A STUDY ON DEMAT AND ONLINE TRADING IN SECONDARY

MARKET
A SYNOPSIS
Of the PROJECT
Submitted to
BANGALORE UNIVERSITY
For the award of the Degree of
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY
ANUPRIYA DUTTA
Reg no.-11CQCMAO!
UNDER T"E GUIDANCE OF
D#. NARAS"IMA MURT"Y

D$%$n$n&$ S$g$# Co''ege o( M$n$ge)en* $n& In(o#)$*+on Te,-no'og%
Shavige Malleshwara Hills, K.S. laout, !aout, "a#galore $ %&''()
*+ademi+ ,ear- .'/'-.'/.
INTRODUCTION
0emateriali1atio# of se+urities 2shares3 was the +omme#+eme#t of the era of sto+4s. The
begi##i#g was made i# /55&, with legislatio# of the de6ositor a+t /55& a#d SE"7 regulatio#s
/55&.
The "omba Sto+4 E8+ha#ge 2"SE3 a#d the 9atio#al Sto+4 E8+ha#ge of 7#dia !td 29SE3 are
the two 6rimar e8+ha#ges i# 7#dia. 7# additio#, there are .: Regio#al Sto+4 E8+ha#ges.
However, the "SE a#d 9SE Have established themselves as the two leadi#g e8+ha#ges a#d
a++ou#t for about )' 6er+e#t of the e;uit volume traded i# 7#dia. The 9SE a#d "SE are almost
e;ual i# si1e i# terms of dail traded volume.
The 6rimar i#de8 of "SE is "SE Se#se8 +om6risi#g <' sto+4s. The "SE Se#se8 is the older
a#d more widel followed i#de8. "oth these i#di+es are +al+ulated o# the basis of mar4et
+a6itali1atio# a#d +o#tai# the heavil traded shares from 4e se+tors. The mar4et is +losed o#
Saturdas a#d Su#das. The 4e regulator gover#i#g Sto+4 E8+ha#ges, "ro4ers, 0e6ositories
6arti+i6a#ts, Mutual =u#ds, =77s a#d other 6arti+i6a#ts i# 7#dia# se+o#dar a#d 6rimar mar4et
is the Se,.#+*+e/ $n& E0,-$nge Bo$#& O( In&+$ 1SEBI2 L*&.
7#dia e#ters the +ber tradi#g era to e;ual the +urre#t mar4et tre#ds ta4i#g i#to +o#sideratio# the
#eed to fa+ilitate i#flow of fu#ds i# the +a6ital mar4et. The tradi#g sstem will e#able all
+ategories of i#vestors, reside#t a#d #o#-reside#t 7#dia#, to trade o#li#e. O#li#e tradi#g has
basi+all re6la+ed a 6ho#e +all with 7#ter#et.O#li#e bro4erage i# 7#dia is still i# its earl das.
Though the trade through o#li#e bro4i#g is ver mi#is+ule +om6are to total tradi#g, the sig#s are
that it will grow to .'> to .%> i# #e8t few ears.
RATIONALE AND SIGNIFICANCE OF T"E STUDY
Phsi+al tradi#g has bee# give# u6 b ma# sto+4 e8+ha#ge arou#d the world a#d till 7#dia is
+at+hi#g u6. Tra#s6are#+ has be+ome a# im6orta#t issue with the regular series of s+ams over
the ears. *t this ?u#+ture, 7#dia# i#vestors are able to avail the fa+ilities of 0e6ositor
6arti+i6a#ts, 0e6ositories, alo#g with bro4erage. So how far this sstem is wor4i#g i# 7#dia a#d
the i#vestors e86erie#+e with these #ew sstem of tradi#g.
NATURE OF T"E STUDY3 STATEMENT OF T"E
PROBLEM
O#li#e tradi#g a#d 0emat are the two emergi#g +o#+e6ts i# sto+4 mar4et. 7t i#volves 6erso#al
fa+tors, te+h#i+al fa+tors, busi#ess fa+tors a#d e+o#omi+ fa+tors. The i#ter6la of these fa+tors
o# sto+4 mar4et re;uires a dee6 stud about the 6atter# 6ro+ess a#d 6ro+edures a#d
6erforma#+e.
This stud is i#te#ded to ide#tif the various +o#+e6ts about demat a#d the o#li#e tradi#g a#d its
wa of fu#+tio#i#g. This stud also i#volves a#al1i#g the feasibilit of E-bro4i#g i# 7#dia
4ee6i#g i# view of global s+e#ario of E-bro4i#g @ sstem 6ro+edure
OB4ECTIVES
The mai# ob?e+tives of the stud are as followsA
To stud the effe+tive#ess of o#li#e tradi#g i# se+o#dar mar4et.
To stud the +ost of o#li#e tradi#g.
To 4#ow the mar4et leaders i# the segme#t.
To offer suggestio#s based o# fi#di#gs
"YPOT"ESIS OF T"E STUDY
*lter#ative H6othesis, HaA 0ematerialisatio# a#d o#li#e tradi#g is ver im6orta#t for tradi#g i#
se+o#da mar4et.
9ull h6othesis, HBA 0ematerialisatio# a#d o#li#e tradi#g is #ot ver im6orta#t for tradi#g i#
se+o#da mar4et.
RESEARC" DESIGN
Throughout the stud a# attem6t has bee# made to arrive at the +o#+lusio#s with hel6 of
e+o#omi+ reaso#i#g, e86erie#+e derived from se+o#dar mar4ets from the lesso#s of the
e+o#omi+ histor. 7 am +o#s+ious that this 6eriod is ver short for des+ribi#g the i#vestme#t
behavior of se+o#dar mar4ets. The assets, whi+h the +or6oratio# has i#herited, have dee6 roots
a#d ?ustif full dis+ussio# i# its histori+al 6ers6e+tive.
SOURCES OF DATA
0atabase +a# be +lassified i#to two +ategories, whi+h areA
Primar data a#d se+o#dar data.
P#+)$#% D$*$
The 6ro+edure followed i# the +olle+tio# of 6rimar data is from the ;uestio##aire.
Se,on&$#% D$*$
The se+o#dar data +olle+ted from differe#t websites, ?our#als, a#d the available literature o#
the sub?e+t.
ORGANISATION OF T"E STUDY
The resear+h +om6rises of the followi#g +ha6tersA
Chapter I: Introduction.
Chapter 2: Objectives and Design of the study.
Chapter 3: rofi!e of the industry and Organi"ation.
Chapter #: $na!ysis and Interpretation of the study.
Chapter %: Conc!usions and &uggestions.