A STUDY OF INVESTORS PERCEPTION ABOUT E-TRADING

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A STUDY OF INVESTORS PERCEPTION ABOUT E-TRADING

SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TOWARDS PARTIAL FULFILLMENTOfPOST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT (Approved by AICTE, Govt. of India)(Equivalent to MBA) Academic Session2013 2015

Submitted By: ANUJ KUMAR GUPTA (BM-013014)Under the Guidance of: External Supervisor- Internal Supervisor -Anil Sharma Dr. Timira ShuklaAssistant manager Faculty of marketingSharekhan ltd. IMS Ghaziabad3E/6 ground floor, Jhandewalan Extn. Delhi CERTIFICATE FROM COMPANY

PREFACE As a part of the PGDM Curriculum and in order to gain practical Knowledge in the field of management, we are required to make a report on A study of investors perception about E-trading The Basic objective behind doing this project report is to get knowledge tools of different tools of marketing. In this project report we have included various concepts, perception and satisfaction of traders regarding online trading to SHAREKHAN LTD.

Objectives of my study which I took were, to study investors perception on online trading like safety. To study a comparative analysis on the services provided by major online trading service providers in the market. And to identify customer rankings on user friendliness of online terminal and to help the company in building a strategy for their online services.

Doing this Project report helped us to enhance our knowledge regarding the work in to the attitude of traders towards online trading vs. off line trading. We doing undergo many experiences related with our topic concepts. Through this report I faced many problems like getting appropriate response from the respondents and getting appointment from the investors, the study is limited to the curriculum. There are some suggestions which are inferred from my study which may be of some importance to SHAREKHAN LTD. in future online trading.

ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for SHAREKHAN Ltd. It has been an enriching experience for me to undergo my summer training at SHAREKHAN Ltd, which would not have been possible without the goodwill and support of the people around. As a student of INSTITUTE OF MANAGEMENT STUDIES, GHAZIABAD I would like to extend my sincere gratitude and thanks to Mr. ANIL SHARMA (ASSISTANT MANAGER, SHAREKHAN LTD.), GHAZIABAD , DR. URVASHI MAKKAR (Director-Principal, IEM College Of Management), PROF. TIMIRA SHUKLA (FACULTY OF MARKETING, INSTITUTE OF MANAGEMENT STUDIES)) to shape my understanding towards the project. It was because of their immense help and support that this project has been duly completed.

However, I accept the sole responsibility for any possible error and would be extremely grateful to the readers of this project report if they bring such mistakes to my notice.

------------------------------- ANUJ KUMAR GUPTA

CONTENTS

CHAPTER NO.Particulars Page Nos.

EXECUTIVE SUMMARY7

1.INTRODUCTION TO PROJECT8

2.COMPANY PROFILE11

3.RESEARCH PROBLEM & BACKGROUND24

4.OBJECTIVE & SCOPE OF STUDY26

5.RESEARCH METHODOLOGY28

6.DATA ANALYSIS & INTERPRETATION31

7.OBSERVATION & SUGGESTIONS47

8.LIMITATIONS OF THE STUDY50

9.CONCLUSION 52

10.BIBLIOGRAHY & REFERENCE54

11.APPENDIX56

EXECUTIVE SUMMARY Marketing management 12e-Analysing consumer markets by Philip Kotler states that perceptions are more important than reality and it affects the consumers actual behaviour. Perception is defined as the process by which an individual selects,organizes,and interprets information inputs to create a meaningful picture of the world.

Online stock trading in India: An empirical investigation In 2007,Nidhi walia and Ravinder kumars research report examined the investors preference for traditional trading and online trading, investors perception on online trading and comparing current usage of online trading and offline trading. This study reveals that out of every 100 investors only 28 trade online, which points out a question as why investors were not able to realize the importance of technology in stock trading. Online trading has gained momentum from just 0.5% of total traded volumes 5 Years back, which now accounts for 5% of the total trading volume of approximately Rs 14000 Cr on NSE. Over the past 2 years, the value of all trades executed through internet on NSE has grown from less than Rs 100 cr in June 2003 to over Rs 700 Cr in June 2005.

The major findings of the study are that Indian investors are more conservative, they do not change easily and Indian traditional traders still choose brokers for trading ,whereas net traders are more comfortable with online trading for its transparency and complete control of the terminal

CHAPTER 1

INTRODUCTIONTO PROJECT

1.1 Brief Description

Share khan is Indias leading online retail broking house. Launched on February 8, 2000 as an online trading portal, Share khan has today a pan-India presence with over 1,529 outlets serving 950,000 customers across 450 cities.

It also has international presence through its branches in the UAE and Oman. Share khan offers services like portfolio management, trade execution in equities, futures & options, commodities, and distribution of mutual funds, insurance and structured products. These services are backed by quality investment advice from an experienced research team which offers investment and trading ideas based on fundamental and technical research respectively, market related news, statistical information on equities, commodities, mutual funds, IPOs and much more.

Share khan is a member of the Bombay Stock Exchange, the National Stock Exchange and the countrys two leading commodity exchanges, the NCDEX and MCX. Share khan is also registered as a depository participant with National Securities Depository and Central Depository Services. Share khan has set category leadership through pioneering initiatives like Trade Tiger, an Internet-based executable application that emulates a broker terminal besides providing information and tools relevant to day traders. Its second initiative, First Step, is targeted at empowering the first-time investors. Share khan has also set its global footprint through the India First initiative, a series of seminars conducted by Share khan to help the non-resident Indians participate and benefit from the huge investment opportunities in India.

1.2Time line of SHAREKHAN LTD.

CHAPTER 2

COMPANY PROFILE

2.1 Company Profile

Share khan was the first brokerage Company to go online. The Company's online trading and investment site - www.Sharekhan.com - was also launched on Feb 8, 2000. This site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the content-rich and research oriented portal has stood out among its contemporaries because of its dedication to offering customers best-of-breed technology and superior market information.

Share khan has one of the best states of art web portal providing fundamental and statistical information across equity, mutual funds and IPOs. One can surf across 5,500 companies for in-depth information, details about more than 1,500 mutual fund schemes and IPO data. One can also access other market related details such as board meetings, result announcements, FII transactions, buying/selling by mutual funds and much more.

Share khan's management team is one of the strongest in the sector and has positioned Share khan to take advantage of the growing consumer demand for financial services products in India through investments in research, pan-Indian branch network and an outstanding technology platform. Further, Share khan's lineage and relationship with SSKI Group provide it a unique position to understand and leverage the growth of the financial services sector. We look forward to providing strategic counsel to Share khan's management as they continue their expansion for the benefit of all shareholders."SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bank with strong research-driven focus. Their team members are widely respected for their commitment to transactions and their specialized knowledge in their areas of strength. The team has completed over US$5 billion worth of deals in the last 5 years - making it among the most significant players raising equity in the Indian market. SSKI, a veteran equities solutions company has over 8 decades of experience in the Indian stock markets.

If we experience their language, presentation style, content or for that matter the online trading facility, we'll find a common thread; one that helps us make informed decisions and simplifies investing in stocks. The common thread of empowerment is what Sharekhan's all about!

"Share khan has always believed in collaborating with like-minded Corporate into forming strategic associations for mutual benefit relationships" says Jaideep Arora, Director Share khan Limited. Share khan is also about focus. Share khan does not claim expertise in too many things. Share khan's expertise lies in stocks and that's what he talks about with authority. So when he says that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken with years of focused learning and experience in the stock markets. And these beliefs are reflected in everything Share khan does for us! Share khan is a part of the SSKI group, an Indian financial services power house, with strong presence in Retail equities Institutional equities Investment banking.

In Nagpur it is having the branches at C.A. road, near telephone exchange square and Khare town, Dharampeth and 12-13 franchisees in Nagpur. We have been given the centre at C.A. road.

Share khan provides 4 in 1 account-:Demat a/cTrading a/c: for cash calculationBank a/c: for fund transferDial and Trade: for query relating trading

2.2Products:Mutual fund schemesInsurancePortfolio Management SystemShares online and offlineBondsFixed DepositsCommoditiesOut of these we have to mostly sell demat accounts and Mutual Funds.

2.3 Demat account:Share khan is a depository participant. This means that we can keep the shares in dematerialized form in Share khan. But for this one has to the demat account in Share khan. Dematerialization is the process by which a client can get physical certificates converted into electronic balances maintained in his account with the DP.

In Share khan, under demat account there are two types of terminals.TYPE OF DEMAT ACCOUNT TERMINALDEPOSIT (Refundable)CHARGES (nonrefundable)

CLASSICRs.5000Rs.750

Rs.10000Nil

TRADETIGERRs.5000Rs.1000

Rs.10000/25000Nil

2.4 Its core services are:

Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE), and Bombay Stock Exchange Ltd. (BSE),Commodities trading on National Commodity and Derivatives Exchange India (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX),Depository services,Online trading services,IPO Services,Dial-n-TradePortfolio management services,Fundamental and Technical Research services,In addition to this they also provide advisory services and distributions for mutual funds.

Share khan Value Line (a monthly publication with reviews of recommendations, stocks to watch out for etc.)Daily research reports and market review (High Noon & Eagle Eye)Pre-market ReportDaily trading calls based on Technical AnalysisCool trading products (Daring Derivatives and Market Strategy)Personalized AdviceLive Market Information

Share khan First Step

The Share khan First Step is a brand new program designed especially for those who are new to investing in shares. All one have to do is open a Share khan First Step account and they guide us through the investing process.

Market Share

Share khan enjoyed about 20 per cent market share in Web business (Internet trading) in stock markets. Three years ago, Web trading showed lot of promise but with the market witnessing a downturn, there was not much interest among retail customers.

Profits

The share of Web trading constituted 22 per cent of the revenue. As Share khans daily trading volume was over Rs 200 crore, the share of Web trading at about Rs 40 crore a day was substantial and a larger part of the volume was coming from day traders.

2.4Features of Trading With Share khan:Freedom from paperworkInstant credit and money transferTrade from any net enabled PCAfter hour ordersOnline orders on the phoneTimely advice and-research reportsReal-time Portfolio tracking

Financial capability

Taking in to consideration all its assets and liabilities company is valued at around Rs. 750-850 crores.

2.5Hierarchy in Share khan

There are 14 main hierarchical levels in Share khan:TraineesSuper traineesSales executivesAssistant sales managerArea sales manager : Mr.qumaruddinCity sales managerAssistant branch managerBranch managerRegional headCluster headBusiness headCountry headDirectorsCEO

2.6Account opening:-

Opening a DP account with Share khan

One can open a Depository Participant (DP) account, either through a Share khan branch or through a Share khan Franchisee center.There is no fee for opening DP accounts with Share khan. However a nominal deposit (refundable) is charged towards services which will be adjusted against all future billings.All investors have to submit their proof of identity and proof of address along with the prescribed account opening form.

List of Documents required to open an account with Share khan:

Proof of IdentityYou can submit a photo copy of any of the followingVoter IDPassportPAN CardMAPIN UID CardDriving LicensePhoto I card issued by Employer registered under MAPIN

2.7Copy of Ration CardAddress ProofYou can submit a photo copy of any of the followingVoter ID cardDriving LicensePassportRation CardTelephone BillElectricity BillLeave-LicenseBank PassbookLatest Bank StatementInsurance PolicyFlat Maintenance Bill

A copy of cancelled chequeNominee photograph, if filledSigned Photograph of all holders

BROKERAGE STRUCTURE OF SHAREKHAN

BROKERAGE:

INTRADAYDELIVERY

CASH- EQUITIES0.05%0.5%

F&O0.05%

MINIMUM INVESTMENT IN MUTUAL FUND:

INVESTMENTMINIMUM AMOUNT

Mutual Fund (Any Company)5000

Systematic Investment Plan (Any Company)500

Share khan has tie up with the following banks:HDFCAxis BankIDBICiti BankIndusInd BankUnion Bank, ICICI, Oriental Bank Of Commerce

CUSTOMER

Business class people (high class)High Net worth IndividualsService class peopleGovernment EmployeesYoung Adults (19-30 yrs.)Adults (35-50 yrs.)HUF (Hindu Undivided Family)Women (literate and working)

COMPETITORSIndia BullsMotilal OswalReligareKotak SecuritiesICICI DirectAnand RathiIndia Infoline

2.8 Objective of sharekhan :

To project Share khan as an authority in the retail stock trading business. To execute business for the company by selling demat accounts and mutual funds. To study the various products of the company. To know how to open and close the calls. To learn the online terminal used for trading. To know the various policies of the company. To know how to handle various types of customers. To know various reasons for market fluctuations. To learn to manage time. To gain practical knowledge of the market. To have a practical experience of working in a reputed organization.

ACHIEVEMENT OF THE PROJECT TARGET GIVEN: Attend all the classes for an overview on online trading 45 A total sample of 50 for a companys questionnaire on perception of traders towards online trading, which includes field work A total sample of 50 for project questionnaire on perception of traders towards online trading, which included field work and a report on the same with a research methodology, findings and analysis and conclusion Open 5 DMAT accounts

TARGET ACHIEVED: A total of 43 classes attended out of 45. After that data collection work was done where All the questionnaires were submitted, with a satisfactory field work and All the questionnaires were submitted, with a project report and got evaluated for the same. And from the target A total of 3 DMAT accounts were opened out of 5.

The classes attended gave the below information: About timing of opening of market in BSE and NSE The information of the brokerage which the company used to charge on a transaction in online trading Services share khan provides like ignite, session initiation protocol

CHAPTER 3

RESEARCH PROBLEM & BACKGROUND

3.1 Background This project is basically to know the perception of demat account holders towards online trading 1) To make the online services better, the company wants the details of demat traders who do trading through online this is being held throughout the India. But I have given the NEW DELHI. There I have visited the following areas. Jhandewala Connaught place Pacific mall , Ghaziabad EDM mall, New Delhi

2) In addition to these documents various other information like number of traders, online services provided by SHAREKHAN were taken. These data formed the main basis of the study. Various analysis like online trading awareness, perception of online trading for services and satisfaction of trader for online trading etc. were analyzed.

3) 2) Providing new services for online trading, this in user-friendly perspective is increasing the involvement of user in online trading, which will in turn lead to more satisfaction and growth.3.2 Research Problem Getting appropriate response from the respondents Getting appointment from the investors. The study is limited to the curriculum.

CHAPTER 4

OBJECTIVES AND SCOPE OF STUDY

4.1 Objectives of the studyThe main objective of the study is: Investors perception about E-trading The sub objectives of the study are as follows: To study investors perception on online trading like safety regarding transaction errors. To identify customer rankings on user friendliness of online terminal. To analyze brokerage of online trading as compare to off line trading according to online traders.

4.2 Scope of StudyThe main scope of the study is listed below: It gives us information about the scope of opening a demat account in share khan with online services. It gives us information about the perception of trader towards online trading. It shows the number of online trader. It gives the information regarding the preference and choices of the different online trader. The study also gives information regarding the expansion of online services for trader in future.

It gives the information about satisfaction level of online trader.

CHAPTER 5

RESEARCH METHODOLOGY

5.1 Research DesignOnline trader analysis that are in trading and demat account holder: exploratory and Descriptive research design.

5.2 Data

Primary Data: Primary data collected by interviewing the different types of trader through alternative advisory firm and have administer the traders perception towards E-trading with the help of per designed questionnaire. Secondary Data: collected from SHAREKHAN demat account holders and from other area.

5.3 Research InstrumentA questionnaire was provided by the company for mapping the data of different types of trader. The questionnaire they provided was open ended and containing the straight forward questions.

5.4 Research ToolMany statistical tools like:-QUESTIONNAIREDIRECT INTERVIEWS

Have been used in this research to derive the conclusion

5.5 Sample Size Dealers Sample Size :50Successful Survey : 50

5.6 TOOLS USED FOR ANALYSIS FOR MEASURING TRADERS SATISFACTION LEVEL:

1. Graphical Representation of Analysis: Pie charts Bar Diagrams2. Hypothesis testing

CHAPTER 6

DATA ANALYSIS AND INTERPRETATION

Here I have selected age under 18-25 which will help to segregate and figure out segment according to Gender, occupation, Income level and trading period -:6.1Gender of online traders (Under 18-25)FREQUANCY Gender of traders who do trade online under age 18-25?Table 1UNDER 18-25

GenderNumber of respondents

Male24

Female3

TOTAL 27

CHART NO- 1

INFERENCES:- The above graph shows that out of 50 Respondents, under 18-25, 24 are male and 3 are female. Under 18-25, the maximum numbers of traders are male.6.2 Occupation of online traders (Under 18-25)FREQUENCY Occupation of traders who do trade online under 18-25?TABLE 2OCCUPATION AGE UNDER 18-25

Students12(44%)

Private Employee11(41%)

Public-Employee3 (11% )

Self-employed1 (4%)

CHART NO- 2

INFERENCES:- The above graph shows that out of 50 Respondents, 44% are students, 41% are Private employees and 11% are public employees and 4% are self-employed. Under 18-25, the maximum number of trader who are students.

6.3 Income level of traders (Under 18-25)FREQUENCY TABLE 3INCOME LEVEL AGE UNDER 18-25

Less than 1 lakh6 (23%)

1 Lakh to 3 Lakh10 (37%)

3 Lakh to 5 Lakh1 (3%)

More than 5 Lakh0 (0%)

NIL10 (37%)

TOTAL 27 (100%)

CHART NO- 3

INFERENCES:- The above graph shows that out of 50 Respondents, 37% are under NIL category , 37% are under Less than 1 Lakh , 23% are under 1 lakh to 3 lakh , 3% are under 3 Lakh to 5 Lakh and no one under More than 5 Lakh. Under 18-25, there are equally number of traders who are under NIL categories and as well as Less than 1 Lakh.6.4 Trading period of Traders (under 18-25)FREQUENCY TABLE 4TRADING TIME AGE UNDER 18-25

1-2 Years74(%)

2-3 years26(%)

3-5 years 0 (0%)

More than 5 years0 (0%)

TOTAL 100%

CHART NO- 4

INFERENCES:- The above graph shows that out of 50 Respondents (under 18-25) , 74% have been trading for 1-2 years, 26% have been trading for 2-3 years and no one has been trading for 3-5 years as well as more than 5 years. Under 18-25 age, the maximum number of traders who have been trading for 1-2 years and after that 2-3 years trading period.

TRADERS PERCEPTION TOWARDS ONLINE TRADING 6.5 E-trading is easy way to trade in stock.FREQUENCYTable 5SCALE TOTAL RESPONSE(50)

Strongly Disagree=10

Disagree=21

Neutral=311

Agree =410

Strongly Agree =528

TOTAL 50

CHART NO- 5

INFERENCES:- Out of 50 traders, 56% of traders rated Easy way to trade as strongly agree, 20 % are rated it as agree, 22% as Neutral and 1% rated as Disagree and one rated Strongly Disagree. Almost all the traders have shown a positive response towards Easy way to trade.6.6 Online trading is friendlier as compare to offline trading.FREQUENCYTABLE 6TRADING TIME TOTAL RESPONSE(50)

Strongly Disagree=10

Disagree=21

Neutral=311

Agree =410

Strongly Agree =528

TOTAL 50

CHART NO- 6INFERENCES:- Out of 50 traders, 38% of traders rated brokerage more in online compare to off-line as Agree, 34 % are rated it as Neutral, 10% as disagree and 10% rated as Strongly Agree and 8% rated Strongly Disagree. 38% traders say that online trading causes more brokerage as compare to off line trade 6.7 Time period of trader (Data taken from all 50 responses)FREQUENCYTABLE 7 TRADING TIME RESPONSE FROM 50

1-2 Years29(58%)

2-3 years16(32%)

3-5 years 4(4 %)

More than 5 years1(2%)

TOTAL 100%

CHART NO- 7

INFERENCES:- The above graph shows that out of 50 Respondents, 58% have been trading for 1-2 years, 32% have been trading for 2-3 years and no 8% have been trading for 3-5 years 2% more than 5 years. Under 50, the maximum numbers of traders who have been trading for 1-2 years and after that 2-3 years trading period.6.8 You feel secure while trading online.FREQUENCYTABLE 8SCALE TOTAL RESPONSE(50)

Strongly Disagree=15

Disagree=20

Neutral=39

Agree =422

Strongly Agree =514

TOTAL 50

CHART NO- 8

INFERENCES:- Out of 50 traders, 44% of traders rated Online trading is secure and reliable as Agree, 28 % are rated it as Strongly agree, 18% as neutral and 10% rated as Strongly Disagree and no one rated Disagree. 44% traders are agreed that online trading is secure and reliable.

Cross tabulation

Case Processing Summary

Cases

ValidMissingTotal

NPercentNPercentNPercent

age * gender50100.0%0.0%50100.0%

age * gender Cross tabulation

GenderTotal

FM

age18-23Count011

% within age.0%100.0%100.0%

% within gender.0%2.2%2.0%

% of Total.0%2.0%2.0%

18-25Count32124

% within age12.5%87.5%100.0%

% within gender60.0%46.7%48.0%

% of Total6.0%42.0%48.0%

18-26Count011

% within age.0%100.0%100.0%

% within gender.0%2.2%2.0%

% of Total.0%2.0%2.0%

18-27Count011

% within age.0%100.0%100.0%

% within gender.0%2.2%2.0%

% of Total.0%2.0%2.0%

25-30Count01010

% within age.0%100.0%100.0%

% within gender.0%22.2%20.0%

% of Total.0%20.0%20.0%

above 30Count2810

% within age20.0%80.0%100.0%

% within gender40.0%17.8%20.0%

% of Total4.0%16.0%20.0%

under 18Count033

% within age.0%100.0%100.0%

% within gender.0%6.7%6.0%

% of Total.0%6.0%6.0%

TotalCount54550

% within age10.0%90.0%100.0%

% within gender100.0%100.0%100.0%

% of Total10.0%90.0%100.0%

Hypothesis TestingHo: Age and gender are independent of each other.H1: Age and gender are not independent of each other.

Chi-Square Tests

ValuedfAsymp. Sig. (2-sided)

Pearson Chi-Square3.056a6.802

Likelihood Ratio4.4156.621

N of Valid Cases50

a. 11 cells (78.6%) have expected count less than 5. The minimum expected count is .10.

Inference:-Since the calculated value (.802) is greater than tabulated value ( 0.05), null hypothesis is accepted i.e. age and gender are independent of each other.

HYPOTHESISFor the purpose of analyzing the gathered information few marketing hypotheses were the major issues in a successful conclusion of the research.1. Issue: security is an important issue during online trading.H0: More than 50% of traders believe that security is Important.H1: Less than 50% of traders believe that security is not important.Applying Z test can prove this-:Computation of Z valueZ= P-P/ sigma PP=0.50q = (1-P) =0.50 N=50Where P= X/N = Respondents favoring Ho Total sample size P=36/50=.72 Sigma P P (1-P)/ (N) = .0707 Z= 0.72-0.5/0.0707 Z =3.12K=1.96 (table value of Z) [Assuming 95% confidence interval]Conclusion: Since critical value (K=1.64) is less than calculated Z value (3.12) null hypothesis is accepted.

Result: More than 50% of traders are satisfied and say security is important in online trading.2. Issue: Online trading is friendlier as compare to offline trading.H0: More than 50% of traders are satisfied that online trading is friendlier as compare to offline trading. H1: Less than 50% of traders are not satisfied that online trading is friendlier as compare to offline trading.Applying Z test can prove this-:Computation of Z valueZ= P-P/ sigma PP=0.50q = (1-P) =0.50 N=50Where P= X/N = Respondents favoring Ho Total sample size P=38/50=.76 Sigma P P (1-P)/ (N) = .0707 Z= 0.76-0.5/0.0707 Z =3.68K=1.96 (table value of Z) [Assuming 95% confidence interval]Conclusion: Since critical value (K=1.64) is less than calculated Z value (3.68) null hypothesis is accepted.

Result:More than 50% of traders are satisfied that online trading is friendlier as compare to offline trading.

SWOT ANALYSIS OF SHARE KHAN LTD.

STRENGTHS Share khan is Indias leading online retail broking house It has a good research team. No Annual maintenance charges for their online broking services for one year.

WEAKNESS High brokerage charges but now they have overcome this by a new prepaid in which brokerage is reduced to half.

OPPORTUNITY Financial services sector in India is growing by leaps and bounds. In the upcoming days SHARE KHAN LTD. is coming up with his own insurance.

THREATS Cut-throat competition from corporate big houses like RELIGARE and ICICI MATUAL FUND.

Chapter 7OBSERVATION &SUGGESTIONS

OBSERVATIONS Research has been made on the topic A study of Investors perception about E-trading to identify the level of satisfaction of traders from different location. Whole study only depends upon DELHI-NCR online trader.Based on the analysis and the interpretation of the data, observations and suggestions are recorded which are as follows-:1. As 38% traders rated agree that online trading is more expensive than offline trading.1. 56% traders have rated on Strongly agree that online trading is an easy way to trade. Rest 26% who have rated on Agree.

1. 58% traders have been trading for 1-2 years.

1. Under 18-25 years age there are more number of trading which are male as compare to female.

1. There is more number of traders who are student as compare to private employee or public employee.

1. More than 50% of traders are satisfied that online trading is friendlier as compare to offline trading. 1. More than 50% of traders are satisfied and say security is important in online trading.1. No one does trading more than 5 years under 18-25

1. Income level is equally 37%, 37% between NIL or Less than one Lakh under 18-25.

A hypothesis testing was done to check the importance of the security for the traders and it was found out of the total samples of 50, more than 50% of the traders believed that security is an important concern for them.

Similarly a hypothesis testing was done to check that approximately how many traders in percentage feel that online trading is comfortable then online trading, the results were in favour as the null hypothesis is accepted: result being that more than 50% of the traders believe that online trading is friendlier then offline trading.

SUGGESTIONSSuggestions to Share khan Ltd. through this reportBased on the findings of the study I would like to suggest few points so that it will help them to expand their online services.

Share khan Ltd. should focus on female traders as it in low in numbers compare to male under 18-25

Online brokerage charges should be cut down as compare to offline brokerage because more number of traders have rated as AGREE on high brokerage compare to offline brokerage.

Share khan Ltd. should generate better services so that they can sustain traders more than 5 years as it is negligible.

Share khan Ltd. has to do more focus on Public employee or Self-employed as these are less in numbers.

Though the satisfaction level is good in most of the cases with respect to easy trader or friendlier than offline trading, full satisfaction level still needs to be achieved with respect brokerage charges.

Share khan can let their customer Know that When to Sell Your Stocks?Everyone focuses on what and when to buy stock, yet few ever consider the best time to sell. So to make online trading friendlier it can be done.

Self-employed traders have courage to trader or invest more in stock. So more and more focus should be on them to gain advantage.

Chapter 8

LIMITATIONS OF THE STUDY

8.1 Limitation and Constraint While questionnaire filling process sometimes the clients do not give positive response, may be because they are really busy or may be not interested in filling it. Due to more number of questions in questionnaires traders were doing fluke things.

While interviewing when we met the online traders, they said that if they have to spend money they will invest it in their shops and not in the share market. They dont want to take risk. There are some negative rumors in the market about Share khan ltd. Some people have very bad experience with Share khan in terms of services and charges. That perception affected our data collection process.

The small sample size pertaining to a particular geographical region cannot be the decisive factor for drawing conclusion about the study.

CHAPTER 9

CONCLUSION

CONCLUSIONDoing a research for such a prestigious organization was quite an experience for me; it helped me to learn a lot about what methods we need to follow to conclude a methodological research.The name of the project is A STUDY OF INVESTORS PERCEPTION ABOUT E-TRADING. The data was collected from online traders and the research was done to check the perception of traders towards the online trading facility provided by sharekhan.The research gave us an insight about the preferences of the customers when it comes about security, a comparison between online and offline trading on the basis of ease, comfort, user friendliness, cheaper in terms of money and time. The results were in favor of online trading.

CONCLUSION DRAWN FROM HYPOTHESIS TESTINGA hypothesis testing was done to check the importance of security for traders and for more than 50% of the traders security is an important concern.Similarly a test was done on the user friendliness concern between online and offline trading. More than 50% of the traders believed that online trading is more user friendly than offline trading.

CHAPTER 10

BIBLIOGRAPHY

Bibliography

1. Naresh K. Malhotra, Satyabhushan Dash - Marketing Research: An Applied Orientation2. Nidhi Walia, Ravinder Kumar,Online Stock Trading in India: An empirical investigation, Indian, Article Number, April 2007,Article6 ISSN 0973-87033. Philip Kotler ,Marketing Management: A South Asian Perspective 14th edition4. http://en.wikipedia.org/ - 7-9 May, 20145. http://www.sharekhan.com/ - 13-14 May, 20146. http://www.articlesbase.com/finance-articles/on-line-trading-an-overview-1323823.htm - 18-19 May, 20147. www.traderonline.com 23 May, 20148. Online-stock-trading-review.toptenreviews.com 24-25 June, 2014

CHAPTER 11APPENDIX

1. 6. Please tick the appropriate box to indicate your response. Strongly Disagree = SDDisagree = DNeutral = NAgree = AStrongly agree = SA

S.NO.SDDNASA

1.E-trading is easy way to trade in stock.

2.You feel secure while trading online.

3.Online trading is friendlier as compare to offline trading.

4.You face less Transactional error while trading online.

5.The amount of information given in the online account is sufficient for trading decisions.

6.Through online trading customer can modify the placing orders according to the market movements.

7.Technical charts and graphs shown in the account, guides in making the right choice.

8.Online trading is one stop shop like Bank statements and transaction statements on one click.

9.Online trading causes more Brokerage as compare to offline trading.

10.Online trading is less time consuming as compare to offline trading.

11.Online trading gives tips about buy/sell of shares .

QUESTIONNNAIRE

Opinion Survey on A study of investors perception about E-trading

To indicate your response, please tick( ) the appropriate circle that most closely represents your opinion.

1. Age: Under 18 years 18-25 25-30 Above 30 years

2. Gender Male Female

3. Occupation Student Public Employee Private Employee Self Employed

4. Income level Less than 1 lakh 1 lakh to 3 lakh 3 lakh to 5 lakh More than 5 lakh NIL

5. For how many years you have been trading? 1-2 years 2-3 years 3-5 years More than 5 years

6. Please tick the appropriate box to indicate your response. Strongly Disagree = SDDisagree = DNeutral = NAgree = AStrongly agree = SA

S.NO.SDDNASA

1.E-trading is easy way to trade in stock.

2.You feel secure while trading online.

3.Online trading is friendlier as compare to offline trading.

4.You face less Transactional error while trading online.

5.The amount of information given in the online account is sufficient for trading decisions.

6.Through online trading customer can modify the placing orders according to the market movements.

7.Technical charts and graphs shown in the account, guides in making the right choice.

8.Online trading is one stop shop like Bank statements and transaction statements on one click.

9.Online trading causes more Brokerage as compare to offline trading.

10.Online trading is less time consuming as compare to offline trading.

11.Online trading gives tips about buy/sell of shares .