introduction of online trading

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SRM UNIVERSITY , NCR CAMPUS , MODI NAGAR Page 1

SUMMER TRAINING PROJECT

ON

GROWTH OF INDIAN ONLINE TRADING INDUSTRY WITH SPECIAL

REFERENCE TO STANDARD CHARTERED SECURITIES (INDIA) LIMITED

Submitted In Partial Fulfillment of the Requirements of the Degree of

Master of Business Administration

Academic Guide Submitted By:

Faculty Name: Ms. SWATI BHATT Student Name: RANVEER KUMAR PANDEY

Designation: PROFESSOR Registration no: 3511030073

SRM UNIVERSITY MBA (BATCH 2010-2012)

NCR Campus, Modinagar


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TABLE OF CONTENTS

Subject Page No.

Declaration 3

Acknowledgement 4

Faculty Certificate 5

Company Certificate 6

Introduction ofOnline Trading 7-28Company Profile 29-49

Objective of The Study 50

Research Methodology 51-54

Collection of Data 55

Findings & Analysis.. 56-69

Conclusion .... 70

Recommendations.. 71-72

Annexure i (Questionnaire) 73-76

Annexure ii (Bibliography) 77


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DECLARATION

I RANVEER KUMAR PANDEY , registration no. 3511030073 , MBA programme, SRM University,

batch of 2010-2012 do hereby solemnly declare that this dissertation is an original work of mine and

this has not been submitted to any other institute/University towards partial fulfillment of any

other degree/diploma.

(Signature)

RANVEER KUMAR PANDEY

Date:


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ACKNOWLEDGEMENT

I express my sincere thanks to Dr. Manoj kumar pandey (DEAN) , Dr. N.C. Bansal, HOD (MBA), Ms.

Swati Bhatt (MENTOR & FACULTY) SRM UNIVERSITY. Who gave me professional advice from

time to time.

I express my sincere gratitude to my industry guide Mr. LAVI JAIN, City Manager, STANDARD

CHARTERED SECURITIES (INDIA) LIMITED, for his able guidance, continuous support and

cooperation throughout my project, without which the present work would not have been possible.

I would also like to thank the entire team of STANDARD CHARTERED SECURITIES (INDIA)

LIMITED, for the constant support and help in the successful completion of my project.

Signature

RANVEER KUMAR PANDEY


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CERTIFICATE

(Will be furnished by faculty guide)

TO WHOM IT MAY CONCERN

This is to certify that Mr. RANVEER KUMAR PANDEY, Registration no. 3511030073 of batch has

completed his summer training report and duly submitted it after my approval

SWATI BHATT

Designation

Date:_____


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COMPANY CERTIFICATE

( To Be Provided by Company)


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INTRODUCTION OF ONLINE TRADING

As per the title suggest the project report has been prepared regarding the growth of Indian

online trading industry. Online trading was initiated by NSE in India and soon after the other

exchanges also followed.

What does online trading means?

The act of placing buy/sell orders for financial securities and/or currencies with the use of a

brokerages internet-based proprietary trading platform. The use of online trading increased

dramatically in the mid to late 90s with the introduction of affordable high-speed computers

and internet connections. Stocks, bonds, options, futures, commodities and currencies.

Online trading in India is the internet based investment activity that involves no direct

involvement of the broker. There are many leading online trading portals in India along with

the online trading platforms of the biggest stock houses like the National stock exchange and

the Bombay stock exchange. The total portion of online share trading India has been found to

have grown from just 3 per cent of the total turnover in 2003-04 to 16 per cent in 2006-07.

Facilities of the Online trading in India

The investor has to register with an online trading portal and get into an agreement with the

firm to trade in different securities following the terms and conditions listed down on the

agreement. The order processing is done in correct timings as the servers of the online trading

portal are connected to the stock exchanges and designated banks all round the clock. They

can also get updates on the trading and check the current status of their orders either through

e-mail or through the interface. Brokerages also provides research content on their websites,

such that the clients can take their own decisions on stocks before investing.


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There was a major boom in year 2000 when lots of online trading companies came with a

bang but only few were survived because of lack of computer knowledge and low internet

penetration among traders. There are two types of online trading companies one is the

banking online trading companies and the other is non-banking trading. A few examples of

banking online trading companies are HDFC securities, ICICI direct.com, Standard Chartered

securities etc.

On the other hand non -banking trading companies are Religare securities, Angel Broking,

Reliance Money, Share khan, India bull, IIFL(India Info Line) etc. A project was undertaken

to determine the growth of various online trading companies in India in terms of trade doneby them through online and services provided by them. Major findings indicate that out of a

survey of 100 respondents it was seen that most of the investors prefer online trading because

of few major factors such as time saving convenience, protection through Freudian brokers

etc. Although during my research project Ive seen that most of the respondents feel online

trading, a secure way of investing into stock market still a few of them feel that its unsafe and

a bit complicated but they posses information about online trading.

Today the online trading companies having cut-throat competition in their offering whose

brokerage discounts lower margin money and zero balance account. Due to the rising

education awareness and use of internet there is a huge potential for online trading in future

and companies must come up with innovative offerings to capture the untapped market.


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Following are the salient features of online trading :-

The share market is full of uncertainty and no one is quite sure about the changes inthe share market and the following changes in different shares.

These days, it is not enough for banks to just offer online banking services. The userexperience and how information is presented is equally important. Having a website

that is visually appealing, easy to use, and meet customers functional needs is the key

to total customer satisfaction.

The people who are into share trading for quite sometime and had invested theirmoney in the share market knows well about the share market particularly if we talk

about the long term.

The real question is about the short term and intraday market and how well andaccurately the broking houses provide the information through online.

The people who do not know about the share market and are willing to invest in theshare market are the one who are in greater need for this type of information and can

also get attracted to the share market if they get correct information through internet.

Rising of education and usage of internet are the huge potential for online trading, andour companies also come up with innovative offerings to capture the untapped market.

Internet is very easy platform to attract the most number of customers


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INDIAN STOCK MARKETS

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 yearsago. With the liberalization of the Indian economy, it was found inevitable to lift the Indian

stock market trading system on par with the international standards. There are 25 stock

markets all over the country, the most important of which are,

1) Bombay stock exchange

2) National stock exchange

BOMBAY STOCK EXCHANGE

FOUNDED1875

LOCATION - Mumbai, India

OWNER - Bombay Stock Exchange Limited

KEY PEOPLE - Madhu Kannan (CEO & MD)

NO. OF LISTINGS - 5085

MARKET CAP - US$1.63 trillion (Dec, 2010)

INDEXES - BSE Sensex
http://en.wikipedia.org/wiki/Chief_Executive_Officerhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/BSE_Sensexhttp://en.wikipedia.org/wiki/BSE_Sensexhttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Managing_Directorhttp://en.wikipedia.org/wiki/Chief_Executive_Officer


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The Bombay Stock Exchange (BSE) (formerly, The Stock Exchange, Mumbai; popularly

calledBombay Stock Exchange, orBSE) is the oldest stock exchange in Asia and has the third

largest number of listed companies in the world, with 4900 listed as of Feb 2010.

It is located at Dalal Street, Mumbai, India. On Feb, 2010, the equity market capitalization of

the companies listed on the BSE was US$1.28 trillion, making it the largest stock exchange in

South Asia and the 12th largest in the world.

With over 4900 Indian companies listed & over 7700 scrips on the stock exchange, it has a

significant trading volume. The BSE SENSEX (SENSitive indEX), also called the "BSE 30",is a widely used market index in India and Asia. Though many other exchanges exist, BSE

and the National Stock Exchange of India account for most of the trading in shares in India.

HOURS OF OPERATION

BSE's normal trading sessions are 9:00 - 15:30 on all days of the week except Saturdays,

Sundays and holidays declared by the Exchange in advance.
http://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Dalal_Streethttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/1000000000000_(number)http://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/List_of_stock_exchangeshttp://en.wikipedia.org/wiki/BSE_Sensexhttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/National_Stock_Exchange_of_Indiahttp://en.wikipedia.org/wiki/Asiahttp://en.wikipedia.org/wiki/BSE_Sensexhttp://en.wikipedia.org/wiki/List_of_stock_exchangeshttp://en.wikipedia.org/wiki/South_Asiahttp://en.wikipedia.org/wiki/1000000000000_(number)http://en.wikipedia.org/wiki/Market_capitalizationhttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Dalal_Streethttp://en.wikipedia.org/wiki/Stock_exchange


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LIST OF BSE SENSEX COMPANIES

CODE NAME SECTOR

500410 ACC HOUSING500103 BHEL CAPITAL GOODS

532454 BHARTI AIRTEL TELECOM

532868 DLF UNIVERSAL LTD HOUSING

500300 GRASIM INDUSTRIES DIVERSIFIED

500010 HDFC FINANCE

500180 HDFC BANK FINANCE

500440 HINDALCO INDUSTRIES METAL & MINING

500696 HINDUSTAN UNIVERSAL LTD FMCG

532174 ICICI BANK FINANCE500209 INFOSYS INFORMATION TECHNOLOGY

500875 ITC LTD FMCG

500532 JAIPRAKASH ASSOCIATES HOUSING

500510 LARSEN&TOUBRO CAPITAL OODS

500520 MAHINDRA&MAHINDRA LTD TRANSPORT EQUIPMENTS

532500 MARUTI UDYOG TRANSPORT EQUIPMENTS

532555 NTPC POWER

500312 ONGC OIL & GAS

500359 RANBAXY LABORATORIES HEALTH CARE

532712 RELIANCE COMMUNICATIONS TELECOM

500325 RELIANCE INDUSTRIES OIL & GAS

500390 RELIANCE INFRASTUCTURE POWER

500112 STATE BANK OF INDIA FINANCE

500900 STERLITE INDUSTRIES METAL,METAL PRODUCTS &MINING

524715 SUN PHARMACEUTICAL INDUSTRIES HEALTH CARE

532540 TATA CONSULTANCY SERVICES INFORMATION TECHNOLOGY

500570 TATA MOTORS TRANSPORT EQUIPMENTS500400 TATA POWER POWER

500470 TATA STEEL METAL PRODUCTS&MINING

507685 WIPRO INFORMATION TECHNOLOGY


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India Stock Market Index

In India, the main stock market index, the SENSEX has turbulent time in past two months as

its traders have lost more than $ 3 billion in market due to glooming fear of another

recession.


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NATIONAL STOCK EXCHANGE OF INDIA

FOUNDED1992

LOCATION - Mumbai, India

OWNERNational Stock Exchange Limited

KEY PEOPLE - Mr.Ravi Narain - Managing Director

NO. OF LISTINGS - 1552

MARKET CAP - $ 1.59 trillion (Dec 2010)

INDEXES -S&P CNX Nifty,CNX Nifty Junior,S&P CNX 500

The National Stock Exchange of India Limited is aMumbai-basedstock exchange. It is the

largest stock exchange in India in terms of daily turnover and number of trades, for both

equities and derivative trading. NSE has a market capitalization of around $ 1.59 trillion(Dec,

2010). Though a number of other exchanges exist, NSE and theBombay Stock Exchangeare

the two most significant stock exchanges in India, and between them are responsible for the

vast majority of share transactions. The NSE's key index is theS&P CNX Nifty, known as the

Nifty, an index of fifty major stocks weighted by market capitalization.

In the fast growing Indian financial market, there are 23 stock exchanges trading securities.

The National Stock Exchange of India (NSE) situated in Mumbai - is the largest and mostadvanced exchange with 1552 companies listed and 726 trading members.
http://en.wikipedia.org/wiki/S%26P_CNX_Niftyhttp://en.wikipedia.org/wiki/S%26P_CNX_Niftyhttp://en.wikipedia.org/wiki/S%26P_CNX_Niftyhttp://en.wikipedia.org/wiki/CNX_Nifty_Juniorhttp://en.wikipedia.org/wiki/CNX_Nifty_Juniorhttp://en.wikipedia.org/wiki/CNX_Nifty_Juniorhttp://en.wikipedia.org/wiki/S%26P_CNX_500http://en.wikipedia.org/wiki/S%26P_CNX_500http://en.wikipedia.org/wiki/S%26P_CNX_500http://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/S%26P_CNX_Niftyhttp://en.wikipedia.org/wiki/S%26P_CNX_Niftyhttp://en.wikipedia.org/wiki/S%26P_CNX_Niftyhttp://en.wikipedia.org/wiki/S%26P_CNX_Niftyhttp://en.wikipedia.org/wiki/Bombay_Stock_Exchangehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Stock_exchangehttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/S%26P_CNX_500http://en.wikipedia.org/wiki/CNX_Nifty_Juniorhttp://en.wikipedia.org/wiki/S%26P_CNX_Nifty


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The NSE is owned by the group of leading financial institutions such as Indian Bank or Life

Insurance Corporation of India. However, in the totally de-mutualised Exchange, the

ownership as well as the management does not have a right to trade on the Exchange. Only

qualified traders can be involved in the securities trading.

The NSE is one of the few exchanges in the world trading all types of securities on a single

platform, which is divided into three segments: Wholesale Debt Market (WDM), Capital

Market (CM), and Futures & Options (F&O) Market. Each segment has experienced a

significant growth throughout a few years of their launch. While the WDM segment has

accumulated the annual growth of over 36% since its opening in 1994, the CM segment has

increased by even 61% during the same period.

The National Stock Exchange of India has stringent requirements and criteria for the

companies listed on the Exchange. Minimum capital requirements, project appraisal, and

company's track record are just a few of the criteria. In addition, listed companies pay variable

listing fees based on their corporate capital size. The National Stock Exchange of India Ltd.

provides its clients with a single, fully electronic trading platform that is operated through a

VSAT network. Unlike most world exchanges, the NSE uses the satellite communication

system that connects traders from 345 Indian cities. The advanced technologies enable up to 6

million trades to be operated daily on the NSE trading platform.


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MARKETS

Currently, NSE has the following major segments of the capital market:

Equity Futures and Options Retail Debt Market Wholesale Debt Market Currency futures Mutual funds Stocks lending and borrowings

HOURS

NSE's normal trading sessions are conducted from 9:00 am India Time to 3:30 pm India Time

on all days of the week except Saturdays, Sundays and Official Holidays declared by the

Exchange (or by the Government of India) in advance. The exchange, in association with BSE

(Bombay Stock Exchange Ltd.), is thinking of revising its timings from 9.00 am India Time to

5.00 pm India Time.

NSE new market timing from Jan 04, 2010 is 9:00 am till 3:30 pm India Time.


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Nifty 50 LIST OF NSE COMPANIES

NAME SECTORS

ABB Ltd. Electrical equipment

ACC Ltd Cement and cement productsAmbuja Cements Ltd Cement and Cement ProductsBajaj Auto Ltd 2 and 3 WheelersBharat Heavy Electricals Ltd Electrical EquipmentBharat Petroleum Corporation Ltd RefineriesBharti Airtel Ltd. Telecommunication- ServicesCipla Ltd. PharmaceuticalsDr. Reddy's Laboratories Ltd PharmaceuticalsGAIL (India) Ltd. GasGlaxosmithkline Pharmaceuticals Ltd. PharmaceuticalsGrasim Industries Ltd. Cement and Cement Products

HCL Technologies Ltd. ComputersSoftwareHDFC Bank Ltd. BankHero Honda Motors Ltd. Automobiles - 2 and 3 WheelersHindalco Industries Ltd. AluminiumHindustan Petroleum Corporation Ltd. RefineriesHindustan Unilever Ltd. DiversifiedHousing Development Finance Corporation

Ltd.

Finance-Housing

I T C Ltd. CigarettesICICI Bank Ltd. BanksInfosys Technologies Ltd. ComputersSoftware

Larsen & Toubro Ltd. EngineeringMahanagar Telephone Nigam Ltd. TelecommunicationServicesMahindra & Mahindra Ltd. Automobiles - 4 wheelersMaruti Udyog Ltd. Automobiles - 4 wheelersNTPC Ltd. PowerNational Aluminium Co AluminiumOil & Natural Gas Corporation Ltd Oil Exploration/ProductionPunjab National Bank BanksRanbaxy Laboratories Ltd PharmaceuticalsReliance Communications Ltd. TelecommunicationServicesReliance Energy ltd. Power

Reliance Industries Ltd RefineriesReliance Petroleum Ltd RefineriesSatyam Computer Services Ltd. ComputersSoftwareSiemens Ltd. Electrical EquipmentState Bank of India BankSteel Authority of India Ltd. Steel and Steel ProductsSun Pharmaceutical Industries Ltd. Pharmaceuticals


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Suzlon Energy Ltd Suzlon Energy LtdTata Consultancy Services Ltd. ComputersSoftwareTata Motors Ltd Automobiles - 4 WheelersTata Power Co. Ltd. Power

Tata Steel Ltd. Steel and Steel ProductsUnitech Ltd. ConstructionVidesh Sanchar Nigam Ltd TelecommunicationServicesWipro Ltd ComputersSoftwareZee Entertainment Enterprises Ltd Media & Entertainment


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Secondary Market

Exchanges in the country offer screen based trading system. There were 9,772 tradingmembers registered with SEBI as at end March 2010. The market capitalization has grown

over the period indicating more companies using the trading platform of the stock exchange.The All-India market capitalization was around ` 61,704,205 million (US $ 1,366,952million)at the end of March 2010. The market capitalization ratio is defined as market capitalisationof stocks divided by GDP. It is used as a measure to denote the importance of equity marketsrelative to the GDP. It is of economic significance since market is positively correlated withthe ability to mobilize capital and diversify risk. The All- India market capitalisation ratioincreased to 94.20% in 2009-10 from 55.40% in 2008-09 (Table 1-4). At end of March 2010,NSE Market Capitalisation ratio fell to 76.28% during 2009-10 while BSE MarketCapitalisation ratio was 78.26%.

Cash Market

During 2009-10, the trading volumes on the equity segment of Exchanges increasedsignificantly by 43.26% y-o-y to 55,184,700 million (US $ 1,222,523 million) from`38,520,970 million (US $ 756,054 million) in 2008-09. The turnover during April 2010 September 2010 in the equity markets was ` 23,547,240 crore US $ 522,807 million.

Government Securities

The aggregate trading volumes in central and state government dated securities on SGL was `

9,018,385 crore in 2009-10 as compared with ` 6,645,488 crore in 2008-09.

Derivatives Market

The number of instruments available in derivatives market has gone up over the years. Tobegin with, SEBI had only approved trading in index futures contracts based on Nifty 50Index and BSE-30 (Sensex)Index. This was followed by approval for trading in options basedon these indices and options on individual securities. In 2008, the currency futures on USD-INR were introduced for trading and in year 2010, currency options on USD-INR wereallowed for trading.

The total exchange traded equity derivatives in Indian stock markets witnessed a turnover of `176,638,990 million (US $ 39,21,825 million) during 2009-10 as against ` 110,227,501million (US $ 3,335,698million) during the preceding fiscal year. Trading in currency futuresincreased from ` 1,622,724 million (US $ 31,849 million) in 2008-09 to ` 17,826,080 million(US $ 394,907 million) in 2009-10.


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Index Movement

The Nifty 50 index movement has been responding to changes in the governments economicpolicies, the increase in FII inflows etc. During the year 2009-10, however, the Nifty 50 Index

witnessed volatility6 of 1.88%. The point to point return of Nifty was 36.19% as of March2010.

Institutional Investments

During the last decade, foreign institutional investment flows grew multifold and by the year2009-10, the net investments by FIIs rose to ` 1,42,658 million (US $ 30,253 million) whilethe net investments by mutual funds rose to ` 1,700,760 million (US $ 37,677 million).6 Volatility is calculated as standard deviation of the Natural Log of returns the index for the

respective period.


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FACTORS RESPONSIBLE FOR GROWTH: -

Following are the factors responsible for growth of online trading :-

1. With the launch of high speed computers at affordable prices and availability of highspeed internet connection was basic reason to boost online trading.

2. With SEBI, there was a check on fraud. After Harshad Mehta Scam, small investorswere wary of investing in share market.

3. After dematerialization of shares, there was greater transparency in trading. Personstrading through his agent were fully aware about their investment.

4. With growing No. of Computer Training Institutes, people became more literate incomputer applications. So, it contributed immensely in growth of online trading.

5. Due to less time saving and accuracy in online trading, more people shifted fromoffline trading to online trading.

6. With entering of new players like Sharekhan and Kotak securities, completion hasbecome fierce. So, there is substantial reduction in brokerage charge.

7. Now, private as well as public banks are offering demat account for free. They are alsoproviding suggestions from experts. This has also increased online trading.

8. With increase in income, people are investing share market.9. India is attracting a handsome amount of investment in form of FDI. These all foreign

investors are trading in share market trading online


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SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI)

The securities and exchange board of India was constituted in 1988 under a resolution of

government of India. It was later made statutory body by the SEBI act 1992.according to this

act, the SEBI shall constitute of a chairman and four other members appointed by the centralgovernment. With the coming into effect of the securities and exchange board of India act,

1992 some of the powers and functions exercised by the central government, in respect of the

regulation of stock exchange were transferred to the SEBI.

OBJECTIVES AND FUNCTIONS OF SEBI

To protect the interest of investors in securities. Regulating the business in stock exchanges and any other securities market. Registering and regulating the working of intermediaries associated with securities

market as well as working of mutual funds.

Promoting and regulating self-regulatory organizations. Prohibiting insider trading in securities. Regulating substantial acquisition of shares and take over of companies. Performing such functions and exercising such powers under the provisions of capital

issues (control) act, 1947and the securities to it by the central government.


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SEBI GUIDELINES TO SECONDARY MARKETS: (STOCK EXCHANGES):

Board of Directors of Stock Exchange has to be reconstituted so as to include non-members, public representatives and government representatives to the extent of 50%

of total number of members.

Capital adequacy norms have been laid down for the members of various stockexchanges depending upon their turnover of trade and other factors.

All recognized stock exchanges will have to inform about transactions within 24 hrs.

DEPOSITORY PARTICIPANT AND ITS ROLE

A depository is an organization, formed to provide electronic depository facilities forsecurities trade. Securities are then held in the electronic form through the medium of

participants (DPs). The National Securities Depository Limited (NSDL) is the first

depository in India. The function of NSDL is regulated by the SEBI.

The depository is not just another custodian. The depository can legally transferbeneficial ownership. The main objective of depository is to reduce settlement risk by

minimizing paperwork involved in trading, settling and transferring securities.

To utilize the services offered by a depository, one must open an account with thedepository through a DP. The DPs are the link between the shareholders, the

company and NSDL.

Depending upon the DP, there may or may not be an opening amount fees towardstransaction and custody.


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Banks, financial institutions, custodians and stock brokers can become DPs subject totheir meeting certain requirements prescribed by NSDL and SEBI. NSDL publishes

the list of DPs registered with them, from time to time.

The DP will provide one with a passbook or statement of account periodically toinform on the current holdings.

One can even have a zero balance in their account. If one looses their statement of account they can inform the DP and obtain a duplicate. If the holdings in the statement are incorrect, one can approach the DP for

clarification.

If one receives an incorrect dividend amount, contact the company or registrar.

NSDL and CDSL are main depositories in India .

a) NATIONAL SECURITIES DEPOSITORY LTD(NSDL)In order to solve the problems associated with trading securities, NSE joined hand with the

Industrial Development Bank of India (IDBI) and the Unit Trust of India (UTI) to promote

dematerization of securities.

NSDL, a commenced operations in November 1996 and has since established a national

infrastructure of international standard to handle trading and settlement in dematerialized

form and thus completely eliminated the risk to investors associated with fake paper.


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b) CENTRAL DEPOSITORY SERVICES LTD (CDSL)

CDSL is another Depository after NSDL. Their promoters are Bombay Stock Exchange,

Standard Chartered Bank, State Bank of India, Bank of Baroda, and Union Bank of India,

Bank of Maharashtra, and Centurion Bank etc. As on 30 June 2001 CDSL has signed

agreement with 3297 companies. Of these 3528 are available for Demat services. CDSL

offering Depository services in 78 cities across 147 locations in the country.


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COMPANY PROFILE

OVERVIEW

Standard Chartered Securities (India) Limited is a leading broking company catering to the

financial needs of both institutional as well as retail investors. The company was earlier

known as Standard CharteredSTCI Capital Market Limited.

On 11 January 2008, Standard Chartered Bank (Mauritius) Limited (SCBM) acquired 49%

stake in UTI Securities Limited from Securities Trading Corporation of India (STCI).

Accordingly, the name of the company was changed from UTI Securities Limited to

Standard Chartered STCI Capital Markets Limited with effect from 17 January 2008.

Subsequently, on 12 December 2008, SCBM acquired a further 25.9% stake in the company

to increase its total stake in Standard Chartered STCI Capital Markets Limited from 49% to

74.9%.

Standard Chartered Securities (India) Limited is registered as a trading and clearing member

with Bombay Stock Exchange Limited (BSE), National Stock Exchange of India Limited

(NSE) and MCX Stock Exchange Limited. The Company is also registered as DepositoryParticipant with Central Depository Services (India) Limited (CDSL) as well as National

Securities Depository Limited (NSDL).

Standard Chartered Securities (India) Limited have a large network with pan India presence

in 112 locations through 34 branches and over 136 authorized centers. Their aim is to offer

simplified investment solutions and to provide long-term commitment and value to the

esteemed customers. They offer products such as equity capital markets, equity and derivative

broking and fixed income products to their institutional clients such as FIIs, mutual funds,

insurance companies and corporates.

Their retail division under the brand Standard Chartered Wealth Managers caters to

both online as well as offline customers. We offer products such as equity and derivative


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broking, depository services as well as other financial products like IPOs, mutual funds, fixed

income instruments and company fixed deposits.

They have a dedicated team of research analysts who work independently to provideinvestment and trading recommendation to our institutional and retail customers. Their

dedicated team of relationship managers and customer care executives offer efficient

execution backed by in depth research and expertise to customers across the country.

HOLDING COMPANY

Standard Chartered Bank in India is the countrys largest international bank with 90 branches

in 33 cities and India is one of the Groups key markets worldwide. Employing about 19,000

people, Standard Chartered Bank has played a significant role in the history of the banking

industry in India since opening its first branch in Kolkata, 150 years ago, on 12 April 1858.

Standard Chartered Bank considers India to be one of the prime economic opportunities of the

21st century and is proud to be so strongly positioned here. We have ambitious plans to

transform our business in the country and to further expand our operations in India.

On 11 January 2008, Standard Chartered Bank (Mauritius) Limited acquired 49% stake of

erstwhile UTI Securities Limited from Securities Trading Corporation of India ( STCI).

Accordingly, the name of the Company was changed from UTI Securities Limited to

Standard Chartered STCI Capital Markets Limited with effect from 17 January 17 2008.

Subsequently, on 12 December 2008, SCBM acquired further 25.9% stake in Standard

CharteredSTCI Capital Markets Limited to increase its total stake in Standard Chartered STCI Capital Markets Limited from 49% to 74.9%.


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MANAGEMENT PROFILE

Mr. Neeraj SwaroopChairman

Mr. P. R. Somasundaram - Managing Director

Mr. Peter Warbanoff- Director

Mr. Sushen Jinghan- Director

Mr. Shyam SrinivasanDirector

Mr. Pradeep Madhav-Additional Director

Mr. P.Sanyal-Director

Network of Standard Chartered Securities (India) Ltd.


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Type of Trading Platforms:

STSIL offers 3 different online trading platforms to its customers:

1. Easy Trade:Customer can trade on a newly redesigned Web site that is easy to navigate with even

more advanced stock trading features. Customer can manage their accounts, trade, find

stock research & get quotes all within a site that has a new, updated looks.

Benefits of EASY Trade

Trading on NSE & BSE

Integrated Bank, Demat and Trading Accounts Get Current Order Status Monitor your orders Updated buying power Anywhere access


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2. Advanced Trade:Advance Trade is an Applet-based system, designed specially for active traders.

Advance Usec gives access to their traders to view 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 help customers to track

individual stocks and make timely trades when investing online.

Benefits of Advance :

Streaming quotes

Market Depth Window Trading on NSE & BSE Create Multiple Watch lists Equity and Derivatives orders in single window Hot Key Navigation Access to back end reports


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3. Super Trade:Super Trade is an advanced, customizable online trading platform built exclusively for

active traders. It offers professional and complimentary tools which enable their user

to view streaming, intraday, daily and weekly charts, personalized quick stock quote

lists and real-time updates.

Benefits of Super A/c

Personalized Stock Quote Lists Fully Customizable display Streaming Intraday, Daily and Weekly Charts Streaming Quotes Alert capabilities Track your orders real time Real time position updates Lock terminal option


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Brokerage and Account opening fees:

Standard Chartered Securities India Ltd. offers three kinds of platforms as above. Below are

detail about fees and activation charges for each account:

1. Easy Trade:Account activation charges - Nill

2. Advance Trade:Account activation charges -Nill

3. Super Trade:Account activation charges - Nill

STANDARD CHARTERED SECURITIES ACCOUNT OPENING DETAILS:

They offered 2 types of account:

A) The Standard Chartered 3-in1 accountTrading+demat+savings account is standard charterd. The power of 3. The convenience of 1.

The 3-in-1 account is intelligent combination of a Securities Trading Account with aDemat and savings Bank Account. Thereby offering one a combined benefit of these 3

accounts.


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The Trading and Demat Accounts are held with Standard Chartered Wealth Managers(SCWM) and Savings Bank Account is held with Standard Chartered Bank (SCB).

These 3 accounts are integrated to provide a seamless and hassle free trading experience

Special Offering:

a) Zero Trading Account opening feesb) Zero Demat Account Maintenance for 1st yearc) Zero AQB Requirement for Savings Account

The 3 in 1 Account opening pocket comprises of:

Features:

Access account through the website www.standardcharteredtrade.co.in. The single log in feature enables direct access to details of all 3 accounts.

So, no need to remember multiple user names and passwords.

This way, one can trade, transfer funds and view the bank account balances....allwithin a matter of seconds.


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One can view their shares balance on-line through the same account. No need to write cheques or issue TIFD (DIS) slips. Status of purchase/sale orders placed by one updated instantly Pay-in and pay-out of funds to/from the Exchanges on account of purchases and sales

is automated. Similarly, when one buy/sell shares, the same are directly

credited/debited to their Demat account, without having to transfer them to brokers

account.

Gain access to products like Equity and Derivatives Trading, Depository Services,Distribution of Online IPO, GOI Bonds and Mutual Funds.

B) TWOIN- ONE ACCOUNT

Trading+ Demat account in other bank (which means tie up banks with standard chartered

like ICICI, AXIS, totally six ties up bank)

THREE PLATFORMS FOR TRADING CHARGES:

1. EASY TRADE for opening charges in 499 lifetime2. ADVANCED TRADE for account opening charges is 799 lifetime3. SUPER TRADE for account opening charges is 2499 lifetimeService tax and service trading tax are applicable.


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TRADING CHARGES COMPARISION

S.NO. RECURRING

CHARGES

SCSIL ICICI

Direct.com

IBSL Share Khan

1. Brokerage charge

(%)

Intraday 0.05 0.03 0.04 0.07

Delivery 0.50 0.25 0.40 0.40

2. A/C opening

charge

Nill 750 799 750+Adv

Brokerage

3. Demat AMC 400 500 500 360

4. Phone 2 trade Completely

free

Rs 25 after 10

calls

Rs 25 after 20

calls

Rs 15 after 20

calls

5. SMS alerts Free Re 1 per SMS NA Free

Advantages of SCSI Ltd

1. They provide intraday reports and historical charting.2. Varity of fee structure to fulfill need of different type of investors.3. User can access sector-wise information to track sectors and individual scrips within

the sector.

4. SCSIL provides "Quick Mail" tool so user can resolve all the problems online.


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PRODUCTS OF STANDARD CHARTERED SECURITIES (INDIA) LTD.

EQUITY (On NSE & BSE)o Through Delivery and Intra-day Trading where you can leverage your existing

cash to take higher value positions.

o Acquire Now Sell Tomorrow (ANST) is a facility that allows you to sell sharesagainst previous purchases made by you, however, not yet delivered in your

demat a/c.

DERIVATIVESo Trade in futures and options through Standard Chartered Wealth Managers

online trading portal.

MUTUAL FUNDSo Choose from schemes provided by 27 leading Asset Management Companies.o Define your own Systematic Investment Plans and track the performance of

schemes

IPOso Be a part of a companys growth story right from its inception into the

markets.

o IPO investing has never been easier. Fill in a simple IPO order form online andallotted shares will be directly credited to your demat account.

GOI Bondso For those looking for risk-free, regular returns, GOI bonds provide an option.o Fill in a simple online form, the bond certificate will be couriered to you

directly.

o The bonds can be held safely in demat mode


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STRENGTH OF PRODUCT:

Single login, thereby enabling faster, easier access. Facility to place order for various products after market hours. My inbox feature to receive regular updates on their account Online Portfolio Tracker to monitor the performance of their investments Phone-2-trade facility Efficient queryhandling & resolution A basket of various products, available at the click of a mouse Mutual Funds from 27 leading AMCs

Customer service & other value added services:

Online query posting: With our Quick Mail tool you can post all yourqueries online.

Online ledger: View your online contract note, summary of your transactionsusing online Bills & Accounts.

My inbox: Maintain records of all important notifications related to youraccount.

Interactive demo: A step-by-step guide to enable you to navigate through theprocess of investing online on our website Usectrade.com

Subscription to mailers: Subscribe to our in-houses research reports coveringour entire product bouquet.


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3.2 SWOT ANALYSIS OF THE COMPANY

STRENGTHS

Countrys largest international bank. Strong Positioning Around 151 years of experience A rich basket of products. User friendly trading platform. Superior customer experience. AMO (Facility to place order for various products after market hours) Advanced website features. Online Query Resolution facility (Send us queries directly from your trading account.

Choose your query category from a pre-defined list.)

Phone-2-Trade (Tele-Trade)facility Online Ledger (View your Digital Contract Note, summary of your transactions using

Online "Bills & Accounts and keep yourself updated of your financial positions at all

times.) Value added services

o Low brokerage rateso Value packs

3-in-1 accounto Securities Trading Account.o Demat Account.o Savings Bank Account.

Special Offering:o Zero Trading Account opening fees.o Zero Demat Account Maintenance for 1st year.o Zero AQB Requirements for Savings Account.


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WEAKNESS

High brokerage charges as compared to share khan, India Info line etc. Customer Satisfaction is an area of concern. Company does not have licence for currency derivatives. Marketing team is not very much aggressive.

OPPORTUNITIES.

Providing better work environment to the employees. Since its a new entrant in the market it can more customers. Increasing income of people in India. So, there are high possibility of investment in share

trading.

Large Basket of products. Online broking market is still now a untapped market, so there is huge potential in the

market.

Online trading is very less time consuming.

THREATS

Being a new entrant the company is facing cut throat competition. Firms like Share Khan, Religare charge less brokerage as compared. Customers may prefer lower brokerage firms. Since the current market scenario is not very supportive so it gets much tougher to retain a

customer, then to make a new one.

Looming uncertainty of US economyand Euro Zone Economies are impacting this sectoradversely.


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TRADING ONLINE WITH SCSIL

PROCESS OF TRADING

LOGIN

1. First enter www.standardcharteredtrade.co.in to view home page of the website.

2. Then Click on 'Login to > Online Services' tab to visit Secure User Login page. The Login

window will pop up. Than investor must make sure that the popup blocker in your browser

is turned off.


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3. Then investor can Enter his/her Secure Login ID and Password.

4. Select the trading platform : Easy Trade or Advance Trade and then click on 'Login'.

EASY TRADE

A. Equity Trading (Delivery, Intra-day & ANST)

Place an Order

1. To buy/sell shares in the secondary market, click on Place an Order in the EquitySection.

Buy Orders

2. Now, before placing a Buy order, an investor must check out whether he/she havesufficient funds or not.

3. In order to check about funds availability, click on FUNDS AND MARGINS. If aninvestor wishes to trade/invest in excess of limits displayed in the Margin/Buying

Power section, then he/she need to transfer funds from his/her linked Bank

account using the Insta Transfer/withdrawal (for Standard Chartered bank linked

accounts) or Fund Transfer/Withdrawal (for Non Standard Chartered bank linked

accounts) option.


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4. Then select the desired action as Buy. Choose the exchange in which you wish toplace the order NSE or BSE.

5. Choose Delivery if you wish to take delivery of the stock or Intraday if you wishto place an intraday order.

Sell Orders

1) Before placing a Sell order an investor should check whethersufficient quantity of shares, which he/she wishes to sell, is available in the

Sell/De-allocate shares page or not.

2) Then select the desired action as Sell. Choose the exchange to place theorderNSE or BSE

3)

Choose Delivery , to give delivery of the stock, Intraday ,to place anintraday order and ANST if an investor wishes to sell shares that he/she

had already purchased on the previous day but have not yet received the

delivery for the same in your demat account. (ANST is a feature where you

can sell stocks that you have purchased before receiving delivery of the same.

It is available for sale on the next day of purchase of the stock.)

Find Stock Code

Now investor will find out thestock code of a company , in which he is interested. Put

the name of the company either at stock name or stock code box and then click on

find button. For trades on NSE, preferably select code ending with EQ


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Get Quotes

1) After identifying the stock code, click on Get Quotes to check the latestmarket price of the stock.


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2) Customers have also the options of DISCLOSED QUANTITY i.e. they canuse the Disclosed Quantity option to disclose only a part of your order

quantity to the market. DQ (Disclosed Quantity) should not be less that 10%

of the Order Quantity and at the same time should not be greater than the

Order Quantity. Disclosed Quantity field is optional. If you leave the field

blank, your entire order will be disclosed to the market at once.

3) Investor can also place an order during non-market hours, for this selectAMO (After Market Orders) option. Orders will be forwarded to the

Exchange when the market opens. AMO orders are limit orders and are

available between 5:30 pm to 8:30 am next day. AMO is shown below in a

screen shot within a red circle.4) After filling in all the necessary fields, click on Submit to place the order.

Subsequently select terms & condition and then click Confirm & Proceed to

confirm the order.

5) Once investor confirm, the order is validated in the system for sufficientmargin and then routed to the exchange. You can check the status of your order

in Order Book.


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B. Derivative Trading (Futures & Options)

Place an Order

1. To trade in futures and options, click on Place an Order in the Derivatives section. 2. Then investor is suppose to check whether he/she have sufficient funds to place the

order in the Funds & Margins.

3. Select the desired action as Buy or Sell.4. To locate the contract click on Find Contract then the investor Select the

Contract they wish to trade in.

Find Contract

For Futures contracts, select underlying and expiry date.

For Options contracts, select underlying, strike price, option type and expiry date.


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Same as equity investor, derivative investor can Get Quotes and market depth--

market depth enables the investor to view the best 5 bids


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OBJECTIVES OF THE STUDY:

To study the growth of Indian online trading industry To see the type of technology used by stock exchanges and by the Indian customer in

online trading.

To analyze the online trading and process of Standard Chartered Securities India Ltd. To study what type of products the customers deal while doing the online trading. To study the presence of major online traders in the Indian market. To study the customer perception of online trading. To find out the important factors which mostly affect the customers.


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RESEARCH METHODOLOGY

PROBLEM DEFINITION:

To know about the online trading services used by the stock exchanges and how the customer

utilize this services and also find out the problems they are facing while trading.

RESEARCH DESIGN:

A research design is the detailed blueprint used to guide a research study towards its

objectives. It is series of advanced decisions taken together comprising a master plan or a

model for the conduct of research in consonance with the Research objectives. It details the

procedures necessary for obtaining the information needed to structure or solve the marketing

research problem.

Non probability:

The nonprobability respondents have been researched by selecting the persons who do the

stock trading. Those persons who do not trade in stocks have not been interviewed.

Primary Data: A well structured questionnaire was prepared and personal interviews were

conducted to collect the responses.

Secondary Data: The secondary data has been taken by referring to various magazines,

newspapers, internal sources and internet to get the figures required for the research purposes.

Exploratory research:

The research is primarily exploratory in nature. The objective of the exploratory research is to

gain insights and ideas. The objective of this research study is typically concerned with

determining the frequency with which something occurs. A well structured questionnaire was

prepared for the primary research and personal interviews were conducted to collect the

responses of the target population.


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SAMPLE DESIGN:

Sampling Technique

Sampling techniqueis judgmental in this research which is a Non Random Sampling Method.All the respondents were selectively picked; these were the respondents which were already

involved in share trading.

Sampling Unit

The respondents who were asked to fill out the questionnaire in the Delhi and National

Capital Region are the sampling units. The respondents were investors in the share market and

having Demat Account. Printed Questionnaire was used in Standard Chartered Capital Market

customers and other person dealing in stock trading.

Sample Size

The sample size of research was 100.

Sampling Area

The area of the research was Delhi and National Capital Region (NCR).

Sample Size 100

Target Population Active equity investors

Sample Area DelhiNCR

Sampling Judgmental sampling

Type of questionnaire Structured


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SCOPE OF THE STUDY

The scope of the study is limited to 2 month time period starting from June, 2011 to August,

2011. The study is purely done of the data available at National Stock Exchange and Bombay

Stock Exchange.

Scope of the study is to know the need and importance of online trading in the sharetrading market i.e. information regarding the stock market and the performance of

Standard Chartered Securities (India) Limited.

The scope of the study can be further used to determine and study the factors in detailsand see what the lagging areas of Standard Chartered Securities (India) Limited are.

To study the main purpose for which these types of online trading services arerequired by the investor i.e. whether they want this information for short term, long

term or for intraday activities.

Since the year 2000 a big boom has been witnessed in the Indian Stock Market whenthe market showed the coming up of Online Trading System. Many online stock

trading companies came but initially due to lack of online trading some companies

vanished and some survived. The companies which survived are getting the handsome

returns also attracting the foreign Investment Companies. Nowadays this sector is

facing cut-throat competition and also provides huge growth prospects. The study then

goes to evaluate and analyze the findings so as to present a clear picture of the trends

in the online trading sector.


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LIMITATIONS

The main restraints, which created some hurdles in the smooth completion of the researchtask, are enumerated as follows:

There is lack of awareness among people about investing in stock market. So thepeople who are aware of such things were found in specific areas for survey purposes.

Most people are comfortable with traditional system in small towns and like to tradefrom their respective brokers, hence not providing a true opinion of theirs.

People were not willing to fill the entire questionnaire due to the less time available tothem and they intentionally not filled address and contact column of the

questionnaires.

Time was the biggest constraints as the study was limited for a period of 8 weeks onlyas per the curriculum of researcher, which means that any relevant market

phenomenon before and after this duration of time might have been skipped in the

study.

The survey is restricted to Delhi and NCR Region only hence may not truly expressthe opinion of the nation as a whole.

Some of the respondents who did not do online trading were able to respond to onlyfew questions.


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COLLECTION OF DATA

PRIMARY DATA

For collection of necessary primary data, a structured questionnaire has been prepared in due

consultation with the experts in the field of stock market, and personal interviews were

conducted to collect the responses of the target population. The questionnaire has been

designed for the target group to get the best amount of data possible keeping in view the

importance and authenticity of the information and convenience of the respondent. Interview

was conducted under strict supervision to maintain the standards of the data collected.

1. Surveys 2. Observation

3. Questionnaire 4. Interview

SECONDARY DATA

Secondary data is previously collected and assembled for some project other than the one at

hand. It is gathered and recorded by someone else prior to current needs of the researcher. It is

less expensive than the primary data. The data were collected from NSE and BSE web site.

Nifty and Sensex were selected as representative of Indian markets.


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ANALYSIS & FINDINGS

QUESTIONAIRE

1. HOW FREQUENTLY DO YOU TRADE?

#Source : Survey

Interpretation:

According to the data 40% of customers are trading weekly because of their busy schedule,

27% are trading daily, 25% are trading monthly and 8% customers are trading half yearly.

27%

40%

25%

8%

DAILY

WEEKLY

MONTHLY

HALF YEARLY


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2. FOR HOW LONG YOU HAVE BEEN TRADING WITH ON LINE-TRADING?

#Source : Survey

Interpretation:

According to this survey we find that 45% people says that we are investing the money online

from one year and 25% people says that we are investing the money online from 2 years and

18% to 12% people says that we are investing money online from 3 to 4 year. So we can say

that now online trading is very popular in the modern market.

0

5

10

15

20

25

30

35

40

45

45

25

18

12

1 YEAR

2 YEAR

3 YEAR

4 YEAR


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3. DO YOU THINK THAT INTRODUCTION OF ONLINE TRADING HAS HELPED IN

ATTRACTING THE NEW INVESTORS?

#Source : Survey

Interpretation:

According to the data 90% of people feel that online trading has helped in attracting the new

investors thus increasing the trading volume at stock market and in against 10% of people

disagree that it is not attracting

90%

10%

YES NO


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4. WHICH TRADING YOU PREFER?

#Source : Survey

Interpretation:

According to data 62% of customers are trading through online and 38% of customers are

trading offline, some customers are fear to trade through online, so those people are trading

through brokers.

0

10

20

30

40

50

60

70 62

38

Online Trading

Offline Trading


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5. PRIVACY, CONVENIENCE AND TIME SAVING IN ONLINE TRADING IS?

#Source : Survey

Interpretation

According to the data 65% of people feel that online trading is most important in

privacy, convenience and time saving, 26% of people feel that it is important, and

9% of people feel that it is partially important.

0

10

20

30

40

50

60

70

Most

important

Important Partially

important

Not important

65

26

9

0

Most important

Important

Partially important

Not important


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6. WHAT PROBLEMS DO YOU FACE WHILE TRADING ONLINE?

#Source : Survey

Interpretation:

According to this survey we find that 64% of customers are facing problem with password

and Login, 24 % of customers are facing problem in operating the site and 10% of customers

are facing problem in creating portfolio.

64%

24%

10% 2%

Password or Login

problem

Operating the site

Creating the portfolio

Any other


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7. WHAT WOULD MOSTLY INFLUENCE YOU AS CUSTOMER TO SELECT

STANDARD CHARTERED SECURITIES INDIA LIMITED?

#Source : Survey

Interpretation:

According to the data 57% of people are mostly influence by online facility, 25% of people

are influence by brokerage rates, 15% of people are influence by research and call services,

and 3% of people are influence by different services.

57%25%

15%

3%

ONLINE FACILITY

BROKERAGE RATES

RESEARCH AND CALL

SERVICES

DIFFERENT SERVICES


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8. ARE YOU AWARE ABOUT THE VALUE ADDED SERVICES LIKE LOWER

BROKERAGE CHARGES?

#Source : Survey

Interpretation:

According to the data, 44% of people are aware about the value added services like lower

brokerage charges and 56% are not aware.

0

10

20

30

40

50

60

44

56

AWARE

UNAWARE


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9. IN WHICH DO YOU PREFER TO INVEST?

#Source : Survey

Interpretation:

According to the data the different types of customers are trading with different products like

25% of customers are trading with SHARES, 15% with MUTUAL FUNDS, 16% with

FIXED DEPOSITS, 22% with GOLD, 14% with REAL ESTATE, 8% with OTHERS.

25%

15%

16%

22%

14%

8%

SHARE

MUTUALFUND

FDs

GOLD

REAL ESTATE

OTHERS


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10. ON WHICH OF THESE DO YOU TRADE?

#Source : Survey

Interpretation:

According to the data63% of customers trade through NSE and 37% through BSE.

37%

63%

BSE

NSE


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11. OTHER THAN STANDARD CHARTERED WHICH OF THE FOLLOWING

COMPANIES DO YOU TRADE WITH?

#Source : Survey

Interpretation:

According to the data 32% of customers trade through ICICI Direct, 24% of customers trade

through KOTAK Securities, 17% of customers trade through SHAREKHAN, 11% of

customers trade through RELIGARE, 14% through INDIA INFOLINE and 2% withOTHER..

32%

17%

11%

24%

14%2%

% share

ICICI

share khan

religare

kotak securities

India Infoline

others


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12. RATE THE FOLLOWING IN TERMS OF PREFERENCE GIVEN BY YOU TO THE

SERVICES GIVEN BY OUR STANDARD CHARTERED SECURITIES BROKING

HOUSE?

#Source : Survey

Interpretation:

According to the data 74% of customers are giving preference to intraday, 10% of customers

to long term, 12% of customers to short terms, and 4 % of customers are giving preference to

other investments.

13. AT WHAT TIME DO YOU TRADE?

74%

10%

12%4%

INTRADAY

LONG TERM

SHORT TERM

INVESTMENT INOTHERS


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#Source : Survey

INTERPRETATION

45% of the total respondents do trading in office timing while 32% do trading in non officetiming and 23% of the respondents do the trading in free time.

Here the people who do the trading in office timing they face the problem of not in the

continuous touch of the stock market, so online trading can be one of the good solution of this

problem.

45%

32%

23%

OFFICE HOURS

NON OFFICE HOURS

FREE TIME


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14. HOW DO YOU DECIDE IN WHICH SHARES TO INVEST?

#Source : Survey

Interpretation:

According to the data, 62% of customers take help from brokerage house for investment, 23%

of customers decide themselves, 11% of customers take help from friends and rest from

others.

23%

62%

11%4%

Decide Yourself

Take help from brokeragehouse

Take help from friends

Others


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CONCLUSION

After conducting the survey and studying the response of the investors in the questionnaires

filled by them. I have reached to the conclusion that every investor agrees that the growth and

development of online trading services are important and are needed by them but they are of

the view that the services provided by the STANDARD CHARTERED SECURITIES

broking houses are much accurate and reliable

The second thing is that the investors takes online trading in SCSIL portal as secondary

criteria in deciding their broking house and the primary thing is still the brokerage charges for

them. The investors needs the more information in online while trading particularly intraday

and short term period and are less interested towards long term research.

Online trading is the new concept in the stock market. In India, online trading is still at its

infancy stage. Online trading has made it easy to trade in the stock market as now people can

trade while sitting at their home. Now stock market is easily accessible by the people. There

are some problems while doing the trade through the internet. Major problem faced by online

trader is that the investors are loyal to their traditional brokers; they rely upon the suggestions

given by their brokers. Another major problem is that the people don't have full knowledge

regarding online trading. They find it difficult to trade them, as a wrong entry made by them,

can bring them huge losses.

Nevertheless to say that online trading has the bright future as the percentage of the trade

done through online trading is increasing day by day.


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RECOMMENDATIONS

Based on the market study, new clients and existing clients following recommendations can

be given for more satisfaction of customer regarding the growth and development of online

trading.

Recommendations related to research services

The investor wants the information from their broking houses but they are not getting

information in a systematic and accurate manner.

The SCSIL broking houses should give more attention to their research services since the

investor decides their broking house based on primarily two criteria, first is broking charges

and the other is research services.

Since the brokerage charge of all the broking firms is more or less same the only thing by

which the broking house can get an upper hand from other companies is by research services.

In order to make their research services better the broking house should make following

changes:

Need of more marketing people with the knowledge in finance for the customerrelation

The company should provide special schemes for customers with more information tomotivate them.

The companies should provide information regarding the shares of companies andmarket at their customer convenience and according to the need of each and every

individual.

The company should also try their best to make the customer aware of the technicalaspect of the schemes so that the customers do not feel that they are ignorant of any

fact.


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Marketing strategies should be based on the future prospects of the markets andinvestors

The company should attract the market more vigorously and go for trapping more andnew customers.

Standard Chartered Securities special recommendations from my project

1. Regular E-mails to customers, about share market and researches from standardchartered capital market.

2. Regular SMS services to customers after executing the shares in the market and alsoproviding the current status of their shares in the market.

3. In Online trading portal ofwww.standardcharteredtrade.co.into introduce the STOCKMARKET DICTIONARY.

4. Provide the schemes like value packages through online as advertise part.5. By promoting the privileged customer, select the best customer who is trading regularly

and investing huge amount in trading through online and give them valuable gift or

award like BEST CUSTOMER.

6. Provide the details about BSE and NSE companies list in online trading portal.7. The changing perception of Indian consumers and their requirements will also be made

clear.

8. The company will be able to do the effective segmentation of their market based on theresearch analysis.

9. Standardize the CUSTOMER CARE CENTRE, and providing more information to thecustomer.
http://www.standardcharteredtrade.co.in/http://www.standardcharteredtrade.co.in/http://www.standardcharteredtrade.co.in/http://www.standardcharteredtrade.co.in/


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ANNEXURE (i) QUESTIONNAIRE

NAME___________________________________________________________

AGE _________________________GENDER___________________________

MOBILE_________________________________________________________

OCCUPATION____________________________________________________

QUESTIONAIRE

1. HOW FREQUENTLY DO YOU TRADE

a) Dailyb) Weeklyc) Monthlyd) Yearly

2. FOR HOW LONG YOU HAVE BEEN TRADING WITH ON LINE-TRADING?

(a) 1 year (b) 2 year

(c) 3 year (d) 4 year

3. DO YOU THINK THAT INTRODUCTION OF ONLINE TRADING HAS HELPED IN

ATTRACTING THE NEW INVESTORS?

(a) Yes (b) No


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4. WHICH TRADING YOU PREFER?

(a) On line trading (b) Offline trading

5. PRIVACY, CONVENIENCE AND TIME SAVING IN ONLINE TRADING IS?

a) Most importantb) Importantc) Partially importantd) Not important

6. WHAT PROBLEMS DO YOU FACE WHILE TRADING ONLINE?

a) Password or Login problemb) Operating the sitec) Creating the portfoliod)

Any other

7. WHAT WOULD MOSTLY INFLUENCE YOU AS CUSTOMER TO SELECT

STANDARD CHARTERED SECURITIES INDIA LIMITED?

a) Online Facilityb) Brokerage Ratesc) Research and Call servicesd) Different Services


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8. ARE YOU AWARE ABOUT THE VALUE ADDED SERVICES LIKE LOWER

BROKERAGE CHARGES?

a) Awareb) Unaware

9. IN WHICH DO YOU PREFER TO INVEST

a) Sharesb) Mutual Fundsc) FDsd) Golde) Real Estatef) Others

10. ON WHICH OF THESE DO YOU TRADE?

a) BSEb)

NSE

11. WHICH OF THE FOLLOWING COMPANIES DO YOU TRADE WITH?

a) ICICI Direct b) Sharekhan

c) Kotak Securities d) Religaree) India Infoline f) Any other


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12. RATE THE FOLLOWING IN TERMS OF PREFERENCE GIVEN BY YOU TO THE

SERVICES GIVEN BY OUR STANDARD CHARTERED CAPITAL MARKET BROKING

HOUSE?

a) Intradayb) Long Termc) Short Termd) Investments in others

13. AT WHAT TIME DO YOU TRADE?

a) Office Hoursb) Non office hoursc) Free Time

14. HOW DO YOU DECIDE IN WHICH SHARES TO INVEST?

a) Decide yourselfb)

Take help from broking house

c) Take help from friendsd) Others


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ANNEXURE (ii) BIBLIOGRAPHY

Our main source of information has come from both primary as well as secondary.

BOOKS

Cooper Donald R, Business Research Methods, 9th

Edition.

Kotler Phillip, Marketing Management, 13th Edition

Fisher Donald E, Jordan Ronald J. , Security Analysis and Portfolio Management,6th Edition

MAGAZINES

Business Line, June and July, 2011 Pratiyogita Darpan(English) May,June & July,2011

INTEREST SITES:

www.nseindia.com www.bseindia.com www.standardcharteredtrade.co.in www.tradingeconomics.com www.wikipedia.com www.sharemarketbasics.com www.thetimesofindia.com www.business-standard.com www.thehindu.businessline.com

INTERVIEWS:

Standard chartered customers and Delhi and NCR region people are taken for filling the
http://www.thetimesofindia.com/http://www.thetimesofindia.com/http://www.business-standard.com/http://www.business-standard.com/http://www.business-standard.com/http://www.thetimesofindia.com/

introduction of online trading

Documents