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CHAPTER 1
INTRODUCTION
1.1 General Introduction
What is Stock Market
A stock market is a market for the trading of company stock, and derivatives of same;
both of these are securities listed on a stock exchange as well as those only traded
privately.
Definitions of Stock Market
Where stocks and shares are bought and sold.
A general term used to refer to the organized trading of securities through various
exchanges and through the over-the-counter market. A "stock exchange" is a
specific form of a stock market, a physical location where stocks and bonds are
bought and sold, such as the Bombay Stock Exchange, NASDAQ or American
Stock Exchange.
This market can be split into two main sections: the primary and secondary market. The
primary market is where new issues are first offered, with any subsequent trading going
on in the secondary market.
PRIMARY MARKET
A market that issues new securities on an exchange. Companies, governments and other
groups obtain financing through debt or equity based securities. Primary markets are
facilitated by underwriting groups, which consist of investment banks that will set a
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beginning price range for a given security and then oversee its sale directly to the
investors.
Some of the important features of Primary Markets are as follows:
It is the market that deals with new long-term securities, not the existing ones.
That is, the securities are sold for the first time in the Primary Market.
Here, the securities are sold by the company directly to the investors. However, it
is not so in the Secondary Market.
New security certificates are issued to the investors once the company receives
money from them.
The funds from selling the securities are used by companies for starting new
business or expanding the existing ones.
It facilitates capital building in the economy. Thus, affecting the economic sector
to a great extent.
It doesn't include other new long-term external finance sources, like loans from
financial institutions.
Only the original holder of the securities has the authority to redeem the sold
securities or issues.
The main source of any updates about the upcoming shares is the Primary Market. In
Primary Market, the securities can be issued through any of the following methods:
Initial public offering: It refers to the initial sale of securities by a private
company to the public sector. Generally small and young companies are a part of
Primary Market. However, large-scale private companies that desire to be
publicly traded also become a part of this market.
Rights issue (for existing companies): It refers to a special form of shelf offering
or shelf registration. Under these rights, the existing shareholders enjoy the
freedom to buy a specified number of new shares from the firm at a particular
2
price and time. It is the opposite of Initial public offering where shares are issued
to the general public through stock exchange.
Preferential issue: Issue of shares kept aside for the designated buyers. For
example, the employees of the issuing company.
The investment banks play key role in Primary Market. They decide the starting
price range for a particular security and then direct its sale to investors.
SECONDARY MARKET
A stock that is considered riskier than blue chips because it has a smaller market
capitalization.
1.2 INDUSTRY PROFILE
A. ORIGIN AND DEVELOPMENT OF INDIAN STOCK MARKET
The origin of the stock market in India goes back to the end of the eighteenth century
when long-term negotiable securities were first issued. However, for all practical
purposes, the real beginning occurred in the middle of the nineteenth century after the
enactment of the companies Act in 1850, which introduced the features of limited
liability and generated investor interest in corporate securities.
An important early event in the development of the stock market in India was the
formation of the native share and stock brokers 'Association at Bombay in 1875, the
precursor of the present day Bombay Stock Exchange. This was followed by the
formation of associations/exchanges in Ahmedabad (1894), Calcutta (1908), and Madras
(1937). In addition, a large number of ephemeral exchanges emerged mainly in buoyant
periods to recede into oblivion during depressing times subsequently.
Stock exchange means any body of individuals, whether incorporated or not, constituted
for the purpose of regulating or controlling the business of buying, selling or dealing in
3
securities. These securities include:
(i) Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a like
nature in or of any incorporated company or other body corporate;
(ii) Government securities; and
(iii) Rights or interest in securities.
The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd
(NSE) are the two primary exchanges in India. In addition, there are 22 Regional Stock
Exchanges. However, the BSE and NSE have established themselves as the two leading
exchanges and account for about 80 per cent of the equity volume traded in India. The
NSE and BSE are equal in size in terms of daily traded volume. The average daily
turnover at the exchanges has increased from Rs 851 crore in 1997-98 to Rs 1,284 crore
in 1998-99 and further to Rs 2,273 crore in 1999-2000 (April - August 1999). NSE has
around 1500 shares listed with a total market capitalization of around Rs 9, 21,500 crore.
The BSE has over 6000 stocks listed and has a market capitalization of around Rs 9,
68,000 crore. Most key stocks are traded on both the exchanges and hence the investor
could buy them on either exchange. Both exchanges have a different settlement cycle,
which allows investors to shift their positions on the bourses. The primary index of BSE
is BSE Sensex comprising 30 stocks. NSE has the S&P NSE 50 Index (Nifty) which
consists of fifty stocks. The BSE Sensex is the older and more widely followed index.
The key regulator governing Stock Exchanges, Brokers, Depositories, Depository
participants, Mutual Funds, FIIs and other participants in Indian secondary and primary
market is the Securities and Exchange Board of India (SEBI) Ltd.
Market Basics
Electronic trading
Exchanges in India
Index
Execute an order
Need a broker
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Contract note
Split
Buy Back
Settlement cycle
Rolling settlement
Short selling
Auction
Separate market for auctions
If the shares are not bought in the auction
Bad Delivery
Stock & Exchange Board of India
REGULATION OF BUSINESS IN THE STOCK EXCHANGES
Under the SEBI Act, 1992, the SEBI has been empowered to conduct inspection of stock
exchanges. The SEBI has been inspecting the stock exchanges once every year since
1995-96. During these inspections, a review of the market operations, organizational
structure and administrative control of the exchange is made to ascertain whether:
the exchange provides a fair, equitable and growing market to investors.
the exchange's organization, systems and practices are in accordance with the
Securities Contracts (Regulation) Act (SC(R) Act), 1956 and rules framed there
under:-
the exchange has implemented the directions, guidelines and instructions issued
by the SEBI from time to time.
Importance of stock Markets:-
Accelerate Economic Growth.
Sources for Companies to raise Money.
Investors.
Brokers.
Technological Development.
5
B.GROWTH AND PRESENT STATUS OF THE INDIAN STOCK
MAREKT
The financial services sector contributed 15 per cent to India's GDP in FY09, and is the
second-largest component after trade, hotels, transport and communication all combined
together, as per the Banking & Finance Journal, released by an industry body in August
2010.
Financial services, banking, insurance and real estate sectors rose by 8 per cent during the
quarter ended march 2011.
There are a total of 1,732 foreign funds registered with the Securities & Exchange Board
of India (SEBI).
Overseas funds infused US$ 4.78 billion in the capital market in November 2010, taking
the year-to-date total to US$ 39 billion. The total inflows of foreign institutional
investors (FIIs) as on December 2, 2010 have crossed the record US$ 38.76 billion mark.
According to data available with SEBI, FIIs have made investments worth US$ 4.11
billion in equities and invested US$ 667.71 million into the debt market.
As on November 26, 2010, India's foreign exchange reserves totalled US$ 293.9 billion,
according to the Reserve Bank of India's (RBI) Weekly Statistical Supplement.
According to Venture Intelligence, a research firm, private equity investment in India
totalled US$ 6.57 billion in the first three quarters of 2010, which is more than double the
US$ 2.5 billion invested during the same period last year.
As of December 7, 2010, as many as 114 private equity investments have come from
domestic funds compared to 126 foreign ones, according to data available with Venture
Intelligence. In terms of value, PE firms promoted by Indians invested US$ 1,751 million
so far this year, as against US$ 4,377 million put in by foreign fund investments,
6
according to Venture Intelligence.
The study said the main market for PF in 2009 was the domestic Indian market, which
raised US$ 30 billion, accounting for 21.5 per cent of the global PF market. This was up
from US$ 19 billion in 2008.
Over the recent years, there has been a considerable growth in Indian market
which has led to high Gross Domestic Product (GDP) with an average annual growth of
around 6 to 7%. In the financial year 2008-09, the factor cost of the GDP was around 6.7
%. To keep up this favorable growth, the government is also taking steps. The present
Indian Prime Minister, Dr Manmohan Singh, has stressed that the government is taking
various steps to make the yearly economic growth go up to 9 %. In fact, the World Bank
too has projected that the market growth rate of India will reach around 8 % in the year
2010.
Stock markets
Market capitalization of India as a proportion of world market cap has risen to a record
high. According to data sourced from Bloomberg, the country's market capitalization as a
proportion of the world market cap is currently 3.34 per cent. India's current market-cap
is US$ 1.55 trillion as compared with world market-cap of US$ 46.5 trillion. This is
higher than 3.12 per cent share India enjoyed at the market peak of January 2008.
Twenty Indian companies raised a significant US$ 1.2 billion through initial share sale
offers in the first three months of 2010, a period when global IPOs were worth over US$
53 billion, according to a report by global consultancy firm Ernst & Young. With 20
IPOs in the first quarter of the year, India had the third largest number of IPOs across the
globe.
Overall, the primary market has witnessed robust inflows from FIIs this year and
cornered around 27 per cent of equity market inflows. Of the total FII investment of US$
28.4 billion, about US$ 7.7 billion have come into the primary markets, according to
SEBI data.
7
Fund raising by way of initial public offerings (IPOs), follow-on public offerings (FPOs)
and qualified institutional placements (QIPs) have totalled a record US$ 19.49 billion as
of November 17, 2010, as per data from SMC Global Securities, beating the previous
high of US$ 14.51 billion in calendar year 2007.
C. FUTURE OF THE INDIAN STOCK MARKET
Now people are busy searching about 2011 Indian Stock Market Outlook, Sensex
and Nifty Prediction for 2011, Economic Outlook for 2011, Best Sectors for 2011, etc.
Predictions for 2012 : India will lead with 9% GDP growth.
Stock markets in India is likely to stabilize and will remain at current level for the
next 2 – 3 months. Before end of 2011 markets are likely to reach new highs. BSE
Index will reach around 22000 before end of 2011.
This year India has received good monsoons which will help India to achieve 9 %
GDP growth this year.
FIIs are bullish on Indian and Chinese economy. They consider India as one of
the most favorite destinations.
In near future market may remain flat or may correct by around 800 – 1000 points
(on Sensex).
Small investors should hold investments at current level.
Currently, the capital market in witnessing volatility and process are edging down
on account of fears of impending interest rates hikes due to global commodity
supply shock induced spiraling inflation and this might have a negative impact on
stock prices as high input costs would erode corporate profit margins. However,
further declines would improve valuations and make equity buying attractive
Infrastructure and cement, engineering and metal stocks are likely to remain FII’s
and DII’s hot favorites.
8
Falling prices may not be good for traders, but in stock market one's loss is
somebody else's profit. Fallen down prices opens up opportunity for Investors to
look out for the good, top and best sectors to Invest in 2011-2012 which
complements the growing Indian Economy.
9
CHAPTER 2
PROFILE OF THE ORGANISATION
2.1 ORIGIN OF THE ORGANIZATION
Bonanza is established in the year 1994, Bonanza developed into one of the largest
financial services and broking house in India within a short span of time. Today, Bonanza
is the fastest growing financial service with 5 mega group companies under it. With
diligent effort, acknowledged industry leadership and experience, Bonanza has spread its
trustworthy tentacles all over the country with pan-India presence across more than 1611
outlets spread across 550 cities.
With a smorgasbord of services across all verticals in finance, Bonanzas offers you the
perfect blend of financial services right from Equity Broking, Advisory Services that
cover Portfolio Management Services, Mutual Fund Investments, Insurance to
exceptional Depository Services.
Bonanza believes in being technologically advanced so that we can offer you – our tech-
savvy customers - an integrated and innovative platform to trade online as well as offline.
Besides, we also have one of the finest and most dedicated research teams with experts
who have in-depth, unsurpassed knowledge of the market place. All this and more makes
Bonanza the perfect place for you to take your first step in the direction of financial
success.
Bonanza is affiliated with the best in the industry – right from the NSE, BSE MCX,
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MCX-SX to CDSL, NSDL, etc. These affiliations prove our worth in the market and
make Bonanza a name to reckon with.
2.2 GROWTH AND DEVELOPMENT OF THE
ORGANIZATION
It provides an extensive smorgasbord of services in equity, commodities, currency
derivatives, wealth management, distribution of third party products etc. Keeping in par
with the modern tech-savvy world , Bonanza makes an integrated and innovative use of
technology; it also enables its clients to trade online as well as offline and the strategic
tie-ups with the latest technology partners has earned Bonanza this prestigious place in
one of the top brokerage houses in the country. Client -focused philosophy backed by
memberships of all principal Indian Stock and Commodity Exchanges makes Bonanza
stand apart from its competitors and a preferred service provider in the industry for value-
based services.
To add to our ever-growing achievements, a study by Dun and Bradstreet has
rated Bonanza as the SIXTH largest broking house in terms of equity terminal listings in
the country. If this is not enough, Bonanza Portfolio Ltd was recently nominated amongst
the Top 3 Retail Financial Advisors of the country in an event conducted by CNBC-
TV18 and OptiMix Financial Advisor Awards 2008. Also Bonanza has been awarded by
BSE the "Major Volume driver for the year 2004-2005, 2006-2007 and 2008-2009".
ACHIEVEMENTS
1. Top Equity Broking House in terms of branch expansion for 2008*.
2. 3rd in terms of Number of Trading Accounts for 2008*.
3. 6th in terms of trading terminals in for two consecutive years 2007- 2008*.
4. 9th in terms of Sub Brokers for 2007*
5. Awarded by BSE 'Major Volume Driver 04-05, 06-07, 07-08’.
6. Nominated among the Top 3 for the "Best Financial Advisor Awards '08" in the
category of National Distributors - Retail instituted by CNBC-TV18 and OptiMix.
* As per the survey by DUN & BRADSTREET.
11
CORPORATE TIE UPS
The company has Corporate Tie ups with Birla Sunlife ,Bajaj Allianz, ICICI Prudential,
SBI , Aviva , Kotak Mahindra and Reliance for Life Insurance and General Insurance.
In General Insurance, Bonanza provides Insurance for Motor, Health, Travel,
Housekeeper, Shopkeeper, Marine, Personal and Group Insurance.
2.3 PRESENT STATUS OF THE ORGANIZATION
There are certain benefits which defines the status of the BONANZA
1 Secure Order by Voice Tool Dial-n-Trade.
2 Automated Portfolio to keep track of the value of your actual purchases.
3 24x7 Voice Tool access to your trading account.
4 Personalized Price and Account Alerts delivered instantly to your cell phone & email
address.
5 Special Personal Inbox for order and trade confirmations.
6 On-line customer service via web chat.
7 Anytime Ordering
SERVICE PROVIDED BY BONANZA
1. Mutual Funds
2. Insurance
Life Insurance
General Insurance
3. PMS
4. Share Broking
5. IPO
6. Currency Derivatives
7. Share Broking
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8. Commodity Broking
2.4 Functional departments of the organization
Administration:
The role of this department is to provide all the assistance regarding anything to the all
other departments which they need to deliver their efforts more efficiently in the interest
of the company.
Human resource department:
The role of HR department is to recruit the efficient workers for the company, and to
keep eye on the grievances, problems which the employees are facing in performing their
work. This department also takes care of various works like calculating salaries, leave
status, attendance of employees, etc.
Finance:
As the name suggests this department is concerned with the all finance related matters of
the company be it the salary payment or the financing the various requirements of the
business.
Talent and Knowledge Management:
The role of this department is to take care of all the activities of the various production
departments. This department is responsible for organising the various trainings which
are needed by the employees to work with more efficiency.
Quality Control:
The work of this department is to make sure that the services and information provided
by the all three production department is up to the quality measure set by the clients. This
department randomly checks the services and information to make sure the company is
standing on client’s expectations and is truly reliable.
13
Software:
This department deals wit the software side of the company. All the three production
departments use various software design by the software department to do work more
easily and efficiently. this department keeps on updating the software so that work can be
done in time.
2.5 ORGANIZATION STRUCTURE & ORGANIZATION
CHART
14
Corporate Hierarchy
The users of the trading system can logon as either of the user type. The
15
Significance of each type is explained below:
Corporate Manager: The corporate manager is a term assigned to a user placed at the
highest level in a trading firm. Such a user receives the End of Day reports for all
branches of the trading member. The facility to set Branch Order Value Limits and User
Order Value Limits is available to the corporate manager.
Branch Manager: The branch manager is a term assigned to a user who is placed under
the corporate manager. The branch manager receives End of Day reports for all the
dealers under that branch. The branch manager can set user order value limit for each of
his branch.
Dealer: Dealers are users at the lower most level of the hierarchy. A dealer can view and
perform order and trade related activities only for oneself and does not have access to
information on other dealers under either the same branch or other branches.
2.6 Market Profile Of the Organisation
REASONS TO CHOOSE Bonanza Portfolio LTD .
EXPERIENCE
Bonanza Portfolio ltd has more than eight decades of trust and credibility in the Indian
stock market. In the Asia Money broker’s poll held recently, SSKI won the ‘India’s best
broking house for 2004 award. Ever since it launched Sharekhan as its retail broking
division in February 2000, it has been providing institutional-level research and broking
services to individual investors.
TECHNOLOGY
With our online trading account you can buy and sell shares in an instant from any PC
with an Internet connection. You will get access to our powerful online trading tools that
will help you take complete control over your investment in shares.
ACCESSIBILITY
Sharekhan provides ADVICE, EDUCATION, TOOLS AND EXECUTION services for
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investors. These services are accessible through our centers across the country (over
250 locations in 123 cities), over the internet (through the website www.sharekhan.com)
as well as over the voice tool.
KNOWLEDGE
In a business where the right information at the right time can translate into direct
profits, you get access to a wide range of information on our content-rich portal,
sharekhan.com. You will also get a useful set of knowledge-based tools that will
empower you to take informed decisions.
CONVENIENCE
You can call our Dial-N-Trade number to get investment advice and execute your
transactions. We have a dedicated call-centre to provide this service via a toll free
number from anywhere in India.
CUSTOMER SERVICE
Our customer service team will assist you for any help that you need relating to
transactions, billing, Demat and other queries. Our customer service can be contracted via
a toll-free number, email or live chat on sharekhan.com.
17
CHAPTER 3
DISCUSSION ON TRANNING
3.1 My Work Profile (Role and Responsibility)
I worked with Bonanza Portfolio Ltd. as a Management Trainee. During my training
period, I was not confined to any particular work and responsibility rather I was given an
exposure of all departments’ and operations like Depository Department, Marketing and
Sales Department, Branch Coordinating Department, Accounts & Finance Department,
Trading Department, etc. The exposure during the training period was vital since I got the
knowledge about motivation techniques, means of controlling power, financial services
sector etc.
During my training period, I made my project under the guidance of the Incharge
Manager and I completed the same to the best of my ability. I decided to choose some
stocks listed in NSE for conducting the fundamental analysis. I had sorted out all my
queries after having the discussions with the concerned staff members and Incharge
Manager of the training. I noted all important figures and facts about financial market and
updated my Project Report accordingly.
Achievements: The main achievement which I gained during my entire training was the
knowledge about the financial market and most importantly, the technical and
fundamental analysis which gave me a great exposure. I had successfully completed my
training with the support provided to me by the Incharge Manager and the MD of the
company.
Key Learning's: In my entire training period, I had learnt how to control the managerial
work existing in all departments by practically implementing my skills and knowledge.
18
The cordial support by the staff members and the Incharge Manager is a prerequisite to
work smoothly in an organization. I learnt how to analyze the equities for investing
money through both the methods of analysis i.e. technical and fundamental analysis. I
had learnt alot more, the department-wise details of which are described in following
points:-
DEPOSITIORY OPERATIONS
During my training, the complete process of Depository Operations was taught to me.
The following is the list of the tasks which I had learnt:-
Opening Demat Accounts of the Investor
Maintenance of beneficial holdings
Dematerialization
Stock Lending and Borrowing
TRADING DEPARTMENT AND RMS OPERATIONS
I learnt the whole process of Trading Department during my training period. The
following are the tasks included in Trading Department:
Practical knowledge of the trading softwares. ( Diet ODIN, NEAT )
Trading for different types of market. ( NSE, BSE, F&O, NCDEX & MCX and
Currency trading)
Proper telecon Interaction with clients regarding net position, trading, etc.
Giving suggestion on Buying or Selling of Stocks to clients for better profits.
Observing the clients’ thought process.
Control over the client trade with RMS.
Locking of their trading limit according to their token amount.
RMS functions.
ACCOUNT DEPARTMENT AND BILLING DEPARTMENT
19
I learnt the whole process of Trading Department during my training period. The
following are the tasks included in Trading Department:
Billing work.
Dispatch trading statement to client on quarterly basis or according to client
preference.
Lock the limit of client with the help of RMS.
Fix a Brokerage before start the trading.
Get money back from client on their credit or extra limit with help of recovery
department.
MARKETING & SELLING DEPARTMENT
I learnt the whole process of Trading Department during my training period. The
following are the tasks included in Trading Department:
Handling of Promotional work and making more promotion strategies.
Selling strategy.
Determined target for Branches & Franchises for Demat Account and Brokerage.
Development of more Branches or Franchises.
Corporate Tie-ups.
Strategy development for expansion of an organization.
PORTFOLIO MANAGEMENT DEPARTMENT
Portfolio management is very difficult, tedious and requires very strong analytical skills.
It includes the best combination of investment through the working knowledge of
Portfolio Manager. I made one of my client’s profile under the guidance of Portfolio
Manager. Portfolio includes the continuous watch on invested money and predetermined
the certain level of return on investment. The tasks which are included in Portfolio
Management Department are as follows:-
Making of best portfolio for Client’s money invested in.
20
Measurement of the risk involved in the investment.
Diversified risk with a maximum return on investment.
Regular watch on the portfolio.
Calculate the return on invested money which may be positive or negative.
ANALYSIS DEPARTMENT
Analysis department includes both technical and fundamental analysis. Technical
analysis refers to the chart analysis and daily fluctuation in the share price. Analyst
makes intraday calls, weekly and monthly calls on buying and selling of share with the
help of Technical or Chart Analysis. Fundamental analysis refers to the analysis of a
company or a sector with the help of Economic, Industrial and Company Analysis.
Analyst makes the report on a stock or sector for a certain period like this auto sector will
decrease from the current level after 3 months or same as a Company’s stock also.
Analysis Department includes the following features:-
Make intraday calls & reports on the stock with a target and stoploss with the
help of chart analysis and technical indicators.
Fundamental analysis on stocks.
Give financial advisory services to the clients.
Financial Analyst work.
Calculation of return on stocks
Analyze the performance of share price.
TOOLS AND TECHIQUES
I gained the knowledge about the stock market as a tool and technique. The following are
the tools and techniques:
Knowledge about operating any type of computer and process to learn any new
software or technology.
My communication skills.
My knowledge about share market supported me in my training. With the help
analysis and portfolio management, work was easy to operate & understand.
21
I used Technical indicators as my techniques in technical analysis.
Fundamental analysis was also used as a technique for stock analysis.
Portfolio Theory or Model (Markowitz, Sharpe’s Index model, CAPM model,
arbitrage price theory )
Challenges Faced:
Busy schedule of training period and got short time to learn. I had to wait the
whole day for learning process of technical or fundamental analysis.
There was as such no operational work in the head office.
Technical analysis was quite risky so learning the same was a tedious job.
Sometimes, I used to generate the intraday calls with the help of the chart which
was objected by my Manager.
Reasons for Success:
The main reason for the successful completion of this training is my dedication &
determination of work, passion, cordial relations with all staff members and assistance
being provided by the Incharge Manager of the training.
Project Detail
“This study suggest that people are reluctant while investing in stock market due to lack
of knowledge”
The Project is to analyze the equities to invest the money for getting the higher return on
investment in future. The Report is meant for the investors who want to invest their
money in equities. But they should analysis the securities before investing the money as
the money plays a vital role in everybody’s life. I chose this title because I wanted to
analysis the equities from investor’s point of view so that they can get good returns in
future. Also, wanted to do the fundamental and technical analysis of securities through
the various theories, able to understand the fluctuation and performance of stocks and
22
also known the factors that affect the fluctuation of stock prices in the Indian Stock
Markets. Through this project, I was also able to understand, what are the positive and
strong points of our Company ( Bonanza portfolio Ltd.), on the basis of which we came
to know what could be the basis of pitching to a potential client. I also gave suggestions
to the company, what improvements could be done for our products & services.
Fundamental and technical analysis go hand in hand and compliment with each other.
Since all the investors in the stock market want to make the maximum possible profits,
they just can’t afford to ignore the fundamental or technical analysis.
Team: This is my solo project assigned by project guide and supported by the all staff
members of the Head Office. I did my analysis with the Finance Manager.
Duration: The time was very crucial factor in making the Project Report. The training
was for 69 days so I spent as much as time to learn from the internship and prepare this
report to share my golden time with you.
Key Deliverables: The company was expecting me to give my 100% dedication for
making this project, sorting out the queries about project to the best extend feasible and
submits a detailed Report accordingly at the Head Office.
23
CHAPTER 4
STUDY OF THE SELECTED RESEARCH
PROBLEM
4.1- Statement of research problem
NECESSITY OF DEFINING THE PROBLEM
A research problem properly is a prerequisite for any study and is a step of the highest
importance. In fact, formulation of a problem is often more essential than its solution. It
is only on careful detailing the research problem that we can work out the research design
and can smoothly carry on all the consequential steps involved while doing research. A
common proverb is “a problem clearly stated is a problem half solved”: This statement
signifies the need for defining a research problem. The problem to be investigated must
be defined unambiguously for that will help to discriminate relevant data from the
irrelevant ones. A proper definition of research problem will enable the researcher to be
on the track whereas an ill-defined problem may create hurdles. Defining
TECHNIQUE INVOLVED IN DEFINING A PROBLEM
A brief description of all these points will be helpful.
1) Statement of the problem in a general way: First of all the problem should be stated
in a broad general way, keeping in view either some practical concern or some scientific
or intellectual interest. For this purpose, the researcher must immerse himself thoroughly
in the subject matter concerning which he wishes to pose a problem.
2) Understanding the nature of the problem: The next step in defining the problem is
to understand its origin and nature clearly. The best way of understanding the problem is
to discuss it with those who first raised it.
24
3) Surveying the available literature: All available literature concerning the problem at
hand must necessarily be surveyed and examined before a definition of the research
problem is given. This versan means that the researcher must be well cont with relevant
theories in the field, reports and records as also all other relevant literature.
4) Developing the ideas through discussions: Discussion concerning a problem often
produces useful information. Various new ideas can be developed through such an
exercise. Hence, a researcher must discuss his problem with his colleagues and others
who have enough experience in the same.
5) Rephrasing the research problem: Finally, the researcher must sit to rephrase the
research problem into a working proposition. Once the nature of the problem has been
clearly understood, the environment (within which the problem has got to be studied) has
been defined, discussions over the problem have taken place and the available literature
has been surveyed and examined, rephrasing the problem into analytical or operational
terms is not a difficult task.
4.2 Statement of research objective
Objective of the Research
The objective behind this exercise is to get an in depth knowledge of the financial sector.
This proposal is prepared with some objectives which are stated below:
To gain an in depth knowledge of Indian mutual fund industry.
To get an exposure of the real working environment in the corporate sector.
To have a better understanding of the investment options available.
To learn and understand the behavior exhibited by individual consumer in the course
of making an investment.
25
Acquire knowledge of financial terminologies and the financial products.
Which option is better to do trading i.e. online or offline
4.3- Research design and methodology
RESEARCH METHODOLOGY
OBJECTIVES:
To study about the stock market industry.
To study the approach of investors towards online trading..
To study the behaviour of the investors whether they prefer trading in the share
market.
SCOPE OF THE STUDY:
Subject matter is related to the investor’s approach towards the online trading in
the share market
People of age between 20 to 60
Area limited to Delhi.
Demographics include names, age, qualification, occupation, marital status and
annual income.
STEPS OF RESEARCH DESIGN:
Define the information needed:- This first step states that what is the
information that is actually required. Information in this case we
require is that what is the approach of investors while investing their
money in mutual funds and ulips e.g. what do they consider while
26
deciding as to invest in the share market.. Also, it studies the extent to
which the investors are aware of the various costs that one bears while
making any investment. So, the information sought and information
generated is only possible after defining the information needed.
Design the research:- A research design is a framework or
blueprint for conducting the research project. It details the procedures
necessary for obtaining the information needed to solve research
problems. In this project, the research design is explorative in nature.
Specify the scaling procedures:- Scaling involves creating a
continuum on which measured objects are located. Both nominal and
interval scales have been used for this purpose.
Construct and pretest a questionnaire:- A questionnaire is a
formalized set of questions for obtaining information from
respondents. Where as pretesting refers to the testing of the
questionnaire on a small sample of respondents in order to identify
and eliminate potential problems.
Population
All the clients of Bonanza and the regular employees and also the person
in the various market from where I have collected the data, who are
investing money in Share market.
Sample Unit:
Investors and non-investors.
Sample Size:
This study involves 104 respondents.
Sampling Technique:
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The sample size has been taken by non-random convenience sampling
technique.
Data Collection:
Data has been collected both from primary as well as secondary sources as
described below:
Primary sources
Primary data was obtained through questionnaires filled by people
through direct communication with respondents in the form of Interview.
Secondary sources
The secondary sources of data were taken from the various websites ,
books, journals reports, articles etc. This mainly provided information
about the mutual fund and ulips industry in India.
LIMITATIONS :
No study is free from limitations. The limitations of this study can be:
Sample size taken is small and may not be sufficient to predict the results with
100% accuracy.
The result is based on primary and secondary data that has it’s own limitations.
The study only covers the area of Chandigarh that may not be applicable to other
areas.
RESEARCH METHODOLOGY
Research Methodology is the way to systematically solve the Research Problem is done
scientifically. In it we study the various steps that are generally adopted by researcher in
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studying his logic behind them. It was quite hard to collect primary data by meeting each
individual and interview him/her so I have collected primary data with the help of
questionnaire. Secondary data was also available to get information about the study. All
the executives and official person were quite helpful and provided full support.
Data was collected in the following manner:
Interacting with some of the customers of Bonanza
By questionnaire seeking information
Interacting with the employees of Bonanza
Primary Data
Questionnaire seeking information
Interaction with the employees of Sharekhan and with the customer of Sharekhan
Secondary Data
There are following things that have been the source of secondary data:
Journal
Magazines
Manual of Bonanza
Welcome kit of Bonanza
SAMPLING PLAN
Methodology for Market Research
I divided the entire city into zones and drew out samples out of each zone. The size of
samples drawn from each zone depended on the prospective ness of the particular area.
For e.g., if a particular research area consisted of Offices then the sample size would
obviously be higher than an area like Shopping mall or PVR. This is because Office
employees constitute the service sectors that are the active investors of today. Also, the
office areas consist of people from the business class who have always been in the hunt
29
for quick money, not to forget that smart and timely investment in the share market can
yield to enormous returns.
After dividing the city into zones, the Target audience was probed using Interviews and
questionnaires. These were later analyzed to draw out conclusive results.
The Research Area Comprised of the following places:
Zone Areas Covered Sample Size
East Karkarduma 14
West Punjabi Bagh 24
North Delhi University 6
South Vasant Kunj 25
Methodology for Customer Acquisition
The leads for customer acquisition primarily came from the questionnaires filled up by
prospective customers. Apart from these customers were also pitched through personal
references and contacts. Moreover the organization takes every possible effort in order to
spread mass awareness. As a result of this publicity campaign, influenced prospective
customers approach the organization. There are various ways to make people aware about
the organization as such Marketing Research, Canopy, Personal References, Pop-up
windows having collaboration with various portals e.g. Rediffmail.com etc. Person with
adequate interest leaves his contact information. Later on these leads are contacted
personally for further development. Thus all these factors sum up into a result oriented
work force. These leads were the contacted through tele-calling and after developing a
relationship, they were pitched in at the addresses provided by them. After giving them a
presentation about the product and its advantages over its competitors, they were
promised of a Demo by company sales force in case a sale had resulted. Also references
were collected from such people and the same methodology was repeated. For each and
every customer personal quarries have been entertained after the sale is done.
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CHAPTER 5
ANALYSIS
5.1 ANALYSIS OF DATA
ANALYSIS OF QUESTIONNAIRE
In which of these Financial Instruments do you invest into?
Instrument Frequency Percent
Shares 70 67.3
Mutual Funds 19 18.3
Bonds 6 5.8
Others 9 8.7
Total104 100.0
PEOPLE WANT TO INVEST INTO
67.30%Share
8.70%Others5.80%
Bonds
18.30%Mutual Funds
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Findings:
This question was meant to closely study the pulse and investment pattern in the stock
market. It is clearly evident that 67.3% of the respondents prefer to invest in the share
market to other Financial Instrument.
Which type of trading do you prefer?
Type of trading Frequency Percent
Online 77 74.0
Offline 16 15.4
Not Applicable 11 10.6
Total104 100.0
Findings:
The result shows that Online Trading has taken the driver’s seat over the conventional trading
ever since Internet triggered a revolution across the globe. 74% of the respondents prefer
online trading.
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If you prefer Online Trading then the reason for it?
Reasons Frequency Percent
Privacy 20 19.2
User Friendly and time saving 27 26.0
Convenient 20 19.2
All the above 21 20.2
Total88 84.6
Missing System 16 15.4
Total104 100.0
Findings:
The preferred choice of online trading itself is a proven fact that 26% of the respondents
find it user friendly, time saving and convenient. Hence it does not come as a surprise as
20% of the respondents preferred all the options.
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What factors motivated you to invest in securities?
Factors Frequency Percent
New IPO's 25 24.0
Entry of FII's 9 8.7
More returns in less time 63 60.6
Others 7 6.7
Total104 100.0
Findings:
This question was meant to understand why more and more investors have started
creeping in the share market as never before. About 60% of the respondents believe that
there is a possibility in multiplying there money within a short period of time and about
24% of the respondents is driven by the IPO’s issued by potential companies.
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Does Online Trading motivate you to deal in securities?
Respondents Frequency Percent
Yes 84 80.8
No 20 19.2
Total104 100.0
Findings:
It is clear and transparent that Online Trading has become more convenient way to deal
in securities as majority (as much as 81%) of the sample population voted for it.
Have you heard about BONANZA?
Respondents Frequency Percent
Yes 85 82.74
No 19 18.26
Total104 100.0
35
Findings:
Out of the total sample size surveyed, BONANZA has its slice of share, as it is familiar and
popular among 82% of the total sample population. Hence Bonanza is a well heard off name
among the investors.
Which brokerage firm do you prefer for online trading?
Brokerage Firms Frequency Percent
ICICI Direct 14 13.5
Bonanza 27 26.0
Indiabulls 23 22.1
Kotak Securities 21 20.2
5 Paisa 18 17.3
HDFC Securities 1 1.0
Total104 100.0
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Findings:
This question was framed to understand the effectiveness of Bonanza among its
competitors. The push and pull factor worked out well for Bonanza as it grabbed 26% of
the market share out of the total people surveyed. But the survey also reveals an
interesting point that there is not much variation among the players in terms of investors’
consideration for a brokerage firm.
How often do you trade?
Duration Frequency Percent
Daily 53 51.0
Weekly 31 29.8
Monthly 17 6.7
Yearly 13 12.5
Total104 100.0
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Findings:
This shows that how stock market has swept the nation as a whole. Most of the investors
prefer daily and weekly trading to keep a watch on the volatility of the stock market so as
to take decisions accordingly.
In which category does your income fall? (Per month in Rs.)
Rs. Per Month Frequency Percent
0-15000 26 25.0
15000-35000 61 58.7
35000-60000 17 16.3
Total104 100.0
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Findings:
People from different categories of income group have taken their chance to invest in the
booming stock market. The upper middle and middle class (income category ranging from 15000
– 35000) people have taken the primary seat as far as the number of people involved in trading is
concerned.
What percentage of your earning do you invest in share trading?
Frequency Percent
Up to 10% 40 38.46
Up to 25% 35 33.65
Up to 50% 15 14.42
Above 50% 14 13.46
Total104 100.0
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Findings:
About 70% of the respondents feel that not more than 25% of their earning will be
pushed into the market that clearly signifies that how volatility in the stock market can
influence the investors.
Rank the attribute “customer service” of a share trading company?
Frequency Percent
Most Important 27 26.0
Important 24 23.1
Neutral 22 21.2
Less Important 18 17.3
Not Important at all 13 12.5
Total 104 100.0
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Findings:
Investors feel that they should be provided with the best of the services in order to
associate themselves with a brokerage company over a long period of time. Hence more
than half of the respondents preferred it to be an important parameter of a brokerage firm.
Rank the attribute “proper guidance” of a share trading company?
Frequency Percent
Most Important 14 13.5
Important 41 39.4
Neutral 24 23.1
Less Important 21 20.2
Not Important at all 4 3.8
Total 104 100.0
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Findings:
More than 50% of the sample population felt that they require proper guidance from the
brokerage company in order to execute their operation effectively.
Rank the attribute “regular updates” of a share trading company?
Frequency Percent
Most Important 20 19.2
Important 14 13.5
Neutral 17 16.3
Less Important 35 33.7
Not Important at all 18 17.3
Total 104 100.0
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Findings:
Surprisingly about 35 respondents out of the 104 surveyed thought that the regular
updates provided by the company were not that important. Only 34 of the respondents
felt that the importance of regular market updates.
Rank the attributes “trustworthiness” of a share trading company?
Frequency Percent
Most Important 10 9.6
Important 7 6.7
Neutral 28 26.9
Less Important 25 24.0
Not Important at all 34 32.7
Total104 100
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Findings:
A mere 20% of the respondents consider the significance of the trustworthiness of the
brokerage company with whom they have been associated.
Rank the attribute “brokerage charge” of a share trading company?
Frequency Percent
Most Important 36 34.6
Important 15 14.4
Neutral 13 12.5
Less Important 5 4.8
Not Important at all 35 33.7
Total104 100.0
44
Findings:
The brokerage charges imposed on the investors makes a significant impact on 50% of
the respondents whereas another 35% felt that this is of no significance at all.
Rank the company “BONANZA” according to the quality of service?
Frequency Percent
Excellent 31 29.8
Very Good 24 23.1
Good 29 27.9
Average 17 16.3
Below Average 3 2.9
Total104 100.0
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Findings:
More than half of the sample population was satisfied with the kind of service that
Bonanza offers its customers.
5.2 SUMMARY OF FINDINGS
The Major competitors are:
• 5paisa.com
• KotakSecurities.com
• India bulls
• ICICIDirect.com
• HDFCsecurities
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1) 5paisa- Company Background
Indiainfoline was founded in 1995 and was positioned as a research firm. In 2000 e-
broking was started under the brand name of 5 paisa.com. Apart from offering online
trading in stock market the company offers Mutual funds online. It also acts as a
distributor of various financial services i.e. GOI securities, Company Fixed Deposits,
Insurance. Limited ground network, present in 20 Cities
Online Account Types:
Investor Terminal : Investors / Students
Trader Terminal : Day Traders / HNI’s
PRICING FOR RETAIL CLIENTS
Investor Terminal
Account Opening
: Rs 500
Demat 1st Yr : Rs 250
Initial Margin : Rs 2500(Compulsory)
Min Margin Retainable : Rs 1000
•Brokerage :
-Trading 0.05% each side + ST
-Delivery 0.50% each side + ST
PRICING FOR HNI CLIENTS
Trader Terminal
Account Opening
: Rs 500
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Demat 1st Yr : Rs 250
Initial Margin : Rs 5000(Compulsory)
Min Margin Retainable : Rs 1000
•Brokerage :
Trading 0.05% each side + ST
Delivery 0.50% each side + ST
(Negotiable to 0.05% each side & 0.25%)
•Account Access Charges
Monthly Rs 800, adjustable against Brokerage
Yearly Rs 8000, adjustable against brokerage
Deal Clinchers v/s 5 Paisa
•Company Background
Not having a very positive image, relatively new in the broking arena, limited network
•Downtime
Recent past 5 paisa Trader Terminal (T.T) is experiencing high frequency downtime
between 3 – 3:30 p.m due to server load ( as their T.T is feature heavy compared to
Speetrade charting)
•Manual Accounting
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The 5 paisa accounting system is manual; online fund transfer through bank is not
credited instantly.
Limit is provided EOD for shares sold from DP, or call
Similarly limit released for shares sold under BTST is manual
Delay in receiving pay-out of clear funds from trading to Bank Account
•Min Account Balance
Concept of Min Rs 1,000 to be maintained in form of cash / securities to keep account
active. This can be withdrawn only on closure of account.
2. KOTAK SECURITIES
Company Background:
Kotak Securities is the sister concern of Kotak Mahindra bank. Kotak Securities limited
is a joint venture between Kotak Mahindra Bank and Goldman Sachs.
Online Account Types
Kotak Gateway Account :
KEAT desktop version, Sms charge
Rs 100, KEAT premium at RS 500
pm, Min margin Rs 20000
Kotak Value Account :
KEAT desktop version, Sms charge
Rs 75, KEAT premium at Rs 500 pm,
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PRICING OF KOTAK
Account Opening : Rs 550 with kotak savings account, Rs 750 with
margin of Rs 50000, otherwise Rs 1200.
Demat : Rs 30 pm
Min Margin Retainable : Rs 1000
Brokerage Slab Wise : Higher the volume, lower the brokerage. Even older
customers (on 0.25% & 0.40%) have been moved to
the slab wise structure wef 1/4/2004.
Slab Structure of Kotak
Delivery volume pm Brokerage
< 1 lakh 0.59% Gateway Acc
1 lakh – 5 lakhs 0.55% Gateway Acc
5 lakhs – 10 lakhs 0.45% Gateway Acc
10 lakhs – 20 lakhs 0.36% Value Acc.
20 lakhs – 60 lakhs 0.27% Value Acc.
60 lakh – 2 Cr 0.23% Value Acc.
> 2 Cr 0.18% Privilege Circle
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Delivery volume pm Brokerage Square off
<25 lakhs 0.06% both sides Gateway acc
25 lakhs – 2 Cr 0.05% both sides Value acc.
2 Cr – 5 Cr 0.04% both sides Value acc.
> 5 Cr 0.03% both sides Privilege acc.
Derivative Brokerage Slab
Delivery volume pm Daily Sq. up Settlement
2 Cr 0.07% both sides 0.09% both sides
2 – 5.5 Cr 0.045% both sides 0.073% both sides
5.5 Cr – 10 Cr 0.036% both sides 0.046% both sides
10 Cr – 25 Cr 0.027% both sides 0.046% both sides
> 25 Cr 0.023% both sides 0.032% both sides
Deal Clinchers v/s Kotakstreet
•Rigid Account Opening Terms
No Flexibility of A/c opening charges (Rs 550) + Compulsory margin Rs5000/-
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•No Customisation of commercial Terms
No Flexibility in Leverage – Dependent on Type of Account ( 4 to 6 times only)
No flexibility in Brokerage, driven by slab structure
•Many Other Charges
Rs 30 p.m towards DP AMC charges
DP incoming charges extra, 0.02%
Rs 1,000 as retainable Margin to keep account active
Rs 25 per call after 20 calls for the month
•Restricted Access to Terminal Like product
KEAT Desktop restricted distribution on payment of Rs 500, Non refundable
3. INDIABULLS
Company BackgroundIndiaBulls is a retail financial services company present in 70 locations covering 62
cities. It offers a full range of financial services and Products ranging from Equities to
Insurance. 450 + Relationship Managers who act as personal financial advisor
Online Account TypeSignature Account :
Plain Vanilla Account with focus on Equity Analysis. The equity analysis is a paid
service even for A/c holders.
Power Indiabulls:
Account with sophisticated trading tools, low commissions and priority access to R.M
Pricing of IB Accounts
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Signature Account
• Account Opening : Rs 250
• Demat : Rs 200 if POA is signed, No AMC for this DP
• Initial Margin : NIL
• Brokerage : Negotiable
Power IndiaBulls
• Account Opening : Rs 750
• Demat : Rs 200 if POA is signed, No AMC for this DP
• Initial Margin : NIL
• Brokerage : Negotiable
PAID Research
SCHEME FACILITY
WebBased-1-Month-500 : View & Print on website
WebBased-1-Year-6000 : View & Print on website
PrintReport-1-Month-750 : View & Print on website + 10 Reports
Delivered
PrintReport-1-Year-9000 : View & Print on website + 10 Reports
Delivered
Deal Clinchers v/s IndiaBulls
•POA for Clients DMAT: All shares held by client trading with IB are moved to IB
Pool Account and the same is shown as a reflection in client DP account. Charges are
levied to move shares from IB pool Account to client DP account
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•Paid Research Services
Access to an research even for an IB trading account holder is charged a min of Rs 500 a
month
•Margin Funding hoax
The interest on funding starts on leveraged delivery trades from T+1 day itself @21%
p.a, on a daily basis
•The role of Relationship Manager
Each RM is looked upon as a revenue generator and he gets a % on business generated
from client. This can lead to over leveraged (Interest) & high frequency (Brokerage)
trading, which may not be in the best interest of the client.
4. ICICI Direct
Company Background
ICICI Web Trade Limited (IWTL) maintains ICICIdirect.com. IWTL is an Affiliate of
ICICI Bank Limited and the Website is owned by ICICI Bank Limited.
Account Types
•ICICI Direct e-invest Account :
Plain Vanilla Account with focus on 3 in 1 advantages. Differentiated in services within
the account
1.Cash on spot
2.Margin Plus
Premium Trading interface of ICICIDirect Link is given to DBC partners and HNI’s
•Account Opening : Rs 750
•Schemes :
54
For short periods Rs 750 is refundable against brokerage generated in a qtr. These
schemes are introduced 3-4 times a year.
•Demat:
NIL, 1st year charges included in Account Opening Plus a facility to open additional 4
DP’s without 1st yr AMC
•Initial Margin : Nil
•Brokerage All brokerage is inclusive of stamp duty and exclusive of other taxes.
Delivery Vol per qtr Brokerage * Square Vol off p m Brokerage **
< 10 lakhs : 0.75%
10 lakhs - 25 lakhs : 0.70%
25 lakhs -50 lakhs : 0.55%
50 lakhs – 1 Cr : 0.45%
1 Cr – 2 Cr : 0.35%
2 Cr – 5 Cr : 0.30%
> 5 Cr : 0.25%
Deal Clinchers v/s ICICIDirect
•Poor online Interface
Slow website interface with no real-time quotes creates a dissatisfaction among high
frequency traders
•Margin trading restriction
The margin trading system is available up to 2:45 p.m, with outstanding net positions
under margin segment automatically squared off at any time between 2:45 – 3:30 p.m.
Thus no control of square off price.
55
•Morning Trades Issue
Being one of the websites with largest no of after hour orders which are pushed 1st thing
in the morning, creates a choking of orders to the exchange, causes delay of
confirmations for new order placed during the early morning trades
•Restriction of BTST
The sale of shares purchased is restricted to T+1 day and is not permitted on T+2 Day.
•No leverage for Delivery trades
Delivery is restricted to the total money allocated into the trading account.
•No flexibility on leverage on Intra-day trades
The leverage of 4 times is available for intra- day trades.
5. HDFC SECURITIES
Company Background
The HDFC BANK, HDFC and ChaseCapital Capital Partners and their associates
promote HDFC SECURITIES LTD. Pioneers in setting up Dial-a-share services with the
largest team of Tele-brokers
Online Account Type:
HDFC Online Trading A/c : Plain Vanilla Account with focus on 3 in 1 advantage
Pricing of HDFC Account
Account Opening : Rs 750
Demat : NIL, 1st year charges included in Account Opening
Initial Margin : Rs 5000/- for non HDFC Bank customers (AQB)
•Brokerage:
Trading 0.05%* each side + ST
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Delivery 0.50%** each side + ST
* Rs 25 Min Brokerage per transaction
** Rs 8 Min Brokerage per transaction
FINDINGS
People with an eye for investment prefer to invest in shares.
This is mainly due to the fact that shares provide high returns in less time.
People investing in shares prefer online trading because of convenience and time
saving.
People who recently started trading were mainly motivated by online share
trading concept.
Bonanza is a known entity in the online business.
In online share trading brokerage and research reports are the major criteria for
selecting a broking company.
60-65 % of the people are satisfied with Bonanza.
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CHAPTER 6
SUMMARY AND CONCLUSSIONS
6.1 SUMMARY OF LEARNING EXPERIENCE
While working for this research problem, I discovered the in depth efforts being put in
working with bonanza. The forming of customer relations and service departments, to
extend knowledge and experience for the well being of different customers. The mind set
of the customer, what a customer is really thinking before investing.
THE PRIME EXPERIENCE:
Understanding the customer satisfaction.
Understanding the mind of upcoming customers and there requirement.
Analyzing different customers and interacting with them was all together a great
experience and understanding their needs.
Interacting the corporate people and understanding there demands with the
customer satisfaction.
Talking with the various talented people and coordinating with different people
was a new experience.
The up and down’s of market and the expectations of the customers with the
services given and handling them was another thing which I learned while
working for this project.
Under the guidance of our esteem panel of subordinates and top management it was a
great learning experience
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6.2 CONCLUSION AND RECOMMENDATION
Indian economy has been globalize and the capital market has been linked to the
international financial market. Foreign individuals and institutional investors are now
encouraged to participate into it. So, there is a need for raising the Indian Capital market
in to the international standards in terms of efficiency and transparency. One such
measure is the passing out of the Depository Act during the year 1996. Dematerialization
of securities and under this system is one of the major steps aimed at improving and
modernizing the capital market and enhancing the levels of investor’s protection
measures which aims at eliminating the bad deliveries and forgery of shares and
expediting the transfer of shares.
Thus online share trading is gaining its popularity. Though it still has to go a long way
but it has established its foothold in the metropolitan cities like Delhi, Mumbai etc. The
dematerializing of shares coupled with the huge growth of Internet has been the fuel for
the online trading which is now a considerable part of the total trading.
It can therefore be said that online share trading is here to stay and will only grow to
bigger proportions and will penetrate deeper into the economy. So online trading would
become the order of the day, taking over the traditional norms in the years to come.
LIMITATIONS
Usual sampling errors may exist.
The universe selected was Delhi region. So the result cannot be generalized.
Some of the customers may be uninterested and may not have replied correctly.
Respondent may also be biased due to several reasons.
Sample size was small which may affect the reliability of the result.
Internet fraud
Still many of Indian customer do not know to use Internet
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RECOMMENDATION
Company should invest more in its marketing strategies by giving ads in
newspapers, magazines, TV commercials etc.
The Account opening time taken is about 7 working days. Improving logistics
should reduce this.
The account opening charges should also be reduced to attract customers.
Customer care is not its best at Bonanza. Prompt customer handling should
improve this.
Some of the customers do not get the service promised to them. There should be a
check on the promises made.
Form should be simplified.
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