Escolar Documentos
Profissional Documentos
Cultura Documentos
INTRODUTION
Online trading is a buying and selling of stocks, through internet in an area of
commercial activity. The set of institution facilitates the exchange of stocks
between buyers and sellers. For the growth of electronic transaction a large fraction
of stock market transaction are not centrally located in a particular location
because of every transaction are made through online trading.
The project is an attempt to identify the current investment trends amongst
individual investors in Bangalore and to ascertain the investor perception about
professional financial advisory services. Also an attempt is made to ascertain
investor opinion about information technology / internet as a means of investment
planning and trading.
This study required both Primary and Secondary data. Primary data was collected
through a structured questionnaire and the Secondary data was made available
through company literature and Internet.
All the respondents were contacted personally which consisted of individual
investors of Bangalore, both current and potential. The information was collected
by meeting them personally. The data collected above was analyzed thoroughly
through appropriate statistical methods and presented in the form of tables and
graphs.
In this project investors choice of investment avenues, reasons for the choice,
characteristics they expect from financial advisory services and awareness levels of
various online advisory services have been dealt in length and breadth.
Maharanis Arts & Commerce College For Women, Mysore
Page 1
TRADE:
Trade is the transfer of ownership of goods and services from one person to
another. Trade is sometimes loosely called commerce or financial transaction or
barter. A network that allows trade is called a market. The original form of trade
was barter, the direct exchange of goods and services. Later one side of the barter
was the metals, precious metals (poles, coins), bill, paper money. Modern traders
instead generally negotiate through a medium of exchange, such as money. As a
result, buying can be separated from selling, or earning. The invention of money
(and later credit, paper money and non-physical money) greatly simplified and
promoted trade. Trade between two traders is called bilateral trade, while trade
between more than two traders is called multilateral trade.
Trade exists for man due to specialization and division of labor, most people
concentrate on a small aspect of production, trading for other products. Trade
exists between regions because different regions have a comparative advantage in
the production of some tradable commodity, or because different regions' size
allows for the benefits of mass production. As such, trade at market prices between
locations benefits both locations.
Retail trade consists of the sale of goods or merchandise from a very fixed
location, such as a department store, boutique or kiosk, or by mail, in small or
individual lots for direct consumption by the purchaser hole sale trade is defined as
the sale of goods or merchandise to retailers, to industrial, commercial,
institutional, or other professional business users, or to other wholesalers and
related subordinated services.
Maharanis Arts & Commerce College For Women, Mysore
Page 2
SEBI Guidelines:
Highlights of the guidelines issued by SEBI are summarized below.
At least 60% of each kind of securities issued by company must offer to
public subscription.
Offer must be made through a prospectus in news papers for a period not
less than three days,
Minimum capital for listing on stock exchanges It should be noted that
minimum equity capital requirement for listing on Bombay Stock
Exchange is Rs. 10 crores.
Fresh issue must be de-materialized All fresh issue of capital will have
compulsorily got their securities admitted with all depositories for dematerialization.
Company shall promptly forward to Stock Exchange copies of Annual
reports, notice, circulars sent to Share Holders.
ONLINE SHARE TRADING IN INDIA
Online refers to the network of computers/mobile phones/other electronic devices
which share and exchange information. The internet is having a capacity to
broadcast worldwide its capabilities, mechanism for information dissemination
,medium of collaboration and interaction between individuals and their
Maharanis Arts & Commerce College For Women, Mysore
Page 7
ICICI DIRECT
ICICI direct (or ICICI Direct.com) is stock trading company of ICICI bank.
Along with stock trading and trading in derivatives BSE and NSE. It also
provides facility to invest in IPOs, mutual funds also.
5PAISA
5paisa is internet stock trading company of India Info line securities private ltd.,
owner of popular business portal indiainfoline.com and this company has high
quality of investment advice from an experienced research company.
HDFC SECURITIES:
HDFC securities (HDFC sec) are an equity trading company of HDFC bank.
HDFC securities provide both online trading and on phone. The HDFC
securities trading account has a unique 3-in-1 feature.
RELIANCE MONEY:
DOCUMENT
REQUIRES
OPENING
AN
INTERNET
TRADING ACCOUNT:
I.
Driving license
Voters ID
Passport
PROOF OF IDENTITY:
II.
Driving license
Voters ID
Passport
PAN card
Two photographs
ONLINE SERVICE PROVIDER ACCOUNT:
This can be opened with any of the major service providers i.e. client
registration form.
III.
Stock analysis
RESEARCH METHODOLOGY
PERCEPTION OF INVESTOR TOWARDS ONLINE TRADING
INTRODUCTION
Research is one of the best instruments to identify the investing pattern of investors
to invest in various sectors & to study different sectors of Capital market.
DEFINITION
Maharanis Arts & Commerce College For Women, Mysore
Page 16
SOURCES OF DATA
The data pertaining to inventories collected through primary & secondary sources
are analysed through percentage analysis, ratio analysis & marketing analysis.
PRIMARY DATA
Primary data are those that are collected as fresh for the first time & thus happen to
be origin in character. Here primary data was collected through a structured
questionnaire.
Based on the
information investment brokers can carry out further research on specific problem.
The research suggestion through report will help them to improve their services.
Many services will be undertaken to attract new investors. This study helps to give
value-added services & maintain healthy investor relationship.
The scope extends to various classes of investors being classified as employees,
professionals, and businessmen and other. Concerning to the fact that, there is a
need of institutional support which may be broker, agents or even financing
institutions. The study extends to these areas too.
CHAPTER SCHEME
CHAPTER 1: INTRODUCTION
This Chapter consists of details of online trading, stock brokers, NSE and BSE and
SEBI Guidelines for online trading.
Maharanis Arts & Commerce College For Women, Mysore
Page 20
CHAPTER 3
: INDUSTRY PROFILE
INDUSTRY PROFILE
shares,
and
similar
financial
A stockbroker is a regulated professional broker who buys and sells shares and
other securities through market makers or Agency Only Firms on behalf of
investors.
Typically, a broker who receives an order from a customer will communicate with
a company employee located at a particular exchange, who will execute the order
at the exchange and report details of the transaction to the broker. Customers
typically keep their securities in an account with the broker. Brokers charge
customers commissions for conducting transactions and fees for maintaining their
accounts.
Some of the main characteristics of the brokerage industry include growth in ebroking, decline in brokerage fees and growing derivative market and many more.
There are several national as well as local players in stock trading services which
are providing various services to their customers like online trading, portfolio
management system, stock broking etc.
They are helping the investors to take decision about where to invest because there
is lots of Investment Avenue available with investors. Some of them are as follows
working at the national level.
MOTILA OSWAL SECURITIES: Online trading, live BSE and NSE quotes
ones becoming either franchisee for the larger brokers or closing operations. There
is an increasing demand for online trading due to consumers growing preference
for Internet as compared to approaching the brokers.
New forms of trading including T+2 settlement system, dematerialization etc. are
strengthening the retail brokerage market and attracting foreign companies to enter
the Indian industry Various alternative forms of investment including fixed
deposits with banks and post offices etc act as substitutes to retail broking products
and services.
No. of respondents
Percentage
Yes
35
70%
No
15
30%
Analysis
The firm should understand the customer needs and align their organisation to
fulfill those needs to be best positioned to attract as well as retain their customers.
Also, the firm should assess its core competencies and choose an appropriate
business model that leverages these competencies and fulfills the customer needs.
And may be investors relatively big size of the family and commitments towards
it. So any income would be spent towards the family thus leading to part of their
minimal savings.
INTERPRETATION:
In the survey it was found that 70% of the respondents are ready to take risk in
share market and remaining 30% respondents are not ready to take risk.
Table showing the objectives of investing in Shares, Bonds, Mutual Funds etc.
No.
of
Percentag
respondents
30
60%
20
40%
To meet emergency
ANALYSIS:In survey it was found that 60% of the respondents say the objective of investing in
shares, bound & mutual funds is to earn high profit & 40% of the respondents say
that to meet future needs. This may be because of their preference of safety of
investments.
Graph 4.2
Graph showing the objectives of investing in Shares, Bonds, Mutual Funds etc.
INTERPRETATION:
As per graph 60% of respondents are getting more income and try to get more
return on without taking risk remaining 40% respondents are future need.
No. of respondents
Percentage
08
16
Insurance
12
24
Equity market
12
24
Bonds
Mutual fund
15
30
Others
06
ANALYSIS
In the Survey it was found that the majority of the respondents that is up to 16%
one aware of equity market & 24% of respondents one aware of mutual funds &
30% of respondents, One aware of fixed deposits & 06% of respondents, One
aware of insurance & 24% of respondents one aware of others.
INTERPRETATION:
Majority of 17%and 10% of the investors consider other deposits and insurance
respectively to be the most prospective investment avenue in the future. This may
be due to the investors preference for safety of their investments. Mutual funds
Government bonds and other deposits are considered as less prospective
investment avenues. The investors have started sensing that these avenues yield
less returns comparatively.
Table - 4.4
The tables showing that investing know the online trading & now to buy & sell
shares in online
No. of respondents
Percentage
yes
45
90%
No
05
10%
Graph -4.4
Graph showing that investing know the online trading & now to buy & sell shares
in online
INTERPRETATION:
A majority of 90% of the investors accepted to internet as a means of investment
planning and advisory services. Internet is the latest channel that is available to a
service provider to conduct business. Only 10% 0f the respondents were not
accepted internet as a means of investment planning and advisory services.
Table 4.5
The table showing the No. of respondents who can give better advice for
investment in online trading.
No. of respondents
Percentage
Share Brokers
17
33%
Magazine
05
10%
TV channels
13
27%
08
16%
News paper
14%
ANALYSIS:In the survey it was found that majority of the respondent feel that share brokers
and TV channels can give better advice for investment in online trading up to 60%
and remaining 40% of respondents can get advice from magazine, TV Channels
and Newspapers.
INTERPRETATION:
The majority of the investor are getting more knowledge for share brokers so they
are traded in online trading i.e.33% through share brokers because they given
better advice to buy & sell of shares through online. And remaining investor is
getting advice are magazine, TV channels, Friends &Relations and News papers.
No. of respondents
Percentage
yes
41
83%
No
09
17%
ANALYSIS:
In the survey it was found that 83% of the would like to invest in online trading
and 17% of the investors are not interested to invest in online trading.
INTERPRETATION:
In the survey it was found that 83% of the respondents are would like to invest in
online trading because they want to get more knowledge about share market by
using online trading. And online is a latest channel i.e. available to a service
provider to conduct a business. Only the 17% of the respondents were not accepted
internet as a means of investment planning and advisory services.
Table 4.7
The table showing the number of respondents for factors influence for investing in
online trading
No. of respondents
Percentage
Returns
35
70%
Liquidity
05
10%
Tax concession
10
20%
More investment
ANALYSIS:In the survey it was found that the majority of respondent that is up to 70%
respondents like to invest in online trading for returns, 20% for tax concession and
10% for liquidity.
INTERPRETATION:
In the survey it was found that the majority of respondents are trading purpose is to
get more return what they have invested and 20% of respondents are liquidity
purpose others are tax concession and the investors invested for a secure future
which was the least amongst all. This is because of the conservative nature of the
Indian investors.
Table 4.8
Table showing the no of respondents are more preferred to invest.
No. of respondents
Percentage
16
33%
34
67%
ANALYSIS:In the survey it was found that about 67% of the respondents preferred to invest in
short term investment & 33% of the respondents preferred to invest in long term
investment.
Graph 4.8
Graph showing the no of respondents are more preferred to invest.
INTERPRETATION
In the survey it was found that about 67% of the respondents are invested in short
term because of they want to get money in short period to full fill their financial
commitment. And others are having more money and they are not much financial
commitment
Maharanis Arts & Commerce College For Women, Mysore
Page 51
Table 4.9
Table showing the Stock exchange at which internet trading are commonly
done.
No. of respondents
Percentage
NSE
30
60%
BSE
20
40%
Total
50
100%
Stock
exchange
ANALYSIS:The above table indicates that 40% of respondents trade with BSE and remaining
60% of respondent trade with NSE.
Graph 4.9
Graph showing the Stock exchange at which internet trading are commonly done.
INTERPRETATION:
The above graph indicates that 40% of respondents trade with BSE and remaining
60% of respondent trade with NSE. Because of NSE is compare to BSE is
contains less business sectors so the investor are going to invest more in
NSE.
Table 4.10
The table showing investors trading habits.
Trading habits
No.
of
Percentage
respondents
Regular
25
50
Occasionally
07
14
Weekly
10
20
Monthly
08
16
Others
00
00
Total
50
100
ANALYSIS:In the survey it was found that 50% of investors are trading regularly, 16% of the
investors trading weekly, 20% of the investors trading monthly and 14% of
investors trading occasionally.
Graph 4.10
The graph showing investors trading habits.
INTERPRETATION:
In the survey it was found that 50% of investors are trading regularly because of
they are not committed to the other work. And private sector workers are trading
weekly. Others are doing monthly. Because the peoples are highly committed with
the personnel business so the more peoples are trading in monthly.
SUGGESSIONS:
Most of the respondent are not aware of internet share trading so
government should make efforts to educate people on this.
The stock exchange most establish there operating Branches across the
country so as to easily accessible to the investors.
In advancer city there is limited internet service providers so exchanges
should establish branches in all district level also.
Many internet share trading sites do not offer facility to apply for IPOs
online they need to be provided by all.
The internet usage cost should come down so that more and more people
encourage using internet for trading.
OBSERVATIONS:
Most of the investors prefer fixed deposits rather than shares.
So
Newsletters etc.
CONCLUSION
The country economies development is resorted in to variety of aspects that
tend to improve and speed up the process of development. In this context,
contribution of the capital market is consents. The role capital market is
omniscient as it bridges the gap between the capital deficiencies and capital
surplus. In order to ensure the transparency so as to enable the investors to
speed up their process of investing, the stock exchanges are restoring to
screen based train
Online trading plays a vital role in the economy by mobilizing savings and
investing them in capital market, thus establishes a link between savings and
capital market. Now slowly more and more investors are attracted towards
online trading for high returns, tax concession etc.
The trading outcry system failed to provide transparency, hence for the only
resort to opt was technology infrastructure to the share trading, thus,
facilitating the open up of BOLT in the country. The process can succeed
when it is properly communicated to the targets. In this direction, the project
focused to study the awareness level and perception of investors towards
online share trading.
Maharanis Arts & Commerce College For Women, Mysore
Page 59
BIBLIOGRAPHY
1. BOOKS REFFERED:
Security Analysis and Portfolio Management.(6th edition)
Punithavathy Pandian.
FinancialManagement, (6th edition)... Prasanna
Chandra
ResearchMethodologyDavid.R.Cooper
andSchindler
2. WEBSITES VISITED:
www.bmawc.com
www.icicidirect.com
www.nseindia.com
www.economictimes.com
APPENDIX
The information provided by you will be used only for academic purpose. I hope
you will co-operate for this.
DATE :
BALAKRISHNA.N
PLACE:
INVESTOR QUESTIONNAIRE
1)
Name:
2)
Address:
3)
Age :
4)
Qualification:
5)
6)
(a)
Post Graduate
(c)
Under Graduate
8)
(d) others
Occupation:
(a)
Service
(c)
Self employment
(b)
(d)
Business
others
7)
(b) Graduate
Yes.
(b)
No
What is your objective of investing in Shares, Bonds and Mutual Funds etc?
(a)
(c)
To meet emergency
(b)
(b) Insurance
9)
(c)
Equity market
(d)Bonds
(e)
Mutual Fund
(f) Others
Do you know online Trading and how to buy and sell shares in online?
(a)
10)
11)
(b)
No
Shares Brokers
(c)
T.V. Channels
(e)
(b)
Magazine
(d) News Papers
12)
Yes
Yes
(b)
No
Returns
(b)
Liquidity
(c)
Tax concession
(d)
Regular
(b) Occasionally
(c)
Once in a week
(e)
Other time
NSE
(b) BSE
b)