Aditi Sarangi SIP 2022

“A STUDY OF ONLINE TRADING IN INDIAN STOCK MARKET
AT IDBI CAPITAL MARKETS & SECURITIES LTD.”
SUBMITTED BY-
ADITI SARANGI
ROLL NO-2019IMBA037
SESSION:2019-2022
Project Report submitted in partial fulfillment for the degree of

Bachelor of Business Administration
Under the guidance of

Mr. Subhajit Raul
Associate Professor
Department of IMBA
BJB Autonomous College
B.J.B. AUTONOMOUS COLLEGE, BHUBANESWAR

COMPANY CERTIFICATE
INTERNAL GUIDE CERTIFICATE
Mr. Subhajit Raul

Associate Professor
BJB Autonomous College
CERTIFICATE
This is to certify that Ms. Aditi Sarangi, having Roll No 2019IMBA037 has done this
research project work on “A STUDY OF ONLINE TRADING IN INDIAN STOCK
MARKET AT IDBI CAPITAL MARKETS & SECURITIES LIMITED” and submitted
the report in partial fulfilment for the degree of BBA to IMBA Department, BJB
Autonomous College, Bhubaneswar under my supervision and guidance.
Her report is the record of original work done by her. To the best of my knowledge, no
part of the content of this report has been submitted for any degree by her or anybody
else to any other University or Institution.
Date: -
Place: - Bhubaneswar
(Prof. Mr. Subhajit Raul)
Internal Guide
DECLARATION
I Ms. Aditi Sarangi, hereby declare that the project report submitted by me entitled,
“A STUDY OF ONLINE TRADING IN INDIAN STOCK MARKET AT IDBI
CAPITAL MARKETS & SECURITIES LIMITED” in the partial fulfilment for the
degree of BBA to IMBA Department, BJB Autonomous College, Bhubaneswar, is the
record of original work done by me. No part of the content of this report has been
submitted to any institution / university for the award of any other degree. Previous
works in this field have been duly acknowledged as and when they have been referred.
Date: - Aditi Sarangi

Place: - Bhubaneswar
ACKNOWLEDGMENT
The internship opportunity I had with IDBI CAPITAL MARKETS & SECURITIES
LTD. was a great chance for learning and professional development. Therefore, I
consider myself as a very lucky individual as I was provided with an opportunity to be
a part of it. I am also grateful for having a chance to meet so many wonderful people
and professionals who led me through this internship period.
I am using this opportunity to express my deepest gratitude and special thanks to
Mr. Nihar Ranjan Swain (Area head, IDBI Capital) who in spite of being
extraordinarily busy with his duties, took time out to hear, guide and keep me on the
correct path and allowing me to carry out my project at their esteemed organization.
I hereby take this opportunity to add a special note of thanks for Prof Mr. Subhajit Raul
(Lecturer and Internal Guide), who undertook to act as my mentor despite his many
other academic and professional commitments. His wisdom, knowledge, and
commitment to the highest standards inspired and motivated me. Without his insight,
support, and energy, this project wouldn’t have kick-started and neither would have
reached fruitfulness.
Aditi Sarangi
Roll no- 2019IMBA037
TABLE OF CONTENTS
SUBJECT ITEMS PAGE NO.
CHAPTER 1 1-4
• INTRODUCTION
• OBJECTIVES
• RESEARCH METHODOLOGY
• SCOPE & LIMITATIONS
CHAPTER 2 5-25
• CONCEPTUAL STUDY OF THE PROJECT
• LITERATURE REVIEW
CHAPTER 3 26-56
• COMPANY PROFILE
CHAPTER 4 57-73
• DATA ANALYSIS AND INTERPRETATION
CHAPTER 5 74-77
• FINDINGS
• SUGGESTIONS
• CONCLUSION
ANNEXURE 78-85
• BIBLIOGRAPHY
• QUESTIONNAIRE
LIST OF TABLES
SL TABLE NAME PAGE NO.

NO.
Table Indian States with the highest number of investors 20
1
Table Account opening charges 30
2
Table IDBI Card rate plan 33
3
Table IDBI Ace trader plan (delivery trading) 34
4
Table IDBI Ace trader plan (intraday trading) 34
5
Table IDBI Ace trader plan (futures trading) 35
6
Table Financial performance of IDBI Capital Markets & Securities: 36
7
Table IDBI Capital vs Zerodha (comparative analysis) 37-38
8
Table IDBI Capital vs Zerodha (Ratings) 38
9
Table IDBI Capital vs Upstox (comparative analysis) 39
10
Table IDBI Capital vs Upstox (Ratings) 40
11
Table IDBI Capital vs Angel one (comparative analysis) 41
12
Table IDBI Capital vs Angel one (Ratings) 42
13
Table IDBI Capital vs 5paisa (comparative analysis) 43
14
Table IDBI Capital vs 5paisa (Ratings) 44
15
Table IDBI Capital vs Groww (comparative analysis) 45
16
Table IDBI Capital vs Groww (Ratings) 45-46
17
Table IDBI Capital vs ICICI Direct (comparative analysis) 47
18
Table IDBI Capital vs ICICI Direct (Ratings) 48
19
Table IDBI Capital vs Kotak Securities (comparative analysis) 49
20
Table IDBI Capital vs Kotak Securities (Ratings) 50
21
Table IDBI Capital vs HDFC Securities (comparative analysis) 51
22
Table IDBI Capital vs HDFC Securities (Ratings) 52
23
Table IDBI Capital vs AXIS Direct (comparative analysis) 53
24
Table IDBI Capital vs AXIS Direct (Ratings) 54
25
Table Online trading awareness 58
26
Table Demat account 59
27
Table Online trading; safe or not 60
28
Table Investment preference 61
29
Table Receiving stock market updates from broker/dealer 62
30
Table Success rate of trader/broker 63
31
Table Stock brokerage service satisfaction 64
32
Table Investment percentage from annual income 65
33
Table Trading experience 66
34
Table Demat account opening 67
35
Table E margin facility of IDBI Capital 68
36
Table T+2 method 69
37
Table Online trading transparency 70
38
Table Rating of Other companies 71
39
Table Age group 72
40
Table Annual income of investors 73
41
LIST OF FIGURES
SL FIGURE NAME PAGE NO.

NO.
Fig Number of companies listed in NSE and BSE 7
1
Fig Number of active demat accounts 18

2
Fig Online trading awareness, pie chart 58
3
Fig Demat account, pie chart 59
4
Fig Online trading; safe or not, pie chart 60
5
Fig Investment preference, pie chart 61
6
Fig Receiving stock market updates from broker/dealer, pie chart 62
7
Fig Success rate of trader/broker, pie chart 63
8
Fig Stock brokerage service satisfaction, pie chart 64
9
Fig Investment percentage from annual income, pie chart 65
10
Fig Trading experience, pie chart 66
11
Fig Demat account opening, pie chart 67
12
Fig E margin facility of IDBI Capital, pie chart 68
13
Fig T+2 method, pie chart 69
14
Fig Online trading transparency, pie chart 70
15
Fig Rating of Other companies, pie chart 71
16
Fig Age group, pie chart 72
17
Fig Annual income of investors, pie chart 73
18
CHAPTER 1
❖INTRODUCTION
❖RESEARCH OBJECTIVES
❖RESEARCH METHODOLOGY
❖SCOPE AND LIMITATIONS OF THE STUDY
INTRODUCTION
This research is related to examines the new wave of online trading with respect to
industries, brokerages. Stock market is one of the important elements of the Indian
economy which determines the economic growth of India and financial state of the
country. In today’s world there are millions of people are connected to the internet and
many of them are from rural background. Last 30 years since 1991, GPL (Globalization,
Privatization, Liberalization) the internet has impacted much on people perception. The
customer satisfaction is only thing that make a business successful.
The present study is to find out the customer awareness towards online trading. This
study also focuses on online trading facilities at IDBI Capital Markets & Securities
Limited. The main objective of the study is to understand how the online trades take
place and the current scenario of online trading in Indian stock market.
OBJECTIVES OF THE STUDY
• To study the concept of online trading.
• To study the current online trading scenarios.
• To know the customer awareness level regarding online trading.
• To make a comparative analysis of competitors of IDBI Capital Markets &
Securities Limited.
• To get the overview of online trading at IDBI Capital Markets & Securities
Limited.
Page | 1
RESEARCH METHODOLOGY
This report is based on primary as well as secondary data, however primary data
collection was given more important since it is overhearing factor in attitude studies.
One of the most important users of Research Methodology is that it helps in identifying
the problem, collecting, analysing the required information or data and providing an
alternative solution to the problem. It also helps in collecting the vital information that
required by the Top management to assist them for the better decision making both day
to day decisions and critical ones.
Research Design: Exploratory Research
Data Collection method: Questionnaire Method
Universe: Bhubaneswar
Sampling Method: The sample was collected through google form through filling up
the Questionnaire prepared. The data has been analysed by using mathematical and
statistical tools.
Sample Size: 50 respondents
Sampling Unit:
• Registered Candidates (Students or Graduated Students)
• Clients of IDBI Capital
Data Source:
• PRIMARY DATA: - Primary data are those, which were collected a fresh & for the
first time and these happens to be original in character. However, there are many
Page | 2
methods of collecting the primary data, all have not used for the purpose of this project.
The ones that have been used are: Questionnaire, Informal interviews, Observation.
• SECONDARY DATA: - Secondary data is collected from previous researches and
literatures to fill in the respective projects. The secondary data was collected through:
Text, books, Articles, Journals, and Websites
Data Collection Instrument: Structured Questionnaire
Sample Design: Data has been presented with the help of Tables and Pie Chart.
SCOPE & LIMITATIONS OF THE STUDY
1. SCOPE OF THE STUDY:
Now a day’s most of the people are interested in investment in shares through online
terminals. So, most of the people are expecting more facilities in the online portals,
so online trading is considered as important area for the study. The online trading
user’s expectations and opinions are varying from one to another because based on
the facilities of online trading platform of the company.
• The study is conducted to evaluate the online trading facilities which are
offered to the customer.
• The study would be helpful to find the customer’s opinion and satisfaction
level on the online trade facilities.
Page | 3
• Investors can learn about the challenges and benefits of online trading from
this research and make better financial decisions.
• This study would be helpful for the investors to get an overview of online
trading in Indian stock market.
2. LIMITATIONS OF THE STUDY:
This study is an attempt to illustrate the online trading scenarios in Indian stock
market and the online trading procedure of IDBI Capital. The current study,
however, has some limitations. It is not possible to take into consideration each &
every criterion in this study.
• Some of the information given by the respondents may be biased.
• The respondents’ behaviour changes according to stock market fluctuations.
• It is always a problem to get an enthusiastic response. There were not many
willing participants; lack of cooperation remains an aberration in most of
the survey-based researches.
Page | 4
CHAPTER 2
❖CONCEPTUAL STUDY OF THE PROJECT

❖LITERATURE REVIEW
Page | 5
CONCEPTUALISATION
Stock Market:
A stock market is a place where regular activities of buying, selling, and issuance of
shares of publicly-held companies take place. In the stock market, one can also trade in
financial instruments such as derivatives, bonds, mutual funds, along with shares of a
listed company. A stock exchange is the meeting place for buyers and sellers for
trade. To be able to trade on a stock market, securities must be listed on it. It helps
companies to raise funds.
Overview of Indian Stock Market:
The stock exchange in India serves as a market where financial instruments like stocks,
bonds and commodities are traded. It is a platform where buyers and sellers come
together to trade financial tools during specific hours of any business day while
adhering to SEBI's well-defined guidelines.
Most of the trading in the Indian stock market takes place on its two stock exchanges:
• Bombay Stock Exchange (BSE)
• National Stock Exchange (NSE)
The BSE has been in existence since 1875. The NSE, on the other hand, was founded
in 1992 and started trading in 1994. However, both exchanges follow the same trading
mechanism, trading hours, and settlement process.
Page | 6
As of November 2021, the BSE had 5,565 listed firms, whereas the NSE had 1,920 as
of March 31, 2021.
Almost all the significant firms of India are listed on both the exchanges. The BSE is
the older stock market but the NSE is the largest stock market, in terms of volume.
Both exchanges compete for the order flow that leads to reduced costs, market
efficiency, and innovation. The presence of arbitrageurs keeps the prices on the two
stock exchanges within a very tight range.
NUMBER OF COMPANIES LISTED IN NSE AND BSE
Listed Companies
7651
7586
7501 7462
7172
FY 2017 FY 2018 FY 2019 FY 2020 FY 2021
(Source: www.statista.com) fig.1
In financial year 2021, a total of over 7,462 companies were listed in the National Stock
Exchange (NSE) and the Bombay Stock Exchange (BSE) across India. This was an
increase compared to the previous year. The majority of these companies was listed in
the BSE.
Page | 7
Trading Mechanism:
Trading at both the exchanges takes place through an open electronic limit order
book in which order matching is done by the trading computer. There are no market
makers and the entire process is order-driven, which means that market orders placed
by investors are automatically matched with the best limit orders. As a result, buyers
and sellers remain anonymous.
The advantage of an order-driven market is that it brings more transparency by
displaying all buy and sell orders in the trading system. However, in the absence of
market makers, there is no guarantee that orders will be executed.
All orders in the trading system need to be placed through brokers, many of which
provide an online trading facility to retail customers. Institutional investors can also
take advantage of the direct market access (DMA) option in which they use trading
terminals provided by brokers for placing orders directly into the stock market trading
system.
Settlement and Trading Hours:
Equity spot markets follow a T+2 rolling settlement. This means that any trade taking
place on Monday gets settled by Wednesday. All trading on stock exchanges takes
place between 9:15 a.m. and 3:30 p.m., Indian Standard Time, Monday through Friday.
Delivery of shares must be made in dematerialized form, and each exchange has its
Page | 8
own clearing house, which assumes all settlement risk by serving as a central
counterparty.
Market Indices:
The two prominent Indian market indices are Sensex and Nifty. Sensex is the
oldest market index for equities; it includes shares of 30 firms listed on the BSE. It
was created in 1986 and provides time series data from April 1979, onward.
Another index is the Nifty; it includes 50 shares listed on the NSE. It was created in
1996 and provides time series data from July 1990, onward.
Market Regulation:
The overall responsibility of development, regulation, and supervision of the stock
market rests with the Securities and Exchange Board of India (SEBI), which was
formed in 1992 as an independent authority. Since then, SEBI has consistently tried to
lay down market rules in line with the best market practices. It enjoys vast powers of
imposing penalties on market participants, in case of a breach.
Functions of SEBI:
• Registration of brokers and sub-brokers and other players in the market.
• SEBI conducts enquires and audit of stock exchanges
• Prohibition of fraudulent and unfair trade practices.
Page | 9
• Controlling insider trading and imposing penalties for such practices.
• Undertaking steps for investor protection.
Online trading in Indian Stock Market:
Online trading started in India on 1st April 2000 with as many as 79 members seeking
permission to do so. Geojit Securities was the first to go online. On February 1, 2000,
the National Stock Exchange (NSE) opened up the internet-based trading system for its
members, the first stock exchange in India to do so.
Online trading is buying and selling of various stocks through online platform mode
with various channels. These online trading platform businesses have a great role in
emerging business with the greater impact over many financial institution and
economy.
All these businesses have a successful story because of internet and will have impact
for more several years. The selling and buying of bond, shares, mutual funds, debts,
gold and a lot comes under the online trading. Many businesses have taken their way
to online, to save time, convenience of customers, to earn profit and this has impacted
on much on sales and having a great business.
This business starts giving more discount on various products or services, which are
fulfilling the online business desire. Moreover, it become necessary to analyse the
process and calculate the risk. Online trading is a platform where anyone can buy and
sell the shares, funds etc. from the comforts of your home.
Page | 10
To use the online platform is very easy, no one needs skills and qualification. The
internet has facilitated the online trading with changing the way of market works, as
well as how the investors are accessing the market. Almost in every country the trading
has been picked up online, Bombay stock exchange and National stock exchange are
conducting online trade successfully.
Connectivity was perhaps the most important factor in online trading and India is
somehow successfully tried to get connectivity throughout in India. Online trading
allows you to check the status of your trade through e-mail or mobile apps.
What is online trading?
Online Trading of Shares means you have an online platform where you can buy or sell
shares. So, Online Trading Meaning is as simple as it sounds. You buy and sell the
securities online and the fund is also transferred online.
With the online trading platform, you can trade different types of investment vehicles.
There are stocks – equities, commodities, mutual funds, and other investment vehicles
as well.
Online trading facilitates the trading process by bringing the complete trading setup at
your convenience. You can trade anytime and from anywhere using the online
platforms.
There is no paperwork involved, no need to go to the brokerage house or the stock
exchange to trade shares. It is all there on the device which you use –
laptop/tablet/desktop or mobile.
Page | 11
With a good internet connection, you can check your investment all the time. You can
monitor and place your bids and trade shares anytime.
Steps of online trading:
▪ Firstly, the investor needs to open a Demat account. This is the account that
holds all the investments – equities, commodities and other investments. Demat
account is provided by brokerage houses, so he needs to find a good broker and
open the account. He should make sure the brokerage house is registered with
SEBI. The investor should also check the brokerage charges and other charges
the firm charge for their services. He will get the trading platforms, a trading
account with it for trading.
▪ Secondly, the investor must study the fundamentals of the market. He must be
aware of and capable of predicting market movements. He can do so by
enrolling in online classes or trade courses, as well as reading from web portals.
▪ Thirdly, the investor needs to put his learning in action. Which means he needs
to practice what he learned. Before entering the market with real money at stake,
it is better to practice with some demo accounts and virtual money. There is
different stock simulator which can help him practice trading. Since he is not
investing any real money, there is no fear of losing any.
▪ Finally, the investor must devise a trading strategy. He must determine the
investment aim, the investment budget, and the desired outcome. As a result, he
must develop an investment strategy.
Page | 12
Brokers:
Brokers and brokerages are essential to the process of online trading. They sell and
buy stocks/shares via an exchange. They are licensed entities who can perform this
function. In the process of online trading, these brokerages trade electronically on
the behalf of investors.
Top brokers who offer online trading facility:
• IDBI Capital
• ICICI Direct
• Kotak Securities
• Zerodha
• Upstox
• Groww
• 5paisa
• Angel one
• Sharekhan
• Axis Securities
• HDFC Securities
How online trading works in India?
For online trading set-up in India, there are few organizations. They are the stock
exchanges, Depositories, Depository participants (Brokerage Houses), SEBI and
finally, the investor or the trader. Each of these is linked and work together to complete
the process of online trading.
Page | 13
An investor opens a Demat account with a DP – which is registered with a Depository
(either CDSL or NSDL) and also registered with SEBI. He has a bank account linked
to his Demat and trading account. So, when he places a trading order on a trading
platform, the order is processed by his brokerage house.
Then the Depository debits or credits the shares traded to the investor’s Demat account.
The bank account gets debited or credited according to the transaction. SEBI is the
regulator under which all these organizations work in India.
It takes around 2 days from the day of the transaction, for the settlement of an online
trading order. It is really important to know how it works for Online Trading Learning
and trading in the market.
Online trading is quite simple and thus completed within less time. There is no hassle
in placing orders and getting your orders executed with the right kind of trading
platform. This enables the traders to trade smoothly and this is the forte of online
trading.
In online trading, there are various facilities:
▪ The investor gets register themselves with the particular online trading platform,
with the terms and conditions provided by company.
▪ The servers are connected with the stock exchange and with respective banks of
online trading platform.
▪ The updates and current status are notified through mobile phone and emails.
So, the client can be known with process.
Page | 14
▪ The client takes their own decision by reading and understanding the content
provided by the Brokerages websites.
Benefits of online trading:
Convenient
Online trading has drastically changed the way of investing in stock market for common
people through various platform. It becomes very easy for client to access and take
glance various reports, charts and compare it. Even the client pays the transaction
amount through online mode.
Information
Now a day’s information is flowing like a river in market, various sites. This
information is very helpful to clients and sometime this information becomes a point of
failure in online trading. The brokerages send the information through email or chats,
this helps to reduce the agents in between.
Extra power
Online trading has given power or privilege to small companies to compete with various
big organization in stock trading. Being online the size of particular organization does
not matter.
Page | 15
Control at individuals
Because of online trading client can access or trade by themselves through the portal or
website, they can make payment, they can buy and sell the stocks of various companies,
they can do intraday trading.
Global trade
Online trading has provided this platform that the clients can trade throughout the globe
without much restriction. Online trading has broken the barriers of boundaries. It
becomes easy to get the investment through global market.
Challenges in online trading in India:
Blindly following the crowd
Common man generally lacks in wisdom of share market, and they don’t believe on
their own decision. So, mainly they are dependent on crowds’ decision. This is a time
where the investors fails and hence, fall in a trap of buying unnecessary shares.
Inadequate information about the quoted companies
Mainly the investor doesn’t have the information related to particular company.
Generally, it happens with small and medium short-listed companies, and they even
don’t find relevant to do research. Many investors are not aware about the up and down
of the share prices.
Page | 16
Global effects
In present scenario of the world, stock markets are integrated with world markets. Any
type of fluctuation in global market, affects the Indian stock market. This kind of affect
is sometime direct and sometime indirect.
Pandemic effect on Online trading:
The COVID-19 pandemic and ensuing nation-wide lock downs have managed to put a
lot of people unemployed and have reduced the income generating capacity of many
families. As a result, many people turned towards stock trading in an attempt to make
short-term gains using the price movements of stocks.
In fact, in the span of just two months, from March to April 2020, around 12 lakhs new
demat accounts were opened. The retail investor trading volumes in the National Stock
Exchange (NSE) have also seen a significant boost. This clearly signifies that stock
trading has picked up nicely amidst the pandemic.
A major chunk of these people entering the stock market was found to be made of young
investors who were new to the trading and investment scene. Since they’re just
beginners who are just starting their investment journey, they’re likely to be
inexperienced with the ways of the stock market.
Day trading has become very popular and interesting worldwide since the onset of
the coronavirus pandemic. Activity has increased dramatically in the quarter of 2020
compared with 2019. TD Ameritrade reports that visit to its website giving instructions
Page | 17
on trading stocks have nearly quadrupled since January. Meanwhile, trading apps like
Zerodha, Upstox are seeing a surge in business.
Millions of unemployed people feel it is a method they can use to replace the lost
income. In addition, he said, people are doing things they normally wouldn’t because
of all the additional time they have on their hands.
Current scenarios of online trading:
In the post-pandemic world, the number of demat accounts have jumped 2.2 times. The
number of active dematerialised (demat) accounts in the country jumped 63 per cent in
the past 12 months to 89.7 million in financial year 2021-22 (FY22).
ACTIVE DEMAT ACCOUNT (mn)

89.7
90 80.6
80 70.3
70 62.2
55.1
60 49.8
46.6
50 40.9 43.2
40
30
20
10
0
Demat account
(Source: CDSL, NSDL) fig.2
The growth was underpinned by factors such as an increase in smartphone usage, easier
digital onboarding of customers, and attractive returns delivered by the equity markets.
As of March 31, the Central Depository Services (CDSL) managed 63 million accounts
Page | 18
with assets under custody (AUC) of Rs 37.2 trillion. Meanwhile, the National Securities
Depository (NSDL) handled 26.7 million accounts with AUC of Rs 302 trillion.
The pandemic compelled everyone across the world to reconsider their spending and
investment habits. The widespread availability of smartphones and low-cost data has
pushed investing and trading into the digital realm. The use of eKYC and Aadhaar
eSign has made opening a demat account a paperless and simple process. Currently,
more than 80 per cent of the total customer base is millennials, more than 85 per cent
from tier-2 and tier-3 cities, and 70 per cent are first-time investors.
Another reason behind the growth of demat account is the rise of discount brokers such
as Zerodha and Upstox, which have made it easy to invest in financial markets via
e-KYC, zero brokerage and access to investment and trading portals at the finger tips.
Going forward, we may not see the 30 per cent annualised growth we have seen since
2020, but it will certainly be in high double digits. Still, the penetration levels of demat
are far lower than the penetration of savings bank accounts or mutual fund folios. The
number of customers with PAN cards is close to 500 million, and we have close to 90
million demat accounts. Many young people are getting white-collar jobs. Youngsters
are keen to invest in stocks. They prefer to invest directly rather than handing it over to
mutual funds or life insurance. Fixed deposit rates are not attractive for this generation.
Page | 19
List of Indian States with the highest number of investors:
STATE NO. OF INVESTORS
Maharashtra 1,97,41,658
Gujarat 1,04,85,096
Uttar Pradesh 79,53,933
Karnataka 55,58,906
Tamil Nadu 51,62,742
Delhi 46,69,164
(TABLE:1)
SWOT Analysis:
Strengths: Weakness:
1. Easy to access for clients 24x7. 1. Lack of awareness in customers.
2. Efficient research and analysis. 2. Many times, technical issues happen.
3. Constant flow of information. 3. High risk of securities (Money Fraud)
Opportunity: Threats:
1. Can increase the number of customers 1.Aggressive promotion strategies.
by making them aware. 2.Various cyber-attacks.
2. Expansion of business. 3. More and more players are entering
online trading.
Page | 20
Future of online trading in India:
Online trading has already grown close to 20% of the overall broking market in India
and is likely to grow much bigger in the days to come. Online trading is not only being
preferred by traders but also being encouraged by brokers. Here is why it has huge
scope.
• With the advent of broadband and low-cost bandwidth, the internet access is
becoming much more economical to operate.
• The millennial crowd is having a soft corner for online trading as it gives
them more control over their actions.
• Online trading has now started incorporating machine learning and artificial
intelligence so that focused planning of finances is also facilitated.
• Low-cost broking is here to stay and the largest broker in India (by number
of registered clients) is already a discount broker predominantly online.
• With mobile trading catching on, trading is becoming a lot more personal
and contiguous. That could make all the difference.
Page | 21
LITERATURE REVIEW
• Category 1: International Perspective
• Category 2: Indian Perspective
International Perspective:
❖ Brad M. Barber and Terrance Odean (2002):
Brad M. Barber and Terrance Odean analysed 1,607 investors who switched from
phone based to online trading during the 1990s. Those who switched to online trading
perform well prior to going online, beating the market by more than 2% annually. After
going online, they trade more actively, more speculatively, and less profitably than
before—lagging the market by more than 3% annually. Reductions in market frictions
(lower trading costs, improved execution speed, and greater ease of access) do not
explain these findings. Overconfidence—augmented by self-attribution bias and the
illusions of knowledge and control—can explain the increase in trading and reduction
in performance of online investors. They found that investors who choose to make
investments online are better performers than those who do not go online before the
switch but worse performers after the shift. The idea is that overconfidence induces
them to switch but then excessive trading after the switch dissipates their profits.
Page | 22
❖ Haroun Alryalat et al. (2006):
Haroun Alryalat et al. analysed the effect of online and traditional trading on effective
market performance on the NASDAQ. The purpose of this paper was to present a
critical analysis on the competition between online (ECN) and traditional (Market
Maker (MM)) trading on the NASDAQ stock exchange. Online stock trading
mechanisms at the exchanges are often a hybrid of dealer and auction markets. Different
aspects of trading execution, which is the most commonly used market centre at present,
were analysed. This leads to a discussion on:
(1) the path that executes order is organized and
(2) its impact on the effective market performance, trading cost and investor behaviour.
❖ Rebecca Davies and Stuart Cunningham (2012):
Rebecca Davies and Stuart Cunningham 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.
Page | 23
❖ Petric Loana Ancuta (2015):
Petric Loana Ancuta 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.
Indian Perspective:
❖ Nidhi Walia and Ravinder Kumar (2007):
Nidhi Walia and Ravinder Kumar wrote in their research paper, which was published
in Indian journal of marketing, that there is no denying the fact that internet trading
offered investors convenience of trading along with reduced cost. But Indian investors
have not yet fully realized the importance of using technology for stock trading. The
major findings of the study are the Indian investors are more conservative, they do not
change brokers for trading, whereas net traders are more comfortable with online
trading for its transparency and complete control of the terminal.
In the Indian context, online trading can be rightly called as a recent phenomenon, and
even till day online trading is not much popular among investors for which a list of
factors can be blamed. This fact is clearer from the information available that where
numbers of stock exchanges in India have grown from 7 exchanges in 1946 to total 23
Page | 24
stock exchanges till 2011, only two stock exchanges are providing online share trading.
Online trading is gaining momentum with trading volume growing by 150 % per
annum.
❖ Abdhul Rahim (2013):
Abdhul Rahim 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.
❖ Dr. Sarika Srivastava (2016):
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 analyse 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):
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 analysed about Dem at account and online trading.
He said that in India, Online trading is still at its infancy stage.
Page | 25
CHAPTER 3
❖COMPANY PROFILE
Page | 26
COMPANY PROFILE
Name of the company: IDBI Capital Markets & Securities Ltd.
Year of Establishment: December 1993
Address: IDBI Tower, 6th Floor, World Trade Center, Mumbai, Maharashtra
Nature of Business: Financial Service Provider
CEO / MD: Shri Iswar Pradhan
Services:
▪ Investment Banking
▪ Capital Market Products
▪ Private Equity
▪ Corporate Advisory Services
▪ Mergers & Acquisitions
▪ Project Appraisals & Debt Syndication
▪ Stock Broking - Institutional & Retail
▪ Distribution of Financial Products
▪ Debt Placement and Underwriting
▪ Fund Management (Managing Clients' Assets-Pension/PF Fund Managers)
Page | 27
Number of Employees: 501-1000 employees
Website: http://www.idbicapital.com
Slogan: 25 Years Of Translating Dreams Into Reality
Vision: Continuously raising our level of standards to be among the top ranking in all
our business lines with an international presence fuelled with passion and commitment
towards customer focus & integrity.
Mission:
To be the most preferred calling point for all our business lines by working together as
a customer centric team.
▪ To maintain transparency, integrity and responsibility that will drive us towards
our vision to have an international presence.
▪ We will drive our business seamlessly with passion and commitment towards
customers by promoting innovation and team work.
▪ Make a mark on the international front in all our business lines and continuously
improve processes and systems to deliver superior value to our customers that
will delight them with the quality of our service.
IDBI Capital is in fact:
▪ Among the top 10 MF distributors in India.
▪ Rating: CARE A1
▪ Net worth: over Rs 3 billion
Page | 28
IDBI Capital Markets & Securities Ltd.:
It has a significant physical presence in India. It has 19 branches in 14 cities across
India, as well as a large network of Business Associates. Customers of IDBI can access
a variety of services and trade support at any of these branch offices.
• Parent Organization: IDBI Bank
IDBI Capital Markets & Securities Trading App:
• IDBI Direct 1.4 (Google Play store)
• IDBIDirect (Apple App Store)
IDBI Direct App is an easy-to-use trading app. It is available free of
cost for the traders to continue their trading activities online. They
can examine their account balance and maintain their portfolio
holding and positions on almost distinct tabs. Traders can watch live
market news and market watch with steaming quotes are available.
Investors can even customize or edit their market watch list and can easily save the
changes made by them. Traders can track live quotes, create their multiple watch lists,
place and examine multiple orders through the IDBI Direct mobile trading app.
Demat Account:
Depository Services is a key offering by IDBI Capital. IDBI Capital is a depository
participant with both national depositories-NSDL and CDSL. Through its membership,
the company offers Demat Account opening and other depository related services to its
customers. The Demat accounts are opened with NSDL or CDSL and IDBI only plays
Page | 29
an intermediary role. Traders are charged per transaction by the depository and the
brokerage company for various demat services.
IDBI Capital is the depository participant (DP) of NSDL and CDSL, two national
depositories in India. The company offers a 3-in-1 account (trading, demat and savings
account) to its customers. All the accounts are linked together to facilitate easier and
faster transactions.
IDBI Capital Securities DP Membership Info:
• IDBI Capital NSDL DP ID -IN300079
• IDBI Capital CDSL DP ID: 12084000
Transaction
Fee
Demat Account Opening Charges (One time) NIL
Demat Account Annual Maintenance Charges AMC (Yearly Fee) Rs 350
[Zero AMC for First Year]
Trading Account opening charges (One time) Rs 500
Trading Account Annual Maintenance Charges AMC (Yearly NIL
Fee)
(TABLE 2)
IDBI Capital Account Opening:
Opening an account with IDBI Capital is easy and quick. One could open an account
with IDBI Capital in 3 simple ways:
• Online Instant Paperless Account Opening
Page | 30
• Visit IDBI Capital Branch Offices
• Download the form and submit
1.Online Instant Paperless Account Opening-
IDBI has an instant paperless account opening process. To open an instant IDBI Capital
trading & demat account, you need-
• PAN Card
• Aadhar Card
• Mobile number linked with Aadhar
• Webcam for personal identification
• Cancelled personalized cheque
Steps to open instant account are-
1. Visit IDBI Capital's company website. There is an 'Open an Account' tab on the
top right side on the home page. Click on the link.
2. On the next page, enter your name, email, mobile number, and city. An OTP
will be sent to your number. Enter the OTP and verify.
3. Click on 'Apply Online'
2.Visit IDBI Capital Branch Offices-
IDBI Capital has 19 branches located across 14 major cities. You could visit any of
these branch offices and complete the account opening process.
Page | 31
3.Download the form and submit-
To download the trading and demat account opening form from the company's website,
you need to take the following steps-
1. Visit the company's website
2. Click on 'Customer Services' on the top right-side menu
3. On the page, click on 'Forms' on the right-side menu
4. Download and print the form, fill in all the required details and attach supporting
documents.
5. Send the completed form to the company's registered address or submit it at the
nearest branch.
Check Account Opening Status:
The instant paperless account will be opened in 15 minutes. In case, you have applied
offline through a physical form and you have not received any communication from the
company after 15 days of submitting the application, please call customer services or
visit your nearby branch to check the account opening status.
Unique Products:
IDBI Capital offers 2 unique products EQUITY SIP and ENCASH to the customers.
• EQUITY SIP- It is a Systematic Investment Plan wherein a fixed amount can
be invested in select stocks every month. IDBI customers can choose from two
types of SIP- Amount Based and Quantity Based.
Page | 32
o Amount based SIP - In this, you can invest a fixed amount in stocks of
your choice at a predefined frequency and term. You can choose up to
10 scrips.
o Quantity based SIP - This option allows you to buy a certain number
of shares of a company. You can choose up to 5 such scrips to purchase.
• ENCASH- It allows customers to get the sales proceeds credited to their
account on the trading day instead of normal T+2 settlement day. The facility is
available only on the shares available in the customer's Demat account.
Brokerage structure of IDBI capital markets & securities ltd.:
IDBI Capital offers 2 brokerage plans to suit the varied needs of the traders-
• Card Rate Plan- In this plan, the brokerage is charged as a percentage of the
trade value.
• Ace Trader Plan- In this plan, the brokerage is charged as a percentage of the
trade value. However, the percentage charged depends on the monthly trade
turnover.
IDBI Card Rate Plan:
Delivery Brokerage (per leg) 0.50%
Square-off Brokerage (Per leg) 0.05%
Futures Brokerage (Per leg) 0.05%
Options Brokerage (Per lot Per leg) Rs 100
(TABLE 3)
Page | 33
IDBI Ace Trader Plan:
Delivery Trading:
Total Eligible Turnover per month Brokerage each leg (%)
Up to Rs 2,00,000 0.50
Rs 2,00,001-Rs 5,00,000 0.45
Rs 5,00,001- Rs 10,00,000 0.40
Rs 10,00,001- Rs 20,00,000 0.35
Rs 20,00,001- Rs 40,00,000 0.30
Rs 40,00,001- Rs 1,00,00,000 0.25
Rs 1,00,00,001-Rs 5,00,00,000 0.20
Rs 5,00,00,001- Rs 10,00,00,000 0.15
Above Rs 10,00,00,000 0.10
(TABLE-4)
Intraday Trading:
Total Eligible Turnover per month Brokerage each leg (%)
Up to Rs 2,00,00,000 0.050
Rs 2,00,00,001 - Rs 4,00,00,000 0.045
Rs 4,00,00,001- Rs 6,00,00,000 0.040
Rs 6,00,00,001 - Rs 8,00,00,000 0.035
Rs 8,00,00,001 - Rs 10,00,00,000 0.030
Rs 10,00,00,001 and above 0.020
(TABLE-5)
Page | 34
Futures Trading:
Total Eligible Turnover per month Brokerage each Leg (%)
Up to Rs 2,00,00,000 0.048
Rs 2,00,00,001- Rs 5,00,00,000 0.040
Rs 5,00,00,001- Rs 10,00,00,000 0.035
Rs 10,00,00,001 & above 0.020
(TABLE-6)
IDBI Capital Markets & Securities has tie up with the following banks:
• Union Bank of India
• Karur Vysya Bank
• Oriental Bank of Commerce
• Punjab National Bank
• Bank of Rajasthan
Customers of IDBI Capital Markets & Securities:
IDBI Capital offers a full suite of products and services to Corporate, Institutional and
Individual clients, High Net worth Individuals, Service class people, Government
Employees, Young Adults (19-30 yrs.), Adults (35-50 yrs.).
Page | 35
Features of trading with IDBI Capital Markets & Securities:
• IDBI Capital offers 3-in-1 account wherein your trading, demat and bank
account are linked to each other. You can link savings account maintained with
IDBI Bank, HDFC Bank, Axis Bank, ICICI Bank, PNB, Vijaya Bank, OBC,
Union Bank of India, Karur Vysya Bank & Lakshmi Vilas Bank with the trading
account. However, to avail a 3-in-1 account, you must have a savings account
with IDBI/HDFC Bank/Axis Bank/ICICI Bank.
• Strong research services
• Facility to invest in equities, F&O, Mutual Funds etc. from a single platform.
• Offers both online and offline trading services
• Brokerage plans for both low volume and high-volume traders
• Call & Trade and Dealer assisted trading services
Financial performance of IDBI Capital Markets & Securities:
Brief Financials (Rs. Crore) FY20 (Audited) FY21 (Audited)
Total operating income 71.66 91.58
PAT 9.67 9.11
Total Assets 322.95 414.42
ROE (%) 3.03 2.73
Gearing (times) 0.00 0.02
(TABLE-7)
Page | 36
Competitors of IDBI Capital Markets & Securities Ltd.:
• Category 1: Trading Apps

• Category 2: Bank Brokers/Full-service brokers
1.Trading Apps:
▪ Zerodha:
Zerodha is India's No. 1 stockbroker at this time. They offer an excellent online trading
platform, charge a low brokerage fee, and are the most transparent stock broker.
Continuous improvement and innovation made them the fastest-growing fintech
company in India.
Zerodha is the most technologically advanced stock broker in India. Zerodha has built
its own trading software Zerodha Kite (web and mobile trading app), Coin (mutual
fund investment platform), Varsity (investor education program), Trading Q&A and
many other tools.
Comparative analysis:
IDBI Capital Zerodha
Type of Broker Full-service broker Discount broker
Number of clients 66,639 62,77,434
Minimum Brokerage Rs 25 per trade or 0.03% in Intraday and
2.5% of the trade F&O
value whichever is
lower.
3 in 1 account
Page | 37
Automated trading
SMS Alerts
Online demo
Online portfolio
(TABLE-8)
Ratings:
IDBI Capital Zerodha
41 Customer Reviews 459 Customer Reviews
Fees
Brokerage
Trading Platform
Customer Service
Research
Capabilities
Overall Ratings
IDBI Capital is rated 2.6 of 5 Zerodha is rated 3.7 of 5 based

Broker Rating
based on 41 customer reviews on 459 customer reviews
[Source: www.chittorgarh.com] (TABLE-9)
Page | 38
• Upstox:
Upstox is a tech-first low-cost broking firm in India providing trading opportunities at
unbeatable prices. Company provides trading on different segments such as equities,
commodities, currency, futures, options which are available on its Upstox Pro Web and
Upstox Pro Mobile trading platforms.
Upstox is backed by a group of investors including Kalaari Capital, Ratan Tata and
GVK Davix. Upstox trading platform offers trading, analysis, charting and many
more rich trading features.
IDBI Capital Upstox
Minimum Brokerage Rs 25 per trade or 2.5% of 0.05%
the trade value whichever
is lower.
3 in 1 account
Automated trading
SMS Alerts
Online demo
Online portfolio
(TABLE-10)
Page | 39
Ratings:
IDBI Capital Upstox
Fees
Brokerage
Trading
Platform
Customer
Service
Research
Capabilities
Overall Ratings
IDBI Capital is rated 2.6 of 5 Upstox is rated 2.4 of 5 based on

Broker Rating
based on 41 customer reviews 130 customer reviews
• Angel One:
Incorporated in 1987, Angel One is the first large-size full-service broker
offering discount brokerage rates to its customer. The company offers a wide range
of investment and trading services including stock and commodity broking, investment
Page | 40
advisory services, margin funding, loans against shares, and financial products
distribution.
Angel One is a strong neighbourhood presence with 110 branches and 11,000 sub-
broker offices in 1800+ cities in India. Angel One is famous for its excellent trading
software's and investment advisory.
IDBI Capital Angel One
Type of Broker Full-service broker Discount Broker
Minimum Brokerage Rs 25 per trade or 2.5% of Equity Rs 20 | F&O Rs 30
is lower.
3 in 1 account
Automated trading
SMS Alerts
Online demo
Online portfolio
(TABLE-12)
Page | 41
Ratings:
IDBI Capital Angel One
Fees
Brokerage
Trading
Platform
Customer
Service
Research
Capabilities
Overall Ratings
IDBI Capital is rated 2.6 of 5 Angel One is rated 2.7 of 5 based

Broker Rating
based on 41 customer reviews on 257 customer reviews
• 5paisa:
5paisa.com is a leading online stockbroker offering discount brokerage services to
retail investors in India. 5paisa Capital Ltd is a publicly-traded and professionally
Page | 42
managed company promoted by IIFL founders. As of March 2021, it has over 1.2
million clients.
5Paisa offers three subscription plans; Basic Pack, Power Investor Pack, and Ultra
Trader Pack. These plans provide you the various benefits from Zero Account opening
charges to Flat Fee reducing from Rs 20 to Rs 10.
IDBI Capital 5Paisa
Minimum Brokerage Rs 25 per trade or 2.5% Rs 20 per trade
of the trade value
whichever is lower.
3 in 1 account
Automated trading
SMS Alerts
Online demo
Online portfolio
(TABLE-14)
Page | 43
Ratings:
IDBI Capital 5paisa
Fees
Brokerage
Trading Platform
Customer Service
Research Capabilities
Overall Ratings
5paisa is rated 2.6 of 5

IDBI Capital is rated 2.6 of 5
Broker Rating based on 91 customer
based on 41 customer reviews
reviews
• Groww:
Groww is a Bangalore based broker offering online flat fee discount
brokerage services to invest in Equity, IPO, and Direct Mutual Funds. Groww has
its own trading platform called Groww (web and mobile trading app) that offers a
seamless trading experience to its investors.
Established in 2016, Groww initially started as a direct mutual fund investment
platform. In the mid-2020s, Groww expanded its product offering to include Equity
trading. The company also offers Digital gold, US Stocks, and Fixed Deposit as other
investment options for its customers.
Page | 44
IDBI Capital Groww
Minimum Brokerage Rs 25 per trade or 2.5% of Rs 20 or 0.05% per
the trade value whichever executed order
is lower.
3 in 1 account
Automated trading
SMS Alerts
Online demo
Online portfolio
(TABLE-16)
Ratings:
IDBI Capital Groww
Fees
Brokerage
Trading
Platform
Page | 45
IDBI Capital Groww
Customer
Service
Research
Capabilities
Overall Ratings
IDBI Capital is rated 2.6 of 5 based Groww is rated 4.1 of 5 based

Broker Rating
on 41 customer reviews on 60 customer reviews
2.Bank Brokers:
• ICICI Direct:
ICICIdirect is one of the largest retail stock brokers in India. It is part of the ICICI
Group. It offers online trading and investment services. ICICIdirect offers more than
50 products and services like Equity, Mutual Funds, Derivatives, Futures and Options
Currency, Commodity, ETF, Insurance, IPOs, Corporate Fixed Deposits, Loans, NPS,
Wealth Management, Corporate Services, NRI Services, Portfolio Management
Services, Global Investment, Financial Learning, Tax Services etc.
Page | 46
ICICIdirect offers a unique and wide range of Products and features like One Click
Equity, Margin Trading Funding (MTF), Smart Trading features and ease of investing
in equity with Systematic Equity Plan and much more.
IDBI Capital ICICI Direct
Type of Broker Full-service broker Full-service broker
Minimum Brokerage Rs 25 per trade or 2.5% of Rs 35 per trade (I-Secure
the trade value whichever Plan)
is lower.
3 in 1 account
Automated trading
SMS Alerts
Online demo
Online portfolio
(TABLE-18)
Page | 47
Ratings:
IDBI Capital ICICIdirect
Fees
Brokerage
Trading Platform
Customer Service
Overall Ratings
IDBI Capital is rated 2.6 of 5 ICICIdirect is rated 2.4 of 5

Broker Rating
based on 41 customer reviews based on 462 customer reviews
• Kotak Securities:
Incorporated in 1994, Kotak Securities Ltd is a full-service stock broker offering 3-in-
1 account (Bank + Trading + Demat Account) to retail investors in India. It offers
investment in equities, derivatives (equities, commodities, currency) and mutual funds.
It also offers services like Portfolio Management services (PMS), research, margin
trade funding, depository services and third-party products like insurance. The
company also provides direct access to the US markets.
Page | 48
Kotak Securities is a subsidiary of Kotak Mahindra Bank, one of the leading private
banks in India. Kotak Securities offer its services through 153 branches and 1332
franchisees across 361 cities.
IDBI Capital Kotak Securities
Minimum Brokerage Rs 25 per trade or 2.5% of Rs 21 per executed order
is lower.
3 in 1 account
Automated trading
SMS Alerts
Online demo
Online portfolio
(TABLE-20)
Page | 49
Ratings:
IDBI Capital Kotak Securities
Fees
Brokerage
Trading
Platform
Customer
Service
Research
Capabilities
Overall Ratings
IDBI Capital is rated 2.6 of 5 Kotak Securities is rated 2.4 of 5

Broker Rating
• HDFC Securities:
Incorporated in 2000, HDFC Securities is one of the leading full-service stock
brokers in India. HDFC Securities is a subsidiary of HDFC Bank. The company
Page | 50
allows its customers to trade and invest in shares, bonds, futures, options, buybacks,
mutual funds, IPOs, currency derivatives, commodities, stock portfolios, etc.
HDFC Securities charges the lowest brokerage of 0.10% per trade for Equity Delivery
and Rs 20 per transaction for derivatives trading. HDFC Securities provides trading
services through multiple trading platforms to make customers' investment
experience hassle-free and seamless.
IDBI Capital HDFC Securities
Minimum Brokerage Rs 25 per trade or 2.5% of Rs. 25 per order on equity
the trade value whichever segment
is lower.
3 in 1 account
Automated trading
SMS Alerts
Online demo
Online portfolio
(TABLE-22)
Page | 51
Ratings:
IDBI Capital HDFC Securities
Fees
Brokerage
Trading Platform
Customer Service
Overall Ratings
HDFC Securities is rated 2.1

IDBI Capital is rated 2.6 of 5
Broker Rating of 5 based on 220 customer
based on 41 customer reviews
reviews
• AXIS Direct:
Incorporated in 2005, Axis Securities Ltd is part of Axis Bank, a leading private bank
in India. Axis Sec is a full-service broker offering stock broking services and
distribution of financial products to retail customers in India through its Axis
Direct brand. Axis Direct is among top 10 stock brokers in India with over 4.2 lakhs
active customers.
Page | 52
Axis Direct offers investment in Equities, Mutual Fund, SIP, IPO, Derivatives, Bond,
NCD, ETF and Company Fixed Deposits. Axis Sec also offers Home Loans, Auto
Loans, Personal Loans, Loan against Property, Loan against Shares and Loans for SME,
Credit and Prepaid Cards.
IDBI Capital AXIS Direct
Minimum Brokerage Rs 25 per trade or 2.5% of Rs 20 per trade
is lower.
3 in 1 account
Automated trading
SMS Alerts
Online demo
Online portfolio
(TABLE-24)
Page | 53
Ratings:
IDBI Capital Axis Direct
Fees
Brokerage
Trading
Platform
Customer
Service
Research
Capabilities
Overall Ratings
IDBI Capital is rated 2.6 of 5 Axis Direct is rated 2.0 of 5

Broker Rating
SWOT ANALYSIS:
Strengths:
• IDBI Capital offers 3-in-1 account wherein your trading, demat and bank
account are linked to each other. You can link savings account maintained with
IDBI Bank, HDFC Bank, Axis Bank, ICICI Bank, PNB, Vijaya Bank, OBC,
Union Bank of India, Karur Vysya Bank & Lakshmi Vilas Bank with the trading
Page | 54
account. However, to avail a 3-in-1 account, you must have a savings account
with IDBI/HDFC Bank/Axis Bank/ICICI Bank.
• Strong research services
• Facility to invest in equities, F&O, Mutual Funds etc. from a single platform.
• Offers both online and offline trading services
• Brokerage plans for both low volume and high-volume traders
• Call & Trade and Dealer assisted trading services
Weakness:
• Lack of awareness among customers because of non-aggressive promotional
strategies (print media, newspapers, etc).
• Lesser emphasis on customer retention.
• Focuses more on HNIs than retail investors which results in meagre market- Share as
compared to close competitors.
• Promotional activities conducted by the company are not at par with the other Firms
Opportunities:
• With the booming capital market, it can successfully launch new services and
raise its client’s base.
• It can easily tap the retail investors with small saving through promotional
Channels like print media, electronic media, etc.
Page | 55
• As interest on fixed deposits with post office and banks are all time low, more and
more small investors are entering into stock market.
• Abolition of long-term capital gain tax on shares and reduction in short term
capital gain is making stock market as hot destination for investment among small
investors.
• Increasing usage of internet through broadband connectivity may boost a whole
new breed of investors for trading in securities.
Threats:
• Aggressive promotional strategies by close competitors may hamper IDBI Capital
Markets & Securities Ltd.’s acceptance by new clients.
• Lack of sufficient branch-offices for speedy delivery of services.
• More and more players are venturing into this domain which can further reduce the
earnings of IDBI Capital Markets & Securities Ltd.
• Availability of Unit Linked Insurance Policies (ULIP’s) and mutual funds in the
market.
Page | 56
CHAPTER 4
❖DATA ANALYSIS & INTERPRETATION
Page | 57
DATA ANALYSIS & INTERPRETATION
1. Do you know about online trading?
OPTIONS NO. OF RESPONDENTS PERCENTAGE (%)
YES 36 72%
NO 14 28%
TOTAL 50 100%
(TABLE-26)
Fig3
28%
Yes
72% No
Interpretation: From the above chart and table, we concluded that 72% of the
respondents are aware about online trading in the stock market while 28% are unaware.
Page | 58
2. Do you have a Demat account?
YES 19 38%
NO 31 62%
TOTAL 50 100%
(TABLE-27)
Fig 4
38%
Yes
62%
No
respondents do not have a demat account while 38% have it.
Page | 59
3. Do you feel safe while trading online?
YES 27 54%
NO 23 46%
TOTAL 50 100%
(TABLE-28)
Fig 5
46%
54%
Yes
No
respondents feel safe while trading online, whereas others are not.
Page | 60
4. What kind of investment you prefer most?
PROPERTY & GOLD 16 32%
FIXED DEPOSITS 8 16%
SHARES & 9 18%
DEBENTURES
MUTUAL FUND 17 34%
TOTAL 50 100%
(Table-29)
Fig6
34% 32%
Property &Gold
Fixed deposits
Shares and debentures
16%
18% Mutual fund
respondents invest in shares and debentures, 34% invest in mutual fund, 32% invest in
properties & gold and 16% invest in fixed deposits.
Page | 61
5. Do you receive updated online information regarding the stock market from
your dealer/broker?
YES 32 64%
NO 18 36%
TOTAL 50 100%
(TABLE-30)
36%
Yes
64%
No
fig7
respondents receive updated online information regarding the stock market from their
dealer/ broker while 36% do not.
Page | 62
6. Do you believe that your trader/broker is very successful in online trading?
STRONGLY AGREE 9 18%
AGREE 12 24%
MODERATE 17 34%
DISAGREE 8 16%
STRONGLY DISAGREE 4 8%
TOTAL 50 100%
(Table-31)
8%
18%
16%
Strongly agree
Agree
24%
Moderate
34% Disagree
Strongly disagree
fig8
respondents agree that their broker is very successful in online trading, whereas 18%
strongly agree, 16% disagree, 8% strongly disagree and 34% have moderate views.
Page | 63
7. Do you think IDBI Capital Markets & Securities' stock brokerage services are
satisfactory?
STRONGLY AGREE 6 12%
AGREE 11 22%
MODERATE 18 36%
DISAGREE 10 20%
STRONGLY DISAGREE 5 10%
TOTAL 50 100%
(Table-32)
Fig9
10% 12%
20% Strongly agree

22%
Agree
Moderate
Disagree
36%
Strongly disagree
respondents find the stock broking services of IDBI Capital satisfactory, whereas 12%
strongly agree, 20% disagree 10% strongly disagree and 36% have moderate views.
Page | 64
8.What percentage of your annual income do you invest in share market?
MORE THAN 20% 4 8%
10-15% 11 22%
UP TO 10% 35 70%
TOTAL 50 100%
(TABLE-33)
8%
22%
UPTO 10%
10-15%
70%
More than 20%
fig10
respondents invest only up to 10% of their annual income in share market.
While 22% of the respondents invest 10-15% of their annual income and 8% people
invest more than 20% of their annual income in the share market.
Page | 65
9. No. of years of online trading experience in the stock market?
5-10 YEARS 13 26%
BELOW 5 YEARS 37 74%
TOTAL 50 100%
(Table-34)
26%
Below 5years
74% 5-10 years
fig11
respondents have online trading experience of below 5 years, whereas 26% have the
experience of 5-10 years.
Page | 66
10. How was your DMAT Account opened?
REFERRAL CLIENTS 8 16%
PERSONAL 11 22%
ACCQUAINTANCE
CALL/WALK-IN 9 18%
OTHERS 22 44%
TOTAL 50 100%
(TABLE-35)
Fig12
16%
44% Referral clients

22%
Personal accquaintance
Call/ Walk in
18% Others
Interpretation: From the above chart and table, we concluded that 16% of
respondents’ account was opened through referral clients, 22% through personal
acquaintance, 18% through call/walk in, and 44% through others.
Page | 67
11. What is your opinion about the E-Margin facility of IDBI Capital?
EXCELLENT 9 18%
GOOD 21 42%
AVERAGE 12 24%
POOR 8 16%
TOTAL 50 100%
(TABLE-36)
16% 18%
Excellent
24% Good
Average
42%
Poor
fig13
respondents find the E-Margin facility of IDBI Capital good, 18% find it excellent, 24%
think it is average and 16% people find it poor.
Page | 68
12. Are you aware of T+2 method of trading?
YES 22 44%
NO 28 56%
TOTAL 50 100%
(TABLE-37)
44%
56% Yes
No
fig14
respondents are unaware about the T+2 method of trading, whereas 44% are aware
about the method.
Page | 69
13.Do you feel that there is more transparency in online trading?
YES 26 52%
NO 24 48%
TOTAL 50 100%
(TABLE-38)
Fig15
48%
52%
Yes
No
respondents think that there is more transparency in online trading whereas 52% denies
it.
Page | 70
14. Any other company whose service you like?
ZERODHA 12 24%
UPSTOX 7 14%
IDBI CAPITAL 7 14%
ICICI DIRECT 9 18%
KOTAK SECURITIES 8 16%
HDFC SECURITIES 7 14%
TOTAL 50 100%
(TABLE-39)
14%
24%
Zerodha
16% Upstox
IDBI Capital
14%
ICICI Direct
18%
14% Kotak securities
HDFC securities
fig16
Interpretation: From the above chart and table, we concluded that 24% of respondents
choose Zerodha's service, 18% like ICICI Direct, 16% prefer Kotak Securities, 14%
prefer IDBI Capital, 14% like Upstox, and 14% choose HDFC Securities.
Page | 71
15. Investors as per age group:
AGE NO. OF RESPONDENTS PERCENTAGE (%)
15-30 29 58%
31-45 12 24%
45- above 9 18%
TOTAL 50 100%
(TABLE-40)
18%
15-30
24% 58%
31-45
45-Above
fig17
respondents are between the age group of 15-30, 24% are of the age group 31-45 and
18% are of the ages of 45 and above.
Page | 72
16. What is your income (yearly based)?
INCOME NO. OF RESPONDENTS PERCENTAGE (%)
1 LAKHS OR LESS 14 28%
2-3 LAKHS 10 20%
4-5 LAKHS 10 20%
MORE THAN 5 LAKHS 16 32%
TOTAL 50 100%
(TABLE-41)
Fig18
32% 28%
1 Lakh or less
2-3 Lakhs
4-5 lakhs
20%
20% More than 5 Lakhs
Interpretation: From the above chart and table, we concluded that 32% of investors
earn more than 5 lakhs each year. While 20% of the respondents have an income of 4-
5 lakhs, 20% have an income of 2-3 lakhs, and 28% have an income of 1 lakh or less.
Page | 73
CHAPTER 5
❖FINDINGS
❖SUGGESTIONS
❖CONCLUSION
Page | 74
FINDINGS
• Most of the investors are of the age group 15-30.
• Many investors are aware about online trading and they believe that online
trading provides transparency.
• Majority of investors only invest up to 10% of their annual income.
• Online trading apps are more popular among investors. Trading apps like
Zerodha, Upstox, Groww are getting popular day by day.
• IDBI Capital has a great competition with other broking agencies like Kotak
Securities, ICICI Direct, Axis securities.
Page | 75
SUGGESTIONS
• IDBI Capital can improve in those areas, where service provided by other major
competitors is very strong.
• IDBI Capital should try to increase the awareness level of the company among
the public.
• The organization's growth can be aided by strategic promotions aimed at young
people between the age group of 18-35.
• 24*7 customer support can increase the brand value of the organisation.
• To raise awareness and popularity among young people, IDBI Capital could
hold "Investors Bootcamp" events at universities.
Page | 76
CONCLUSION
Contribution to capital market is very important, it reduces the gap between capital
deficit and capital revenue. So, we should increase the various way to invest more.
Online trading platform plays a vital role in economic development and hence everyone
should encourage the online trading. Slowly more investors are attracted towards online
trading. In the post-pandemic world, the number of demat accounts have jumped 2.2
times. The number of active dematerialised (demat) accounts in the country is 89.7
million in the financial year 2021-22 (FY22). Currently, more than 80 per cent of the
total customer base is millennials, more than 85 per cent from tier-2 and tier-3 cities,
and 70 per cent are first-time investors. To raise awareness and popularity among young
people, broking agencies should host "Investors Bootcamp" events at universities. The
investor should learn about the development taking place in the market place. Investor
should keep in mind before investing in share market that trading has both positive and
negative effects. The various teaching programmed should be launched to make aware
the client with respect to online trading.
Page | 77
ANNEXURE
Page | 78
BIBLIOGRAPHY
RESEARCH PAPERS:
• Barber B, Odean T (2002) ‘Online Investors: Do the Slow Die First?’ Review of
Financial Studies, volume 15, p. 455 – 488
• Alryalat Haroun, Kuljis Jasna, Paul Ray J (2006) ‘A critical review to analyse
the effect of online and traditional trading on effective market performance on
the Nasdaq’ International Journal of Electronic finance, volume 1, issue 2,
p. 151 - 170
• Walia Nidhi, Kumar Ravinder (2007) ‘Online Stock Trading in India: An
Empirical Investigation’ Indian Journal of Marketing, volume 37, issue 4
• Srivastava Dr. Sarika (2011) ‘Impact of Internet Growth on the Online Stock
Trading in India’ Journal of Internet Banking and Commerce, volume 16, issue3
• Davies R, Cunningham S (2012) ‘A Review of Online Trading and User
Perceptions of Usability and Trust’ Journal of Advanced Internet of Things
p. 1- 23.
• Rahim Dr. Abdhul (2013) ‘A study on the problems faced by investors towards
online share trading’ International Journal of Marketing, Volume-2, No.4
• Ancuta P (2015) ‘Benefits and Drawbacks of Online Trading’, Volume. 1(1),
p.1253-1259
• A. Bade (2017) ‘Analysis Demat account and online trading’ Scholarly
Research Journal for Interdisciplinary Studies, Volume 4, No 30, p. 4921-4924
Page | 79
WEBSITES:
• http://www.idbicapital.com
• http://www1.nseindia.com
• http://www.bseindia.com
• http://www.moneycontrol.com
• http://www.investopedia.com
• http://www.chittorgarh.com
• http://www.statista.com
• http://www.top10stockbrokers.com
• http://www.zerodha.com
• http://www.kotaksecurities.com
• http://www.slideshare.net
• http://www.icicidirect.com
• http://www.scholar.google.com/citations
NEWSPAPERS:
• The Economic Times
• Business Standard
• Mint
BOOKS:
• Prasanna Chandra (2018). Investment Analysis & Portfolio Management,
McGraw Hill Education (India) Private Limited.
• Vasant Desai (2016). Financial Markets and Financial Services, Himalaya
publishing house.
Page | 80
Questionnaire
Dear Sir/Madam,
I am Aditi Sarangi, a student of IMBA Department at BJB Autonomous College,
Bhubaneswar. For the partial fulfilment of my Bachelor of Business Administration, I
am undertaking a project and my topic is “A STUDY OF ONLINE TRADING IN
INDIAN STOCK MARKETAT IDBI CAPITAL MARKETS & SECURITIES LTD."
In order to make this study successful, I seek your precious time and kind co-operation
in answering the questions mentioned below related to my topic of study. The
information shared by you will be kept confidential and authentic to your knowledge
and will be only used for academic purpose only.
Page | 81
Page | 82
Page | 83
Page | 84
Page | 85
Page | 86

Aditi Sarangi SIP 2022

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Aditi Sarangi SIP 2022

Uploaded by

Copyright:

Available Formats

“A STUDY OF ONLINE TRADING IN INDIAN STOCK MARKET

AT IDBI CAPITAL MARKETS & SECURITIES LTD.”

Project Report submitted in partial fulfillment for the degree of

Under the guidance of

B.J.B. AUTONOMOUS COLLEGE, BHUBANESWAR

Mr. Subhajit Raul

research project work on “A STUDY OF ONLINE TRADING IN INDIAN STOCK

MARKET AT IDBI CAPITAL MARKETS & SECURITIES LIMITED” and submitted

Autonomous College, Bhubaneswar under my supervision and guidance.

else to any other University or Institution.

“A STUDY OF ONLINE TRADING IN INDIAN STOCK MARKET AT IDBI

degree of BBA to IMBA Department, BJB Autonomous College, Bhubaneswar, is the

Date: - Aditi Sarangi

consider myself as a very lucky individual as I was provided with an opportunity to be

and professionals who led me through this internship period.

I am using this opportunity to express my deepest gratitude and special thanks to

other academic and professional commitments. His wisdom, knowledge, and

SUBJECT ITEMS PAGE NO.

SL TABLE NAME PAGE NO.

SL FIGURE NAME PAGE NO.

Fig Number of active demat accounts 18

customer satisfaction is only thing that make a business successful.

OBJECTIVES OF THE STUDY

• To study the concept of online trading.

• To study the current online trading scenarios.

• To know the customer awareness level regarding online trading.

• To make a comparative analysis of competitors of IDBI Capital Markets &

to day decisions and critical ones.

Research Design: Exploratory Research

Data Collection method: Questionnaire Method

Sample Size: 50 respondents

• Registered Candidates (Students or Graduated Students)

• Clients of IDBI Capital

• SECONDARY DATA: - Secondary data is collected from previous researches and

Text, books, Articles, Journals, and Websites

Data Collection Instrument: Structured Questionnaire

SCOPE & LIMITATIONS OF THE STUDY

1. SCOPE OF THE STUDY:

the facilities of online trading platform of the company.

offered to the customer.

level on the online trade facilities.

this research and make better financial decisions.

trading in Indian stock market.

2. LIMITATIONS OF THE STUDY:

every criterion in this study.

• Some of the information given by the respondents may be biased.

• The respondents’ behaviour changes according to stock market fluctuations.

• It is always a problem to get an enthusiastic response. There were not many

willing participants; lack of cooperation remains an aberration in most of

the survey-based researches.

❖CONCEPTUAL STUDY OF THE PROJECT

companies to raise funds.

Overview of Indian Stock Market:

adhering to SEBI's well-defined guidelines.

• Bombay Stock Exchange (BSE)

• National Stock Exchange (NSE)

mechanism, trading hours, and settlement process.

of March 31, 2021.

stock exchanges within a very tight range.

NUMBER OF COMPANIES LISTED IN NSE AND BSE

FY 2017 FY 2018 FY 2019 FY 2020 FY 2021

(Source: www.statista.com) fig.1

and sellers remain anonymous.