E-Trading of Stock Market

A Synopsis or Research Proposal is Submitted to the

I ntegrated Academy of Management & Technology
For the Diploma of
PGDM
In
E-Trading of Stock Market
By
Abhijit Kundu
Roll No: PG-13-01
Under the Guidance of
Prf. Rishi Taparia (Students Affairs Dean)

Integrated Academy of Management & Technology
(Ghaziabad)
Year: 2014










E-Trading of Stock Market
Introduction
DEMATERIALIZATION:
Dematerialization is the process of converting the physical form of shares into electronic form. Prior to
dematerialization the Indian stock markets have faced several problems like delay in the transfer of
certificates, forgery of certificates etc. Dematerialization helps to overcome these problems as well as
reduces the transaction time as compared to the physical segment.
The Indian Stock markets have seen a major change with the introduction of depository system and
scrip less trading mechanism. There were various problems like inordinate delays in the transfer of
share certificates, delay in receipt of securities and inadequate infrastructure in banking and postal
segments to handle a large volume of application and storage of share certificates .To overcome these
problems physical dealing in securities should be eliminated . The Indian stock market introduced the
system of dematerialization recognizing the need for scrip less trading.
According to the Depositories Act, 1996, an investor has the option to hold shares either in physical or
electronic form .The process of converting the physical form of shares into electronic form is called
dematerialization or in short demats. The converted electronic data is stored with the depository from
where they can be traded. It is similar to a bank where an investor opens an account with any of the
depository participants. Depository participant is a representative of the depository .The DP maintains
the investors securities account balances and intimates him about the status of holdings.
ONLINE TRADING
Online Trading is an easy way to buy and sell shares from the comfort of ones place instead of
trading through individual stockbroker and broking firms, the customer can transact with the help of
mouse click and his visits to the neighbourhood broker will become a thing of the past. Even the older
generation is adapting the online trading route.

Find the right depository to provide with an online trading account can be difficult, but many banks
and companies offer excellent services for online trading. Our needs will determine which online
broker is best for us. Online trading brings in total transparency between brokers and investors in case
of secondary market operation.

Whether we are buying a mutual fund, investing in commodities market or any other transaction can
be performed with minimum fuss. In India presently online trading can take place through order
routing system, which will route client orders to exchanges trading system for execution of trade on
stock exchange (NSE and BSE).

One of the measure attractions of online trading is the wealth of free commentary and analysis about
stock market and global economy. Any investor with an ounce of market savviness can extract all the
data needed to make trading decisions and complete the trades. An important catalyst behind the
emergence of thriving online brokerage system has been the buoyant stock market. One can trade
online with e-brokerage such as ICICI Direct, HDFC Securities, India Bulls, Kotak Street and India
Info lines 5paisa.com.




NEED OF STUDY:
With the emergence of the internet in everyday business, the significance of the online stock
market trading broker has gone up.
It can be done from home at any desired fixed hours of the investor.
The processing of the order is executed at proper timings as the servers of the online trading
portal are linked to the selected banks and stock exchanges though out twenty four hours.
The investments made are safe and secured and profit is earned at proper time without any
dispute.
Online trading updates are also provided to the investors and also about the present grade of
their orders either through the interface or e-mail.
The investors increase shares and make development to the company.

OBJECTIVES OF STUDY:
To Study & understood the concept of Online trading.
To know the time information & importance & the role played by the stock exchanges in the
process of online trading.
To know the reasons for the introduction of online trading and their Benefits.
To review the changes that Online trading brought when compared with the previous systems.

RESEARCH METHODOLOGY OF THE STUDY:
DATA COLLECTION METHODS
The data collection methods include both the primary and secondary collection methods
Primary collection methods: This method includes the data collection from the personal
discussion with the authorized clerks and members of the Net worth.
Secondary collection methods: The secondary collection methods includes the lectures of the
superintend of the department of market operations and so on. Also the data collected from the
news, magazines of the Net worth and different books issues of this study.






SCOPE OF STUDY:
The study is limited to Demat and Online Trading.
And since the year 2000, a big boom has been witnessed in the Indian stock Market when the 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 are survived are getting the handsome returns also attracting the foreign
Investment Companies. Now a days this sector is facing cut-throat Competition. And also provides
huge growth prospects.
LIMITATIONS OF STUDY:
A good report tells us the result of the study, but every project has its own limitation. These
limitation can be form of
There is lack awareness among people about investing in stock market. So people 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 trade from their
respective brokers, hence not providing their true opinions.
Most of people are not using technology and Internet is growing still it is not at the required level
Some of the respondents who did not do online trading were able to respond only to some
questions.

Limitations towards Demat and online trading confined to keep the study in manageable