INDEX

CHAPTER -I
INTRODUCTION
1.1 Objective of the study
1.2 Significance of the study
1.3 Need for the study
1.4 Scope of the study
1.5 LIMITATIONS OF THE STUDY :

CHAPTER II

CHAPTER- III
PRESENT SENARIO

CHAPTER -IV
ORGANIZATION PROFILE OF SHRIRAM INSIGHT
4.1Historical Background
4.2 Origin
4.3 Objectives
4.4 Growth
4.5 Governing Board
4.6 Computerization

44.7 On-Line surveillance

Chapter-v ONLINE TRADING PLATFORM

A) Easy usec:

B) Advance usec:

C) Super usec:

Chapter- vi
ONLINE TRADING
5.1 Global Scenario
5.2 Online Equity Trading
5.3 Safety Of Transactions on the internet
5.4 Advantages Of Online Trading
5.5 Disadvantages Of Online Trading
5.6 Trouble Shooting
(a)From The Investors Point Of View
(b)From The Brokers Point Of View
5.7 Security

Chapter vii
DATA ANALYSIS AND INTERPRETATION

CHAPTER VII

FINDINGS AND SUGGESTIONS

Annexure
CONCLUSION
BIBLIOGRAPHY.

CHAPTER 1
INTRODUCTION

1.1 INTRODUCTION OF ONLINE TRADING:

Technology is revolutionizing every field of human endeavor and activity. The rapid growth
in number, volume and value of securities in the Indian capital Market expose the
limitation of handling and dealing in securities in physical /Paper mode ; the shortcomings
of the market became manifest in terms of bad deliveries ,delays in transfer and irregular
settlement etc.online trading refers to buying and selling securities via the Internet or
other electronic means such a wireless access, touch-tone telephones, and other new
technologies. With online trading, in most cases customers access a brokerage firms
website through their regular internet services provider. Once there , customers may
consult information provided on to website and log into their account to place orders and
monitor account activity.
According to functional basis financial markets are classified into two types.
They are
Money markets (short-term)
Capital markets (long-term)
According to institutional basis again classified in to two types. They are
Organized financial market
Non-organized financial market.

The organized market comprises of official market represented by recognized

institutions, bank and government (SEBI) registered/controlled activities and intermediaries.
The unorganized market is composed of indigenous bankers, moneylenders, individual
professional and non-professionals.

MONEY MARKET:

Money market is a place where we can raise short-term capital.

Again the money market is classified in to
Inter bank call money market
Bill market and
Bank loan market Etc.
Eg; treasury bills, commercial papers, CD's etc.

CAPITAL MARKET:
Capital market is a place where we can raise long-term capital.
Again the capital market is classified in to 2 types and they are
Primary market and
Secondary market.
Eg: Shares, Debentures, and Loans etc.

1.2 PRIMARY MARKET

Primary market is generally referred to the market of new issues or market for
mobilization of resources by the companies and government undertakings, for new projects
as also for expansion, modernization, addition, diversification and upgradation. Primary
market is also referred to as New Issue Market. Primary market operations include new
issues of shares by new and existing companies, further and right issues to existing
shareholders, public offers, and issue of debt instruments such as debentures, bonds, etc.

The primary market is regulated by the Securities and Exchange Board of India
(SEBI a government regulated authority).

Function:
The main services of the primary market are origination, underwriting, and
distribution. Origination deals with the origin of the new issue. Underwriting contract make
the shares predictable and remove the element of uncertainty in the subscription. Distribution
refers to the sale of securities to the investors.

The following are the market intermediaries associated with the market:

1. Merchant banker/book building lead manager

2. Registrar and transfer agent
3. Underwriter/broker to the issue
4. Adviser to the issue
5. Banker to the issue
6. Depository
7. Depository participant

Investors protection in the primary market:

To ensure healthy growth of primary market, the investing public should be

protected. The term investor protection as a wider meaning in the primary market. The
principal ingredients of investors protection are

 Provision of all the relevant information

Provision of accurate information and
Transparent allotment procedures without any bias.

1.3 SECONDARY MARKET

The primary market deals with the new issues of securities. Outstanding securities are
traded in the secondary market, which is commonly known as stock market or stock
exchange. The secondary market is a market where scrips are traded. It is a market
place which provides liquidity to the scrips issued in the primary market. Thus, the growth of
secondary market depend on the primary market. More the number of companies entering the
primary market, the greater is the volume of trade at the secondary market. Trading activities
in the secondary market are done through the recognized stock exchanges which are 23 in
number including Over The Counter Exchange of India, National Stock Exchange of India
and Interconnected Stock Exchange of India.
Secondary market operations involve buying and selling of securities on the stock
exchange through its members. The companies hitting the primary market are mandatorily
required to list their shares on one or more stock exchanges in India including stock
exchanges. Listing of scrips provides liquidity and offers an opportunity to the investors to
buy or sell the scrips.
The following intermediaries in the secondary market:
1. Broker/member of stock exchange buyers broker and sellers broker
2. Portfolio Manager
8

3. Investment advisor
4. Share transfer agent
5. Depository
6. Depository participants.

1.4 FUNCTIONS OF STOCK EXCHANGE:

Maintains activity training
Fixation of prices
Ensures safe and fare dealings
Aids in financing the industry
Dissemination of information
Performance end users
Self regulating organization

REGULATORY FRAME WORK

A comprehensive legal framework was provided by the Securities Contract Regulation
Act, 1956 and Securities Exchange Board of India 1952. Three tier regulatory structure
comprising
Ministry of finance
The Securities And Exchange Board of India
Governing body

1.4 Members of the stock exchange:

The securities contract regulation act 1956 has provided uniform regulation for the admission
of members in the stock exchanges. The qualifications for becoming a member of a
recognized stock exchange are given below:
The minimum age prescribed for the members is 21 years.
He should be an Indian citizen.
He should be neither a bankrupt nor compound with the creditors.

He should not be convicted for fraud or dishonesty.

He should not be engaged in any other business connected with a company
.
He should not be a defaulter of any other stock exchange.
The minimum required educational is a pass in 12th standard examination.

Types of order:
Buy and sell orders placed with members of the stock exchange by the investors. The orders
are of different types.

Limit orders: Orders are limited by a fixed price buy Reliance Petroleum at Rs.50.Here,
the orders has clearly indicated the price at which it has to be bought and the investor is not
willing to give more than Rs.50.

10

Best rate order: Here, the buyer or seller gives the freedom to the broker to execute the
order at the best possible rate quoted on the particular date for buying. It may be lowest rate
for buying and highest rate for selling.

Discretionary order: The investor gives the range of price for purchase and sale. The
broker can use his discretion to buy within the specified limit. Generally the approximation
price is fixed. The order stands as this buy BRC 100 shares around Rs.40.

Stop loss order: The orders are given to limit the loss due to unfavourable price
movement in the market. A particular limit is given for waiting. If the price falls below the
limit, the broker is authorized to sell the shares to prevent further loss. Eg. Sell BRC limited
at Rs.24, stop loss at Rs.22.

Buying and selling shares: The to buy and sell the share the investor has to locate
register broker or sub broker who render prompt and efficient to service to him. The order to
buy or sell specified number of shares of the company of investors choice are placed with the
broker. The order may be of any of the above any mentioned type. After receiving the order
the broker tries to execute the order in his computer terminal. Once matching order is found,
the order is executed. The broker the delivers the contract note to the investor. It gives the
details regarding the name of the company, number of shares bought, price, brokerage, and
the date of delivery of share. In this physical trading form, once the broker gets the share
certificate through the clearing houses he delivers the share certificate along with transfer

11

deed to the investor. The investor has to fill the transfer deed and stamp it. The stamp duty is
one of the percentage consideration, the investor should lodge the share certificate and
transfer deed to the register or transfer agent of the company. If it is bought in the DEMAT
form, the broker has to give a matching instruction to his depository participant to transfer
shares bought to the investors account. The investor should be account holder in any of the
depository participant. In the case of sale of shares on receiving payment from the
purchasing broker, the broker effects the payment to the investor.

Share groups: the listed shares are divided into 3 categories:

Group A shares, B1 shares, B shares. The last 2 groups are referred to cleared securities or
non specified shares. The shares that come under the specified group can avail the carry
forward transaction. In A group, shares are selected on the basis of equity, market
capitalization and public holding. Further it should have good track record and dividend
paying company. It should have good growth potential too. The trading volumes and the
investors base are high in A group shares. Any company when it satisfies these criteria
would be shifted from B group to A group.
In the B1 group actively traded share are included. Carry forward transactions are not
allowed in this group. Settlement takes place through the clearinghouse along with the A
group shares. The settlement cycle and the procedure are identical to A group security. The
rest of the company shares listed from the B group.
Group A shares ex RIL. Group B shares SATYAM CO.

12

Rolling settlement system:

Under rolling settlement system, the settlement takes place n days (usually 1,2 ,3 or
5days) after the trading day. The shares bought and sold are paid in for n days after the
trading day of the particular transaction. Share settlement is likely to be completed much
sooner after the transaction than under the fixed settlement system.
The rolling settlement system is noted by T+N i.e the settlement period is n days after
the trading day. A rolling period which offers a large number of days nagate the advantages
of the system. Generally longer settlement periods are shortened gradually.

SEBI made RS compulsory for trading in 10 securities selected on the basis of the
criteria that they were in compulsory demats list and had daily turnover of about Re.1 crore
or more. Then it was extended to A stocks in Modified Carry Forward Scheme, Automated
Lending and Borrowing Mechanism (ALBM) and Borrowing and lending Securities Scheme
(BELSS) with effect from dec 31, 2001.
SEBI has introduced T+5 rolling settlement in equity market from July 2001 and
subsequently shortened the cycle to T+3 from April 2002. After the T+3 rolling settlement
experience it was further reduced to T+2 to reduce the risk in the market and to protect the
interest of the investors from 1st April 2003.

Activities on T+1:

13

conformation of the institutional trades by the custodian is sent to the stock exchange by
11.00 am. A provision of an exception window would be available for late confirmation. The
time limit and the additional changes for the exception window is dedicated by the exchange.

The exchanges/clearing house/ clearing corporation would process and download the
obligation files to the brokers terminals late by 1.30 p.m on T+1. Depository participants
accept the instructions for pay in securities by investors in physical form upto 4 p.m and in
electronic form up to 6 p.m. the depositories accept from other DPs till 8p.m for same day
processing.

T+2 activities:
The depository permits the download of the paying in files of securities and funds till 10.30 a.m on T+2
from the brokers pool accounts. The depository processes the pay in requests and transfers the
consolidated pay in files to clearing House/clearing Corporation by 11.00am/on T+2. The
exchange/clearing house/clearing corporation executes the pay-out ofsecurities and funds latest by 1.30
p.m on T+2 to the depositories and clearing banks. In the demat mode net basis settlement is allowed.
The buy and sale positions in the same scrip can be settled and net quantity has to be settled.

14

Objectives of the study:

The objectives of the study include the study of the below mentioned aspects:
1) To know the on-line screen based trading system adopted by Shriram Insight
2) To know about the latest and future developments in the IIL trading system.
3) To know each and every term of the IIL trading procedures.
4) To know about DEMAT in the Shriram Insight for easy transfer.

Objectives:
15

Internet trading is expected to ---

Increase transparency in the markets,

Enhance market quality through improved liquidity, by increasing quote continuity
and market depth,

Reduce settlement risks due to open trades, by elimination of mismatches,

Provide management information system,

Introduce flexibility in system, so as to handle growing volumes easily and to support
nationwide expansion of market activity.
Besides, through internet trading three fundamental objectives of securities regulation can be
easily achieved, these are:

Investor protection
Creation of a fair and efficient market, and
Reduction of the systematic risks.
Some of the brokers offering net trading include ICICI web trade, investment India, Geojit
securities, etc.

Need for the study:

SEBI in Sep 1996 has issued Guidelines to the Stock Exchange to go
on-line trading procedure buy the end of the year 1996. Following its directivities Shriram

16

Insight has installed the on-line trading system as on July 2000. The major need for this

study is to know the effectiveness of the on-line system in comparison with the outcry or
mark trading. To study its advantages and recommendations for beneficial and effective use
of the system.

17

CHAPTER-2
RESEARCH METHODOLOGY

2.1Research Methodology:

18

The data collection methods include both the primary and secondary Data

1. Primary Data:
This method includes the data collected from the personal discussions
with the authorized clerks and members of the company.

2. Secondary Data:

The secondary data includes the data from internet, news papers, and
magazines of the NSE, BSE, MCX,NCDEX,NMCE RSL and different books relating to the
issues of this study.

Period of study:
Period of study includes a period of One month. In the first spell of the
period data collection process regarding on-line trading has been carried on. In the second
spell analysis of the data has been worked out.

2.2 Limitations

of the study:

Brokers are not providing complete information regarding on-line trading.

Time is to be considered as major constraint.

2.3 Scope of online trading:

19

The trading on stock exchange in India used to take place to open outcry without use of information
technology for immediate matching or recording of trades.
This was time consuming and inefficient with imposed limits on trading volumes and efficiency. In
order to provide efficiency liquidity and transparency energy introduced a national wide online fully
automated Screen Based Trading System (SBTS).
Where a member can punch into the computer quantizes of securities and the price at which he likes
to transact are the transact means exhausted as soon as it finds a matching sales are buy order from a
counter party.
A SBTS electronically matched orders on a strict price time priority and hence cuts down on time,
cost and risk of error, as well as on fraud resulting in improved operational efficiency. It allows
faster in corporation of price sensitive information. In to prevailing price that increases the
information of efficiency of markets. It enables market participants respective of geographical
location to trade with one another simultaneously.
Improving the depth and liquidity of the market it provides to anonymity by accepting orders, big or
small the members without revealing there identity that providing equal access to everybody it also
provides a perfect audit price it helps to resolve disputes by logging in the trade execution process in
entity.
This diverted liquidity from other exchange and in the every first year of the operation. NSE become
the leading stock exchange in the company, impacting the fortune of other exchange and forecasting
them adopt SBTS also.

20

CHAPTER-3

INDUSTRY PROFILE

21

HISTORY OF STOCK EXCHANGE

The only stock exchanges operating in the 19 th century were those of Bombay set
up in 1875 and Ahmedabad set up in 1894. These were organized as voluntary non profitmaking association of brokers to regulate and protect their interests. Before the control on
securities trading became central subject under the constitution in 1950, it was a state subject
and the Bombay securities contracts (control) Act of 1925 used to regulate trading in
securities. Under this act, the Bombay stock exchange was recognized in 1927 and
Ahmedbad in 1937.
During the war boom, a number of stock exchanges were organized in Bombay,
Ahmedbad and other centers, but they were not recognized. Soon after it became a central
subject, central legislation was proposed and a committee headed by A.D. Gorwala went into
the bill for securities regulation. On the basis of the committees recommendations and
public discussion, the securities contracts (regulation) Act became law in 1956.
DEFINITION OF STOCK EXCHANGE
Stock exchange means any body or individuals whether incorporated or not,
constituted for the purpose of assisting, regulating or controlling the business of buying,
selling or dealing in securities.
It is an association of member brokers for the purpose of self-regulation and
protecting the interests of its members.
It can operate only if it is recognized by the Government under the securities
contracts (regulation) Act, 1956. The recognition is granted under section 3 of the Act by the
central government, Ministry of Finance.
BYLAWS

22

Besides the above act, the securities contracts (regulation) rules were also made in
1975 to regulative certain matters of trading on the stock exchanges. There are also bylaws of
the exchanges, which are concerned with the following subjects.
Opening / closing of the stock exchanges, timing of trading, regulation of blank
transfers, regulation of Badla or carryover business, control of the settlement and other
activities of the stock exchange, fixating of margin, fixation of market prices or making up
prices, regulation of taravani business (jobbing), etc., regulation of brokers trading,
brokerage chargers, trading rules on the exchange, arbitrage and settlement of disputes,
settlement and clearing of the trading etc.
REGULATION OF STOCK EXCHANGES
The securities contracts (regulation) act is the basis for operations of the stock
exchanges in India. No exchange can operate legally without the government permission or
recognition. Stock exchanges are given monopoly in certain areas under section 19 of the
above Act to ensure that the control and regulation are facilitated. Recognition can be granted
to a stock exchange provided certain conditions are satisfied and the necessary information is
supplied to the government. Recognition can also be withdrawn, if necessary. Where there
are no stock exchanges, the government licenses some of the brokers to perform the
functions of a stock exchange in its absence.
SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI).
SEBI was set up as an autonomous regulatory authority by the government of India in 1988
to protect the interests of investors in securities and to promote the development of, and to
regulate the securities market and for matter connected therewith or incidental thereto. It is
empowered by two acts namely the SEBI Act, 1992 and the securities contract (regulation)
Act, 1956 to perform the function of protecting investors rights and regulating the capital
markets.
BOMBAY STOCK EXCHANGE

23

This stock exchange, Mumbai, popularly known as BSE was established in

1875 as The Native share and stock brokers association, as a voluntary non-profit making
association. It has an evolved over the years into its present status as the premiere stock
exchange in the country. It may be noted that the stock exchanges the oldest one in Asia,
even older than the Tokyo stock exchange, which was founded in 1878.
The exchange, while providing an efficient and transparent market for trading in
securities, upholds the interests of the investors and ensures redressed of their grievances,
whether against the companies or its own member brokers. It also strives to educate and
enlighten the investors by making available necessary informative inputs and conducting
investor education programs.
A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public
representatives and an executive director is the apex body, which decides is the apex body,
which decides the policies and regulates the affairs of the exchange.
The Exchange director as the chief executive offices is responsible for the daily today
administration of the exchange.
BSE INDICES :
In order to enable the market participants, analysts etc., to track the various ups and
downs in the Indian stock market, the Exchange has introduced in 1986 an equity stock index
called BSE-SENSEX that subsequently became the barometer of the moments of the share
prices in the Indian stock market. It is a Market capitalization weighted index of 30
component stocks representing a sample of large, well-established and leading companies.
The base year of sensex 1978-79. The Sensex is widely reported in both domestic and
international markets through print as well as electronic media.
Sensex is calculated using a market capitalization weighted method. As per this
methodology the level of the index reflects the total market value of all 30-component stocks

24

from different industries related to particular base period. The total market value of a
company is determined by multiplying the price of its stock by the nu7mber of shared
outstanding. Statisticians call index of a set of combined variables (such as price and number
of shares) a composite Index. An indexed number is used to represent the results of this
calcution in order to make the value easier to go work with and track over a time. It is much
easier to graph a chart based on Indexed values than on based on actual valued world over
majority of the well-known Indices are constructed using Market capitalization weighted
method.
In practice, the daily calculation of SENSEX is done by dividing the aggregate
market value of the 30 companies in the index by a number called the Index Divisor. The
divisor is the only link to the original base period value of the SENSEX. The Devisor keeps
the Index comparable over a period value of time and if the references point for the entire
Index maintenance adjustments. SENSEX is widely used to describe the mood in the Indian
stock markets. Base year average is changed as per the formula new base year average = old
base year average*(new market value / old market value).

NATIONAL STOCK EXCHANGE

The NSE was incorporated in Nov, 1992 with an equity capital of Rs.25 crs. The
international securities consultancy (ISC) of Hong Kong has helped in setting up NSE. ISC
has prepared the detailed business plans and initialization of hardware and software systems.
The promotions for NSE were financial institutions, insurances, companies, banks and SEBI
capital market ltd, Infrastructure leasing and financial services ltd and stock holding
corporations ltd.
It has been set up to strengthen the move towards professionalisation of the capital
market as well as provide nation wide securities trading facilities to investors.
NSE is not an exchange in the traditional sense where brokers own and manage the
exchange. A two tier administrative set up involving a company board and a governing
aboard of the exchange is envisaged.

25

NSE is a national market for shares PSU bonds, debentures and government
securities since infrastructure and trading facilities are provided.
NSE-NIFTY:
The NSE on Apr22, 1996 launched a new equity Index. The NSE-50. The new Index
which replaces the existing NSE-100 Index is expected to serve as an appropriate Index for
the new segment of future and option.
NIFTY mean National Index for fifty stocks. The NSE-50 comprises fifty companies that
represent 20 board industry groups with an aggregate market capitalization of around Rs 1,
70,000 crs. All companies included in the Index have a market capitalization in excess of Rs.
500 crs each and should have trade for 85% of trading days at an impact cost of less than
1.5%.
The base period for the index is the close of price on Nov 3 1995, which makes one
year of completion of operation of NSEs capital market segment. The base value of the
index has been set at 1000.

26

NSE-MIDCAP INDEX
The NSE madcap index or the junior nifty comprises 50 stocks that represent 21st
board industry groups and will provide proper representation of the midcap segment of the
Indian capital market. All stocks in the Index should have market capitalization of grate than
Rs.200 crs and should have traded 85% of the trading days at an impact cost of less than
2.5%.
The base period for the index is Nov 4 1996, which signifies 2 years for completion of
operations of the capital market segment of the operations. The base value of the Index has
been set at 1000.
Average daily turn over of the present scenario 258212 (Laces) and number of
average daily trades 2160(Laces).
At present there are 24 stock exchanges recognized under the securities contract
(regulation Act, 1956. They are
Ahmedbad Stock Exchange
Bangalore Stock Exchange
Bhubaneswar Stock Exchange
Calcutta Stock Exchange
Cochin Stock Exchange
Coimbatore Stock Exchange
Delhi Stock Exchange
Guwahati Stock Exchange
Hyderabad Stock Exchange
Indore Stock Exchange
Jaipur Stock Exchange
Kanpur Stock Exchange
Ludhiana Sock Exchange
Madras Stock Exchange
Magadh Stock Exchange
Mangalore Stock Exchange
Pune Stock Exchange
Uttar Pradesh Exchange Assoc ltd
Saurashtra Sock Exchange
Vadodhara Stock Exchange
NSE
OTCEI
Inter connected Stock Exchange

27

CHAPTER 4
COMPANY PROFILE

28

ORGANIZATION PROFILE OF JRG SECURITIES LTD

JRG Securities Ltd. is one of Indias leading financial services providers
with strong presence in South India. It was incorporated in 1994 and over
the years it acquired a name of trust through Equity and Commodity
Broking businesses. In 2007, Baring India Private Equity Fund II Ltd., a
leading private equity firm of international repute acquired a majority
stake in the Company. With the investment of BIPEF came fresh inflow
of talent and a focused team committed to taking this company to greater
heights. Since then JRG has undergone several transformations expanding into new geographies, adopting state-of-the-art technology,
strengthening credit and risk management systems, creating new products
and strengthening client relationships through service focus. The company
is committed to fully compliant with all regulatory compliances with the
exchanges, SEBI, IRDA, FMC and RBI. JRG is listed on the Bombay
Stock Exchange and has a diverse set of public shareholders.
As the company transforms itself to being a professionally run, high
quality brokerage house in India, the focus is on providing best-in-class
services to the customers. The new management team consists of high
quality professional talent from within the company and from the
marketplace. The company strives to attract and retain the best talent,
which is amongst the key building blocks for the company. The new
growth strategy has four key building blocks Trust, Transparency,
Technology and Talent.
Today, along with its subsidiaries, JRG caters to a gamut of financial
products and services ranging from Equity Trading, Commodity Trading,
Currency Derivatives, Insurance Broking and Loans (Loan against shares,
Margin Funding, Gold Loans etc.) all catering to the mass affluent retail
customers.
The Company is a member of the National Stock Exchange of India
(NSE), the Bombay Stock Exchange (BSE), the National Multi
Commodity Exchange of India Ltd (NMCEIL), the National Commodities
Derivatives Exchange Ltd (NCDEX), the Multi Commodity Exchange of
India Ltd (MCX) and the Indian Pepper and Spices Trades Association
29

(IPSTA). JRG is a full-fledged depository participant of the National

Securities Depository Ltd and Central Depository Services (India)
Limited. Besides these, it is also a leading Insurance Broker.
n order to expand its reach, JRG has launches its internet trading services
through www.inditrade.com. The online services will provide customers
an opportunity to trade from the JRG Securities Ltd of their home or
offices and also trade while traveling. Inditrade.com will empower
customers to trade and invest in equities, commodities, currencies, mutual
funds and insurance.
Jrg are a High Quality Financial Services Provider
Jrg ensure a Delightful Customer Experience
Jrg are a Dynamic, Motivated team with Product Expertise
Jrg are Reliable Partners. Our dealings are Transparent
Jrg invest in Long-term Partnerships with Stakeholders
Jrg differentiate ourselves Providers of Smart Solutions
Enjoy the dual benefits of trading and depository services under one roof
and experience efficient, risk-free and prompt depository service. JRG is
a depository participant with the National Securities Depository Limited
and Central Depository Services (India) Limited for trading and settlement
of dematerialized shares. JRG performs clearing services for all securities
transactions through its accounts. In JRG, investors can open DEMAT
account for holding securities, mutual funds and commodities.
We offer depository services to create a seamless transaction platform
execute trades through JRG Securities and settle these transactions
through the JRG Depository Services. JRG Depository Services is part of
our value added services for our clients that create multiple interfaces with
the client and provide for a solution that takes care of all your needs.
We also offer various tariff plans to suite each and every category of
investors viz, Traders, Investors, HNIs, Corporates, NRIs, etc.
Automated pay-in facility
Access information Anytime, Anywhere
Quarterly Demat statements with valuation

30

 Statements on demand
View Demat A/C statement online
Competitive transaction charges

Exclusive benefits for customer :

Reduced paper work
Speedy settlement process resulting in increased liquidity of your
securities
No risk of loss, wrong transfer, mutilation or theft of share
certificates
Hassle free automated pay-in of your sell obligation with no need
for physical instruction
Instant disbursement of non-cash benefits like Bonus and Rights
Efficient pledge mechanism

Management Team:
Rahul Bhasin Chairman is a qualified chartered accountant and has
equipped with more than 20 years of experience in the field of finance,
Capital markets and related activities and besides this he has also
promoted a listed company namely JRG Securities Ltd Intech Ltd. and
he is the man behind the success of the company. He leads our Companys
overall planning & general business, generating strategies, identifying
opportunities and his high expertise in business advisory and InvestmentsCapital Markets, Mutual Funds and taxation is precious for the company
in the long run.
B R Menon
Director is a qualified chartered accountant and veteran of finance and
investment Field. He is President of the Merchant Banking Division of the
company and he has served to Merchant Banking Firms, Multi national
consultancy firms. He has vast experience in debt syndication, Issue

31

Managements, Buy-back, delisting, open offers and many more endless

activities.
Gaurav Vivek Soni Managing ,
is equipped with various courses and diplomas of capital market and has 8
years experience in the stock market across research, dealing and
execution and besides this she has also operated as sub-broker and
members of regional stock exchanges and her experience is proven
remarkable in acquiring the memberships of BSE, NSE etc.
Our Core Values
Integrity:
A company honoring commitment with highest ethical and business
practices.
Excellence:
Constantly strive to achieve the highest possible standards in our work and
in the quality of the services, we provide.
Unity:
Work cohesively with our colleagues across the Group and with our
customers and partners around the world, building strong relationships
based on understanding and mutual cooperation.
Introduction of JRG Securities Ltd securities Pvt. Limited
JRG Securities Ltd Group ventured in the financial services arena in 1994.
It has grown deep and wide during more than 14 years. It has made
available all essential platforms in BSE, NSE, MCX, Merchant Banking
and Non Banking Finance Activities covering all primary market,
investment solution, debt services, capital markets, Equity derivatives and
currency derivatives segments to our client community.
At JRG Securities Ltd, what our clients find best and advantageous is our
warehouse of knowledge, personalized services, Cost Effectiveness and
many more, which of course adds to their are our in making a move
towards us.
JRG Securities Ltd. was founded on 19th July 2002, by dynamic group of
Professionals namely Rahul Bhasin Chairman and Mrs. B R Menon . In
the expansion era company achieves the business development objectives
by the channeling the resources of company. In the recent past company
32

has grown potentially and it has been able to usher an era of a modern
regime of capital market. Company has successfully acquired the
membership of:
* Bombay Stock Exchange Ltd. [CM & Derivatives segments]
* National Stock Exchange of India Ltd.[CM & Derivatives
segments]
* Depository Participant _

CDSL

* BSE, NSE & MCX-SX -Currency Derivatives segment

* Multicommodity Exchange of India Ltd.
* SEBI Authorized Category I Merchant Bankers

Products & Services

1.
Capital Market Services
Our experienced trading consultants and advanced trading tools will
provide the personalized support to achieve your long-term goals via the
stock markets. With our client centric approach, state of art infrastructure
we were able to add around 1000 clients in our basket in short span of 2
years of our registration. We serve multitude of our retail investing
customers through our own office at Mumbai with numerous & efficient
dealers eager to respond on your wise call. We feel proud with our rapidly
increasing client base in a little time horizon, and we serve to our valuable
clients in the following segments.
Capital Market Segment
Future & Option Market Segment
Investment Advisory Services
2.
Commodity Market Services
Futures Trading in Commodities has opened up spectacular growth
opportunities and advantages not only for large cross section of market
participants like: producers, processors, traders, corporate, trading centers,
33

importers, exporters, co-operatives, industry associations but for investors

community too. It offers unparalleled efficiencies, unlimited growth and
infinite rewarding opportunities to all market participants and investors.
This market affords us a very dynamic field for diversified investment &
trading opportunities in addition to equity markets. The immense benefits
of futures trading are opened, for all market participants and investors
alike, to be realized.
This Commodity segment has proved to be our one more pillar of strength
of the JRG SECURITIES LTD, of course due to positive and enthusiastic
response from our Business Associates and our retail clientele spread over
many trading centers in multi-states.
The performance of the company in this segment has been very satisfying
one due to whole-hearted involvement and encouraging response from our
Business Associates and retail investor-clients spread over many trading
centers in multi-states in the country.
The JRG SECURITIES LTD is in the high gear still to cover many more
cities & trading centers in wider variety of commodities reaching out to
more and more retail end-use investors to realize the countrys dream of
making our India an International Hub of Trading in many agricultural
commodities and precious metals.
3. Depository Services
Depository: A depository holds shares and securities in electronic form in
your name, just as a bank holds your deposits in your account. Besides
holding securities, a depository also provides services related to your
transactions in securities.
Central Depository Services (India) Ltd., (CDSL) : It has received
approval from SEBI in February 1999. It is promoted by The Stock
Exchange, Mumbai (BSE) jointly with leading banks such as State Bank
of India, Bank of India, Bank of Baroda, HDFC Bank, Standard Chartered
Bank, Union Bank of India and Centurion Bank. CDSL commenced its
operations from July 1999. It has depository participants (like agents
called branches) throughout India.
We offer following services as D.P..

Opening of Demat account

Dematerialization

Rematerialization

Maintaining record of holdings in electronic form

34


Settlement of trades by delivering/ receiving underlying securities

Settlement of off-market trades

Providing electronic credit in respect of securities allotted under IPO

Receiving non-cash corporate benefits, such as, allotment of bonus

and rights shares, stock split, etc.

Pledging/Un-pledging of securities

Providing periodical statement of transactions

Registering nomination.
1.
Merchant Banking Services
CSPL is a Category I Merchant Banker registered with Securities &
Exchange Board of India. We work with strong management teams, finical
sponsors and corporate partners to help companies to achieve financial &
strategic goals. We work on client centric approach and provide flexible
solutions to fit the precise requirement of business.
At CSPL-Merchant Banking Division, we offer a wide range following of
services:
o
IPO / FPO / Rights Issue
o
Preferential Allotment
o
ESOP / ESOS
o
Takeovers and Acquisitions
o
Mergers & Amalgamations
o
Buyback of Shares
o
Project Approval / Identification
o
Preparing Feasibility Report
o
Placement of Debt / Equity Instruments
o
Devising Marketing Strategies
o
Marketing support for New Issues
o
Delisting
o
Debt Syndication Services
o
Project Financing Services
The comprehensive range of services from conception to completion
provided under one roof reinforces our commitment on quality assurances
through total involvement. The spacious office of the Company at
Mumbai fully equipped with state of art facilities including in house
Research and computerized database information system has enabled us to
broad base and enlarge our area of operations

35

The scope of services outlined below emanates form a broad

understanding of bunch of Services offered by Merchant Banking
Department of CSPL:
preparation of offer documents / prospectus in compliance with the
regulatory requirements of SEBI, Stock Exchanges, Register of
Companies (ROC) and authorities under varying corporate laws and laws
for issue of securities

Market various arrangements with Qualified Institutional Buyers

(QIBs), High Net Worth Individuals (HNIs), Corporate and Retail
investors in Indian Markets and placement in foreign markets

To act as the Book running Lead Manager / Lead Manager / Comanager to the proposed public issues by Corporates

To Act as manager to Buy back offer of Shares

To Act as manager to the take over offer and other miscellaneous

compliances

Act as manager for delisting of securities from stock exchange (s)

by Corporates

Assist Corporates in formulating ESOP/ESOS

Assist and advising corporates in compliances under the Listing

Agreement

Assist in IPO Grading

Assist the Client in all post issue formalities including Listing of

Securities with the Exchanges.

Assists in co-ordination with the intermediates viz Registrars,

Bankers, Brokers and Advertisers etc

Assists in Finalization of Advertising Campaign in association with

the media & Advertising Agency

Advise on purchase and sale of business and industrial units in India

or outside India.

Advise on strategic investors, financial investors or a combination of

both including cross borders M & A.

Assists in working out appropriate sale / buy strategies and

negotiating with the other party.

Assists in complying with business accounting and legal due

diligences.

Conduct business research and analysis and advice on valuation of

business sought to be acquired, merged or sold.
36


Assists in arranging necessary acquisition finance either from banks,
institutions and/or other lenders

Assists in Valuation of Business

Assists in completing the formalities from High Courts, R. D.;

Takeover code regulation, RBI etc.
2.

Currency Derivatives

Indian investor can now add one more 'investment option' in their
portfolio current derivatives. Regulatory approval from RBI and SEBI
was recently made available (Aug 2008) and this allows exchanges in
India to launch currency derivatives for trading, similar to
equity/commodities derivatives trading.
With launch of currency derivatives in India through stock exchanges,
there would be dynamic shift in currency trading and hedging. Indian
entity would be able to take positions on the external value of the rupee
without having an underlying foreign currency exposure. It would enhance
overall efficiency of the currency market via transparency in pricing,
increase investor based and categories, enhancing opportunities to invest
and eliminate counter-party risk.
Currency Derivatives is a emerging segment in India & to tap this
emerging segment we have acquired the membership of Currency
Derivatives under lucrative investment options.
We offer our broking services in Currency Derivatives segment which
provides access to a new asset class for trading to all Resident Indians
Currency derivatives is a product with benefits, such as:
Access to a new asset class for trading to all Resident Indians
Hedging current exposure:
A. Importers and exporters can hedge future payables and receivables
B. Borrowers can hedge Foreign Currency loans for interest or principal
payments
C. Hedge for offshore investment for Resident Indians
Arbitrage opportunity for entities who can access onshore and non
deliverable forward markets
Volatility and multiplier make it a significant trading option for traders

37

TRADING:
The dictionary or the literal meaning of the trading is buying or selling of goods
and services. In the context of secondary market the trading means buying or selling of
securities. The trading can be done in two different ways. They are:
1. Offline trading.
2. Online trading.
1. Offline Trading: offline trading is a traditional trading technique. Offline trading
can be done with the help of broker (an intermediary between the investor and the
market). The investor will not have any idea about the market and he has to place the
orders with the help of broker or through a phone call to broker or written statement.
The broker is the only persona who knows the fluctuations in prices of securities in
the market. In this offline trading if the investor sells securities he has to give delivery
slips and if he buys then he has to cheque to the broker. The entire process is handled
by National Stock Exchange. Now, the transactions will take T+2 days means
transaction plus 2 days (working). Otherwise the scrips will be auctioned. After the
transaction the scrips are transferred to concerned demat account and the amount is
added to the concern investors account.
2. Online Trading: Online trading is the emerging trading technique in the India.
Online trading is done through the Internet. The investors can place the orders

38

directly from home. In this the investors account, demat account and banking account
are integrated with one other.

ONLINE TRADING:
Before getting in to the online trading we should know some things about the internet, ecommerce and etc.

1. What is Internet?
Internet is a worldwide, self-governed network connecting several other smaller networks
and millions of computers and persons, to mega sources of information. This technology
shrinks vast distances, accelerating the pace of business reforms and revolutionizing the
way companies are managed.
A combination of time and space, called the Internet promises to bring unprecedented
changes in our lives and business. Internet or net is an inter-connection of computer
communication networks spanning the entire globe, crossing all geographical boundaries.
It has re-defined the methods of communication, work study, education, business, leisure,
health, trade, banking, commerce and what not it is virtually changing every thing and we
are living in dot.com age. Net being an interactive two way medium, through various
websites, enables participation by individuals in business to business and business to
consumer commerce, visit to shopping arcades, games, etc.

2. E-commerce
Electronic commerce is associated with buying and selling over computer
communication networks. It helps conduct traditional commerce through new way of
39

transferring and processing of information. Information is electronically transferred from

computer to computer in an automated way.

E-TRADING INTERFACE

INVESTOR

STOKBROKERS

INVESTORS

SATELLITE
LIKE
DEPOSITORY

DEPOSTIROY
PARTICIPANT

REGISTAR/COM
PANY

STCOK
EXCHANGE

BANK

PCs and networking attempts to introduce banks of the tools and technologies required for
electronic commerce. The computers are either workstations of individual office works or
serves where large databases and information reside. Network connects both categories of
computers; the various operating systems are the most basis program within a computer. It
manages the resources of the computer system in a fair and efficient manner.
can enter in to the concept known as online trading.

40

Now

we

In the past, investors had no option but to contact their broker to get real time access
to market data. The net brings data to the investor on line and net broking enables him to
trade on a click of mouse. Now information has become easily accessible to both retail as
well as big investor. Once investors learn to research on line, they will demand more
market information.
The evolution of a broking in India can be categorized in three phases 1. Stockbrokers will offer on their sites features such as live portfolio manager, live
quotes, market research and news, etc. to attract more investors.
2. Brokers will offer on line broking and relationship management by providing and
offering analysis and information to investors during broking and non-broking hours
based on their profile and needs, i.e customized services.
3. Brokers (now e-brokers) will offer value management or services like initial public
offering online, on-line asset allocation, portfolio management, financial planning,
tax planning, insurance services, etc. and enables the investors to take better and well
considered decisions.

The actual definition of Online Trading is as explained below:

Online trading is a service offered on the internet for purchase and sale of shares. In the
real world you place orders on your stockbroker either verbally (personally or telephonically)
or in a written form (fax). In online trading, you will access a stockbrokers website through
your internet enabled PC and place orders through the brokers internet based trading engine.
These orders are routed to the stock exchange without manual intervention an executed
thereon in a matter of a few seconds.

41

The net is used as a modem of trading in internet trading. Orders are communicated to the
stock exchange through website.

In India:
Internet trading started in India on 1st April 2000 with 79 members seeking
permission for online trading. The SEBI committees on internet based securities trading
services has allowed the net to be used as an Order Routing System (ORS) through registered
stock brokers on behalf of their clients for execution of transaction. Under the ORS the client
enters his requirements (security, quantity, price buy/sell) on brokers site.

Objectives:
Internet trading is expected to ---

Increase transparency in the markets,

Enhance market quality through improved liquidity, by increasing quote continuity
and market depth,

Reduce settlement risks due to open trades, by elimination of mismatches,

Provide management information system,

Introduce flexibility in system, so as to handle growing volumes easily and to support
nationwide expansion of market activity.
Besides, through internet trading three fundamental objectives of securities regulation can be
easily achieved, these are:

Investor protection
42

 Creation of a fair and efficient market, and

Reduction of the systematic risks.
Some of the brokers offering net trading include ICICI web trade, investment India, Geojit
securities, etc.

Requirements for net trading:

For investors:
1. Installation of a computer with required specification
2. Installation of a mode
3. Telephone connection
4. Registration for on-line trading with broker
5. A bank account
6. Depository account
7. Compliance with SEBI guidelines for net trading

For stock brokers:

1. Permission from stock exchange for net trading
2. Net worth of Rs. 50 lac
3. Adequate back-up system
4. Secured and reliable software system

43

5. Adequate, experienced and trained staff

6. Communication of order (trade confirmation to investor by e-mail)
7. Use of authentication technologies
8. Issue of contract notes within 24 hours of the trade execution
9. Setting up a website.
The net is used as a medium of trading in internet trading. Orders are communicated
to the stock exchange through website. Internet trading started in India on 1st April 2000
with 79 members seeking permission for online trading. The SEBI committees on internet
based securities trading services has allowed the net to be used as an Order Routing System
(ORS) through registered stock brokers on behalf of their clients for execution of transaction.
Under the Order Routing System the client enters his requirements (security, quantity, price,
and buy/sell) in broker's site. They are checked electronically against the clients account and
routed electronically to the appropriate exchange for execution by the broker. The client
receives a confirmation on execution of the order. The customer's portfolio and ledger
accounts get updated to reflect the transaction. The user should have the user id and
password to enter into the electronic ring. He should also have demat account and bank
account. The system permits only a registered client to log in using user id and password.
Order can be placed using place order window of the website.

44

Procedure for net trading

Step 1: Those investors, who are interested in doing the trading over internet system i.e.
NEAT-IXS, should approach the brokers and get them self registered with the Stock Broker.
Step 2: After registration, the broker will provide to them a Login name, Password and
personal identification number (PIN).
Step 3: Actual placement of an order. An order can then be placed by using the place order
window as under:
(a) First by entering the symbol and series of stock and other parameters like quantity
and price of the scrip on the place order window.
(b) Second, fill in the symbol, series and the default quantity.
Step 4: It is the process of review. Thus, the investor has to review the order placed by
clicking the review option. He may also re-set to clear the values.
Step 5: After the review has been satisfactory, the order has to be sent by clicking on the
send option.
Step 6: the investor will receive an "Order Confirmation" message along with the order
number and the value of the order.
Step 7: In case the order is rejected by the Broker or the Stock Exchange for certain reasons
such as invalid price limit, an appropriate message will appear at the bottom of the screen. At
present, a time lag of about 10 seconds is there in executing the trade.
Step 8: It is regarding charging payment, for which there are different mode. Some brokers

45

will take some advance payment room the investor and will fix their trading limits. When the
trade is executed, the broker will ask the investor for transfer of funds by the inv3estor to his
account.
Internet trading provides total transparency between a broker and an investor in the
secondary market. In the open outcry system, only the broker knew the actually transacted
price. Screen based trading provides more transparency. With online trading investors can see
them sleeves the price at which the deal take place.
The time gap has narrowed in every stage of operation. Confirmation and execution
of trade reaches the investor within the least possible time, mostly within 30 seconds. Instant
feedback is available about the execution. Some of the websites also offer;

New and research report

BSE and NSE movements
Stock analysis
Freebies
IPO and mutual fund centers and
Movements of interaction stock exchanges.
Step by step procedure in on-line trading:
Following steps explain the step by step approach to on-line trading:

Log on to the stock broker's website

Register as client/investor

46

 Fill the application form and client broker agreement form on the requisite value
stamp paper

Obtain user ID and pass word

Log on to the broker's site using secure user ID and password
Market watch page will show real time on-line market data
Trade shares directly yourself by entering the symbol or number of the security
Brokers server will check your limit in the on-line accountant demat account for the
number of shares and execute the trade

Order is executed instantly (10-30 seconds) and confirmation can be obtained.

Confirmation is e-mailed to investor by broker
Contract note is printed and mailed in 24 hours
Settlement will take place automatically on the settlement day
Demat account and the bank account will get debited and credited by electronic
means.

Check points for choosing e-broker:

The investors should check for reliability easy access, speed and sturdiness and for
this, checking should be made for:
A. Response time when investor is logging on to the sites net training screen --- how fast the
data is displayed on the screen;
B. Time gap between the price shown on the market watch screen and that on the stock
47

exchange at any point of time. This gap sho8uld be ideal 0-20 seconds.
C. Confirmation of the execution of trade should reach the investor with least possible time
preferably within 20 seconds;
Uptime of the sites net trading module during trading hours should be given instant.

48

ONLINE TRADING PLATFORM

A) Easy usec:
It is a powerful browser based trading system for those who are relatively
new to online investing. A unique integrated account, linking your banking, broking, and
demat accounts. Our cutting-edge trading interface gives you the power
to research stock trends, find the latest stock quotes and make fast trades right from the
computer you already have. You no longer have to depend on someone else to handle your
trades - the power to make your mark on the stock market is in your hands. EASY Usec
simplifies the online trading process and gives you unlimited access to your trading history to
see where you started, where you are now and where you have room to grow. And with our
research and stock watch tools, you can be ready to trade stock at a moment's notice.

Benefits of Easy usec:

Trading on NSE & BSE

World class resources
Integrated Bank, Demat and Trading Accounts
Get Current & Historical Order Status
Monitor your orders
Updated buying power

49

 Anywhere access
Access to all back end reports and data
Online Research & Exchange Calls

B) Advance usec:
ADVANCE Usec is a Applet-based system designed specially for Active
Traders. Customers can also trade on ADVANCE Usec where they have access to live
streaming quotes, which enables them to keep track of real-time price movement. Multiple
market watch, message window and trading window, all in one screen, to help customers
track individual stocks and make timely trades when investing online. Fast & capable trading
application to power your online account.
Benefits of Advance usec:

Streaming quotes
Market Depth Window
Trading on NSE & BSE
Anywhere access
Create Multiple Watch lists

C) Super usec:

50

Trade along side professional stock brokers from the comfort of your own
home or office. SUPER Usec is an advanced, customizable online trading platform built
exclusively for active traders like you. SUPER Usec launches right from your desktop and
offers professional, complimentary tools that can help give you an advantage in the
marketplace. SUPER Usec makes the most of state-of the-art technology to deliver power,
speed and reliability.

Benefits of Super usec:

Personalized Stock Quote Lists

Fully Customizable display

Streaming Intraday, Daily and Weekly Charts

Quick Quote.

51

HOW NET TRADING WILL TAKE PLACE

2
3
4
9
a

52

819
0

The above flow of events is explained hereunder ---1. Go to broker's site:

Register yourself as a client; you will have to give some basic personal information.
remember, you are not yert a "client" in the legal sense of the word.

2. Signing up with a stock broker:

since cyber laws are not yet in force, this cannot be done on-line. You will have to get a
client-broker agreement form from a broker, fill it, and sign it-physical. This agreement is
made out on stamp paper, the value of which varies from state to state. It states your rights
and obligations in regard to net-based trades. You are now the brokers client.
3. Log in to www.religaresecurities.com to start trading
4. Information:
Most sites will give your information, news, research reports, and may be an on-line
portfolio manager to track your investments on real-time basis.
5. Market watch screen:
This is where you go before placing an order. Here you will get the latest stock quotes,
number of shares traded in \each script, and the number and value to buy and sell orders in
each scrip. This information will come from the stock exchange's trading system through the
broker's web server.
5a. Watch out!:
Stock quotes should come with a minimum time lag, ideally less than 20 second. Since there
is no way you as an individual investor, can find out how old the information is, a site's
credibility comes into play. A good site will clearly state the delay.
53

6. Order execution screen:

You enter your order here. An order could be either price-based (you specify a price limit
over which you will not buy or under which you will not sell your shares) or open (you want
to buy or sell at the prevailing market price).

7. Pending order and trade information screen:

this is where you can check the status of your order whether it has been executed or not.
This information also comes from the exchange's system through your broker's web server.

7a. Watch out!:

You should get immediate confirmation of the submission, as well as execution, of your
order. This depends on the speed and quality of your Net connection. On an average, the
information shouldn't take more than 30 seconds to reach you (up to four minutes in the
worst-case scenario).
8. Broker's web server:
A dedicated server at the broker's \end routes orders from the site to his trading server.
9. Trading server:
Routes orders coming from or going to the broker's end routes orders from the site to his
trading server.
9a. Broker's offline training terminals.
10. Stock exchange's trading system:
All orders are processed here.

54

2.3 Execution of Orders; Confirmation

(a)

The Client shall be allowed to trade only during the trading hours of the Exchange.
The Client understands that entering an order electronically on the web site, including
market orders, does not guarantee execution of the order. An order made by the Client
shall be deemed to be received by the Member only on confirmation of the order by the
Member on the web site. The Member has the absolute right to reject any order that
may be made by the Client for any reason whatsoever including for the breach of the
requirement of maintaining the prescribed Margin in the Client account or the bank
account (in the event that the Client has executed a power of attorney in terms of
Clause 3.1 of these Terms).

(b)

The Client is required to ascertain the status of his/her/its order (including any
rejection of the same) which would be posted only on the relevant sections of the web
site, and no separate confirmation of the execution/ rejection of the order would be sent
to the Client either physically or electronically. Further, the Exchanges may cancel the
trade suo-moto without giving any reason there for. The Member shall be entitled to
cancel relative contracts with the Client. The Member shall not be liable for any losses,
damage or claims on account of such rejection or cancellation of any trade for any
reason whatsoever. Further, the Member may, at its sole discretion, subject any order
made by the Client to manual review and entry which may cause delays in the
execution of the Client's orders.

(c)

The Client is required to ascertain all ledger balances of securities in his/her/its

account, which would be posted only on the relevant sections of the web site, and no
separate intimation of the ledger balances of the Client in his/her/its account would be
sent to the Client either physically or electronically. Subject to prescribed regulations,

55

depository participant statements will be posted only on the relevant sections of the
web site and no separate intimation thereof will be sent to the Client either physically
or electronically.
(d)

2.4 Price of Securities The Client understands that with respect to any order, the
Client will obtain the price at which the order was actually executed in the market,
which may be different from the price at which the security was trading when the
Client's order was entered into the Member's system.

2.5 Mistaken Order The Member shall not be responsible for any order that is made by the
Client by mistake and every order that is entered by the Client through the use of the allotted
user identification (ID) and password shall be deemed to be a valid order for which the Client
shall be fully responsible.
2.6 Reconfirmation of Certain Orders The Client hereby confirms that he/she/it is aware
that the Member has provided on the web site a facility for reconfirmation of orders which
are unusual and/or large and need to be executed using the Member's discretion. These orders
are subject to manual review and consequently execution of these orders may be delayed.
The Member reserves the right to reject any order based on risk perceptions.
2.7 Cancellation or Modification of Orders (i) The execution of order cancellations or
modifications is not guaranteed. Cancellation of orders is possible only if the original order
remains pending at the Exchanges. Market orders are subject to immediate execution. The
Client shall not presume that an order has been executed or cancelled or modified and the
Client is required to verify the status of his/her/its orders on the web site in accordance with
Clause 2.3 above. (ii) Unless otherwise specified by the Member, any order not executed at
the end of the day shall stand cancelled.
2.8 Corporate Benefits; Settlement Cycles (a) The Client accepts responsibility for

56

knowing the status of all corporate benefits like rights and bonus issues, dividends and stock
splits of shares he/she/it intends to trade in or held in his/her/its account. The Client accepts
responsibility for knowing the correct ISIN numbers of the shares in his/her/its account and
the eligibility of the shares to meet share pay in obligations to Exchanges whether received
by way of purchases, rights, bonuses, stock splits, off market transfers or otherwise.
2.9 Brokerage and Other Charges (i) The Client agrees to pay the brokerage charges,
Exchange related charges, statutory charges and any other charges (including but not limited
to security handling charges on settlement) as they exist from time to time and as they apply
to the Client's account, in respect of transactions and services that the Client receives from
the Member. The brokerage shall be paid in the manner intimated by the Member to the
Client from time to time, including as a percentage of the value of the trade or as a flat fee or
otherwise, together with the service tax as may be applicable from time to time on the same.
The Client further agrees to pay any applicable taxes that may be levied on the transaction.
(ii) The Member shall debit the charges of the depository participant for the trades and the
bank charges for the realisation of cheques etc. to the Client's account.
2.15 Restrictions on Access to Web Site and Trading The Client understands that the
Member may at any time, at its sole discretion and without prior notice to the Client, prohibit
or restrict the Client's access to the use of the web site or related services and the Client's
ability to trade. The Member may terminate the Client's account at any time for any reason
and without prior notice to the Client. The Client will bear any loss that he/she/it may be
faced with due to inability to execute further trades on account of such restriction. The
closing of an account will not affect the rights and/or obligations of either the Member or the
Client incurred prior to the date the account is closed.

57

3. POWER OF ATTORNEY
3.1. Bank Account If the Client executes a power of attorney in relation to the operation of
its bank account, the Member is hereby authorised to directly operate the bank account of the
Client to the extent necessary to credit and debit the proceeds/dues from the various
transactions that are carried out by the Member on behalf of the Client, and also to debit
(i) depository participant account charges,
(ii) Margin due or shortfall in Margin due from the Client, and
(iii) any other charges or dues from the Client. The Client also agrees and shall authorise the
designated bank to block the required amount in the designated bank account against the
desired limits and settlement obligations solely on the instructions from the Member in this
regard. Once the amounts in the account are blocked, the Member shall, if the order of the
Client gets executed either fully or partially, instruct the bank to transfer the amount equal to
such obligation to the Member's account on the settlement date or the pay in or pay out date
and release the balance amounts that are blocked in the case where the order of the Client is
partially executed or the full amount that is blocked in the case where the order does not get
executed. The Client will not be allowed to withdraw, issue a cheque or otherwise use the
blocked funds in its account. The Member will not be liable in any manner for any loss or
claims that may arise due to any blocking of funds that may be erroneously instructed by the
Member to the designated bank.
3.2 Depository Account The Client shall execute a power of attorney for the operation of its
Depository account authorising the Member to directly enable the transfer of relevant
securities to the pool account of the Member through the issue of the necessary delivery
instructions duly signed on behalf of the Client and to pledge, sell, dispose, transfer or deal in
any other manner the securities placed by the Client with the Member as margin and lying in
58

the depository account. Once the securities in the account are blocked the Member shall, if
the order of the Client is executed either fully or partially, instruct the depository participant
to transfer the securities which are sold, to the Kotak Securities pool account in time to meet
the settlement obligation and release the balance securities that were blocked in the case of
partial execution or all the securities that are blocked in the case of non execution. The Client
agrees that it will not be allowed to pledge, instruct transfer or otherwise use the blocked
securities in its account. The Client also agrees that the blocking of the securities will be
given first priority as against any other instructions issued by it against the blocked
securities.

3.3 Freezing of the Accounts In a case where the Client executes both or any of the powers
of attorney referred to above, the Client shall be entitled to exercise the right to
close/freeze/pledge the accounts with the depository participant and/or the bank, as the case
may be, only if there is no obligation pending to be met by the Client or any client member.

4. MEMBER CLIENT COMMUNICATION

4.1 Form of Communication Documents, which may be sent by electronic delivery between
the parties, may be in the form of an electronic mail (including any auto replies from the
system of the Member), an electronic mail attachment, or in the form of an available
download from the web site. The Member shall be deemed to have fulfilled any legal
obligation to deliver to the Client any such document if sent via electronic delivery, provided
however that the notice of termination specified in Clause 6.10 of these Terms shall be in
writing.

59

4.2 Electronic Communication of Documents The Member shall send to the Client by
electronic means the contract note/trade confirmations of the trades executed, bills and
account statements. The Client agrees that the Member fulfils its legal obligation to deliver to
the Client any such document if sent via electronic delivery. The Client understands that it is
his/ her/its responsibility to review, upon first receipt, whether delivered to Client by mail, by
e-mail (including any auto replies from the system of the Member), or other electronic
means, all confirmations, statements, notices, contracts, bills and other communications. All
information contained therein shall be binding upon the Client, if the Client does not object,
either in writing or via electronic mail, within twenty four hours after any such document is
sent to the Client. In all cases, the Member reserves the right to determine the validity of the
Client's objection to the transaction. The Client agrees that the Member will not be
responsible for non-receipt of documents sent via electronic delivery due to change in email
address of the Client. The Client also agrees that the Member shall not take cognisance of
out-of-office/out-of-station auto replies and the Client is deemed to have received such
electronic mails.
4.3 Change of Address Unless the Client informs the Member of the change of the address
for communication in writing, all notices, circulars, communication or mail sent to the
existing address shall be deemed to have been received by the Client irrespective of whether
they are actually received or not.
4.4 Protection of Password The Client shall immediately notify the Member in writing,
delivered via e-mail and Registered AD, if the Client becomes aware of any loss, theft or
unauthorised use of the Client's password and account number; or any failure by the Client to
receive an accurate written confirmation of an execution including the contract note for the

60

same; or any receipt by the Client of confirmation of an order and/or execution which the
Client did not place; or any inaccurate information in the Client's account balances, securities
positions, or transaction history. In the case where the Client notifies such loss, theft or
unauthorised use of the Client's password and account number to the Member, the Member
shall suspend the use of the account of the Client. However, the Client shall be responsible
and liable for all transactions that are carried out by the use of the Client password. When
any of the above circumstances occur, neither the Member nor any of its officers, directors,
employees, agents, affiliates or subsidiaries will have any responsibility or liability to the
Client or to any other person whose claim may arise through the Client with respect to any of
the circumstances described above.
4.5 Member's Liability Under no circumstances shall the Member or anyone involved in
creating, producing, delivering or managing the Member's services be liable for any direct,
indirect, incidental, special or consequential damages that result from the use of or inability
to use the service, delay in transmission of any communication, in each case for any reason
whatsoever (including on account of breakdown in systems) or out of any breach of any
warranty or due to any fraud committed by any person whether in the employment of the
Member or otherwise.
4.6 Amendment/ Modification of the Terms The Member may at any time amend these
Terms, by modifying or rescinding any of the existing provisions or conditions or by adding
any new provision or condition, by conspicuously posting notice of such amendment on the
web site. The Member shall not be required to communicate any modification or rescission
individually to the Client either through physical or electronic form, and any separate notice
of amendment or modification is deemed to be waived by the Client. The continued use of
the services of the Member after such notice will constitute acknowledgement and

61

acceptance of such amendment. These Terms (as amended or modified from time to time)
represent the entire agreement between the Client and the Member concerning the subject
matter hereof.

4.7 Notices/ Policies Certain policies and/or procedures may be further outlined on the
Member's web site and material/literature and frequently asked questions (FAQ's) provided
to the Client. Through the use of the Member's web site and services, the Client agrees to be
bound by any and all such notices, policies and terms of doing business.

5. PASSWORD, SECURITY PRECAUTIONS AND INFRASTRUCTURE

5.1 Use of Client-ID and Password The Client confirms and agrees that it will be the sole
authorized user of the password/s to be given to it by the Member. The Client accepts sole
responsibility for use, confidentiality and protection of the password/s as well as for all
orders and information changes entered into the Client's account using such password. The
Client shall ensure that the password/s is/are not revealed to any third party or recorded in
any written or electronic form. If the Client forgets the Client-ID or password, a request for
change of the password should be sent to the Member in writing. On receipt of such a
request, the Member shall discontinue the use of the old password and shall generate a new
password for the Client, which shall be communicated to the Client. However, the Client
shall be responsible and liable for all transactions that are carried out by the use of the old
password. Neither the Member nor any of its officers, directors, employees, agents, affiliates
or subsidiaries will have any responsibility or liability to the Client or to any other person

62

whose claim may arise through the Client with respect to any of the circumstances described
above.
5.2 Form of Password The Client shall use password at least 6 characters in length, which is
a combination of alphabets and numbers. The password shall not be a combination relating to
name or age or other personal information, which would render it easily deducible.
5.3 Recording of Password The Client shall memorise the password and not record it in
written or electronic form. In the event that the Client does record the password in written or
electronic form, he/she/it shall do so at his/her/its sole risk and responsibility.

5.4 Responsibility for Use of Client-ID and Password Any order entered using the Client's
ID and password is deemed to be that of the Client. If third parties gain access to the
Member's services through the use of the Client's ID and password, the Client will be
deemed to be responsible for the same and hereby indemnifies and holds harmless the
Member against any liability, costs or damages arising out of claims or suits by or against
such third parties based upon or relating to such access and use, since the primary
responsibility for such transaction shall be that of the Client.
5.5 Communications Equipment of the Client The Client is responsible for installing and
maintaining the communications equipment (including personal computers and modems) and
telephone or alternative services required at the Client's end and connectivity required for
accessing and using the web site or related services. All communication costs, service
charges, levies and fees incurred by the Client in accessing the web site or related services
will be borne by the Client.

63

5.6 Client's Infrastructure For the purposes of these Terms, it is presumed that the Client
has all the necessary and compatible infrastructure ready at its end for the purpose of
accessing the web site of the Member prior to accessing the services provided pursuant to
these Terms. The Member will not (and shall not be under any obligation to) assist the Client
in installing the required infrastructure or obtaining the necessary equipment, permits and
clearances to establish connectivity or linkages to the web site of the Member.
5.7 Prevention of Unauthorized Use The Client will install the necessary safeguards and
access restrictions to prevent unauthorized use of Clients computer systems and ensure that
no unauthorized person can gain access to the computer systems.

5.8 Liability for Incorrect Instructions The Client agrees to fully indemnify and hold
harmless the Member for any losses arising from the execution of incorrect/ ambiguous or
fraudulent instructions that got entered through the system at the Client's end.
5.9 Secure Electronic Records and Digital Signatures In the event that the certifying
authorities and other infrastructure contemplated under the Information Technology Act,
2000, for ensuring secure electronic records and secure digital signatures is notified by the
concerned authorities and the infrastructure to enable the same is in place, the Member
would have the right to require the Client to authorise the various transactions on the web site
by means of such secure electronic records and secure digital signatures and discontinue the
usage of the Client password.

64

BROKERAGE CHARGED

Classic Account
Trade Type

Monthly Turnover# Monthly Turnover# Monthly Turnover#

(Less than 1 cr.)

(1 cr. to 5 cr.)

(More than 5 cr.)

Intraday

0.05%

0.04%

0.03%

Delivery

0.50%

0.40%

0.30%

Futures*

0.05%

0.04%

0.03%

*Note Options brokerage is calculated 1% of Gross Premium Amt or Rs. 75/- per lot whichever is
higher
Minimum margin as applicable under this scheme is required
# Note: Options Turnover is not to included while computing Monthly Turnover

65

Classic Plus
Particulars

Classic Plus

Fee

Rs. 600

Validity Period

6 Months

Brokerage
Monthly Turnover# Monthly Turnover#

Monthly Turnover#

(Less than 1 cr.)

(1 cr. to 5 cr.)

(more than 5 cr.)

Intraday

0.05%

0.04%

0.03%

Delivery

0.50%

0.40%

0.30%

Futures*

0.05%

0.04%

0.03%

Trade Type

Freedom Account

Schemes

Charges

Monthly Subscription

Rs.500

Quarterly Subscription

Rs.1,400

Half-yearly Subscription

Rs.2,500

66

Annual Subscription

Rs.4,000

(Scheme Subscription Payble in advance) **

Free Volumes Allowed

Daily Free Intraday & Derivative Volumes

Rs. 3,00,000

Daily Free Delivery Volumes

Rs. 40,000

Calculation of Free Volumes

Segment

NSE

NSE

BSE

BSE

Futures

T2T

Cash

T2T

100,000

100,000

N.A.

100,000 N.A.

300,000

10,000

N.A.

10,000

10,000

40,000

NSE cash

Total

Free
Intraday/Derivative
Volumes

Brokerage (on daily volumes)#

Intraday / Derivative

Delivery

67

10,000

Brokerage
Volume (in Rs.)

Volume (in Rs.)

Brokerage Rate

Rate
0%

Upto 10,000

0%

0.03%

10,000 - 1 Lakh

0.30%

0.02%

1 Lakh - 10 Lakh

0.20%

0.015%

10 Lakh - 30 Lakh

0.15%

0.01%

Above 30 Lakh

0.10%

1 Lakh
- 10 lakh
10 Lakh
- 1 Cr
1 Cr - 3
Cr
Above
3 Cr

** Non Refundable
# Brokerage will be calculated on exchange wise and segment wise basis. Brokerage on
trades above free volumes will be charged at the flat rate of the slab in which the client falls
on any particular day.
For example: If intraday volume in NSE segment is Rs. 25,00,000/-, total brokerage would
be Rs. 480 {First 1 Lakh would be free and rest would be charged @0.02% as per the volume
slab; i.e(25,00,000 - 1,00,000)*0.02%}

68

ADVANTAGES OF ONLINE TRADING:

Many customers, who have chosen to trade shares online today, had at one
point of time been trading through offline brokers. After realizing the advantages of trading
shares online, they have switched over to online trading now. However, before choosing an
online trading site, all these sites should be compared in order to form a decision.
Advantages: Online trading has made it possible for any one to have easy and efficient access
to more reports and charts than was previously possible if one when to brokers office. Thus,
we have access to a lot more information online to self teach ourselves.
It eliminates the risk of bad deliveries, which in turn eliminates all costs and wastage of time
associated with follows up for rectification.

69

This reduction in risk associated with bad delivery has lead to reduction in brokerage to the e
extent of 0.1% by quite a few brokerage firms.
Screen based training facilitates the investor to keep a track of the transaction from the
source to the end. He can punch in the orders and see the results a t the bottom of the screen.
Thus, one can get instant trade confirmation.
Online trading has left room for smaller organization to complete with multinational
organization, since size is no longer a legit issue. Being online doesnt identify the size of
any particular organization.

Online trading has allowed companies to locate themselves where they want, as physical
location is not an issue any more. Companies can establish themselves according to their
gains and losses, for instance, where tax(sales and value-added taxes) is best suited to then
Online trading gives control to individual and they can exercise it over their accounts thus
comprehend what is gong on they trade. It is like going back to school and re-educating
oneself on how to trade online.
Individuals benefit by saving comparatively a lot more hen trading online as the cost per
trade is less.
Individuals can invest in a variety of products, unlike earlier when people bought bonds,
mutual fund, and stocks, for long-term basis. Now they can invest in stocks, and index

70

options, mutual funds, individual, government, corporate, municipal bonds, various types of
IRA account, mortgages and even insurance.
Online trading has made it possible for one to find investment options that were not available
in regular basis, like off beat net stocks, eccentric unique things and trading in global market

DISADVATNAGES OF ONLINE TRADING:

The ease and speed of online trading can give the investor a false sense
of security and encourage him to trade more frequently without paying and heed to market
basics like, reaching a company ore knowing the risk he is going to assume.
The concept of chat room, which has become very popular with the
investors, may provide them with misleading information. Chat room participants are often
paid to highlight certain stocks.
Online trading is not always instantaneous. In a rapidly changing market,
Orders maynotgetexecutedat the price shown on the computer screen.
Delay in execution unusually arise due to various technological choke
points like the internet slowing down due to heavy traffic or if the modem, computers and

71

internet service providers (ISP) is malfunctioning. If the investor does not factor in these
technology lags while entering into a volatile market, he may suffer heavy losses.
The investor should formularize himself with the order entry screen and
the software provided to them. Any mistakes made while inputting an order can cause him
significant financial loss. Moreover, he will be responsible for any losses caused, he become
liable for payment of securities.
Active trading is dependent upon a number of specialized software
systems. Disruption or failure of any of ht electronic systems utilized may leave the investor
with an open position at which time losses can occur.

INTERNET TRADING AND ONLINE INVESTING

INTERNET FRAUD
HOW TO AVOID INVESTMENT SCAMS
The serves as an excellent tool for investors, allowing them to easily and inexpensively
research
investment opportunities. But the internet is also an excellent tool for fraudsters. Thats
why you
should always think twice before you invest your money in any opportunity you learn about
through
the internet.
This alert tells you hoe to spot different types of internet fraud, what the SEC is
doing to
fight internet investment scams, and how to use the internet to invest wisely.

72

Navigating the Frontier: where the frauds are

The internet allows individuals or companies to communicate with a large audience
without
spending a lot of time, effort, or money. Anyone can reach ,ten thousands of people by
building an
internet website, posting a message on an online bulletin board, entering a discussion in a
live chat
room, or send help investors gather valuable information, some online newsletters are tools
for fraud.
Some companies pay the people who write online newsletters cash or securities to
tout or
recommend their stocks .While this isnt illegal, the federal securities laws require the
newsletters to
disclose who paid them, the amount and the type of payment. But many fraudsters fail to do
so.
Instead, they will lie about the payments they received, their fraudsters fail to do so. Instead,
they will
lie about the payments they received, their independence, their so-called research
their track

and

records. Their newsletters masquerade as sources of unbiased information, when in fact they
stand to
profit handsomely if they convince investors to buy or sell particular stocks.
Some online newsletters falsely claim to independently research the stocks they
profile.
others spread false information or promote worthless stocks. The most notorious sometime
scalp
the stocks they type, driving up the price of the stock with their baseless recommendations
and then
selling their own holding at high prices and high profits. To learn how to separate the good
from the
bad, read our tips for checking out newsletters.

73

E-mail Spams
Because spam-junk e-mail- is so cheap and easy to create, fraudsters increasingly use it
to find
investors for bogus investment schemes or to spread false information about a company.
Spam allows
the unscrupulous to target many more potential investors than cold calling or mass mailing.
Using a
bulk e-mail program, spammers can send personalized messages to thousands and even
millions of
internet users at a time.

How To Use The Internet Wisely

If you want to invest wisely and steer clear of frauds, you must get the facts. Never
ever, make
an investment based solely on what you read in an online newsletter or bulletin board
posting,
especially if the investment involves a small, thinly-traded company that isnt will known
and even
think about investing on your own in small companies that dont file regular reports with
the SEC,
Unless you are willing to investigate each company thoroughly and to check the truth of
every
statement about the company .For instance, youll need to:
Get financial statements from the company and be able to analyze them.
Verify the claims about new product development or lucrative contracts.

74

 Call every supplier or customer of the company and ask if they really do business
with the
company.
Check out the people running the company and find out if they have ever made
money for
investors before and it doesnt stop there.

Online Investment Fraud:

New Medium, same old scam
The types of investment fraud seen online mirror the frauds perpetrated over the
phone or through the mail. Remember that fraudsters can use a variety of internet tools
to spread false information, including bulletin boards, online newsletters, spam, or chat
including internet relay chat or web page chat. They can also build a glitzy, sophisticated web
page. All of these tools cost very little money and can be found at the fingertips of
fraudsters. Consider all offers with skepticism. Investment frauds usually fit one of the
following categories
:

The pump and Dump Scam

Its common to see messages posted online that urge readers to buy a stock quickly or
tell you to sell before the prices goes down. Often the writers will claim to have inside
information about an impending development or to use an infallible combination of
economic and stock market data to pick stocks. In reality, they may be insiders or paid
promoters who stand to gain by selling their shares after the stock price is pumped up by
gullible investors. Once these fraudsters sell their shares and stop hyping the stock, the price
typically falls and investors lose their money. Fraudsters frequently use this plan with
small, thinly traded companies because its easier to manipulate a stock when theres little or
no information available about the company.

The Pyramid
Be wary of messages that read .How To Make Big Money From Your Home
Computer!!! One

75

online promoter claimed that investors could turn 45 into$60000 in just three to six weeks,
in reality,
this program was nothing more than a products toted do not even exist-they are merely
scams, be
wary of opportunities that promise spectacular profits or guaranteed returns. If the deal
sounds too
good to be true, then it is probable.

Off-Shore Frauds
At one time, off-shore schemes targeting U.S. investors cost a great deal of money
and were
difficult to carry out. Conflicting time zones, differing currencies and the high costs of
international
telephone calls and overnight mailings made it difficult for fraudsters to prey on U.S.
residents. But
the internet has removed those obstacles. Be extra careful when considering any
investment
opportunity that comes from another country, because its difficult for U.S. law enforcement
agencies
to investigate and prosecute foreign frauds.

CHAPTER 5
Theoretical frame work

76

MEANING OF ONLINE TRADING

77

,online trading refers to buying and selling securities via the Internet or
other
electronic means such a wireless access, touch-tone telephones, and other new technologies.
Technology is revolutionizing every field of human endeavor and activity.

The rapid growth in number, volume and value of securities in the Indian capital Market
expose the limitation of handling and dealing in securities in physical /Paper mode ; the
shortcomings of the market became manifest in terms of bad deliveries ,delays in transfer
and irregular settlement etc.
Primary market is also referred to as New Issue Market. Primary market operations include
new issues of shares by new and existing companies, further and right issues to existing
shareholders, public offers, and issue of debt instruments such as debentures, bonds, etc.

The number of listed companies rose from 2265 in 1980 to over Rs. 6800 at the end of 1998 the
daily turnover accordingly shot up Rs. 25 crores in 1979-80 to about Rs 260 crores in
1994-95 . The number of shareholders increased from 10 lakhs in 198 to 1.5 crore in 1998.
The number of share holder and investors in mutual funds has also risen
sharply from about 2 million to over 40 million during this period , rendering thisnation to the
position of having the second largest investor population in the world next only to USA.
It eliminates the risk of bad deliveries, which in turn eliminates all costs
and wastage of time associated with follow up for rectification.
This reduction in risk associated with bad delivery has lead to reduction in
Brokerage to the extent of 0.5% by quite a few brokerage firms.
Screen-based trading facilitates the investor to keep a track of the
transaction from the source to the end .He can punch in the orders and see the

78

 results at the bottom of the screen .Thus,one can get instant trade confirmation. The
investor should familiarize himself with order entry screen and the software
provided to him. Any mistake made while inputing an order can cause him
significant
financial loss. Moreover, he will be responsible for any losses caused by lack of
knowledge
and/or experience .when an order is placed and executed, he becomes liable for
payment of
the securities.
Active trading is dependent upon a number of specialized
Disruptions

software

systems.

or failure of any electronic systems utilized may lead the investor with an open
position at
which time losses can occur.

Definition of online trading.

The increasingly popular activity of buying and selling securities over the internet, or to a
lesser extent, through a broker's proprietary software.

79

CHAPTER 6
DATA ANALYSIS AND INTERPRETATIONS

1.

Are you in favour of Demat account?

Particulars

Yes

No

80

Investors response
% of the sample

25
75

7
25

INTERPRETATION:
From the above graph we can say that 77% of the people are in favour of demat account and
20% of them are not in favour of it.

2.Which depository do you take into consideration for accessing Demat account?
Particulars
Investors response
% of the sample

NSDL
23
77

CDSL
7
23

INTERPRETATION:

81

From the above graph we can say that 77%of the people are in favour of NSDL depository
and 23% are in favour of CDSL depository.

3. Are you aware of online trading?

Particulars
Investors response
% of the sample

Yes
27
90

No
3
10

INTERPRETATION:
From the above graph we can say that 90% of the people are aware of online trading and
10% of them are not aware of it.

4.Which is the most preferable attribute while investing? Comment

Particulars
Investors response
% of the sample

Rate of return
13
43

Liquidity
11
40

82

Convenience
2
7

Regulation
3
10

INTERPRETATION:
From the above graph we can say that Liquidity(43%) is most preferable among all the
attributes.

5.Are you aware the nature of risk involved in online trading?

Particulars
Investors response
% of the sample

Yes
25
83

No
5
17

83

INTERPRETATION:
From the above graph we can say that (83%)majority of the people are aware of risk
involved in online trading.
6.Do you check brokers activity involved in online trading?
Particulars
Investors response
% of the sample

Yes
15
50

No
15
50

INTERPRETATION:
From the above graph we can say that 50% of the investors check brokers activities and
50% do not check.

84

5.Are you aware the Online trading Soft Ware Which is provided By Your Broker?
Particulars
Investors response
% of the sample

Yes
25
83

No
5
17

INTERPRETATION:

From above picture showing some investors not aware of the online trading terminal
only 5% of people of not aware of that

85

Question number 4

Age of the various persons

Age

Number of persons

20-29

42

30-39

28

40-49

20

50-59

10

86

PERSONS OF VARIOUS AGE GROUPS

Question number 5

87

Occupation

Occupation

Number of
persons

percentage

Government
employee

29

21

Private
employee

46

34

Business

41

30

retired

21

15

OCCUPATION OF VARIOUS PERSONS

88

89

Question number 7
In my survey I met nearly 300 people in which 180replied
and out of that 120 people is having d-mat account in various
companies.
Especially people are trading in these companies

Name of the

Number of people

company

SHIRAM INSIGHT

30

ICICI

50

OTHERS

20

90

Question number 7
This was the main question of this questionnaire. It clearly
states that on what factor people are opening a d-mat
Account ?
Factors

Number of

percentage

people
Low brokerage

45

charges

91

45

Company Image

25

25

Public or private

15

15

Extra benefits

10

10

Others

FACTORS STATING REASONS FOR PEOPLE

OPENING DEMAT ACCOUNTS

92

Question number 9
People gave ratings depending upon their satisfaction and
experience with that particular organization.

Name of the

Rating

Company
A
ICICI
93

Name of
company

Brokerage
charges

Shiram Insight

0.40

SHIRAM
ICICI
INSIGHT

0.70
B

Others
OTHERS

0.70

The brokerage charges of Shiram Insight, ICICI & Others

94

PERSONAL INFORMATION
Name:
Age:
Gender:
Income Level:
Below 5000

5000-10000

10000-15000

15000&above

QUESTIONAIRE
1. What type of person you?
A. Merchant
C. Others

B. Employee

2. If merchant or Employee how many years you have been doing this?
A. 1-5 years
C. 10-20 years

B. 5-10 years
D. Above 20 years

3. Do you invest in any type of shares?

Yes

No

4. If yes how much do you like to invest per month?

A. Less then 10000

B. 10000-50000
95

C. 50000-100000

D. Above 10000

5. In which type of shares you are interested?

A. Highly profit shares

B. Low profit shares

6. Have you heard about trading account?

A. Yes

B. No

7. Do have any trading account?

A. Yes
C. Done & left

B. No

8. If Done & Left why?

A. Due to Losses
C. Companys services

B. Settlement Problem
D. Other Reasons

9. If yes with which Company you Trade?

A. Shiram insight
C. Kotak

B. Karvy
D. Others

10. How do you feel about this market?

A. Very Good
C. Average

B. Good
D. Bad

11. Do you know about online trading Services?

Yes

No

12. How did you come to know about Shiram insight?

Friends

Advertisements

News papers

13. How did your rating for Shiram insight Services?

96

others

14. What factors you look upon when you are opening a demat account?
Low brokerage charges

Company Image

Public Company

Extra Benefits

Private Company

others specify

15. What do you think is the best aspect of Shiram insight?

Low brokerage charges

Extra Benefits

Others specify ____________________________________

16. Which type of following Services do you prefer from Shiram Insight?
A. Telephone Services
C. Online services

B. Postal Services
D. Personal Services

17. How often you need Your Account Updates?

A. Once in a day
C. Once in a week

B. Twice in a day
D. Twice in a week

18. Are you familiar with Shiram Insight?

A. Yes

B. No

19. Are you interested in Opening Account with Shiram Insight?

A. Yes

B. No

C. Existing Client

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20. What is your opinion about advertisements strategy of Shiram insight?

(In relevance to present line of advertisements)?
Highly Influencing

Just Attractive

Just Noticeable

cannot say

21. Do you like to suggest Shiram Insight service to others?

Yes

No

22. Your comments and recommendations on Shiram Insight service:

________________________________________________________________
__________________________________________________________

CHAPTER- 7
FINDING AND SUGGESTIONS

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SUGGESTIONS
The suggestion to exchange authorities is to take steps to educate investors about their rights
and obligation , try to increase investors confidence. I suggest the exchange authorities to be
vigilant to curb wide fluctuations of prices on the exchanges in the prices ,not attracting to
the genuine investors to the greater extents towards the market .Try to explain them how
fraud will take place so that they will be alert and they can take necessary steps to avoid the
frauds.

FINDINGS

The software or the systems used in online trading should be advanced and the
persons who operate should have minimum knowledge.

Due to invention of online trading here has been greater benefit to the investors as
they could buy/sell shares as and when required.

Most of the investors like to trade along with brokers.

It has to take necessary steps to attract the customers through the Internet.

Online trading is more powerful & advantageous than manual trading.

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CHAPTER 8

CONCLUSION

CONCLUSION

Border of the Regional Stock exchange(RSE) have suddenly been thrown to

intense competition from counter parts across the country.The RSEs have their
own advantages like being nearer to the retail investors and to let the RSEs
perish would be determined to stock market system there is no brokerage firms
with in India with national reach.Due to changes in technology RELIGARE
SECURITIES LTD has changed its trading activities into online trading system.
So that transactions will be performed efficiently.

Things have changed for the better with the RELIGARE SECURITIES LTD
going online coupled with endeavors to stream line the whole trading system, thing

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have changed dramatically over the last 3-4 years. New and advanced technologies
have breached geographical and cultural barriers and have brought the country wide
market to doorstep .
In the present scenario and to compete the RSEs would require sound
infrastructure and trading as per international standards . The concept of
business have changed and today it has become service to clients or to provide
the best possible service to clients or to engage into new business practices in
the other exchanges of the world .
In order to stem the flow of business from the regional center to the metro
centers and to impart liquidity introductions of online trading is necessary
.i.e demand of the day presently.
Tips are available for trading online and to invest wisely, so that the investors can
avoid the frauds .
The introductions of online trading would influence in the investors resulting in
an Increase in the business of the exchange. It has helped the brokers handling a
vast amount of transactions and this can be achieved through delivering and
settlement system with adequate protections to investors system. The trading of
RELIGARE SECURITIES LTD on thefirst day was Rs 1.8 crores .
Due to invention of online trading there has been greater benefit to the investors
as they could sell /buy shares as and when required and that to with online
trading will inspire confidence in investors resulting in increase in business of
exchange.
The regional stock exchange has a greater scope than compared to the earlier time
because of invention of online trading.
The concept of business has changed , today it is a service oriented industry
hence the survival would require them to provide the best possible service to the
client .

The longer trading time has helped the investor as well as the broker to take
much interest in the trading of the securities as they have got extra time to take
in the security market.

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 The existing system can be further improved by introduction of stop loss facility
, which will help reduced investors losses.
Also there is need for exchanges to exchange to set up standing committee into
break down of online trading .

5. BIBLIOGRAPHY:

5.1 C.R. KOTHARI, Research Methodology, Revised II Edition,

New Age International Publishers.

WWW.NSEINDIA .COM

WWW.BSEINDIA .COM

WWW.MCXINDIA.COM

WWW.NCDEXINDIA.COM

SITES OF ONLINE TRADING

WWW.ICICIDIRECT.COM
WWW.KARVYONLINE.COM

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 WWW.NETWORTH STOCKBROKING.COM
WWW.ECOINS.COM
WWW.JPMORGON.COM
WWW.MONEYPORE.COM
WWW.5PAISE.COM
WWW.CYBERCASH.COM
WWW.KOTAKSTREET.COM
WWW.SHAREKHAN.COM
WWW.EQUIS.COM
WWW.INDIANBULLS.COM

ANNEXURE

Questionnaire
7.1 Is trading through the Internet safe?

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The safety of transactions on the Internet depends on the encryption system used.
The better this transaction system, the more difficult it is for any person to hack the
site. Internationally, the best system available today is the 128-bit encryption, a
system, which evens the Pentagon uses. The few online share-trading sites in the
country equipped with this 128-bit encryption. Secondly, you too can ensure the
safety of the transactions online. You normally get a secured user id and password,
the secrecy of which is to be maintained entirely by you. Thirdly, if the transaction
system requires no manual intervention, you further improve the safety in the
transactions. Among Indian sites, re is one of the very few fully integrated online
trading sites. This enables the elimination of the possibility of any manual
intervention. Which means orders are directly sent to the exchange ensuring that you
get the best and right price.

7.2 What about security of my money demat shares and my transaction document?
In systems where the broking, banking and demat accounts are completely integrated, your
money remains in your own bank account, and does not get transferred to the broker's pool
account.
7.3 Is trading through the Internet a difficult and cumbersome process?
The experience of trading through Internet depends a great deal on the type of
product offered by the site. Say, for example, one of the issues bothering you may
be tired of the paperwork involved after every trade in writing cheques or TIFDs.

You would then seek a system that eliminates these processes.

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In online trading sites, the greater the back-end integration of the system, the
greater the amount of work the sites do for you, therefore greater the convenience
available to you.
For example, incase of RELIGARE SECURITIES LTD, your broking account,
bank account and demat account are linked electronically. So when you punch in
a buy or sell order, the system checks the funds/ shares availability and
automatically credits/debits the accounts once the order is executed by the
exchange.
7.4 But I am not comfortable with Internet, or with finance, how can online
trading be easy for me?
Contrary to common perceptions, trading through Internet does not require either
any expertise in working on the computer, or any special financial skills.
You could try the demo (demonstration) of the online trading sites like SHRI
RAM INSIGHT to find out why others like you, with little or no knowledge about
the Internet or finance, have switched on to online trading. Or you could attend
the demonstrations sessions held by such websites in your city.

7.5 Is trading through the Internet a costly affair?

The convenience provided by online trading is even then worth the costs
involved.
And online trading sites are not that costly. For example, a trader can trade shares
on margin at rates as low as 0.10%*on Shriram Insight and if one wishes to trade
in cash, then the rates applicable are as low as 0.1%*.

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However, it is important to compare various online trading sites on brokerage

rates, inclusive of all sub-charges.

7.6 I am pretty satisfied with my present broker who serves me offline. Why
should I choose to go online to trade shares?
Many of those customers who have chosen to trade shares online today, had at
one point of time been trading through offline brokers, just like you are today.
They took a chance to go online and trade shares. After realising the advantages
of trading shares online, they have shifted to online trading now. In fact, there are
more than lakh customers who have already opened an account Shriram Insight
Just try trading shares after opening an account with any online trading site.
However, before choosing an online trading site, please compare all such websites
and then make a decision.
7.7 How frequently are the prices updated at all these online trading sites?
The tickers available at online trading sites provide instantaneous updates. Also,
some websites can offer to transact in those shares instantaneously and with
convenience.
7.8How can I be sure that I shall be trading at a price I want to or at a price
appearing in the website?
The solution to your problem could be provided in different ways by different
online share trading sites. At Shriram Insight, for any trade

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