SUMMER INTERNSHIP PROJECT

ON

“ONLINE TRADING MECHANISM AT SHAREKHAN”

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE OF

BACHELOR IN BUSINESS ADMINISTRATION 2018

UNDER THE GUIDANCE: SUBMITTED BY:

DR. PANKAJ RAKESH KUMAR
(ASSISTANT PROFESSOR) (42516701716)

SESSION: 2016-2019

SIRIFORT INSTITUTE OF MANAGEMENT STUDIES

PLOT NO.8, INSTITUTIONAL AREA, SECTOR-25, ROHINI, NEW DELHI
AFFILIATED TO G. G. S. INDRAPRASTHA UNIVERSITY, DELHI

i
 CERTIFICATE
This is to certify that project entitled “ONLINE TRADING MECHANISM AT SHAREKHAN”
is a benefited work done by RAKESH KUMAR student of BBA(5th sem), in partial fulfilment of
bachelor of business administration degree and has been certified under our supervision and
guidance.

To the best of knowledge this project is genuine.

SIGNATURE

i
 Summer Training Certificate

Ref. no. …………. Date………....

TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. RAKESH KUMAR of Bachelor of Business Administration (BBA),
Sirifort Institute Of Management Studies, has successfully completed Summer Training
Programme for a period of 7-8 weeks with SHAREKHAN from 5th June, 2018 To 31st July,
2018.
As per our measurements and reporting structure he is hard working and has been excellent during
the training programme.

We wish his all the success for his future.

MR. YOGESH
(ASSISTANT MANAGER-DELHI)

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 DECLARATION
I, hereby declare that the Summer Training Project Report, entitled “ONLINE TRADING
MECHANISM AT SHAREKHAN”, is an authentic work carried out by me at SHAREKHAN. It has
not been submitted earlier for award of any degree or diploma to any institute or university.

Place: New Delhi Candidate’s signature

Date: Name: RAKESH KUMAR

Enrollment No: 42516701716

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 ACKNOWLEDGEMENT
It is my pleasure to be indebted to various people, who directly or indirectly contributed in the
development of this work and who influenced my thinking, behaviour and acts during the course
of study.
I express my sincere gratitude to Mr. MAHABR YADAV, the worthy Director of Sirifort Institute
Of Management Studies, for providing me an opportunity to undergo summer training of doing
this project under his leadership.
I am thankful to Mr. YOGESH for his support, cooperation and motivation provided to me during
the training for constant inspiration, presence and blessings at SHAREKHAN.
I also extend my sincere indebtedness to DR. PANKAJ who provided his/her valuable suggestion
and precious time in accomplishing my project.

I also take the opportunity to express my sincere gratitude to each and every person, who directly
or indirectly helped me throughout the project and without anyone of them this project would not
have been possible.

‘RAKESH KUMAR’

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 EXECUTIVE SUMMARY

As per the title the project report has been prepared regarding the growth and development of
online trading in India. Online trading was initiated by NSE in India and soon after the other
exchanges also followed it. There was a major boom in year 2000 when lots of trading companies
came with a bang but only few were survived because of lack of computer knowledge and low
internet penetration. 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 and HDFC securities, ICICI direct.com, UTI securities etc. on the other hand non-
banking trading companies are Sharekhan.com Angel broking, Reliance money etc. It is
continuously growing and has a large market potential. A study was undertaken to determine the
growth of various online companies in India in terms of trade done by them through online and
services provided by them.

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 TABLE OF CONTENT

S.No. Topic Page No

1 Certificate i

2 Declaration ii

3 Acknowledgement iii

4 Executive Summary iv

5 Chapter-1: Introduction 1-28

 Overview of industry as whole

 SHAREKHAN LIMITED
 S.W.O.T Analysis
 Objectives of the study
 Methodology

6 Chapter-2: Conceptual Framework 29-46

7 Chapter-3: Summary Conclusion 47-48

 Limitations of study
 Conclusion and Recommendations

8 Bibliography 49

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vii
OVERVIEW OF INDUSTRY AS A WHOLE
Following diagram gives the structure of Indian financial system:

Financial markets are helpful to provide liquidity in the system and for smooth functioning of the system.
These markets are the centers that provide facilities for buying and selling of financial claims and
services. The financial markets match the demands of investment with the supply of capital from various
sources.

According to functional basis financial markets are classified into two types.

They are:

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  Money markets (short-term)
 Capital markets (long-term)
According to institutional basis again classified in to two types. They are

 Organized financial market

 Non-organized financial market.

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

MONEY MARKET:

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

Again, the money market is classified into

 Inter-bank call money market

 Bill market and
 Bank loan market Etc.
E.g.; treasury bills, commercial papers, CD's etc.

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CAPITAL MARKET:

Capital market is a place where we can raise long-term capital.

Again, the capital market is classified in to two types and they are

 Primary market and Secondary market.

E.g.: Shares, Debentures, and Loans etc.

PRIMARY MARKET:

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

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

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

1. Merchant banker/book building lead manager

2. Registrar and transfer agent
3. Adviser to the issue
4. Banker to the issue
5. Depository
6. Depository participant
7. Underwriter/broker to the issue
Investors’ protection in the primary market:
To ensure healthy growth of primary market, the investing public should be protected. The term
investor protection has a wider meaning in the primary market.

The principal ingredients of investors’ protection are:

 Provision of all the relevant information

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

SECONDARY MARKET
The primary market deals with the new issues of securities. Outstanding securities are traded in the
secondary market, which is commonly known as stock market or stock exchange. “The secondary
market is a market where scrips are traded”. It is a market place which provides liquidity to the scrip’s
issued in the primary market. Thus, the growth of secondary market depends on the primary market.
More the number of companies entering the primary market, the greater are the volume of trade at
the secondary market. Trading activities in the secondary market are done through the recognized

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 stock exchanges which are 23 in number including Over. The Counter Exchange of India (OTCE),
National Stock Exchange of India and Interconnected Stock Exchange of India.

Secondary market operations involve buying and selling of securities on the stock exchange through
its members. The companies hitting the primary market are mandatory to list their shares on one or
more stock exchanges in India. Listing of scrips provides liquidity and offers an opportunity to the
investors to buy or sell the scrip’s.

The following are the intermediaries in the secondary market:

1. Broker/member of stock exchange – buyers’ broker and sellers’ broker

2. Portfolio Manager
3. Investment advisor
4. Share transfer agent
5. Depository
6. Depository participants.
STOCK MARKETS IN INDIA:

Stock exchanges are the perfect type of market for securities whether of government and semi-govt
bodies or other public bodies as also for shares and debentures issued by the joint-stock companies. In the
stock market, purchases and sales of shares are affected in conditions of free competition. Government
securities are traded outside the trading ring in the form of over the counter sales or purchase. The
bargains that are struck in the trading ring by the members of the stock exchanges are at the fairest prices
determined by the basic laws of supply and demand.

Definition of a stock exchange:

“Stock exchange means anybody or individuals whether incorporated or not, constituted for the purpose
of assisting, regulating or controlling the business of buying, selling or dealing in securities.” The securities
include:

 Shares of public company.

 Government securities.
 Bonds

History of Stock Exchanges:

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 The only stock exchanges operating in the 19th century was those of Mumbai setup in 1875 and
Ahmadabad set up in 1894. These were organized as voluntary nonprofit-marking associations of
brokers to regulate and protect their interests. Before the control on securities under the constitution
in 1950, it was a state subject and the Bombay securities contracts (control) act of 1925 used to
regulate trading in securities. Under this act, the Mumbai stock exchange was recognized in 1927 and
Ahmadabad in 1937. During the war boom, a number of stock exchanges were organized. Soon after it
became a central subject, central legislation was proposed and a committee headed by A.D.Gorwala
went into the bill for securities regulation. On the basis of the committee’s recommendations and
public discussion, the securities contract (regulation) act became law in 1956.

Functions of Stock Exchanges:

Stock exchanges provide liquidity to the listed companies. By giving quotations to the listed companies, they
help trading and raise funds from the market. Over the hundred and twenty years during which the stock
exchanges have existed in this country and through their medium, the central and state government have
raised crores of rupees by floating public loans. Municipal corporations, trust and local bodies have obtained
from the public their financial requirements, and industry, trade and commerce- the backbone of the
country’s economy-have secured capital of crores or rupees through the issue of stocks, shares and
debentures for financing their day-to-day activities, organizing new ventures and completing projects of
expansion, diversification and modernization. By obtaining the listing and trading facilities, public investment
is increased and companies were able to raise more funds. The quoted companies with wide public interest
have enjoyed some benefits and assets valuation has become easier for tax and other purposes.

Various Stock Exchanges in India:

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At present there are 23 stock exchanges recognized under the securities contracts (regulation), Act, 1956.
Those are:

o Ahmadabad Stock Exchange Association Ltd.

o Bangalore Stock Exchange
o Bhubaneshwar Stock Exchange Association
o Calcutta Stock Exchange
o Cochin Stock Exchange Ltd.
o Coimbatore Stock Exchange
o Delhi Stock Exchange Association
o Guwahati Stock Exchange Ltd
o Hyderabad Stock Exchange Ltd.
o Jaipur Stock Exchange Ltd
o Kanara Stock Exchange Ltd
o Ludhiana Stock Exchange Association Ltd
o Madras Stock Exchange
o Madhya Pradesh Stock Exchange Ltd.
o Magadh Stock Exchange Limited
o Meerut Stock Exchange Ltd.

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 o Mumbai Stock Exchange
o National Stock Exchange of India
o OTC Exchange of India
o Pune Stock Exchange Ltd.
o Saurashtra Kutch Stock Exchange Ltd.
o Uttar Pradesh Stock Exchange Association
o Vadodara Stock Exchange Ltd.

Out of these major stock exchanges were:

NSE (National Stock Exchange)

The National Stock Exchange of India Limited has genesis in the report of the High-Powered Study
Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock
Exchange by financial institutions (FI’s) to provide access to investors from all across the country on an
equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at
the behest of the Government of India and was incorporated in November 1992 as a tax-paying
company unlike other stock exchanges in the country. On its recognition as a stock exchange under
the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the
Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment
commenced operations in November 1994 and operations in Derivatives segment commenced in June
2000

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NSE's mission is setting the agenda for change in the securities markets in India. The NSE was set-up with the
main objectives of:

o Establishing a nation-wide trading facility for equities and debt instruments.

o Ensuring equal access to investors all over the country through an appropriate communication
network.
o Providing a fair, efficient and transparent securities market to investors using electronic trading systems.
o Enabling shorter settlement cycles and book entry settlements systems, and Meeting the
current international standards of securities markets.

The standards set by NSE in terms of market practices and technology, have become industry benchmarks
and are being emulated by other market participants. NSE is more than a mere market facilitator. It's that
force which is guiding the industry towards new horizons and greater opportunities.

BSE (Bombay Stock Exchange)

The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875 as "The Native Share
and Stock Brokers Association". It is the oldest one in Asia, even older than the Tokyo Stock Exchange,

xvi
 which was established in 1878. It is a voluntary non-profit making Association of Persons (AOP) and is
currently engaged in the process of converting itself into demutualized and corporate entity. It has
evolved over the years into its present status as the premier Stock Exchange in the country. It is the
first Stock Exchange in the Country to have obtained permanent recognition in 1956 from the Govt. of
India under the Securities Contracts (Regulation) Act 1956.The Exchange, while providing an efficient
and transparent market for trading in securities, debt and derivatives upholds the interests of the
investors and ensures redresses of their grievances whether against the companies or its own
member-brokers. It also strives to educate and enlighten the investors by conducting investor
education programmers and making available to them necessary informative inputs.

A Governing Board having 20

directors are the apex body, which decides
the policies and regulates the affairs of the
Exchange. The Governing Board consists of
9 elected directors, who are from the
broking community (one third of them
retire ever year by rotation), three SEBI
nominees, six public representatives and
an Executive Director & Chief Executive
Officer and a Chief Operating Officer.

The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of
the Exchange and the Chief Operating Officer and other Heads of Department assist him.

The Exchange has inserted new Rule No.126 A in its Rules, Byelaws pertaining to constitution of the
Executive Committee of the Exchange. Accordingly, an Executive Committee, consisting of three
elected directors, three SEBI nominees or public representatives, Executive Director & CEO and Chief
Operating Officer has been constituted. The Committee considers judicial & quasi matters in which
the Governing Board has powers as an Appellate Authority, matters regarding annulment of
transactions, admission, continuance and suspension of member brokers, declaration of a member-
broker as defaulter, norms, procedures and other matters relating to arbitration, fees, deposits,
margins and other monies payable by the member-brokers to the Exchange, etc.

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Regulatory frame work of stock exchange
A comprehensive legal framework was provided by the “Securities Contract Regulation Act, 1956” and
“Securities Exchange Board of India 1952”. Three tier regulatory structure comprising

 Ministry of finance
 The Securities and Exchange Board of India
 Governing body
Members of the stock exchange:
The securities contract regulation act 1956 has provided uniform regulation for the admission of
members in the stock exchanges. The qualifications for becoming a member of a recognized stock
exchange are given below:

• The minimum age prescribed for the members is 21 years.

• He should be an Indian citizen.
• He should be neither a bankrupt nor compound with the creditors.
• He should not be convicted for fraud or dishonesty.
• He should not be engaged in any other business connected with a company.
• He should not be a defaulter of any other stock exchange.
• The minimum required education is a pass in 12th standard examination.

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 central government.

xviii
 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 takeover 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.
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 stock exchanges
depending upon their turnover of trade and other factors.
• All recognized stock exchanges will have to inform about transactions within 24 hrs.

TYPES OF ORDERS:
Buy and sell orders placed with members of the stock exchange by the investors. The orders are of
different types.

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

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

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

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

Buying and selling shares: To buy and sell the shares the investor has to locate register broker or sub
broker who render prompt and efficient service to him. The order to buy or sell specifying the number
of shares of the company of investors’ choice is placed with the broker. The order may be of any type.
After receiving the order, the broker tries to execute the order in his computer terminal. Once
matching order is found, the order is executed. The broker then delivers the contract note to the
investor. It gives the details regarding the name of the company, number of shares bought, price,
brokerage, and the date of delivery of share. In this physical trading form, once the broker gets the
share certificate through the clearing houses he delivers the share certificate along with transfer deed
to the investor. The investor has to fill the transfer deed and stamp it. The stamp duty is one of the
percentage considerations, the investor should lodge the share certificate and transfer deed to the
register or transfer agent of the company. If it is bought in the DEMAT form, the broker has to give a
matching instruction to his depository participant to transfer shares bought to the investors account.
The investor should be account holder in any of the depository participant. In the case of sale of
shares on receiving payment from the purchasing broker, the broker effects the payment to the
investor.

Share groups: The scrips traded on the BSE have been classified into

‘A’,’B1’,’B2’,’C’,’F’ and ‘Z’ groups. The ‘A’ group represents those, which are in the carry forward
system. The ‘F’ group represents the debt market segment (fixed income securities). The Z group
scrips are of the blacklisted companies. The ‘C’ group covers the odd lot securities in ‘A’, ‘B1’&’B2’
groups.

ROLLING SETTLEMENT SYSTEM:

Under rolling settlement system, the settlement takes place n days (usually 1, 2, 3 or 5days) after the
trading day. The shares bought and sold are paid in for n days after the trading day of the particular
transaction. Share settlement is likely to be completed much sooner after the transaction than under
the fixed settlement system.

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 The rolling settlement system is noted by T+N i.e. the settlement period is n days after the trading
day. A rolling period which offers a large number of days negates the advantages of the system.
Generally longer settlement periods are shortened gradually.

SEBI made RS compulsory for trading in 10 securities selected on the basis of the criteria that they
were in compulsory demat list and had daily turnover of about Rs.1 crore or more. Then it was
extended to “A” stocks in Modified Carry Forward Scheme, Automated Lending and Borrowing
Mechanism (ALBM) and Borrowing and lending Securities Scheme (BELSS) with effect from Dec 31,
2001.

SEBI has introduced T+5 rolling settlement in equity market from July 2001 and subsequently
shortened the cycle to T+3 from April 2002. After the T+3 rolling settlement experience it was further
reduced to T+2 to reduce the risk in the market and to protect the interest of the investors from 1st
April 2003.

Activities on T+1: conformation of the institutional trades by the custodian is sent to the stock
exchange by 11.00 am. A provision of an exception window would be available for late confirmation.
The time limit and the additional changes for the exception window are dedicated by the exchange.

The exchanges/clearing house/ clearing corporation would process and download the obligation files
to the broker’s terminals late by 1.30 p.m. on T+1. Depository participants accept the instructions for
pay in securities by investors in physical form up to 4 p.m. and in electronic form up to 6 p.m. the
depositories accept from other DPs till 8p.m for same day processing.

Activities on T+2: The depository permits the download of the paying in files of securities and funds till 10.30
a.m. on T+2 from the brokers’ pool accounts. The depository processes the pay in requests and transfers the
consolidated pay in files to clearing House/clearing Corporation by 11.00am/on T+2. The exchange/clearing
house/clearing corporation executes the pay-out of securities and funds latest by 1.30 p.m. on T+2 to the
depositories and clearing banks. In the demat mode net basis settlement is allowed. The buy and sale
positions in the same scrip can be settled and net quantity has to be settled.

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SHAREKHAN – ALWAYS THE FIRST
Founded in 2000 and a subsidiary of BNP Paribas since November 2016, Sharekhan was one of the
first brokers to offer online trading in India. With 16 lakh customers, 153 branches and more than 2400
business partners spread across over 575 locations, Sharekhan is one of the largest brokers in India.
Sharekhan offers a wide range of savings & investment solutions including equities, futures and
options. currency trading, portfolio management, research and mutual funds and investor education. On
an average, Sharekhan executes more than 400,000 trades daily

Guiding India's retail stock investors for 16 years

Registered with NSE and BSE for capital market, futures and options and currency segments and CDSL
and NSDL for depository services.

A full-service stock broking firm providing online services right from online account opening to trading
and investments.

Created India’s best online trading platforms: Website (www.sharekhan.com), TradeTiger (the
ultimate desktop trading software), Sharekhan App (available for Android and iOS devices) and
Sharekhan Mini (a low bandwidth website especially for mobile browsers)

A strong brick-and-mortar network with over 2600 outlets in 575+ cities

Research-based financial advice on all asset classes to suit all investing and trading styles

Dedicated Education and training courses for investors and traders in association with Online Trading
Academy

The firm’s online trading and investment site - www.sharekhan.com - was launched on Feb 8, 2000. The site
gives access to superior content and transaction facility to retail customers across the country. Known for its
jargon-free, investor friendly language and high quality research, the site has a registered base of over one
lakh customers. The content-rich and research oriented portal has stood out among its contemporaries
because of its steadfast dedication to offering customers best-of-breed technology and superior market
information. The objective has been to let customers make informed decisions and to simplify the process of
investing in stocks.

xxii
 On April 17, 2002 Sharekhan launched Speed Trade, a net-based executable application that emulates the
broker terminals along with host of other information relevant to the Day Traders. This was for the first time
that a net-based trading station of this caliber was offered to the traders. In the last six months Speed Trade
has become a de facto standard for the Day Trading community over the net.

Share khan’s ground network includes over 1288 centers in 325 cities in India which provide a host of trading
related services.

Sharekhan has always believed in investing in technology to build its business. The company has used some
of the best-known names in the IT industry, like Sun Microsystems, Oracle, Microsoft, Cambridge
Technologies, Nexgenix, Vignette,

Verisign Financial Technologies India Ltd, Spider Software Pvt Ltd. to build its trading engine and content. The
Morakhiya family holds a majority stake in the company. HSBC, Intel & Carlyle are the other investors.

With a legacy of more than 80 years in the stock markets, the SSKI group ventured into institutional broking
and corporate finance 18 years ago. Presently SSKI is one of the leading players in institutional broking and
corporate finance activities. SSKI holds a sizeable portion of the market in each of these segments. SSKI’s
institutional broking arm accounts for 7% of the market for Foreign Institutional portfolio investment and 5%
of all Domestic Institutional portfolio investment in the country. It has 60 institutional clients spread over
India, Far East, UK and US. Foreign Institutional Investors generate about 65% of the organization’s revenue,
with a daily turnover of over US$ 2 million. The Corporate Finance section has a list of very prestigious clients
and has many ‘firsts’ to its credit, in terms of the size of deal, sector tapped etc. The group has placed over
US$ 1 billion in private equity deals. Some of the clients include BPL Cellular Holding, Gujarat Pipavav, Essar,
Hutchison, Planetasia, and Shopper’s Stop.

xxiii
xxiv
AWARDS & RECOGNITION

xxv
SWOT ANALYSIS
Strengths
 Strong credibility among investors because of its heritage.
 Excellent reputation among the business society.
 Capability of providing superior customer service.
 Quality research team.
 Easier access to the customer due to largest ground network of 280 branded
 share shops in 120 cities.
 Abundant information about economy and companies.
 Ability to attract and retain superior and quality personnel.
 Highly sophisticated infrastructure.
 Efficient research and analysis team, which by interpreting the economy and
 company’s performance accurately is enhancing the profitability of the clientele.

Weaknesses
o Limited customer appeal as the company product line does not include mutual
o funds which is increasingly becoming a preferred customer investment option.
o Inadequate product awareness among the retail investors.
o Limited customer appeal as the company does not have access to the BSE
o online space.
o Brand awareness is low in the financial market.
o Promotional activities conducted by the company are not at par with the other
o firms.

Opportunities
 Hyderabad covers only 2% of investors which gives huge potential for the market
 penetration.
 Bullish phase of the market attracts investing public.
 Access to the BSE online space for the retail investors creates opportunity to
 increase clientele base.
 Awareness campaigns about online trading create new market.

Threats
▪ Availability of Unit Linked Insurance Policies (ULIP’s) and mutual funds in the
▪ market.
▪ Threat of entry is high in this industry as the manpower required is less and
▪ capital requirement is medium.

xxvi
OBJECTIVES OF THE STUDY:
• It is to analyze the changes in trading after the exchange shifted from outcry to online trading

system.

• To know the online screen-based trading system adopted by SHAREKHAN and about its

communication facilities. The appropriate configuration to set the network, which would link the

SHAREKHAN to individual / members.

• To know about the latest and future development in the stock exchange trading system.

METHODOLOGY OF THE STUDY:

The data collection methods include both primary and secondary collection methods.

Primary method: This method includes the data collected from the personal interaction with
authorized members of Sharekhan Securities limited.

Secondary method: The secondary data collection method includes:

The lecturers delivered by the superintendents of respective departments.

The brochures and material provided by Sharekhan Securities limited.

The data collected from the magazines of the NSE, economic times, internet, etc.

Various books relating to the investments, capital market and other related topics.

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xxviii
OPEN OUTCRY SYSTEM
Open outcry is the name of a method of communication between professionals on a stock exchange or futures
exchange typically on a trading floor. It involves shouting and the use of hand signals to transfer information
primarily about buy and sell orders.[2] The part of the trading floor where this takes place is called a pit.

In an open outcry auction, bids and offers must be made out in the open market, giving all participants a chance
to compete for the order with the best price. New bids or offers would be made if better than previous pricing
for efficient price discovery. Exchanges also value positions marked to these public market prices on a daily
basis. In contrast, over-the-counter markets are where bids and offers are negotiated privately between
principals.

Since the development of the stock exchange in the 17th century in Amsterdam, open outcry was the main
method used to communicate among traders. This started changing in the latter half of the 20th century, first
through the use of telephone trading, and then starting in the 1980s with electronic trading systems.

As of 2007, a few exchanges still had floor trading using open outcry. The supporters of electronic trading claim
that they are faster, cheaper, more efficient for users, and less prone to manipulation by market
makers and broker/dealers. However, many traders still advocate for the open outcry system on the basis that the
physical contact allows traders to speculate as to a buyer/seller's motives or intentions and adjust their positions
accordingly. As of 2010, most stocks and futures contracts were no longer traded using open outcry due to the
lower cost of the aforementioned technological advances.

END OF THE OUTCRY SYSTEM

While open outcry dates back centuries as the dominant method for trading, most exchanges now use electronic
trading systems. These automated systems reduce the costs, improve trade execution speed, and create an
environment less prone to manipulation. They also make it easier to aggregate information for all interested
parties. Electronic trading is now available, often for free, on home computers and smartphones.

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Some professional traders lament that electronic trading cannot capture the intangible information upon which
pit traders relied. As an example, electronic trading is void of the subjective assessment of a buyer or seller's
intentions or motivations. Electronics do not relay the mood of the trading pit, which is now only available in
old movies. Trading Places, starring Eddie Murphy and Dan Aykroyd, provided a rather good look into the
methods, frustrations, and even the advantages that experienced pit traders have at their disposal.

DISADVANTAGES OF OUTCRYSYSTEM:
 It lacks transparency.
 The scope of manipulation, speculations and mal practice is more.
 Signal were more important in the outcry system any member who could not interpret the
buy/sell signal correctly often landed himself in diasaster situation.
 In audibility was another disadvantage of the Outcry system.
 Due to the above disadvantages of the Outcry system the “Sharekhan” has shifted from
Outcry system to Online trading from February 29th 1997.

MANUAL TRADING

Manual trading is a trading system that involves human decision-making for entering and exiting trades. This is
in contrast to automatic trading, which employs programs linked to market data, which are able to originate
trades based on human instructional criteria. Manual traders often employ computer programs in order to
consolidate information. In some cases, they may also set automated indicators to alert them to potential trading
opportunities. However, in all cases, human input is required to authorize trades.

The steps involved in this method of trading have below:

1. Choice Broker:

Sell shares and transact business, have to act through member brokers only. They can also
appoint their bankers for this purpose as per the present regulations.

2. Placement of Order:

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The next step is the prospective investor who wants to buy shares or the investors, who wants to
place order for the purchase or the sale of securities with a broker. The order is usually placed by
telegram, telephone, letter, fax,etc or in person. To avoid delay. It is placed generally over the
phone. The orders may take any one of the forms such as At best orders, limit order, immediate or
cancel order, limited discretionary order, and open order, stop loss order.

3. Execution of order or contract:

Orders are executed in the trading ring of the BSE. This works from 11:30 to 2:30 P.M. on all
working days Monday to Friday, and a special one-hour session on Saturday. The members or the
authorized assistants have to wear a badge given by the exchangeto enter in to the trading ring.
They carry a sauda Block book or conformation memos, which are duly authorized by the
exchange when the deal is struck; both broker and jobber make a note in their sauda block book.
From the sauda book, the contract notes are drawn up and posted to the client. A contract note is
written between the broker and his clients for the transaction executed.

4. Drawing up and Bills:

Both sale and purchase bills are prepared along with the contract note and it is posted on the same
say or the next day. This in a purchase transaction, once the shares are delivered to the clients
effects payments for the purchase and pays the stamp fees for transfer, a bill is made out giving
the total cost of purchase, including other expenses incurred by the broker in the price itself. With
this, the process ends.

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

1) What is Internet?

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The internet is a globally connected network system that uses TCP/IP to transmit data via various
types of media. The internet is a network of global exchanges – including private, public, business,
academic and government networks – connected by guided, wireless and fiber-optic technologies.

The terms internet and World Wide Web are often used interchangeably, but they are not exactly
the same thing; the internet refers to the global communication system, including hardware and
infrastructure, while the web is one of the services communicated over the internet.

As computing advanced, peer-to-peer (P2P) communication was gradually delivered and

enhanced. Since the 1990s, the internet has greatly influenced and upgraded networking to global
standards. Billions of internet users rely on multiple application and networking technologies,
including:

Internet Protocol (IP): The internet’s primary component and communications backbone. Because
the internet is comprised of hardware and software layers, the IP communication standard is used
to address schemes and identify unique connected devices. Prominent IP versions used for
communications include Internet Protocol version 4 (IPv4) and Internet Protocol version 6 (IPv6).

Communications: The internet is the most cost-effective communications method in the world, in
which the following services are instantly available:

1. Email
2. Web-enabled audio/video conferencing services
3. Online movies and gaming
4. Data transfer/file-sharing, often through File Transfer Protocol (FTP)
5. Instant messaging
6. Internet forums
7. Social networking
8. Online shopping
9. Financial services
10. On Trading

The internet originated with the U.S. government, which began building a computer network in
the 1960s known as ARPANET. In 1985, the U.S. National Science Foundation (NSF)

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commissioned the development of a university network backbone called NSFNET. The system
was replaced by new networks operated by commercial internet service providers in 1995. The
internet was brought to the public on a larger scale at around this time.

2) E-Commerce

Electronic business (e-business) refers to the use of the Web, Internet, intranets, extranets or some combination
thereof to conduct business. E-business is similar to e-commerce, but it goes beyond the simple buying and
selling of products and services online. E-business includes a much wider range of businesses processes, such
as supply chain management, electronic order processing and customer relationship management. E-business
processes, therefore, can help companies to operate more effectively and efficiently.

Electronic business is a broader term that encompasses other common terms such as e-commerce
and e-tailing. As more of companies' sales, marketing and other internal business processes are
conducted digitally, electronic business processes such as customer relationship management
(CRM), enterprise resource planning (ERP), and content management are becoming increasingly
important. This shift has also been facilitated by improved security measures for online
transactions.

There are 6 basic types of e-commerce:

 Business-to-Business (B2B)
 Business-to-Consumer (B2C)
 Consumer-to-Consumer (C2C)
 Consumer-to-Business (C2B).
 Business-to-Administration (B2A)
 Consumer-to-Administration (C2A)

EVOLUTION OF BROKING IN INDIA

The evolution of a broking in India can be categorized in three phases:

 Stockbroker will offer on their sites features such as live portfolio manager, live quotes,
market research and news, etc. to attract more investors.
 Brokers will offer online broking and relationship management by providing and offering
analysis and information to investors during broking and non-broking hours based on their
profile and needs, i.e. customized services.

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  Brokers (now e-broking) will offer value management or services like initial public
offering online, on-line asset allocation, portfolio management, financial planning, tax
planning, insurance services, etc. and enables the investors to take better and well
considered decisions.

MEANING OF ONLINE TRADING

Online trading is basically the act of buying and selling financial products through an online
trading platform. These platforms are normally provided by internet based brokers and are
available to every single person who wishes to try to make money from the market.
Most brokers, like forex, provide a variety of financial products including Shares, Commodities,
Indices and Forex. While trading Shares like Google or buying and selling Commodities like Gold
or Silver might be quite familiar, Forex trading has gained extreme popularity over the last couple
of years due to some of its major features.
In others word Investing online, also known as online trading or trading online, is a process by
which individual investors and traders buy and sell securities over an electronic network, typically
with a brokerage firm. This type of trading and investing has become the norm for individual
investors and traders since late 1990s with many brokers offering services via a wide variety
of online trading platforms.

IN INDIA ONLINE TRADING:

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

OBJECTIVES:
Internet trading is expected to:-

 Increase transparency in the markets.

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  Enhance market quality through improved liquidity, by increasing quote continuity and
market depth.
 Reduce settlement risks due to open trades, by eliminating of mismatches.
 Provide management information system.
 Introduce flexibility in system, so as to handle growing volumes easily and to support
nationwide expansion of market activity.
Besides, through internet trading three fundamentals objectives of securities regulation can be
easily achieved, these are:

 Investor protection
 Creation of a fair and efficient market, and
 Reduction of the systematic risks.

HISTORY OF ONLINE TRADING:

Prior to the Internet, investors had to place an order through a stockbroker, in person or via telephone. The firm
then entered the order in their system, which was linked to trading floors and exchanges.

In 1985, Trade*Plus offered a retail trading platform on America Online and CompuServe, and in 1991 one of
its founders, William Porter, created a new subsidiary company called E*Trade Securities, Inc.

In August 1994, K. Aufhauser & Company, Inc. (later acquired by TD Ameritrade) became the first brokerage
firm to offer online trading via its "Wealth WEB". Online investing has experienced significant growth since
that time. Investors could now enter orders directly online, or even trade with other investors via electronic
communication networks (ECN). Some orders entered online are still routed through the broker, allowing agents
to approve or monitor the trades. This step helps protect both the client and brokerage firm from unlawful or
incorrect trades that could affect the client’s portfolio or the stockbroker’s license.

Online brokers in the US are often referred to as discount brokers but in Europe and Asia many so-called online
brokers work with high-net-worth individuals. Their popularity is attributable to the speed and ease of their
online order entry, and to fees and commissions significantly lower than those of full service brokerage firms
within the US. Two types of online brokerages have emerged in the US in the mid-2000s: those offering direct-
access trading on exchanges, and those that route orders to market maker firms to have their orders filled.

TOOLS AND PLATFORMS FOR ONLINE TRADING:

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Investors who trade through an online brokerage firm are provided with a online trading platform. The online
trading platform acts as the hub, allowing investors to purchase and sell such securities as fixed
income, equities/stock, options, and mutual funds. Included with the platform are tools to track and monitor
securities, portfolios and indices, as well as research tools, real-time streaming quotes and up-to-date news
releases—all of which are necessary to trade profitably. Often, more robust research tools are available such as
full, in-depth analyst reports and analysis, and customized backtesting and screeners to see how particular
investment strategies would have been realized during different historical periods.

RISK INVOLVED:

In all investments, there is a risk of investment fraud. This risk can increase for online brokers where the investor
does not have a personal relationship and the broker may be located in a different jurisdiction. For this reason
some regulators warn potential investors to research the online brokers they plan to employ, assuring that those
firms are licensed within their state, provincial or national jurisdiction. Informed investors are less likely to fall
victim to unlawful securities schemes, such as the so-called "boiler room" scam. The US Federal Government
provides practical tips to avoid investment scams via their On Guard Online website. This website cautions
investors to be wary of internet newsletters, investing blogs, or bulletin boards. Stock manipulators often float
false information and "hot tips" on these sites, as part of an effort to affect the price of shares in a particular
security. Investors are also advised to turn to unbiased sources when researching investments. In the US, the U.S.
Securities and Exchange Commission (via their EDGAR database) is one example.

Online investors typically invest without help from a trained stockbroker or investment adviser, and may not
fully understand the potential risks of investing in a particular security. Inexperienced investors are easy prey
for stock manipulators and pump and dump schemes often associated with penny stocks. For this reason, many
online brokers offer a number of investment tools to educate and inform new investors.

DEMATERLIZATION:

Dematerialization offers flexibility along with security and convenience. Holding share certificates
in physical format carried risks like certificate forgeries, loss of important share certificates, and
consequent delays in certificate transfers. Dematerialization eliminates these hassles by allowing
customers to convert their physical certificates into electronic format. Shares in the electronic
format are held in a Demat account.

PROCESS OF DEMATERLIZATION:

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 Dematerialization starts with opening a Demat account. For demat account opening,you need to
shortlist a Depository Participant (DP) that offers Demat services.

 To convert the physical shares into electronic/demat form, A Dematerialization Request Form
(DRF), which is available with the Depository Participant (DP), has to be filled in and deposited
along with share certificates. On each share certificate, 'Surrendered for Dematerialization' needs
to be mentioned.

 The DP needs to process this request along with the share certificates to the company and
simultaneously to registrars and transfer agents through the depository

 Once the request is approved, the share certificates in the physical form will be destroyed and a
confirmation of dematerialization will be sent to the depository

 The depository will then confirm the dematerialization of shares to the DP. Once this is done, a
credit in the holding of shares will reflect in the investor's account electronically.

 This cycle takes about 15 to 30 days after the submission of dematerialization request

 Dematerialization is possible only with a Demat account, Learn about how to open a demat account
to understand dematerialization.

BENEFITS OF DEMAT
Demat account for shares and securities with business purpose

The benefits of demat are as follows:

 Easy and convenient way to hold securities

 Immediate transfer of securities
 No stamp duty on transfer of securities
 Safer than paper-shares (earlier risks associated with physical certificates such as bad
delivery, fake securities, delays, thefts etc. are mostly eliminated)
 Reduced paperwork for transfer of securities
 Reduced transaction cost
 No "odd lot" problem: even one share can be sold

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 Change in address recorded with a Depository participant (DP) gets registered with all
companies in which investor holds securities eliminating the need to correspond with each of
them separately.
 Transmission of securities is done by DP, eliminating the need for notifying companies.
 Automatic credit into demat account for shares arising out of bonus/split,
consolidation/merger, etc.
 A single demat account can hold investments in both equity and debt instruments.
 Traders can work from anywhere (e.g. even from home).

Benefits to brokers:
 It reduces risks of delayed settlement. It ensures greater profit due to increase in volume of trading. It
eliminates chances of forgery or bad delivery. It increases overall trading and profitability. It increases
confidence in their investors.

DOCUMENTS REQUIRED FOR DEMAT ACCOUNT:

To open a Demat account you have to provide documents which fulfill the requirements of KYC (Know Your
Customer) norms. You have to sign a contract with Stock broker. Generally the documents are:

 PAN (compulsory)
 Bank statement (last 3 months)
 Address proof
 Income Tax Return
 Two colour photos
 Bank crossed cheque (If required)
 KYC details
 Aadhar Card

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OTHER REQUIRED, WHICH ARE NECESSARY:

FOR BROKERS:-

1. Permission from Stock exchange for net trading

2. Net worth of Rs. 50lac
3. Adequate back-up system
4. Secured and reliable software system
5. Adequate, experienced and trained staff
6. Communication of order (trade confirmation to investors by e-mail
7. Use of authentic technologies
8. Issue of contract notes within 24 hours of trade execution
9. Setting up a website
The net is used as a medium of trading in internet trading. Orders are communicated to the stock
exchange through website. Internet trading started in India on April 2000 with 79 members seeking
permission for online trading. The SEBI committees on internet based securities trading services
has allowed the net to be used as an Order Routing System(ORS) through registered Stock brokers
on behalf of their clients for execution of transaction.
Under the Order Routing System the clients enters his requirements (security, quantity, price, and
buy/sell) in broker’s website. They checked electronically against the clients account and routed
electronically to the appropriate exchange for execution by the brokers. The client receives a
confirmation on the order. The customer’s portfolio and ledger accounts get updated to reflect the
transaction. The user should have the user ID and password to enter the into the electronic ring.
He should also have demat account and bank account. The system permits only a registered client
to log in using user ID and password. Order can be placed by using place order window of the
website.

PROCEDURE FOR NET TRADING

1. Those investors, who are interested in doing the trading over internet system i.e. NEAT-IXS,
should approach the brokers and get them self-registered with the Stock Broker.

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2. After registration, the broker will provide to them a login name, password and personal
identification number(PIN)
3. Actual placement of an order. An order can then be placed by using the place order window as
under:
(a) First by entering the symbol and series of stock and other parameter like quantity
and price of the script on the place order window.
(b) Second, fill in the symbol, series and the default quantity.
4. It is the process of review. Thus the investor has to review the order placed by clicking the
review option. He may also re-set to clear the values.
5. After the review has been satisfactory, the order has to be sent by clicking on the send option.
6. The investor will receive an “Order Confirmation” message along with the order number and
the value of the order.
7. In case the order is rejected by the broker or stock exchange for certain reason such as invalid
price limit, an appropriate message will appear at the bottom of the screen. At present, a time
tag of about 10 seconds is there in executing the trade.
8. It is regarding charging payment, for which there are different mode. Some brokers will take
some advance payment from the investor and will fix their trading limits. When the trade is
executed will ask the investor for the transfer of funds to his account.

Internet trading providing total transparency between a broker and an investor in the secondary
market. In the open outcry system, only the broker knew the actually transacted price. Screen based
trading provides more transparency. With online trading investors can see themselves the price at
which the deal takes place.
The time gap has narrowed in every stage of operation. Confirmation and execution of trade
reaches the investors within the least possible time, mostly within 30 seconds. Instant feedback is
available about the execution. Some of the websites also offer:

 News and research report

 BSE and NSE movements
 Stock analysis
 IPO and mutual funds centers

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STEP BY STEP PROCEDURE IN ONLINE TRADING:
Following steps explains the step by step approach to on-line trading:
1) Log on to the stock broker’s website
2) Register as client/investor
3) Fill the application form and client broker agreement form on the requisite value stamp
paper
4) Obtain user ID and password
5) Log on the broker’s site using secure user ID and password
6) Market watch page will show real time on-line market data
7) Trade shares directly by entering the symbol or number of the security
8) Broker server will check your limit in the online account and demat account for the the
number of shares and execute the trade
9) Order is executed instantly (10-20 seconds) and confirmation can be obtained.
10) Confirmation is e-mail to the investor by broker
11) Contract note is printed and mailed in 24 hours
12) Settlement will take place automatically on the settlement day
13) Demat account and the bank account will get debited and credited by electronic means.

Process of online trading

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ONLINE TRADING HAS LED TO ADDITIONAL FEATURES SUCH AS:
a) Limit/stop order: Orders that can be go unfilled, but there is an extra charge for this leeway
facility since one need to hold a price.
b) Market orders: Orders can be filled at unexpected prices, but this type is much more risky,
since you have to buy stock at the given price.
c) Cash account: Where funds have to be available prior to placing the order.
d) Margin account: Where orders can be placed against stocks, to increase purchasing power.

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ADVANTAGES OF ONLINE TRADING:

 IT IS CONVEINENT
When it comes to online trading, you only need to open a trading account via internet and you’re good to go.
You’re not bound by time and place as long as you have an internet connection. Hence, online trading is
convenient and accessible from anywhere with limited hassle. It also saves time.

 IT IS CHEAP

In online stock trading, the stock broker fee which you will have to pay is lower when compared to the
commission charged by traditional method. If you trade in a sufficiently large volume of stocks, it is possible for
you to be able to negotiate your broker’s fees.

 YOU CAN MONITOR YOUR INVESMENT AT ANYTIME

Online trading allows you to buy or sell shares according to your convenience. It offers advanced interfaces and
the ability for investors to see how their money is performing throughout the day. You can use your phone or
your computer to evaluate your profit or loss.

 ALMOST ELIMINATING THE MIDDLEMEN

Online trading allows you to trade with virtually no direct broker communication. Apart from reducing the
overall trading cost, this benefit also makes the trading hassle free, making this service much more lucrative.

 INVESTOR HAS GREATER CONTROL

Online traders can trade whenever they wish to. On the other hand, in traditional trading, an investor may be
stuck until he or she is able to contact their broker or when the broker is able to place their order. Online trading
allows nearly instantaneous transactions. Also, investors are able to review all of their options instead of
depending on a broker to tell them the best bets for their money. They’re able to monitor their investments, make
decisions and buy/sell stock on their own without any outside interference; thus, giving them greater control
over their investment.

 FASTER TRANSACTION

Online banking is fast and efficient. Funds can be transferred between accounts almost instantly, especially if
the two accounts are held at the same banking institution. All it takes to be able to buy or sell stocks is a single
click of the mouse. Through this, a quicker exchange can be made which may also ensure quicker earnings.

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  BETTER UNDERSTANDS OF ONE’S MONEY

This is a hidden advantage of online trading which you wouldn’t want to pass up on. Just like conventional stock
trading, you can predict the market behaviour and use this to predict a rise or fall in price of the stock. You’ll be
handling your own finances and be responsible for them. Over time, you become more experienced in
understanding the market, and good investment opportunities from the bad ones. This knowledge about money
is very useful, and having this on your resume makes you more marketable to companies looking to fill a well-
paying position in the finance department. So while making a quick buck, you also manage to become financially
smarter, in both your professional and personal life.

DISADVANTAGES OF ONLINE TRADING:

1. When network crashes, there will be problems and delays due to a large influx of
rapid online trading criteria.
2. Individuals are restricted to first-hand financial guidance. This simply means that
individuals is himself/herself alone to.
3. A tax (sales tax and value added tax) evaluation becomes an issue, especially when
you are trading internationally.
4. One has no idea with whom he is dealing with on the other end.
5. According to a study conducted by Mary Rowland, careful investor: is online
trading badly for your portfolio, the more one trades the less returns one gets.
Meaning that an addicted traders gets, carried away online and begins to trade for
too much causes losses for him/her.
6. Individuals thinks that they are trading with the market directly and know what they
are doing, but the truth is that even though technology has taken over, the basic
rules of trading are the same, its seems that the middlemen has been removed, but
is not so. When the individuals click on the mouse, his trade goes through a broker.
The commission online pertain to the intermediary.
7. There is need for more effective communication links over the internet and the
ability of the server to deal with a large volume of visitors.

TRADING AND SETTLE AT “SHAREKHAN”

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The NSE first introduced trading in India. The online trading system imparted a greater level of
transparency and investors preferred exchanges that offered Online trading as of the following
factors:

 The ease of operation from the the view of the both members and the investors.
 Increase in the confidence of the investors because of higher level of the transparency.
 Facilities better monitoring of the market by the exchange.
 The best price achieved in buying and selling.
All these resulted in ever- increasing volumes on the exchange offering the online trading.

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xlvi
LIMITATIONS OF THE STUDY:
Despite of the training my level best, there were still some limitation which I think remains there to draw
fruitful conclusion. There was some practical problem which come across and could not be properly death
with

 The advisory services being promised by the brokers would be of little use to
investors looking for an insight into the market.

 As a client one will access the NSE through a server of the online brokerage and
this may involve queuing delays

If one like to ask his broker "Aaj kya achcha lag raha hai" he may not be able to do so. If he wants advice
on a particular stock in his portfolio, he may not even be able to get that.

CONCLUSION AND SUGGESTIONS

1. Things have changed for the better with SHAREKHAN going online coupled with
endeavor to stream line the whole trading system, things have changed dramatically over
the last 3 to 4 years. New and advanced technologies have breached geographical and
culture barriers, and have brought the country wide market to doorstep.
2. In the present scenario to complete with the broker’s would require sound infrastructure
and trading as per international standards.
3. The introduction would influence the investors resulting in an increase in the business of
the exchange. It has helped the brokers handling a vast amount of transactions and this
can be efficient trading, delivery, settlement system with adequate protection to investors.
The trading of SHAREKHAN of the first day was 1.8 crores.
4. Due to invention of online trading there has been greater benefit to the investors as they
should could sell/ buy shares as when required and that to with online trading.
5. The brokers have a greater scope than compared to the earlier times because of the
invention of online trading.
6. The concept of business has changed today, this is a service-oriented industry hence the
survival would require them to provide the best possible service to the clients.

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BIBLIOGRAPHY

WEBSITES:
 https://www.financewalk.com/primary-market-secondary-market/
 https://creately.com/diagram/example/iembze6n1/Financial%20Markets
 https://www.investopedia.com/terms/f/financial-market.asp
 https://www.sharekhan.com/
 https://www.salesforcesearch.com/blog/the-5-biggest-challenges-in-a-sales-role/
 https://www.lucidchart.com/documents#docs?folder_id=home&browser=icon&sort=save d-desc
 https://www.moneycontrol.com/news/business/personal-finance/what-is-price-earnings- ratio-or-pe-
ratio-1309847.html
 http://www.morningstar.com/InvGlossary/price_earnings_ratio.aspx
 https://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=24

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