Growth of Indian Online Trading Industry

_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
G H A Z I A
B A D
INSTITUTE OF TECHNOLOGY AND SCIENCE,

MOHAN NAGAR, GHAZIABAD
SUMMER INTERNSHIP PROJECT REPORT

ON TITLE
“GROWTH OF INDIAN ONLINE

TRADING INDUSTRY”
BY
ANKUL MAHESHWARI
Enrollment No : PG2K8 010
E mail id Maheshwari_ankul@yahoo.com
MOBILE – 09891786609
IL&FS INVESTSMART SECURITIES LIMITED

(A group company of HSBC)
I INDIA’S FINANCIAL MULTIPLEX I
1|Page
A REPORT
ON
“GROWTH OF INDIAN ONLINE TRADING INDUSTRY”

_____________________________________________________________
A report submitted in partial fulfillment of the requirements of PGDM program of
INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD
SUBMITTED TO:
RAHUL KUMAR AGARWAL

AREA SALES MANAGER
IL&FS INVESTSMART SECURITIES LIMITED
MOBILE - 9871204928
E MAIL rahulagarwal8285@gmail.com
&
DR. KAVITA SRIVASTAVA

ASST. PROFESSOR
ITS GHAZIABAD
MOBILE -+919871286444
E MAIL: kavitasrivastava7@gmail.com
ACKNOWLEDGEMENT
INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 2|Page

The beatitude, bliss and euphoria that accompany the successful completion of any task
would not be complete without the expression of appreciation of simple virtues to the people
who made it possible.
The final project report is submitted to institute of technology and science, Ghaziabad for
partial fulfillment of diploma, post graduate diploma in management (PGDM).
This project is an attempt to study “future and growth of online trading in India
At IL&FS INVESTSMART SECURITIES LTD.(HSBC Group).
I would like to thanks to the Management of IL&FS INVESTSMART SECURITIES
LTD. (HSBC Group) for giving me the opportunity to do my two-month project training in
their esteemed organization. I am highly obliged to Mr. RAHUL KUMAR AGARWAL
(AREA SALES MANAGER) for granting me to undertake my training at RDC RAJ NAGAR
branch.
I express my thanks to all Sales Managers and other relationship managers under whose
guidance and direction, I gave a good shape to my training. Their constant review and
excellent suggestions throughout the project are highly commendable. My heartfelt thanks
go to all the executives who helped me to gain knowledge about the actual working and the
processes involved in various departments. I would also like to sincerely thank my faculty
guide Dr. KAVITA SRIVASTAVA whose guidance has helped me to Understand and
complete my project in a timely and proper manner
ANKUL MAHESHWARI

DECLARATION
I do hereby declare that the project report is submitted as partial fulfillment of the
requirement of PGDM Program of INSTITUTE OF TECHNOLOGY AND SCIENCE,
GHAZIABAD
The Project has been done under the guidance of Mr. RAHUL KUMAR AGARAWAL,
KUMER SINGH NEGI and GAURAV KUMAR in Raj nagar branch, Ghaziabad and Dr.
KAVITA SRIVASTAVA Faculty guide, INSTITUTE OF TECHNOLOGY AND SCIENCE,
Ghaziabad
No part of this report has not been published or submitted elsewhere for the fulfillment of
any degree or diploma for any institute or university.
ANKUL MAHESHWARI
CONTENTS

PAGE NO.
EXECUTIVE SUMMARY……………………………………..………………..……6
PROJECT DETAIL………………………………………………………………..…..7
Project title……………………………………………………..............………7
Justification of the title…………………………………………...…………….7
Scope of the study……………………………………………………..……….7
Research objective…………………………………………………………..….8
Research methodology………………………………………………………... 8
Research design……………………………………………………..………….9.
Sampling methodology……………………………………………..………….10.
Limitations of the study…………………………………………………….... 10
COMPANY PROFILE……………………………………………………................. 11
LITERATURE REVIEW………………………………………………...……………34
ONLINE TRADING……………………………………………….………………….38
THE EMERGENCE OF ONLINE TRADING IN INDIA……………………………42
ICICIdirect ……………………………………………….……………………44
Reliance money ………………………………………….…………………….46
Share khan ……………………………………………….…………………….48
Kotak securities ………………………………………….…………………….51
Indiabulls …………………………………………………..…………………..54
Motilal Oswal ……………………………………………….…………………55
Religare ………………………………………………………………………..57
IndiaInfoline …………………………………………………………………..58
GROWTH OF ONLINE TRADING ………………………………………………....62
ANALYSIS PART ………………………………………………….…………………67
CONCLUSION ………………………………………………………….…………….79
RECOMMENDATIONS ……………….……………………………….………….....80
INDUSTRY RELEVANCE ……………………………………………………….…..81
LEARNING ……………………………………………………………………………82
BIBLIOGRAPHY ………………………………………………………..…………….83
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 IL&FS investsmart, Religare securities
Angel Broking, Reliance Money etc. 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 100 respondents it was seen that most of the
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 that it’s 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 accounts. 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.

2. PROJECT DETAIL
PROJECT TITLE:
To determine the “GROWTH OF INDIAN ONLINE TRADING INDUSTRY”
TITLE JUSTIFICATION:
The above title is self explanatory. This study mainly deals with growth and development of
online trading in India since its inception in the year 2000. Due to subprime mortgage crisis in year
2008 NASDAQ and S&P 500, two major stock exchange of the world entered into the bearish
market. it also affected the stock market all over the world including India. It is the challenge for the
growth and development of trading in India that’s why I choose that particular topic for the study.
SCOPE OF THE STUDY
Since the year 2000 a big boom has been witnessed in the Indian Stock Market when the
market showed the coming up of Online Trading System. Many online stock trading companies
came but initially due to lack of online trading some companies vanished and some survived. The
companies which survived are getting the handsome returns also attracting the foreign Investment
Companies. Nowadays this sector is facing cut-throat competition and also provides huge growth
prospects. The study then goes to evaluate and analyze the findings so as to present a clear picture
of the trends in the online trading sector.
RESEARCH OBJECTIVES

The objectives of my research project is –
1. To determine the growth and future of online trading industry in India

2. To understand the customer perception of online trading.
3. To see the type of technology used by stock exchanges and by the Indian customer in online
trading
4. To determine what type of products the customers deal while doing the online trading.
5. To understand the presence of major online traders in the Indian market and looking about
the features provided by them
6. To find out the important factor which do mostly affect to the customer
7. To develop a good strategy and process that improves the business of the organization
8. To be able to compare and analyze the various Financial Products.
9. Business development and revenue generation.
RESEARCH METHODOLOGY
The research methodology for the project completed in two phases:
First Phase is the collection of Secondary Data:
This involves the collection of Secondary data using internet and internal sources for
comparison of Online trading account of other Broking houses in the market like ICICI Direct,
MOTILAL Oswal, Religare and Reliance Money etc. This also involves talking to their executives
regarding various features provided to the customer along with their Brokerage structure.
Second Phase is Collection of Primary Data and Analysis:

After collecting the Secondary data the next phase will be collection of primary data using
Questionnaires. The questionnaire will be filled by around 100 people who will be mainly from
Delhi/NCR region. The sample will consist of people who are employed or work as free lancers
dealing in investment options to know their financial requirements. Based on these requirements
different investments will be informed to them for further perusal. The data collected will be then
entered into SPSS (software) and MS-excel for analysis of the data collected
RESEARCH DESIGN
Non probability
The non –probability respondents have been researched by selecting the persons who do the
stock trading. Those persons who do not trade in stocks have not been interviewed.
Exploratory and descriptive research

The research is primarily both exploratory and descriptive in nature. The sources of information
are both primary and secondary. The secondary data has been taken by referring to various
magazines, newspapers, internal sources and internet to get the figures required for the research
purposes. The objective of the exploratory research is to gain insights and ideas. The objective of
the descriptive research study is typically concerned with determining the frequency with which
something occurs. A well structured questionnaire was prepared for the primary research and
personal interviews were conducted to collect the responses of the target population.
SAMPLING METHODOLOGY

Sampling Technique
Initially, a rough draft was prepared a pilot study was done to check the accuracy of the
Questionnaire and certain changes were done to prepare the final questionnaire to make it more
judgmental.
Sampling Unit
The respondents who were asked to fill out the questionnaire in the National Capital Region
are the sampling units. These respondents comprise of the persons dealing in stock trading. The
people have been interviewed in the open market, in front of the companies, telephonic interviews
and through other sources also
Sample Size
The sample size was restricted to only 100 respondents.
Sampling Area
The area of the research was National Capital Region (NCR).
LIMITATION OF THE STUDY
The various limitations of the study are:
 People were not willing to fill the entire questionnaire due to the less time available to them
 Some respondents might be hesitant to divulge personal and financial information which can
affect the validity of all responses
 There is lack of awareness among people about investing in stock market. So the people
who are aware of such things were found in specific areas for survey purposes.
INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 10 | P a g e

 Most people are comfortable with traditional system in small towns and like to trade from
their respective brokers, hence not providing a true opinion of theirs.
 Some of the respondents who did not do online trading were able to respond to only few
questions.
 The survey was done in the NCR region and may not truly express the opinion of whole
country
3. COMPANY PROFILE
IL&FS Investsmart securities Limited (IISL) is one of India’s leading financial

services organizations providing individuals and corporates with customized financial
management solutions. IL&FS investsmart limited( IIL) through its subsidiaries in India and
Singapore provide a wide range of investment products to its retail and institutional client
including equity broking investment banking, insurance broking and distribution, mutual
fund distribution and related financial services.
IISL’s 2000 employees provide a complete range of investment solution to over
138000 customers in India through its 88 branches and 190 franchisee outlets from 133
cities. Company is having a market capitalization of approximately US $260 million.
Investsmart is listed on the national stock exchange (NSE) and the Bombay stock exchange
(BSE) and its global depository share are listed on the LUXEMBURG STOCK
EXCHANGE
At IISL, we believe in "Realizing your goals together". You will find in us - a trusted
investment partner to help you work towards achieving your financial goals. Our
Institutional expertise, combined with a thorough understanding of the financial markets

results in appropriate investment solutions for you.

Our strong team of all your investment needs through a office near you. All you need to
do is drop in at the nearest branch or call us and we’ll be happy to do the rest!
Investsmart recognized as “National Relationship Managers, Customer Service Executives,
Advisory Managers and Research Analysts, offers efficient execution backed by in-depth
research, knowledge and expertise to customers across the country. With a pan-India
presence of over 300 offices, IISL is geared to meet “Best Performing Financial Advisor-
Retail” for two tear in a row (2006-07 and 2007-08) by CNBC
TV18.
Vision
To become a long term preferred long term financial to a wide base of customer whilst
optimizing Stake holder value
Mission
To establish a base of 1 million satisfied customer by 2010 We will create this by being a
responsible trustworthy partner
Corporate action

An approach to business that reflects responsibility, transparency and ethical behavior
Respect for employee client and stake holder group
PROMOTER OF THE COMPANY
IL&FS Investsmart securities Limited (IISL) is one of India’s leading companies in the
Financial Services industry. It was promoted in 1997 by Infrastructure Leasing & Financial Services
(IL&FS), one of India's leading infrastructure development and finance companies.
The company is now held by HSBC, one of the world’s largest banking and financial services
organizations.
In India, The HSBC Group offers a range of financial services including corporate, commercial,
retail and private banking, insurance, asset management, investment banking, equities and capital
markets, institutional brokerage, custodial services. It also provides software development expertise
and global services facilities for the HSBC Group’s operations worldwide.
HSBC ACQUIRED 93.86 % OF IL&FS INVESTSMART IN INDIA
HSBC has completed the acquisition of 93.86 % of IL&FS investsmart limited (investsmart). A
leading retail brokerage in India for a total consideration of INR 1311 crore (approx. US $296.4
million)
Sandy flockhart Group managing director and CEO of HSBC Asia pacific said “investsmart
gives HSBC access to the world’s third-largest investor base with over 20 million retail investors. In
fact ,the business already has 1,43,000 customers and operates in 128 cities with
Indian GDP expected to grow by 7.8% in 2009. The opportunity here is obvious and underlines
why HSBC has a stated strategic aim of focusing on high-growth economics”

Under the transaction agreement, HSBC acquired 43.85% of Investsmart from
E*TRADE Mauritius Limited, an indirectly wholly-owned subsidiary of E*TRADE
Financial Corporation, and 29.36 per cent from Infrastructure Leasing and Financial
Services Limited (IL&FS). The decision to acquire a controlling stake in Investsmart
triggered an open offer to public shareholders, through which HSBC has accepted shares
equivalent to 20.65 per cent of Investsmart's capital.
E*TRADE Mauritius Limited, IL&FS and those that tendered shares through the open
offer received INR200 per share for their Investsmart shares. In addition, IL&FS was paid,
as part of a three-year non-compete agreement, INR82.0 crore (approximately US$17.9
million). In accordance with local regulations, HSBC paid interest of INR2.3 per share to the
public shareholders who tendered their shares. This amounted to INR3.31 crore
approximately US$0.72 million).
Naina Lal Kidwai, Group General Manager and Chief Executive Officer, HSBC in India,
added: "Investsmart is a great addition to our current operations, which already constitute
the second largest foreign banking network in India. We look forward to working with
Investsmart's management team and growing this business."
HSBC was advised on the acquisition by the investment banking division of HSBC
Global Banking and Markets. The HSBC Group in India is represented by several entities
including The Hongkong and Shanghai Banking Corporation Limited which offers a full
range of banking and financial services to its over 2.8 million customers in India through its
47 branches and 170 ATMs across 26 cities. HSBC is one of India's leading financial
services groups, with over 34,000 employees in its banking, investment banking and capital
markets, asset
management, insurance broking, two global IT development centers and six global
resourcing operations in the country. The Bank is the founding and a principal member of

the HSBC Group which, with over 9,500 offices in 85 countries and territories and assets of
US$2,547 billion at 30 June 2008, is one of the world's largest banking and financial
services organizations.
According to the old share holder pattern of INVESTSMART, majority of the share was
in the hand of E*TARDE Mauritius Limited, That was 43.85% and IL&FS was having the
share of 29.36%. The Participation of SAIF was 10.02% , FII’s 8.30% ,private corporate
bodies 2.89%, resident individuals 3.21% and other was 2.37%.

In September 2008, HSBC Securities & Capital Markets (HSCI) and HSBC Violet
Investments (Mauritius) had acquired 29.35% and 43.85% stakes held by IL&FS and E
Trade in IL&FS Investsmart. Post the stake acquisition, HSCI’s total holding in IL&FS
Investsmart increased to 50.01%, taking the total stake held by HSBC and HSCI together in
the company to 93.86%
HSBC Securities & capital markets (India) private limited 34,922,751 50.01 %
HSBC Violet investment (Mauritius) limited 30,625,692 43.85 %
Others 4,287,830 6.14 %
Total 69836273 100 %
Currently HSBC group is having 93.86% of share in IL&FS investsmart securities limited.
HSBC securities and capital markets (INDIA) private limited has 50.01% HSBC violet investment
(maturities) limited has 43.85% in investsmart. Now the company is running under the management
of HSBC group.

Company is now offering two type of product in the market according to the effectiveness of the
segments
Retail offering
Advisory Product
Mutual Fund Advisory Services

Our team of experts across India helps you in selecting the right scheme from over 500
offerings, matching your needs, goals and risks. In addition to this, we also help you
constantly monitor your MF portfolio, making changes according to your changing needs as
per the market scenario, in order to make your money work for you.
Portfolio Management Services (PMS)

At IL&FS Investsmart securities limited, we offer you just the solution that allows you to
relax as we put your money to work through the IISL-PMS, a Discretionary Portfolio
Management Service
IPO Advisory & Distribution Services

IL&FS Investsmart securities limited is one of India's leading companies engaged in the
activity IPO Advisory and Distribution. Our primary markets division does a comprehensive
research before recommending issues to clients. As a part of our online offering, customers
can invest in IPO's not only through our branches but also through our website, which also
provides you with regular updates on the IPO scenario, Open IPO's as well as all the
forthcoming IPO's at any given point of time.

Insurance Advisory Services
IL&FS Investsmart securities limited is your one stop shop for all Insurance &
Retirement needs. We have also been recognized as Best Retail Financial Advisor by
CNBC TV 18 for two years in a row 2005-06 and 2006-07. We are a composite insurance
broker providing comprehensive risk management solutions, both for corporates as well as
individuals
key service features include the following:-
 Risk management solutions for all

 Comprehensive research for all policies available on a regular basis
 Recommendations on a comprehensive insurance cover based on clients needs
 Maintain proper records of client policies
 Continuous monitoring of client account
Trading Products
Equities & Derivatives IL&FS Investsmart is a full service broking house offering
services across both the Cash and F&O segments. We are a member with National Stock
Exchange (NSE) as well as the Bombay Stock Exchange (BSE) and cater to your trading
needs through a network of more than 300 offices across India.
We also offer comprehensive trading solutions through our website www.investsmart.in

which is equipped with host of unique features to cater to your trading needs.

Our offerings include 3 different trading platforms to suit your individual needs, depending
upon your profile.
Our experienced team of Research Analysts and Advisory Managers guide you with
appropriate solutions, backed by in-depth research, knowledge and expertise on a regular
basis. We would constantly help you with strategies for investments in equities,
recommendations for trading on futures & options, hedging with Nifty and other product
and opportunities of risk-less arbitrage between various segments.
NRI Services
We offer investment solutions for NRIs with a host of services to make investing in India simple.
We guide you at every step of your investment in India right from PAN Card Assistance* to using
our robust trading platforms till assistance on accounting & income tax returns filing* in India
NRI Product offerings

 NREquity  NRI PMS
Complete control of equity Customized Solutions to meet NRI

investments in India Investment needs
Additional NRI Product offerings

 Mutual fund
 Insurance
 IPOs
 Other wealth management product
Institutional offering
Investment Banking
IL&FS Investsmart securities limited (IISL) offers you extensive range of Investment Banking
Services for equity related products and instruments. Our team advises you on transactions like
business structuring and capital raising opportunities based on your corporate needs and state of
capital markets. Services we specialize in include Management of:
 Initial Public Offering (IPOs)

 Follow-on Offerings
 Qualified Institutional Placements (QIPs)
 Buyback of Equities
 Open Offers
 Mergers & Acquisitions
 Private Equity Placements
 ESOPs

Institutional Equity
Company’s efficient execution, quality research, top quality human resources and
complete compliance with stock exchange regulations, as well as business standard ethics
lend towards our exemplary services to investors, through IPOs, equities, derivatives and
mutual funds.
Company also focus on identifying undiscovered value stocks to investors. Through it’s
array of services, this division is well-suited to corporate investors, banks, financial
institutions, insurance companies and FII’s .company’s Institutional Equity Business (IEB)
is well positioned to offer support for a complete range of investment banking service to
corporates.
IISL, work closely with institutional investors, private equity investors and corporates,
have been hosting round table conferences with leading CIOs / Fund Managers etc. Also,
conduct activities like organizing of road shows, enabling the senior management to interact
with FIIs, regular conference calls for institutional Investors etc. This works as a pre-
requisite to investing in stocks. Company’s expertise in this area also extends to
international investors from Singapore, Hong Kong, USA and the UK.

Institutional Debt
Institutional debt broking division includes, secondary market broking, primary market
debt placement & distribution and provident fund advisory services.
Secondary debt broking is the principle service provided by this division. The clients
mainly comprise of institutional debt players, such as banks, primary dealers, mutual funds,
large provident funds and in some cases corporate treasuries. The division empanelled with
almost all banks, primary dealers and mutual funds, on whose behalf it acts either on the
buying or selling side. All types of debt papers are covered, including government securities,
treasury bills, public sector bonds, corporate bonds etc. This desk also provides transacting
and advisory services to various provident funds and HNI clients.
The primary market services cover placement of debt paper issued by corporates, with
institutional segments covering banks, mutual funds etc. These services cover various
activities :-
 Advising the clients on the issuance including the instrument, quantum, timing, other
instrument specific structuring such as put / call option, conversion option and rating.
Assisting in the rating exercise and suggesting various means and options to improve
rating if so desired, through “Structured Obligations” or other mechanisms.
 Pre marketing the placement / issuance

 Selling / placing the issuance

 Assisting in any related documentation for the issuance
 Assisting in all other steps to complete the issuance for draw down funds
The debt instrument covered by this division cover both short term as well as longer
term instruments. Commercial paper and MIBOR Linked Bonds are popular among the
short-term instruments. The division uses a proprietary online platform called “DebtonNet”
for online book building of debt issuances.
IL&FS investsmart securities limited is facilitating the three type of trading product to its retail
customer are

SmartSTART
SmartStart is a powerful browser based trading system for those who are relatively new to
online investing. A unique integrated account, which integrates your banking, broking, and demat
accounts. A comprehensive trading service, which allows you to invest in equities and derivatives.
SmartStart trading platform allows you the flexibility of trading on any internet capable system,
with access to both the NSE and BSE.
FEATURES
 Trade on NSE & BSE

 Simple order entry for Equity & Derivatives
 Fully Customizable display
 User friendly Get Quote screen
 Integrated Accounts (Bank. Demat & Trading)
 Live order status
 Track your orders real-time
 Dynamic buying power
 Works behind a Proxy
 Back office access
SYSTEM REQUIREMENTS
Browser Type Microsoft Internet explorer 6.0 or higher

Internet Connection Dial-up connection (Modem at a minimum of 28.8/33.6 Kbps)
System Pentium 3 and above. RAM 128 MB or above
Operating System Windows 98/2000 or Windows XP
BENEFITS
NSE& BSE Access -

Flexibility of trading on both the NSE & BSE via a single screen.
Fully Customizable display –

The save desktop option allows you to save your created trade screen layout, so the next time
you access the application the created layout is not lost
Integrated Accounts (Bank. Demat & Trading) –

Integrates your banking, broking and demat accounts. This enables you to trade in shares
without going through the hassles of tracking settlement cycles, writing cheques and Transfer
Instructions, chasing your broker for cheques or Transfer Instructions etc.
Live order status –
Tracking all your orders is made easy through the order status screen. Further drill down into
all details pertaining to an order is available in the order detail sub report
Track your orders –
Track your stock order and trades
Dynamic buying power –
Reflects your credits and debits instantly on every trade execution. No need to refresh each
statement to know your latest buying limits
Works behind a Proxy –
This platform can be accessed on any Internet enabled network. You can access it even from
your place of work
Back Office access –
View segment wise ledger bills and contract notes, trades, positions, account contract notes,
trades, positions, account balance, realized/unrealized profit & loss, and buying power all in real
time
SmartINVEST
Smartinvest is a browser-based system designed for customers who transact occasionally. It is

ideal for investors who believe in the Buy and Hold approach towards investment in equities.
SmartInvest's capability as a browser-based trading platform gives you the benefit of real-time
streaming data with the flexibility of trading on any Internet capable system. With access to both the
NSE & BSE, you are in the driver's seat when routing your order to the best price on either of
the exchanges. Smartinvest sophisticated yet easy to use point and click order entry interface allows
you to react more quickly to the markets and make better decisions.

FEATURES
 Instant Loading
 Works behind a Proxy
 Live Streaming quotes
 Multiple Watch lists
 NSE& BSE Access

 Single order form for Cash and FnO
 Point and Click order entry
 Hot Key Functions
 Market Depth Window
 Back Office access
SYSTEM REQUIREMENT
Browser Type Microsoft Internet Explorer 6.0 or higher (Java enabled)

Internet Connection Broadband/Dial-Up connection (Modem at a minimum of 28.8/33.6 Kbps)
System Pentium 3 or 4 GHz or best available at market RAM (Physical) 128 MB or better
BENEFITS
Instant Loading -
The browser-based applet system allows you instant access to your account with no wait time,
unlike other systems that take a few minutes to load.
Works behind a Proxy -

This platform can be accessed on any Internet enabled network. You can access it even from
your place of work
Live Streaming quotes -

Keep an eye on the stocks you care about most with streaming, real-time quotes and
customizable market data. Color-coded price changes help you to spot trends and react to them
quickly

Multiple Watch lists -
The new watch list option allows you to create upto 10 watch lists. Each watch list can be
personalized by inserting securities which you would like view as a group
NSE& BSE Access -

Flexibility of trading on both the NSE & BSE via a single screen
Single order form for Cash and FnO -

Single order form offers you the convenience of transacting in various segments of the market
without having to switch between multiple windows
Point and Click order entry -

Makes order entry quick and simple with a click on the security the same gets inserted into the
order form on your trade screen
Hot Key Functions -

Using a single keystroke (Hot Key) function you can achieve important tasks very similar to a
broker's terminal. Accessing important reports is also one keystroke away
Market Depth Window -

It gives an immediate "at a glance" info about the stock you are following. The view provides
the best 5 bid and offer quotes and the outstanding order quantities
Back Office access -

View segment wise ledger bills and contract notes, trades, positions, account balance,
realized/unrealized profit & loss, and buying power all in real time

SmartTRADE
SmartTrade is an EXE based desktop software designed for active traders who transact
frequently to capture favorable short-term price movements. The platform offers active traders the
tools they need to make critical decisions with confidence. SmartTrade is designed and built from
the ground up to address the needs of active traders. SmartTrade makes the most of state-of the-art
technology to deliver power, speed and reliability. Through an easy-to-use interface, users are
provided with the same tools and advantages that the professionals enjoy.

FEATURES
 Fully Customizable display
 Dynamic Charts with Indicators
 EOD Charts
 Real-Time market data
 Advanced Alert capabilities
 Live order status
 Track your orders real time
 Real time position updates
 Dynamic buying power
 Derivative chain
 Lock terminal option
 Message window docking
SYSTEM REQUIREMENT
Browser Type Microsoft Internet Explorer 6.0 or higher (Java enabled)

Internet Connection Broadband/Dial-Up (Modem at a minimum of 28.8/33.6 Kbps)
System P 3 or 4 GHz or best available at market RAM 128 MB or better
BENEFITS

Fully Customizable display
The save desktop option allows you to save your created trade screen layout, so the next
time you access the application the created layout is not lost.
Dynamic Charts with Indicators

Provides you a wealth of charting capabilities and timing indicators, which allow
you to go right into the action with real-time daily charts, and intra-day charts. Watch price
movements by minutes, days, or weeks.
EOD Charts
SmartTrade puts up to 5 years of in-depth market history at your command with the
power to instantly back-test any trading strategy you design, before risking one rupee of
your trading capital.
Real-Time market data

Get real time market data from both the NSE and BSE similar to what your broker gets.
Advanced Alert capabilities

Alert Window allows you to be free from watching every tick. Users can be notified
once a security has reached the set parameters. Multiple securities can be monitored using
the set parameters. These alerts can be triggered both visually and audibly.
Live order status

Tracking all your orders is made easy through the order status screen. Further drill down
into all details pertaining to an order is available in the order detail sub report.
Track your orders real time

Track your stock order and trades in real-time.

Real time position updates
All your positions are updated automatically and instantly. No need to use the refresh
button at all.
Dynamic buying power

Reflects your credits and debits instantly on every trade execution. No need to refresh
each statement to know your latest buying limits.
Derivative chain
This feature provides you with a list of all derivative contracts available for the selected
security. To view derivative prices of a security just right click on the symbol and click on
derivative chain.
Lock terminal option

If your system is unattended this function locks the trading platform for you and can be
accessed again only on providing the proper login details.
Message window docking

This feature enables you to receive trading messages, intra-day trading calls, and messages from
both the exchanges flashed real time onto your screen
These are the various product ranges for its retail customer
SMART POWER SMART ELITE

Advance subscription
value(Rs)
Default 2500 12500 25000 50000
delivery brokerage 0.50% 0.35% 0.25% 0.20% 0.15%
intraday brokerage CM (1 leg) 0.05% 0.04% 0.03% 0.03% 0.02%

intraday brokerage CM (2 leg 0.05% 0.04% 0.03% 0.03% 0.02%
intraday brokerage F&O (1 leg) 0.05% 0.04% 0.03% 0.03% 0.02%
intraday brokerage F&O (2 leg) 0.05% 0.04% 0.03% 0.03% 0.02%

2.5% or 2.5% or Rs 1% or .75% or .60% or
option brokerage(which is high) Rs.100 90 Rs.60 Rs.40 Rs.30
ONLINE FUND TRANSFER
IISL have tie up with 5 banks, which are. HSBC, HDFC, IDBI, CITI, AXIS bank , for online
money transfer
4. LITERATURE REVIEW
ONLINE TRADING INFRASTRUCTURE
The emergence of online exchanges has facilitated faster transactions by providing online
trading portals and brokerage houses ease and flexibility. The Internet has indeed opened up new
opportunities for conducting the business. The worldwide stock exchanges has made a major shift
from the traditional method of trading and now conduct a bulk of its business online through its
brokers and partners.
In the developed countries majorly all the exchange transactions are conducted online. The
trend took off slowly in India and the National Stock Exchange (NSE) and the Bombay Stock
Exchange (BSE) two of the largest exchanges in India have been conducting online trade
successfully for some time.
WHY ONLINE TRADING ENTERED LATE IN INDIA?
The Indian exchanges and brokering houses have been very slow in moving their transactions
online and the major reason has been the lot government regulations. The initial delay was due to
laying down the specifications for creating Closed User Groups (CUGs). This issue was resolved

between the Department of Telecommunications (DoT) and the Finance Ministry around 1998 and
after that soon came the online trading portals like IL&FS investsmart, ICICIDirect.com,
motilaloswal.com, sharekhan.com etc. Connectivity related issue was perhaps the most important
technological factor.RBI made regulation that it is mandatory for company to store at least 7 year
financial and transactional data.
In the non-stop, 24 hours a day, seven days a week world of investing, we are able to
 Obtain investment news around the clock

 Check quotes on exchanges all over the world – day or night
 Easily compare one investment to another via numerous ratios, charts, graphs, and
tables
 Screen for the best investments to fit our individual goals and requirements
 Trade stocks as easily and quickly as professional traders
 Calculate retirement needs based on various scenarios
 Regularly monitor portfolios and make necessary changes quickly and almost
effortlessly
 Control the routing of individual trades for the best possible price and execution
Even many years after the launch of the first online brokerage firm, there remain a
large contingent of individual investors who still pick up the phone and call their stock
broker to buy and sell investments. However, every year a growing number of investors are
placing their trades using online brokers.
INDIAN EXCHANGES: NSE and BSE
The NSE and BSE are among the largest exchanges in the country handling very large daily
trading volumes, support large amounts of data traffic, and have a very large nationwide network.
The trading volume in year 2000 was huge with the average daily turnover in the capital markets
segment at NSE is around Rs 2300 crore and in the derivatives segment, around Rs 1300 crore.

The average daily traffic volume was around one million trades per day in the capital markets
segment and around 50,000 trades per day in the derivatives segment and there were around
13,000 registered users in both segments and an average of around 9500 users is logged in at a
time. At BSE the average daily turnover in 2001-2002 (April-March) was Rs 1244.10 crore and the
number of average daily trades was Rs 5.17 lakh.
THE NETWORK DESIGN
Any online exchange should always be-on, safe, secure, redundant and should have adequate
backup & recovery processes. The Vice President of NSE-IT G.M Shenoy tells that the basic design
objective of NSE was to provide fair, equal and transparent access across all NSE nationwide
locations and to provide connectivity to the trading members as soon as possible.
RECOMMENDATIONS OF SEBI
The SEBI has also played an important role in the issue of the guidelines regarding online
trading so that the chances of fraud and misrepresentation are minimized.The stock brokers which
are being registered with Securities Exchange Board of India (SEBI) will have to apply to stock
exchanges for a formal permission. The following conditions must be fulfilled-
 The online trading company must have a minimum net worth of Rs 50 lakh
 The encryption technology should be there in the system used by the brokers to ensure the
provision for confidentiality ,security ,justifiability and reliability of data .The user id, first
level and second level password, automatic expiry of passwords at the end of a reasonable
period,
 The brokers must maintain adequate back-up systems and data storage capacity which must
be checked by the stock exchanges.
 SEBI has recently announced that to reduce the fraud cases each and every broking house
has to give back the full amount of customer after each three month, they will have to show
the zero balance of every customer’s account at the end of every 3 month

 The minimum qualification must be laid down by the stock exchange to ensure that the
persons hired by the brokers must have the proper qualification regarding trading so as to
guide the clients and he can communicate regarding trading instructions.
 To ensure the authenticity and accuracy of data a certification agency must be appointed
using the certification technologies when notified by the government or the SEBI.
 The better client and the broker relationship to be maintained.
 To determine the risk associated with the clients the brokers must have the have sufficient
verifiable information about clients and the stock exchange must ensure it.
 The clients must be taken into an agreement stating about all the obligations and rights
including the minimum service standards to be maintained by the service provider broker for
services specified by SEBI/exchanges for Internet-based trading from time to time.
 The web site of the broker providing the online trading facility should contain information
rules and regulations affecting client broker relationship, arbitration rules, investor
protection rules, etc meant for investor protection. It should also provide and display
prominently hyper link to the web site/page on the web site of the relevant stock exchange(s)
displaying rules/ regulations/circulars. Ticker/quote/order book displayed on the web site of
the broker should display the time stamp as well as the source of such information.
 An e-mail should be sent to he investor for the confirmation of his Order or trade.
 The limits of trading and exposure provided to the client must be set on system-based
control and brokers and exchanges must ensure it. The limits must be predefined by the
broker on the exposure and turnover of each client. The system of broker should be such that
it is capable of assessing the risk of the client as soon as the order comes in. The system
should inform the clients client the reports on margin requirements, payment and delivery
obligations etc.
 As per the regulations the Contract Notes must be issued to clients within 24 hours of the
trade execution.

 Cross trades of the clients will not be allowed with each other to the brokers using Internet-
based systems for routing client order and all orders must be offered to the market for
matching.
A separate working group has been set up to look into the surveillance and enforcement-related
issues arising due to Internet-based securities trading. However, general anti-fraud provisions (SEBI
Fraudulent and Unfair Trade Practices Regulations, 1995) will apply to all transactions involving
securities or financial services, regardless of the medium
5. ONLINE TRADING
Online trading involves investment activity which takes place over the Internet and it does not
require physical inclusion of the broker. An investor has to register with an online trading portal like
Investsmart.in, ICICIdirect.com,Religare, motilaloswal.com and sharekhan.com and many
companies like that and investor gets into an agreement with the firm to trade in different securities
according to the terms and conditions given on the agreement. As the servers of the online trading
portal are connected all the time to the stock exchanges and designated banks the order processing
is done in real time and investors can also have updates on the trading.
They can also check the status of their orders either through e-mail or through the interface that
it cannot be accessed by a third party. Some options are usually given to users such as to link their
bank account, Demat accounts and brokerage accounts into a single interface. A single window is
also there for all exchanges and a single screen is there for the complete order routing mechanism.
The hardware used comprises Web and application servers, switches, routers, firewalls and security
devices, and specialized appliances. There are two broad models in play in the online brokerage
space-
 Bank-backed firms
 Entrepreneur-floated firms.

Bank-backed brokerages such as ICICIdirect and HDFC Securities have expanded on the basis
of their brand name and the trust of investors in them. The integrated 3-in-1 accounts offered by
these bank-backed brokerages help their parent bank by giving it accounts along with float income.
In second case i.e. Entrepreneur-backed companies like Investsmart, Indiabulls, Sharekhan,
Religare and IndiaInfoline have expanded by offering customers a mix of online and offline
accounts, higher margin finance amounts and lower brokerage rates. Though the bank based has
performed better but the latter have not lagged too far behind.
The reason why online trading has developed over conventional offline brokerage firms is that
this conventional method struggled with unfavorable economies. Staff cost is just one
example of it. As the markets opens for 335 minutes a day one dealer can at best execute 500
trades in a day while online company like ICICI direct executes 150,000-200,000 trades a day on
the National Stock Exchange alone accounting for 3-4% of NSE trades of 5 million a day. It would
require a large amount of dealers to service this demand. Besides the salary costs it would also
demand huge expenses in real estate and support systems.
The offline model has got a downfall in the form of lower bandwidth and IT costs and the cost
of bandwidth has fallen to one-eighth of what it was in 2000 giving online broking an advantage
especially in the case of lower-volume retail investors. In 2004, 30% of volumes on the NSE comes
from this and it gone up to 50% in year 2008-2009 providing explosive growth for online broking in
India.
To be a successful trading portal it will definitely depend on bunch of services provided by it for
an end-user. Most of the portals charge a small registration fee and brokerage based on various
conditions but it's important for the organization to keep focussed on customer-centric services and
delivery models to actually enjoy the most attention.
ADVANTAGES OF ONLINE TRADING
1. Provides with the Freedom of Information
The Internet provides a new sense of controlling our financial future as the amount of
investment information available online is truly outstanding. An investor can-

 Know the price of any stock he desires at any point time on the internet.
 An investor can review the price history of any stock in chart format online
 An investor can follow in-depth the events happening in the market
 Helps an investor in receiving a wealth of free commentary and analysis about stock markets
in the global economy
 Helps an investor to conduct an extensive financial research of any company he desires
 He may also consult with other investors online present around the world
Some online stock broking companies provide real-time stock quotes, daily roundups
of the stock market, expert commentary, and a deep community of fellow investors.
2. Provides Control to Investors Money
When an investor wants to buy or sell stock he no longer need to call his broker on the
phone thus helping in the execution of the order instantly on the internet.
3. Provides access to the market
Through the sophisticated information streams, dedicated trading platforms and

Sophisticated tools the investor can access the markets which provide more agility in
buying and selling stocks .
4. Ensures the best price for investors
Some companies like Investsmart (IL&FS)specialize in the techniques which offers

the best price deals for the buy and sell orders of the investors and traders providing the high
level of transparency by displaying of information relating to the specific stocks and

company profiles which helps in getting the best quote for the orders.
5. Online trading offers greater transparency
Online trading offers the investors with greater transparency by providing with an
audit trail. The process involves a complete integrated electronic chain starting from order
placement, to clearing and settlement and finally ending with a credit into the depository
account of the investor. All these stages are inspected which brings the transparency into the
system.
6. Provides hassle free trading
Online trading provides an integration of the bank account, trading account and
demat accounts, which leads to easy and paperless trading for the client.
7. Online trading allows instant trade execution
Online transactions helps in the quick execution of the entire trading transaction
right from logging to the traders site and to the settlement of the bank account in a very
short period of time.
8. It provides a level playing field
Trading online gives even the smallest retail investor access to information which
was earlier available only to the big traders. It has provided with a level playing field for all
investors in the securities market.
9. Online trading reduces the settlement risk
This method of trading reduces the settlement risk for the investor as when a short

sell order is played the orders are squared off at the specified cut-off time and are not
allowed to be carried forward.
10. Provides live financial news & analysis
The online sites also provide live terminals which provide streaming news to give
investor the latest financial information as it occurs.
11. Online help desk
Some companies provide online help desk an investor cancan contact the Tele
Trading Executives from the Tele Trading team during and after market hours and can
clarify questions.
12. Instant order trade confirmations
Through online trading every trade is confirmed immediately and investor receives an
on-screen confirmation following every trade with full details for the investors records
which avoids costly errors that would have been discovered when it is too late.
13. Keeps Information Secure
As per the guideline provided by SEBI every effort has to be made to keep the
investors account and personal information secure by use of encryption technology and
updated security technology to advanced fraud prevention measures.
DISADVANTAGES OF ONLINE TRADING
 In online terminal, investor can’t get customized expert advice, whereas in offline the broker
gives suggestions according to investors strategy (i.e. short term or long-term)
 Brokerage is high compared to offline.
 Privacy is less due to hacking scandals
 Transactional errors due to technical problems

6. THE EMERGENCE OF ONLINE TRADING IN INDIA
The Indian trader is being fancied by the democratized world of online trading or also known as
e-broking. The regular and attractive advertisements in the print media and electronic media have
added to this fancy world
But as we compare to the Western countries, in India online trading has not still grasped the market
, but has done a very important amount of progress in the past years and the future of online trading
is bright. That is why many new companies are coming into this form of business structure and the
existing companies are changing to this new format besides offline and other traditional forms of
business. With only a mere share of 10% online trading a combined gross turnover of around Rs.
12000-13,000 crores handled by the BSE and NSE together there is a much greater scope for online
trading.
The various player who’s offering and facilities is different according to the individual
investors. This will help us understand what processes and strategies competitors’ have
adopted to attract and retain investors and satisfy their investments needs.
At present some of the dominant players in the online trading market of share
market are –

ICICIDirect (or ICICIDirect.com) is stock trading company of ICICI Bank. Along with
stock trading and trading in derivatives in BSE and NSE, it also provides facility to invest in
IPOs, Mutual Funds and Bonds.
Type of Account
ICICIDirect offers 3 different online trading platforms to its customers:
Share Trading Account
Share Trading Account by ICICIDirect is mainly for buying and selling of stocks in
BSE and NSE. This account allows Cash Trading, Margin Trading, Margin Plus
Trading, Spot Trading, Buy Today Sell Tomorrow and Call and Trade on phone.
They also provide installable application terminal based application for high volume
trader.
Wise Investment Account
Along with MF and IPO investing in BSE and NSE, Wise Investment account also
provide options to invest in Mutual Funds, around 19 Mutual Fund companies and
bonds. ICICI Direct offers various options while investing in Mutual Funds like
Purchase Mutual Fund, Redemption and switch between different schemes,
Systematic Investment plans, Systematic withdrawal plan and transferring existing
Mutual Funds in to electronic mode. This account also provides facility to invest in
Government of India Bonds and ICICI Bank Tax Saving Bonds.
ICICIDirect.com website is the primary tool to invest in Mutual Funds, IPOs, Bonds
and stock trading.
Active Trader Account
Active Trader account gives more personalized investment options to the investors. It
allows investor to use online and offline stock trading. It also provides with

independent market expertise and support through a dedicated Relationship Manager
from ICICI. Active Trader also provides commodity trading.
Brokerage and fees
Account opening fees : Rs 975/- (non-refundable)
Brokerage: ICICIDirect.com brokerage varies on volume of trade and inclusive of

demats transaction charges, service taxes and courier charges for contract notes. It ranges
from 0.1% to 0.15% for margin trades, 0.2% to 0.425% for squared off trades and 0.4% to
0.75% on delivery based trades.
Advantages of ICICIDirect
 3-in-1 account integrates your banking, broking and demat accounts. All accounts are
from ICICI and very well integrated. This feature makes ICICI the most interesting
player in online trading facility.
 Unlike most of the online trading companies in India which require transferring
money to the broker’s pool or towards deposits, at ICICI Direct you can manage
your own demat and bank accounts through ICICIdirect.com..
 Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes
all from one website. General Insurance is also available from ICICI Lombard.
 Trading is available in both BSE and NSE.
Disadvantages of ICICIDirect

Getting access to ICICIDirect.com website during market session can be frustrating.
 ICICI Direct brokerage is high and not negotiable.

 Not all stocks are available under Margin Plus
 Facility for linking account of ICICI Bank Only
Reliance Money, A group company of Reliance Capital Limited, is the financial

services division of the Rs 10'000 Crore Reliance Anil Dhirubhai Ambani Group. Reliance
Money has over 22 lakhs customers and more than 10'000 branches in around 5000 cities in
India. Company is among the largest broking and distribution house of financial products
and having share of more than 3% of total stock market volume at BSE & NSE.
RelianceMoney.com enables its customer to invest & manage most of the services
provided by Reliance Money including Equity (Stock) Trading, Commodity Trading,
Derivatives, Mutual Fund Investment, IPO Investment, Life Insurances, General insurances,
Money Transfer, Forex exchange, Gold Coins and Credit Cards Services. Company recently
entered in to Wealth Management with tools like investment in equity-linked portfolio
management services, structured products, insurance and mutual funds.
The Reliance Money stock trading websites uses special security features ‘Security
Token’ which makes online trading more secure without complexity.Stock Trading through

RelianceMoney.com is available for BSE and NSE stock exchanges. Offline trading is also
available through Reliance Money partners in more than 5000 city across India and through
phone by dialing 022-39886000.
The investment options available with Reliance Money online portal are as below:
 Equity (Stock) Trading at BSE, NSE and NSE F&O

 IPO Investment
 Derivatives Trading
 Forex Trading
 Commodity Trading (Gold, Silver, Crude etc....) at MCX, NCDEX and NMCE.
 Mutual Fund Investment
 Life & General Insurance
 'Pure Swiss' Gold Coins (99.99% pure, 24 carat)
Trading platforms
Reliance Money provides 3 different trading platforms for equity trading:
1. Insta Trade
2. Fast Trade
3. Easy trade
Reliance Money Technical Analysis (A paid service)
Reliance Money offers a simplified, automated, sophisticated technical analysis to

Indian retail broking consumers with the help of Recognia's Technical Analysis tools.
Recognia, a Canada based company, has proprietary pattern recognition technology capable

of recognizing patterns in the price charts of any publicly traded financial instrument
including stocks, bonds, funds, commodities, currencies and indexes.
The technical services are available for introductory free 7-day trial period to Reliance
Money users. Post the trail period, this service is available to users at a nominal subscription
of Rs. 99 for 3 months/ Rs. 179 for 6 months/ Rs. 299 for a year, i.e., less than Re 1 a day.
Reliance Money Brokerage and fees:
Reliance Money offers lowest brokerage rates in today's online stock trading industry
in India. The brokerages are as low as 0.075% for delivery based trading and 0.02 for now
delivery. For more detail about Reliance Money’s brokerage and fees visit the below section
of this webpage.
Advantages of Reliance Money
 Extra security features with 'Security Token’', which is the most secure and tested
technology in computer world.
 Simple, easy and fast online stock trading.
 Almost all investment options are available under one account including Equity
Trading, Derivatives, Forex, Commodity, IPO, Mutual Funds and Insurance.
 Branches are available in all major cities and the number is growing.
Disadvantages of Reliance Money

 Customer Service is not that good.
Sharekhan is online stock trading company of SSKI Group, provider of India-based

investment banking and corporate finance service. Sharekhan is one of the largest stock
broking houses in the country. S.S. Kantilal Ishwarlal Securities Limited (SSKI) has been
among India’s leading broking houses for more than a century.
Sharekhan's equity related services include trade execution on BSE, NSE, Derivatives,
commodities, depository services, online trading and investment advice. Trading is available
in BSE and NSE. Along with Sharekhan.com website, Sharekhan has around 510 offices
(share shops) in 170 cities around the country.
Share khan has one of the best state of art web portal providing fundamental and
statistical information across equity, mutual funds and IPOs. You can surf across 5,500
companies for in-depth information, details about more than 1,500 mutual fund schemes and
IPO data. You can also access other market related details such as board meetings, result
announcements, FII transactions, buying/selling by mutual funds and much more.

Type of Account
Sharekhan Classic account
Allow investor to buy and sell stocks online along with the following features
like multiple watch lists, Integrated Banking, demat and digital contracts, Real-time
portfolio tracking with price alerts and Instant credit & transfer.
 Online trading account for investing in Equities and Derivatives

 Free trading through Phone (Dial-n-Trade)
• Two dedicated numbers for placing your orders with your cellphone
or landline.
• Automatic funds transfer with phone banking (for Citibank and
HDFC bank customers)
• Simple and Secure Interactive Voice Response based system for
authentication
• get the trusted, professional advice of our telebrokers
• After hours order placement facility between 8.00 am and 9.30 am
 Integration of: Online trading + Bank + Demat account

 Instant cash transfer facility against purchase & sale of shares
 Investments and trade confirmations by e-mail
 Single screen interface for cash and derivatives
Sharekhan Speed Trade account

This accounts for active traders who trade frequently during the day's trading
session. Following are few popular features of SpeedTrade account.
 Single screen interface for cash and derivatives

 Real-time streaming quotes with Instant order Execution & Confirmation
 Hot keys similar to a traditional broker terminal
 Alerts and reminders
 Back-up facility to place trades on Direct Phone lines
Brokerage:
Some stock trading companies charge direct percentage while others charge a fixed
amount per Rs 100. Sharekhan charges 0.5% for inter day shares and 0.1% for intra day or
you could say Sharekhan charges 50 paise per Rs 100.
Advantages of Sharekhan:
 Online trading is very user friendly and one doesn't need any software to access.
 They provides good quality of services like daily SMS alerts, mail alerts, stock
recommendations etc.
 Sharekhan has ability to transfer funds from most banks. Unlike ICICI Direct, HDFC
Sec, etc., so investor not really needs to open an account with a particular bank as it
can establish link with most modern banks.

Disadvantages of Sharekhan:
 They charge minimum brokerage of 10 paisa per stock would not let you trade stocks
below 20 rs. (If you trade, you will loose majority of your money in brokerage).
 Lots of hidden rules and charges.
 They do not provide facility to book limit order trades during after-hours.
 Classic account holders cannot trade commodities.
 Cannot purchase mutual funds online.
Kotak Securities Limited, a subsidiary of Kotak Mahindra Bank, was set up in 1994.
Kotak Securities is a corporate member of both Bombay Stock Exchange (BSE) and
National Stock Exchange (NSE). Currently, Kotak Securities is one of the largest broking
houses in India with wide geographical reach.

Kotak securities online trading, is the online trading portal of the Kotak Securities Ltd, the
leading stock broking house of India. The online division of Kotak Securities Limited
provides services like internet broking services, online IPO and mutual fund investments.
ACCOUNT TYPES:
Kotak offers different account types according to users requirement:
Kotak Gateway
Kotak securities gateway account opens the gateway to a world of investing

opportunities for beginners. Kotak gateway user can trade anywhere, anytime using internet.
Kotak also offers call and trade facility.
They provide sms alert, research report, free news and market updates. Best feature of
Kotak gateway is call and trade facility. Anybody can activate Kotak securities gateway
account with any amount between Rs 20,000 to 5, 00,000. This can be in form of cash
deposit or the value of the shares you buy. Brokerage will be charged based on the account
type. For intraday trading brokerage is .06% both sides for less then 25 lakhs and .023% for
more then 25 crores.

Kotak Privilege Circle
This is the premium account for its users. Along with kotak gateway account benefits
they provides independent market expertise and support through a dedicated relationship
manager and a dedicated customer service desk which provides assistance in
opening accounts, handling day-to-day problems, and more. They provides KEAT premium
which is an exclusive online tool that lets you monitor what is happening in the market and
view your gains and losses in real-time.
One can activate Kotak securities privilege circle account with any amount more than
Rs. 10, 00,000/- as margin, by way of cash or stock. For intraday trading brokerage is .06%
both sides for less then 25 lakhs and .03% for more then 25 crores.
Kotak High Trader
This is the best offer for daily trader or intraday traders. This is an Auto Square Off
product where you can enjoy the benefits of intra-day trading. Trader can get the 6 times
exposure on the margin. They provide all the benefits which kotak gateway and privilege
account provides. Trader can apply paper free order for IPO.
One can activate Kotak securities high trader with any amount less than Rs 5, 00,000/-
as margin, by way of cash or stock. The minimum brokerage that is applicable in the Kotak
high trader account is 4 paisa on delivery and 4 paisa in the cash segment.
Kotak Freeway

Frequent trader use this account type because freeway account enables it’s users to
trade as many times as they like - at a fixed brokerage.
One can activate Kotak securities freeway with any amount less than Rs. 1, 25,000/-
as margin, by way of cash or stock. They charge fixed brokerage of Rs.999/- a month and on
delivery transaction brokerage is .59% on less then 1lakhs and .18% on more then 2 crores.
Kotak Flat
This product is best suited for the needs of the Indian retail investor who actively invests
through the internet. Kotak flat introduces the international trend of charging brokerages on
per trade basis. Brokerage rate works up to 0.18% on delivery trades and 0.018% for
intraday trades.
Kotak Assist
This account most suits to long term investors. This account provides Complete
assistance on all your financial investment.
Brokerage and Account opening fees:
A trading account in Kotak requires you to have a minimum of Rs.1000 to start with, the
bank account to have a minimum of Rs.2500.

Brokerage:
 For Intra-day trading, Kotak brokerage is around 0.05%.

 For delivery trading, Kotak brokerage is around 0.45%.
Advantages of Kotak Securities Limited
 Kotak provides a Call & Trade facility to its customers wherein they can place and
track their orders through phone when they are away from home.
 They provides daily SMS alerts, market pointers, periodical research reports, stock
recommendations etc.
 Kotak provides exclusive online tool to monitor what is happening in the market and
also investor can view gains/losses in real-time.
Disadvantages of Kotak Securities Limited
 In online trading sometimes delay comes. So it can be frustrating
Indiabulls is India's leading Financial Services and Real Estate Company having
presence over 414 locations in more than 124 cities. Indiabulls Financial Services Ltd is
listed on the National Stock Exchange, Bombay Stock Exchange, Luxembourg Stock
Exchange and London Stock Exchange.

TYPE OF ACCOUNT
Indiabulls Equity Trading Account
Indiabulls Equity Trading Account is standard Online trading account from India
bulls and along with online trading it also provides priority telephone access that
gives you direct access to your Relationship Manager and full access to 'Indiabulls
Equity Analysis'.
Power Indiabulls
Power Indiabulls trading terminal is the most advanced new generation trading
platform with great speed. This trading terminal is built in JAVA.
Power Indiabulls is extremely reach in features including Live Streaming Quotes,
Fast Order Entry and execution, Tic by Tic Live Charts, Technical Analysis, Live
News and Alerts, Extensive Reports for Real-time Accounting.
Brokerage and fees:
Account opening fees: Rs 1200/- (One time, non-refundable) as below:
250/- Equity Trading Account opening charge

200/- Demat Account opening charge
750/- Software changes

Advantages of Indiabulls
 Brokerage is less compare to other online trading companies.

 Provide trading terminal 'powerbulls', a java based software. It's very fast in terms of
speed and execution.
Disadvantages of Indiabulls
 Faces lots of complaints regarding portal breakdown.
Motilal Oswal Financial Services (MOSL), a leading brokerage firm, has exhibited
robust and consistent growth in both institutional and retail broking. An established brand
name and extensive geographic network covering 1,339 locations in over 426 cities and
towns would provide it ample opportunities to cross-sell products and services. It has also
forayed into related businesses like investment banking, private equity and asset
management. We believe the stock offers quality exposure to the domestic equity broking
and financial services market, which has impressive growth potential.
Strong competitive positioning
MOSL is one of the leading stock broking firms in India with a rapidly growing client
base and wide distribution network. A respected research presence and extensive reach has
resulted in robust growth in its retail business. The company also has a strong institutional

equity business. It has consistently improved its market share in terms of traded volumes on
the stock exchanges
Diversifying into related businesses
MOSL has forayed into related business like investment banking, private equity and
asset management. Though all these business are linked to capital market, we believe the
move would bring in various diversification benefits for the company going forward
Customized investment management services
MOSL offers customized investment management services to its retail clients. These
services include planning, advisory, execution and monitoring a range of investment
products. It also provides wealth management services.
The company has classified its clients into three segments – Mass Retail, Mid-Tier
Millionaire and (PCG) Private Client Group. According to the needs of each segment,
products and services are offered through the company’s business locations and online
channels. MOSL has a discretionary portfolio management business. The company is
seeking to build this business rapidly. The target customer segment for wealth management
business would largely be the HNW (high net-worth) segment. The growing client bases of
its broking and distribution businesses would be a captive source for cross-selling these
products. MOSL has recently launched a separate branded product (Purple) for catering to
the needs of this segment.
Strategy adopted by Motilal Oswal

Religare Securities Ltd is a Ranbaxy promoter group company, is one of India’s
largest and fastest growing integrated financial services institutions. The company offers a
large and diverse bouquet of services ranging from equities, commodities, insurance
broking, to wealth advisory, portfolio management services, personal finance services,
Investment banking and institutional broking services.
Religare’s retail network spreads across the length and breadth of the country with its
presence through more than 900 locations across more than 300 cities and towns. Having
spread itself fairly well across the country and with the promise of not resting on its laurels,
it has also aggressively started eyeing global geographies.
Unique features and benefits of trading through Religare:
 Trade Reward
Trade Rewards is a unique offering from Religare that gives you dual
benefits of hassle free investment experience online and an opportunity to earn while
you invest with us.
 Zero Brokerage:

“Break the shackles”. Get freedom from brokerage and avail zero brokerage on
your trades through us.
 Exposure up to 20 times on your margin:
Allowing you the freedom to trade without hassles throughout the day without
having to worry about your cash margin. You can get exposure (on cash
Segment) as high as 20 times for intraday trades. Of course conditions apply on

above two.
 Interest on cash margin:
Even while you are waiting to make your next trade or online investment,
your unutilized cash does not lie idle with us. You earn interest on your unutilized
cash margin.
The indiaInfoline group, comprising the holding company, India Infoline Limited and
its wholly-owned subsidiaries, straddle the entire financial space with offerings ranging
from Equity research, Equities and derivatives trading, Commodities trading, portfolio
management services, Mutual Funds, Life Insurance, Fixed Deposits, Gold Bonds and other
small savings instruments to loan products and investment banking. Website of India
Infoline for trading is www.5paisa.com.
The company has a network of 976 business locations (branches and Sub-brokers) spread
across 365 cities and towns. Today it has more than 800000 clients

Trading Platform
5Paisa offers 2 different online trading terminals to its customers:
Investor Terminal (IT)

Investor Terminal is 5Paisa's equity trading terminal for low volume trader. This is web based
terminal and could access from anywhere. This product provides limited features in comparison of
Trader Terminal, which is another product provided by 5Paisa.
Trader Terminal (TT)
Trader Terminal is for high volume equity traders. Trader Terminal provides high volume
trading with powerful interface and fast order execution.
Brokerage and Account opening fees:
Account opening fees

Rs 500/- onetime non refundable Brokerage
Brokerage:
5 paisa offers charge only 5 paisa for Rs100 of intraday trade done, which is 0.05%
brokerage. In case of in delivery trade, they charge an additional 0.20% for back office and
securities handling.
So these are the key players of the Indian online trading market
Brokerage Comparison Sheet of key player of the Indian market

Brokerage for Account AMC
Brokerage for
Online Broker Intraday opening (Rs)
Delivery* (%)
trading* (%) charges (Rs)
IL&FS 300
investsmart
.50-.15% .05-.02 950/-
500/-
ICICIdirect 0.75 - 0.25 0.375 - 0.125 975/-
Indiabulls 0.50 - 0.25 0.10 - 0.50 900/- NIL
Religare 0.30 - 0.20 0.03 - 0.02 500/- NIL

Sharekhan 0.50 - 0.03 0.10 - 0.03 750/- 300/-
Kotak 350/-
Securities
0.59 – 0.18 0.06 – 0.03 750/-
Motilal 300/-
Oswal
0.50 - 0.30 0.15 - 0.03 500/-
Reliance 200/-
Money
0.50 - 0.10 0.03 - 0.01 750/-
NIL
IndiaInfoline 0.50 - 0.25 0.10 - 0.05 555/-
Comparison of Allied Services
Third Party Buy/Sell

Online Broker Bank Alliance
Product* Online/Offline
IL&FS HSBC,CITI.HDFC, YES BOTH
IDBI,AXIS
investsmart
ICICIdirect ICICI Yes ONLINE
Reliance ICICI, IDBI, HDFC, UTI,

Yes ONLINE
Money SBI
Axis, ICICI, BOI, Indian
Overseas Bank, Yes
Sharekhan Bank, HDFC, IDBI,
Yes ONLINE
IndusInd, PNB
Indiabulls ICICI, HDFC,Axis,IDBI Yes BOTH
Religare - Yes BOTH
Motilal
SBI Yes OFFLINE
Oswal
Kotak Kotak Mahindra, HDFC,
Yes ONLINE
Securities Citibank, UTI, ICICI
IndiaInfoline Axis, Citi, HDFC, ICICI Yes BOTH

*Third party products includes Mutual Funds, Fixed Deposits (corporate), Insurance, etc.

Earlier the organization’s which provided the facility of online trading was not safe enough to
invest but some of the changes in the past years in the Indian share market have created the interest
of trading in the shares by the people. Broadly we can classify three important factors which have
contributed to the development of online trading in India-
Firstly the major step was taken by the National Stock Exchange (NSE) in the year 1994 which
allowed the electronic trading and seeing to this various other stock exchanges in India followed
soon. This helped in making the fast, accurate and transparent transactions saving a lot of time then
the traditional method of trading. The investors were also saved by the clutches of the fraud brokers
at the times when the clients were not aware of the true prices of the shares.
Secondly, in the year 1996 the dematerialization of the shares came (also known as DEMAT)
which avoided the online presence of shares in an electronic form avoiding them from theft,
pilferage or from other losses like counterfeiting and frauds regarding share transfer.
The third step was the rapid growth of computer education and learning of internet by the
people. With the evolving of internet the online trading became a hit and the investors became
confident in investing just with a click of a mouse.
With the happening of such events the ratio of trading has improved a lot. As it takes less time
people praise this technology for trading purposes. Some people who traded rarely now even trades
2-3 times every day as it provides edge of researching about companies on the internet. The number
of small investors is increasing on the daily basis that trades on the internet.If a person invests or
trades in equities, derivatives, commodities etc through the use Internet it is known as online trading
enabling the investor to connect electronically to buy or sell stocks, derivatives etc with the other
investors. This can be done with the help of online service providers like investsmart, indiaInfoline
etc. A person can access a stockbroker's website through an PC connected to Internet and can place
his orders. The benefits are-
 A person can see the latest market movement through streaming quotes.
 Reduces time lag due to self-execution and instant confirmation.
 Empowers traders to have a complete control over their trading decisions.
 A person can access his accounts and related information on the Website.

 Provides greater convenience of trade as a person can trade from home or other convenient
location.
 It is cheap in terms of cost associated and offers reduction in overheads
 A trader can view the historical charts on his computer.
The Internet revolution has changed the way to communicate and the way to do business in
today’s society bringing us closer and closer to vital sources of information. It provides us with
means to directly interact with service-oriented computer systems tailored to our specific needs;
therefore, we can serve ourselves better by making our own decisions.
This new access by the online trading customers to low-cost transactions and cutting-edge,
real-time market information that formerly belonged only to brokers has opened up extraordinary
new investment opportunities as well as a crucial need for state-of-the-art information.
Today the investors use the Internet Client-Server technology to buy and sell the securities at
an instant at any point of time. People investing online have reached the proportions. Online trading
allows an investor to buy and sell shares on the exchange through Internet and helps in the direct
control of his investments.
7. GROWTH OF ONLINE TRADING
According to an article by Krishnamurthy B in 2005 after inception of online trading in India

in the year 2000 online trading is gained momentum with trading volumes growing by 150 per cent
per annum in the years 2003-2005 and it was more than approx. 200% in the year 2008 The volume
of all trades executed through the Internet on the National Stock Exchange had grown from less
than Rs 100 crore (Rs 1 billion) in June 2003 to over Rs 700 crore (Rs 7 billion) in July 2005 which
was a handsome growth in the year 2005in the starting of 2008 the growth of online share was good

but at the mid of the year when subprime crisis affected India including all over the world, market
of online trading got shrunk by more than 50%
Now the growth of online trading is on its right track ,Indian stock market has been announced
the one of the Safe and stable market of the world, so here in India the online trading is growing like
anything in comparison to the whole world
At the end of July 2008, there were more than 168 registered brokers on the NSE and the number
of Internet trading subscribers to about 2.024 million. In the year 2007 India has 8 crore (80
million) internet user, the % of internet user is growing in each year
At the same time the number of subscribers trading through the portal of Kotak Securities had
gone up significantly by 150 per cent and the number of online trading customers had grown from
30,000 to 75,000. And the company expected to have at least 130,000 customers by the end of that
fiscal. In the recent past years of 2005 ICICIDirect and Indiabulls recorded an annual volume
growth of 100 per cent and Indiabulls had about 30 per cent of India's online trading volumes.
Today the total volume of online trade in India is about 29-31% of total trades.
According to brokers the better broadband connectivity across the country and wider awareness of
equity as an asset class will raise the online trade volumes to over 50% of total trade.In India the
demography is such that 75% of the population is under the age of 36 and more than 50% of the
75% is under age of 25 and this is another supporting factor
The Chief Executive of Reliance Money Ltd says that online investing is still at a nascent
stage in India and expects that Internet-based trading will eventually take about half of the total
stock market trading as like with developed markets such as the US. Philippines has the highest
online trade with about 55-60% execution of trade is online. The reason is because they had wider
Internet connectivity years before India. The biggest challenge in India remains better Internet
connectivity. The earlier Web-based technology used for Internet trading has been replaced by
specialized software which gives real-time global data streaming rates to trader helping investors to

analyze the market trends and helps in faster execution of trades. Earlier the investors made trade
calls over the phone which sometimes led to the delays.
Online share trading in India was at a boom in the end of 2006 with daily-traded volumes
more than tripling from Rs 1,500 crore to Rs 5,000 crore in the last one year and terminals was set
up in small towns such as Rajkot, Hubli and Vijayawada .In that year the share of online trading
rose dramatically from 7% last year to 20% as a percentage of overall traded volumes. Due to this
factor the top five US brokerage firms decided to make a foray into India in the next year driven by
strategic interest. Also at that time non-metros accounted for half of the daily turnover of online
trading.
Graph is showing the declining in the turnover of online trading in Indian stock exchange
during slowdown in economy due to subprime mortgage crisis.
A crash of the market in the early February 2008 the investors remained away from online
trading the turnover of the NSE from internet-based trading dipped to a daily average of Rs 1,648

crore between February 1 and February 8 as compared with Rs 3,450 crore in January 2008 Rs
3,587 crore in December 2007 and Rs 4,417 crore in November 2007 in the exchange’s cash market
segment. In the mid February 2008 it accounted for just 12% of NSE’s total cash turnover as
compared with a high of 24% in November last year.
"Issues that need to be addressed are education on cyber crime and the security solutions
around it," says Vinesh Menon, Deputy CEO & Head for Online Investment & Branch Channel,
Bajaj Capital
"It's a matter of time when we will see exponential growth in the online trading segment, not
just through the computer but also through our mobile phones," adds Menon. With over 20 million
investors,
India boasts of the third highest investor base in the world, unthinkable till a few years ago.
The most online stock broking companies started from 2000 onwards because of development of
global Internet economy and for years 2000 to 2003 the stock market was under a bear hug. The
intense competition among a new wave of online brokerage companies hammered down brokerage
rates from 1% (in 2000) to 0.25 %, or even lower to 5 paisa
The number of investors opting for online trading has gone up manifold, according to the
recently published 'India’s Leading Equity Broking Houses, 2008' by Dun & Bradstreet (D&B). The
publication says that less than 10% of the 191 broking firms surveyed reported huge growth in
opening of e-broking accounts and some firms saw a surge in value of up to 400% in e-broking
during 2007

According to the report, numbers of e-broking accounts registered in 2007 have grown
exponentionally. Indiabulls Securities Ltd added 4,51,611 accounts while a relatively new firm in
the industry, Reliance Money added 2,15,678 accounts during the same time period. Motilal Oswal
Securities Ltd managed to add 19,065 accounts while Unicon Financial Intermediates Pvt Ltd could
increase their e-broking accounts by 13,787
According to market watchers, the rise in the value of on line transactions is also because of
sustained bull run witnessed in 2007, when the 30-share Sensex of the Bombay Stock Exchange
(BSE) gained from 13,842 points to 20,207 points, a gain of 6,365 points (up 47%).

E-broking is contributing a sizeable portion to the trading volumes and also to the revenue
generated for leading stock broking firms. Some examples of the percentage contribution to trading
volumes contributed by e-broking are 91% in case of Reliance Money, 62% for India Bulls, 20%
each for ASL Capital and Shreyas Stock, 19% Angel Broking, and 15% Farsight Capital. In respect
of revenues generated from e-broking, India Bulls (63%), Reliance Money (54%), Unicon Financial
(30%) and Shreyas Stock (20%) reported higher shares in 2007. Ashika reported 98% growth in e-
broking business in the first 10 months of 2007.
Another significant trend is the growth in international business of broking firms. Firms that
reported presence of offices outside India include Reliance Money, Motilal Oswal, Karvy Stock
Broking, JRG securities, Vogue and Bonanza Portfolio.
HDFC Securities have 500,000 online customers’ deals in daily online trades worth Rs 250-
300 crore is also in the black. The revenues it had in 2007-08 is Rs 100 crore. HDFC Securities had
revenues of Rs 67 crore and a net profit of Rs 7.21 crore in 2006-07. ICICIdirect has 1.5 million
online broking accounts and parent ICICI Securities reported revenues of Rs 750 crore for March

2008. The new player Reliance Money has 2 million online accounts trades worth Rs 2,000 to Rs
3,000 crore per day.
8. ANALYSIS PART
Ans.1 What is your education qualification?
INTERPRETATION
the people who are dealing with the stock market either online or offline. mort of them are
graduate,49%of the total respondent who are dealing with the stock market are graduate, then 16%
are post graduate and 22%people is having professional degree. So here this is showing that
qualification up to graduation or more than that is in the favour of the online trading pattern
Ans. 2 What is your annual income?

INTERPRETATION
58%respondent are having the income level of 100000-200000 ,21% is having 200000-
300000 , 12% in having300000-400000 , 7% of the total respondent are having income more than
400000 per annum and only 2% are having less than 100000 per annum.
To invest in the stock market minimum 100000 or more than this should be the annual
income level of the people. In India the per capita income in also increasing so we can say that there
is a good opportunity for the online trading market.
Ans.3 What percentage of your monthly household income could be available for investment?

INTERPRETATION
According to the data 23% of the total respondent invest less than 5% of their income,
41% respondents are saying that they invest 5%-10% of their monthly income (which is highest)
Whereas the 21% investor do the investment 10%-15% of their total monthly income,13 invest
between 15%-20% of the total income and only 2% does more than 20% of their income invest in
the market
We can easily understand that 75% of the total population is having a good amount of
investment, so the investment is their in the market, good number of people are ready to invest a
good amount in the market
91% of respondent is in the income level of 100000 – 300000 (according to the last question
analysis).
So we can say that stock brokerage houses will have to do a good business with the help of
Online trading system with few value addition services
Ans.4 Where do you often invest your money?

INTERPRETATION
Highest number of respondent is having their investment in the equity that is 65% whereas the
investment available for the mutual fund, term deposit and insurance is 14% ,12% and 9%
So the investor for equity is high which is again showing the n number of opportunity for online
trading
Ans.5 what is the primary objective of your investment?
INTERPRETATION

13% of the respondent invest the money for the reason capital appreciation but most of the
investor is having same motive that is source of income and retirement plan, wealth preservation
and education funding for children or other are only 10%
From the analysis we can have idea that the main objective of the investor to earn the money
through trading in stock market
77% of the respondent achieve their objective with the help of investment in the equity market,
because most of the investment take place in the form of equity (explanation of 4th ans. )
So we can say that there is a huge potential in the market for the trading in the stock market
Ans.6 Do you owe a Computer?
INTERPRETATION
78% of the total respondent who are dealing with the stock market is having computer in their
house and only 22% is not having computer in their house
The people who is having computer that is 78% can also go for online trading which can be a
large number of people who will go for online trading. they don’t need to do a additional investment
for computer to go for online trading
Ans.7 To operate a computer is easy for me

INTERPRETATION
76% (26+51) of the total respondent believe that operate a computer is easy for me whereas
20%(13+7) of the respondent is having problem to operate a computer out of that 20% , 75 believe
that they can’t go for computer
So ,if 78% of the people who are dealing with the stock market is having computer at their house
and around 76% of the same population don’t have any problem to operate a computer
So around 60 % is their who is having computer and they don’t have problem to operate a computer
Ans.8 online trading is a secure way of trading

INTERPRETATION
71% of the respondent is having a positive thinking that online trading is a secure way of
trading whereas 185 of the respondent believes that online trading is not a secure way of trading
Satisfaction about the process, by which they will be going to do a trading that is online trading,
should be there in the mind of the customer. If they believe that their is no risk over the money
which they are going to invest in the market with the help of online trading, there will be a
perception to go for online trading at least one time
Ans.9 online trading is easy and fast way of trading?
INTERPRETATION

51% of the total respondent believe that online trading is a easy task Whereas 41% of the
respondent believes that to deal with online Trading is not a easy task and 85 was confused to
anything about that the trading via internet is a easy task or not
There is a difference between the people who believe and who don’t believe is not very big that
is only 10% , the reason of this problem can be if a person is doing its investment on its own he or
she think of the problem of being mistaken in the transaction. So there is a need of proper training
to do trading online
Ans.10 At what time do you trade?
INTERPRETATION
45% of the total respondent do trading in office timing while 32% do trading in non office
timing and 23% of the respondents do the trading in free time
Here the people who do the trading in office timing they face the problem of not in the
continuous touch of the stock market, so online trading can be one of the good solution of this
problem.
Ans.11 Introduction of online trading helped to attract the new Investors thus increasing the
trading volumes at Stock Market?

INTERPRETATION
76% of the respondent believe that the introduction of online trading helped to attract the new
customer became the reason to increase the trading volume of the market On the other side 16% of
the respondent believe that it doesn’t affect the trading volume
Ans 12 . What factor would you consider before choosing an account in a brokerage house?
RELIABILITY ANALYSIS OF THE DATA

we calculate the value of cronbach’s Alpha to calculate how reliable the data collected by the
sampling
Reliability Statistics
Cronbach's Cronbach's Alpha Based on Standardized

Alpha Items N of Items
.880 .875 21
we also look for that if the value of cronbach’s Alpha is more than avrage so that data
collected by the sample is showing the habit of the population the data is represening the whole
population we are having the value of cronbach’s Alpha of 21 features that is .880
that is more than good , so here we can say that data is reliable enough to go further analysis
DESCRIPTIVE STATISTICS ANALYSIS OF THE DATA

In the descriptive statistics analysis we calculate the MEAN and STANDERD DEVIATION
Where low mean shows the avrage of the respondent who think that these quality should be in the
product and deviation showing the differnciation in opinion of the respondent Low S.D. means
small differenc in the opinion about the particular factor which should in the product
Descriptive Statistics
Mean Std. Deviation Analysis N

Guidance 1.56 .625 100
Variety of products offered 1.90 .948 100
Time to open an account 1.97 1.029 100
Brokerage charged 2.29 1.175 100
Customer services 2.42 1.182 100
Software 2.35 1.149 100
Research reports 1.88 1.085 100
Efficiency at peak hours 1.91 .986 100
Customer relationship 2.03 1.114 100
Compliance system 1.77 .763 100
Infrastructure 1.90 .823 100
Brand 1.94 .919 100
Trading Calls/sms 2.12 1.131 100
Effective execution 2.18 1.019 100
Regular delivery of contract notes 1.98 1.146 100
Market exposure 2.02 .899 100
Recording confirmation 2.20 .841 100
Access to back office 1.92 1.022 100
Comprehensive stock trading portal 2.47 1.077 100
Employees skill 2.47 1.020 100
Helpline services 1.92 1.041 100
If we do the analysis the data through value, we will find that few features are most important
for the customer. These are Brand, Compliance system, infrastructure, Regular delivery of contract
notes, Efficiency at peak hours, Time to open an account, Variety of products offered, Helpline
services, Guidance, Research reports and Access to back office
The mean of the given component is around 1.5 – 1.99. That is showing that customer are
looking theses component in the product

S.D. of the product features Guidance, Variety of products offered, Efficiency at peak hours,
Brand, Compliance system, infrastructure is less than 1. Here the respondent are not having
different opinion about these component
FACTOR NANLYSIS
In the factor analysis we look for the few component and each component is having 1 or
more than 1 features of the product
Rotated Component Matrix(a)
Component
1 2 3 4 5 6
Guidance -.079 .054 .027 -.141 -.772 -.030
Variety of products offered .815 .183 .272 -.006 .078 .098
TIme to open an account .511 .228 .333 -.091 .559 .014
Brokerage charged .632 .181 .325 -.179 .407 .003
Customer services .793 .122 .145 -.149 .184 .108
Software .843 .109 .114 .140 .020 .151
Research reports .514 .438 -.023 .236 .038 .084
Efficiency at peak hours .104 .721 .189 .121 -.271 -.152
Customer relationship .377 .683 -.120 .160 .116 .294
Compliance system .453 .376 -.090 .014 .126 .403
Infrastructure .734 .210 .140 .226 -.174 .146
Brand .362 .395 .207 .255 -.404 .275
Trading Calls/sms .076 .473 .340 -.043 .089 .292
Effective execution .181 .063 .833 .108 -.052 .017
Regular delivery of contract notes .448 .197 .652 -.045 .076 .167
Market exposure .075 .516 .396 -.043 .120 .484
Recording confirmation .193 -.004 .094 .011 -.040 .835
Access to back office -.283 -.180 .026 .796 -.135 .079
Comprehensive stock trading portal .129 .326 -.050 .668 .311 .117
Employees skill .302 .198 .085 .675 .049 -.190
Helpline services .412 .547 .156 .003 .096 -.083
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser Normalization. a Rotation
converged in 8 iterations.
Component Transformation Matrix
Component 1 2 3 4 5 6

1 .748 .489 .330 .110 .148 .242
2 -.235 .349 -.140 .803 -.389 .086
3 -.233 .235 .381 -.456 -.653 .333
4 .219 -.297 .523 .187 -.347 -.660
5 -.479 .001 .670 .203 .504 .164
6 .233 -.704 .067 .243 -.161 .601
Extraction Method: Principal Component Analysis. Rotation Method: Varimax with Kaiser
Normalization.
If we analyze the given Rotated Component Matrix and Component Transformation

Matrix we will find that there are six component are coming and each of them component include
one or more than 1 features in its own
If we talk of component 1 it include few features which are most important while designing the
product Variety of products offered, Time to open an account, Brokerage charged, Customer
services, Software, Research reports and infrastructure
In component 2 it include four features of the online trading product that is Efficiency at peak
hours, Customer relationship, Market exposure, Helpline services. In component 3 it include four
features of the online trading product that is Effective execution, Regular delivery of contract notes.
In component 4 there are three factor which are most important for the product and they are Access
to back office, Comprehensive stock trading portal, Employees skill
According to component 5 there is only a single feature which is Time to open an account
is important And the component 6 is also having only a single product feature that is Recording
confirmation
.if we gone through the all component of the product we will find that there are few quality or
features which a product like online trading should have
These are Variety of products offered, Time to open an account, Brokerage charged, Customer
services, Software, Research reports.
10.CONCLUSION

The online trading is growing with a rapid pace with the rising level of education among the
customers. The other factors being that the Indian Investor nowadays wants to deal himself in
trading rather than depending upon other middlemen. They also consider the factors like time
saving in doing the online transactions, convenience etc. Although some people feel that online
trading is not secure but the people doing the trading online is happy about the increasing security
concerns among the companies.
The year 2008 has not been so good for the stock market and the Sensex and Nifty has been
dipping and affecting the business negatively for these companies. This is due to the fact that at
these times people do not prefer to open the DMAT and Trading accounts. So the companies have to
reduce their account opening fees to attract more and more customers. Also people trade very less in
the bearish market and the company’s profits against brokerage fees soars downwards. It is also a
found fact that during the bearish market the ratio of online trading becomes very less. Also there is
an intense competition among the companies and the companies come up with new and new
promotion schemes such as discounted and negotiable brokerages, Zero balance accounts, waiving
a/c opening fee and AMC etc. As the internet penetration is growing in India this business holds a
huge potential for growth.
Now if the existing company will have to capture the market they will have to look for the
innovation in their product as well as service mix
The mantra for success in the current situation will be educating the customers about the
benefits of online trading and the amount of ROI that can be generated through it.
11.RECOMMENDATIONS

 The companies should come up with more and more innovative features in their web portals.
 We came to know about most important factor about the product with the help of factor
analysis , so we should go for change the product according to the customer need
 We should also focus upon the value added services. Generally company does claim that if
you will by the product you will get these benefits but company doesn’t provide the services
here. So services always does matter when we talk of ONLINE TRADING
 Company should also look for the problem which customer generally face when they do
trading (like problem of operating properly)
 The customer should be educated regularly regarding the new technologies and techniques
of trading online and also other relevant information.
 The companies should look after to develop more safe and secure ways of transacting
business online.
 The companies should make maximum efforts to detect fraud cases and minimize them.
12.INDUSTRY RELEVANCE

My research project is Quite Relevant to the Investment Industry. The following things can be
useful for IL&FS investsmart (HSBC group)
 IL&FS investsmart will be able to know their market position with other competitors.
 The company will also get to know some areas of improvement which came forward
through my research.
 The changing perception of Indian consumers and their requirements will also be made
clear.
 The company will be able to do the effective segmentation of their market based on the
research analysis.
 The investment companies at large will be able to understand how to keep themselves
abreast with the changing technology.
13.LEARNINGS

The two month summer training was a good experience for me to learn the practical aspects
of the corporate life. Some of the learning of mine is:
 I improved my communication skills by learning how to talk to different kind of people as it

requires the different approach to handle each person.
 I learnt how to manage a team of member to achieve a goal
 I learnt to how handle the pressure under difficult situations.
 I became aware about various aspects of working of stock exchange
 I learnt few things about back office work
 I learnt about the consumer perception about the stock market and online trading.
 Patience was the thing I learnt the most as I have to approach the clients who were to be
explained same things again and again while approaching or calling them at regular
Intervals.
14. BIBLIOGRAPHY

 httpeconomictimes.indiatimes.comarticleshow4758236.cms
 http business.mapsofindia.comonline-tradingicici.html
 http business.mapsofindia.comonline-tradingkotaksecurities.html
 www.investsmart.in/ilfs-webapp/RetailOfferings/RetailIndex.jsp
 http business.mapsofindia.comonline-tradingindiabulls.html
 www.investsmart.in/ilfs-webapp/InstitutionalOfferings/InstitutionalIndex.jsp
 Httpin.reuters.comarticlepersonalFinanceidINIndia-40914120090709pageNumber=2
 http://EzineArticles.com/?expert=Tanya_Lobo
 www.investsmart.in/ilfs-webapp/Home/AboutUs/CompanyProfile.jsp
 httpbusiness.mapsofindia.comonline-tradingbest-online-trading.html
 www.the financialexpress/home/growth of market.htm
 www.rediff.com/money/2005/aug/31trading.htm
 www.reliancemoney.com/Aboutus.aspx
 www.icicidirect.com
 www.kotakstreet.com
 www.bseindia.com
 www.nseindia.com
 www.bseindia.com
 www.sebi.co.in
QUESTIONAIRE

(To understand the perception of customer toward online trading)
NAME
_______________________________________________________________________
AGE ______________________________ GENDER
____________________________
MOBILE
_______________________________________________________________________
OCCUPATION
_______________________________________________________________________
Q.1 What is your education qualification?

 higher Secondary
 senior secondary
 Graduate
 Post Graduate
 professional degree holder
Q.2 What is your annual income?

 Below 100000
 1,00,000 – 2,00,000
 2,00,000 – 3,00,000
 3,00,000 – 4,00,000
 Above 4,00,000
Q.3 What percentage of your monthly household income could be available for investment?
 Less than 5%
 5% to 10%
 10% to 15%
 15% to 20%
 More than 20%
Q.4 Where do you often invest your money?

 Equity
 Mutual fund
 Insurance
 Term deposits
 Others

Q.5 What is the primary objective of your investment?
 Capital appreciation
 Source of income
 Retirement planning
 Wealth preservation
 Education funding /others
Q.6 Do you owe a Computer?

 Yes
 No
Q.7 To operate a computer is easy for me

 Strongly agree
 Agree
 Can’t say
 Disagree
 Strongly disagree
Q.8 online trading is a secure way of trading

 Strongly agree
 Agree
 Can’t say
 Disagree
Q.9 online trading is easy and fast way of trading?

 Strongly agree
 Agree
 Can’t say
 Disagree
Q.10 At what time do you trade?

 Office Hours
 Non Office Hours

 Free Time
Q.11 Introduction of online trading helped to attract the new Investors thus increasing the
trading volumes at Stock Market?
 Strongly agree
 Agree
 Can’t say
 Disagree
Q.12 What factor would you consider before choosing an account in a brokerage house ?
Tick the appropriate option according to your choice on the scale of 1 to 5

(Where 1 is Most important to 5 for least important)
S.NO. PRODUCT ATTRIBUTES

1 Variety of products offered 1 2 3 4 5
2 Time to open an account 1 2 3 4 5
3 Brokerage charged 1 2 3 4 5
4 Customer services 1 2 3 4 5
5 Software 1 2 3 4 5
6 Research reports 1 2 3 4 5
7 Efficiency at peak hours 1 2 3 4 5
8 Customer relationship 1 2 3 4 5
9 Compliance system 1 2 3 4 5
10 Infrastructure 1 2 3 4 5
11 Brand 1 2 3 4 5
12 Trading Calls/sms 1 2 3 4 5
13 Effective execution 1 2 3 4 5
14 Regular delivery of contract 1 2 3 4 5
notes
15 Market exposure 1 2 3 4 5
16 Recording confirmation 1 2 3 4 5
17 Access to back office 1 2 3 4 5
18 Comprehensive stock trading 1 2 3 4 5
portal
19 Employees skill 1 2 3 4 5

20 Helpline services 1 2 3 4 5
21 Guidance 1 2 3 4 5

Growth of Indian Online Trading Industry

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_________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

INSTITUTE OF TECHNOLOGY AND SCIENCE,

SUMMER INTERNSHIP PROJECT REPORT

“GROWTH OF INDIAN ONLINE

IL&FS INVESTSMART SECURITIES LIMITED

I INDIA’S FINANCIAL MULTIPLEX I

“GROWTH OF INDIAN ONLINE TRADING INDUSTRY”

RAHUL KUMAR AGARWAL

DR. KAVITA SRIVASTAVA

INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 2|Page

INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 3|Page

INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 4|Page

INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 5|Page

up with innovative offerings to capture the untapped market.

INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 6|Page

To determine the “GROWTH OF INDIAN ONLINE TRADING INDUSTRY”

SCOPE OF THE STUDY

INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 7|Page

1. To determine the growth and future of online trading industry in India

The research methodology for the project completed in two phases:

First Phase is the collection of Secondary Data:

Second Phase is Collection of Primary Data and Analysis:

INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 8|Page

Exploratory and descriptive research

INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 9|Page

LIMITATION OF THE STUDY

The various limitations of the study are:

INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 10 | P a g e

IL&FS Investsmart securities Limited (IISL) is one of India’s leading financial

Institutional expertise, combined with a thorough understanding of the financial markets

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INSTITUTE OF TECHNOLOGY AND SCIENCE, GHAZIABAD 12 | P a g e

PROMOTER OF THE COMPANY

HSBC ACQUIRED 93.86 % OF IL&FS INVESTSMART IN INDIA

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Mutual Fund Advisory Services

Portfolio Management Services (PMS)

IPO Advisory & Distribution Services

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key service features include the following:-

 Risk management solutions for all

We also offer comprehensive trading solutions through our website www.investsmart.in

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NRI Product offerings

Complete control of equity Customized Solutions to meet NRI

Additional NRI Product offerings

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 Initial Public Offering (IPOs)

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 Pre marketing the placement / issuance

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 Trade on NSE & BSE

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Browser Type Microsoft Internet explorer 6.0 or higher

NSE& BSE Access -

Fully Customizable display –

Integrated Accounts (Bank. Demat & Trading) –