CHAPTER I

INTRODUCTION:
India is well-established securities market with long history of
organized trading. The growth in the stock exchanges of the country is
spectacular and can be attributed to increase in the number of instruments
offered, listed companies and tight credit policy of banks. As a result of
which Indian corporate sector has been relying upon capital markets for
raising funds for their needs. Consequently, a large population of the
investors small and big has been created in India.
The project I undertaken in this context is to study ONLINE
TRADING and growth of STOCK EXCHANGE.

NEED FOR THE STUDY:

The present study to review the online trading procedure a case study
of ONLINE TRADING at ANGEL., as the exchange has changed its trading
from the outcry mode to online trading from 1994, there is need to assess
the performance of the capital market.

The major need for this study is to know the effectiveness of the online system in comparison with the outcry or mock trading to study its
2

advantages & recommend for beneficial & effective use of the system. The
study also include the emergence of the Depository system in the country
to rule out the drawbacks of the system of physical transfer of the shares.

OBJECTIVES OF THE STUDY:

To analyze the changes in trading after the exchange shifted from
outcry to online trading system.
It is to study the functions of ANGEL through various departments.
To know the online screen based trading system adopted by ANGEL
and about its communication facilities. The appropriate configuration
to set the network, which would link the ANGEL to individual /
members.
To know about the latest and future development in the stock
exchange trading system.
To analyze the equity behavior of particular companies (RCL and DLF
ltd)

METHODOLOGY OF THE STUDY:

The uncertainty and the rapid fluctuation in the Indian capital market
made many investor at home and foreign wary about the future of their
investments. So in order to lessen this uncertainty in the market, SEBI
introduced many new trends by making changes in the way the capital
market functions by introducing online trading, rolling settlement,
dematerialization of shares, etc. This project is only an attempt to find
the effect if these trends on the Indian markets. This study is done with
reference of ANGELBROKING LTD.
The data collection methods include both primary and secondary
collection methods.

PRIMARY METHOD:
This method includes the data collected from the personal interaction
with authorized members of ANGEL BROKING LTD .

SECONDARY METHOD:
The secondary data collection method includes:

The lecturers delivered by the superintendents of respective

departments.

The brochures and material provided by ANGEL BROKING LTD .

The data collected from the magazines of the NSE, economic

times, etc.

Various books relating to the investments, capital market and

other related topics
4

LIMITATIONS OF THE STUDY

Online Trading has the following limitations:
1. The study is confined to online trading procedure only.
2. ANGEL is a private player
3. The study is conducted for a short period of 2 months

4. Problems of listing are not covered due to limited time and to keep the
study in manageable limits.
5. A detailed knowledge of the competitor product is very much required
in this field.
6. Because of the fluctuations in the market it is a tough task.
7. There is no much awareness about the Online trading in India.

CHAPTER II

EVOLUTION OF BROKING IN INDIA:

The evolution of a broking in India can be categorized in three phases

Stockbrokers will offer on their sites features such as live portfolio

manager, live quotes, market research and news, etc. to attract
more investors.

Brokers will offer online broking and relationship management by

providing and offering analysis and information to investors
during broking and non-broking hours based on their profile and
needs, i.e. customized services.

Brokers (now e-brokers) will offer value management or services

like initial public offering online, on-line asset allocation, portfolio
management, financial planning, tax planning, insurance services,
etc. and enables the investors to take better and well considered
decisions.

The actual definition of Online Trading is as explained below:

Online trading is a service offered on the internet for purchase and sale of
shares. (In other words the increasingly popular activity of buying and
selling securities over the internet, or to a lesser extent, through a brokers
proprietary software.) In the real world you place orders on your
stockbroker either verbally (personally or the stockbrokers website through
8

your internet enabled PC and place orders through the brokers internet
based trading engine. These orders are routed to the stock exchange
without manual intervention and executed thereon in a matter of a few
seconds.
The net is used as a mode of trading in internet trading. Orders are
communicated to the stock exchange through website.

IN INDIA:
Internet trading started in India on 1 st April 2000 with 79 members seeking
permission for online trading. The SEBI committees on internet based
securities trading services has allowed the net to be used as an Order
Routing System (ORS) through registered stock brokers on behalf of their
clients for execution of transaction. Under the ORS the client enters his
requirements (security, quantity, price buy/sell) on brokers site.

OBJECTIVES:
Internet trading is expected to

Increase transparency in the markets,

Enhance market quality through improved liquidity, by increasing

quote continuity and market depth,

Reduce settlement risks due to open trades, by elimination of

mismatches,

Provide management information system,

Introduce flexibility in system, so as to handle growing volumes

easily and to support nationwide expansion of market activity.
9

Besides, through internet trading three fundamental objectives of

securities

regulation can be easily achieved, these are:

Investor protection lephonically or in a written form (fax). In

online trading, you will access a

Creation of a fair and efficient market, and

Reduction of the systematic risks.

Some of the brokers offering net trading include ICICI direct, kotakstreet,
etc.

REQUIREMENTS FOR NET TRADING:

For investors:
1. Installation of a computer with required specification
2. Installation of a modem
3. Telephone connection
4. Registration for on-line trading with broker
5. A bank account
6. Depository account
7. Compliance with SEBI guidelines for net trading

The following should be produced to get a demat account

and online trading account:
10

As identity proof:

PAN card(mandatory)
For address proof any one of the following:

Voter ID card

Driving license

Ration card

Bank pass book

Telephone bill

Other requirements, which are necessary

First page of the bank pass book and last 6 months statement.

Bank

managers

signature

along

with

banks

seal,

manager

registration code on photograph.

FOR STOCK BROKERS:

1. Permission from stock exchange for net trading
2. Net worth of Rs. 50 lac
3. Adequate back-up system
4. Secured and reliable software system
5. Adequate, experienced and trained staff
6. Communication of order (trade confirmation to investor by e-mail)
7. Use of authentication technologies
8. Issue of contract notes within 24 hours of the trade execution
9. Setting up a website.
11

The net is used as a medium of trading in internet trading. Orders are

communicated to the stock exchange through website. Internet trading
started in India on 1st April 2000 with 79 members seeking permission for
online trading. The SEBI committees on internet based securities trading
services has allowed the net to be used as an Order Routing System (ORS)
through registered stock brokers on behalf of their clients for execution of
transaction.
Under the Order Routing System the client enters his requirements
(security, quantity, price, and buy/sell) in broker's site. They are checked
electronically against the clients account and routed electronically to the
appropriate exchange for execution by the broker. The client receives a
confirmation on execution of the order. The customer's portfolio and ledger
accounts get updated to reflect the transaction. The user should have the
user id and password to enter into the electronic ring. He should also have
demat account and bank account. The system permits only a registered
client to log in using user id and password. Order can be placed using place
order window of the website.

PROCEDURE FOR NET TRADING

Step 1: Those investors, who are interested in doing the trading over
internet system i.e. NEAT-IXS, should approach the brokers and get
them self registered with the Stock Broker.
Step 2: A and personal identification number (PIN).
Step 3: Actual placement of an order. An order can then be placed by
using the place order window as under:
12

(a) First by entering the symbol and series of stock and other
parameters like

quantity and price of the scrip on the place order

window.
(b) Second, fill in the symbol, series and the default quantity.
Step 4: It is the process of review. Thus, the investor has to review the
order placed by clicking the review option. He may also re-set to clear
the values.
Step 5: After the review has been satisfactory, the order has to be sent
by clicking on the send option.
Step 6: The investor will receive an "Order Confirmation" message along
with the order number and the value of the order.
Step 7: In case the order is rejected by the Broker or the Stock
Exchange for certain reasons such as invalid price limit, an appropriate
message will appear at the bottom of the screen. At present, a time lag of
about 10 seconds is there in executing the trade.
Step 8: It is regarding charging payment, for which there are different
mode. Some brokers will take some advance payment from the investor
and will fix their trading limits. When the trade is executed, the broker
will ask the investor for transfer of funds to his account.
Internet trading provides total transparency between a broker and an
investor in the secondary market. In the open outcry system, only the
broker knew the actually transacted price. Screen based trading
provides more transparency. With online trading investors can see
themselves the price at which the deal takes place.
The time gap has narrowed in every stage of operation. Confirmation
and execution of trade reaches the investor within the least possible
13

time, mostly fter registration, the broker will provide to them a Log and
personal identification number (PIN).
The time gap has narrowed in every stage of operation. Confirmation
and execution of trade reaches the investor within the least possible
time, mostly in name, Password within 30 seconds. Instant feedback is
available about the execution. Some of the websites also offer;

News and research report

BSE and NSE movements

Stock analysis

IPO and mutual fund centers.

STEP BY STEP PROCEDURE IN ONLINE TRADING:

Following steps explain the step by step approach to on-line trading:

Log on to the stock broker's website

Register as client/investor

Fill the application form and client broker agreement form on the
requisite value stamp paper

Obtain user ID and pass word

Log on to the broker's site using secure user ID and password

Market watch page will show real time on-line market data

Trade shares directly by entering the symbol or number of the

security

Brokers server will check your limit in the on-line account and demat
account for the number of shares and execute the trade

Order is executed instantly (10-30 seconds) and confirmation can be

obtained
14

Confirmation is e-mailed to investor by broker

Contract note is printed and mailed in 24 hours

Settlement will take place automatically on the settlement day

Demat account and the bank account will get debited and credited by
electronic means.

ONLINE TRADING HAS LED TO ADDITIONAL FEATURES

SUCH AS:

Limit / stop orders: orders that can be go unfilled, but there is an

extra Charge for this leeway facility since one need to hold a price.

Market orders:

orders can be filled at unexpected prices, but this

type is much more risky, since you have to buy stock at the given
price.

Cash account: where funds have to be available prior to placing the

order.

Margin account: where orders can be placed against stocks, to

increase Purchasing power.

ADVANTAGES OF ONLINE TRADING:

Online trading has made it possible for anyone to have easy and
efficient access to more reports and charts than it was previously
possible if one went to any brokers' office. Thus we have access to a
lot more information online.

Online trading has let room for smaller organizations to compete with
multinational organizations since it is no longer a leg it issue. Being
online does not identify the size of any particular organization,
therefore, this additional power to the underdogs.
15

Online trading has allowed companies to locate themselves where

they want as physical location is not an issue anymore.

Companies can establish themselves according to their gains and

losses, for instance where tax (sales and value added taxes) is best
suited to them.

Online trading gives control to individuals and they can exercise it

over accounts thus comprehend what is going on when they trade. It
is like going back to school and re-educating oneself on how to trade
online.

Individuals benefit by saving comparatively a lot more when trading

online as the cost per trade is less.

Individuals can invest in a variety of products, unlike earlier when

people bought bonds, mutual funds, and stock for long-term basis
and sat on them. Now they can invest in stocks, stock and index
options mutual funds, government, and even insurance.

INVESTORS REASONS TO TRADE ONLINE:

They have control over their accounts, can make their own decisions
and dont have to give reasons for their actions. They are
independent.

They have a reason to participate in the market and learn about it.

It is interesting, cheap, easy, fast, and convenient.

A lot of information is online so they can keep up-to-date with what is

happening in the trading world.

It will give investors a greater choice and better realization.

The immediate impact will be competition and benefits will accrue to

the investors.
16

It will lead to brokerage commissions going down and brokers striving

to increase business afloat.

Investors will now go to place, which have better trading conditions

and also members to offer them better facilities.

HERE ARE THE POSSIBLE DISADVANTAGES:

When network crashes, there will be problems and delays due to a

large influx of rapid online trading criteria.

Individuals are restricted to first-hand financial guidance. This

simply means that the individual is himself / herself alone to.

A tax (sales tax and value added tax) evaluation becomes an issue,
especially when you are trading internationally. One has no idea with
whom he is dealing with on the other end.

According to a study conducted by Mary Rowland, careful investor: is

online trading bad for your portfolio, the more one trades the less
returns one gets, meaning that an addicted trader gets, carried away
online and begins to trade for too much which causes losses for him /
her.

Individuals think that they are trading with the market directly and
know what they are doing, but the truth is that even though
technology has taken over, the basic rules of trading are the same. It
seems that the middleman has been removed, but that is not so.
17

When the individuals click on the mouse, his trade goes through a
broker. The commissions online pertain to the intermediary.

There is a need for more effective communication links over the

Internet and the ability of the server to deal with a large volume of
visitors.

BROKER ADVANTAGES:
Despite the popularity of online trading, not everybody uses the
Internet to trade stock. A live broker offers services that you just cant
get online the benefits of using a broker, and also tells you if you
might be better of trading online. A broker can do everything from
making all your stock trading decisions for you, to giving you a little
advice on what to buy or sell. It depends on your relationship and the
brokers services.
If you want some investing help, or if you just want somebody else to
deal with everything, using a broker might be right for you. Brokers
are stock market professionals. They watch the market and deal with
customers like you every day. Therefore, by hiring a broker you may
18

get access to expertise you dont have because brokers monitor the
markers constantly, they may be more active in researching good
stocks than you have time for. Brokers keep in touch with a network
of other professionals, so news and knowledge constantly come their
way. Is a useful resources.
Finally, your broker may offer services other than just trading stocks.
If the want, you can find a broker that will manage your taxes,
insurance, estate, and business. The personal attention available
from a broker who knows your full financial situation is very
valuable.

Now that you know how a broker can benefit you, its also important
to consider the drawbacks of using a broker.

BROKER DISADVANTEGES:
While stock brokers offer valuable services to their clients, there are some
drawbacks to using a broker. Always remember that your stock broker is a
salesperson. The broker gets paid though one or more of the following
methods.
Taking a percentage of your assets under management, making
stock trade ( commission), taking a flat fee.
Of course brokers offer valuable services that nobody would
provide for fee, but make sure you get what youre paying for.
19

Because stock brokers get paid through the methods above, it is

important to watch out for some common ways they may take
advantage of you.
However, I must stress that the brokerage industry is highly
regulated, and most brokers act with integrity. Nonetheless, it is
best to be aware of the risks.
First, make sure you get the attention you deserve: if your broker
is constantly looking for new clients, he or she cant spend much
time following the markets and monitoring your account.
Get a feel for how much time your spends marketing and how
much attention your assets will receive.
If your broker get paid a commission for trading, keep in mind that
there may be a conflict of interest.
Your broker may trade excessively to generate high commissions
(this is called churning).
Make sure your broker can consistently justify any and all stock
traders.
Another pitfall of using a broker is that it may be hard to get a
hold of your broker in a timely fashion.
If you decide to make a trade in your account, you have to get your
broker on the phone, and have the broker enter yout order.
Think of the delay involved from your decision to trade to the
orders actual entry.
If you are a fear of missing the boat you may opt for online trading.
Also, because brokers have a variety of clients and may offer a
variety
20

of services, your broker may be a generalist. That is fine for

general
investing, but you may want to focus your investments ( for
example, perhaps youre interested in technology stocks or
international stocks).
Find out about your brokers background and interest to see if he
or she is a good match.
Finally, live brokers are more expensive than online brokers. Their
presence and personal attention command a price. You need to
make sure that the price is worth it to you.

Meaning of demat:
A demat account allows you to buy, sell and transact shares without the
endless paperwork and delays. It is also safe, secure and convenient.

What is demat account?

Demat refers to a dematerialized account.
Just as you have to open an account with a bank if you want to save your
money, make cheque payments etc, you need to open a demat account if
you want to buy or sell stocks. So it is just like a bank account where
actual money is replaced by shares

Why demat?
1. The demat account reduces brokerage charges.

21

2. It enables quick ownership of securities on settlement resulting in

increased

liquidity,

3. It avoids confusion in the ownership title of securities, and provides easy

receipt of public issue allotments.
4. It also helps you avoid bad deliveries caused by signature mismatch,
postal delays and loss of certificates in transit.
5. It eliminates risks associated with forgery, counterfeiting and loss due to
fire, theft or mutilation.
6. Demat account holders can also avoid stamp duty (as against 0.5 per
cent payable on physical shares), avoid filling up of transfer deeds.

Steps involved in opening a demat account:

Opening an individual demat account is a two-step process:
1. Approaching a DP and fill up the demat account-opening booklet. The
Web sites of the NSDL and the CDSL list the approved DPs.
2. We receive an account number and a DP ID number for the account.

The cost of opening and holding a demat account.

There are four major charges usually levied on a demat account:
1. Account opening fee
2. Annual maintenance fee
22

3. Custodian fee
4. Transaction fee.

Account-opening fee
Depending on the DP, there may or may not be an opening account fee.
Private Banks, such as ICICI Bank, HDFC Bank and UTI Bank, do not have
one.
Players such as Karvy Consultants and the State Bank of India do so. This
fee is refundable

Annual maintenance fee

This is also known as folio maintenance charges, and is generally levied in
advance.

Custodian fee
This fee is charged monthly and depends on the number of securities
(international securities identification numbers ISIN) held in the
account. It generally ranges between Rs 0.5 to Rs 1 per ISIN per month.
DPs will not charge custody fee for ISIN on which the companies have paid
one-time custody charges to the depository.

Transaction fee

23

The transaction fee is charged for crediting/debiting securities to and from

the account on a monthly basis.
While some DPs, such as SBI, charge a flat fee per transaction, HDFC
Bank and ICICI Bank peg the fee to the transaction value, subject to a
minimum amount.
The fee also differs based on the kind of transaction (buying or selling).
Both Service tax is also charged.

DEMAT BENEFITS:
The benefits are enumerated below:-

A safe and convenient way to hold securities;

Immediate transfer of securities;

No stamp duty on transfer of securities;

Elimination of risks associated with physical certificates such as bad

delivery, fake securities, delays, thefts etc.;

Reduction in paperwork involved in transfer of securities;

Reduction in transaction cost.

No odd lot problem, even one share can be sold;

Nomination facility;

Change in address recorded with DP gets registered with all

companies in which investor holds securities electronically
eliminating the need to correspond with each of them separately;

24

Transmission of securities is done by DP eliminating correspondence

with companies;

Automatic credit into demat account of shares, arising out of

bonus/split/consolidation/merger etc.

Holding investments in equity and debt instruments in a single

account

CONCLUSION:
Developing an effective trading system is by no means an easy task. It
requires a solid understanding of the many parameters available, the ability
to make realistic assumptions, and the time and dedication to develop the
system. However, if developed and deployed properly, a trading system can
yield many advantages. It can increase efficiency, free up time and, most
importantly, increase your profile.

25

CHAPTER-III
26

Following diagram gives the structure of Indian financial

system:

27

FINANCIAL MARKET:

28

Financial markets are helpful to provide liquidity in the system and for
smooth functioning of the system. These markets are the centers that
provide facilities for buying and selling of financial claims and services. The
financial markets match the demands of investment with the supply of
capital from various sources.

According to functional basis financial markets are classified into two types.
They are:
Money markets (short-term)
Capital markets (long-ter)

According to institutional basis again classified in to two types. They are

Organized financial market
Non-organized financial market.
The organized market

comprises of official market

represented by

recognized institutions, bank and government (SEBI) registered/controlled

activities and intermediaries. The unorganized market is composed of
indigenous bankers, moneylenders, individual professional and nonprofessionals.

29

MONEY MARKET:
Money market is a place where we can raise short-term capital.
Again the money market is classified in to types:
They are:
Inter bank call money market
Bill market and
Bank loan market Etc.
E.g.; treasury bills, commercial papers, CD's etc.

CAPITAL MARKET:
Capital market is a place where we can raise long-term capital.
Again the capital market is classified in to two types and they are
Primary market and
Secondary market.
E.g.: Shares, Debentures, and Loans etc.

PRIMARY MARKET:
Primary market is generally referred to the market of new issues or market
for

mobilization

of

resources

by

the

companies

and

government

undertakings, for new projects as also for expansion, modernization,

addition, diversification and up gradation. Primary market is also referred
to as New Issue Market. Primary market operations include new issues of
shares by new and existing companies, further and right issues to existing
shareholders,
30

public offers, and issue of debt instruments such as debentures, bonds,

etc.
The primary market is regulated by the Securities and Exchange Board of
India (SEBI a government regulated authority).

FUNCTIONS:
The main services of the primary market are origination, underwriting, and
distribution. Organization deals with the origin of the new issue.
Underwriting contract make the shares predictable and remove the element
of uncertainty in the subscription. Distribution refers to the sale of
securities to the investors.

The following are the market intermediaries associated with the market:
1.

Merchant banker/book building lead manager

2.

Registrar and transfer agent

3.

Underwriter/broker to the issue

4.

Adviser to the issue

5.

Banker to the issue

6.

Depository

7.

Depository participant

Investors protection in the primary market:

31

To ensure healthy growth of primary market, the investing public should be

protected. The term investor protection has a wider meaning in the primary
market.
The principal ingredients of investors protection are:
Provision of all the relevant information
Provision of accurate information and
Transparent allotment procedures without any bias.

SECONDARY MARKET:
The primary market deals with the new issues of securities. Outstanding
securities are traded in the secondary market, which is commonly known
as stock market or stock exchange. The secondary market is a market
where scrips are traded. It is a market place which provides liquidity to
the scrips issued in the primary market. Thus, the growth of secondary
market depends on the primary market. More the number of companies
entering the primary market, the greater are the volume of trade at the
secondary market. Trading activities in the secondary market are done
through the recognized stock exchanges which are 23 in number including
Over The Counter Exchange of India (OTCE), National Stock Exchange of
India and Interconnected Stock Exchange of India.

Secondary market operations involve buying and selling of securities on the

stock exchange through its members. The companies hitting the primary
32

market are mandatory to list their shares on one or more stock exchanges
in India. Listing of scrips provides liquidity and offers an opportunity to the
investors to buy or sell the scrips.
The following are the intermediaries in the secondary market:
1. Broker/member of stock exchange buyers broker and
sellers broker.
2. Portfolio Manager.
3. Investment advisor.
4. Share transfer agent.
5. Depository.
6. Depository participants.

STOCK MARKETS IN INDIA:

Stock exchanges are the perfect type of market for securities whether of
government and semi-govt bodies or other public bodies as also for shares
and debentures issued by the joint-stock companies. In the stock market,
purchases and sales of shares are affected in conditions of free competition.
Government securities are traded outside the trading ring in the form of
over the counter sales or purchase. The bargains that are struck in the
trading ring by the members of the stock exchanges are at the fairest prices
determined by the basic laws of supply and demand.

DEFINITION OF A STOCK EXCHANGE:

Stock exchange means any body or individuals whether incorporated or
not, constituted for the purpose of assisting, regulating or controlling the
business of buying, selling or dealing in securities.
The securities include:
33

 Shares of public company.

Government securities.
Bonds

HISTORY OF STOCK EXCHANGES:

The only stock exchanges operating in the 19 th century were those of
Mumbai setup in 1875 and Ahmedabad set up in 1894. These were
organized as voluntary non-profit-marking associations of brokers to
regulate and protect their interests. Before the control on securities under
the constitution in 1950, it was a state subject and the Bombay securities
contracts (control) act of 1925 used to regulate trading in securities. Under
this act, the Mumbai stock exchange was recognized in 1927 and
Ahmedabad in 1937.

During the war boom, a number of stock exchanges were organized. Soon
after it became a central subject, central legislation was proposed and a
committee headed by A.D.Gorwala went into the bill for securities
regulation. On the basis of the committees recommendations and public
discussion, the securities contract (regulation) act became law in 1956.

FUNCTIONS OF STOCK EXCHANGES:

Stock exchanges provide liquidity to the listed companies.
Stock exchanges help trading and raise funds from the market by
giving quotations to the listed companies.
The central and state government have raised crores of rupees by
floating public loans over the hundred and twenty years during
which the stock exchanges have existed in this country.
34

 By obtaining the listing and trading facilities, public investment is

increased and companies were able to raise more funds.
The quoted companies with wide public interest have enjoyed
many benefits and assets valuation has become easier for tax and
other purposes.
Municipal corporations, trust and local bodies have obtained from
the public their financial requirements, and industry, trade and
commerce have secured capital of crores of rupees through the
issue of stocks, shares and debentures for financing activities like
organizing new ventures and completing projects of expansion,
diversification and modernizations.

Various Stock Exchanges in India:

At present there are 23 stock exchanges recognized under the securities
contracts (regulation), Act, 1956. Those are:
35

Exchange
Ludhiana Stock exchange
Delhi Stock exchange
Jaipur Stock exchange
Northern Region U.P. Stock exchange
Hyderabad Stock exchange
BangaeloreStock exchange
Mangalore Stock exchange
Madras Stock exchange
Coimbatore Stock exchange
Southern
Region

City
Ludhiana
Delhi
Jaipur
Kanapur
Hyderabad
Bangaelore
Mangalore
Chennai
Coimbatore

Region

Eastern Region

Calcutta Stock exchange

Maghada Stock exchange
Bhubaneswar Stock exchange

Calcutta
Patna
Bhubaneswar

Western Region

Bombay Stock exchange

National Stock exchange
OTCEL Stock exchange
M.P. Stock exchange
Pune Stock exchange

Mumbai
Mumbai
Mumbai
Indore
Pune

36

Out of these major stock exchanges are:

NSE:
The National Stock Exchange of India Limited has genesis in the report of
the High Powered Study Group on Establishment of New Stock Exchanges,
which recommended promotion of a National Stock Exchange by financial
institutions (FIs) to provide access to investors from all across the country
on an equal footing. Based on the recommendations, NSE was promoted by
leading Financial Institutions at the behest of the Government of India and
was incorporated in November 1992 as a tax-paying company unlike other
stock exchanges in the country. On its recognition as a stock exchange
under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE
commenced operations in the Wholesale Debt Market (WDM) segment in
June 1994. The Capital Market (Equities) segment commenced operations
in November 1994 and operations in Derivatives segment commenced in
June 2000
NSE's mission is setting the agenda for change in the securities markets in
India. The NSE was set-up with the main objectives of:

Establishing a nation-wide trading facility for equities and debt

instruments.

Ensuring equal access to investors all over the country through an

appropriate communication network.
37

Providing a fair, efficient and transparent securities market to

investors using electronic trading systems.

Enabling shorter settlement cycles and book entry settlements

systems, and

Meeting the current international standards of securities markets.

The standards set by NSE in terms of market practices and technology, have
become industry benchmarks and are being emulated by other market
participants. NSE is more than a mere market facilitator. It's that force
which is guiding the industry towards new horizons and greater
opportunities.
BSE:
The Stock Exchange, Mumbai, popularly known as "BSE" was established
in 1875 as "The Native Share and Stock Brokers Association". It is the
oldest one in Asia, even older than the Tokyo Stock Exchange, which was
established in 1878. It is a voluntary non-profit making Association of
Persons (AOP) and is currently engaged in the process of converting itself
into demutualised and corporate entity. It has evolved over the years into its
present status as the premier Stock Exchange in the country. It is the first
Stock Exchange in the Country to have obtained permanent recognition in
1956 from the Govt. of India under the Securities Contracts (Regulation)
Act 1956.The Exchange, while providing an efficient and transparent
market for trading in securities, debt and derivatives upholds the interests
of the investors and ensures redresses of their grievances whether against
the companies or its own member-brokers.

38

A Governing Board having 20 directors is the apex body, which decides the
policies and regulates the affairs of the Exchange. The Governing Board
consists of 9 elected directors, who are from the broking community (one
third of them retire ever year by rotation), three SEBI nominees, six public
representatives and an Executive Director & Chief Executive Officer and a
Chief Operating Officer. The Executive Director as the Chief Executive
Officer is responsible for the day-to-day administration of the
Exchange and the Chief Operating Officer and other Heads of Department
assist him.
The Exchange has inserted new Rule No.126 A in its Rules, Byelaws
pertaining to constitution of the Executive Committee of the Exchange.
Accordingly, an Executive Committee, consisting of three elected directors,
three SEBI nominees or public representatives, Executive Director & CEO
and Chief Operating Officer has been constituted. The Committee considers
judicial & quasi matters in which the Governing Board has powers as an
Appellate

Authority,

matters

regarding

annulment

of

transactions,

admission, continuance and suspension of member-brokers, declaration of

a member-broker as defaulter, norms, procedures and other matters
relating to arbitration, fees, deposits, margins and other monies payable by
the member-brokers to the Exchange, etc.

REGULATORY FRAME WORK OF STOCK EXCHANGE :

A comprehensive legal framework was provided by the Securities Contract
Regulation Act, 1956 and Securities Exchange Board of India 1952.
Three tier regulatory structure comprising
39

 Ministry of finance
The Securities And Exchange Board of India
Governing body

MEMBERS OF THE STOCK EXCHANGE:

The securities contract regulation act 1956 has provided uniform regulation
for the admission of members in the stock exchanges. The qualifications for
becoming a member of a recognized stock exchange are given below:

The minimum age prescribed for the members is 21 years.

He should be an Indian citizen.

He should be neither a bankrupt nor compound with the

creditors.

He should not be convicted for fraud or dishonesty.

He should not be engaged in any other business connected with a

company.
40

He should not be a defaulter of any other stock exchange.

The minimum required education is a pass in 12th standard

examination.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI):

The Securities And Exchange Board Of India (SEBI) was constituted in
1988 under a resolution of government of India.

It was later made

statutory body by the SEBI act 1992.according to this act, the SEBI shall
constitute of a chairman and four other members appointed by the central
government. With the coming into effect of the securities and exchange
board of India act, 1992 some of the powers and functions exercised by the
central government, in respect of the regulation of stock exchange were
transferred to the SEBI.

OBJECTIVES AND FUNCTIONS OF SEBI

To protect the interest of investors in securities.

Regulating the business in stock exchanges and any other

securities market.

Registering

and

regulating

the

working

of

intermediaries

associated with securities market as well as working of mutual

funds.
41

Promoting and regulating self-regulatory organizations.

Prohibiting insider trading in securities.

Regulating substantial acquisition of shares and take over of

companies.

Performing such functions and exercising such powers under the

provisions of capital issues (control) act, 1947and the securities to
it by the central government

SEBI GUIDELINES TO

SECONDARY

MARKETS:

(STOCK

EXCHANGES):

Board of Directors of Stock Exchange has to be reconstituted so as

to include non-members, public representatives and government
representatives to the extent of 50% of total number of members.

Capital adequacy norms have been laid down for the members of
various stock exchanges depending upon their turnover of trade
and other factors.

All recognized stock exchanges will have to inform about

transactions within 24 hrs.

TYPES OF ORDERS:
Buy and sell orders placed with members of the stock exchange by the
investors. The orders are of different types

Limit orders:
42

Orders are limited by a fixed price. E.g. buy Reliance Communications ltd
at Rs.160.Here, the order has clearly indicated the price at which it has to
be bought and the investor is not willing to give more than Rs.160.

Best rate order:

Here, the buyer or seller gives the freedom to the broker to execute the
order at the best possible rate quoted on the particular date for buying. It
may be lowest rate for buying and highest rate for selling.

Discretionary order:
The investor gives the range of price for purchase and sale. The broker can
use his discretion to buy within the specified limit. Generally the
approximation price is fixed. The order stands as this buy BRC 100 shares
around Rs.40

Stop loss order:

The orders are given to limit the loss due to unfavorable price movement in
the market. A particular limit is given for waiting. If the price falls below the
limit, the broker is authorized to sell the shares to prevent further loss. E.g.
Sell BRC limited at Rs.24, stop loss at Rs.22.

Buying and selling shares:

To buy and sell the shares the investor has to locate register broker or sub
broker who render prompt and efficient service to him. The order to buy or
sell specifying the number of shares of the company of investors choice is
placed with the broker. The order may be of any type. After receiving the
order the broker tries to execute the order in his computer terminal. Once
matching order is found, the order is executed. The broker then delivers the
contract note to the investor. It gives the details of the company, no. of
shares bought, price, brokerage, and the date of delivery of share. In this
43

physical trading form, once the broker gets the share certificate through the
clearing houses he delivers the share certificate along with transfer deed to
the investor. The investor has to fill the transfer deed and stamp it. The
stamp duty is 1% considerations, the investor should lodge the share
certificate and transfer deed to the register or transfer agent of the
company. If it is bought in the DEMAT form, the broker has to give a
matching instruction to his depository participant to transfer shares
bought to the investors account. The investor should be account holder in
any of the depository participant. In the case of sale of shares on receiving
payment from the purchasing broker, the broker effects the payment to the
investor.

Share groups:
The scrips traded on the BSE have been classified into A,B1,B2,C,F and
Z groups. The A group represents those, which are in the carry forward
system. The F group represents the debt market segment (fixed income
securities). The Z group scrips are of the blacklisted companies. The C
group covers the odd lot securities in A, B1&B2 groups.

ROLLING SETTLEMENT SYSTEM:

Under rolling settlement system, the settlement takes place n days (usually
1, 2, 3 or 5days) after the trading day. The shares bought and sold are paid
in for n days after the trading day of the particular transaction. Share
settlement is likely to be completed much sooner after the transaction than
under the fixed settlement system.

44

The rolling settlement system is noted by T+N i.e. the settlement period is n
days after the trading day. A rolling period which offers a large number of
days negates the advantages of the system. Generally longer settlement
periods are shortened gradually.
SEBI made RS compulsory for trading in 10 securities selected on the basis
of the criteria that they were in compulsory demat list and had daily
turnover of about Rs.1 crore or more. Then it was extended to A stocks in
Modified Carry Forward Scheme, Automated Lending and Borrowing
Mechanism (ALBM) and Borrowing and lending Securities Scheme (BELSS)
with effect from Dec 31, 2001.

SEBI has introduced T+5 rolling settlement in equity market from July
2001 and subsequently shortened the cycle to T+3 from April 2002. After
the T+3 rolling settlement experience it was further reduced to T+2 to
reduce the risk in the market and to protect the interest of the investors
from 1st April 2003.

Activities on T+1:
Conformation of the institutional trades by the custodian is sent to the
stock exchange by 11.00 am. A provision of an exception window would be
available for late confirmation. The time limit and the additional changes for
the exception window are dedicated by the exchange.

The exchanges/clearing house/ clearing corporation would process and

download the obligation files to the brokers terminals late by 1.30 p.m on
T+1. Depository participants accept the instructions for pay in securities by
45

investors in physical form upto 4 p.m and in electronic form upto 6 p.m. the
depositories accept from other DPs till 8p.m for same day processing.

Activities on T+2:
The depository permits the download of the paying in files of securities and
funds till 10.30 a.m on T+2 from the brokers pool accounts. The depository
processes the pay in requests and transfers the consolidated pay in files to
clearing

House/clearing

Corporation

by

11.00am/on

T+2.

The

exchange/clearing house/clearing corporation executes the pay-out of

securities and funds latest by 1.30 p.m on T+2 to the depositories and
clearing banks. In the demat mode net basis settlement is allowed. The
buy and sale positions in the same scrip can be settled and net quantity
has to be settled.

46

47

Angel Broking's tryst with excellence in customer relations began in 1987.

Today, Angel has emerged as one of the most respected Stock-Broking and
Wealth Management Companies in India. With its unique retail-focused
stock trading business model, Angel is committed to providing Real Value
for Money to all its clients.
The Angel Group is a member of the Bombay Stock Exchange (BSE),
National Stock Exchange (NSE) and the two leading Commodity Exchanges
in the country: NCDEX & MCX. Angel is also registered as a Depository
Participant with CDSL.
COMPANYS

Business

Equity Trading
Commodities
Portfolio Management Services
Mutual Funds
Life Insurance
Personal Loans
IPO
Depository Services
Investment Advisory

Angel Group:
48

Angel Broking Ltd.

Angel Commodities Broking Ltd.
Angel Securities Ltd.

Companys Vision
To provide best value for money to investors through innovative products,
trading/investments strategies, state of the art technology and personalized
service.

Companys Motto
To have complete harmony between quality-in-process and continuous
improvement to deliver exceptional service that will delight our Customers
and Clients.

CompanysCRM Policy : Customer is King

A Customer is the most Important Visitor on our premises. He is not
dependent on us, but we are dependent on him. He is not an interruption
in our work. He is the purpose of it. He is not an outsider in our business.
He is part of it. We are not doing him a favour by serving him. He is doing
us a favour by giving us an opportunity to do so.

Business Philosophy
49

Ethical practices & transparency in all our dealings

Customers interest above our own
Always deliver what we promise
Effective cost management

Our Quality Assurance Policy

We are committed to providing world-class products and services which
exceed
the expectations of our customers, achieved by teamwork and a process of
continuous improvement.

Work Culture
At Angel, we keep exploring new paths to provide the best value to all our
internal and external customers. We consider people as our biggest asset
and believe in creating long term relationships by nurturing talent from
within. A fast-growing, forward-looking organization like ours, demands HR
to be a key responsibility area of our core management team.
Our HR team constantly explores ways to enhance and augment the
knowledge base and productivity of all Angels by providing various learning
and development Programs. Our three tier Leadership Development
program helps all star performers to grow and develop their managerial
skills to become effective mentors for their teams and thereby take on the
next level of responsibility effectively.
Ours is a winning team of highly determined, motivated, and adaptable
people, all working diligently to take Angel's exciting success story forward.

HR Philosophy
At Angel, People come first. Along with our customers, our employees are
equally vital to our organization. The Business of HR is to foster an
entrepreneurial spirit whereby Angels can operate with ownership as an
50

entrepreneur (profit center) within the confines of their job role and earn
over
and
above
their
fixed
salaries.
We believe in inculcating a sense of responsibility and ownership in all
Angels which brings out the entrepreneurial zeal to explore potential within
as well as beyond job boundaries.

Companys HR Philosophy is to engage employees at

professional, emotional and material levels.

We aim to create an environment conducive to both personal and

professional development of the employees, leading to a productive
and happy work force
Angel believes that people impact business and therefore each and
every Angel is a key resource and a valuable asset
Our business philosophy of being transparent in all our dealings with
our customers, is equally applicable in dealings with employees
We encourage initiative, provide professional freedom and empower
Angels based on trust

EMPLOYEE ENGAGEMENT:

Team HR at Angel works effectively to create a work environment and

performance culture that fosters team spirit and enhances employee
productivity through motivation and positive ambition.
Our HR team is continually working to rationalize and restructure measures to
ensure better employee relationship management, employee communications
and relations, recruitment and training need analysis; program design and
implementation, performance evaluation and other work-life initiatives.

51

Sprint
Sprint is an engagement program devised for better inclusion of new
joiners from Day 1. The major aim is to help employee understand the
company

Race
After having done well in the Sprint program, Race is highly effective in
harnessing the potential of new joiners for further development in the next
three months.

Hall Of Fame
It is a display to increase visibility of initiatives taken by employees with an
objective to motivate and recognize contribution and develop sense of pride
and belonging.

ampark
Sampark is our way of bridging the employee-management communication
through a common forum where, ideas, achievements, insight and visions
for success are shared on a regular basis.

Clash of Angels
Angel organizes a cricket tournament Clash of Angels with an aim to
encourage the competitive spirit and sportsmanship in all employees. The
best team lifts the rolling trophy. Cricket being the favorite sport of the
nation, the event generates a lot of fanfare among the employees.

Pragati
Angel strongly believes that innovation does not come from processes but
people. We also believe in evolving continuously to meet the customer needs
and create a competitive advantage through truly personalized service.
Pragati is a platform to capture creative ideas from employees with the
52

objective of bringing tangible results by increasing efficiency, enhancing

productivity and reducing TAT in our work areas.

Red Tag Day

Angel encourages employees to reduce, recycle & reuse as a way of life. To
re-enforce the significance of red tagging every year we celebrate Red Tag
Day across Angel.

PERFORMANCE MANAGEMENT:

Core essence of PMS

The core essence of PMS is to build and strengthen the team members
Connect with Angel through

Enrolling the team member to Angels vision

Meaningful engagement
Meaningful dialogue
Openness to give and receive feedback
Compliment achievements
Focus on the team members growth to enhance performance

The whole focus of PMS is to look for goodness in a person. The onus is on
the managers to look for that goodness, identify strengths and try to
create a role around strengths rather than getting bogged down with
weaknesses. The Performance Management System at Angel has reduced
manual intervention to a minimal level. The fully integrated online system
uses sophisticated tools such as national and regional stack ranking,
performance bands and rank based recommendations. All this is
supported through one-on-one interactive feedback & coaching session
with team.
Performance credits are received for exceeding expected targets and there
are equal opportunities for all employees to earn rewards with no upper
limits. Performance credit structures have been worked out differently for
53

various categories of employees.

Leadership Academy:
Learning is a continuous process at Angel.
We identify the strengths of employees and design training programs to
build their strong points and overcome their shortcomings. We prepare
our employees for future positions with training and by encouraging the
learning process. This helps them to move towards their career objectives
efficiently.
We also employ various people development initiatives like E-learning
opportunities for functional & behavioral skills through video conferences
and through our employee portal.
Our E Wise Be wise Program provides every Angel with 24x7 access to
all relevant information about Angel. This encourages employees at all
levels to upgrade their knowledge constantly and apply their learnings in
the day to day work to achieve high productivity and customer satisfaction
levels.
PROUD TO BE ANGEL:

We Dont Just Build Careers...We Build Lives

Testimonials from employees about what makes them to be proud
to be an Angel and how this organization has made a difference to
their lives.

54

Vikram
Divekar
Sr. Manager E Commerce
I joined Angel as a Trainee Web Designer in June 2005 and
within a short span I have grown to the role of Senior Manager
E-commerce, handling a team of 25 people. Angel not only focuses
on retention but kindles the entrepreneurship spirit in each and
every employee. Here equal opportunities are given to everyone and
new & innovative ideas are welcomed.

55

Manisha
Executive Operations

Mishra

Proud-to-be-an-Angel, there are several aspects that bring this

feeling. The values of Angel that have a major impact are Service
Orientation, Transparency, and Quality Mindset. When we receive
appreciation on the same by our clients, it makes us happy &
encourages us to work the same way and cherish our work.
The various aspects of Angel Culture that has a major appeal and
encourage me to perform during my tenure are firstly the training
provided to me & constructive feedback received from my seniors
to enhance my performance. Also, I appreciate the fairness of
policies & procedures followed by Angel. Also, the freedom &
openness to the ideas & suggestions contributed from my side.
Also, the process driven approach towards work help us work
systematically.
The infrastructure & resources provided to us to do our job well
creates an environment that makes us comfortable. We feel cared
for & valued as a team member working in Angel. While working in
Angel, they make us feel that the work done by us adds value to
the organization. And lastly the image & value associated with
Angel brand makes me proud to be part of this organization.

Dhaval
Business Manager

Shah

In am proud to be an Angel because of transparency of our

organization for giving me path for next level of growth. I joined
this company as a Sales Executive. In the first 3 months I achieved

56

my targets and was soon promoted as a Team Leader handling a

team of 8 members. Within a short span of 6 months, I was
promoted as a Business Manager heading my Branch. The
recognition of work performance is a significant as aspect of
Angels work culture. As an example I have received a trophy for
outstanding performance from the senior management. I am very
happy to be a part of the Angel family.

Shweta
Manager Software Development

Tiwari

I joined Angel in May 2007 as a trainee programmer. Angel has

given me new challenges and roles every year. Now I am designated
as Manager in Software Development Department. I dont think
this would have been possible in any other company in such a
short period of time. Angel is really a performance-based equal
opportunity company.
The back work environment allows us to have our own work style
and everyone is always open to new, innovative ideas. Not only do
the people working here care about our products and appreciate
them, they also care about each other as well.
Freedom, Flexibility, Passion. I have the freedom to do what is
necessary to accomplish what is asked of me, the flexibility to take
care of social life and responsibilities, and I share a passion with
my team members for what we do. I am very proud that I work for
this company and to contribute to its success.

57

Financial Industry
It all started in the year 2002 with the US lowering its interest rates fearing
the slowdown of their economy. To be in line with the world, India also
lowered its interest rates, thereby initiating a new consumption cycle. This
had a cascading effect on all sectors: commodities, agriculture,
infrastructure, banking, auto and auto ancillary, IT and IT enabled
services.
The stupendous growth trajectory achieved in the past 4 years was due to
sound government fiscal policies which assisted in giving a fillip to the
Indian economy.

Indian economy has been growing at 7-8% over the last few years and
is not only expected to recover soon but also maintain a high
trajectory for a long time to come.
Financial sector leading from the front with growth rates much
higher at 20%.
Demat accounts growing @ 20% CAGR over the last few years.
But, equity penetration is still very low: 116cr population*, 17cr PAN*
card holders, only 1.47cr Demat accounts*.
Historically, Equity (@ 15% CAGR) as an asset class outperforms all
others.

Historically, the Sensex has been growing at a compounded rate of 17%

per annum.

Fiscal stimulus and RBIs Monetary Policy will put economy on strong
growth path.
Interest rates on a decline, equities expected to gain from this.
Indian economy expected to bounce back by year end.
Corporate earnings to improve in the second half of the current
financial year.

58

Why Angel?

The most trusted retail-centric broking house with 'Service Truly

Personalized'.
Angel is among the top five broking houses in the country.
Angel was first to concentrate on retail-centric research.
Angel was first to adopt the branch concept.
Angel was first to launch the web-enabled Back Office Software for
sub brokers and clients.
Angel has the highest number of registered sub-brokers on BSE and
NSE.
Angel has the highest number of trading terminals (excluding ebroking terminals).
Angel has been awarded most coveted Major Volume Driver award by
BSE from the year 2004-05 to 2008-09.
Angel has recently been awarded two prestigious award of "Best Retail
Broking House" and "Broking house with Largest Distribution
Network" by Dun and Bradstreet.

Products & Services

Equities
Commodities
Currencies
E-Broking
PMS
Angel Gold
Insurance
Mutual Fund
Personal Loan
Fixed Deposits
IPO
Depository Services

59

Value Added Services

Research & Advisory Services

Margin Funding
Pre-paid Products
E-Chopda
SMS Services
M-Connect
Client Back Office
NRI Services

Business Plans
Angel Broking offers a wide selection of Business Plans for all the aspiring
entrepreneurs out there. You select the one which you think is the most
beneficial to you or simply call our experts who will guide and direct you
towards the right path.

Support
Angel Broking offers a host a comprehensive support infrastructure to its
partners
and
clients.
As Angel's Business Partner, you get

Hand-holding to identify business potential.

Specially designed training program to develop the necessary business
skills.
Technology that guarantees seamless connectivity for trading.
Flexibility of a local broking house and sophistication of corporate
brokerage.
A dedicated Relationship Manager to help in sales and other business
related queries.
60

Online products for partner's clients at no additional cost.

Basic, Induction and Functional training to Business Partners and their
employees for operational knowledge.
A specially designed glow Sign Board provided with Angel Branding.
Branding support in terms of regular Research & Advisory workshops.
24x7 Online Back-office system for the Partner as well as all their
customers.

CHAPTER-IV

61

Incorporated in 1993, ANGEL BROKING LTDABL is one of the major stock

brokers in India. ANGEL offers premium financial services and information.
ABL is a member of the National Stock Exchange (NSE) and the Bombay
Stock Exchange (BSE).
ABL provide the retail broking services all over the India, Middle East,
Europe and America. ABL has 156 branches across the India. They are
growing exponentially because of their strong support; technology drives
operations, research team and network of experts. Online trading is one of
the important platform provided by NSDL.
Online Stock Trading Platforms:
ANGEL offers 2 different online trading platforms to its customers:

62

1. ANGEL TRADE (Website based trading)

It is a powerful and user friendly browser based online stock trading
platform. This website based trading platform is for delivery based
low volume trader or investor who keeps moving from one place to
another.
As this is a website based trading environment, there is no need to
install any software and trading can be done absolutely anywhere
there is internet.

2. ANGEL -Swift (Installable software MOBILE based trading)

It is an advanced and interactive online stock trading platform. This
platform requires installation based application which is made
available by ANGEL. User has to install this software application on
his computer. Its mostly suited for high volume traders.
Trader can watch market prices while they trade. The application is
highly integrated which enables the user to place orders in live
environment. The user screen ANGEL offers 2 different online trading
platforms to its customers:
3. ANGEL -LIGHT (Website based trading)
It is a powerful and user friendly browser based online stock trading
platform. This website based trading platform is for delivery based
low volume trader or investor who keeps moving from one place to
another.
63

As this is a website based trading environment, there is no need to

install any software and trading can be done absolutely anywhere
there is internet.
4. ANGEL DIET (Installable software based trading)
It is an advanced and interactive online stock trading platform. This
platform requires installation based application which is made
available by ANGEL. User has to install this software application on
his computer. Its mostly suited for high volume traders.
Trader can watch market prices while they trade. The application is
highly integrated which enables the user to place orders in live
environment. The user is fully customizable by the user to display
information based upon his preferences.

Features:
1. User can customize Market Watch windows on computer screen as
per his/her needs. They can be set to be viewed vertically, one on top
of each other, or side by side so user can view NSE and BSE on the
same horizontal line.
2. They offers the features such as Lock the Screen, Top 20 by Most
Active Volume, Gainers, Losers, Market Movement and more that help
you customize your trading platform according to your specific focus.

Service charges:
1. ANGEL DIET Trading:
o

View Only Account: Charges are Rs. 500 per month, Rs. 1200
per Qtr or Rs 4500 p.a.

64

Trading Account: Free but user access charge of Rs. 150 pm,
applied if brokerage from the client in a month is < Rs. 1250.

2. ANGEL TRADE Trading:

o View Only Account: Rs. 750 per month, Rs. 2000 per Qtr or Rs
6000 p.a
o

Trading Account: Free but user access charge of Rs. 300 pm,
applied if brokerage from the client in a month is < Rs. 5000.

How to open account with ANGEL?

There are 3 simple ways to open an account with ANGEL.

Call at one of the below number and ask to open an account with
them.
Toll Free No.: 1800-220-223
Other No: 022-30821562

Visit one of their nearest branch and you will find representative to
help you out:

Click on this link www.ANGELstock.com/contact.aspx to find the

branch closest to you.They have 156 branches across the India.

Mail them your details at contact@ANGELstock.com, and their

relationship manager will contact you.

Advantages of ANGEL
1. Trader can make off-market orders entry even while the market is
closed. Orders will be released as soon as the market opens on the
following day.
2. Brokerage rates are negotiable.
3. No demat account transaction fees.
65

4. No annual account maintenance charges for demat and trading

account.
(Hence your account maintenance charges are NIL compared to India
bulls, ICICI Direct, HDFC Securities etc.)
5. They provide facility to apply online for IPOs and Mutual Funds.

TRADING SESSION
Trading timings are from 9:00 A.M. to 3:30 P.M. on all 5 days of the trading
period. Monday to Friday is the trading period in all the stock exchanges.
SEBI has stipulated that all the stock exchanges in India must have same
trading period.

ORDERS:
Orders can be done one at a time or in a batch mode.The submitted order
will be accepted at the CTS, after validation if it finds any invalid reason the
order is return back to the BWS, with the appropriate error message. If
Accepted at the CTS it will be added to the local pending order book. The
order will then be taken up for matching, if it is a buy order the system
tries to find a sell order, which fits the requirement of the buy order, when
such match is found a trade gets executed. Each trade involves
two brokers and respective traders who sent the order. Both these traders
are informed of the trade being executed at their respective BWS.
At the BWS the trade is added to the local trade book.
Orders sent by the brokers are two types:

Good for the day (GFD)

Good till cancellation(GTC)

GOOD FOR THE DAY:

66

This is also called as market order. For an order if the member selects the
deal as good for the day, the order is treated as market order. If a best bid
founds match with best order then the transaction gets executed. If the
match is not found then after trade time the order gets cancelled that day.
Next day he has to place a new order.
For example if a member wants to purchase 1000 shares of satyam info @
400 each through Good for Day order. If the correct match is not found,
order gets cancelled automatically and new quotation has to be placed the
next day.

GOOD TILL CANCELLATION:

This order is forwarded to the last trading day of that settlement period.
This is also called as carry forward order like GFD; broker has to select the
option of GTC for the order. If the order finds match with in the trading
settlement period, the order is executed. If no match is found, the order is
cancelled on the last day of settlement period. This order is not carried
forward to the next settlement period.
For example, if a member a place purchase order of 500 shares of SBI @
690 per share and selects the order as GTC and place an order. If the
match is not found on that day it will be forwarded to the next day until
trading settlement period day

The given flow chart clearly explains the process of online

trading:

67

L o g in

S e ll t r a n s c a t io n

B u y t r a n s c a t io n

T h e s y s te m w ill c h e c k y o u r
d p a c c o u n t q u an tity

T h e s y s te m w ill c h e c k b u y in g
lim its

O rd e rs ac c e p te d

R e je c t e d o r d e r s w o u ld b e
c o m m u n ic a t e d a lo n g w it h r e a s o n s

o rd e rs a c c e p te d

y o u r o r d e r is t r a n s m it t e d t o e x c h a n g e f o r e x e c u t io n

p e n d in g b u y o r d e r s
w o u ld b e d is p la y e d
o n y o u r s c ree n

y o u m a y e d it y o u r
p e n d in g o r d e r

o n e x e c u t io n
o f y o u r o rd e rs

y o u m a y e d it y o u r
p e n d in g o r d e r

y o u m a y d e le t e
y o u r p e n d in g o r d e r

f la s h e d o n y o u r
s c r e e n im m e d ia t e ly
o n e x e c u t io n

c o n f o r m a t io n c o u l
d b e s e n d to y o u r
e - m a il a n d m o b ile

p e n d in g s e ll o r d e r s
w o u ld b e d is p la y e d
o n y o u r s c re e n

y o u m a y d e le t e y o u r
p e n d in g o r d e r

c o n t r a c t n o t e w o u ld
b e s e n t t o b y m a il
o r h a n d d e liv e r y

LEVEL QUOTE:
The Level I real-time streaming quote updates automatically every five
seconds and continually throughout market hours.
68

TO GET QUOTES:
1. Enter a symbol in the field located on the left-hand side. You can also
click the small arrow at the right to select a symbol you previously
entered in the same day.
2. press the Enter key on your keyboard or select Get Quotes (under the
select Action drop-down menu) to display real-time streaming quotes.

TO ADD STOCK TO WATCH LIST:

For stocks you watch frequently, select Add to Watch List (under the select
Action drop-down menu) so you can view quote without entering the symbol
again.

To View Company Information for a specific stock

1. Enter a symbol in the field located in the left-hand side. You can also
click the small arrow at the right to select a symbol you previously
entered in the same day
2. Select Get Content under the select Action drop-down menu. A
separate window will appear with news and charts fir the selected
stock. You can also click the following links at the top of the pop-up
window to see more information for the stock

a) Detailed quotes:
Detailed quote, intra-day, and the latest news

b) News:
Recent new

69

c) Charts:
Six different charts types intra-day, one month, three months,
six months one year and Interactive.

d) SEC fillings:
The companys report to the SEC

e) Profile:
A description of the company and fundamental information about its
stock.

f) Historical:
The open, high, low, and closing prices, change and volume of any given
stock in the past six years.

g) Message:
Related bulletin board message about the stock posted by the public

To view market Information

Click market snap.
The market information will show in a different window.

Streaming quote Field Definitions:

Ask:
Lowest price at which someone currently offers to sell the stock.

Ask Size:
Number of shares, in hundreds, for sale at the current ask price.

Bid:
Highest price at which someone currently offers to buy the stock
70

Bid Size:
Number of shares, in hundreds of the offer at the current Bid

Change:
The difference between the price of the Last trade and the stocks
previous close price.

% Change:
The percent difference between the price of the Last trade and the
stocks previous close price.

Close:
The last trade on the previous trading day.

High:
Highest. trade price on the stock during the current trade date

Last:
Most recent trade price on the stock during the current trade date.

Low:
Lowest trade price on the stock during the current trade date.

Open:
The opening price of the stock on the current trade date.

Current Bid is Higher:

Tick will show an arrow pointing up.

Current Bid is lower:

Tick will show an arrow pointing down.
71

Current Bid is same:

Tick will show UC (unchanged).

Volume: Total number of shares of the stock traded during the current
trade date

To export Order Record to and Excel File:

1. In the order screen, click Import to Excel at the bottom.
2. Choose the location on your computer where you want to save the file
and click.

BASKET TRADING:
You can fill your basket with orders in advance, and place them later with
just one click.
Web Trader provides you multiple baskets.
Once you add/remove orders in the Basket, the system saves the
modification automatically.

To Set Up Your Basket:

1. Click the Basket tab to open the Basket window.
2. Select a basket from the drop-down menu at left.
3. To re-name the basket, click Rename cart, type a new name
into the pop-up window, and click OK.
72

KEYS USED FOR TRADING:

F1

- BUY

F2

- SELL

F3

- PENDING ORDER( BUYING & SELLING)

F6

- MARKET DEBTS ( COMPANY ENQUIRY)

F7

- ARBITRAGE ORDERS

F8

- HOW MANY TRADING HAS BEEN DONE

SHIFT+F8

- NET POSITION OF THE COMPANYS SHARES

CTRL+F8
- SETTLEMENT
EXPOSURE PURPOSE
SHIFT+F9

OF

NET

POSITION

NEWS

F11

- ADDING A NEW COMPANY IN TO THE N/W

F12

- TEMPORARY LOCKING OF WINDOWS

73

FOR

74

NETWORTH STOCK BROKING LTD :

75

NETWORTH has been successfully providing premium financial services

and information for more than a decade. Our aim has consistently been to
empower investors to take charge of their financial future & help them grow
their NETWORTH
NETWORTH has always endeavored to make a difference in the financial
services space. It constantly focuses on scaling and upgrading the
technology infrastructure so as to provide the best services to the investors.
We have a presence of over 300 centres across India.
We are ..

Managed by a talented team of over 2475 professionals.

Serving nearly 100,000 clients across the country.

ISO 9001:2000 Certified Software Division.

Winner of CNBC-TV18s Financial Advisor Awards 2008 for Best

Regional Level Financial Advisor.

Proclaimed

amongst

the

most

read

research

analyst

(Team

NETWORTH) by Thomson Reuters consistently over a period of time.

A Charter member of Financial Planning Standards Board of India

[FPSB].

Alliance partners with PNB for online trading.

Corporate Agents for MetLife India Insurance Co. Ltd.

EQUITY TRADING FOR THE MONTH OF FEB AND MAR

OF ANGEL BROKING LTD :
76

Date

Open

High

Low

Close

13-APRL-12

35.95

36.15

34.15

34.15

12-APRL-12

38.00

38.00

34.45

34.45

11-APRL-12

39.00

39.25

36.00

36.25

10-APRL-12

37.00

40.00

37.00

37.70

7-APRL-12

37.75

38.85

37.75

38.85

6-APRL-12

36.50

39.35

35.70

37.00

5-APRL-12

34.20

37.50

34.20

37.50

4-APRL-12

34.00

35.80

34.00

35.75

3-APRL-12

31.60

34.65

31.60

34.10

31-MAY-12

33.10

35.00

32.50

33.00

30-MAY-12

35.00

36.85

33.40

34.15

29-MAY-12

35.00

35.75

34.70

35.15

28-MAY-12

37.00

39.50

36.50

36.50

27-MAY-12

37.50

40.30

36.75

38.00

24-MAY-12

40.05

41.00

38.65

38.65

23-MAY-12

41.00

42.00

40.05

40.65

22-MAY-12

41.30

42.00

40.85

41.90

21-MAY-12

44.00

44.00

42.70

42.70

20-MAY-12

45.40

45.50

42.75

44.90

INTERPRETATION:

77

CLOSE

The stock has shown a downtrend initially but has recovered and give a buy
signal. There is a fluctuation in the prices, which indicates the investor to
go for long term investments. Thus it is not advised for shirtterm investors.

INDIABULLS STOCK BROKING LIMITED:

India bulls are Indias leading Financial Services and Real Estate Company
having over 640 branches all over India. India bulls serves the financial
needs of more than 4,50,000 customers with its wide range of financial
services and products from securities, derivatives trading, depositary
services, research & advisory services, consumer secured & unsecured
credit, loan against shares and mortgage & housing finance. With around
4000 Relationship Managers, India bulls help its clients to satisfy their
customized financial goals. India bulls through its group companies have
entered Indian Real Estate business in 2005. It is currently evaluating
several large-scale projects worth several hundred million dollars.
78

India bulls Financial Services Ltd is listed on the National Stock

Exchange, Bombay Stock Exchange and Luxembourg Stock Exchange. The
market capitalization of India bulls is around USD 3,330 million (30th
September 2007). Consolidated net worth of the group is around USD 950
million (30th September 2007). India bulls and its group companies have
attracted more than USD 800 million of equity capital in Foreign Direct
Investment (FDI) since March 2000. Some of the large shareholders of India
bulls are the largest financial institutions of the world such as Fidelity
Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Carillon
Capital.

Business of the company has grown in leaps and bounds since its
inception. Revenue of the company grew at a CAGR of 159% from FY03 to
FY07. During the same period, profits of the company grew at a CAGR of
184%.

India bulls became the first company to bring FDI in Indian Real Estate
through a JV with Farallon Capital Management LLC, a respected US based
investment firm. India bulls have demonstrated deep understanding and
commitment to Indian Real Estate market by winning competitive bids for
landmark properties in Mumbai and Delhi.

79

EQUITY TRADING FOR THE MONTH OF FEB AND MAR

OF INDIABULLS STOCK BROKING LIMITED:

80

Date

Open

High

Low

Close

13-APRL-12

108.00

110.50

106.55

108.05

12-APRL-12

106.30

112.40

106.10

107.55

11-APRL-12

109.00

109.00

105.60

106.30

10-APRL-12

114.75

116.75

108.00

108.80

7-APRL-12

112.40

115.00

111.55

112.30

6-APRL-12

115.20

116.70

111.05

111.50

5-APRL-12

104.00

119.80

104.00

114.95

4-APRL-12

100.00

104.80

99.80

103.00

3-APRL-12

100.00

108.00

95.20

98.55

31-MAY-12

100.00

100.75

98.25

100.10

30-MAY-12

98.00

99.90

97.50

99.00

29-MAY-12

95.00

99.70

93.10

97.45

28-MAY-12

102.00

102.50

95.10

95.65

27-MAY-12

102.00

102.40

99.10

99.50

24-MAY-12

108.00

108.00

102.50

103.10

23-MAY-12

107.50

107.90

106.55

107.00

22-MAY-12

107.00

107.90

105.05

106.30

21-MAY-12

108.00

108.80

106.05

106.80

20-MAY-12

105.10

108.00

104.50

106.80

CLOSE

81

INTERPRETATION:
The stock has shown a downtrend which is a good sign for genuine
investors who go for long-term investment rather than for a short-term
investments. In this situation there is no way to speculative as the prices
are continuously going down and increasing.

82

INDIAINFOLINE LIMITED:

Circa 1995 A group of professional formed a company called Probity

Research & Services Pvt Ltd. The name was later changed to India Infoline
Ltd. The Objective was to provide unbiased and independent information to
market intermediaries and investors. The quality of research soon caught
the imagination of all major participants in the financial market. In a span
of 2 of 3 years the client list read like the whos who of Indian financial
market. The list included consulting firms like Mckinsey, companies like
Hindustan Lever, Banks like Citibank, Rating agencies like CRISIL, D & B,
FIs, Foreign as well as leading Indian brokers.

One fine morning in early 1999,a colleague had a crazy idea that if the
company made all the research available free on the web, the number of
users may well jump from 250 to 2, 5 million. To make it true, the business
required a reincarnation. And the prerequisite was a death. It meant that
the company put up all the on formation free on the website and let go of all
the revenues and profits. Worse, of the new avatar failed, there would be no
comebacks.
The Company became heavily dependent on its e-broking business for
survival. The odds were against them. There was no money available from
the private equity investors at any valuation. The core promoters of the
company had little experience of broking. To add to it, the market was hit
by a scam. They also had their share of price to pay and lessons to learn. It
83

was difficult to retain people. Although divesting for morale, but not
surprising, most observes had written them off.

EQUITY TRADING FOR THE MONTH OF FEB AND MAR

OF INDIAINFOLINE LIMITED:
Date

Open

High

Low

Close

13-APRL-12

119.95

120.95

118.50

120.50

12-APRL-12

119.80

121.70

118.50

119.95

11-APRL-12

120.05

121.20

119.00

119.80

10-APRL-12

124.00

124.80

119.60

121.25

7-APRL-12

121.10

124.30

120.85

122.90

6-APRL-12

120.30

123.30

118.50

120.20

5-APRL-12

116.00

119.50

115.10

118.40

4-APRL-12

114.80

115.90

113.60

115.35

3-APRL-12

109.50

116.50

107.30

114.00

31-MAY-12

110.75

111.20

107.30

108.55

30-MAY-12

110.15

112.50

109.80

110.20

29-MAY-12

109.00

114.10

109.00

112.10

28-MAY-12

117.00

117.00

110.75

111.40

27-MAY-12

115.25

115.50

110.35

111.85

24-MAY-12

118.50

119.00

115.30

115.85

23-MAY-12

119.00

119.95

117.00

118.10

22-MAY-12

115.05

118.20

113.50

116.95

21-MAY-12

115.65

115.65

113.10

114.05

20-MAY-12

115.70

118.40

113.35

114.95

INTERPRETATION:

84

CLOSE

The stock has shown a downtrend which is a good sign for genuine
investors who go for long-term investment rather than for a short-term
investments. In this situation there is no way to speculative as the prices
are continuously going down and increasing.

CHAPTER-V
FINDINGS AND SUGGESTIONS
85

FINDINGS AND SUGGESTIONS

FINDINGS:

Fluctuations are more in secondary market than any other market.

The people who are working in the stock exchange are not giving the
accurate information about the share market.
86

The investors are also lacking knowledge in the shares Lack of

awareness on online trading.

The investors are not allowed to trade the quotations directly to buy
or sell their securities.

SEBI is not conducting seminars to get awareness on the share

market to the investors.

There are more speculators than investors.

It was also observed that many broking houses offering internet

trading allow clients to use their conventional system as well just
ensure that they do not loose them and this instead of offering ebroking services they becomes service provider.

SUGGESTIONS:
The SEBI has to conduct the regular seminar to create awareness
on the share market.
87

 The stock exchange has to permit the investors to trade their

quotations directly .
They have to improve the online trading perfectly.
The online system has to advise the investor, at the time of trading
which price can get him profit for a security.
In ANGEL BROKING LTD settlement of the account will be
improved.

CONCLUSION:
88

In this present competitive would economy plays a vital role in developing of

the country, if a person is able to have the better life by having sufficient
wealth with him. It can be made happen only by means of earnings, any
person cannot earn more by staying stagnated at one place there are many
ways of earning one among them is by way of investing in the stock
exchanges. No person can directly enter into the markets; the only source is
through the middle man that is any company that is member in the stock
exchange.
These members companies are providing many services to the investors or
their clients like portfolio investments, derivatives and mutual funds etc.,
so any company has to provide better services to the costumer in such a
way that they can trust the company in investing their wealth through the
company. It can be done by following the certain guidelines and rules &
regulations framed by SEBI.

89

CHAPTER VI

90

BIBLIOGRAPHY:
BOOKS:

Security Analysis And Portfolio Management

-V.A.Avadhani

Marketing of Financial Services

-V.A.Avadhani

Indian Financial System

-M.Y.Khan

WEBSITES:

www.bseindia.com

www.sebi.com

www.angelbroking.com

www.nseindia.com

www.ANGELdirect.com

SEARCH ENGINE UDED

www.google.com
INDIAN SECURITIES MARKET A REVIEW
91

ECONOMIC TIMES OF INDIA

92