EXECUTIVE SUMMARY

This is a project report on “Consumer behavior towards online trading.” The objective
of the proposed study is to identify the specific factors that affect consumer attitudes towards
online share trading. The methodological approach to this study is descriptive, because we
attempt to identify and explain variables that exist in a given situation and to describe the
relationship that exists between these variables in order to provide a picture of a particular
phenomenon, but not to ferret out cause-effect relationship.
The primary data was collected through questionnaire filling. The secondary data was
collected through the internet. India has a large chunk of population which is at lower income
level and at middle income level. There is a need of creating awareness among them for share
trading and the tremendous potential it has. They are doing trading on the old methods which
were used in the past. Now with the advent of technology there are many options available to
the traders which they can use without any fear.
The trend is moving towards the online share trading but still it has a lot to cover.The
traders are more of young age and middle age and don’t fear from risk taking but the lack of
knowledge doesn’t allows them to do so. So the stock broking companies should take measures
to empower the normal investors so that they can trade with the latest technologies available.
Target the youth as they are most potential customers of the stock market as their
interest towards stock trading is increasing. The stock broking companies should educate the
investors by giving them timely help in the form of reports and tips.The companies should try
to work in more transparent way. People want good services and are ready for paying extra
penny. People prefer Ease of transactions and security.
As per my summer internship project topic, “Consumer Behavior towards Online
Trading in Stock Market” I choose 100 people as the sample size as the part of research and
most of the people who are traded in stock market they are doing it offline. So, there is the
more scope of online trading customer and they can also try to convert the offline customer
into the online trading customer. And they can also catch the attention of those who are
investing in Mutual Fund. They have to attract the more businessmen and the employees who
are working in private or public sector.
 INTRODUCTION

Securities market has essentially divided into three categories of participants, namely
the issuer of securities, investors in securities and the intermediaries.
The security market has two interdependent and inseparable segments the Primary Market and
the Secondary Market.

Primary Market:
The primary market is the part of the capital market that deals with issuing of new securities.
Companies, government or public sector institutions can obtain funds through the sale of a new
stock or bond issues through primary market.

Secondary Market:
A market where investors purchase securities or assets from other investors, rather than from
issuing companies themselves. The national exchange – such as the New York Stock Exchange
and the NASDAQ are secondary markets.
 HISTORY

1850 – Shares of banks and securities of east India Company traded in Mumbai under
a sprawling banyan tree in front of town hall, which is now in the honiman circle park.

1875 – Brokers organized an association known as the native share brokers association,
and the country’s first stock exchange the Bombay stock exchange (BSE), set up in Mumbai
with 318 members. The membership fee gradually increased from Rs 1 in 1887 to Rs 1000 in
1896, and Rs 48000 in 1920.

1956 – Securities contract regulation Act passed.

1957 – The BSE and eight other stock exchange registered under the securities trading
contract act.

1982 – The BSE classifies scripts into group A for carry forward, and group B for cash
transaction.

1986 – The BSE 30 – share sensitivity index (a.k.a. the sensex) compiled; updated every
two minutes.

1987 – Stock holding corporation of India set up.

1992 – Ordinance promulgated for granting statutory powers to the SEBI. The over-
the counter exchange of India begins operations. The national stock exchange incorporated.

1994 – The NSE’s debt segment begins operation on June 30; and the capital market
segment begins online script less trading on November 3.

1995 – the BSE computerizes its trading operation , signaling the end of 120 years of
floor trading with open out cry system of share trading and the beginning of screen – based
trading on the BSE.
 1996 – NSE 50 index launched April 22. NSDL set up as the first depositary in India,
and the NSE commences trading in dematerialized securities on December 26.

2000 – The SEBI approves the reports on net trading brought out by the SEBI
committee on net based trading and services. Pursuant to the circular , stock exchanges are
require to give permission to members to start net based trading after ensuring fulfillment of
the minimum conditions.
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, 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 redressal 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
program and making available to them necessary informative inputs.

NSE (NATIONAL STOCK EXCHANGE)

NSE was incorporated in 1992 and was given recognition as a stock exchange in April
1993. It started operations in June 1994, with trading on the Wholesale Debt Market Segment.
Subsequently it launched the Capital Market Segment in November 1994 as a trading platform
for equities and the Futures and Options Segment in June 2000 for various derivative
instruments.
NSE has been able to take the stock market to the doorsteps of the investors. The
technology has been harnessed to deliver the services to the investors across the country at the
cheapest possible cost.

It provides a nation-wide, screen-based, automated trading system, with a high degree

of transparency and equal access to investors irrespective of geographical location. The high
level of information dissemination through on-line system has helped in integrating retail
investors on a nation-wide basis.
 The standards set by the exchange in terms of market practices, Products, technology
and service standards have become industry benchmarks and are being replicated by other
market participants.

National Commodity & Derivatives Exchange Limited (NCDEX) is a professionally

managed online multi commodity exchange promoted by ICICI Bank Limited (ICICI Bank),
Life Insurance Corporation of India (LIC), National Bank for Agriculture and Rural
Development (NABARD) and National Stock Exchange of India Limited (NSE). Punjab
National Bank (PNB), CRISIL Limited (formerly the Credit Rating Information Services of
India Limited), Indian Farmers Fertilizer Cooperative Limited (IFFCO) and Canara Bank by
subscribing to the equity shares have joined the initial promoters as shareholders of the
Exchange. NCDEX is the only commodity exchange in the country promoted by national level
institutions. This unique parentage enables it to offer a bouquet of benefits, which are currently
in short supply in the commodity markets. The institutional promoters of NCDEX are
prominent players in their respective fields and bring with them institutional building
experience, trust, nationwide reach, technology and risk management skills.

NCDEX is a public limited company incorporated on April 23, 2003 under the Companies Act,
1956. It obtained its Certificate for Commencement of Business on May 9, 2003. It has
commenced its operations on December 15, 2003.

NCDEX is a nation-level, technology driven de-mutualized on-line commodity exchange with

an independent Board of Directors and professionals not having any vested interest in
commodity markets. It is committed to provide a world-class commodity exchange platform
for market participants to trade in a wide spectrum of commodity derivatives driven by best
global practices, professionalism and transparency.
FACILITIES PROVIDED BY NCDEX:
NCDEX has developed facility for checking of commodity and also provides a ware
house facility.

By collaborating with industrial partners, industrial companies, news agencies, banks

and developers of kiosk network NCDEX is able to provide current rates

and contracts rate.

To prepare guidelines related to special products of securitization NCDEX works with

bank.

To avail farmers from risk of fluctuation in prices NCDEX provides special services
for agricultural.

NCDEX is working with tax officer to make clear different types of sales and service
taxes.

NCDEX is providing attractive products like “weather derivatives.”

MCX an independent and de-mutulised multi commodity exchange has permanent recognition
from Govt. of India for facilitating online trading, clearing and settlement operations for
commodity futures markets across the country. Key shareholders of MCX include Financial
Technologies (I) Ltd., State Bank of India (India’s largest commercial bank) & associates,
Fidelity International, National Stock Exchange of India Ltd. (NSE), National Bank for
Agriculture and Rural Development (NABARD), HDFC Bank, SBI Life Insurance Co. Ltd.,
Union Bank of India, Canara Bank, Bank of India, Bank of Baroda and Corporation Bank.

Headquartered in Mumbai, MCX is led by an expert management team with deep domain
knowledge of the commodity futures markets. Through the integration of dedicated resources,
robust technology and scalable infrastructure, since inception MCX has recorded many first to
its credit.

Inaugurated in November 2003 by Shri Mukesh Ambani, Chairman & Managing Director,
Reliance Industries Ltd, MCX offers futures trading in the following commodity categories:
Agri Commodities, Bullion, Metals- Ferrous & Non-ferrous, Pulses, Oils & Oilseeds, Energy,
Plantations, Spices and other soft commodities.

MCX has built strategic alliances with some of the largest players in commodities eco-system,
namely, Bombay Bullion Association, Bombay Metal Exchange, Solvent Extractors'
Association of India, Pulses Importers Association, Shetkari Sanghatana, United Planters
Association of India and India Pepper and Spice Trade Association.
BRIEF INTRODUCTION TO ONLINE STOCK MARKET

TRADING

Investors who are trading over the Internet or online need to know how they can protect
themselves against unexpected losses (especially in fast-moving markets) and what additional
steps to take in order to guard themselves against the typical problems of online trading.

Online trading may be quick and easy but it still requires time and efforts. You can buy or sell
stocks from a great number of online brokers with just a click of your mouse. However, do not
forget that making wise investment decisions takes time.

Online trading may be seamless and quick but it is not always in stantaneous. A number of
technological problems can actually slow or prevent your orders from reaching your online
firm. Some of them include: a slow modem, computer, or Internet Service Provider at the
investor's end, heavy Internet traffic that is slowing, down overall usage, inadequate hardware
at the broker-dealers end, etc. No regulations require that a trade should be executed within a
certain time. If you are unable to access your account online you should know what other
options for placing a trade you have. Your online trading firm may allow touch-tone telephone
trades, ordering by calling your broker, or placing your order. Have in mind that sometimes
turning to one of these options may increase your costs, and other times you may still
experience delays when using them.

Sometimes investors place an order, mistakenly assume that it hasn't been executed, and place
another order again. Thus, they end up either selling stocks

they do not own, or owning twice as much they wanted. If you are unsure whether your original
order was executed, don't rush in to placing it again. Talk to your firm and clarify how to handle
such situations. In other cases, investors don't make sure that the transaction hasn't been
executed when they cancel an order. You should know that you may receive an electronic
receipt for the cancellation but your trade may still not have been canceled. Talk to your firm
and ask them how you can check to see if a cancellation has really worked. Limit your possible
losses by setting limit orders on fast-moving stocks.
By placing a regular market order, you don't have control over the price at which the order will
be filled. You hardly want to buy or sell stocks at a price that is higher or lower than the one
you have in mind so you better place a limit order. A buy limit order will be executed only at
a price that is not higher than your preliminarily set limit price. A sell limit order on the other
hand will be executed at the limit price or higher. If you have a complaint, act promptly.
ADVANTAGES OF ONLINE STOCK TRADING

1. Time
Customers can trade online with a real time basis and buying and selling of shares happens
with a press of a button.

2. Flexibility
Customers can modify the placing orders according to the market movements.

3. Standardized Procedures
When the order is accepted by the exchange, it will give pay-in and pay-outdates and customer
can easily expect the cash or shares to be credited to his ac count.

4. One stop shop

Bank statements and transaction statements can be viewed at the click of a button.

5. Informed Researches
Service providers carry stock analysis like intraday and EOD (End of day) technical charting
which helps the customer to make right choices

6. Flexibility of timing
Customers can place orders before start of a trading session
DISADVANTAGES OF ONLINE STOCK MARKET TRADING

1. Forgetting You Are Using Real Money

In recent decades, people have become very accustomed to doing both work and play in front
of a computer monitor. When you're so immersed in an online task, it's possible to become
detached. This can cause users of online investing firms to forget that they are using real money
as they trade on the brokerage's website. Investors may make mistakes because they make
trading decisions too quickly and get caught up in the ease of using the technology.

2. Lack of a Broker/Investor Relationship

When you invest with a traditional brokerage firm, there is a relationship with the broker, who
can become an investing mentor. The broker provides advice and guidance to the investor. This
is beneficial relationship to both parties, as the investor gets the broker's financial expertise and
the brokerage firm gets extra fees from clients if its portfolio grows in size. With an online
trading firm, all portfolios are self-directed, which means users need to have at least a working
knowledge of the financial markets to make informed decisions. Many investors simply don't
have enough time to follow the financial markets, especially on a daily basis. This can cause
them to make inappropriate investments due to a lack of complete information.

3. No Time to Learn Online Programs

Online brokerage firms claim their software is easy, but this isn't always the case. Often, the
software is complicated, with several different options and calculators, and no instructions on
how to actually use them. People who don't learn software quickly may not master all the ins
and outs of the program.
COMPANY DETAILS SHAREKHAN

SSKI HISTORY
S. S. KANTILAL ISHWARLAL SECURITEIS PRIVATE LTD.
In 1922 Sharekhan,was founded as SSKI (ShantilalShevantilalKantilalIshwarlal) and
later on it is renamed as Sharekhan Ltd. And it is one of India’s oldest brokerage houses having
over eighty years of broking experience.
Founding member of the stock exchange, Mumbai and pioneer institutional broker.
SSKI is the only domestic player in a market crowded by 44 multinational securities
firms.
venture into institutional broking and corporate finance 18 years ago. SSKI group also
comprises institutional broking and corporate finance 18 years ago. While the institutional
broking division caters to the largest domestic and foreign institutional investors, the corporate
finance division focuses on niche areas such as infrastructure, telecom and media. SSKI holds
a sizeable portion of the market in each of these segments.
predecessor of investment research in the Indian market,SSKI provide the best research
coverage amongst broking houses in India.The company’s research team was set up in des.
1992 and is rated as one of the best in the country. Voted four times as the top domestic
brokerage house by Asia money survey, SSKI is consistently ranked amongst the top domestic
brokerage houses in India.
Retail broking started in 1985
Research group was set up in December 1992
It acts as a pioneer of investment research in the Indian market aimed at generating
quick investment ideas.
Its research team is rated as one of the best in the industry……across retail &
institutional.
Group interest in investment banking, institutional broking and retail broking.
It is an integrated equity solution provider.
It commands good market share of the institutional business.
It has over 60 institutional client spread over India, Far East, UK and US.
It occupies 65% of business share from foreign institutional investors.
Its daily turnover average to US$ 2 million.
The private equity deals sum over US$ 1 billion.
SSKI named its online division as “share khan” on February 8, 2000 coinciding with
the launch of its website.
VISION
To empower the investor with quality advice and superior service to help him take
better investment decisions. We believe that our growth depends on client satisfaction.

MISSION STATEMENT
 ..to educate and empower the individual investor to make better investment decisions
through QUALITY ADVICE , INNOVATIVE PRODUCTS and SUPERIOR
SERVICE
To provide the best Customer Service and Product Innovation tuned to diverse needs
of clientele.
Continuous up-gradation with changing technology, while maintaining human values.
Respond to progressive globalization and achieving international standards.
Efficiency and effectiveness built on ethical practices.
ABOUT SHAREKHAN
1. Earlier Name: Shantilal Shevantilal Kantilal Ishwarlal Securities Pvt. Ltd.
2. New Name: Sharekhan Ltd.
3. Year of Establishment: 8 February, 2000
4. Head Office: Sharekhan Ltd.
A – 206, Phoenih House,
BaptaMarg, Lower Parle,
Mumbai – 400013
5. Promoter: Shripal Morakhiya
Shreyas Morakhiya

6. Chief Executive Officer:Tarun P. Shah

7. Director of Operation: Shankar Valiya

8. Director of Product: Jaideep Arora

9. Branch Address: 103/104, Sakar Complex,

Dr. Radhakrishna Road,

Opp. Rajkumar College,

Rajkot – 360001

10. Branch Manager: Mr. Malay Popat

11. Web-site: www.sharekhan.com

12. Phone No.: 0281-2482483 / 4

INDUSTRY ANALYSIS USING PORTER’S(5 FORCES MODEL)

SUPPLIERS
• Web maintainers
• NSCL
• CSDL
• NSE
• BSE
• MCX
• NCDEX
POTENTIAL
ENTRANT
• Investment
• Various Banks
COMPETITORS
• ICICI Web Trade Ltd
• 5paisa.com
• Kotak Securities Ltd
• India Bulls
• MotilalOswal Securities Ltd
SUBSTITUTES
• Mutual Funds
• Insurance
• Bank F
BUYERS
• Small Investors
• Franchise/Business
• Partners
 • HNI’s
• MF Companies
• HUF
• Institutional Investors
SWOT Analysis

1. Strength of Sharekhan

Scale Growing retail network across

• 279 franchisees + 115 branches *
• 1950 Share Shops*
• 575 cities*

Technology Robust platform

• Processing 150000 transactions everyday
• Scalable to 750000 at very low cost/time

Human
1. 1650 employees and growing low turnover rate capital compared to Industry.

2. Standards performance- driven work ethics.

Brands One of the most visible brands since inception amongthe top 3 Retail brokers in India.

2. Weakness of Sharekhan

• Lack of enough promotional measures or advertising

• No. of trading centers are less compared to other stock broking companies.
3. Opportunities to Sharekhan

• Scope of expansion

• Increasing interests and knowledge of people towards share market

4. Threats to Sharekhan

• Competition from major stock brokers and new entrance

• Introduction of new technology

WHAT DOES SHARE KHAN OFFER?

Share khan offers online trading account through which a customer can buy and sell shares in
an instant from any part of the global trough website. It does not take account any type of
physical restriction of going to the broker for carrying out a transaction or any type of
settlement of payment. It facilitates the customer a speedy and hassle free transaction. Share
khan’s product consists of a 3-in-1 concept, which integrates;

1. Trading account

2. Demat account

3. Linking with the saving account.

Through its trading account, a share khan customer can directly transfer his fund from his
savings bank account affiliated to share khan to his trading account without any paper work.
He can buy and sell shares from the website and also view the market prices of the shares he
trades on the terminal.

To open an account a customer requires filling up a form consisting of agreements, a passport

size photograph, a residential proof, a photo id proof and a cheque drawn of respective amount
in favor of S.S.kantilalishwarlal securities private Ltd. After opening an account with share
khan, a customer will be given user id, membership password and trading password, which
will enable him to access his account and trade.
RESEARCH DEPARTMENT

All the suggestion, tips and high performance trading recommendation are received
from the research team of share khan consisting of 38 dedicated analysts who have years of
working experience in the industries that they track, and a proven track record in using their
knowledge of the investment science to deliver results. Share khan boasts of strike rates as high
as 70-90% in booking recommendations in the money. “The company believes in not to lose
money and to make some.”
Depository services.

Portfolio Doctoring

Alpha Delivery

Wealth of content and tools to help you make sound investment decisions.

Stability and security.

Substantial shareholding by prestigious foreign institution.

Personalized attention.

PRODUCT AND SERVICES OFFERD BY SHAREKHAN

1. Sharekhan Depository Services
Dematerialization and trading in the demat mode is the safer and faster alternative to
the physical existence of securities. Demat as a parallel solution offers freedom from delays,
thefts, forgeries, settlement risks and paper work. This system works through depository
participants (DPs) who offer demat services and the securities are held in the electronic form
for the investor directly by the Depository. Sharekhan Depository Services offers
dematerialization services to individual and corporate investors. Sharekhan is a registered
Depository Participant (DP) with National Securities Depository Ltd. (NSDL). It has a team of
professionals and the latest technological expertise dedicated exclusively to our demat
department, apart from a national network of franchisee, making our services quick, convenient
and efficient. At Sharekhan, the commitment is to provide a complete demat solution which is
simple, safe and secure.
2. Investment Avenues
a. Equity Shares
Equity shares represent ownership capital. As an equity shareholder, you have an
ownership stake in the company. This essentially means that you have a residual interest in
income and wealth. Perhaps, the most idealistic among various investment avenues, equity
shares are classified into the blue chip shares, growth shares, income shares, cyclical shares,
speculative shares by stock market analysts.

3. Mutual Funds:
Instead of directly buying equity shares and/or fixed income instruments, you can
participate in various schemes floated by mutual funds which, in turn invest in equity shares
and fixed income securities.

4. Life Insurance:
In a broad sense, life insurance may be viewed as an investment. Insurance premiums
represent the sacrifice and the assured sum of the benefits.

5. Precious Objects:
Precious objects are items that are generally small in size but highly valuable in
monetary terms. Some important precious objects areGold and Silver, Precious stones or Art
objects

6. Financial Derivatives:
The most important financial derivatives from the point of view of investors are;
• Options

• Futures
7. Commodity:
Today the business is not limited to our area only. Where the production is less but,
demand is comparatively high prices of the product will go up. On the contrary where the
production is high but demand is comparatively low the prices will go down.
• If sellers and buyers come together at a place then it will create a market. Here against
one seller there will be more than one buyer. In this market buyers will come across the country
for transactions.
• In this market not only producer and seller are included but arbitrageur, speculator, and
hedger can tread. In this way the total area of market will become broad.

• In our country agricultural products from 25% of GDP. Total turnover of commodity
of market is nearly Rs.1, 10,000 corers. In which 60,000 corers comes from agriculture and left
is coming from coal, crude, etc.

Today in our country most of the trade is done in unorganized market. In the market
current and future contracts are done. Promissory contracts have been started science 1875. But
due to some restriction it was not properly worked. Presently nearly in 122 commodities tread
is being done.

8. Currency
Currency futures are standardized foreign exchange contracts traded on a recognized
stock exchange to buy or sell one currency against another on a specified future date, at a price
specified on the purchase or sale date. It is a contract to exchange one currency for another
currency at a specified date and a specified rate in the future. Therefore, thebuyer and the seller
lock themselves into an Exchange Rate for a specific value or delivery date.

There are three participants of currency:

Hedgers
• Hedgers face risk associated with the price of an asset.
• They wish to eliminate or reduce the price risk to which they are already exposed.
• They use futures or options markets to reduce or eliminate this risk.

Speculators
• Participants who wish to bet on future price movements of an asset.
• Futures and Options contracts can give them leverage(i.e. by putting in small amounts
of money upfront, they can take large position in the market)
• As a result of this leveraged speculative position, they increase the potential for large
gains as well as large losses.

Arbitragers
• They work for making Profits by taking advantage of discrepancy between prices of
the same product across different markets.
• They profit from price differential existing in two markets by simultaneously operating
in two different markets
• e.g. If they see the future price of an asset getting out of line with the cash price, they
would take offsetting position in two markets to lock in the Profit.
MARKETING DEPARTMENT

The main aim of marketing activities at Sharekhan is that the customer should get
enough guidance to join the company and how he can get the best service than any other
stockbroker. There is an officer for handling the marketing activities followed by two
executives and it is not limited to them but the other people are also having some
responsibilities to increase the no. of clients and retain them by providing them the services
needed by them.
There are many services those are designed such that the specific target segments of the
customers are covered and the products are positioned in the minds of customers as the best
one in India. The services are as given below:
Sharekhan is India’s leading national network of stock-broking outlets. It is having the
largest retail distribution chain in India. Sharekhan is not only a share-broking firm, but it avails
of various services and other financial products to its clients.
1. Offline Trading facility
2. Online BSE and NSE executions (through BOLT, i.e. BSE Online Trading and NEAT,
i.e. National Exchange Automated Trading)
3. Free access to investment advice from Sharekhan’s Research team.
4. Derivatives trading, i.e. Futures and Options (through NEAT F&O)
5. Internet based online trading.
6. Other investment products: Mutual Funds, RBI Bonds, Insurance, etc
FREE ACCESS TO INVESTMENT ADVICE THROUGH R&D

The Research and Development at Sharekhan is done at its Head office Mumbai. From
there it forwards the relevant data and tips on particular shares and scripts at the relevant time.
The R&D department Head Mr. HemangJani forwards all the details regarding all stocks and
scripts to all the branches through internet. At the end of each trading day there is a
Teleconference, through which the R&D department Head Mr. HemangJani talks with each
Branch heads and discusses about each day’s closing position and shows their predictions about
next day’s opening position. The quarries regarding stock positions and other relevant matter
of the branch heads of each branch is being solved through teleconference. The various
publications of Sharekhan viz. Commodities Buzz, Commodities Beat,Commodity Trader’s
corner, Sharekhan Xclusive, etc. are being prepared by the research team of Sharekhan made
up of highly experienced people from diverse field

ONLINE IPO

Online IPO (Initial Public Offering) is a new service started by Sharekhan for providing the
application form of any company’s issues of just like the TCS issue can be subscribed by filling
an online form to reduce the paper work and the fund transfer facility is also provided to the
clients for transferring the funds online. It is given on its web-site for helping the clients who
are not able to collect the forms manually and the speed of filling and reducing the risk of
misplacing of forms, not reaching in time, etc.

MARKETING MIX

The marketing mix of Sharekhan is an excellent example we have seen in the industry because
no other brokering organization has such products to target the investors of different minds,
incomes and aims. There is an objective of satisfying the customer as to make him delighted
with affordable prices and convenient services. The fourth P of the marketing mix is the best
at Sharekhan in India because the total no. of share shops are widespread all over to have the
maximum contacts and awareness about Sharekhan, and we can say that it has achieved that
because it is having the maximum turnover than any other broker in India. The Classic, Speed
Trade and Speed Trade Plus are the trading products, which are one of the bests in the market.

The marketing is done based on leads generated through the web contact; tele-contact and
personal contact with the customer and is a planned procedure to find out new customers. The
marketing management is carried out in an excellent way at Sharekhan.
PRODUCTS OF SHAREKHAN
Sharekhan‟s products are basically divided into online and offline products.

SHAREKHAN
Off - Line Other Services On - Line
Trade tiger Classic Speed Trade
Dial and Trade

Other Services:

1. Equity Trading

2. Depository Services

3. Commodity Trading

4. Derivative Trading (F&O)

5. Mutual fund

6. Portfolio Management Services

7. IPO

8. Insurance

9. Currency

10. NSEL
OFF-LINE TRADING ACCOUNT:

The Off-Line account is trading account through which one can buy and sell through his/her
telephone or by personal visit at sharekhan shop. This a/c is for those who are not comfortable
with computer and want to trade.

ON-LINE TRADING ACCOUNT:

The Online trading facilities provided by Sharekhan is basically divided into two types of
accounts, viz. Classic Account and Speed trade Plus and Streamer.

1. Classic Account

The CLASSIC ACCOUNT is a Sharekhan online trading account, through which one can buy
and sell shares through our website www.sharekhan.com in an instant. Along with enabling
access for you to trade online, the CLASSIC ACCOUNT also gives you our Dial-n-Trade
service. With this service, all you have to do is dial 1-600-22-7050 to buy and sell shares using
your phone.

9 Features of the CLASSIC ACCOUNT that enable you to invest effortlessly-

1. Online trading account for investing in Equities and Derivatives via sharekhan.com

2. Integration of: Online trading + Bank + Demat account

3. Instant cash transfer facility against purchase & sale of shares

4. Reasonable transaction charges

5. Instant order and trade confirmation by e-mail

6. Streaming quotes
7. Personalized market watch

8. Single screen interface for cash, derivatives and more

9. Provision to enter price trigger and view the same online in market watch
2. Speed Trade:
SPEEDTRADE is an internet-based software application that enables you to buy and sell shares
in an instant. It’s ideal for active traders and jobbers who transact frequently during day's
trading session to capitalize on intra-day price movements.

Speed Trade also provides the features of and functionality of trading in derivatives from the
same single-screen interface.

7 Features of Speed trade Plus that enable you to trade effortlessly-

1. Instant order Execution & Confirmation

2. Single screen trading terminal

3. Real-time streaming quotes, tic-by-tic charts

4. Market summary (most traded scrip, highest value)

5. Hot keys similar to a brokers terminal

6. Alerts and reminders

7. Back-up facility to place trades on Direct Phone lines

A/C Opening Charges Rs.1000 (onetime Charge).

For 1st Year Demat A/C is Free, from 2nd Year AMC charge is 400 per/year.

ShareKhan has tie up with 13 banks through which one can transfer or withdraw his
fund online. Which are as follows:

1. HDFC Bank
2. IDBI Bank

3. AXIS Bank

4. OBC Bank

5. CITY Bank

6. Indusind Bank

7. Union Bank of India

8. ICICI Bank

9. SBI Bank

10. BOI Bank

Anyone who have A/C either of above banks they can use this facility. Otherwise one has to
make fund transfer or withdraw by cheque.

PROMOTION

Promotional activities at Sharekhan are done by web, e-mails and personal contact. Sharekhan
is also organizing seminars and presentations and promotes its services to the clients. It is
spending Rs.20000 per month for promotional activities.

As explained earlier, Sharekhan is having the largest distribution chain of retail outlets of share
shops. And it can be seen also because there are 180 share shops in 90 cities, which gives the
maximum awareness to Sharekhan. The distribution of Sharekhan is also proved by its turnover
and awareness among the investors in the stock market.
The marketing strategies followed by Sharekhan at this point are as given below:

The excellent marketing mix i.e., the Product-Price-Place-Promotion and for services
additional 3Ps viz. People, Process and Physical evidence, are managed according to the needs
of the customers and try the best to deliver the maximum value to the customers for what they
pay a price.

The HR and Operations are one of the best at Sharekhan to help the customers for
getting the needs fulfilled with a family culture and atmosphere of harmony, peace and
brotherhood and it is focusing on the specific segments like HNI, Delivery-based and Intra-day
trader
FINANCE DEPARTMENT

Like blood is the most important factor in our body, Finance is the blood of any business.
Finance is needed for all the activities like production or services as well as their distribution.
The finance department directly influences all the functions of the other departments. Also
finance has to give equal importance to all departments. Finance is that administrative area or
set of administrative function in an organization may have the means to carry out its objective
as satisfactorily as possible. Sharekhan has special accounts department for separate calculation
of pay-in and pay-out of funds according to the client’s Profit/Loss. Finance management is
done at Sharekhan is done by managing the stocks in the demat accounts and funds in the
margin & trading
Finance is the lifeblood of an organization to continue its activities and the finance management
at Sharekhan can be divided into two major parts viz. DP (Depository Participation) and
Accounts management, which are shown in the figure given above.

DP is treated as a separate department at Sharekhan and is covered in the back office

management in the organization structure. In simple words, DP means providing the facility to
the clients for managing the stock bought/sold by them. DP covers two major terminologies
viz. settlements and the auction which is a part of managing demat account. Settlements as
defined by SEBI (Securities Exchange Board of India) are T+2, currently and it means that the
demat account of the clients are prone to be sufficient for selling a script with no debit at all,
i.e., the account must have the sold amount of stock to fulfill the settlement after 2 days from
trade-day. The settlements for Day-Traders is not needed because they buy/sell stocks in that
particular day, only the delivery trades are needed to be settled because if you sell 1000 shares
of, say SAIL then your account must have the stock before you sell it or it must be there in you
demat before the next days trading begins (market opens). Generally, the timings are 9:30 and
3:00 as a deadline for the client and he must provide the stock for giving a delivery to the buyer.
The chart show the total transaction between two clients:
C DP (Sharekhan) E DP (anyone) C
The chart shows the process that the request for selling and buying passes through the DPs of
the respective clients and finally the exchanges like SKSE (Saurashtra Kutch Stock Exchange)
becomes the controlling intermediary for the delivery of stocks and this process is done in two
days. Nowadays, as banks are becoming fast for E-Fund Transfer (EFT) and Phone-banking is
getting more popularity, SEBI is thinking to make the financial market of India to have a
maximum speed of transactions just like the other nations in the world and proposing for T+1
settlement scheme but the system is not enough competent for that thing.
The client, if not capable of providing the delivery of say, 1000 shares of SAIL then the
Auctions are initiated by the exchanges and the client has to pay for the price prevailing in the
market with 4-5% penalty. The penalty can go on maximum to 20% more than the market price
of the sold stock. Generally, it is known as a buying auction and a same kind of auction is for
selling the stock for which the buyer was proved unable to pay the price is carried out by
exchange, known as the selling auction. And a debit or credit note is provided in the respective
case of auction to the clients, i.e., for buying auction debit note is given on the T+4 basis and
in case of selling auction the credit note is given on T+5 basis. There are two types of auctions
called as Internal auctions & Market auctions, the internal auctions are defines as the auctions
carried out between the other shops of Sharekhan and market auctions are those as explained
earlier, the auction carried out in the market.

This is all about settlements but now switch to funds management or accounts management at
Sharekhan. The accounts are different that is the margin a/c for deposits of the client and trading
a/c for which Profit/Loss are settled. The collection of funds from the clients who had a debit
balance or made a loss are made on the next day of trading and the payments to the profiting
traders are made after two days of trading because the cheques are received from H/O and then
pay-out is done and Pay-in is as explained that amounts to be taken from the clients. In this
way, accounts are managed but in case if the client is unable to pay, the deposit from the margin
a/c is cut down to the payments and in case if a client is having a credit balance in F&O trading
though he had a debit balance in cash-NSE

& BSE trading, a JV request is sent to H/O for totaling the three balances. The main aim for
accounts management is that the clients must have a credit or no debit on the next day.

The DP services provided by Sharekhan are falling under the regulation of NSDL (National
Securities Depository Limited) and CDSL (Central Depository Services Limited),
organizations governed by SEBI to regulate the depository services in the interest of the
investors. So, the financial market in India is governed by Ministry of finance under which two
major bodies viz. SEBI & RBI are covered and under RBI the banks and other financial
institutions are covered while SEBI covers the exchanges, NSDL & CDSL and the whole DP
service providers with the brokers to the investors.

In this way we have gained a meaningful knowledge about India‟s financial market and its
structure from this training at Sharekan. In this way, the finance function is carried out at
Sharekhan by following the guidelines given by SEBI. And the company is a private limited
one with its own policies for disclosing its financial statements, so we are not able to give any
figures for showing the financial position of the company.
SHAREKHAN- ONE OF THE FASTEST GROWING FINANCIAL SERVICES
COMPANY IN INDIA

1500 Share Shops

300+
across Cities

800 704
700 Network 607
600

500 410
400
300 147 176 228
200
82
100

0
2001-2002 2002-2003 2003-2004 2004-2005 2005-2006 2006-2007
Sep-07

10 lakhs Customers & Growing

Online Business is 50%

> 3000employees

Most preferred broking website in India

Winner of

Chip

magazine’s

‘Best

Financial
Website

Award’
HUMAN RESOURCE DEPARTMENT

Human resource is the crucial resource that a company can use to grow with the work of the
employees. HRM activities at Sharekhan start form induction to the

specific job training and are done by H/O at Mumbai. H/O takes a written test and selection
interview for filling up vacancies in branches but the recruitment is done by the branch itself
and the selection is performed by H/O from the screened applicants.

Any new recruit is firstly inducted to the company and sent to T & D department that is covered
under HRD and T & D programmes makes employees aware about all the activities/jobs within
the department he/she is to be recruited.

Then the specific job training is provided at H/O and the person has to keep in touch with the
concerned department at H/O on internet because he/she has t solve many conflicts arising in
the investor‟s mind and to have an up-to-date information regarding the procedures and any
new facilities or policies to resolve the problems of the clients.

HRP (Human Resource Planning), HRIS (Human Resource Information System), Recruitment
& Selection, Career planning and development, Assessment & development of employees for
Performance appraisal, etc. activities of managing the HR at Sharekhan is maintained in a way
to meet the requirements.

The corporate culture at Sharekhan is maintained in such a way that the people are helpful to
each other and eager to get the work done as soon as possible with a co - operative thinking.
An additional Rs.10000 is provided for each outlet of Sharekhan to motivate its employees by
performance appraisal and also the heads of each departments and branches has to go through
a 3606 performance appraisal for maintaining the consistency in growth of the company.

In the end we can say that the human resource of Sharekhan is a best managed and used for the
continuous growth and development of the company for its future plans to be achieved time-
to-time.
OPERATIONS STRATEGY AT SHAREKHAN

Operations strategies are implemented in Sharekhan as shown in the chart given above and the
main points of consideration are Efficiency, Dependability, Quality and Flexibility.

The points demand a facility mission that is made up of process, capacity, facilities, vertical
integration, and infrastructure facilities provided to get the desired outputs as per the plan.

The main aim of the operations strategy at Sharekhan is that the efficiency of the organization
and high level of it is desired outputs with low costs, i.e., productivity with effectiveness.
Quality should be high and consistent in delivering services; Flexibility is related with fast
introduction of new services and providing a wide range to select an option to the customer.
This is facilitated by the process of operations, capacity/ability of the organization, competitive
advantages, vertical integration and the infrastructure created by the firm.

Sharekhan plans the strategies to get a working plan from it and the planning is done from top-
to-bottom level, i.e., national level, regional level, divisional level and the branch level
planning is carried out by the managers.

In this way, the Operations are managed with the best efforts in a direction that is to facilitate
future plans by achieving success in time and create milestones in the industry by driving the
company with excellence.
RESEARCH OBJECTIVE

The main objective of the study is to check consumer behavior towards online trading in stock
market among the people of mumbai. The objective of any research is basically divided into
two categories.
Primary Objectives

To study the “consumer behavior toward online trading in stock market”.

Secondary Objectives
To study trading frequency through online trading

To study investment decision making in online trading

To study over all influence of online trading to the security market.

RESEARCH METHODOLOGY

SOURCES OF DATA:

The task of data collection begins after a research problem has been defined and research plan
chalked out. While deciding about the method of data collection to be used for the study, first
of all the sources of data must be very clear.

There are basically two sources of data.

 Primary Data Source:

The primary data are those, which are collected afresh for the first time for the problem
solution, and thus happen to be original in character. It may be obtained from individual,
families and representative or from organization.

Secondary Data Source:

The secondary data are those which have already been collected by someone else and which
have to decide which have already been passed through the statistical process. Externally, these
sources may include books or periodicals reports, data services and computer data banks.

In the context of the project study, the source of data used by me for this project is primary
type of sources. The primary data source is the respondents who have filled the questionnaire.

REVIEW OF LITERATURE

1. Intention To Adopt Online Trading: Identifying The Future Online Traders

Yinghao Mickey Li, Jinkook Lee and Brenda J. Cude

This paper is based on the first author's thesis, which won the 2002 American Council on
Consumer Interests thesis award. The dataset was provided to the second author by Larry
Cohen, the director of Consumer Financial Decisions of SRI Consulting Corporation.
This paper proposes that investors' intention to adopt online trading in the future is influenced
by investment, psychology, technology and demographic factors. Data from the 2000-01
Macro Monitor database are employed in this study. Macro Monitor is a biennial survey
conducted by the Consumer Finance Decision section of SRI Consulting Corporation. The
sampling method of the survey is two -stage random sampling. The first step is a stratified
disproportionate random sampling. And the second step is a simple random sampling. Sample
size was 3759 household in 2000 in U.S.

Among the investors, there were 389 current online investors and 1,066 current offline
investors. On average, online investors were younger than offline investors and had more
education than offline investors. Online investors traded 29.2 times a year, while offline
investors traded only 7.1 times a year. In terms of trading volume, online investors also traded
a larger sum of money than offline investors.

2. Impact of online trading on customer satisfaction in Tehran stock exchange

DelbarJafar Pour, Lulea University of technology - master thesis, continuation courses -

marketing and e-commerce.

The aim of the study is to indicate how Indian traders rank quality factors and if online trading
system could enhance their satisfaction level or not?

For research distributive and explorative research designs are used and for data collection
survey method is used. There were 300 invitees were invited for the purpose of survey.

Result shows that there is a meaningful difference between traders’ satisfaction in conventional
stock exchange. And existence of online trading system in stock exchange can raise the degree
of traders’ satisfaction.