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IDBI CAPITAL MARKET SERVICES PVT. LTD. Page 1

KIITSOM

On Job Training

[REPORT ON CUSTOMER

PERCEPTION ON ONLINETRADING]It is an attempt to analyze the working of online portal provided by IDBI Capital Market Services (p)

Ltd. This report provides with a clear idea about the online trading system in India and its scope.

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ACKNOWLEDGEMENT

I sincerely thank my external guide Mr. Manoj Ku.

Samal, Branch Head, I.D.B.I Capital Market ServicesPvt Ltd. whose contribution in my learning and

analyzing the subject has been instrumental. He was

always there to listen and give advice. He has been a

friend and mentor. He showed me different ways to

approach things, he showed me different ways to

approach things and succeed thereby.Special thanks goes to my internal guide Mr. Amiya

Sahu, who is most responsible for helping me to

complete the writing of this dissertation as well as

the challenging research that lies behind it.

Moreover he taught me to be clear about my

objectives and work hard, without hisencouragement and constant guidance; I could not

have finished this dissertation.

I also thank my parents, friends and colleagues

whose support has always been instrumental in

supporting me and making me believe in myself.

Thank You

Pankaj Sikaria

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Contents

yExecutive Summary

yCompanys Profile

ySWOT Analysis

yIndian Equity Market

yOnline Trading Process

yData Analysis

ySuggestions

yConclusion

yAnnexure

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EXECUITVE SUMMARY

As per the title suggested the project report has been prepared regarding the growthand development of online trading in India. Online trading was initiated by NSE in

India and soon after other exchanges followed it. There was a major boom in year2000 when lots of online trading companies came with a bang but only fewsurvived because of lack of computer knowledge and low internet penetration.

Online trading in India significantly contributes to the total trading segment. Wealready witnessed a boost in the capital market due to the emergence of onlinetrading portal companies.

Online trading process is a system in which the customer has the privilege ofmanaging his portfolio with just a click of the mouse. This system is getting

popular day by day and is also getting better with time. Online trading systemsattaches the saving account of the customer with his demat account and tradingaccount, which further means that there is no hassle in transferring funds from oneaccount to the other for investment and disinvestment purposes. This is helpful to

both the customer and the brokerage firm as because hassle free transfers allow theinvestor to do more transactions which at times is obstructed when there aretroubles in transfers.

The online trading system uses the portal system. The portal system works on strict price time system. The brokers are linked to the exchanges through terminals

(VSAT) through. These terminal links are linked to the mainframe systems used bythe exchanges. The orders are given by the investors to the brokers or executed byself. This system avoids the problems which existed in the offline trading system.The investor here sets the exact price to trade, but in offline system, it was on the

broker and prices were prone to manipulation. The online trading system also has abonus advantage of transaction summary, which is the ledger which u can reviewto tally your orders given and the orders are executed thereby.

The major players in the online trading market are Sharekhan , Icicidirect ,

Indiabulls, Motilal Oswal, Karvy and IDBI Capital Market Services ltd.

IBDI Capital Market Services ltd. , is a wing of Industrial Development Bank Of

India, offering Stock Broking, Distribution of Financial Products, Merchant

Banking, Corporate Advisory Services, Debt arranging and underwriting, Portfolio

Management of Pension Funds & Research services.

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The company is a major player in the equity and derivatives market, this service is

offered by the online portal www.idbipaisabuilder.in . This portal allows the

investors after he has created an account with the company, to login in their

accounts and trade thereby.

As this concept of online trading is still a new phenomenon in the country, an

attempt was made to check the successful impact of this portal launched by the

company and a survey was made asking clients of the company about how they

feel about the online portal offered by the company as well as the services

provided with the company.

The results are based on the answers given by the customers themselves and have

no bias. The analysis reveals the fact that the best feature of the company as rated

by the clients is the live streaming that it allows. The customers are a bitunsatisfied with the time taken by the company to activate the account, but they are

very clear about the information given by the marketing employee about the

services offered by the company while opening the account. The company toll free

helpline number offered was significantly used by the clients and moreover they

are quite satisfied with the support staff of IDBI Capital Services Ltd. The portal

site is user friendly and the terms used in the site are well understood by the users.

But still the company has to stress more upon advertising division of the company

as most clients came to know about the company through friends and relative and

not from any advertising campaign employed by the company.

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ResearchMethodology

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Title:

To determine the Customer Perception of Online Trading

in IndiaTitle Justifiation:

The above title is self explanatory. This study mainlydeals with dynamics of online trading in India since itsinception in the year 2000. The trading volume of stockexchange has increased since then and the servicesoffered by online stock traders has facilitated the IndianCustomer. The level ofIndian stock trading through onlinehas been increasing and provides a vast scope for thefuture.

Scope of The Study

Since the year 2000,a big boom has been witnessed in theIndian Stock Market when the market showed the comingof Online Trading System. Many online stock tradingcompanies came but only few survived. The companiesthat survived are getting handsome returns and alsoattracting foreign investment. Nowadays this sector isfacing cut throat competition and also provides huge

growth prospects. The study helps to evaluate and analyzethe findings so as to present a clear view of customer

perception on online trading.

Research Design:

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Non- Probability

The non-probability respondents have been researched byselecting the persons who does the stock trading withI.D.B.I. Portal. The persons who donot trade have not

been interviewed.

Exploratory And Descriptive Research

The research is primarily both exploratory descriptive innature. The sources of information are primary in nature.

The objectives of the exploratory research is to gaininsights and ideas.

The objective of the descriptive research study is typicallyconcerned with determining the frequency with whichsomething occurs.

A well structured questionnaire was prepared and personal interactions were conducted to collect theresponse of the target population.

Sampling Technology

SAMPLING TECHNIQUE

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Initially, a study was made on problems faced by the clients in using the I.D.B.I Portal to

understand the problems faced by them, whichwas the base for the questionnaire.

SAMPLING UNIT

The respondents who were asked to fill thequestionnaire, customers of I.D.B.I Capital

Market Services Ltd are the sampling unit.These respondents comprise of persons tradingregularly in securities.

SAMPLE SIZE

The sample size was restricted to 50

respondents only.

Sampling Area

The area of research was Bhubhneswar.

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LIMITATIONS OF THE STUDY

yThere is a lack of awareness among peopleabout investing in the stock market. So thepeople aware were very few in numbers.

yMost people are comfortable with traditionalsystem, and are resistant to the newtechnologies.

yFew customers do not trade by themselves,

they use phone to give orders and trade.

yMany customers are financially illiterate,which was a major limitation for the study.

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INTRODUCTION

I.D.B.I. Bank

Industrial Development Bank of India (IDBI) is the tength largest bank in theworld in terms of development. The National Stock Exchange (NSE), The NationalSecurities Depository Services Ltd. (NSDL), Stock Holding Corporation of India(SHCIL) are some of the institutions which has been built by IDBI. IDBI is astrategic investor in a plethora of institutions which have revolutionized the IndianFinancial Markets.

IDBI Bank, promoted by IDBI G