PREFACE

“With every experience you alone are painting your own canvas, thought by thought,
choice by choice.” This saying has played the guiding role in preparing this practical
financial project report of Sharekhan Ltd. This report has made it possible for us to
practically have a look at the financial conditions of the company. The Summer
Internship Project allows the student to expand their practical knowledge and helps us
to study and read business environment.

This practical training in Bachelor of Business Administration curriculum plays a vital

role in understanding and knowing the difficulty and challenges in the business world.
Only theoretical knowledge does not impart complete education, practical experience
must be there in order to add some meaning to education.

I have undergone my summer training at Sharekhan Ltd. It is one of the leading broking
houses of the country. I feel great pleasure to present this report work after my training
at Sharekhan Ltd. that produced to be golden opportunity for me by enriching my
knowledge by comparing my theoretical knowledge with the managerial skill and
application.
 INDEX

Sr. No. Particular Page No.

1. Executive Summary
2. Industry Overview:
1.2 Introduction to Stock Broking Industry
3. Company Overview:
2.1Sharekhan at Glance
2.2 Functional Areas of the Sharekhan
4. Research Methodology
3.1Research Objective
3.2 Research Methodology
3.3 Review of Literature
3.4 Research Analysis & Interpretation
3.5Limittions
5. Research Finding and Conclusion
3.1 Findings
3.2 Recommendations
3.3 Conclusion
6.s Bibliography and Annexure
4.2 Bibliography
4.3 Annexure
 Questionnaire
 EXECUTIVE SUMMARY

This is a project report on “Consumer behavior towards online trading.” which is made
on the basis of summer internship done at Sharekhan stock broking.

The objective of the proposed study is to identify the specific factors that affect
consumer attitudes towards online share trading. The methodological approach to this
study is descriptive, because we attempt to identify and explain variables that exist in a
given situation and to describe the relationship that exists between these variables in
order to provide a picture of a particular phenomenon, but not to ferret out cause-effect
relationship.

The primary data was collected through questionnaire filling. The secondary data was
collected through the internet. India has a large chunk of population which is at lower
income level and at middle income level. There is a need of creating awareness among
them for share trading and the tremendous potential it has. They are doing trading on
the old methods which were used in the past. Now with the advent of technology there
are many options available to the traders which they can use without any fear.

The trend is moving towards the online share trading but still it has a lot to cover. The
traders are more of young age and middle age and don’t fear from risk taking but the
lack of knowledge doesn’t allow them to do so. So, the stock broking companies should
take measures to empower the normal investors so that they can trade with the latest
technologies available.
 Target the youth as they are most potential customers of the stock market as
their interest towards stock trading is increasing. The stock broking companies should
educate the investors by giving them timely help in the form of reports and tips. The
companies should try to work in more transparent way. People want good services and
are ready for paying extra penny. People prefer Ease of transactions and security.

As per my summer internship project topic, “Consumer Behavior towards Online

Trading in Stock Market” I choose 20 people as the sample size as the part of research
and most of the people who are traded in stock market, they are doing it offline. So,
there is the more scope of online trading customer and they can also try to convert the
offline customer into the online trading customer. And they can also catch the attention
of those who are investing in Mutual Fund. They have to attract the more businessmen
and the employees who are working in private or public sector.
 INTRODUCTION

Securities market has essentially divided into three categories of participants,

namely the issuer of securities, investors in securities and the intermediaries.

The security market has two interdependent and inseparable segments the Primary
Market and the Secondary Market.

Primary Market:

The primary market is the part of the capital market that deals with issuing of new
securities. Companies, government or public sector institutions can obtain funds
through the sale of a new stock or bond issues through primary market.

Secondary Market:

A market where investors purchase securities or assets from other investors, rather
than from issuing companies themselves. The national exchange – such as the New
York Stock Exchange and the NASDAQ are secondary markets.
 HISTORY

 1850 – Shares of banks and securities of east India Company traded in Mumbai
under a sprawling banyan tree in front of town hall, which is now in the honiman
circle park.

 1875 – Brokers organized an association known as the native share brokers

association, and the country’s first stock exchange the Bombay stock exchange
(BSE), set up in Mumbai with 318 members. The membership fee gradually
increased from Rs 1 in 1887 to Rs 1000 in 1896, and Rs 48000 in 1920.

 1956 – Securities contract regulation Act passed.

 1957 – The BSE and eight other stock exchange registered under the securities
trading contract act.

 1982 – The BSE classifies scripts into group A for carry forward, and group B
for cash transaction.

 1986 – The BSE 30 – share sensitivity index (a.k.a. the Sensex) compiled;
updated every two minutes.

 1987 – Stock holding corporation of India set up.

 1992 – Ordinance promulgated for granting statutory powers to the SEBI. The
over- the counter exchange of India begins operations. The national stock
exchange incorporated.

 1994 – The NSE’s debt segment begins operation on June 30; and the capital
market segment begins online script less trading on November 3.

 1995 – the BSE computerizes its trading operation, signaling the end of 120 years
of floor trading with open outcry system of share trading and the beginning of
screen – based trading on the BSE.

 1996 – NSE 50 index launched April 22. NSDL set up a s t h e first depositary
in India, and the NSE commences trading in dematerialized securities on
December 26.

 2000 – The SEBI approves the reports on net trading brought out by the SEBI
committee on net-based trading and services. Pursuant to the circular, stock
exchanges are required to give permission to members to start net based trading
after ensuring fulfillment of the minimum conditions.
 BSE (BOMBAY STOCK EXCHANGE)

 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 demutualized 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 redressal 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 program and making available to them necessary informative inputs.
 NSE (NATIONAL STOCK EXCHANGE)

 NSE was incorporated in 1992 and was given recognition as a stock exchange in
April 1993. It started operations in June 1994, with trading on the Wholesale Debt
Market Segment. Subsequently it launched the Capital Market Segment in
November 1994 as a trading platform for equities and the Futures and Options
Segment in June 2000 for various derivative instruments.

 NSE has been able to take the stock market to the doorsteps of the investors.
The technology has been harnessed to deliver the services to the investors across
the country at the cheapest possible cost.

 It provides a nation-wide, screen-based, automated trading system, with a high

degree of transparency and equal access to investors irrespective of geographical
location. The high level of information dissemination through on-line system has
helped in integrating retail investors on a nation-wide basis.

 The standards set by the exchange in terms of market practices, Products,

technology and service standards have become industry benchmarks and are
being replicated by other market participants.
 BRIEF INTRODUCTION TO ONLINE STOCK MARKET
TRADING

Investors who are trading over the Internet or online need to know how they can protect
themselves against unexpected losses (especially in fast-moving markets) and what
additional steps to take in order to guard themselves against the typical problems of
online trading.

Online trading may be quick and easy but it still requires time and efforts. You can buy
or sell stocks from a great number of online brokers with just a click of your mouse.
However, do not forget that making wise investment decisions takes time.

Online trading may be seamless and quick but it is not always in stannous. A number of
technological problems can actually slow or prevent your orders from reaching your
online firm. Some of them include: a slow modem, computer, or Internet Service
Provider at the investor's end, heavy Internet traffic that is slowing, down overall usage,
inadequate hardware at the broker-dealers end, etc. No regulations require that a trade
should be executed within a certain time. If you are unable to access your account
online you should know what other options for placing a trade you have. Your online
trading firm may allow touch-tone telephone trades, ordering by calling your broker, or
placing your order. Have in mind that sometimes turning to one of these options may
increase your costs, and other times you may still experience delays when using them.

Sometimes investors place an order, mistakenly assume that it hasn’t been executed, and
place another order again. Thus, they end up either selling stocks
they do not own, or owning twice as much they wanted. If you are unsure whether your
original order was executed, don't rush in to placing it again. Talk to your firm and
clarify how to handle such situations. In other cases, investors don't make sure that the
transaction hasn't been executed when they cancel an order. You should know that
you may receive an electronic receipt for the cancellation but your trade may still not
have been canceled. Talk to your firm and ask them how you can check to see if a
cancellation has really worked. Limit your possible losses by setting limit orders on fast-
moving stocks.

By placing a regular market order, you don't have control over the price at which the
order will be filled. You hardly want to buy or sell stocks at a price that is higher or
lower than the one you have in mind so you better place a limit order. A buy limit order
will be executed only at a price that is not higher than you or preliminarily set limit price.
A sell limit order on the other hand will be executed at the limit price or higher. If you
have a complaint, act promptly.
 TRANSECTION CYCLE

Decision Placing
to trade Order

Transaction
Funds or Cycle Trade
Securities
Execution

Settlement
of trades Clearing
of Trades
 ADVANTAGES OF ONLINE STOCK TRADING

1. Time

Customers can trade online with a real time basis and buying and selling of shares
happens with a press of a button.

2. Flexibility

Customers can modify the placing orders according to the market movements.

3. Standardized Procedures

When the order is accepted by the exchange, it will give pay-in and pay-outdates
and customer can easily expect the cash or shares to be credited to his account.

4. One stop shop

Bank statements and transaction statements can be viewed at the click of a button.

5. Informed Researches

Service providers carry stock analysis like intraday and EOD (End of day) technical
charting which helps the customer to make right choices

6. Flexibility of timing

Customers can place orders before start of a trading session

 DISADVANTAGES OF ONLINE STOCK MARKET TRADING

1. Forgetting You Are Using Real Money

In recent decades, people have become very accustomed to doing both work and play
in front of a computer monitor. When you’re so immersed in an online task, it's
possible to become detached. This can cause users of online investing firms to forget
that they are using real money as they trade on the brokerage's website. Investors may
make mistakes because they make trading decisions too quickly and get caught up in the
ease of using the technology.

2. Lack of a Broker/Investor Relationship

When you invest with a traditional brokerage firm, there is a relationship with the broker,
who can become an investing mentor. The broker provides advice and guidance to the
investor. This is beneficial relationship to both parties, as the investor gets the broker's
financial expertise and the brokerage firm gets extra fees from clients if its portfolio
grows in size. With an online trading firm, all portfolios are self-directed, which means
users need to have at least a working knowledge of the financial markets to make
informed decisions. Many investors simply don’t have enough time to follow the
financial markets, especially on a daily basis. This can cause them to make inappropriate
investments due to a lack of complete information.

3. No Time to Learn Online Programs

Online brokerage firms claim their software is easy, but this isn't always the case. Often,
the software is complicated, with several different options and calculators, and no
instructions on how to actually use them. People who don't learn software quickly may
not master all the ins and outs of the program.
 COMPANY DETAILS

SSKI HISTORY

S. S. KANTILAL ISHWARLAL SECURITEIS PRIVATE LTD.

In 1922 Sharekhan, was founded as SSKI (Shantilal Shevantilal Kantilal Ishwarlal) and
later on it is renamed as Sharekhan Ltd. And it is one of India’s oldest brokerage
houses having over eighty years of broking experience.

 Founding member of the stock exchange, Mumbai and pioneer institutional

broker.
 SSKI is the only domestic player in a market crowded by 44 multinational
securities firms.

 venture into institutional broking and corporate finance 18 years ago

SSKI group also comprises institutional broking and corporate finance 18 years
ago. While the institutional broking division caters to the largest domestic and
foreign institutional investors, the corporate finance division focuses on niche
areas such as infrastructure, telecom and media. SSKI holds a sizeable portion
of the market in each of these segments.
 predecessor of investment research in the Indian market,

SSKI provide the best research coverage amongst broking houses in India. The
company’s research team was set up in des. 1992 and is rated as one of the best
in the country. Voted four times as the top domestic brokerage house by Asia
money survey, SSKI is consistently ranked amongst the top domestic brokerage
houses in India.

 Retail broking started in 1985

 Research group was set up in December 1992
 It acts as a pioneer of investment research in the Indian market aimed at
generating quick investment ideas.
 Its research team is rated as one of the best in the industry……across retail &
institutional.
 Group interest in investment banking, institutional broking and retail
broking.
 It is an integrated equity solution provider.
 It commands good market share of the institutional business.
 It has over 60 institutional clients spread over India, Far East, UK and US.
 It occupies 65% of business share from foreign institutional investors.
 Its daily turnover average to US$ 2 million.
 The private equity deals sum over US$ 1 billion.
 SSKI named its online division as “Sharekhan” on February 8, 2000
coinciding with the launch of its website.
 VISION

 To empower the investor with quality advice and superior service to help him
take better investment decisions. We believe that our growth depends on
client satisfaction.

MISSION STATEMENT

To educate and empower the

individual investor to make

better investment decisions

through

QUALITY ADVICE

INNOVATIVE PRODUCTS

and

SUPERIOR SERVICE
 ABOUT SHAREKHAN

1. Earlier Name: Shantilal Shevantilal Kantilal Ishwarlal

Securities Pvt. Ltd.
2. New Name: Sharekhan Ltd.
3. Year of Establishment: 8 February, 2000
4. Headquarters: Mumbai, India
5. Promoter: Shripal Morakhiya
6. Chief Executive Officer Jaideep Arora
7. Industry Financial Services
8. Parent BNP Paribas
9. Web-site: www.sharekhan.com
 PRICING POLICY OF SHAREKHAN: -

Account Opening Fees & Annual maintenance charges (AMC)

 Trading Account Opening Charges (One Time): ₹0 (Free)

 Trading Annual maintenance charges (AMC): ₹0 (Free)
 Demat Account Opening Charges (One Time): Included in trading account
opening charges
 Demat Account Annual Maintenance Charges (AMC): ₹400 (Free for 1st year
with trading account.)

Sharekhan Trading Brokerages Charges:

 Equity Cash Intra-Day Trades: 0.10% on the buy side.

 Equity Delivery Trades: 0.50% or 10 paise per share or ₹16 per scrip whichever
is higher.
 F&O Trades: 0.10% on the first leg and 0.10% if squared off on any other day.
 Options Trades: 2.50% or ₹250 per lot on the premium (whichever is higher).
 Currency Future: 0.10%.
 Currency Options: 2.50% or ₹30 per lot on premium (whichever is higher).
 Commodity: 0.10%.
 INDUSTRY ANALYSIS USING PORTER’S
(5 FORCES MODEL)

POTENTIAL
ENTRANT
 Investment
 Various Banks

SUPPLIERS BUYERS
 Web maintainers COMPETITORS  Small Investors
 ICICI Web Trade Ltd
 NSCL  Franchise/Business
 5paisa.com
 CSDL  Partners
 Kotak Securities Ltd
 NSE  HNI’s
 India Bulls
 BSE  MF Companies
 MotilalOswal
 MCX  HUF
Securities Ltd
 NCDEX  Institutional
Investors

SUBSTITUTES
 Mutual Funds
 Insurance
 Bank FD
 SWOT Analysis

1. Strength of Sharekhan
 Wide range of innovative financial products
 Intensive research on all industry sectors
 Strong I.T infrastructure
 Have one of the largest networks of branches across country
 Pan-India presence with over 1,500 outlets serving 950,000 customers
across 450 cities.

2. Weakness of Sharekhan
 Penetration limited to urban areas

3. Opportunities to Sharekhan
 Growing rural market
 Earning Urban Youth
 Educating people about the benefits of investments to increase target
audience.

4. Threats to Sharekhan
 Stringent Economics measures by Government and RBI
 Entry of foreign finance market in Indian Market
 WHAT DOES SHARE KHAN OFFER?

Share khan offers online trading account through which a customer can buy and sell
shares in an instant from any part of the global trough website. It does not take account
any type of physical restriction of going to the broker for carrying out a transaction or
any type of settlement of payment. It facilitates t h e customer a speedy and hassle-free
transaction. Share khan’s product consists of a 3-in-1 concept, which integrates;

1. Trading account
2. Demat account
3. Linking with the saving account.

Through its trading account, a Sharekhan customer can directly transfer his fund
from his savings bank account affiliated to share khan to his trading account without any
paper work. He can buy and sell shares from the website and also view the market prices
of the shares he trades on the terminal.

To open an account a customer requires filling up a form consisting of

agreements, a passport size photograph, a residential proof, a photo id proof and a
cheque drawn of respective amount in favor of S.S. kantilal ishwarlal securities
private Ltd. After opening an account with share khan, a customer will be given u s e r
id, membership password and trading password, which will enable him to access his
account and trade.
 MARKETING DEPARTMENT

The main aim of marketing activities at Sharekhan is that the customer should get
enough guidance to join the company and how he can get the best service than any
other stockbroker. There is an officer for handling the marketing activities followed by
two executives and it is not limited to them but the other people are also having some
responsibilities to increase the no. of clients and retain them by providing them the
services needed by them.

There are many services those are designed such that the specific target segments
of the customers are covered and the products are positioned in the minds of customers
as the best one in India. The services are as given below:

Sharekhan is India’s leading national network of stock-broking outlets. It is having

the largest retail distribution chain in India. Sharekhan is not only a share- broking firm,
but it avails of various services and other financial products to its clients.

1. Online Trading facility

2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading and
NEAT, i.e. National Exchange Automated Trading)
3. Free access to investment advice from Share khan’s Research team.
4. Derivatives trading, i.e. Futures and Options (through NEAT F&O)
5. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc.
 MARKETING MIX

Sharekhan is a commercial site of Indian origin. It deals in financial services and is

associated with trading industry. Sharekhan was founded in the year 2000, February by
its founder Shripal Morakhia. It was a subsidiary of its parent company SSKI Group but
in the year 2016, 23rd November its ownership changed hands and company became a
subsidiary of its owner company BNP Paribas SA. Sharekhan is a user-friendly facility
for online trading that has been able to create a distinctive name for itself. It faces stiff
competition from several companies and some of them are as follows-

 Angel Broking
 India Bulls
 Reliance Capital
 IIFL
 Religare
 ICICI Web Trade Ltd
 PRODUCTS OF SHAREKHAN

Sharekhan is an online portal available in English and written in JavaScript. It is one of

India’s leading broking houses operating via online retail industry. Sharekhan offers a
complete package of stock trading and investment solutions and secures high returns on
securities and investments.

It is the retail arm of its parent company and offers trade execution facilities and depository
services for commodities, derivatives and equities backed by its sound advice and
experience. Sharekhan offers offline trading options, online NSE and BSE executions of
both intra-day and delivery-based transactions and online trading options.

Its additional investment products include Insurance, RBI Bonds and Mutual Funds.
Sharekhan has started online IPO to offer application form of several companies’ issues by
filling an online form. It has an analysis and research team that tracks performance trends
and offers valuable advice. Sharekhan has implemented 3-in-1 concept and integrated
Demat account, trading account and linked savings account. A customer can transfer funds
directly from savings to trading account without any additional paperwork. Buying and
selling of shares is an easy option via website and client can also view market prices of
shares he wishes to trade on the terminal.

PLACE
Sharekhan has its presence in India with its headquarters base at Mumbai in
Maharashtra. It has one of the strongest IT infrastructures that include a large network
of branches spread across several parts of India. Its Pan-India presence consists of
1,500 outlets in nearly 450 cities that serve estimated, 950,000 customers. Sharekhan
has a capable, trained and experienced workforce that enables the smooth running of its
organization. It has extended its presence to international markets in Oman and UAE
also
 PRICE

Finance is an integral part of any business that has a direct impact on all its operations.
Sharekhan has an accounts department for calculating pay-out and pay-in of funds and is
dependent on profit/loss of client portfolio. The company has targeted investors from
both rural and urban sector as its potential customers. It offers maximum value to its
clients so as to keep them happy.

Sharekhan faces stiff competition from several rival companies and has adopted
a competitive pricing policy to gain a competitive advantage over its competitors. It has
levied reasonable rates so as to increase its client base because affordable rates will gain
larger volumes and will ultimately lead to greater gains. Brokerage on the delivery-based
transaction is levied at .50% on both sides for selling and purchasing and .10% single
side on intra-day transactions. Brokerage charges for commodities are .10% of its trade
value and if carried forward then extra .02% on the total trade.

PROMOTION

Sharekhan has adopted several promotional activities to increase its brand awareness. It
is one of the most visible and recognised brands in the Indian market since its inception.
The company emphasises on personal contact so that it can serve better by maintaining
direct contact. Sharekhan has adopted several campaigns for advertising and it is mainly
done through social media platforms like e-mails and web dealings. It has also taken help
of print media via newspapers to gain further penetration in the market. In order to
increase its brand visibility, it organises presentations and seminars that give it maximum
exposure. Sharekhan has an apt tagline your guide to the financial jungle.
 FINANCE DEPARTMENT

Like blood is the most important factor in our body, Finance is the blood of any
business. Finance is needed for all the activities like production or services as well as
their distribution. The finance department directly influences all the functions of the
other departments. Also, finance has to give equal importance to all departments.
Finance is that administrative area or set of administrative function in an organization
may have the means to carry out its objective as satisfactorily as possible. Sharekhan
has special accounts department for separate calculation of pay-in and pay-out of funds
according to the client’s Profit/Loss. Finance management is done at Sharekhan is done
by managing the stocks in the Demat accounts and funds in the margin & trading

FINANCE

Dp ACCOUNT
PP
P

Finance is the lifeblood of an organization to continue its activities and the finance
management at Sharekhan can be divided into two major parts viz. DP (Depository
Participation) and Accounts management, which are shown in the figure given above.
 DP is treated as a separate department at Sharekhan and is covered in the back-
office management in the organization structure. In simple words, DP means providing
the facility to the clients for managing the stock bought/sold by them. DP covers two
major terminologies viz. settlements and the auction which is a part of managing
Demat account. Settlements as defined by SEBI (Securities Exchange Board of
India) are T+2, currently and it means that the Demat account of the clients are prone
to be sufficient for selling a script with no debit at all, i.e., the account must have the
sold amount of stock to fulfill the settlement after 2 days from trade-day. The
settlements for Day-Traders is not needed because they buy/sell stocks in that
particular day, only the delivery trades are needed to be settled because if you sell
1000 shares of, say SAIL then your account must have the stock before you sell it or
it must be there in you Demat before the next day trading begins (market opens).
Generally, the timings are 9:00 A.M. and 3:30 P.M. as a deadline for the client and he
must provide the stock for giving a delivery to the buyer. The chart shows the total
transaction between two clients:

C DP (Sharekhan) E DP (anyone) C

The chart shows the process that the request for selling and buying passes through the
DPs of the respective clients and finally the exchanges like SKSE (Saurashtra Kutch
Stock Exchange) becomes the controlling intermediary for the delivery of stocks and
this process is done in two days. Nowadays, as banks are becoming fast for E-Fund
Transfer (EFT) and Phone-banking is getting more popularity, SEBI is thinking to make
the financial market of India to have a maximum speed of
transactions just like the other nations in the world and proposing for T+1
settlement scheme but the system is not enough competent for that thing.

The client, if not capable of providing the delivery of say, 1000 shares of SAIL
then the Auctions are initiated by the exchanges and the client has to pay for the price
prevailing in the market with 4-5% penalty. The penalty can go on maximum to 20%
more than the market price of the sold stock. Generally, it is known as a buying auction
and a same kind of auction is for selling the stock for which the buyer was proved unable
to pay the price is carried out by exchange, known as the selling auction. And a debit
or credit note is provided in the respective case of auction to the clients, i.e., for buying
auction debit note is given on the T+4 basis and in case of selling auction the credit note
is given on T+5 basis. There are two types of auctions called as Internal auctions &
Market auctions, the internal auctions are defines as the auctions carried out between
the other shops of Sharekhan and market auctions are those as explained earlier, the
auction carried out in the market.

This is all about settlements but now switch to funds management or accounts
management at Sharekhan. The accounts are different that is the margin a/c for deposits
of the client and trading a/c for which Profit/Loss are settled. The collection of funds
from the clients who had a debit balance or made a loss are made on the next day of
trading and the payments to the profiting traders are made after two days of trading
because the cheques are received from H/O and then pay- out is done and Pay-in is as
explained that amounts to be taken from the clients. In this way, accounts are managed
but in case if the client is unable to pay, the deposit from the margin a/c is cut down
to the payments and in case if a client is having a credit balance in F&O trading though
he had a debit balance in cash-NSE & BSE trading, a JV request is sent to H/O for
totaling the three balances. The main aim for accounts management is that the clients
must have a credit or no debit on the next day.
The DP services provided by Sharekhan are falling under the regulation of NSDL
(National Securities Depository Limited) and CDSL (Central Depository
Services Limited), organizations governed by SEBI to regulate the depository services
in the interest of the investors. So, the financial market in India is governed by
Ministry of finance under which two major bodies viz. SEBI & RBI are covered and
under RBI the banks and other financial institutions are covered while SEBI covers the
exchanges, NSDL & CDSL and the whole DP service providers with the brokers to the
investors.

In this way we have gained a meaningful knowledge about India’s financial market and
its structure from this training at Sharekhan. In this way, the finance function is carried
out at Sharekhan by following the guidelines given by SEBI. And the company is a
private limited one with its own policies for disclosing its financial statements, so we are
not able to give any figures for showing the financial position of the company.
SHAREKHAN- ONE OF THE FASTEST GROWING FINANCIAL
SERVICES COMPANY IN INDIA
1500 Share Shops 800
700

across 300+Cities 600

500
400
300
200
82
100

10 lakhs Customers & Growing

Online Business is 50%

> 3000employees

Most preferred broking website in India

 RESEARCH OBJECTIVE

The main objective of the study is to check consumer behavior towards

online trading in stock market among the people of Rajkot City. The objective of
any research is basically divided into two categories.
Primary Objectives

To study the “consumer behavior toward online trading in stock market”.

Secondary Objectives

 To study trading frequency through online trading

 To study investment decision making in online trading
 To study over all influence of online trading to the security market.
 RESEARCH METHODOLOGY

SOURCES OF DATA:

The task of data collection begins after a research problem has been defined and
research plan chalked out. While deciding about the method of data collection to be
used for the study, first of all the sources of data must be very clear.

There are basically two sources of data.

 Primary Data Source:

The primary data are those, which are collected afresh for the first time for the
problem solution, and thus happen to be original in character. It may be obtained from
individual, families and representative or from organization.

 Secondary Data Source:

The secondary data are those which have already been collected by someone else
and which have to decide which have already been passed through the statistical
process. Externally, these sources may include books or periodicals reports, data
services and computer data banks.

In the context of the project study, the source of data used by me for this project
is primary type of sources. The primary data source is the respondents who have filled
the questionnaire.
SAMPLING PLAN:

 Sampling Unit:

The sampling Unit is the entity to which we have to follow during the whole research
study. In the context of the project study, the sampling unit primarily consists of
Individuals who may be Businessmen, Professional, Government employee, Employees
working in the private firm and other persons.

 Sampling Size:

It plays an important role in the research. Samples are representative of the whole
population. This refers to the no. of items to be selected from the universe to constitute
a sample.

In the context of the project study, 75 respondents are chosen keeping in view the
above constrains. Attempts have been made to see that samples are chosen from
different strata.

1. Sampling Methods:

There are various methods of sampling in the context of my project study I have
selected Non-probability Sampling Method. And under that, I have taken Convenience
Sampling. Under this I prepared a simple questionnaire to collect the information.
 2. Data Collection Method:
Data collection is done basically in three ways: Observation Method, Survey
Method and Questionnaire. And in the context of my project study, I have selected
questionnaire method for collecting the data.

3. Data Analysis & Interpretation:

Data analysis is based on the data collected by the questionnaire. From the collected
data findings are extracted. The data is tabulated and frequency distribution chart is
prepared.
i. Data Analysis by Charts:
Charts make easy to understand. Therefore, I have use pie chart and histogram to
present the data.
 REVIEW OF LITERATURE

1. Intention to Adopt Online Trading: Identifying the Future Online

Traders
Yinghao Mickey Li, Jinkook Lee and Brenda J. Cude

This paper is based on the first author's thesis, which won the 2002 American Council
on Consumer Interests thesis award. The dataset was provided to the second author by
Larry Cohen, the director of Consumer Financial Decisions of SRI Consulting
Corporation.
This paper proposes that investors' intention to adopt online trading in the future is
influenced by investment, psychology, technology and demographic factors. Data from
the 2000-01 Macro Monitor database are employed in this study. Macro Monitor is a
biennial survey conducted by the Consumer Finance Decision section of SRI
Consulting Corporation. The sampling method of the survey is two -stage random
sampling. The first step is a stratified disproportionate random sampling. And the
second step is a simple random sampling. Sample size was 3759 household in 2000
in U.S.
Among the investors, there were 389 current online investors and 1,066 current offline
investors. On average, online investors were younger than offline investors and had more
education than offline investors. Online investors traded 29.2 times a year, while offline
investors traded only 7.1 times a year. In terms of trading volume, online investors
also traded a larger sum of money than offline investors.
 2. Impact of online trading on customer satisfaction in Tehran stock
exchange

DelbarJafar Pour, Lulea University of technology - master thesis,

continuation courses - marketing and e-commerce.

The aim of the study is to indicate how Indian traders rank quality factors and if online
trading system could enhance their satisfaction level or not?

For research distributive and explorative research designs are used and for data
collection survey method is used. There were 300 invitees were invited for the purpose
of survey.

Result shows that there is a meaningful difference between traders’ satisfaction in

conventional stock exchange. And existence of online trading system in stock exchange
can raise the degree of traders’ satisfaction.
 RESEARCH ANALYSIS AND INTERPRETATION

1. Different age group of respondents:

AGE %
Below 30 54
31 – 45 32
46 – 60 11
Above 60 3

3% 0%

Below 30
32%
31 – 45
46 – 60
Above 60

From the above chart we can know that young persons are interested in investing in
stock market and also it shows their risk-taking willingness and accurate decision-
making ability. If look at adult group then they are also little bit taking interest in stock
market.
 2. Education:

EDUCATION %
Undergraduate 23
Graduate 48
Post graduate 29

48%

29%
23%

Above chart shows that more graduate people take initiative towards stock market
working than under graduates and post graduates It can also be derived from the chat
4 that people who are younger and graduates would like to work in stock market.
 3. Occupation:

OCCUPATION %
Professional 20
Businessman 40
Working in Pvt. Firm 29
Government Employee 11

Professional

Working in Pvt. Firm

As businessmen are more accurate decision makers and also risk takers, therefore
they take more interest in stock market working. Compare to professional, government
employee and working in private firms. While employees working in private Firms are
also growing as stock market investors.
 4. Where do you invest your savings?

Use of Saving Option %

Bank FD 10
Mutual Fund 28
Shares / Equity 42
Insurance 15
Other 5

Mutual Fund Shares Equity

 If we evaluate all the above charts then we can make note that younger, graduate and
businessmen are stock market investors, therefore it directly implies more use of their
savings in stock market as shown in chart. While about 13-18% of saving goes to bank
FD, mutual fund, insurance. And due to increasing knowledge, risk taking willingness
and changing market trend, very less people goes to postal schemes investment.

5. Do you participate in equity market? If yes, what best describes you as

Participation as % No of
participant
Investor 65 45
Trader 35 25

% of participants

Investor

Trader

As investment is safer than trading, therefore more portion of the market prefers
investment to trading, in spite of existence of more risk takers. Portion of trading is not
that much of less than investment, but due to involvement of more loss of money
enables less people to go for it.
 6. In your opinion, which medium is the more reliable for trading in stock market?

Medium for Trading %

Through Broker 36
Online Direct Participant 64

Medium for Trading

36%

Online Direct Participant

64%

Increased use of internet technology has led people to go for more online direct
participant. Online direct participant also gives some benefits of time and cost saving,
less paper work and fast decision making.
 7. Out of following online traded products, in which you trade regularly?

Online Traded Products %

F&O 34
Cash 38
Commodity 21
Currency 7

F&O
Cash

Currenncy

As people more prefer investment in cash therefore is more online traded

product F n O and commodity are traded nearby 21-38%. While currency is less
preferable by respondents due to high risk involvement.
 8. Why do you prefer online trading?

Preference %
Online Fund Transfer 26
Comfortable Trading 27
No Geographical Boundary 23
Paperless Transaction 26

preferance of online trading

21%
35%

No Geographical
Boundary
26%

From the above chart we can conclude that 35% respondent are doing online
trading due to online fund transfer while 26% are because of the comfortable
trading and 18-21% are doing because of the no geographical boundary and
paperless transaction.
 9. Which online trading platform you prefer the most?

Trading Platform %
Trade Tiger 64
ODIN 8
NOW 9
Trade Racer/ ICICI Direct 19

64

19
8 9

Direct

Most of the respondent are prefer the Trade Tiger for the trading than other
because of the different features and options are available in trade tiger and the
technical charts are also there.
 10. Which one will influence your online trading decision making?

Influencer %
Independently 8
Broker/ Agent's Advice 11
News Channels 13
Newspapers 15
Advice of Friends/ Colleagues 13
Internet 14
Well-Known Stock Broking 15
House
Business Magazine 11

Independently

Broker/ Agent's Advice

House
Business Magazine
 From the above chart we can conclude that more of the respondents are influence
through the newspaper or by the well know stock broking house decision. 14% are
from the internet and 11-13% are by the Brokers/ agent’s advice, business magazine,
news channels and friend’s advice. And only 8% are take the decision by their own.

11. What is the order of importance for you as online market participant?

%
Fast Executive System 42
Much Cheaper 35
User Friendly 23
(Table – 13)

Participant

User Friendly

(Chart – 14)

From the above respondent we can say that the 42% are using the online trading
platform for the fast-executive system and 35% are because it is much cheaper
than the other ways and 23% are using it due to the user friendly.
 12. As an online market participant what is your participant’s status?

Type of Investor %
Long Term Investor 39
Short Term Investor 33
Intraday Trader 28

Long Term

Intraday

Above chart shows that the 39% respondents are want to be a long-term
investor which will lead them towards the wealth maximization an 33% want to be a
short-term investor and want to earn money in short span of time while the 28% are
the intraday traders.
 LIMITATIONS

 This exploratory research is done in the Delhi only and therefore findings and
suggestion given on the basis of this research and cannot be considered for the
entire security market of India.
 Due to limitation of time and cost constrains, a sample size of only 75
respondents was chosen.
 Data analysis and interpretation done may not be that strong due to small sample
and random sampling method.
 And also, the views of respondents of towards online trading may not reflect the
overall scenario.
 Respondents taken for the study were most of from the Sharekhan, therefore
true picture of the stock broking companies can also not be seen from the study.
 FINDINGS

From the research objective following can be interpreted;

 40 % of businessmen are risk takers and they prefer trading and out of that 15%
were doing intraday trading.
 Out of 48% graduate 15% of employees working in private firm and 20% post
graduate working as government employee.
 15% of Private firm Employees prefer Bank FD and 40% of Private firm
Employees prefer mutual fund investment compare to others
 There were 33% of the businessmen investing in shares out of all the investors.
 35% of businessmen and 34% of Private firm Employees were online traders
 Out of all the online traded products 25% of F &O preferred by Private firm
Employees, 29% of equity preferred by businessmen, 15% of commodity
preferred by Private firm Employees and 5% of currency preferred by Private
firm Employees
 Out of all the long-term investors, 50% were Private firm Employees,
 Out of all the short term investors20% were Private firm Employees and
 Out of all the intraday traders 40% were businessmen

Thus, we say that online trading has gained more attention of today’s generation and
more no. of businessmen and Private firm Employees are taking initiative towards stock
market working.
It can be said that consumer behave rationally, are risk takers and also, they prefer
keeping pace with changing technology i.e.; online trading.
 RECOMANDATION

As the analysis makes it clear that there is potential market for online trading in the New
Delhi region, but this market needs to be explored because Stock broking companies
are not able to convert mutual fund investors into stock market investors. Some of the
few recommendations based on the above research are:

 From the tests it can be recommended to the Sharekhan that it should attract
more businessmen and Private firm Employees, because they are the persons
possessing IT infrastructure.
 Many people don’t do this business because of the lack of the proper market
knowledge. And hence they should be made aware of the trends of the market.
 People prefer Online trading as a secondary business, because liquidity is high
in this business. Therefore, some steps should be taken to explain this scenario
to all the knowledgeable class by proper marketing.
 Trusted brokers get easily online traders because of timeliness and right tips on
trading; therefore, Sharekhan should make its brand name strong enough to
convince the customer for online trading through more advertisement.
 Online trading requires fast and effective decision making; therefore, company
should hold regularly seminars, coaching class and make its customer aware of
true extent of risk and return
 Try to remove myth of money losing from stock trading from the minds of
people by providing some help in decision making and schemes.
 CONCLUSION

The objective of this study is to develop a theoretical model to explain and

predict the stock traders' behavioral intentions to use online trading by using the
concepts of perceived benefit, perceived risk and trust. This study reveals that perceived
risk is a more important influential factor than perceived benefit in online trading decision
making.
However, building a risk-free online stock trading environment is much more
difficult than providing benefits to customers. Online trading companies need to search
for risk-reducing strategies that might assist in inspiring high confidence in customers.
This study suggests that online trading companies should consider focusing more on
the prevention of intrusion, fraud and identity theft.
The current generation of investors is trading very actively by historical
standards. Investors are flush with cash, partly because of a robust economy, and partly
because they are borrowing aggressively. Very active investors are often making
decisions in a situation of high uncertainty. On-line investors have concentrated their
trading in e-commerce and other high-tech firms. Many e- commerce firms have novel,
untested business plans. Many have little or no earnings.
Online brokers should provide customers with digital receipts or a guarantee for
every transaction in order to increase customers' confidence with regard to online
trading. Customers may be willing to trust in online trading if they’re confident that the
service providers stand behind their service.
 BIBLIOGRAPHY
 Sharekhan Value Guide - Nov 2019

 https://www.marketing91.com/marketing-mix-sharekhan/
 APPENDICES

1. List of Tables:

Sr. No. Particular Page No.

Table -1 Shareholder & Shareholding Pattern 22
Table -2 Strength of Sharekhan 24
Table -3 Age 53
Table -4 Education 54
Table -5 Occupation 55
Table -6 Saving Option 56
Table -7 Participation as 57
Table -8 Medium of Trading 58
Table -9 Online Traded Products 59
Table -10 Preference 60
Table -11 Trading Platform 61
Table -12 Influencer 62
Table -13 Trading Platform 63
Table -14 Type of Investor 64
2. List of Charts:

Sr. No. Particular Page No.

Chart -1 SSKI Group – Corporate Structure 22
Chart -2 Industry Analysis using Porter’s 5 Force 23
Model
Chart -3 Products of Sharekhan 35
Chart -4 Age 53
Chart -5 Education 54
Chart -6 Occupation 55
Chart -7 Saving Option 56
Chart -8 Participation as 57
Chart -9 Medium of Trading 58
Chart -10 Online Traded Products 59
Chart -11 Preference 60
Chart -12 Trading Platform 61
Chart -13 Influencer 62
Chart -14 Preference in Online Market Participant 63
Chart -15 Type of Investor 64
 Questionnaire

1. Name: ………………………………………………………………………

2. Age:
a. Below 30 c. 46-60
b. 31-45 d. Above 60

3. Education:
a. Undergraduate
b. Graduate
c. Post graduate

4. Occupation:
a. Professional c. Working in Private Firm
b. Businessman d. Government Employee

5. Where do you invest your savings?

a. Bank FD
b. Mutual Fund
c. Shares / Equity
d. Insurance
e. Others
6. Do you participate in equity market? If yes, what best describes you as
a. Investor b. Trader

7. In your opinion, which medium is the more reliable for trading in stock
market? (Give rank 1 for most reliable)
a. Through Brokers
b. Online Direct Participation

8. Out of following online traded products, in which you trade regularly?

a. F & O c. Commodity
b. Cash d. Currency

9. Why do you prefer online trading?(Give your rank 1 to the most imp and 4
for the lest imp)
a. Online Fund Transfer c. No Geographical Boundary
b. Comfortable Trading d. Paperless Transaction

10. Which online trading platform you prefer the most?

a. TRADE TIGER
b. ODIN
c. NOW
d. TRADE RACER
e. ICICI Direct
11. Which one will influence your online trading decision making? (Give Rank 1
to the most imp and 8 for the lest imp)
a. Independently
b. Broker/ Agent’s Advice
c. News Channels
d. Newspapers
e. Advice of Friends / Colleagues
f. Internet
g. Well – Known Stock Broking House
h. Business Magazine

12. What is the order of importance for you as online market participants?
Fast executive system
Much cheaper
User friendly

13. As an online market participant what is your participant status?

Long term investor

Short term investor
Intraday trader

14. Name any online stock broking company that you like to recommend?