Professional Documents
Culture Documents
A Project Report
Submitted to the
FACULTY OF MANAGEMENT SCIENCES
BONAFIDE CERTIFICATE
Certified that this project report titled ROLE OF
RETAIL INVESTORS IN THE CAPITAL MARKET WITH SPECIAL
REFERENCE TO INDIA BULLS, CHENNAI is the bonafide work of
K.
ABSTRACT
Financial markets are extremely volatile and hence the risk factor is an
important concern for financial agents. To eliminate this risk, the concept of
derivatives comes into the picture. During 2008 month of January to April, stock
market saw a heavy crash, and investors lost heavily because most of these investors
did not hedge their risks by using equity derivatives.
Given the importance of derivatives in an emerging market like India it is not
wonder that share broking firms are investing heavily in building up infrastructure and
mining up cliental base to increase market share. The latest trend in the market shows
retail investors are responding in line with the institutional investors which requires
efficient traders to make them to understand about the F&O strategies. Indian stock
market is also in line with performance of the overseas markets; recent market trend
clearly gives an indication, where proper derivative strategies could have saved
investors from huge losses. Now, as the market is showing a growth trend there is an
ample opportunity to the investors to take proper strategies to play in the market and
adhere to the popular saying BE FEARFUL WHEN OTHERS ARE GREEDY, AND
BE GREEDY WHEN OTHERS ARE FEARFUL i.e. take proper hedging positions
even when the market is in uptrend,
Nowadays traders are aware of these popular strategies but they are not aware
of
Which situations they can apply these derivatives strategies in the market.
Primary data are the responses collected from the retail investors, personnel
from Asset management companies-Financial Institutions (Broking Houses / subbrokers) and also from experts who do financial planning like Tax planning and
investment advises
ii
ACKNOWLEDGEMENT
This project has given me immense insights about the practical aspects of
retail investors and its working. I got to learn a lot about the retail investors trading
and the way they handle their clients and projects. This project also helped me to
improve my report making skills and the true understanding of trading practices.
Foremost I would like to thank my internal guide Mr. S. Dhinesh Babu,
Assistant Professor for approving this topic and guiding me throughout the project.
Then I would like to thank my external guide Mr.K.M. Rajarajan, Relationship
Manager without whom this project wouldnt be a grand success. He helped me at
each and every stage of this project.
Next I would like to thank all the clients of India bulls Securities Private
Limited who gave their valuable time and their insights on the research topic without
which it would be impossible.
Finally I like to thank God whose grace and mercy was with me throughout
this project report preparation.
SENTHILKUMAR .K
iii
TABLE OF CONTENTS
Sl.No
CHAPTER
TITLE
PAGE
No.
1.
Abstract
2.
Acknowledgement
II
3.
List of Tables
IV
4.
List of Figures
5.
INTRODUCTION
1.1 Statement of the problem
1.2 Objectives of the study
1.3 Scope of the study
1.4 Research Methodology
1.5 Limitations of study
1.6 Chapter scheme
7.
II
INDUSTRY PROFILE
7.
III
COMPANY PROFILE
8.
IV
9.
10.
VI
SUGGESTIONS AND
RECOMMENDATION
iv
LIST OF TABLES
Sl.No.
Title
4.1
Respondents age
4.2
4.3
Annual income
Trading experience
4.4
Portfolio size
4.5
System trading
4.6
Parameters
4.7
Share purchase
4.8
Hearing prospects
4.9
Selection of funds
4.10
4.11
Corporate actions
4.12
4.13
Products in trade
4.14
4.15
Sources of funds
4.16
Exposure
4.17
4.18
4.19
4.20
4.21
4.22
4.23
Broker advice
4.24
Hedging positions
4.25
Impact of media
Page No.
LIST OF FIGURES
S.NO.
Title
4.1
Respondents age
4.2
4.3
4.4
4.5
4.6
4.7
4.8
4.9
4.10
Annual income
Trading experience
Portfolio size
System trading
Parameters
Share purchase
Hearing prospects
Selection the funds
Share price in portfolio
4.11
Corporate actions
4.12
4.13
Products in trade
4.14
4.15
4.16
Sources of funds
Exposure
4.17
4.18
4.19
4.20
4.21
4.22
4.23
Broker advice
4.24
Hedging positions
4.25
Impact of media
CHAPTER I
Page No.
INTRODUCTION
The Indian capital markets are witnessing a longest bull run scaling new highs,
but still remains to be highly volatile. Very large institutional investors are able to
mitigate their risk through expert management, but the retail investors remain
unsecured due to lack of knowledge and information availability, made them more
speculative. Investors are required to work harder and think differently aggressive,
unconventional stances and healthy practices could yield better benefits to them in a
long run.
The Capital Markets plays a crucial role in the growth of an economy for a
developing country like India; Retail investors began participating in the stock
markets in a small way with the dilution of the FERA in 1978. Multinational
companies, with operations in India, were forced to reduce foreign share holding to
below a certain percentage, which led to a compulsory sale of shares or issuance of
fresh stock. Indian retail investors, who applied for these shares, encountered a real
lottery because those were the days when the CCI decided the price at which the
shares could be issued. There was no free pricing and their formula was very
conservative.
The Indian capital market is undergoing several systematic changes since the
economic and financial reforms which started in 1991.Some of the important
milestones in the history of the capital markets were,
Prevention of Insider Trading Act and take over code and corporate governance norms
were recent developments that made the market more attractive. Despite of the abovementioned reforms, which took place in the Indian capital market, it still failed to
engross the retail investors in a big level. Retail participation in India is very less
considering the overall savings of the households. Investors who hold shares of
limited companies and mutual fund units are about 20 to 30 million. Those who
participate in secondary markets are only 2 to 3 million, and these investors are also
exposed to high risk and tend to loose out their money due to some unhealthy
investing and trading practices that lead to their relinquishment from the markets.
Hence the investors are needed to be empowered in planning their finance and
understanding the markets, thereby spreading the market wisdom. Therefore this is
like to conduct a study on the present investing and trading practices adopted by the
Indian retail investors and to suggest suitable recommendations, to bring
improvement and better practices, which may lead to prosperity of Indian retail
investors.
1.1 Statement of the problem:
To collect and consider the present investing and trading practices adopted by
the retail investors and to make suitable recommendations and improvements on the
prescribed practices in the market. Investing refers to investments made in Mutual
funds and IPOs. Trading refers to buying and selling of shares in cash and Derivative
(Futures and Options) markets.
1.2 Objectives of the study:
planning and investment advises. Secondary data will be data and statistics available
through Internet and other relevant books and journals. Responses will be evaluated
and proper solutions will be recommended.
1.4 Research Methodology:
Primary data would consist of well structured
questionnaire administered to retail investors who actively take part in capital markets
and separate questionnaires will be administered to Personnel of various AMCs
Financial institutions (Broking houses/Sub-brokers) and experts who do financial
planning like Tax planning and investment advises. Secondary data will be collected
from websites, books and journals.
Sampling Scheme:
Simple Random Sampling.
Sampling Size: Sample size includes 250 responses from retail investors and 50
responses from asset management companies-Financial Institutions (Broking Houses /
sub-brokers) and also to experts who do financial planning like Tax planning and
investment advises. Analysis and interpretation will be made based on collected data.
The respondents are reluctant to express their views freely and openly.
2)
CHAPTER-II
INDUSTRY PROFILE
Indian
capital
markets
have
witnessed
transformation over the last decade. India now finds its place amongst some
of the most sophisticated and largest markets of the world. With over 20
million shareholders, India has the third largest investor base in the world after
the USA and Japan. Over 9,000 companies are listed on Indian stock
exchanges. The Indian capital market is significant in terms of the degree of
development, volume of trading and its tremendous growth potential. Over the
past few years, the capital markets have also witnessed substantial reforms in
regulation and supervision. Reforms, particularly the establishment and
empowerment of SEBI, market-determined prices and allocation of resources,
screen-based nation-wide trading, dematerialization and electronic transfer of
securities, rolling settlement and derivatives trading have greatly improved
both the regulatory framework and efficiency of trading and settlement. There
are 23 recognized stock exchanges in India, including the OTCEI for small
and new companies and the NSE, which was set up as a model exchange to
provide nation-wide services to investors.
During 2002-03 the NSE and the BSE were ranked third
and sixth respectively amongst all exchanges in the world with respect to the
number of transactions. The year 2003, also witnessed setting up of the
NCDEX, an online multi-commodity exchange for trading of various
commodities.
Key initiatives in recent years include:
Depository and share de-materialization process have
enhanced the efficiency of the transaction cycle.
Insurance Sector:
With the opening up of the market for private players,
various foreign and Indian private players have targeted the untapped market
potential by providing tailor-made products. Some key features of the Indian
insurance sector are stated below:
The presence of a host of new players in the sector
has resulted in a shift in approach and the launch of innovative products,
services and value-added benefits. Foreign majors have entered the country
and announced joint ventures in both life and non-life areas. Major foreign
players include New York Life, Aviva, Tokio Marine, Allianz, Standard Life,
Lombard General, AIG, AMP and Sun Life among others. As a result of
competition, the erstwhile state sector companies have become aggressive in
terms of product offerings, marketing and distribution.
The Insurance Regulatory and Development Authority
(IRDA) have played a proactive role as a regulator and a facilitator in the
sectors development.
The state sector Life Insurance Corporation (LIC), the
largest life insurer in 2000, sold close to 20 million new policies with a
turnover of approximately US$ 5 billion.
a premium income of US$ 80 billion with a potential size of over 300 million
people. The General Insurance Corporation (GIC) (which covers the non-life
sector) had a total premium income of US$ 2 billion in 2001-02. This has the
potential to reach US$ 9 billion in the next five years.
Industry Outlook:
Indian financial sector presents a huge retail finance opportunity.
Existing low penetration levels, increasing affordability of credit and rising
income levels have led to a growing demand for retail financial products. India
has a large pool of retail investor base spread throughout the country with a
huge pool of untapped surplus funds. The confidence of small investors has
increased with the growing levels of education and financial awareness, and
the tightening of regulatory systems. Exposure to global practices has made
the Indian customer more discerning and demanding. As a result of falling
interest rates, bank deposits, other traditional investment opportunities are
losing their attraction. Thus, Indian investors are getting attracted towards
alternate investments such as the equity markets and are looking for newer
financial products.
Huge opportunities offered in the retail financial services
sector are coupled with several challenges. The sector requires extremely
effective distribution systems that are capable of offering flexibility and
convenience to the customer, while maintaining cost-efficiency. There has
been a clear shift towards those entities that are able to offer products and
services in the most innovative and cost efficient manner. The financial sector
will need to adopt a customer-centric business focus.
It will also have to create value for its shareholders as
well as its customers, competing for the capital necessary to fund growth as
well as for customer market share. The financial services industry is
undergoing a consolidation with the large number of small players turning into
few large players. In future, it is expected that the players who can offer a
complete bouquet of financial products and services will capture the market
share.
capital
requirements,
increased
regulatory
oversight,
customer
and infrastructure and have resulted in the smaller players getting driven out
of the system. These companies strengths lie in their strong balance sheets,
countrywide presence; strong brand awareness and highly trained sales force
delivering world-class service levels to the retail investor.
The retail presence in the stock markets has been
growing steadily with the advent of dematerialization and the recent
acceleration in opening of demats accounts. The current retail business has a
65% share of total exchange volumes, with FI/FII business having 15% share,
and proprietary trading by brokers & related parties accounting for the
remaining 20% share. The
retail participation is stated to grow more than 25% per annum for the next 10
years. The market shares of the top 5 brokers on NSE has increased from
less than 5.9 % in 1996-97 to about 13% in the previous quarter ended
December 31, 2003. The market share of the top 10 players on NSE has
grown from 10% in 1996-97 to 16.4% in 2002-03, and the share of the top 25
players on NSE has grown from 19.7% in 1996-97 to 29.1% in 2002-03.
This consolidation has markedly accelerated in the last 2
years, where the market share for the top 5 brokers has gone up from 7% to
about 13%, due to the impact of regulatory changes, introduction of new
technologies and increased customer sophistication. This development
parallels, on an accelerated timeline, the development of the US markets from
1970s to 1990s, where the top 5 brokers, like Charles Schwab, Etrade, Merrill
Lynch, Dean Witter, and Smith Barney rapidly expanded their market share
and gained control of close to 50% of retail trading volumes. 50% Volumes
done by top brokers Trading Volumes (Rs. Crores) Top Brokers 5 10 25 50
100 NSE Total Avg. India top 5 bulls brokers market.
CHAPTER-III
COMPANY PROFILE
Indiabulls is Indias leading Financial Services and Real Estate Company
having over 640 branches all over India. Indiabulls serves the financial needs
of more than 4,50,000 customers with its wide range of financial services and
products from securities, derivatives trading, depositary services, research &
advisory services, consumer secured & unsecured credit, loan against shares
and mortgage & housing finance. With around 4000 Relationship Managers,
Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls
through its group companies has entered Indian Real Estate business in
2005. It is currently evaluating several large-scale projects worth several
hundred million dollars. Indiabulls Financial Services Ltd is listed on the
National Stock Exchange, Bombay Stock Exchange and Luxembourg Stock
Exchange. The market capitalization of Indiabulls is around USD 3,330
million (30th September 2007). Consolidated net worth of the group is
around USD 950 million (30th September 2007). Indiabulls and its group
companies have attracted more than USD 800 million of equity capital in
Foreign Direct Investment (FDI) since March 2000. Some of the large
shareholders of Indiabulls are the largest financial institutions of the world
such as Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and
Farallon Capital. Business of the company has grown in leaps and bounds
since its inception. Revenue of the company grew at a CAGR of 159% from
FY03 to FY07.
Indiabulls became the first company to bring FDI in Indian
Real Estate through a JV with Farallon Capital Management LLC, a respected
US based investment firm. Indiabulls has demonstrated deep understanding
and commitment to Indian Real Estate market by winning competitive bids for
landmark properties in Mumbai and Delhi
Growth Story:
Indiabulls has emerged as one of the leading and fastest
growing financial company in less than two year, since its initial public offering
2001-03
2003-04
trading.
Company focused on brand building and franchise model.
Indiabulls came out with its initial public offer (IPO) in September
2004.
2004-05
2005-06
Indiabulls entered the Indian Real Estate market and became the
first company to bring FDI in Indian Real Estate.
Indiabulls won bids for landmark properties in Mumbai.
with a database of over 2,000 listed companies. The site details company
results, including the profit and loss accounts and balance sheets, information
on the company's background, ratios and investor issues, such as bonus
issues and price history. It also gives the company's history and a
comparative fact-sheet on firms in its peer group. The research might not,
however, be enough for a seasoned investor, as there is no detailed analysis
on the companies or the industries they operate in. There are more
specialized sites for such information, which would be more useful.
The portfolio module helps one keep track of personal
securities portfolio. The clients portfolio is updated on a real-time basis and
the module has a number of tools that can help him to manage and track the
shares the owners. It is yet to include mutual fund investments, as there is still
no facility for updating them on a real-time basis. It is, however, immensely
useful for the investor who is a keen trader but does not want the hassle of an
investment manager or costly portfolio-management software.
Finally, the personal finance module, which is packed with
information on taxation issues, credit cards and fixed deposits. An interesting
tool, the tax calculator, helps calculate personal tax liabilities. Perhaps the
most attractive feature of the site is the Stock Game, which allows the client to
trade phantom shares and try his hand at the stock market without making
any investment except your time. It is also a good way for an amateur to
practice analytical skills without running the risk of losing money. Other
features include a chat room, message board and an area related to technical
analysis.
Site idea:
On the whole, the website is well organized. Links are
well coordinated and lay out, and the search facilities are good. The site's
main problem is that it lacks depth in analysis. While indiabulls.com covers a
wide range of areas, aiming to give as much financial information as possible,
it is missing out on the fine details of analysis. At present, this site is useful
only for the amateur investor who is surfing the market but does not plan to
make any firm decisions. The site could be far more useful if it builds on the
current volume of information, and provides more analysis on the different
areas, especially mutual funds and individual companies. This is the only way
it can compete with the numerous other financial web sites. The concept of
trading shares on-line is still catching on in India. The site has taken the first
few steps by developing a phantom trading site. Therefore, it already has the
advantage of a framework within which shares can be traded on-line. This
could be further developed to cater to real trading.
GENERAL INFORMATION:
AUTHORITY FOR THE ISSUE:
The current Issue has been authorized by shareholders
vide a special resolution adopted pursuant to Section 81 (1A) of the
Companies Act, passed at Extraordinary General Meeting held on April 12,
2004.
PROHIBITION BY SEBI:
The subsidiaries, the Directors, the Promoters, any of the
associates of the group companies, other companies /entities promoted by
the Promoters, and companies/entities with which the Directors are
associated with as directors or promoters, have not been prohibited from
accessing the capital markets under any order or direction passed by SEBI.
None of the Directors or in the persons in control of the Promoter companies
have been prohibited from accessing the capital markets or restrained from
buying/selling/dealing in securities under any order or direction passed by
SEBI.
development
in
Indias
fiscal
and
environmental regulations.
There has been no public market for the Companys
equity shares till now and the prices of the Companys equity shares may
fluctuate after this Issue. There can be no assurance that an active trading
market for the equity shares wills developer be sustained after this Issue, or
that prices at which the Companys equity shares are initially offered will
correspond to the prices at which the Companys equity shares will trade in
the market subsequent to this Issue. The Companys share price could be
volatile and may also decline.
Indiabulls offers services across a broad array of products, including
Stocks, Options and Futures
Depository Services
Commodities
Insurance Products
Mutual Funds
Bonds and Debt Product
TECHNOLOGY INFRASTRUCTURE:
The Company and the subsidiaries have a high-end
technical infrastructure to meet the demands of its growing business.
Internet Trading Server setup:
As explained above, the Internet trading application
developed by us is a system comprising a large number of components and
interfaces to various entities like the NSE, HDFC Bank, Depository etc. This
application has been co-located out of the Data center of Videsh Sanchar
Nigam Limited in Mumbai. The decision to co-locate out of a World Class
Level 3 data center stems from the fact that this set-up has to have the
highest levels of reliability and uptime. The Level 3 data centered VSNL
provides the following infrastructure in the form of
Raised floors
HVAC temperature control systems
Air-Sense State of the art Aspirating smoke detection
FM 200 based Fire suppression systems
Video camera surveillance systems, Biometric access &
sensors
Security breach alarms
Gigabit Local Area Network
On site Power Systems with multiple backup generators
feeding a redundant UPS grid to offer the highest levels of reliability.
Network setup:
The Company and the subsidiaries have more than 400
desktops all over the country being used by the employees at the branches.
All branches have 10/100 Mbps Local Area Networks with structured cabling
and switches / hubs from well-known network equipment manufacturers. Each
office has dedicated Internet connectivity through which employees arable to
communicate with head office and customers for all servicing and operational
matters. Leased lines have been taken from well-known ISPs. These leased
lines are backed up by ISDN lines and dialup accounts. Most of the larger
offices have multiple connectivity to Internet to prevent any downtime in
operations.
order
entry
leading
to
central
risk
CHAPTER IV
DATA ANALYSIS AND INTERPRETATIONS
formats. The data lying in such a crude form are not ready for analysis. The
researcher must take some measures, to bring the data a term where it can be easily
analyzed. Various steps, which are required for this purpose are editing, coding and
tabulating.
Editing refers to inspecting, correcting and modifying the collected data.
Coding refers to assigning number or other symbol, to each answer or placing them in
categories to prepare data for tabulation.
Tabulating refers to bringing together the similar data into rows and columns
and totaling them in an accurate and nearing to full form.
1. Age
The aim here is to categorize the respondents with respect to age.
Table No.4.1 Age
Sl. No
1
2
3
4
Age
No. of.
Percentage
25 35
36 45
46 55
56 and above
Respondents
120
132
30
18
300
40
44
10
06
100
Total
2. Annual Income
It gives annual income of respondents.
Table No.4.2 Annual Income
Sl. No
1
2
3
4
Annual income
No. of.
Percentage
Below 1 lakh
1 lakh 3 lakhs
3 lakhs 5 lakhs
5 lakhs and above
Respondents
54
102
114
30
300
18
34
38
10
100
Total
Inference:
It is inferred from the above table that 38% of the respondents annual
income is between 3 lakhs 5 lakhs which is followed by 1 lakh 3 lakhs (34%),
below 1 lakh (18%) and 5 lakhs and above.
3. Experience
This question is asked to know the trading experience of respondents.
Table No.4.3 Experience
Sl. No
1
2
3
Trading
No. of.
Percentage
experience
< 5 years
5 15 years
> 15 years
Respondents
60
138
102
300
20
36
34
100
Total
4. Portfolio size
The table below indicates portfolio size, which means that combination
of various assets in share market invested by respondents.
Table No: 4.4 Portfolio size
Sl. No
1
Annual income
No. of.
Percentage
Respondents
54
18
2
3
4
1 5 lakhs
5 15 lakhs
More than 15 lakhs
108
90
48
300
36
30
16
100
Total
5. Type of trading
This question is asked in order to find out what type of trading the
respondents prefer.
Table No.4.5 Type of trading
Self related as
Trader
Investor
Total
Percentage
Day trading
Delivery
88
56
12
44
100
100
6. Parameters
Online
Offline
Intraday
Delivery
Total
Parameters
Safe &
Risky
Percentage
Safe &
Risky
Reliable
105
78
52
62
63
43
102
34
Reliable
35
26
18
21
26
18
42
14
297
242
100
100
120
105
102
100
78
80
63
60
52
43
62
34
40
20
0
Online
Offline
Intra day
Risky
7. Share purchase
Delivery
Parameters
No. of.
Percentage
Share price
Respondents
113
38
2
3
movement
Sector movement
Studying the
98
54
32
18
fundamentals
Recommendations
35
300
12
100
Total
Sl. No
Red hearing
No. of.
Percentage
1
2
prospectus
Yes
No
Respondents
270
30
300
90
10
100
Total
No. o. Respondents
Returns
Risk
Percentage
Returns
Risk
Small cap
High
60
High
94
High
24
High
45
Mid cap
Low 30
High 124
Low
High
36
66
Low
High
50
50
Low
High
41
31
Large cap
Low
High
Low
High
27
51
Low
High
25
26
Low
High
31
24
Total
Low 15
High 247
Low 24
High 211
Low 25
High 100
Low
High
28
100
Low
Low
Low
100
Low
15
63
60
87
100
No. of.
Percentage
portfolio
Always
Some time
Never
Respondents
126
162
12
300
42
54
04
100
Total
Hold in the
No. of.
Percentage
1
2
portfolio
Yes
No
Respondents
282
18
300
94
06
100
Total
No. of.
Percentage
<5
5 15
15 20
> 20
Respondents
42
108
132
18
18
36
44
06
300
100
Total
Inference:
From the above table, it is inferred that most of the respondents (44%) trades
execute on a day 15 20.
Sl. No
1
2
3
Product in trade
No. of.
Percentage
Cash
Future
Options
Respondents
126
90
84
300
42
30
28
100
Total
No. o. Respondents
Returns
Risk
High 36
High 121
Percentage
Returns
Risk
High 16
High
49
Future
Low
High
33
57
Low
High
42
65
Low
High
61
26
Low
High
48
26
Options
Low 09
High 125
Low
High
21
60
Low
High
17
58
Low
High
24
25
Total
Low 12
High 218
Low 24
High 246
Low 22
High 100
Low
High
28
100
Low
Low
Low
100
Low
54
87
100
Inference:
From the above table, which trading products mostly desired by respondents
that analyze result were high returns in options (125) and low returns in cash (33), as
well as high risk in cash (121) and low risk in cash (42) respectively.
No. of.
Respondents
Percentage
1
2
Own ash
Exposure given by
broker
Margin trading
70
90
23
30
140
300
47
100
Total
16. Exposure
This question is asked to find out trade by taking exposure from broker.
Table No.4.16 Exposure
Sl. No
1
2
No. of.
Percentage
Yes
No
Respondents
167
133
300
56
44
100
Total
Inference:
This table was establish slightly different within yes and no (167&133)
answered by respondents, but find out the answer yes (56%) in taking extra exposure
from broker.
No. of.
Percentage
1
2
Own ash
Exposure given by
Respondents
102
43
34
14
broker
Margin trading
155
300
52
100
Total
Inference:
Most of the respondents are feeling for their funds safety in margin trading
(52%). Then 34% and 14% of the respondents were the ratio of safe source of funds
in own cash and exposure given by broker respectively.
No. of.
Percentage
Yes
No
Respondents
276
24
300
92
08
100
Total
Inference:
From the above table, it is inferred that most of the respondents (92%) are
get margin calls regularly from your broker whenever you are in margin.
No. of.
Percentage
1
2
Total
Yes
No
Respondents
288
12
300
96
04
100
Inference:
From the above table, it is inferred that most of the respondents (96%) are
Trades with contract notes issued by brokers.
Margin to utilize
No. of.
Percentage
Always
Sometime
Respondents
168
132
300
56
44
100
No. of.
Percentage
1
2
Total
Always
Sometime
Respondents
210
90
300
70
30
100
Inference:
From the above table, Hugh respondents (70%) are follow stop loss orders
while trading.
No. of.
Percentage
regulations
Yes
No
Respondents
282
18
300
94
06
100
Inference:
From the above data, it is obvious that majority of the respondents (94%) are
benefited or safe guarded by SEBI regulations.
Broker advice
No. of.
Percentage
1
2
Total
Yes
No
Respondents
186
114
300
62
38
100
Hedging positions
No. of.
Percentage
Yes
No
Respondents
270
30
300
90
10
100
This question is asked to know the media affect the investment decision
while trading
Table No.4.25 Impact of media
Sl. No
1
2
Total
Impact of media
No. of.
Percentage
Yes
No
Respondents
270
30
300
90
10
100
5. Chi-Square test - I
Table No. 4.5 cross tabulation between portfolio size with age
Age group
25 - 35
36 - 45
46 - 55
56 and
above
Total
Portfolio size
1 5 lakhs
5 15 lakhs
Less than 1
lakh
More than 15
lakhs
Total
53
42
18
41
34
29
8
9
5
6
5
2
108
90
54
28
48
120
132
30
18
300
Inference
Ho There is no significant relationship between portfolio size and age.
HA There is a significant relationship between portfolio size and age.
(O-E)
(O-E)2
(O-E)2/E
18
21.6
-3.6
12.96
0.6
53
43.2
9.8
96.04
2.223
42
36
36
19.2
-12.2
148.84
7.752
29
23.76
5.24
27.458
1.156
41
47.52
-6.52
42.51
0.895
34
39.6
-5.6
31.36
0.792
28
21.12
6.88
47.33
2.241
5.4
-0.4
0.16
0.0296
10.8
-2.8
7.84
0.726
4.8
3.2
10.24
2.133
3.24
-1.24
0.538
0.475
6.48
-0.48
0.230
0.036
5.4
-0.4
0.16
0.0296
2.88
2.12
4.494
1.560
= 21.648
(O-E) 2
E
Degree of Freedom = (c-1) (r-1) = (4-1) (4-1) = 9
Table value of chi square test at 9 degrees of freedom = 16.919
The calculated value of chi-square is 21.648. The table value of chi-square at 9 is
16.919 the calculated value is more than table value, hence the null hypothesis
rejected.
Execution per
day
Products in
trade
Cash
Future
options
Total
<5
5 - 15
15 - 20
> 20
Total
21
13
8
42
46
33
29
108
54
40
38
132
5
4
9
18
54
108
90
300
Inference
Ho There is no significant relationship between products in trade and execution per
day.
HA There is a significant relationship between products in trade and execution per
day.
(O-E)
(O-E)2
(O-E)2/E
21
17.64
-3.36
11.2896
0.64
13
12.6
0.4
0.16
0.0127
11.76
-3.76
14.1376
1.2022
46
45.36
0.64
0.4096
0.009
33
32.4
0.6
0.36
0.0111
29
30.24
-1.24
1.5376
0.0508
54
55.44
-1.44
2.0736
0.0374
40
39.6
-0.4
0.16
0.004
38
36.96
1.04
1.0816
0.0293
7.56
-2.56
6.5536
0.8669
5.4
-1.4
1.96
0.3630
5.04
3.96
15.6861
3.1114
= 6.3378
(O-E) 2
E
Degree of Freedom = (c-1) (r-1) = (4-1) (4-1) = 9
Table value of chi square test at 6 degrees of freedom = 12.592
The calculated value of chi-square is 6.3378. The table value of chi-square at 6 is
12.592 the calculated value is less than table value, hence the null hypothesis
accepted.
Age in years:
(a) 25-35
(b) 36-45
(c) 45 55
Annual income:
(a) Below 1 Lakh
(b) 1 Lakh 3 Lakhs
(d) 5 Lakhs and above
(b) 5 15 years
(b) 1 5 lakhs
(c) 5 15
(d) More than 15 lakhs
DELIVERY
TRADER
INVESTOR
Tick the appropriate based on the parameters
Parameters
Traders
Online
Offline
Intra day
Delivery
5. What are the Parameters based on which you buy a share?
a. Based on Share price movement
b. Based on sector movement
RISKY
6. Do you apply for Ipos? If yes do you read the IPO form And Red hearing
prospectus before applying for an IPO?
(a) Yes
(b) No
Returns
O High
O Low
Risk
O High
O Low
O High
O Low
O High
O Low
O High
O Low
O High
O Low
Returns
O High
O Low
Risk
O High
O Low
O High
O Low
O High
O Low
O High
O Low
O High
O Low
(b) Sometime
(c) Never
11. Do you follow up the corporate actions taken by companies that you hold in
your
portfolio?
(a) Yes
(b) No
(a) < 5
(b) 5 15
(c) 15 20
(b) future
(c) Options
(d) > 20
14.Tick the appropriate with respect to returns and risk desired from trading
Products
Returns
Risk
Cash
O High
O High
O Low
O Low
Future
O High
O Low
O High
O Low
O High
O Low
O High
O Low
(c) Margin
Options
15. Source of funds for trading
(a) Own cash
trading
(b) No
(b) No
19. Do you verify your Trades with contract notes issued by brokers?
(a) Yes
(b) No
20. Do you constantly leverage your margin to utilize the market movement?
(a) Always
(b) Sometime
(c) Never
(a) Always
(b) Sometime
(c) Never
22. Do you feel traders are benefited or safe guarded by SEBI regulations?
(a) Yes
(b) No
(b) No
(b) No
(b) No
BIBLOGRAPHY
Industrial Management
Tripathi
3) Research Methodology
C.R Kothari