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A

SUMMER TRAINING PROJECT REPORT


ON

Strategic approach of Greenbucks securities PVT. LTD & its


competitors regarding demat account and share trading-A
comparative overview.

Submitted towards the fulfillment of requirements of M.T.U


University, Noida for the award of degree of Master of Business
Administration (M.B.A).
Session (2011-12)

Submitted by
GAURAV KUMAR SHARMA
MBA IIIrd Semester
MTU Roll No. 1006870008

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Certificate of the organization

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MEERUT INSTITUTE O F ENGINEERING
&TECHNOLOGY

CERTIFICATE OF COLLEGE

This is certify that Mr. GAURAV KUMAR SHARMA has gone through compulsory

summer internship training as a part of MBA course programme in GREENBUCKS

SECURITIES PVT. LTD DELHI during june-july 2010. He has worked on the summer

training project titled Strategic approach & its competitors regarding demat account

and share trading.

Dated HOD/Director

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TABLE OF CONTENT

CHAPTER TITLE PAGE NO.

Chapter – 1 Executive Summary 8


1.1 Company introduction 9-13
1.2 Management profile 14-15
1.3 Company product & services 16-27
1.4 History of online trading 28-30
1.5 Industry analysis 30-35
1.6 History & functions of stock exchange 36-41
Chapter – 2 SEBI 42-43
2.1 Definition & explanation (share, investment demat A/c etc) 43-48
2.2 Types of online trading company in India 49
2.3 Types of online trading 50
Chapter – 3 Different Competitors 51-63
3.1 Greenbucks 52-53
3.2 5.paisa 54-56
3.3 Kotak Street 57-59
3.4 India bulls 60-61
3.5 ICICI direct 62
3.6 HDFC 63
Chapter- 4 Relation management programme of Greenbucks 64
4.1 Greenbucks Depository Services 65
4.2 Documents required to opening of Demat account 66
4.3 Dematerialization With Greenbucks 67-68
4.4 Corporate benefits 69-73
Chapter- 5 Objective of the Study 74-75
Chapter – 6 Research Methodologies 76-77
6.1 Research Design 78
6.2 Research instrument 79
6.3 Sampling Design 79-80
Chapter- 7 Data collection 81-82
7.1 Data Tabulation & Analysis 83-89

Chapter- 8 Swot analysis 90-92


8.1 Findings 93-94
8.2 Conclusion 95-96
8.3 Suggestions 97-98
Chapter- 9 Limitations 99-100
9.1 Questionnaire 101-104
9.2 Bibliography 105

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DECLARATION

I, GAURAV KUMAR SHARMA, Registration No. 1006870008, MBA Programme,

Meerut institute of engineering & Technology Meerut, batch of 2010-2012 do hereby

solemnly declare that this dissertation is an original work of mine and this has not been

submitted to any other institute/university towards any other degree/diploma.

(Signature)
Gaurav kumar Sharma
Date :

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ACKNOWLEDGMENT

I would like to express my sincere appreciation and thanks to Mr. Sandeep kapoor

(Faculty Member) for guiding my efforts. I would also like to express my inner gratitude

to Mrs. Vaishali Goel (H.O.D. of Management Studies).

I would like to thank Mr. Rahul Das (senior branch Manager (sales), Greenbucks, (Delhi)

for letting me work in Greenbucks which has been a valuable experience for me.

Signature of student

Name : GAURAV KUMAR SHARMA

Batch : 2010-2012

Institute name and place : : MIET, Meerut

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1. EXECUTIVE SUMMARY

As per the title suggest the project report has been prepared regarding the growth and

development of online trading in India. Online trading was initiated by NSE in India and

soon after the other exchanges also followed it. There was a major boom in yr. 2000 when

lots of online trading companies came with a bang but only few were survived because of

lack of computer knowledge and low internet penetration. There are two types of online

trading companies one is the banking online trading companies and the other is non-

banking trading. A few examples of banking online trading companies are HDFC

securities, ICICI direct.com, UTI securities etc. On the other hand non banking trading

companies are greenbuccksonline.com, Angel Broking, Reliance Money etc. Today online

trading contributes are about 8-10%. It is continuously growing and has a huge market

potential. A study was undertaken to determine the growth of various online trading

companies in India in terms of trade done by them through online and services provided

by them. Major findings indicates that out of a survey of 50 respondents it was seen that

major investors prefer online trading because of few major factors such as time saving

convenience, protection through Freudian brokers etc. although during my research project

I’ve seen that most of the respondents feel online trading, a secure way of investing into

stock market still a few of them feel it unsafe and a bit complicated but they posses

information about online trading. Today the online trading companies having cut-throat

competition in our offering whose brokerage discounts lower margin money and zero

balance account. Due to the rising education awareness and use of internet there is a huge

potential for online trading in future and companies must come up with innovative

offerings to capture the untapped market..

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1.1Company profile

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Greenbucks, founded in 2007, is one of the leading brokerage houses in the country

offering a wide range of financial services to retail clients, corporate and HNIs. Our

philosophy is client centric and we believe in creating value for our clients.

At Greenbucks, nothing supersedes quality. We have a pool of highly qualified staff to

give expert advice to our client and to ensure client satisfaction. We believe in maintaining

a long term relationship that is based on values, trust and professionalism.

Greenbucks helps investors understand the risks and advantages of trading in Stocks, stock

& commodities futures and Currency Derivatives before they take the big leap. It provides

clients with an effective platform to participate and trade in Stocks, stock & commodities

futures and Currency Derivatives with all the leading Stock and Commodity Exchanges of

the country. Greenbucks Trading services are a class apart and the following features

differentiate our services from others.

 Professionally qualified analysts with rich industry experience

 Research on Stocks, stock & commodities futures and Currency Derivatives

 Market watch for NSE, BSE*, MCX and NCDEX

 Streaming quotes and live updates

 Relationship management desk

 Educating clients on Various market factors

Greenbucks, an effort initiated to spearhead Exchange based Stocks, stock &

commodities futures and Currency Derivatives. Greenbucks is not only a trade facilitator

but also caters to the unique needs of exchange based trading with its –

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 Highly process driven, diligent approach

 Powerful Research & Analytics

 One of the “best-in-class” dealing rooms

How will we make trading easier and better?

 Personal Assistance

 Dedicated Relationship Managers

 Dedicated Dealers for facilitating trading and post trade needs

Our Value Adds

 Access to all your accounts through your unique Customer Identity Code

 Access your ledger balances and account information over internet and at the

branch help Desk

 Browser and application based platforms can also be made available for trading

 SMS services for research advice and to keep you abreast with your investments

 Regular News and Updates on market

Greenbucks is fast emerging as a leader in the Insurance and Mutual Funds distribution

space. Greenbucks has over 100 branches and a huge number of “Business Development

Executives” who help to source and service the customers throughout the country.

Greenbucks is fast becoming the preferred “Vendor Independent” distribution houses

because of providing efficient service like free pick-up of collection of cheques/DD’s,

Keeping track of the premiums etc to its customers.

Greenbucks offers the following distribution products:-

 IPO's

 Mutual Funds

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 Insurance

IPO

At Greenbucks you can invest in the Primary markets (Initial Public Offerings) online

without going through the hassles of filling up any IPO application forms or any other

paperwork.

We shall make sure that you do not miss the opportunity to subscribe/invest in a good IPO

issue by providing you an online IPO application form, transfer of funds online through

secured payment Gateways of leading banks like ICICI, HDFC, AXIS bank In addition to

the above we shall provide you with the In-Depth analysis of the IPO issues which shall be

hitting the Indian Markets in near future, IPO Calendar, analysis on the recent IPO listings,

prospectus, offer documents and other IPO research reports so as to help you take an

informed decision to invest in the IPO issues.

Online IPO facility is open to all our registered clients at no cost whatsoever. All you need

is the following to subscribe online to the IPO issues:

 A trading account with Greenbucks

 A Demat account with Greenbucks

 An access to the net banking facility with the Banks through which Greenbucks

has operational Gateway facility (ICICI, HDFC and AXIS Bank).

 You must have signed a Power of Attorney (POA) agreement for applying in IPO’s

online

Mutual Fund

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Grow your small investments with the Power of Greenbucks Did You Know?Past

performance may or may not be sustained in the future Mutual Funds are Flexible,

Affordable and a Low Cost Investment Option

 Mutual Funds offer a relatively less expensive way to invest when compared to

other avenues such as capital markets.

 The fee in terms of brokerages, custodial fees and other management fees are

substantially lower than other options and are directly linked to the performance of

the scheme.

 Investment in mutual funds also offers a lot of flexibility with features such as

regular investment plans, regular withdrawal plans and dividend reinvestment

plans enabling systematic investment or withdrawal of funds

 Even if you are an investor, who could otherwise not enter stock markets because

of low investible funds, you can benefit from a portfolio comprising of high-priced

stocks because they are purchased from pooled funds.

Steered by a highly talented and motivated team Greenbucks Comtrade Private Ltd. is

committed to customer fulfillment in a professional, transparent and ethical environment.

Our highly professional and trained personnel are devoted to their customers and are

readily available for personalized attention.

1.2 MANAGEMENT PROFILE


MR. GURNAM SINGH

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Mr. Gurnam Singh, Chairman and Managing Director of the company, is a very seasoned

businessman with over 35 years of experience in a wide range of businesses. His clarity of

nvision, leadership skills, ingenuity in approach and penchant for understanding customer

needs has helped the company register spectacular growth and success. He always follows

the hands on approach in dealing with clients and associates. He has played an integral

role in the management and strategic development of the company since its creation and

has been responsible for defining the ethos and moral basis of the Company as a firm with

a public conscience. .

VARINDER SINGH

Mr. Varinder Singh has been the guiding beacon of the company since its inception. He

brings with himself over 30 years of business experience. His innovative approach to

tackling problems and integrity earned the company galloping growth and respect. He has

been responsible for facilitating the day to day running of the Company. He is deeply

involved in the financial planning of the Company.

SANDEEP JHA

Mr. Sandeep Jha through his aggression and dynamism brings energy to the team. He has

an illustrious professional track record of spanning over 20 years where in he has handled

various assignments at senior level with some of the best names in the industry. He plays a

very key role in handling the day to day operations of the company. His duties are many

and include managing third party/clients complaints, risk management, external audits, the

annual business plan and performance management throughout the firm.

SATVEER SINGH

Mr. Sat veer Singh brings with himself over 8 years of managerial experience. An MBA

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from the University of Warwick (U.K.), Satveer plays an instrumental role in forming

business strategies of the company and smoothing its operations. His focus is on creating

and maintaining the efficient high quality integrated delivery of the firm's services to its

clients. He believes that every action is a process and there has to be a system for

everything. He ensures that these systems are followed.

Greenbucks brings together a highly professional team that comprises individuals with

extensive business as well as industry experience.

UDAY S SINGH

Mr. Uday S Singh, Vice-President (Operations) with 5 years of hard core experience, has

played a key role in the growth of the organization by building teams and in developing

strategies to ensure smooth functioning of the various departments of the organization.

SANJAY KUMAR MISHRA

Mr. Sanjay Kumar Mishra, Vice-President of the company. A man of many facets, he has

more than 5 years of rich experience in the Commodity Market. He has a dream to impart

commodity as an investment tool to a large number of investors, hedger and traders

wishing to make a smart return on their investment. He has worked with almost all big

giants of Commodity Market. He has extensive knowledge and expertise in retail and

wholesale broking.”

1.3 GREEN BUCKS PRODUCTS & SERVICES

Greenbucks customers have the advantage of trading in all the market segments together in

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the same window, as we understand the need of transactions to be executed with high speed

and reduced time. At the same time, they have the advantage of having all Advisory Services

for Life Insurance, General Insurance, Mutual Funds and IPO’s also.

Greenbucks is a customer focused financial services organization providing a range of

investment solutions to our customers. We work with clients to meet their overall investment

objectives and achieve their financial goals. Our clients have the opportunity to get

personalized services depending on their investment profiles. Our personalized approach

enables clients to achieve their Total Investment Objectives.

Our key product offerings are as follows:


Equity
Commodity
Depository
Distribution
NRI Services
Back Office
Fixed Income
Currency Derivatives

Equity
Greenbucks introduces you to the world of Empowered Investing! Our world-class secure

technology offers you the facility of investing in financial markets from the convenience

of your home/office, with complete peace of mind.

Backed by Sequoia Capital, Subhkam Ventures and Nexus India (which have funded

companies such as Apple, Google, YouTube, Komli, MapmyIndia etc), Greenbucks

Investment Solutions has become one of India’s leading financial intermediaries within 6

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years of inception.

Greenbucks has presence across 235 cities in India with over 500 business offices.

Founded by first generation entrepreneurs, Greenbucks is a professionally managed with

cumulative experience of over 400 man years in the financial markets.

Greenbucks offers its customers a wide range of financial services including trade

execution on BSE, NSE, Derivatives, Depository Services, Expert advice from

Greenbucks’s in-house research team, Commodity trading etc.

Why Choose Greenbucks?

Greenbucks makes you an Empowered Investor by offering you-

 Superior tools to trade

 Brokerage that does not eat into your profits

 Online & Offline Trading facilities

 Luxury to call and trade when you are not online.

 Trust, that only a professional broking house can provide

 Expert investment advice based on research that is best in the industry

 Trade simply in both cash and derivatives market through our secure world-class

technology

 Online Integration for secure funds transfer with top nine banks (ICICI, HDFC,

Oriental Bank of Commerce, Axis Bank, Bank of India, Corporation Bank,

Karnataka Bank, South Indian Bank, Vijaya Bank, Yes Bank)

 Secure Call and Trade facility

 Complete transparency, No hidden charges


Documentation Required for Demat & Trading Account Opening-

 Photocopy of Pan Card

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 Residence proof – Photocopy of Passport or Driving License or Ration card or

Voter ID or MTNL/BSNL bill

 You will have to submit 2 coloured passport size photographs

 6 months bank account statements/ Income Tax Return for the last financial year if

you are interested in Derivatives Trading, but not if you are interested in Cash

Trading only

 We look forward to your joining and growing with the Greenbucks family! To

meet our Investment Advisor and open an account, just contact us


Commodities

Trade in Commodity with the Power of Greenbucks As the stock market takes a beating,

commodity prices are soaring. In times of high inflation, commodity futures can offer you

the edge that you were looking for. With a Greenbucks Trading Account, you can trade in

Commodity Futures from both MCX and NCDEX using a single screen.

WHY TRADE IN COMMODITIES?

No balance sheet, P&L statement, EBITDA and reading between the lines. Commodity

trading is about the simple economics of supply and demand.


Supports are known, only resistance matters! Minimum support price acts as a statutory

support for many commodities.


No Dollar-Rupee premiums/discounts. No hedging on the NYMEX. Indian commodity

derivatives hedge both forex and commodity specific risk, at a single cost.
No brainstorming over market direction. Seasonality patterns quiet often provide a clue

to both short- and long-term players.


No scam, no price rigging. Commodity trading comes with no insider trading

information and company specific risk

THE GREENBUCKS ADVANTAGE

Live Market Watch for commodity market (NCDEX, MCX) in one screen.

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Add any number of scrips in the Market Watch.
Tick by tick live updation of Intraday chart.
Greater exposure for trading on the margin available
Common window for market watch and order execution.
Key board driven short cuts for punching orders quickly.
Real time updation of exposure and portfolio.
Facility to customize any number of portfolios & watchlists.
Market depth, i.e. Best 5 bids and offers, updated live for all scripts.
Facility to cancel all pending orders with a single click.
Instant trade confirmations.
Stop-loss feature.

Depository

Greenbucks Depository Services offers dematerialization services as a participant in

Central Depository Services Limited (CDSL), through its Depository operations. The

company believes in efficient and cost-effective and integrated service support to its

brokerage business. Greenbucks Securities Private Limited, as a depository participant,

will offer depository accounts for individual investors as well as corporates which will

enable them to transact in the dematerialized segment, without any hassles.

Depository offer a safe, convenient way to hold securities as compared to holding

securities in paper form. Our service provides an integrated single platform for all our

clients ensuring a risk free, efficient and prompt depository process.

Facilities Offered by Greenbucks

* De-materialization:

You can submit your physical shares at the Greenbucks branch for dematerialization into

electronic form.

* Re-materialization:

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You can also request for Re-materialization which enables you to convert the

dematerialized shares into physical form.

* Transfer:

Inter and intra depository services are available through which you can transfer shares.

* IPO:

You can apply for IPO using your demat account details and on allotment the securities are

transferred directly to your demat account.

Corporate Actions:

While holding your stock in demat account, in case you are eligible for any bonus and

rights issues the allotment would be transferred to your demat account.

You can view your demat account over the Internet and avail a host of services. This

facility empowers our clients to view, download, print updated holdings with respective

valuations.

Distribution

Greenbucks is fast emerging as a leader in the Insurance and Mutual Funds distribution

space. Greenbucks has over 100 branches and a huge number of “Business Development

Executives” who help to source and service the customers throughout the country.

Greenbucks is fast becoming the preferred “Vendor Independent” distribution houses

because of providing efficient service like free pick-up of collection of cheques/DD’s,

Keeping track of the premiums etc to its customers.

Greenbucks offers the following distribution products:-

 IPO's

 Mutual Funds

 Insurance
IPO
At Greenbucks you can invest in the Primary markets (Initial Public Offerings) online

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without going through the hassles of filling up any IPO application forms or any other

paperwork.

We shall make sure that you do not miss the opportunity to subscribe/invest in a good IPO

issue by providing you an online IPO application form, transfer of funds online through

secured payment Gateways of leading banks like ICICI, HDFC, AXIS bank

In addition to the above we shall provide you with the In-Depth analysis of the IPO issues

which shall be hitting the Indian Markets in near future, IPO Calendar, analysis on the

recent IPO listings, prospectus, offer documents and other IPO research reports so as to

help you take an informed decision to invest in the IPO issues.

Online IPO facility is open to all our registered clients at no cost whatsoever. All you need

is the following to subscribe online to the IPO issues:

 A trading account with Greenbucks

 A Demat account with Greenbucks

 An access to the net banking facility with the Banks through which Greenbucks

has operational Gateway facility (ICICI, HDFC and AXIS Bank).

 You must have signed a Power of Attorney (POA) agreement for applying in IPO’s

online.
Mutual Fund

Grow your small investments with the Power of Greenbucks

Did You Know?Past performance may or may not be sustained in the future

Mutual Funds are Flexible, Affordable and a Low Cost Investment Option

 Mutual Funds offer a relatively less expensive way to invest when compared to

other avenues such as capital markets.

 The fee in terms of brokerages, custodial fees and other management fees are

substantially lower than other options and are directly linked to the performance of

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the scheme.

 Investment in mutual funds also offers a lot of flexibility with features such as

regular investment plans, regular withdrawal plans and dividend reinvestment

plans enabling systematic investment or withdrawal of funds

 Even if you are an investor, who could otherwise not enter stock markets because

of low investible funds, you can benefit from a portfolio comprising of high-priced

stocks because they are purchased from pooled funds.


NRI services

Capitalize on Incredible Investment Opportunties back Home with Greenbucks

Greenbucks now offers a convenient and hassle-free way of Investing in the Indian

Securities Market to NRIs who wish to participate in the Indian Growth story. We at

Greenbucks, guide our NRI clients at every step of their investment needs so that they

have complete peace of mind about their investments in India. Our capability to analyze

relevant information in market trends, relevant data and the best-in-class investment

products plays an important role in assisting our NRI clients in making a right decision.

Our rich experience of capital markets & retail financial services makes us a reliable NRI

investment solutions company. Our products, services and technology help facilitate an

excellent investment experience.

The Investment Opportunity called "India"

 India's economy is sizzling and is one of the fastest growing in the world

 Political stability and broad consensus on reforms Liberal and transparent foreign

investment regime

 Well developed banking system • Vibrant capital market. (National Stock

Exchange: third largest, Bombay Stock Exchange: 5th largest in terms of number

of trades)

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 Vibrant capital market. (National Stock Exchange: third largest, Bombay Stock

Exchange: 5th largest in terms of number of trades)

 India is rated as the most attractive destination for offshore business processing by

global consultancy A T Kearney

 India amongst the leading entrepreneurial hotbeds globally (Red Herring clubs

India with Israel)

 Indian policies fully compatible with World Trade Organization

 World bank sees India’s growth positive (Source Hindustan Times)

 220 of the fortune 500 companies source software from India

Greenbucks now offers a convenient and hassle-free way of Investing in the Indian

Securities Market to NRIs who wish to participate in the Indian Growth story We

at Greenbucks, guide our NRI clients at every step of their investment needs so that

they have complete peace of mind about their investments in India. Our capability

toanalyze relevant information in market trends, relevant data and the best-in-class

investment products plays an important role in assisting our NRI clients in making

a right decision. Our rich experience of capital markets & retail financial services

makes us a reliable NRI investment solutions company. Our products, services and

technology help facilitate an excellent investment experience


Back office

Greenbucks through its online back-office aims to increase the transparency and provides

you the link to view the details of your account online anytime and anywhere

Here you have the advantage of viewing the following reports online:

Sauda Details
Financial Ledger
Net position for the day
Net position Detail (for the complete financial year)
E-Contract Note

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Fixed income

The Fixed income vertical of GREENBUCKS Group deals in Sovereign Paper and Money

Market/Fixed Income Instruments Broadly, it undertakes following:


 Dealing in all types of money market instruments viz. Commercial paper

(Origination & Placement), Certificate of Deposit and Treasury Bills both in

Primary and Secondary market.

 Dealing in Government securities (including securities of Oil, Fertilizer & Food

Bonds) and other PSU/ Corporate bonds with counterparties like Banks, Primary

Dealers, Mutual Funds, Insurance Companies, Regional Rural Banks, Cooperative

Banks, Central & State PSUs, Housing Finance Companies, NBFCs & Corporates.

 Retailing of Central, State Government Securities and Bonds to PF Trusts,

Universities

 Advisory Services to PF Trusts.

 Arrangers for Private placement of Bonds & placing it with Banks, Mutual funds,

Insurance Companies & Corporates.

 Securitization of receivable portfolio of Housing Finance Companies, Banks &

NBFCs by way of Pass through certificates


Currency derivatives

Greenbucks Offers The Power of Currency Derivatives


Currency derivative is a contract between the seller and buyer, whose value is to be

derived from the underlying asset, the currency amount. A derivative based on currency

exchange rates is a future contract which stipulates the rate at which a given currency can

be exchanged for another currency as at a future date.


The Benefit of Currency Derivatives

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The Currency Derivatives product is a bundle of opportunities for a number of players.

It is a new asset class for diversification of investments for all Resident Indians
It gives hedging opportunities to: a) Importers and exporters, who can hedge their

future payables and receivables

b)Borrowers, who can hedge foreign currency (FCY) loans for interest and principal

payments

c)Resident Indians, who can hedge their offshore investments

d)Commodity traders can hedge against unfavourable movements of gold, crude etc.
It gives arbitrage opportunities
It gives trading opportunities because of its volatility and multiplicity
It provides highly transparent rates to traders as it is exchange-traded
Unlike currency forwards offered by banks, currency futures trading does not have to

be backed by an underlying merchant transaction exposure


Tight bid ask spreads; usually 0.25 paisa wide
Margin requirements less than 5% to take exposure on a lot size of $1000, €1000,

£1000 and ¥1,00,000 respectively


For exporters and importers, no credit line required from their Banker as is the case

with forwards
Ideal tool for those with smaller exposures, as in the case of travel needs, educational

payments etc.

The Greenbucks Advantage


Facility to our existing offline as well as online customers to trade in Currency

derivatives by filling up a simple form. There is no need to open a separate trading

account to trade in Currency Derivatives.


Your Cash margin with Greenbucks can be used for both Equity as well as Currency

transactions
Online & Offline trading facility on all the bourses. Facility to place buy/sell orders

through branches, internet and over the phone.


Receive education on the product through seminars/con-calls organized by Greenbucks.

Exclusive daily commentary and research reports by a specialized Currency Analyst

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Team that helps you take informed decisions
Regular updates on Dollar INR movement with calls to buy and sell
Special consultancy to Exporters, Importers & Corporate for their Forex transactions

1.4 HISTORY OF ON LINE TRADING

The birth of online trading came with the debut of the Internet. Prior to this, everyone who

traded placed their order through a broker who greatly influenced their purchase decisions.

As a matter of fact, only large businesses had access to the web before 1979. Today,

however, daily investments are made by individuals through the Internet as online trading

continues to remain one of society's most popular ventures.

History

Online trading began in the 1900s with the advent of the Internet. Where traders once had

to physically call in their transactions, online trading opened a new window of

opportunity. Traders were able to place their transactions independent of an external

broker. Online brokerage firms became the new way to conduct business. CompuServe

came on the scene in 1969 as the first major online service company. By the mid-1980s, it

was considered a giant in its field.

1.Time Frame

By the end of the 1900s other brokerage firms began to establish themselves. First Omaha

Securities, Inc. was one of the first. This company went through a period of transformation

and eventually became TD Ameritrade in 2005. Another company, TradePlus, made its

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first stock trade in 1983. It offered the public the opportunity to conduct business with

America Online as well as CompuServe. Business grew rapidly and nine years later, Trade

Plus became a reputable firm. Today, Trade Plus (now known as the E-Trade Group)

remains a leader in the industry.

2.Types of Brokers

1. There are several types of online brokers and it is pertinent to choose a reputable

company. Some things to consider when choosing an online broker include the minimum

investment needed to begin trading; amount of inactivity fees; trading support;

commissions and whether the broker is involved in other businesses. Carefully weigh the

answers to these questions before settling on an online broker. As this broker has access to

your financial information, you need to make sure that they have a secure system in place.

2.Considerations

By the 1900s online investing had exploded. Internet access became affordable, making

the use of the Internet widespread. The idea of being self-sustained as a trader was

appealing. There was no need to get a broker involved and business could be conducted

around the clock. By January of 1996, the first e-broker was developed and hundreds

opened accounts online brokers. If an individual was able to conduct appropriate

preparatory research and had reasonable management skills, he was able to succeed

online.

3. Benefits

The benefit of online trading outweighs offline by a great margin. Perhaps the greatest

benefit is the ability to take control of

your own future. Online trading eliminates the "middleman," those sales agents who don't

really have your best interests at heart. Online stock trading allows you to call your own

shots. It is you that places the trade. By trading online you can also save on trading

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commissions. Online trading also makes good use of day trading. Day trading is not a

viable option in offline trading because of the high costs of broker assisted trades.

4. Trading Today

Online trading has developed tremendously since its inception in 1994. Today practically

anyone with the means can invest with a reputable company, such as Forex. The Forex

company became a new major contender to the control of the trading market. The modern

online Forex Company offers new investment options for online traders, such as the ability

to use margin account as leverage to investments. This means a trader can purchase a large

sum of foreign currency with paying the full price. Margin trading allows for greater

buying power and larger profits

1.5 INDUSTRY ANALYSIS

1. FINANCIAL SYSTEM
2. DIFFERENT TYPES OF MARKETS
3. STOCK EXCHANGES
4. SEBI FRAMEWORK

Following diagram gives the structure of Indian financial system:

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FINANCIAL MARKET:

activities and intermediaries. The unorganized market is composed of indigenous bankers

money lenders, individual professional and non-professionals. 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

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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-term)

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.

MONEY MARKET:

Money market is a place where we can raise short-term capital.

Again the money market is classified in to

 Inter bank call money market

 Bill market and

 Bank loan market Etc.

 E.g.; treasury bills, commercial papers, CD's etc.

CAPITAL MARKET:

The capital market is the market for securities, where companies and the government can

raise long term funds. The capital market includes the stock market and the bond market.

Financial regulators ensure that investors are protected against fraud. The capital markets

consist of the primary market, where new issues are distributed to investors, and the

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secondary market, where existing securities are traded. Capital market thus plays a vital

role in channelizing the savings of individuals for Investment in the economic

development of the country. As a result the investors are not constrained by their

individual abilities, but by the abilities of the companies, which in turn enhance the

savings and investments in the country,liquidity of capital market is an important factor

affecting growth. Since projects require long term finance, but on the other hand, the

investor may not like to relinquish control over their savings for a long time. A liquid

stock marketensures a quick exit without incurring heavy losses or costs. Thus

development ofefficient market system is necessary for creating conductive climate for

investment and economic growth. 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, and 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, 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).

Function:

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The main services of the primary market are origination, underwriting, and distribution.

Origination 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:

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 scrip’s are traded”. It is a market

place which provides liquidity to the scrip’s issued in the primary market. Thus, the

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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 market are mandatory

to list their shares on one or more stock exchanges in India. Listing of scrip’s provides

liquidity and offers an opportunity to the investors tobuy or sell the scrip’s.

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.

1.6 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

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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:

 Shares of public company.

 Government securities.

 Bonds

History of Stock Exchanges:

The only stock exchanges operating in the 19th century were those of Mumbai setup in

1875 and Ahmadabad 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

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securities contracts (control) act of 1925 used to regulate trading in securities. Under this

act, the Mumbai stock exchange was recognized in 1927 and Ahmadabad 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 committee’s 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. By giving quotations to the

listed companies, they help trading and raise funds from the market. Over the hundred and

twenty years during which the stock exchanges have existed in this country and through

their medium, the central and state government have raised crores of rupees by floating

public loans. Municipal corporations, trust and local bodies have obtained from the public

their financial requirements, and industry, trade and commerce- the backbone of the

country’s economy-have secured capital of crores or rupees through the issue of stocks,

shares and debentures for financing their day-to-day activities, organizing new ventures

and completing projects of expansion, diversification and modernization. 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 some

benefits and assets valuation has become easier for tax and other purposes.

Various Stock Exchanges in India:

At present there are 23 stock exchanges recognized under the securities contracts

(Regulation), Act, 1956. Those are:

1. Ahmadabad Stock Exchange Association Ltd.

2. Bangalore Stock Exchange

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3. Bhubaneswar Stock Exchange Association

4. Calcutta Stock Exchange

5. Cochin Stock Exchange Ltd.

6. Coimbatore Stock Exchange

7. Delhi Stock Exchange Association

8. Guwahati Stock Exchange Ltd

9. Hyderabad Stock Exchange Ltd.

10. Jaipur Stock Exchange Ltd

11.Kanara Stock Exchange Ltd

12.Ludhiana Stock Exchange Association Ltd

13. Madras Stock Exchange

14. Madhya Pradesh Stock Exchange Ltd.

15.Magadh Stock Exchange Limited

16.Meerut Stock Exchange Ltd.

17.Mumbai Stock Exchange

18.National Stock Exchange of India

19.OTC Exchange of India

20. Pune Stock Exchange Ltd.

21.Saurashtra Kutch Stock Exchange Ltd.

22.Uttar Pradesh Stock Exchange Association

23.Vadodara Stock Exchange Ltd.

MAJOR STOCK EXCHANGES:

NSE

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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 (FI’s) 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.

� 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.

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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. It also

strives to educate and enlighten the investors by conducting investor education programmers and

making available to them necessary informative inputs. 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 dayto- 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,

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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

 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 forthe

admission of members in the stock exchanges. The qualifications for becoming a member

of a recognized stock exchange are given below:

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� 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.

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

� The minimum required education is a pass in 12th standard examination.

2. SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)


The securities and exchange board of India 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

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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 securitie market.

� Registering and regulating the working of intermediaries associated with securities

market as well as working of mutual funds.

� 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

2.1 DEFINITIONS AND EXPLANATIONS

DEFINITIONS AND EXPLANATIONS

1. SHARES:-

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In everyday language, when we talk of shares we normally refer to equity shares or

ordinary shares of a company. The terms shares and stock essentially means the same

things, the letter being a more common American usage. An equity share is evidence of

ownership in a company. The physical evidence of this ownership of this document is

called the Share Certificate. Now days, shares are usually kept in electronic, or

dematerialized, form with a depository participant (Banks, brokers, financial institutions)

of the National Securities Depository Limited (NSDL). However, if one wants one can

still hold the share in the physical form which has your name endorsed on it, and is proved

that you are a part owner of the company. Your ownership rights are proportionate to the

number of share you own. Companies issue shares of a certain fixed denomination, called

face value or par value of that share, which is clearly indicated on a share certificate in the

physical form.

2. INVESTMENT: -

Investment essentially refers to what you do with your savings in order to preserve them

and make them grow or yield an income. If you keep your savings in the form of cash,

they are certainly going to diminish in value because the purchasing power of money is

constantly going down as a result of inflation. (The value of money is judged by the

quantity of goods and services you can buy with it). Therefore, if you want to maintain or

increase the value of your savings, you have to keep them in forms other than cash. This is

what investment is all about, deployment of your saving with the intentions of preserving

or increasing their value. This deployment can be done by using your savings to buy land,

residential properties, commercial properties, gold, jewelry, works of art, fixed deposits in

banks and companies, shares, bonds, infact, anything whose value is likely to either

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remain constant or appreciate with time. Investment also refers to using one's savings with

the intention of earning an income.

3. DEMAT A/C:-

On doing an online business ever customer has to open and demat account in any bank

Whichever he likes. Demat account is the account in which the trading done by the

customer is mentioned. If the customer sales or purchases any share the details of this sale

and purchasing are in demat account. This account contents the name of the shares and

also the number of shares held Or sold and also the rate of the share with this demat

account. It is also compulsory for every customer to open a saving account in the bank

because the amount which is to be received when the customers sales the shares are

transferred from the demat account to the saving account. It is the responsibility of the

customers that the share which he purchased or sales are properly transferred in demat

account from the stock exchange whichever he deals. The amount of dividend whichever

to be received on the shares when held for one or more year are also transferred in this

demat account. It is compulsory for every customer to have a PAN no. For opening a

demat account. If PAN no. Is not there is no chance for the customer to do any trading on

line. There is no limit of amount to deal in this account.

4. CIRCUIT LIMIT:-

While issuing the shares to the public the company has to fix a particular limit of the rate

of the per share this limit is called as circuit limit. This circuit limit is generally fixed on

the percentage basis. This circuit limit is applied to both the ends of the share. That is to

the upper limit also and also to the lower limit actually circuit limit is of two types

1) Upper limit

2) Lower limit

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It is compulsory for every company to fix the circuit limit. This limit is beneficial to both.

The customer and also to the company generally every company fix below 10%of the rate

of per share.

5. UPPER LIMIT: -

While issuing the shares to the public the company has to fix the upper limit this limit is

also calculated in percentage the limit is also beyond which the rate of the shares cannot

exceed nor that the customer doing the trading can sell above the level. For ex. Customer

wants to sell a share which is of Rs10 and its upper limit is fixed at 10% so in this case the

person will have to sell it at Rs11 or the ate which ever he wants but the person cannot sell

it beyond this Rs 11 because by addition of upper limit to the rate of share the maximum

amount of the shares is Rs11 only and not above.

6. LOWER LIMIT: -

At the time of issuing share the company has to fix the lower limit also. This lower limit is

calculated on the basis of the rate of the shares. This limit bears the same percentage,

which is mentioned for the upper limit of the share. Like upper limit in this limit also the

share minimum rate of the share is fixed the customer who wants to see; the holding

shares has to first consider the upper & lower limit of the share he cannot sell the share

below the lower limit and not above the upper limit like the upper limit Percentage

generally in this limit also the percentage is below 10% of the face value of the shares the

percentage is below 10% of the face value of the shares the percentage of the upper

&lower limit is equal to every type of share For ex. Suppose the person wants to sell the

shares and the rate of the share is Rs. 10/- and the lower limit percentage is 10% of the

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rate. So in this case the person cannot sell the share at below Rs. 9/-. He will have to sell

at above Rs. 9/- or up to the upper limit of the share.

2. SENSEX:-

When the shares are issued to the public the stock exchange gives a particular group to the

Company. For ex. The Reliance Group is given the group “A” like this there are several

Companies which fall in “A” Group. The weightage mean is calculated according to its

equity when all the companies of Group “A” has calculated this weightage mean they are

added all together when this addition is done the result which comes down is known as

“Sensex”. The trading of shares of “A” group is totally depended on this sensex value. The

price of the share rises this sensex value also rises and when the price of this share comes

down the sensex value also comes down. With the sensex

3. ROLLING SETTLEMENT SYSTEM:

SETTLEMENT CYCLE SCHEDULE SR. NO. DAY DESCRIPTION OF ACTIVITY

TRADE

1 T Trading Day

2 T+2 PAY IN BY 10.30 am.

3 T+2 PAY – OUT BY 2 pm.

4 T+3 Auction of shortage in deliveries

5 T+5 Auction pay-in by 10.30 (1 am/ payout by 2 pm.)

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. The rolling settlement

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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 demats 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 broker’s terminals late by 1.30 p.m on T+1.

Depository participants accept the instructions for pay in securities by investors in

physical form up to 4 p.m and in electronic form up to 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 am 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

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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.

2.2TYPES OF ONLINE TRADING COMPANIES IN INDIA

1. Greenbucks

2 ICICIDirect

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3. Indiabulls

4. 5Paisa

5. Motilal Oswal Securities

6. HDFC Securities

7. Reliance Money

8. IDBIPaisaBuilder

9. Religare

10. Geojit

11. Net worth Stock Broking

12. Kotak Securities

13. Standard Chartered-STCI Capital Markets Ltd

14. Angel Trade

15. HSBC Invest Direct

2.3TYPES OF ONLINE TRADING

There are three basic types of online trading accounts involved with stock trading.

 Cash Account
 Margin Account

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 Simulated trading account or virtual trading account.

Each specific type has its own pros & cons. Knowing the capabilities and limitations of

each one should be understood whether or not you will be opening them or not.

Cash Account

a cash account is one of the common type of trading account . With a cash trading

account, you can use the total amount of money you have deposited in your account for

buying accounts.

Margin account

a margin trading account is the riskier of the three types of trading accounts. Basically

with margin trading account any one can borrow money from online brokerage firm to use

on its behalf to place trades for buying stocks. Just like a loan from bank or a credit card,

one will be paying interest on the amount one borrow on margin for the time one is using

the money.

Simulated or virtual trading account

A simulated trading account is an account one can open at most online brokers to buy and

sell stocks without using real money. It is some times called virtual trading account

3. DIFFERENT COMPETITORS

The major players in online trading are:

• Greenbucks.com

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• 5 paisa.com

• KotakStreet.com

• IndiaBulls.com

• ICICIDirect.com

• HDFCsec.com

What you need, when you need it.

3.1 GREENBUCKSONLINE.COM

Company Background

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• Greenbucks Investment Solutions has become one of India’s leading financial
intermediaries within 6 years of inception.

. Greenbucks has presence across 235 cities in India with over 500 business offices.
Founded by first generation entrepreneurs, Greenbucks is a professionally managed
with cumulative experience of over 400 man years in the financial markets
• Focused on providing equity solutions to every segment

Online Account Types

• Classic Account / Applet: Investor in equities and derivatives


• Speed Trade: Trader in equities & derivatives with Technical charts

PRICING FOR RETAIL CUSTOMERS

Classic/ Applet

 Account opening: Rs 750 (life time charges)


 Demat :1st yr NIL
 From 2nd yr : Rs 300 as AMC
 Initial Margin : NIL
 Min Margin Retainable :NIL

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 Brokerage :

Intraday Trading- 0.10%each side +all Taxes


Delivery- 0.50%each side +all Taxes
Exposure: 4 to 6.6 times (on margin money)

Speed Trade Account

•Account Opening : Rs 1000 (Refundable against brokerage in Month + 1)


•Demat 1st Yr : Inclusive in Account Opening
•Initial Margin : NIL
•Min Margin Retainable: NIL
•Brokerage :
Trading 0.10% each side + All Taxes
Delivery 0.50% each side + All Taxes
(Negotiable based on volume)

•Account Access Charges

1. Monthly Rs 500, adjustable qtrly against brokerage of Rs 3000/- for qtr

2. No access charges for gold customers ( Above 1 lac brokerage p.a)

3.2. 5 paisa

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Company Background

Indiainfoline was founded in 1995 and was positioned as a research firm in 2000 e-

broking was started under the brand name of 5 paisa.com. Apart from offering online

trading in stock market the company offers Mutual funds online. It also acts as a

distributor of various financial services i.e. GOI securities, Company Fixed Deposits,

Insurance. Limited ground network, present in 20 Cities.

Online Account Types

•Investor Terminal : Investors / Students

•Trader Terminal : Day Traders / HNI’s

PRICING FOR RETAIL CLIENTS

Investor Terminal

•Account Opening : Rs 500

•Demat 1st Yr : Rs 250

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•Initial Margin : Rs 2500(Compulsory)

•Min Margin Retainable : Rs 1000

•Brokerage:

Trading 0.10% each side + ST

Delivery 0.50% each side + ST

PRICING FOR HNI CLIENTS

Trader Terminal

•Account Opening : Rs 500

•Demat 1st Yr : Rs 250

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•Initial Margin : Rs 5000(Compulsory)

•Min Margin Retainable : Rs 1000

•Brokerage:

Trading 0.10% each side + ST

Delivery 0.50% each side + ST

(Negotiable to 0.05% each side & 0.25%)

•Account Access Charges

Monthly Rs 800, adjustable against Brokerage

Yearly Rs 8000, adjustable against brokerage

3.3 Kotakstreet

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Company Background

Kotakstreet is the retail arm of Kotak securities. Kotak Securities Limited is a joint venture

between Kotak Mahindra Bank and Goldman Sachs.

Online Account Types

•Twin Advantage / Green Channel : 2 DP’s, Limit against shares

•Free Way : Flat Rs 999 Cover Charge p.m, 0.03% per

transaction

•High Trader : 6 Times Exposure Cash & Derivatives, Auto sq off

2:55

•Cash Expressway : Spot payment, additional 0.5% charges

For Kotak Fast Lane / Keat Lite / Keat Desktop are trading interfaces.

Keat Desktop with advanced tools comes at a charge of Rs 500 p.m,

Non refundable

PRICING OF KOTAK

•Account Opening : Rs 500

•Demat : Rs 22.5 p.m

•Initial Margin : Rs 5000(Compulsory)

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•Min Margin Retainable : Rs 1000

•Brokerage Slab wise : Higher the volume, lower the

brokerage. Even older customers (on 0.25% & 0.40%) have been moved to the slab wise

structure wef 1/4/2009

Slab structure of Kotak

Delivery Vol p m Brokerage *

< 1 lakhs 0.65%


1 lakhs - 5 lakhs 0.60% Square Vol off p m

Brokerage **

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< 10 lakhs 0.10% Both Sides

10lakhs - 25 lakhs 0.08% Both Sides

25lakhs – 2 Cr 0.06% Both Sides

2 Cr - 5 Cr 0.05% Both Sides

> 5 Cr 0.04% Both Sides

Brokerage is inclusive of All Taxes

** Min Brokerage of Rs 0.01 per share

Derivatives Vol off p m Brokerage

< 2 Cr 0.07% Both Sides

2 Cr - 5.5 Cr 0.05% Both Sides

5.5 Cr - 10 Cr 0.04% Both Sides

> 10 Cr 0.03% Both Sides

3.4 INDIABULLS

Company Background

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Indiabulls is a retail financial services company present in 70 locations covering 62 cities.

It offers a full range of financial services and Products ranging from Equities to Insurance.

450 + Relationship Managers who act as personal financial advisors

Online Account Type

Signature Account: Plain Vanilla Account with focus on Equity Analysis. The equity

analysis is a paid service even for A/c holders


Power Indiabulls: Account with sophisticated trading tools, low commissions and

priority access to R.M

PRICING OF I.B. ACCOUNTS

Signature Account

• Account Opening : Rs 250

• Demat : Rs 200 if POA is signed, No AMC for this DP

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•Initial Margin : NIL

•Brokerage : Negotiable

Power Indiabulls

•Account Opening : Rs 750

•Demat : Rs 200 if POA is signed, No AMC for this DP

•Initial Margin : NIL

•Brokerage : Negotiable

PAID Research

SCHEME FACILITY

WebBased-1-Month-500 : View & Print on website

WebBased-1-Year-600 : View & Print on website

PrintReport-1-Month-750 : View & Print on website + 10

Reports Delivered

PrintReport-1-Year-9000 : View & Print on website + 10 Reports Delivered


3.5 ICICIDirect

Company Background

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ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of

ICICI Bank Limited and the Website is owned by ICICI Bank Limited.

Account Types

• ICICI Direct e-invest Account: Plain Vanilla Account with focus on 3 in 1

advantage. Differentiated in services within the account

1. Cash on spot

2. Margin Plus

Premium trading interface of ICICIDirect Link is given to DBC partners and HNI’s

• Account Opening : Rs 750

• Schemes : For short periods Rs 750 is refundable against brokerage

Generated in a qtr. These schemes are introduced 3-4 times a year.

• Demat : NIL, 1st year charges included in Account Opening Plus a


facility to open additional 4 DP’s without 1st yr AMC

•Initial Margin : Nil

•Brokerage: All brokerage is inclusive of stamp duty and exclusive of other taxes.

3.6. HDFC securities.com

What you need, when you need it

Company Background

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HDFC Securities Ltd is promoted by the HDFC Bank, HDFC and Chase Capital Capital
Partners and their associates. Pioneers in setting up Dial-a-share services with the largest
team of Tele-brokers

Online Account Type

HDFC Online Trading A/c : Plain Vanilla Account with focus on 3 in 1 advantage

PRICING OF HDFC ACCOUNT

•Account Opening : Rs 750


•Demat : NIL, 1st year charges included in Account Opening
•Initial Margin : Rs 5000/- for non HDFC Bank customers (AQB)
•Brokerage:
Trading 0.15%* each side + ST
Delivery 0.50%** each side + ST

* Rs 25 Min Brokerage per transaction


** Rs 8 Min Brokerage per transaction

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4. RELATIONSHIP MANAGEMENT PROGRAM OF

GREENBUCKS

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participants (dps) who offer Demat services and the securities are held in the electronic
form for the investor directly by the depository.

Greenbucks depository services offers dematerialization services to individual and


corporate investors. We have a team of professionals and the latest technological expertise
dedicated exclusively to our Demat department, apart from a national network of
franchisee, making our services quick, convenient and efficient.
At Greenbucks, our commitment is to provide a complete Demat solution which is simple,
safe and secure.

Opening a DP account with Greenbucks

 One can open a Depository Participant (DP) account, either through a Greenbucks
branch or through a Greenbucks Franchisee center.

 There is no fee for opening DP accounts with Greenbucks. However a nominal


deposit (refundable) is charged towards services which will be adjusted against all
future billings.

4.3. Documents required to opening of Demat account


Requirement for opening Demat A/C:

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All investors have to submit their proof of identity and proof of address along with the
prescribed account opening form.

1. Proof of identity:
You can submit a copy of Passport, Voters ID card, Driving license or PAN card with
photograph.

2. Proof of address
You can submit a copy of Passport, Voters ID card, Driving license, PAN card with
photograph, Ration card or Bank passbook as proof of address. You must remember to
take original documents to the DP for verification.

3. Passport-size photograph.
The above are mandatory requirements as per Securities and Exchange Board of India.

4.4. Dematerialization with Greenbucks

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Dematerialization is the process by which a client can get physical certificates converted
into electronic balances maintained in his account with the DP.

Features:
 Holdings in only those securities that are admitted for dematerialization by
National Securities Depository Ltd (NSDL) can be dematerialized.

 Structure of holding in the securities should match with the account structure of the
depository account. Now shares in different order of names can also be dematted.

Example:
If the shares are in the name of X and Y, the same cannot be dematerialized into the
account of either X or Y alone. However if the shares are in the name of X first and Y
second, and the account is in the name of Y first and X second, then these shares can be
dematerialized in this account.
Only those holdings that are registered in the name of the account holder can be
dematerialized. Physical shares which have not been transferred and are still there
with a transfer deed cannot be dematted. Only a few companies have been given the
permission to offer Transfer-cum-Demat. The list of these companies can be viewed
here.

Rematerialization

Rematerialization is the process by which a client can get his electronic holdings
converted into physical certificates. The client has to submit the rematerialisation
request to the DP with whom he has an account along with a Remit request form. The
physical shares will be posted by the company directly to the clients.

Trades

For all sales made by clients, the shares will have to be given to the broker, so that the
Pay In can be made by the broker to the stock exchange concerned. For that it's
essential that the shares be transferred to the account of the broker well before the
deadline date. One must confirm with the broker the settlement date and settlement

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number and then submit instructions to DP. Also it's important to give the instructions
to DP as early as possible.

Pledge

Pledge enables one to obtain loans against dematerialized shares. So one can get
liquidity without having to sell your shares. A highly simplified procedure may be
availed of for pledging of securities in the electronic mode. The pledged securities
continue to be reflected in the DP account of the clients (pledge) but the concerned
securities are "blocked" and cannot be used for any transactions. As and when the
pledge is to be removed, based on confirmations received from both the pledge and the
pledge, the blocked securities will be released to "Free Balance" of the account holder.

A very big advantage of using pledges in the electronic mode is that the securities
continue to be in your account and therefore all benefits--viz Dividend, Bonus and
Rights--accrue to the holder, i.e. clients and not the bank (pledge).

4.5 Corporate Benefits

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Corporate benefits are benefits given by a company to its investors. These may be either

monetary benefits like dividend, interest etc or non-monetary benefits like bonus, rights

etc. NSDL facilitates distribution of corporate benefits. It's important to mention your

correct MICR No and attach copy of the cheque leaf with your account opening form.

NSDL is planning to distribute all cash corporate benefits to bank accounts directly.

Process of conversion of securities into the demat form

Securities specified as being eligible for dematerialization by the depository in its bye

laws and as under the SEBI (Depositories and Participants) Regulations, 1996 (the

Regulations) can be converted or issued in a dematerialized form. The process of

conversion of securities into a dematerialized form or the issuance of the same in a

dematerialized form can be explained thus:

1. Firstly, the issuer company, whose securities are eligible for dematerialization, has to

enter into an agreement with a depository for dematerialization of securities already

issued, or proposed to be issued to the public or existing shareholders .

2. The investor is given an option to hold the securities in a dematerialized form and it is

his prerogative to exercise the option to hold the securities in that manner.

3. The depository enters into an agreement with the participants who are the agents of the

depository and co-functionaries in the process of dematerialization of securities.

4. Any person can then enter into an agreement, through the participant, with the

depository for availing the services provided by the depository.

5. Upon the entering into such agreement with the depository, the person has to surrender

the certificate pertaining to the securities sought to be dematerialized to the issuer. This

surrender is affected in the following manner

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(i) The person (beneficial owner) who has entered into an agreement with the participant

for dematerialization of the securities has to inform the participant about the details of the

certificate of such securities.

(ii) The beneficial owner has to then surrender the said certificate to the participant.

(iii) The participant informs the depository about the particulars of the securities to be

dematerialized and the agreement entered into between him and the beneficial owner.

(iv) The participant then transfers the certificate pertaining to the said securities to the

issuer along with the details and particulars of the securities.

(v) These certificates are mutilated upon receipt by the issuer and substituted in the records

against the name of the depository, who is the registered owner of the said securities. A

certificate to this effect is sent to the depository and all stock exchanges where security is

listed.

(vi) Subsequent to this, the depository enters the name of the person who has surrendered

the certificate of security as the beneficial owner of the dematerialized securities.

(vii) The depository also enters the name of the participant through whom the process has

been carried out and sends an intimation of the same to the said participant.

6. Once the aforesaid process of dematerialization is carried out, the depository has the

responsibility to maintain all the records pertaining to the securities that have been

dematerialized.

Benefits of Depository System

In the depository system, the ownership and transfer of securities takes place by means of

electronic book entries. At the outset, this system rids the capital market of the dangers

related to handling of paper. NSDL provides numerous direct and indirect benefits, like:

 Elimination of bad deliveries

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In the depository environment, once holdings of an investor are dematerialized, the

question of bad delivery does not arise i.e. they cannot be held "under objection". In the

physical environment, buyer was required to take the risk of transfer and face uncertainty

of the quality of assets purchased. In a depository environment good money certainly

begets good quality of assets.

 Elimination of all risks associated with physical certificates

Dealing in physical securities have associated security risks of theft of stocks, mutilation

of certificates, loss of certificates during movements through and from the registrars, thus

exposing the investor to the cost of obtaining duplicate certificates and advertisements,

etc. This problem does not arise in the depository environment.

 No stamp duty

For transfer of any kind of securities in the depository. This waiver extends to equity

shares, debt instruments and units of mutual funds.

 Immediate transfer and registration of securities

In the depository environment, once the securities are credited to the investors account on

pay out, he becomes the legal owner of the securities. There is no further need to send it to

the company's registrar for registration. Having purchased securities in the physical

environment, the investor has to send it to the company's registrar so that the change of

ownership can be registered. This process usually takes around three to four months and is

rarely completed within the statutory framework of two months thus exposing the investor

to opportunity cost of delay in transfer and to risk of loss in transit. To overcome this, the

normally accepted practice is to hold the securities in street names i.e. not to register the

change of ownership. However, if the investors miss a book closure the securities are not

good for delivery and the investor would also stand to loose his corporate entitlements.

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 Faster settlement cycle

The exclusive Demat segments follow rolling settlement cycle of T+2 i.e. the settlement

of trades will be on the 2nd working day from the trade day. This will enable faster

turnover of stock and more liquidity with the investor.

 Faster disbursement of non cash corporate benefits like rights, bonus,

etc.

NSDL provides for direct credit of non cash corporate entitlements to an investors

account, thereby ensuring faster disbursement and avoiding risk of loss of certificates

in transit.

 Reduction in brokerage by many brokers for trading in dematerialized

securities

Brokers provide this benefit to investors as dealing in dematerialized securities

reduces their back office cost of handling paper and also eliminates the risk of being

the introducing broker.

 Reduction in handling of huge volumes of paper


 Periodic status reports to investors on their holdings and transactions,

leading to better controls.


 Elimination of problems related to change of address of investor,

transmission, etc

In case of change of address or transmission of Demat shares, investors are saved from

undergoing the entire change procedure with each company or registrar. Investors have to

only inform their DP with all relevant documents and the required changes are effected in

the database of all the companies, where the investor is a registered holder of securities.

 Elimination of problems related to selling securities on behalf of a

minor

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A natural guardian is not required to take court approval for selling demats securities on

behalf of a minor.

 Ease in portfolio monitoring

Since statement of account gives a consolidated position of investments in all

instruments.

Disadvantages of Dematerialization

The disadvantages of dematerialization of securities can be summarized as follows:

A. Trading in securities may become uncontrolled in case of dematerialized securities.

B. It is incumbent upon the capital market regulator to keep a close watch on the trading in

dematerialized securities and see to it that trading does not act as a detriment to investors.

The role of key market players in case of dematerialized securities, such as stock-brokers,

needs to be supervised as they have the capability 0f manipulating the market.

C. Multiple regulatory frameworks have to be confirmed to, including the Depositories

Act, Regulations and the various Bye Laws of various depositories. Additionally,

agreements are entered at various levels in the process of dematerialization. These may

cause anxiety to the investor desirous of simplicity in terms of transactions in

dematerialized securities. However, the advantages of dematerialization outweigh its

disadvantages and the changes ushered in by SEBI and the Central Government in terms

of compulsory dematerialization of securities are important for developing the securities

market to a degree of advancement. Freely traded securities are an essential component of

such an advanced market and dematerialization addresses such issues and is a step towards

the advancement of the market.

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5. OBJECTIVE OFTHE STUDY

1. To know about the customer satisfaction level with Greenbucks.

2. To find the customer perception regarding Greenbucks products.

3. To compare Greenbucks products with other broker companies’ products.

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6 RESEARCH METHODOLOGY

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Research Methodology is a systematic way which consists of series of actions or steps

necessary to effectively carry out research and the desired sequencing of these steps. The

marketing research is a process of involves a number of inter-related activities which

overlap and do rigidly follow a particular sequence. It consists of the following steps:

1. Formulating the objective of the study

2. Designing the methods of data collection

3. Selecting the sample plan

4. Collecting the data

5. Processing and analyzing the data

6. Reporting the findings

OBJECTIVE OF STUDY

RESEARCH DESIGN

SAMPLE DESIGN

DATA COLLECTION

DATA ANALYSIS

FINDINGS

6.1 RESEARCH DESIGN

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Research Design specifies the methods and procedures for conducting a particular study. A

Research Design is the arrangement of conditions for collection and analysis of the data in

a manner that aims to combine relevance to the research purpose with economy in

procedure.

 Exploratory Research Design

 Descriptive Research Design

On the basis of the objective I used sample technique by the questionnaire method survey.

Descriptive Research Design:

In this research design the objective of study is clearly defined and has accurate method of

measurement with a clear cut definition of population which is to be studied.

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6.2. RESEARCH INSTRUMENT

STRUCTURED QUESTIONNAIRE:-

A Questionnaire consists of a number of questions printed or typed n a definite order on a


form or set of forms. It is the set of questions presented to the respondents for their
answers. When the questions have only two alternatives or of multiple choice, then it is
known as closed-end questionnaire, which is hence used the given study.

6.3SAMPLING DESIGN

A Sample Design is a definite plan for obtaining a sample from a given population. It
refers to the technique or the procedure adopted in selecting items for the sample. The
main constituents of the sampling design are as below: -

1. Sampling Unit
2. Sample Size
3. Sampling Procedure

SAMPLING UNIT:
A sampling framework i.e. developed for the target population will be sampled i.e. who is
to be surveyed. “ We are taking those respondents who are above the age of 18.

 Respondents of Greenbucks
 Respondents of Different Competitors viz :-
1. 5 paisa
2. Kotak Street
3. Indiabulls

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SAMPLING PROCEDURE:-
The procedure to choose the respondents to obtain a representative sample, a probability
sampling technique is applied for the target – market.

NON-PROBABILITY SAMPLING:-

It is a purposive sampling which deliberately chooses the particular units of the universe
for constituting a sample on the basis that the small mass that they so select out of a huge
one will be typical or representative of the whole. Non-Probability sampling technique is
used in the study because the random selection of the universe i.e. all clients can’t be
available randomly.

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7. DATA COLLECTION

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PRIMARY DATA:-

The primary data are those data which are collected afresh and for the first time and
happen to be original in character. The primary data to be collected for the study are:-
 By Interviewing the Respondents of Greenbucks & Different competitors.
 By Questionnaires

SECONDARY DATA:-

Secondary data are those data which have already been collected by someone else and
which already had been passed through the statically process. The secondary data to be
collected for the study are:-

 By Company’s Website.
 By competitors’ websites.

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1. AGE GROUP OF RESPONDENTS OF ONLINE TRADING

Age Greenbucks 5 Paisa Kotak Indiabulls


Group Street
18-30 10 11 12 7
30-45 9 9 8 16
45-60 11 8 15 7
Above 10 12 5 10
60
40 40 40 40

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Analysis: From the above tabulation and charts it has been analyzed that maximum online
traders are from the age group 30-60 .In Greenbucks the maximum number of online
traders are in the age groups 45-60.

2. EDUCATION PROFILE OF RESPONDANTS

Qualification Greenbucks 5 Paisa Kotak Street Indiabulls


Higher sec 6 6 9 8
Graduate 18 24 22 19
Post grad. 16 10 9 13
40 40 40 40

Analysis

Data has been analyzed that the maximum number of traders are graduates and the least
number is of higher secondary level mean education plays a good role in investing in
security market. The percentage of highest no. of traders in Greenbucks also is graduates.

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3.OCCUPATION PROFILE OF RESPONDANTS

Occupation Greenbucks 5 Paisa Kotak Street Indiabulls


Govt. Employee 10 18 24 22
Businessmen 6 11 8 10
Self Employed 24 11 8 8
40 40 40 40

Analysis: From the above tabulation it has been analyzed that the highest number of
traders are government employees while in case of Greenbucks the highest no. of traders
are self employed.

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4. LEVEL OF CUSTOMER SATISFACTION

Satisfaction Level Greenbucks 5 Paisa Kotak Indiabulls


Very Much Satisfied 24 12 14 22
Satisfied 10 16 18 13
Not Satisfied 6 12 8 5
40 40 40 40

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Analysis: From the above tabulation and charts it has been analyzed that GREENBUCKS
is having the maximum customer satisfaction level with 67% and 5 Paisa have most
dissatisfied customers.

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6. CUSTOMER PERCEPTION REGARDING BROKING HOUSES

Perception Greenbucks 5 Paisa Kotak Indiabulls


Excellent 26 18 16 20
Good 8 14 15 16
Poor 6 8 9 4
40 40 40 40

Analysis:
From the above data and tabulation it has been analyzed that 70% Greenbucks
Respondents are having excellent perception regarding it, which indicates good customer
relations in Greenbucks as compared to others.

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7. PREFERENCE FOR ONLINE vs. OFFLINE TRADING

Trading Type Greenbucks 5 Paisa Kotak Indiabulls

Online 32 30 28 30
Offline 8 10 12 10
40 40 40 40

Analysis:

From the above data and tabulation it has been analyzed that maximum no. respondents of
all the broker houses prefer on-line trading rather than off-line.

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8. SWOT ANALYSIS

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STRENGTHS

RESEARCH REPORTS:

Greenbucks Provides research reports based on Fundamental & Technical Analysis by


the dedicated analysts. They constantly Track the pulse of the Market & Provide timely
investment advice in the form of research mails, online chat, printed Reports & sms on
Mobile have maximum accuracy.

DIAL-N-TRADE:

 Dial n Trade number to get investment advice & execute transactions. It has a
dedicated call center to provide this service via toll free no. from anywhere in
India.

CUSTOMER SERVICE:

 Its customer service Team will assist for any help that one need relating to
Transactions, Billing, Demat and other queries.

WEAKNESSES

 Higher brokerage than its most of its competitors


 Not so much effective team
 Less Space in offices at various cities.

OPPORTUNITIES

 Starting Mutual funds can expand the Market Share


 Market is on the Boom and this can help to make more customer
accounts
 Access of live terminal to individual users which was restricted to
previously to Brokers only.

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THREATS

 Increasing Competition
 Competitors offering less Brokerage.
 New players in the market.

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8.2. FINDINGS
Greenbucks is one of the leading retail brokerage firms in the country. It is the retail
broking arm of the Mumbai-based SSKI Group, which is running successfully since 1922

in the country. Which has over eight decades of experience in the stock broking business?
Greenbucks offers its customers a wide range of equity related services including trade
execution on BSE, NSE, Derivatives, depository services, online trading, investment
advice etc. apart from that Greenbucks is lagging behind due to some reasons.

REASONS

 Greenbucks concentrates more on HNI’S (HIGH NETWORTH


INDIVIDUALS) rather than on INDIVIDUAL’S, so the volumes of trading at
Greenbucks is less as compared to other competitors (INDIA BULLS,
ICICIDIRECT, etc )
 Greenbucks is not spending money over the advertisement, like- news papers,
radio, hoardings etc.
 GREENBUCKS is not providing insurance to the loss of individual’s by
charging some premium for insurance. So that more and more individuals will
come for trading at GREENBUCKS.
 There is need of awareness programme/activities so that the more people could
avail the facility of Greenbucks.
 Scanning process is not up to the mark at the time of recruitment due to this it’s
marketing team is not effective as others.
 They do advertisement on internet, but not in the form of print media, so a
general folk is not aware about Greenbucks in comparison of Indiabulls, 5
paisa, Kotak securities.

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8.1 CONCLU SION

Indian economy has been globalized and the capital market has been linked to the
international financial market. Foreign individuals and institutional investors have
encouraged participating into it. So, there is a need for raising the Indian Capital market in
to the international standards in terms of efficiency and transparency. One such measure is
the passing out of the Depository Act during the year 1996.

Dematerialization of securities and under this system is one of the major steps aimed at
improving and modernizing the capital market and enhancing the levels of investor’s
protection measures which aims at eliminating the bad deliveries and forgery of shares and
expediting the transfer of shares.
The drawback of the old system and the pool proof measures sought to improve efficiency
in transfer and transparency standards prompted to evaluate the functioning of the
dematerialization process and to focus on the 8developments of the depository system in
the Indian capital market.

The study showed that there is a growth in the shares included in the Dematerialization
process both in terms of volume of shares and value of after Analyzing thoroughly the pros
and cons of Greenbucks I reached to the conclusion that its R&D services provides best
advice, research reports to the individuals as well as to HNI’s so that they can select the
best stocks in their portfolio. The only drawback is that they give more attention to HNI’s
as compared to individuals; this is why volumes of trading at Greenbucks is less than that
of its competitors like India bulls. Though Greenbucks has tight grips over HNI’s but as
far as small investors are concerned they did not provide personalized services (such as
insurance for loss) to them. customers of the Greenbucks are satisfied with its services
especially with its Research Reports Which provides them a guide to invest in securities
market but Brokerage rate & account opening charges are higher than most of its
competitors.

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8.3. SUGGESTIONS

Greenbucks concentrates more on HNI’S (HIGH NETWORTH INDIVIDUALS) rather


than on INDIVIDUAL’S, so the volumes of trading at Greenbucks is less as compared to
other competitors (INDIA BULLS, 5 paisa, kotak street. )

1. GREENBUCKS should provide insurance to the loss of individual’s by charging


some premium for insurance So that more and more individuals will come for trading
at GREENBUCKS.
Insurance will provide

 More & more individuals will trade through Greenbucks as their investment is safe
& secured.

 It is beneficial to GREENBUCKS as premium is charged to individuals(more


profits for the Greenbucks when individual’s make profits on their investment)

 It’s a WIN-WIN situation for both individuals & the Greenbucks

2. Greenbucks should advertise in news papers, radio, hoardings etc.


REASONS:

1. GREENBUCKS have a excellent RESEARCH & DEVLOPMENT department


but it is not apparent to the public, because of low advertisement.

3. Greenbucks should make their marketing team effective by proper scanning


during recruitment.

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9. LIMITATIONS

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The various Limitations are:--

 Some respondents are unwilling to talk: -- Some respondents either do not have
time or willing or does not respond as they are quite annoyed with the phone call.

 HNI Data is very confidential:--HNI data is very confidential to any company so


brokers were very much rigid in providing any data related to their customers.

 Lack of awareness of Stock market: -- Since the area was not known before it
takes lot of time in convincing people to start investing in shares primarily in
IPO’s.

 Inaccurate Leads :-- Sometimes leads are provided which had error in it which
varies from only 5 digit phone number to wrong phone number

 Misleading concepts: -- Some people think that Shares are too risky and just
another name of gamble but they don’t know it’s not at all that risky for long
investors.

 Greenbucks was concerned with Demat accounts: - Greenbucks was concerned


with opening of Demat accounts due to which it was hard to get time for surveying
clients of other competitors.

 Hesitation of clients: - Clients of various brokers were hesitating in giving


information regarding their brokers & Due to their personal bias.

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9.1. QUESTIONNAIRE

1. Do you have any interest in share market?

i Yes [ ] (ii) No [ ]

2. Are you an active trader?

(i) Yes [ ] (ii) No [ ]

3. if, no what is the reason?

(i) Lack of time [ ] (ii) High risk perceived [ ]

(iii) Lack of good research [ ] (iv) Any other (please specify) [ ]

4. since how you are active in stock exchange?

(i) Less than one years. [ ] (ii) 1-3 years [ ]

(iii) 3-5 years [ ] (iv) More than 5 years [ ]

5. How frequently do you trade?

(i) Daily [ ] (ii) At a regular interval [ ]

(iii) occasionally [ ]

6. What is your mode of trading?

(i) Online [ ] (ii) Offline [ ]

7. What is your annual income?

(i) Less than 1 lakh [ ] (ii) 1-3 lakh [ ]

(iii) 3-5 lakh [ ] (iv) More than 5 lakh [ ]

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8. With which broker are you trading currently?

(I) ICICI direct.com [ ] (ii) India bulls [ ]

(iii) Greenbucks [ ] (iv) Kotak securities [ ]

(v) 5 paisa.com [ ] (vi) Any other (please specify)…………………..

9. Your investment decision is generally based on:


(i) Your broker’s advise [ ] (ii) Personal analysis [ ]

(iii) Any other source of information. [ ]

10. Order these factors as they influence your decision for selecting a broker:
S. NO. FACTORS ORDER OF PREFERENCE

01 Brand name

02 Brokerage structure

03 Account opening charges

04 Exposure provided

05 Research reports/stock ideas

06 Service provided by the broker

Are you aware of brand GREENBUCKS?


11.
(i) yes [ ] (ii) No. [ ]

Are you aware of the various services offered by Greenbucks?


12.
(i) yes [ ] (ii) No. [ ]

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Any suggestion, which would you like to give for further improvement
13.
in Greenbucks’s services?

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

………………………………………………………………………………………

……………………………….....

Name:

Age:

Occupation: Reference:

Address: ---------------------- ___________________

--------------------------- ___________________

---------------------------- ___________________

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9.2. BIBLIOGRPHY

Literature

 Securities Market (Basic) Module :--NCFM


 Economic Times.
 Business Standard
 Kit Provided by the Greenbucks.

Books
 Research Methodology(C.R. Kothari)
 Securities Market of India(NSE of India)

Websites:
1. www.Greenbucks.com

2. www.icicidirect.com

3. www.indiabulls.com

4. www.kotakstreet.com

5. www.5paise.com

6. www.microsoft.com

7. www.nseindia.com

8. www.bseindia.com

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