock trading companies came but initially due to lack of online trading

some companies vanished and some survived.

 The companies which survived are getting the handsome returns also attracting the

foreign Investment Companies. Nowadays this sector is facing cut-throat competition

and also provides huge growth prospects.

 The study then goes to evaluate and analyze the findings so as to present a clear

picture of the trends in the online trading sector.

METHODOLOGY OF THE STUDY:

The data collection methods include both Primary and Secondary collections methods:

- Primary data collection Method.

- Secondary data collection Method.

PRIMARY METHOD:

Primary method includes the data collected directly from the authorized members of
Zen securities. An appropriate questioner is served to the investing community for collection
primary data. And also data collected from discussion with India Bulls officially.

SECONDARY METHOD:

The secondary data collection method includes the lecturers delivered and material
provide by India Bulls Ltd., the date collections from the magazines of the NSE, Economics
time various books relating the investment, Capital Market and other related topics.

LIMITATIONS OF THE STUDY:

 The study is confined to On-line trading procedure On-line problem of listing are
not covered due to time and to keep the study in manageable limits.
 The study reflects the awareness of Hyderabad investors only.
 People were not willing to answer the entire questionnaire due to the less time
available to them.
 Some respondents might be hesitant to divulge personal and financial information
which can affect the validity of all responses.
 There is lack of awareness among people about investing in stock market. So the
people who are aware of such things were found in specific areas for survey purposes.
 Most people are comfortable with traditional system in small towns and like to trade
from their respective brokers, hence not providing a true opinion of theirs.
 Some of the respondents who did not do online trading were able to respond to only
few questions.
 The survey was done in the some major metro cities and may not truly express the
opinion of whole country.