Effectiveness and analysis of online trading in Lkp securities

CHAPTER-1

1.1 INDUSTRY PROFILE OF BROKING FIRMS:

The Indian retail financier industry comprises of organizations that essentially go about as operators
for the purchasing and offering of securities (e.g. stocks, offers, and comparable money related
instruments) on a commission or exchange expense or Brokerage premise.
A master that charges a cost or commission for executing buys and offer solicitations set up together
by a financial specialist. The firm that goes about as a master for a customer, charge the customer the
commission for its organization. Parts like that of a stockbroker comprises speculator specialist, cash
related aide and apparently various others. A stockbroker may perhaps be in like manner an endeavor
guide. A stockbroker is an overseen proficient merchant who buys and offers and distinctive
securities through business stock exchange or Agency Only Firms for the advantage of money
related experts.
Consistently, a financial specialist who gets a solicitation from a customer will talk with an
association agent workers at a particular exchange, who will execute the solicitation at the exchange
and report purposes of enthusiasm of the trade to the vendor. Customers regularly keep their
securities in a record with the representative. Middle people charge customers commissions for
driving trades and costs for keeping up their records. A part of the key attributes of the representative
business consolidate improvement in e-broking, diminish in costs of doing business and creating
auxiliary business segment and some more.
There are a couple of national furthermore adjacent players in stock trading administrations which
are giving distinctive administrations to their customers like exchanging on the web, portfolio
administration system, stock broking, Investment and dealer managing an account , BSE and NSE,
IPO and common assets, value and settled salary, administrations and retail and so on.
1.1.1 Stock Market
“Stock markets refer to a market place where investors can buy and sell stocks. The price at which
each buying and selling transaction takes is determined by the market forces (i.e. demand and supply
for a particular stock)”.
“A stock market is a public market for the trading of company stock and derivatives at an agreed
price; these are securities listed on a stock exchange as well as those only traded privately”.
A segment of the central qualities of the dealer business is to make advancement in e-broking,
diminish in operational expense and creating possession business area and some more.
Honestly, the offer exchanging framework is frequently seen as the essential pointer of a country's
quality and progression. Rising offer expenses, for instance, tend to be associated with extended
business speculation and a different way.
Along this way, placing assets into securities trade, the stock exchanges assume a noteworthy part.
Exchanges moreover go about as the clearinghouse for each trade, inferring that they assemble and
pass on the shares, and guarantee portion to the merchant of a security. This decreases the danger to
an individual buyer or offers that the counterparty could default on the trade. We will have a clear
picture of stock exchange in following
Stock exchange:
“A stock exchange is an entity which provides trading facilities for stock brokers and traders, to trade
stocks and other securities”.
“Stock Exchanges are an organized marketplace, either corporation or mutual organization, where
members of the organization gather to trade company stocks or other securities”.
Stock trades additionally give facilities to the issue and reclamation of securities and in addition
other money related instruments and event occasions including the installment of pay and profits.

The securities exchanged on a stock trade include: offers issued by organizations, unit trusts,
derivative, pooled venture items and bonds. To have the capacity to exchange a security on a specific
stock trade, it must be recorded there. More often than not there is a central location area at any rate
for recordkeeping, yet exchange is less and less connected to such a physical spot, as current markets
are electronic network, which gives them advantage of speed and cost of exchanges. Exchange on a
trade is by individuals as it only.
There is normally no motivation to issue stock by method for the stock exchange itself, nor must
stock be in this way traded on the exchange. Such trading is said to be off exchange. This is the
standard way that subordinates and bonds are traded. Logically, stock exchanges are a bit of an
overall business division for securities.
Bombay Stock Exchange
National Stock Exchange

List of Stock Exchanges in India

Bombay Stock Exchange (BSE)
National Stock Exchange (NSE)

1.1.2 Bombay Stock Exchange (BSE)

“The Bombay Stock Exchange Limited is the oldest stock exchange not only in the country, but also
in Asia with a rich heritage of over 133 years of existence. In the early days, BSE was established as
The Native Share & Stock Brokers Association."
It was built up in the year 1875 and turned into the primary stock trade in the nation to be perceived
by the legislature. In 1956, BSE got a perpetual acknowledgment from the Government of India
under the Securities Contracts (Regulation) Act, 1956.
Today, BSE is the world's number one trade as far as the quantity of recorded organizations and the
world's fifth in treatment of exchanges through its electronic exchanging framework. The
organizations recorded on BSE summon an aggregate business sector capitalization of USD Trillion
1.15 starting July, 2015.
BSE compasses to more than 400 urban communities and town across the country and has around
4,937 recorded organizations, with more than 7745 scripts being exchanged as on 31st July 15.
The BSE Index, SENSEX, is India's first and most surely understood securities trade benchmark list.
The BSE SENSEX (Sensitive document), in like manner called the "BSE 30", is an extensively used
business segment record as a piece of India and Asia. Sensex is chased after the world. It constitutes
30 stocks addressing 12 important divisions. The SENSEX is based on a 'free-float' rationality, and is
unstable to market advancements and business division substances. Beside the SENSEX, BSE offers
23 records, including 13 sectoral records.
BSE gives a gainful and clear business segment for trading in value, commitment in instruments and
subsidiaries.
BSE is the main exchange India and the second on the world to get an ISO 9001:2000 affirmations.
It is in like manner the fundamental exchange the country and second on the world to get
Information Security Management System Standard BS 7799-2-2002 affirmation for its BSE On-line
Trading System (BOLT).
BSE continues progressing. In 2014, it transformed into the essential national level stock exchange to
dispatch its site in Gujarati and Hindi and now Marathi to interface with a greater number of
financial specialists.
The BSE On-line Trading (BOLT):
“BSE On-line Trading (BOLT) encourages on-line screen based exchanging securities. BOLT is
presently working in 25,000 Trader Workstations situated crosswise over more than 359 urban
communities in India”.
BSE Vision
The vision is
"To Emerge as the premier Indian stock exchange by establishing global benchmarks."

BSE Profile
Address : Phiroze Jeejeebhoy Towers, Dalal Street, Mumbai-400001, India
Website : www.bseindia.com
Trading hours : Monday-Friday, 9:00am to 3:30pm
Securities : Stocks, debt, derivatives
Trading System : with Electronic
MD & CEO : Mr. Ashish Kumar Chauhan

History of BSE
The Bombay Stock Exchange is known as the most settled exchange Asia. It takes after its history to
the 1850s, when stockbrokers would gather under banyan trees before Mumbai's Town Hall. The
zone of these social events changed commonly, as the amount of representatives constantly
extended. The social affair unavoidably moved to Dalal Street in 1874 and in 1875 transformed into
an official affiliation known as 'The Native Share and Stock Brokers Association'. In 1956, the BSE
transformed into the essential stock exchange to be seen by the Indian Government under the
Securities Contracts Regulation Act.
The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE an approach to
gage general execution of the exchange. In 2000 the BSE used this record to open its subordinates
market, trading Sensex destinies contracts. The progression of Sensex decisions close by quality
subsidiaries followed in 2001 and 2002, developing the BSE's trading stage.
Verifiably an open-cry floor trading exchange, the Bombay Stock Exchange changed to an electronic
trading structure in 1995. It took the exchange only fifty days to make this move.
Indices of BSE:
Sensex
BSE 100(This covers Banking Sector)
BSE 200(This covers Capital goods)
BSE 500(This covers Consumer goods)
BSE mid-cap index
BSE small-cap index

BSE mid-top document covers the FMCG range and BSE minimal top record covers the IT, Metal,
Oil and gas, Power industry, PSUs, et cetera. BSE scatters information on the Price-Earnings Ratio,
the Price to Book Value Ratio and the Dividend Yield Percentage on regular reason of all its genuine
documents.
The estimations of all BSE records are upgraded at customary interims in the midst of business
segment hours and appeared through the BOLT structure, BSE site and news wire workplaces.
All BSE Indices are reviewed at times by the BSE Index Committee. This Committee which contains
well known self-governing cash specialists traces the far reaching course of action standards for the
change and backing of all BSE records. The BSE Index Cell finishes the ordinary upkeep of all
records and coordinates research on headway of new documents.

Recompenses accomplished by BSE

The World Council of Corporate Governance has conceded the Golden Peacock Global CSR Award
for BSE's drives in Corporate Social Responsibility (CSR). ICAI stipend for splendor in cash related
reporting for the year 2006-07
BSE has won the Asia - Pacific HRM stipends for its attempts in chief checking through capacity
organization at work, prosperity organization at work and inconceivability in HR through
advancement.
1.1.3 National Stock Exchange (NSE)

Origins:
The National Stock Exchange of India was advanced by driving Financial foundations at the
command of the Government of India, and was consolidated in 27 November 1992 as a duty paying
organization. In 26 April 1993, it was perceived as a stock trade under the Securities Contracts
(Regulation) Act, 1956.
NSE initiated operations in the Wholesale Debt Market (WDM) portion in June 1994.
The Capital Market (Equities) portion of the NSE initiated operations in November 1994, while
operations in the Derivatives section started in June 2000.
Markets: The National Stock Exchange of India Limited (NSE), is a Mumbai-based stock exchange.
It is the greatest stock exchange India to the extent consistently turnover and number of trades, for
both values and subordinate trading.
NSE has a business area capitalization of around Rs. 47,01, 923 center 7 August 2009) and is
depended upon to wind up the best stock exchange India with respect to market capitalization by
2009 end. Despite the way that different distinctive exchanges exist, NSE and the Bombay Stock
Exchange are the two most huge stock exchanges India and between them are accountable for by a
wide margin the greater part of offer trades.
NSE is ordinarily asserted by a course of action of driving cash related establishments, banks,
protection organizations and other fiscal go betweens in India however its ownership and
organization fill in as specific components.
There are no under two outside theorists NYSE Euro next and Goldman Sachs who have taken a
stake in the NSE. Beginning 2006, the NSE VSAT terminals, 2799 out and out, cover more than
1500 urban regions across over India.
In October 2007, the quality business sector capitalization of the associations recorded on the NSE
was US$ 1.46 trillion, making it the second greatest stock exchange South Asia.
NSE is the third greatest Stock Exchange on the planet to the extent the amount of trade’s qualities.
It is the second speediest creating stock exchange on the planet with a recorded advancement of
16.6%.Currently; NSE has the following major segments of the capital market:
Equity
Futures and Options
Retail Debt Market
Wholesale Debt Market
Currency futures
NSE transformed into the primary stock exchange to get support for Interest rate prospects as
recommended by SEBI-RBI counseling bunch, on 31 August,2009, a destinies contract in light of
7% 10 Year GOI security (NOTIONAL) was pushed with quarterly advancements.
Hours:
NSE's common trading sessions are guided from 9:55 am India Time to 3:30 pm India Time on with
or without days of the week from Saturdays, Sundays and Official Holidays reported by the
Exchange (or by the Government of India) early.
The exchange association with BSE (Bombay Stock Exchange Ltd.,) conclusion to alter its timings
from 9.00 am India Time till 5.00 pm India Time.
Regardless, on Dec 17, 2009, after strong differences from handles, the Exchange conceded the
change in trading hours till Jan 04, 2010.
NSE new market timing from Jan 04, 2010 is 9:00 am till 3:30 pm India Time.
NSE Group:
National Securities Clearing Corporation Ltd. (NSCCL)
National Securities Depository Ltd. (NSDL)
India Index Services & Products Ltd. (IISL)
NSE. IT ltd.
Dot Ex International Limited

History of N.S.E
Capital business part changes in India and the dispatch of the Securities and Exchange Board of India
(SEBI) enlivened the solidification of the second Indian stock exchange called the National Stock
Exchange (NSE) in 1992. Taking after a few years of operations, the NSE has transformed into the
greatest stock exchange India.
Three bits of the NSE trading stage were set up reliably. The Wholesale Debt Market (WDM) started
operations in June 1994 and the Capital Market (CM) area was opened toward the end of 1994.
Finally, the Futures and Options bit began working in 2000. Today the NSE takes the fourteenth
position in the fundamental 40 destinies exchanges on the planet.
In 1996, the National Stock Exchange of India dispatched S&P CNX Nifty and CNX Junior Indices
that make up 100 most liquid stocks in India. CNX Nifty is an expanded record of 50 stocks from 25
different economy parts. The Indices are had and regulated by India Index Services and Products Ltd
(IISL) that has directing and allowing simultaneousness with Standard and Poor's.
In 1998, the National Stock Exchange of India pushed its website and was the essential exchange
India that started trading stock on the Internet in 2000. The NSE has similarly shown its power in the
Indian budgetary business part by expanding various stipends, for instance, 'Best IT Usage Award'
by Computer Society in India (in 1996 and 1997) and CHIP Web Award by CHIP magazine (1999).
Mission of N.S.E.
NSE's focal objective is setting the arrangement for change in the securities markets in India. The
NSE was set-up with the guideline objectives of:
Developing a the country over trading office for qualities, commitment instruments and blends,
Ensuring measure up to access to theorists all over the place all through the country through a fitting
correspondence framework,
Giving a sensible, successful and direct securities business area to examiners using electronic trading
structures,
Engaging shorter settlement cycles and book entry settlements systems, and
Meeting the present worldwide benchmarks of securities markets.
The models set by NSE to the extent business area practices and progressions have been able to be
industry benchmarks and are being duplicated by different business segment individuals. NSE is
more than an irrelevant business division facilitator. It's that compel which is controlling the business
towards new horizons and more paramount open entryways.
1.2 THEORETICAL BACKGROUNDOF THE STUDY:

Meaning of Investment?
“The money you earn is partly spent and the rest saved for meeting future expenses. Instead of
keeping the savings idle you may like to use savings in order to get return on it in the future.”
Investor:
“An investor is any party that makes an investment, an individual who commits money to investment
products with the expectation of financial return.”
The term has handled a specific significance in record to depict the particular sorts of people and
associations that routinely purchase worth or commitment securities for financial benefit
consequently to subsidize a developing association.
Financial investor's Behavior:
All around, Investors Behavior as to the any endeavor is vital stress with to minimize peril while
increasing return, rather than a scholar, why ought to willing recognize a bigger measure of threat in
the trusts of social event higher-than-ordinary advantages.
While, a few people are in like manner has trust in "High Risk, High Return" Many examiners
purchase a particular stock with the objective of making a noteworthy advantage over a brief time
allotment. Regardless, this movement is not contributing, yet rather an impeccable wagering.
A currency market is depicted by the trade off amongst threat and return. The higher the peril the
monetary pro is willing and prepared to take, the higher the potential prizes from the hypothesis. In
this way, if a particular hypothesis offers you uncommon yields, it implies that it will go with a high
peril inconvenience.
A few people are furthermore has trust in that there is no ensured hypothesis that will give you
uncommon yields over a brief time span. Consequently, you should organize your advantages toward
whole deal wanders that will most likely compensate you for the resilience with noteworthy yields.
Speculators Behavior as to the budgetary endeavor is solidly related with the "Behavioral Finance"
and "Behavioral Economics" are immovably related fields making up an alternate branch of fiscal
and cash related examination using social, scholarly and energetic variables in cognizance the money
related decisions of monetary authorities for endeavor, and their effects on business area costs,
returns and the bit of advantages.Data of Equity Market and different segments
1.2.1 What is Equity Market?
“A market where investors buy and sell securities providing ownership of a company's shares.”
“The business area in which shares are issued and traded, either through exchanges or over-the-
counter markets. Generally called the offer exchanging framework, it is a champion amongst the
most vital regions of a business part economy since it gives associations access to capital and
budgetary authorities a cut of ownership in an association with the likelihood to recognize
increments in perspective of its future execution”.
Value business sector, or securities trade, is a structure through which association shares are traded.
The quality business sector offers budgetary experts an opportunity to take an enthusiasm for an
association's thriving through an extension in its stock expense. With updated opportunity,
regardless, the worth showcase as a general rule passes on more genuine risk than commitment
markets.
Indian Equity Market
The Indian Equity Market is more broadly known as the Indian Stock Market. The Indian quality
business sector has transformed into the third most noteworthy after China and Hong Kong in the
Asian locale.
According to the latest report by ADB, it has a business division capitalization of about $600 billion.
As of March 2015, the business area capitalization was around $598.3 billion which is one-tenth of
the merged valuation of the Asia region. The business part was moderate consequent to mid 2011
and continued till the main quarter of 2015.
The Indian value market relies on upon three elements -
"1.Funding into value from everywhere throughout the world, 2.Corporate houses execution,
3.Monsoons"
The quality business division is furthermore impacted through trade consolidation approach. The
country has advanced both in outside institutional endeavor (FII) and trade compromise subsequent
to 1995. This is an astoundingly engaging field for making advantage for medium and whole deal
monetary authorities, temporary swing and position intermediaries and to a great degree intraday
merchants.
The Indian business segment has 22 stock exchanges. The greater associations are enlisted with BSE
and NSE. The more diminutive and medium associations are recorded with OTCEI (Over The
counter Exchange of India). The components of the Equity Market in India are overseen by SEBI
(Securities Exchange Board of India).
The Indian Equity Market was not all around formed or made before flexibility. After self-
governance, new issues were regulated. The arranging, floatation costs, esteeming, advance charges
were totally controlled by the Controller of Capital Issue (CII).
In the 1950s, there was wild speculation and the business area was known as 'Satta Bazaar'. Scholars
went for association takes after Tata Steel, Kohinoor Mills, Century Textiles, Bombay Dyeing and
National Rayon. The Securities Contracts (Regulation) Act, 1956 was approved by the Government
of India. Cash related establishments and state money related association were made through a
developed framework.
Two new stock exchanges, NSE (National Stock Exchange of India) set up in 1994 and OTCEI
(Over the Counter Exchange of India) set up in 1992 gave BSE a the country over contention. In
1995-96, a change was made to the Securities Contracts (Regulation) Act, 1956 for showing choices
trading. In April 1995, the National Securities Clearing Corporation (NSCC) and in November 1996,
the National Securities Depository Limited (NSDL) were set up for demutualised trading, clearing
and settlement.
1.2.2 INTRODUCTION OF VARIOUS SECTORS

Meaning of Sector:
“There are many companies or scrip that manufacturer the same products and provide services are
specified under the particular name that called Industry or Sector.”
“There are many other different kinds of industries, and often organized into different classes or
variety of industrial classifications it’s called Sector”.
In this report, I have study on these Five Sectors which are:
 Banking
 Information technology
 Automobile
 Infrastructure
 Oil and Gas

INTRODUCTION OF selected SECTORS

Oil & gas Sector:
The oil and gas industry starting late has been depicted by rising use of oil things, declining
unpleasant era and low spare development. India stays one of the base researched countries on the
planet, with a well thickness among the most negligible on the planet. India is the fourth greatest oil
use zone in Asia, notwithstanding the way that on a for each capita premise the use is a minor 0.1
tons, the most insignificant in the locale This makes the conceivable outcomes of the Indian Oil
industry altogether moreover empowering.
The oil and gas industry has been instrumental in fuelling the quick improvement of the Indian
economy. The petroleum and typical gas region which consolidates transportation, refining and
advancing of petroleum things and gas industry constitutes more than 15 for each penny of the GDP.
India's neighborhood enthusiasm for oil and gas is on the rising. As per the Ministry of Petroleum,
enthusiasm for oil and gas is inclined to augmentation which is 186.54 million tons in 2012-13.
India is ascending as the overall place for oil refining with capital costs lower by 25 to 50 for every
penny over other Asian countries.
Starting now, the fifth greatest country on the planet to the extent refining limit, with an offer of 3 for
every penny of as far as possible, India is inclined to help its refining limit by 45 for each penny or
65.3 to 242 mtpa (million tons for each annum) all through the accompanying five years.

Banking Sector:
Saving money in India began in the latest numerous years of the eighteenth century. The most settled
bank in nearness in India is the State Bank of India, an organization guaranteed bank that takes after
its roots back to June 1806 and that is the greatest business bank in the country. Central keeping cash
is the commitment of the Reserve Bank of India, which in 1935 formally expected control over these
commitments from the then Imperial Bank of India.
The dealing with a record portion will investigate through each one of the parts of the Banking
System in India. It will inspect upon the matters with the presentation of the dealing with a record
thought in the country to new players incorporating their names in the business in coming couple of
years. The specialist of all banks, Reserve Bank of India (RBI), the Indian Banks Association (IBA)
and primary 20 banks like IDBI, HSBC, ICICI, ABN AMRO, et cetera.
With the Indian economy continuing ahead to a high advancement course, usage levels taking off
and theory riding high, the Indian keeping cash division is at a watershed. Further, as Indian
associations globalize and people of Indian root extend their enthusiasm for India, a couple of Indian
banks are looking for after overall frameworks,
In the Third Quarter Review of Monetary Policy for 2009-10, the RBI watched that the Indian
economy exhibited a level of adaptability as it recorded an unrivaled than-expected improvement of
7.9 percent in the midst of the second quarter of 2009-10.
The business has been getting to be speedier than the bona fide economy, achieving the extent of
preferences of business banks to GDP growing to 92.5 for each penny at end-March 2007. The
Indian banks have furthermore been doing phenomenally well in the cash related part with the
expense to-book quality being second just to china, according to a report by (BCG) Boston
Consultancy Group.
IT Sector:
Over the earlier decade, the Information Technology (IT) industry has been able to be one of the
fastest creating organizations in India. The key parcels that have contributed generally to the
business' tolls fuse – Software and organizations and IT-engaged organizations i.e. business
organizations. Over a time allotment, India has set up itself as a favored overall sourcing base in
these areas and they are depended upon to continue filling advancement later on.
At present, India is creating as one of the conspicuous Software outsourcing territories to offer
fiscally adroit programming game plans. The dedication of India in Software Outsourcing is superb.
One just can't reject reality that starting now India is portrayed as the most succeeding name in
programming outsourcing. In the blink of an eye there are a couple of avocations for this flourishing
reputation of the toward the ocean IT outsourcing organizations of India. The prime clarification
behind picking India, as a toward the ocean change assistant in programming outsourcing business is
the openness of colossal pool of educated work combined with world-class quality offerings.
The Indian information development (IT) industry has expected a key part in putting India on the
overall aide. By virtue of the accomplishment of the IT business, India is without further ado a
vitality to figure with. As showed by the National Association of Software and Service Companies
(NASSCOM), the crest body for programming organizations in India, the pay of the information
advancement region has climbed from 1.2 for every penny of the aggregate national yield (GDP) in
FY 1997-98 to a normal 5.8 for every penny in FY 2008-09. Further, the industry body expects that
the zone will create between 4 for each penny and 7 for each penny in the midst of 2009-10 and
return to more than 10 for each penny advancement one year from now.
India's nearby business part has moreover transformed into an energy to figure with, as the present IT
structure creates both to the extent advancement and significance of penetration.
According to NASSCOM, family unit IT market (numbering hardware) accomplished US$ 24.3
billion in FY 2008-09 as against US$ 23.1 billion in FY 2007-08, an advancement of 5.3 for every
penny.
Investments:
The Andhra Pradesh Government expects the IT-related SEZs and Software Technology Parks of
India (STPI) in the State to get about US$ 3.27 billion interests in the accompanying five years.
Mahindra Satyam has tied up with shield and security association Saab to develop its operations in
India for the overall resistance and nation security market. The evaluated deal worth is US$ 400
million.
San Francisco-based Virtualization courses of action supplier VMware Inc plans to put US$ 100
million in India by end 2010.
The total endeavors of EMC Corporation, a primary overall player of information base courses of
action, in India will touch US$ 2 billion by 2014.
The Indian information advancement part continues being one of the light territories of the Indian
economy showing snappy improvement and surety.
Infrastructure Sector:
Base is the basic physical and various leveled structures required for the operation of an overall
population or attempt, or the organizations and workplaces imperative for an economy to work. The
term usually insinuates the particular structures that sponsorship an overall population, for instance,
lanes, water supply, sewers, power networks, data exchanges, and so on.
India's Infrastructure has been stretching out at a stimulated pace to support the monetary
improvement rate of more than 9 for every penny. The six focus base organizations, which speak to a
united weight of 26.68 percent in the rundown of mechanical creation (IIP), enlisted an improvement
of 8.6 percent in 2006-07 as against 6.2 percent in the midst of 2005-06.
The advancement has continued with apace in the midst of the current budgetary, with the six focus
establishment business ventures creating at the rate of 6.9 percent in the midst of April-September
2007. Basically, control recorded an advancement rate of 7.6 for each penny stood out from 6.7 for
every penny in the same period a year prior. Distinctive parts recording huge advancement include:
petroleum refinery things (9.8 for every penny), concrete (8.3 for each penny) and finished (carbon)
steel (6.6 for every penny).
Establishment enthusiasm for India is set to end up definitely enlivened by 5.3 percent in 2008-09.
India has transformed into a significant outbound theorist and people are attracting with Indians to
search for endeavor into their countries, said the Minister for Road Transport and Highways, Mr.
Kamal Nath ,According to theory keeping cash association Goldman Sachs, India's structure part will
require US$ 1.7 trillion enthusiasm for the accompanying 10-years. It moreover incorporated that
such theory would come more from the family unit market than abroad.
Automobile Sector:
Automobile industry is one of the snappiest creating business endeavors of the world. With more
than 2 million new autos uncovering each year, on lanes of India, the industry is set to wind up
further.
Auto industry made its peaceful section in India in the nineteenth century. Since the dispatch of the
essential auto in 1897, India vehicles industry has gained some astounding ground. Today India is
the greatest three wheeler market on the planet and is required to accept control China as the second
greatest auto market, in the coming years.
The improvement of the Indian desk class close by the advancement of the economy over the span of
late years has pulled in overall auto majors to the Indian business area. Likewise, India gives
arranged work at centered costs making India a favored overall amassing focus. The connecting with
nature of the Indian markets on one hand and the stagnation of the auto zone in business divisions,
for instance,
List of companies under selected SECTORS

OIL & GAS SECTOR:

Indian Oil Corporation, ONGC (Oil and Natural Gas Corporation India.),Gas Authority of India
Limited, Oil India Limited, Indian Oil, Gas Projects (India) Private Limited, India LPG, Oil Gas
India Etc.
BANKING SECTOR:
State Bank of India, Syndicate Bank ,HDFC ,IDBI Bank etc.
IT SECTOR:
Infosys, TCS Limited, Wipro, Microsoft, Mahindra Satyam Etc.

INFRASTRUCTURE SECTOR:
L&T Infrastructure, RAMCO Infrastructure, SS Infra Limited Etc…

AUTOMOBILE SECTOR:
Volvo, Fait Motor, TVS Motors, Tata Auto, Tata Motors, skoda etc
1.2.3 INTRODUCTION OF CAPITAL MARKET
Concept:
Capital business sector is the business parts for resources which have a long or ill defined
advancement i.e. it oversee whole deal stores. Generally capital business part supplies whole deal
and medium term securities and resources, which have an improvement time of above one year.
Capital business area makes the benefits from the saver and trade to customer. All things considered
it completed with ordinary offer, stocks, debentures and commitments of ventures and securities of
the organization. They do in that capacity by changing over budgetary assets into advantageous
physical assets.
Capital business division gives a business part segment to the people who have hold subsidizes and
to the people who need stores for advantageous endeavors. It possesses resources from wasteful and
pointless channels to productive endeavor.
The Capital Market:
The start of the Indian securities business area may be taken after back to 1875, when 22 eager
merchants under a Banyan tree developed the Bombay Stock Exchange (BSE). Throughout the latest
133 years, the Indian securities market has grown endlessly to wind up a champion amongst the most
dynamic, progressed and capable securities markets in Asia. Today, Indian markets consent to
worldwide benchmarks both viewing structure and to the extent working viability.
A capital business part is a business open door for securities (commitment or quality), where
business attempts (associations) and governments can raise whole deal holds. It is described as a
business division in which money is obliged periods longer than a year, as the raising of transitory
resources happens on various markets
Structure and Size of the Markets:
Organization of the exchanges expects the counter-party danger of each part and guarantees
settlement through a changed peril organization system and an innovative method for online position
watching. It in like manner ensures the cash related settlement of trades on the named day and time
paying little mind to default by people to pass on the required resources and/or securities with the
help of a settlement guarantee store. Today India has two national exchanges, the Bombay Stock
Exchange (BSE) and the National Stock Exchange (NSE). Each has totally electronic trading stages
with around 9400 taking an enthusiasm broking outfits.
BSE extents to more than 400 urban groups and town the nation over and has around 4,937 recorded
associations, with more than 7745 scripts being traded as on 31st July 14. The associations recorded
on BSE charge a total business division capitalization of USD Trillion 1.06 beginning July, 2014.
There is some spot in the extent of 9600 affiliations recorded on the particular trades. Any business
division that has encountered this kind of headway has a correspondingly significant eagerness for
exceedingly useful settlement systems.
Highlights of the exceptionally appealing Indian capital markets:
Two principle reasons why Indian securities are in the blink of an eye dynamically saw as speaking
to worldwide examiners appear to be:
The tolerably uncommon yields differentiated and more made overall markets and likewise the low
association with world markets.
However until the mid 90s, the remote budgetary authorities' selective strategy for getting to the
Indian capital markets was through recorded country stores
India’s Security Market
A Brief History
“The capital market is one of the most exciting sectors in the financial system, marking an important
contribution to economic development.”
Asia Focus was moved by the Unit Trust of India (UTI) in London in 1986. The accomplishment of
this action ensured that this benefit was trailed by different others. Indian associations are as of now
also allowed to get esteem capital up the all inclusive business segment through the issue of GDRs.
In 2004, there are 498 Foreign Institutional Investors who hold 1325 sub-accounts with a net theory
of generally $15 billion. India's controller, the Securities Exchange Board of India (SEBI) is having
progressively a headway influence as opposed to being basically a gatekeeper pooch.
Straightforwardness, forcefulness and comparable opportunity to all business area individuals has
been the driving hypothesis behind all the progression and managerial exercises of SEBI. The
openness of subordinate things including record destinies, list decisions, particular stock destinies
and individual speculation opportunities re-approves the general bid of this business area to outside
and nearby money related pros. The subordinates market in only two years has shown breathtaking
improvement. Appeared differently in relation to last cash related year the yearly turnover created by
more than 300%. As if extra affirmation was required of India's capacity to handle change, the
openness of Internet trading and twofold fungibles of American Depository Receipts (ADRs) and
Global Depository Receipts (GDRs) gives a sensible indication of the vitality and dynamism of the
Indian securities market.
1.2.3 Meaning of Capital Market
“Capital market refers to the market for rising of financial resources by the business enterprises,
firms, government, semi- government bodies, public sector units and other organization.”
OR
“A market where debt or equity securities are traded.”
A capital business segment is a business open door for securities (commitment or quality), where
business attempts (associations) and governments can raise whole deal stores. It is portrayed as a
business segment in which money is suited periods longer than a year, as the raising of transient
resources happens on various markets (e.g., the money market).The capital business part joins the
offer exchanging framework (esteem securities) and the security market (commitment).
Capital markets may be classified as:
Primary markets
Secondary markets
In primary markets, new stock or security issues are sold to investors by means of an instrument
known as endorsing.
In the secondary markets, existing securities are sold and purchased among investors or brokers,
more often than not on a securities trade, over-the-counter, or somewhere else.
Investors purchase securities in the capital markets remembering the deciding objective to isolate a
landing and procure advantage on the securities.

CHART OF CAPITAL MARKET

CAPITAL MARKET

Industrial Government Long term

Security Securities Loans
Market Market Market

Primary Market

Secondary Market
1.2.4 Types of Capital/Security Market:
The securities market can be divided in to three parts:
 Industrial securities market
 Government securities market
 Long term loans market

Industrial Security Market:

The industrial securities market consists of two complementary parts i.e. the New Issue Market, and
Secondary Market.
It is a market for industrial securities namely:
a. Equity shares or ordinary shares or common stock.
b. Preference shares
c. Debenture or Bonds.
Equity Shares:
“Equity shares represent proportionate proprietorship in the organization. Financial specialists who
own value shares of an organization are qualified for proprietorship rights, such as voting in favor of
determination of chiefs on the Board, offer in benefits of the organization, and so on”.
Financial specialists who own quality offers in an organization are called shareholders. They are
normal shares with no accreditation of benefit. Esteem offers increment most noteworthy returns
when there are high advantages.
The Indian Equity Market is more broadly known as the Indian Stock Market. The Indian quality
business sector has transformed into the third most prominent after China and Hong Kong in the
Asian region.
According to the latest report by ADB, it has a business part capitalization of about $600 billion. As
of March 2009, the business segment capitalization was around $598.3 billion which is one-tenth of
the joined valuation of the Asia region. The business segment was moderate ensuing to mid 2011 and
continued till the essential quarter of 2014.
Preference Shares:
“Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no
voting rights”
Preference shareholders do not have voting rights. They generally bear a fixed dividend, payable if
the company declares dividends.
Preference shares have different features and are accordingly available as:
Cumulative and non-cumulative preference shares
Redeemable and non-redeemable preference shares
Convertible and non-convertible preference shares
Preference shares with a combination of the above features.
BONDS:
“A bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on
the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later
date, termed maturity.”
“A bond is a formal contract to repay borrowed money with interest at fixed intervals”.
While the measure of Indian dept business part is 239.2 (US$ billion) which is 34.5% of GDP as on
2014 - 15.
Various cash related establishments like IDBI, ICICI, and IFCI, have been raising capital for their
operations by issuing of securities. These too are open in a far reaching arrangement.
These fuse Income securities, sans charge securities, Capital expands securities, Infrastructure
securities, Retirement securities et cetera…
Primary Market (New Issue Market):
“Primary market is the market for those securities which are issued first time in the market for the
public. The New Issue Market deals with new securities i.e. securities which were not previously
availably and are offered to the investing public for the first time”.
“Primary market is a market for new issues or new financial claims. Hence, it is called New Issue
Market”.
Organization brings it capital up in the essential market however:
a. Public Issue
b. Right Issue

Primary placement/subscription
open Issue is most standard framework for raising capital is offer of securities to general society by
new affiliations is called Public Issue.
Right Issue proposes, while existing relationship at initially advanced. The security to existing
shareholders on Pre–emptive bases, while affiliation need to raise extra capital is called capital is
called Right Issue.
Private circumstance envision private offer of securities to little amassing scholars.
Secondary Market:
Optional business sector is the business area for those securities which have starting now been
available in the business part and recorded on a stock exchange. The standard favorable position of
Secondary business area is securities sold and purchased reliably among examiners without
commitment of association. This business division contains all stock exchange saw by the
Government of India. The stock exchange India are coordinated under the securities contracts
(Regulation) Act, 1956.
Government Security Market:
The Government securities market (G-secs) is the greatest part of the whole deal commitment market
in India, speaking to right around 66% of the issues in the fundamental business segment and more
than four –fifths of the turnover in the discretionary business segment.
It is by and large called Gilt-Edged securities market. It is a business segment where Government
securities are traded. In India there are various sorts of Government Securities-transient and whole
deal. Whole deal securities are traded this business segment while transient securities are traded the
money market. Securities issued by the Central Government, State Government, Semi –Government
powers like city Corporation, Port Trusts et cetera. Change Trusts, State Electricity Boards, All India
and State level cash related foundations and open part undertaking are overseen around here area.
Participants in the G-secs Market:
Banks are the greatest holders of G-secs. Around one–third of the net demand and time liabilities of
the banks are deficiently in government securities showcase generally to meet statutory liquidity
necessities and to some degree for theory reason. Other examiner in G-secs consolidates normal
resources, vital and satellite traders, and trusts.
Government securities are issued in areas of RS. 100. Interest is payable half-yearly and they pass on
charge avoidances in addition. The piece of delegates in showcasing these securities is in every
practical sense outstandingly obliged and the genuine part around here division in the "business
banks" since they hold a to a great degree liberal piece of these securities to satisfy their S.L.R.
necessities.
The helper business division for these securities is incredibly thin subsequent to an extensive bit of
the institutional money related experts tend to hold these securities until advancement.
The Government securities are in numerous structures. These are
Stock certificates of inscribed stock
Promissory Notes
Bearer Bonds which can be discounted.
Government securities are sold through the Public Debt Office of the RBI while Treasury Bills are
sold through arrangements.
Government securities offer a fair soured of raising practical asset for the Government exchequer and
the excitement on these securities affects the expenses and yields around here area. In this manner
this business segment in like manner accept an essential part in cash related organization.
Long Term Loan Market:
Development banks and commercial banks play a major role in this market by supplying long term
loans to corporate customers.
Long term loans market can be classified into:
a. Term loans market
b. Mortgages market
c. Financial Guarantees market
Term Loans Market:
Term advances: An advance from a bank for a particular sum that has a predefined reimbursement
plan and a gliding loan fee. Term advances quite often develop somewhere around 1 and 10 years.
In India, numerous Term progresses: A development from a bank for a specific entirety that has a
predefined repayment arrangement and a skimming advance expense. Term propels frequently grow
some place around 1 and 10 years.
In India, various mechanical financing associations have been made by the Government both at the
national and neighborhood levels to supply whole deal and medium term advances to corporate
customers particularly furthermore by suggestion. These change banks overpower the mechanical
asset in India.
Associations like IDBI, IFCI, ICICI, and other state cash related undertakings go under this order.
These establishments meet the creating and varied whole deal propels. They moreover help in
perceiving wander opportunities, enable new specialists and reinforce modernization tries.
Mortgages Market:
The home loan market implies these centers which supply contract advance generally to individual
customers. A home credit development is a development against the security of enduring honest to
goodness like area. The move of energy for a specific determined honest to goodness to secure a
credit is called contract. These home advances may be reasonable home credit or legitimate one.
Again it may be a first charge of title deeds to properties as security while by virtue of a legal home
credit the title in the property is honestly traded to the moneylender by the borrower. Legal home
advance is less dangerous.
Correspondingly, in the essential charge, the home advances move his excitement for the specific
property to the mortgagee as security. Right when the suitably being alluded to is starting now sold
once to another leaser, it transforms into a second charge when it is thusly sold to someone else. The
mortgagee can in like manner encourage move his eagerness for the sold property to another, in such
a case; it is known as a sub contract.
The home credit business area may have fundamental business division additionally discretionary
business part. The key business part contains remarkable growth of credit and discretionary business
division has arrangements and re-offers of existing home advances at winning expenses.
In India private home advances are the most broadly perceived ones. The Housing and Urban
Development Corporation and the LIC expect a transcendent part in financing private endeavors.
Furthermore, the Land Development Banks gives poor home credits advances to the change of
landscapes, purchase of equipment et cetera. These headway banks raise cash through the offer of
debentures which are managed as trustee securities.
1.2.5 Financial Guarantees Market:
“Financial Guarantees is a non-cancelable indemnity bond guaranteeing the timely payment interest
and repayment of principal to the buyers (holders) of a debt security at a maturity date.”
An accreditations business segment is a center where record is give against the surety of an assumed
individual in the cash related circle. Surety is a consent to discharge the commitment of an outcast if
there ought to emerge an event of his default. Guarantee goes about as a security from the bank's
point of view. In case the borrower fails to repay the development, the danger falls on the shoulders
of the financier. From this time forward the guarantor must be known not the borrower and the
advance authority and he ought to have the best approach to discharge his danger.
Though there are many types of guarantees, the common forms ate:

 Performance Guarantee
 Financial Guarantee

“Performance guarantees cover the payment of earnest money, retention money, advance payments,
non-completion of contracts etc. On the other hand financial guarantees cover only financial
contracts”.
1.2.5 Capital Market Instruments
There are different capital business division instruments used for business segment trade, including
stocks, bonds, debentures, T-charges, remote exchange, modified stores, and others. These are used
by the examiners to make an advantage out of their different markets. These are called capital
business area instruments in light of the way that these are responsible for making resources for
associations, organizations, and now and again national governments.
This business part is generally called securities market in light of the way that whole deal resources
are raised through trade on commitment and quality securities. These activities may be coordinated
by both associations and governments.
Stocks and securities are the two crucial capital business area instruments used as a piece of both the
vital and discretionary markets.
There are distinctive sorts of capital business sector instruments… Like…
 DEBENTURES
 BONDS
 PREFERENCE SHARES
 EQUITY SHARES
 GOVERNMENT SECURITIES

DEBENTURES:
“A type of fixed-interest security, issued by companies (as borrowers) in return for medium and
long-term investment of funds. A debenture is evidence of the borrower's debt to the lender.”
These are issued by companies and regulated under the SEBI guidelines of June 11, 1992.
The following are types of debentures:-
Convertible debentures
Non-Convertible debentures
Zero coupon convertible notes
Zero interest fully convertible debentures
Fully convertible debentures with interest
Partly convertible debentures.

BONDS:
“A bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on
the terms of the bond, is obliged to pay interest (the coupon) and/or to repay the principal at a later
date, termed maturity.”
“A bond is a formal contract to repay borrowed money with interest at fixed intervals”.
Universal Bond Market is huge and has a normal size of about $47 trillion. The range of the US
security business area is the greatest on the planet. The US security business segment's outstanding
commitment is more than $25 trillion. While the degree of Indian dept business segment is 239.2
(US$ billion) which is 34.5% of GDP as on 2014 - 15. Indian progression cash related associations
like IDBI, ICICI, and IFCI, have been raising capital for their operations by issuing of securities.

These too are accessible in a substantial assortment. These include:

Income bonds
Tax-free bonds
Capital gains bonds
Deep discount bonds
Infrastructure bonds
Retirement bonds etc…

PREFERENCE SHARES:
“Stock whose holders are guaranteed priority in the payment of dividends but whose holders have no
voting rights”
Preference shareholders do not have voting rights. They generally bear a fixed dividend, payable if
the company declares dividends.
Preference shares have different features and are accordingly available as:
Cumulative and non-cumulative preference shares
Redeemable and non-redeemable preference shares
Convertible and non-convertible preference shares
Preference shares with a combination of the above features.

EQUITY SHARES:
“Equity shares represent proportionate proprietorship in the organization. Financial specialists who
own value shares of an organization are qualified for proprietorship rights, such as voting in favor of
determination of chiefs on the Board, offer in benefits of the organization, and so on”.
Financial specialists who own worth offers in an organization are called shareholders. They are
normal shares with no confirmation of benefit. Esteem offers increment most noteworthy returns
when there are high advantages.
The Indian Equity Market is more broadly known as the Indian Stock Market. The Indian worth
business sector has transformed into the third most noteworthy after China and Hong Kong in the
Asian territory.
According to the latest report by ADB, it has a business part capitalization of about $600 billion. As
of March 2009, the business area capitalization was around $598.3 billion which is one-tenth of the
joined valuation of the Asia district. The business area was moderate consequent to mid 2011 and
continued till the essential quarter of 2014.
GOVERNMENT SECURITIES:
Government securities (G-secs) are sovereign securities which are issued by the Reserve Bank of
India on behalf of Government of India.

The term Government Securities includes:

Central Government Securities
State Government Securities
Treasury bills
The Central Government or State Governments issue securities periodically for the purpose of
raising loans from the public.
There are two types of Government Securities –
Dated Securities: Dated Securities have a maturity period of more than one year
Treasury Bills: Treasury Bills have a development time of not exactly or up to one year. The Public
Debt Office (PDO) of the Reserve Bank of India plays out all limits concerning the issue
organization, settlement of trade, transport of premium and recuperation. But simply corporate and
institutional money related masters subscribe to government securities, solitary theorists are similarly
permitted to subscribe to these securities.
Money related authority needs to approach RBI to get government securities in physical structure.
Budgetary pros can place assets into book entry structure with Banks and diverse foundations like
NSDL, SHCIL, and NSCCL et cetera. NSDL office to buy and hold government securities is useful
in light of its reach and vault account opened for various securities can be used for holding
government securities.

Importance of Capital Market

Capital business sector is basic as it accepts an indispensable part in getting quick mechanical change
a country. The store assets are contributed profitably for financial change as a consequence of the
organizations offered by capital business part. Arrangement of investable surplus and acquisition of
expert organizations to budgetary pros and associations are two paramount activities endeavored by
the capital business part.
Capital business sector is centrality as a result of: It enables the money related masters to get their
hypothesis to their cravings which are continually hinting at change. It goes about as an association
between the people who need to extra resources and the people who need underpins and are in a
position to contribute them with prosperity and sensible return.
It gave the cash to those tries which can apply it beneficially, productively and fabricate the
aggregate national compensation. It gives proper stream of benefits and accomplishes the target
conveyance of advantages through the change of financial assets into physical assets. In this way, the
capital business division energizes capital advancement. It gives spurring powers to saving and
energizes capital course of action by offering suitable rate of eagerness as the expense of capital.
It energized buying and offering of securities at recorded expense by giving always allure to the
budgetary authorities. Capital business area supplies securities of different sorts with different
advancement and yields in not capable the theorists to grow their risk by more broad plan of
endeavor.

1.3 NEED FOR THE STUDY:

The need for this study is based on the awareness of online share trading. To know the purposes
behind the presentation of internet exchanging and their advantages. To survey the progressions that
internet exchanging carried when contrasted and the past framework. Regarding the growth and
development of various online trading companies and a study of future online trading in India. The
topic is selected to analyze the factors that affect the future EPS of a company based on
fundamentals of the company.

1.4 IMPORTANCE OF STUDY:

The study carried out under the title of “Effectiveness and analysis of Online Trading in LKP
securities” will give benefits as under:
The research will be know in which segment investors are contributing more.
The study will be useful in realizing that what elements consider most critical while selecting the
Sectors and organization under the segments.
The study will be useful in realizing that how the financial specialists are exchange Equity market.
The study will be useful in knowing reactions in regards to issues confronted by the speculators
while putting resources into Equity Market
The study will be useful in realizing that what are the motivational elements that urging to the
speculators for putting resources into Equity Market
 CHAPTER -2

2.1 REVIEW OF LITERATURE:

Vijayaraghavan R (1992) proposes that the trades ought to embrace as fast as would be prudent
uniform settlement framework so that wide value varieties crosswise over trades can be kept away
from and the common financial specialist managed security from fierce value swings. Further, he
includes that the stock trades ought to work towards a shorter settlement period, which would tone
up business sector proficiency and guarantee that installment and conveyances craftsmanship.

Rajiv Handa (1995) makes a correlation of practices in created markets and creating markets. He
says, "It is in the created markets of the West that business patterns, exchange cycles and a large
group of different elements are dealt with by PCs and determining models. This data is supported by
many years of determinedly put away information which is upgraded by nonstop arrival of
contemporary data by the recorded organizations". He encourage states that the circumstance back
home is really diverse and the organization reports are accessible six months after the year closes
which lose pertinence when they are examined

Suresh Prabhu (1995) taking an interest in a workshop composed by the Cochin Stock Exchange on
'stock-broking in the changed situation', brings up, "with a specific end goal to be8:ome fruitful in
the offer broking business, the changed situation searches for expert guidelines, utilitarian quality
sponsored by corporate right, moral conduct and a " exhaustive and all out way to deal with business
from the piece of stockbrokers". He likewise expresses that with corporatization of participations, the
individuals might give different administrations to speculators. As he would like to think, the
financier charged must be receptive to the expense. He closes his presentation with the comment that
there is enormous open door in the condition of Kerala for advancement of capital business sector
exercises

Chari P.S.U. (1995) success is the developing part of money related Services. He expresses that a
dynamic and aggressive monetary framework is basic to manage the progressing change in the basic
parts of the genuine economy. Revelation necessities and bookkeeping hones too must be in
accordance with deliberate guidelines. Zones like security examination, value exploration and
portfolio administration are quick rising Financial administrations. As indicated by him, one central
point which may maybe hinder the development of this area is the shortage of qualified and prepared
faculty. A legitimate preparing set-up which can give far reaching preparing to the mediators has
gotten to be investment.

Louis K.K. (1996), Senior Programmer, Cochin Stock Exchange, talks about the usage of screen
based exchanging at the CSE. "Our central goal is to create Cochin Stock Exchange as a cutting edge
stock trade which will help capital arrangement for mechanical advancement of India by giving
backers, national and outside Investors with reasonable, secure butt-centric proficient commercial
center. We will accomplish this through novel modernization measures, sound exchanging and
settlement frameworks, modernization of operations, straightforwardness of business, professionally
qualified and amazingly devoted group for better direction of exchanging; and guaranteeing
speculators' consideration". He closes his presentation with the comment that the CSE would turn
into a cutting edge model stock trade at standard with global partners.

Menon T.N. (1996), ii individual from the Cochin Stock Exchange talks about business sector
making. As he would see it, great business sector making is vital for idle securities, as well as for
decently dynamic and day by day exchanged securities. Such an action will require the backing of
the managing an account framework furthermore co-operation from the recorded organizations. He
facilitate calls attention to that as a result of fluctuating business sector assessments and changing
financial specialist recognitions, there will dependably be mis-match amongst purchasing and
offering requests of speculators in appreciation of any security on any given day in the business
sector as far as timing and amount. This prompts purchasing orders remaining unexecuted from one
perspective and poor liquidity for the individuals who wish to disinvest then again. It is against this
foundation that the part of effective business sector making has been broadly perceived in the main
stock trades of the world as vital middle people.

Sivakumar, K. (1996), says that stock-broking is at the intersection, with the falling estimations of
stock trade enrollment cards and the quickly declining financier levels and jobbing spreads. He feels
that the broking group, notwithstanding exemptions, is additionally not ?joked to handle the quick
changes in the earth. With the setting up of the National Stock Exchange, there has been a
noteworthy utilization of innovation for securities exchange exchanging. At the offer broking level,
the decay of local stock trades is noticeable. Singular stockbrokers, who can't adapt up to a blend of
expanded obligations and prerequisites, fall in movement level and preoccupation of business to
significant trades. He reasons that the broking group should perceive the progressions and work
towards combination second situating so as to have the capacity to exploit opportunities that lie
ahead.
Mayya M.R. (1996), cautions the stockbrokers by expressing that the business in securities exchange
is contracting with the little speculators having practically abandoned the business sector. The
disappointment of little speculators for value venture has unfavorably influenced the presence and
survival of the broking group. He watches that a portion of the approach choices taken by the powers
are in charge of the little speculators' way out of the business sector, in spite of the fact that the
strategy producers have absolutely not craved so. He k of the perspective that valuing of new issues
might be liable to strict standards as the profound disintegration in costs of new issues on a wide
front has been the absolute most essential variable which has brought on aggregate consternation
among; the little financial specialists.

Adappa Thakur (1999) proposes that all little top organizations ought to mandatorily list on little
trades while the expansive top organizations could list on the bigger trades. As posting charges are a
critical wellspring of wage for some trades, it has been proposed that a concentrated arrangement of
gathering posting expenses ought to be embraced wherein the bigger trades would gather the posting
charges from the organizations. These thusly could be conveyed among all the trades, independent of
whether or n3t the organization is recorded on alternate trades. He promote adds that little trades are
to utilize their framework for different uses, for example, an items trade.
Monetary Times (1999) reports that the Securities and Exchange Board of India has chosen to permit
stock trades to set up terminals at wherever in the nation. The move breaks the imposing business
model delighted in by the National Stock Exchange.

The Varma Committee (1999) set up by the Securities and Exchange Board of India to audit
seriously or the convey forward framework has suggested the requirement for getting stiffer
standards, particularly in the position furthest reaches of facilitate The panel guarantees that the day
by day gravely is reasonable however it involve expanded financier cost.

Rajeswari Adappa, SEBI's official chief Pradip Kar (2000) talks for 'moving settlement'. Moving
settlement lessens market chance impressively. It gives more prominent liquidity to cash on the
grounds that the financial specialist gets his or her cash/securities speedier. The development from
record period settlement to moving pilgrim Lent is a noteworthy change for any business sector. He
encourage includes that such a sort of movement will undoubtedly bring about some torment, so they
are attempting to realize changes in as effortless a path as would be prudent, as it was done on
account of dematerialization.
2.2 RESEARCH METHODOLOGY:
Definition:
“Research is careful inquiry or examination to discover new information and relationship and to
expand and to vary existing knowledge.”
Research is always done with problems and finds the answer to those problems by using scientific
method. By this we can get knowledge about any problem.

STATEMENT OF PROBLEM:
 There is a lack of awareness among people about investing in stock market. So people who
are aware of such things were found in specific areas for survey process
 Most of the peoples were comfortable with traditional system in small towns and like to trade
from their respective brokers, hence not providing their true opinions
 Some of the respondents who did not do Online trading were able to respond only some
questions
 Limitations towards online trading confined to keep the study in manageable limits.

OBJECTIVES OF STUDY:
The primary and secondary objectives of this research are:
 It is to analysis the changes in trading after the exchange shifted from offline to online
trading systems.
 It is to study the functions of LKP Securities ltd. through various departments.
 To know the online screen based trading system adopted by LKP Securities and about its
communication facilities. The appropriate configuration to set the network, which would
link LKP Securities to individual/members.
 To know about the latest and future development in the stock exchange trading system.

SAMPLING:
To fairly generalize the results of the study the sample of LKP securities LTD of Bangalore. The
sampling technique used in this study is “convenience sampling” in selecting the securities
companies with considerations of the standard status of companies and availability of relevant
financial or non-financial data from secondary sources. Sample size fifty (50) respondents of LKP
securities ltd.
RESEARCH DESIGN:
“Research design is the plan structure and strategy if investigation conceived so as obtain answers to
research question and to control variance”
A research outline is an arrangement for the conduct of formal examination and study. It is a
determination of procedures and frameworks for picking up the information necessities for dealing
with the issue. It tells the wellspring of information and methodologies for social affair the data. The
examiner and diverse structures are striven for the gathering data. In the exploration study there is
not apply to take care on the issue.
The research arrangement has for the most part ordered into three.
1. Exploratory Research
2. Descriptive Research
3. Casual Research

2. Descriptive Research:

Expressive examination, generally called measurable exploration. It gives data and information about
the populace being examined.
Clear research answers the request who, what, where, when and how. This study is great and chooses
high degree legitimate capacity to focus on the issue.
The description is used for frequencies, midpoints and other measurable counts Frequently the best
approach, before making Descriptive exploration, is to lead a survey research.
In short descriptive exploration manages everything that can be checked and contemplated.
In this report, I have utilized this Descriptive Research Design for leading review on "Effectiveness
and Analysis of Online Trading in LKP Securities"
Data Collection Method:
Data collection accumulation more often than not happens right off the bat in a change
extend, and is frequently formalized through an information gathering arrangement which regularly
contains the accompanying information gathering techniques. T
he source of data collection method is as follows.
 Primary Data
 Secondary Data
Primary Data:
Primary data is the information which implies that the information gathered straightforwardly
surprisingly. Implies information which is gathered by any analyst for any examination use. There
are diverse strategies in accumulation essential information.
Methods of collecting the primary data are:

Questionnaire method
Interviews method
Focus group interviews
Observation method
I have used Questionnaire method for the Primary data collection for the study.

Secondary Data:
Secondary data or information implies information which are gathered by somebody and utilizing the
same information for various reason by others
I too have utilized the optional information for my study like some organization assets like
broachers, sites and so on. The instructors conveyed by the administrators of particular divisions.
The leaflets and material gave by LKP Securities constrained and Data gathered through
appropriation of polls from an example. The information gathered from the magazines of the NSE,
financial times, and so forth., different books identifying with the ventures, capital business sector
and other related points.
TOOLS FOR DATA COLLECTION:
 Questionnaires
 Discussions with company officials
 Thoughts of research analysts
LIMITATIONS OF THE STUDY:
As no individual is perfect, it is unrealistic for anyone to make the best or impeccable report. Each
individual has some level of data and is affected by some wild elements inside which he/she needs to
work. Thusly, it might possible that there can be a couple of confinements in this report may in view
of my insight level or some diverse variables.
Because of the accompanying confinements the sought goal for directing Employee Satisfaction
Survey was not accomplished.
These were sure confinements of my venture if these constraints would have been dealt with
undertaking would have been taken into account its need bitterly.
 Survey was directed in 2 days because of which Employees did not get enough time to finish
the review legitimately.
 Incidents happening at the season of the overview have influenced it.
 Employees felt that the poll was too huge and excessively particular.
 Custom understanding web entryway has an impediment of giving examination of 10
reactions free of cost, so we couldn't get full fledge report of the considerable number of
workers together and subsequently we considered making our own particular report utilizing
Ms-Excel.
 Responses to open finished inquiries were not been given as the representatives were hesitant
in giving reactions due, to which we couldn't disentangle the definite conclusion of the
Employees for the greater part of the inquiries.

CHAPTER-3
3.1COMPANY PROFILE:

Since our inception in 1948, we have admirably proven ourselves as a singular touch point for
investors with varied investment needs by providing expert services across various asset classes. We
have marked our strong presence in the field of Equity and related products (Retail and
Institution),Currencies, Commodities, Debt instruments, Corporate Finance, Investment Banking,
Wealth Management, SLB and Third Party Product Distribution. LKP provide seamless services to
more than 80,000 satisfied customers with our extensive network having indelible presence across
more than 150 cities pan India, through 30 branches and over 850 Business Associates*, with Head
Office at Nariman Point, Mumbai.
LKP provides customized research and advisory services to our customers and Business Associates
through our strong research and advisory team - providing both fundamental and technical research.
Our research team has proven an excellent performance track record of over a decade. LKP has best
in the industry IT systems and network, including MPLS for trades requiring very high speed. LKP’s
trading platforms (offline and online ) are extremely user friendly and time tested with advance
charting system to meet every individual customers needs integrating 24 x 7 systems support. LKP
cutting edge robust Risk Management System across all segments of the market enables us to
provide their customers and Business Associates with required leverages to facilitate trades in a
systematic and organized manner on a real time basis.
LKP provides 24 x 7 Customer Service Platform with well-defined Turnaround Time (TAT) is
dedicated and monitored to provide customer delight. Their professional, experienced, talented and
energetic team of over 400 members pan India continuously endeavors to provide better services to
our customers and Business Associates through innovative processes across all functions of their
business.

MISSION & VISSION

LKP Securities Invest mart Limited, Corporate Member of all the Premier Stock and
Commodity Exchanges, is providing best value for money through personalized services,
committed to high standards of corporate governance, highest levels of transparency,
accountability and integrity in all activities.

REGISTRATIONS & MEMBERSHIP

  Trading and Clearing Member of NSE, BSE & MCX-SX (Capital, F&O / Debt Market).
 Depository Participant of CDSL
 Member of Commodity Exchanges - MCX, NCDEX, NSEL and ICEX (through Alpha
Commodities Private Limited)
 Member of MCX SX and NSE Currency Segment
 Category I Merchant Bankers
 Participant of Securities Borrowing and Lending Scheme
AMFI registered all India Mutual Fund Distributor

LEADING-EDGE RESEARCH AND ADVISORY TEAM

Converting research to profitable advice is where we believe the client benefits the most. LKP ensure
that every rupee deployed works the hardest it can. Their Research and Advisory team consists of
highly qualified, trained and experienced professionals.
They proactively helps you take informed investment and trading decisions and endeavors its best to
help you build healthy portfolio giving superior returns. The experts also help review investments
and portfolios periodically and provide advice suiting the client’s profile and requirements. The
advisory team caters to your every investment and trading needs, in a seamless, speedy and reliable
manner.
LKP’s Media Presence:
LKP’s research team enjoys strong presence in all modes of the media-be it print, web or television.
Their team has consistently won various stock market game shows on Business News Channel that
include CNBC’s Bulls Eye, Super-6, ET Now’s - Buy Now Sell Now and many others. Stocks
recommended by our research team are featured in prominent business broad sheets like Economic
Times, Business Standard, Mint and others. Columns written by our team is regularly featured in
business magazines such as India Today, Outlook, Forbes and others. LKP’s research team is also
invited as panel members on channels and prominent business events.
FUNDAMENTAL RESEARCH
Informed investment decision, is the key to making consistent money in equities and we help you
choose from the thousands of stocks available in the market. Their Fundamental Research team
covers various sectors, industries and companies to provide detailed analysis, ideas, updates and
reports - thereby enabling our customers earn superior returns. . Their special focus on selection of
stocks at nascent stage from mid-cap as well as small-cap companies is well known in the market.
This enables their customers to acquire multi-bagger stocks time and again.

TECHNICALS
With a wide array of products suited for a short term trader to a long term investor, LKP Advisory
offers you an opportunity to create disciplined wealth from stock market. Our experienced teams of
technical analysts spot market trends and help you participate in it.LKP also offer you various kinds
of advisory reports that are designed to suit your needs.
LKP Advisory provides technical research on a daily basis. So get subscribed to the daily tips on
stocks and start making wealth. All recommendations are sent via SMS, messenger service, emails,
through news flash on your online trading platform etc.
DERIVATIVES (FUTURES AND OPTIONS)
Successful investment strategy is simple “Let your profits run, and cut your losses quickly”. With
their derivatives advisory, you have the advantage of high leverage and thereby can participate in
making higher returns from the respective stocks. Also, using our various strategies, clients can
mitigate their risks to a large extent.
LKP focus in derivatives ranges from Plain Vanilla Option Strategies to complex Option strategies.
The core team of LKP Advisory can customize option strategies based on your portfolio queries.
Derivatives reports also keep you updated with detailed information and in-depth analysis of the
F&O segment. Their product ranges from Daily Derivatives View, special reports such as Rollover
reports, position building and much more.
MANAGEMENT TEAM
The Company is managed by a team of highly qualified and experienced professionals from the
finance industry across the country. Know more about them:

Mr. M. V. Doshi – Executive Chairman

Mr. Vineet N. Suchanti – Director
Mr. Pratik Doshi – Director
Mr. Sayanta Basu – Director
Mr. Hari Padmanabhan – Director
Mr. Milan S. Bhise - Director

COMPETITIVE STRENGTH
  Regional management (regional hub and spoke topology) for retail operation
 Large and diverse distribution network
 Strong track record of high growth and profitability
 Strong risk management system
 Well established brand

EXISTING BUSINESS NETWORKS

LKP Securities Ltd has 9 Zonal offices and 1,000 plus Franchise Location
Head Office: Mumbai, Maharashtra
Branch Office: Zonal Office:
 New Delhi, Delhi Ludhiana, Punjab
 Jaipur, Rajasthan Ahmadabad, Gujarat
 Noida, Uttar Pradesh Pune, Maharashtra
 Indore, Madhya Pradesh Bangalore, Karnataka
 Patna, Bihar Coimbatore, Tamil Nadu
 Bhubaneswar, Orissa Chennai, Tamil Nadu
 Hyderabad, Andhra Pradesh Kolkata, West Bengal
 Cochin, Kerala
•Equties & •Wealth
Commodities Management
•Mutual funds •Financial
•Currency Advisory
•Insurance •Financing
•Loans
Retail Affulent

Corporate Institutional

•Investment •Institutional
Banking Equalities
•Corporate Debt •Deravitives
 Third Party
Primary Market Secoundary Market Research
Products

Specialized
IPO'S Equity Life Insurance Derivativesmtrading
tools

Wholesale Debt Currency General Insurance Improved Research

Market

Investment Banking Commodity Mutual Fund Leveraged Products

FD'S

Real Estate

LKP has strong relationships with over 475 Institutions & Corporates
LKP Services
LKP includes….executed deals for the abo
has successfully

 Online research

 Real-time equity and F&O quotes

 Intra-day calls & News flash

 Intra-day & historical charts with technical tools

 Portfolio tracker

 DP services

 Electronic Contract

 LKP BOSS - E-broking & back-office software

 Live Stock SMS Alerts

 IPO (New Issue) distribution

 Life Insurance distribution

 Real estate

 State-of-the-art technology support

 Margin Funding

 Exclusive PCG desk

Advisory

 Real-time market information with News updates

 Investment Advisory services

Support

 24x7 Web-enabled Back Office and help line no

 Centralized Help Desk

 Dedicated Relationship Managers

 Quality Research

 Wide range of daily, weekly and special Research reports with in-depth analysis on markets.

 Wide array of products including Technical, Fundamental, Derivatives, Macroeconomic and

Mutual Fund research undertaken by Expert Sector Analysts with professional industry
experience.

Specialized Products

7 Picks for the Quarter:

A thematic report is released in every quarter containing seven picks which meet rigorous selection
criteria. The stocks which are back by strong fundamentals and are on verge of giving a strong
technical move is selected. These selected stocks are suggested for a period of three months but can
also be held for longer time frames. Since a balanced mix of midcap as well as large cap stocks are
selected, market participants get a lucrative risk reward from their investments.
Cash Future Arbitrage:
This strategy aims to benefit from difference between prices of stocks and their futures. This is a
hedged strategy which involves buying a stock and simultaneously selling its future. Since this is an
arbitrage strategy it carries negligible risk.
LKP MIST:
The strategy aims to benefit from the variance between Bank Nifty and Nifty. It involves buying and
selling index options. One of the factors that make this strategy quite lucrative is its ability to profit
from trending market irrespective of direction.
Result/Event Based Strategies:
These strategies are applied before the advent of quarterly results or major events like RBI Policy,
Union Budget, etc. The stocks/indices showing increased activity in derivatives segments or showing
increased signs of a strong technical move are selected. These include a basket of futures and options
strategies which cater to different risk appetite of market participants. However, all of these
strategies carry limited risk which saves the market participants from significant losses in case the
outcome of event goes against the one desired.
 Third Party Products

In order to provide a gamut of products and make LKP truly a one stop window for all your
investment needs. LKP has tied up with various well known brands in the industry to provide best
quality of products and services. Thus enabling and guiding our clients to invest in various avenues
such as Real Estate, Insurance, IPO’s, Bonds, etc.
 Partnered with Bajaj Allianz for Life Insurance

 Partnered with TATA AIG and Bajaj Allianz for general Insurance

 MFSS platform for MF

 Offline MF support

 Active co-ordination for all the IPO’s, Bonds, NCD’s

 Channel Partners with Real estate developers like Lodha, Nirmal Lifestyle, Oberoi,
Rustomjee, Kalpataru, India Bulls, Kanakia, etc.

Secure Infrastructure
We at LKP give top priority to your security and hence our IT department has deployed the latest
technology available making our system secure and robust against any kind of attack. With almost
zero downtime and easy access , our clients are able to transfer funds, view their statements, and
make transactions with utmost confidence.
 Online Back Office Access to view all transaction reports/DP holdings etc.

 21 Banks for online funds transfer

 SSL secure servers

 32/64 bit encryption

 Online Trading Platform TradeSmart@LKP-Blue*

LKP Blue* Snapshot

 Invest in the Equities, Currencies, Commodities, Mutual Funds and subscribe to IPO’s

 Feature rich application with a ‘light’ bandwidth requirement

 Real-time pre-order risk management and surveillance

 Other features:

 Streaming quotes, instant order confirmation, multiple market watches, alerts

 Access to ledger, MTM profit/loss statement

 Charting options and technical analysis tools

 Highly customizable view

 Live research and news updates

 LKP Trade Smart Application for Android devices

In our continuous efforts to give our clients the best of experience, even when they away from their
computer. This Android based application has been made with an intuitive user interface keeping in
mind the ease of use and practical functionality.
Features available currently:
 Notification Messages

 Quote search

 Personalized Market watch

 Predefined Market watch

 Index watch

 Intraday charts

 Market Movers

…and many more to be introduced soon

 LKP ELITE

‘Elite’ is an exclusive division of LKP, serving Private Client Group (PCG) with high profile, Ultra
HNI and HNI Clients such as you. As an Elite member, you can enjoy a whole bouquet of Privileged
Services specially customized to meet your financial goals. Our Elite members are provided with
personalized attention and avail below mentioned privileges.
 Dedicated Relationship Manager

 Dedicated Product Advisor

 LKP’s Special Elite Research Report

 Priority Research Calls

 Periodic discussion with product specialist on your portfolio

 24X7 Online Help Desk with least TAT

 Invitation for Special Seminars on various products

 Online terminal at your place

 Online Back Office Access to view all transaction reports/DP holdings etc.

Partner with us

When a business associate joins the LKP Group, they join an elite group located pan India and
become a part of rich heritage of over 64 years. We at LKP provide complete support to our business
associates to ensure their success.
LKP Business Associate Model greatly emphasizes
on:

 Focus on growth of Business Associate Network

 Advisory and Research Support

 Business Development Support

 Marketing and Branding Support

 Superior Technology

 Easy Access to Senior Management & Key Personnel

 24x7 Online Customer Help Desk

 Dedicated Franchisee Help Desk

 Easy access to back office data

CHAPTER-4

DATA ANALYSIS AND INTERPRETATION:

1) Employment Status
a. Employed
b. Not employed

TABLE-1
Particulars Respondents Percentage
Employed 42 84
Not employed 8 16
Total 50 100

Analysis: From the above table 84% of the investors are employed and the remaining 16%
of the investors are not employed
GRAPH -1

Employee status

Employed
Not employed

Interpretation:
From the above graph the majority of the investors who are investing in stocks are employed i.e.
84% and the other16% of the investors are not employed. In this some are retired employees so they
mentioned as not employed and in the employed category some are having their own business, some
are working in MNC companies.
 2) Are you interested to invest in Stock Market?
a. Yes
b. No

TABLE-2
Particulars Respondents Percentage

Yes 47 94
No 3 6
Total 50 100

Analysis: From the above table 94% of the investors are interested to invest in stock market and 6%
of the investors are not interested.

GRAPH -2

Invest in Stock Market

Yes
No

Interpretation:
From the above graph the majority of the investors are interested to invest in stock market i.e. 94%
and the remaining 6% of the investors are not interested in investing in stock market. Because of
good return they choose to invest in stocks other than investing in other sectors like infrastructure,
fuel and gas, gold and silver etc.
 3) What is the Criteria for selecting LKP?
a. Company/Brand
b. Services
c. Brokerage
d. Basket of Products
e. Brand Loyalty

TABLE-3
Particulars Respondents Percentage

Company/Brand 5 10

Services 15 30

Brokerage 20 40

Basket of Products 7 14

Brand Loyalty 3 6

Total 50 100

Analysis: According to the above table10% of Investors(5), were selected LKP on the basis of
Company/Brand,30% 0f investors (15), were selected LKP on basis of Services,40% 0f investors
(20), were selected LKP on basis of Brokerage,14% 0f investors (7), were selected LKP on basis of
Basket of products,6% 0f investors (3), were selected LKP on basis of Brand loyalty
 GRAPH -3

Selecting LKP
45

40

35

30

25
Company/Brand
20 Services
15 Brokerage

10 Basket of Products
Brand Loyalty
5

Interpretation:
According to the above chart we can see that the majority of the investors were selected the LKP on
the basis of brokerage because they thought that they may get more brokerage and then based on
service and the least they selected the LKP on the basis of brand loyalty. The products that which has
with the LKP are limited so the company try to increase the products to trade and some of the people
were selected the company on the bases of brand because that LKP has some brand image as a stock
broking company.
 4) Please rate the company mentioned below based on your experience
a. Poor
b. Fair
c. Good
d. Excellent

TABLE-4
Particulars Respondents Percentage

Poor 0 0

Fair 19 38

Good 23 46

Excellent 8 16

Total 50 100

Analysis: From the above table None of the Investor has rated the company as poor,38% of the
Investors (19), were rated the company as Fair,46% of the Investors (23), were rated the company as
Good and16% of the Investors (8), were rated the company as Excellent.
 GRAPH -4

Rating the company

50

45

40

35

30 Poor

25 Fair
Good
20
Excellent
15

10

0
Poor Fair Good Excellent

Interpretation:
According to the above graph we can see that majority of the investors were rated the company as
good i.e 46% and no one of the investor were rated the company as poor. They rated based the
company services that provided to the customers. The company has no more drawbacks so the
investors are not rated the company has poor. Some investors rated the company as fair because the
performance and the technology that are used by the company and educating the customers about the
updates in the trading. To some extent of the investors they rated the company as excellent because
of the bonding with the company.
 5) From past how many years you have been trading online?
a. More than 5 years
b. 3-5 years
c. 1-3 years
d. Less than 1 year

TABLE-5
Particulars Respondents Percentage

More than 5 years 5 10

3-5 years 12 24

1-3 years 24 48

Less than 1 year 9 18

Total 50 100

Analysis: From the above table 10% of Investors (5), were in Online trading since more than 5
years,24% of Investors (12), were in Online trading since 3-5 years,48% of Investors (24), were in
Online trading since 1-3 years and 18% of Investors (9), were in Online trading since less than 1
years
 GRAPH -5

Investors time horizon on Online Trading

60

50

40

More than 5 years

30 3-5 years
1-3 years
20 Less than 1 year

10

0
More than 5 3-5 years 1-3 years Less than 1 year
years

Interpretation:
From the above graph that majority of the investors were in online trading since 1-3 years i.e 48%
and 10% of the investors were in online trading since more than five years. From this we can note
that the importance for online trading has increasing in now a days. The investors who are investing
less than one year are newly entered into the stock market and less than 3 years are having some
knowledge about the stocks and the investors who are investing from past 5 years having more
knowledge about the stocks and the investors who are investing from more than five years they are
the experts in the online trading.
 6) How often do you trade?
a. Everyday
b. Once/Twice/thrice in a week
c. Once/twice/thrice in a month
d. Quarterly
e. Annually

TABLE-6
Particulars Respondents Percentage

Everyday 34 68

Once/Twice/thrice in a week 9 18

Once/Twice/thrice in a 7 14
month

Quarterly 0 0

Annually 0 0

Total 50 100

Analysis: From the above table we can say that 68% of Investors (34), were trade every day,18%
of Investors (9), were trade Once/Twice/thrice in a Week,14% of Investors (7), were trade
Once/Twice/thrice in a month,0% of Investors (0), were trade Quarterly and0% of Investors (0),
were trade Annually
 GRAPH -6

Investors Time Horizon for Trading

80

70

60

50 Everyday
40
Once/Twice/thrice in a
30 week

20 Once/Twice/thrice in
amonth
10 Quarterly

0
Annually

Interpretation:
From the above graph we can note that the investor’s time horizon for trading is that the majority of
the investors will trade every day i.e 68% and none of the investors are trading quarterly and
annually. Some of the investors are found of trading so they use to trade every and some have no
time so when they get time they will go for trading. Some of the investors like employees are used
to trade in the stock twice or trice in a week because they have no time to trade daily. Some will
trade twice or trice in a month because they use to trade when they come to know about the decrease
in the price of the stock and they sell them when they get the price high.
 7) If you need to put your funds, in which investment option will give the best returns?
a. Equity Share
b. Mutual Funds
c. Bonds
d. Fixed Deposits

TABLE-7
Particulars Respondents Percentage

Equity Share 27 54

Mutual Funds 12 24

Bonds 9 18

Fixed Deposits 2 4

Total 50 100

Analysis: From the above table 54% of Investors (27), are investing their savings in Equity Share
for best return,24% of Investors (12), are investing their savings in Mutual Funds for best return,18%
of Investors (9), are investing their savings in Bonds for best return and4% of Investors (2), are
investing their savings in Fixed Deposits for best return
 GRAPH -7

Investors are investing in various

Investment option
60

50

40
Equity Share

30 Mutual Funds
Bonds
20 Fixed Deposits

10

0
Equity Share Mutual Funds Bonds Fixed Deposits

Interpretation:
From the above graph the majority of investors are investing their savings in equity share for best
return i.e 54% and 4% of the investors are investing their savings in fixed deposits for best return.
They thought that from shares they thought that they will get more return, to some extent the has
investors has choose mutual funds because it has a good return if they invest in mutual funds. In
investing in bonds that bonds are the evidence that to pay debt in periodically it has some drawbacks
and investing in the fixed deposits they will get a small amount of return so a small amount of
investors go with the fixed deposits.
 8) Which factors motivates you to invest in Shares?
a. Return
b. Liquidity
c. Safety
d. Capital Appreciation

TABLE-8
Particulars Respondents Percentage

Return 29 58

Liquidity 13 26

Safety 5 10

Capital Appreciation 3 6

Total 50 100

Analysis: From the above table 58% 0f investors (29), are having the motivating factor as return on
invest in share market,26% 0f investors (13), are having the motivating factor as Liquidity on invest
in share market,10% 0f investors (5), are having the motivating factor as Safety on invest in share
market and6% 0f investors (3), are having the motivating factor as capital appreciation on invest in
share market.
 GRAPH -8

Motivating factors for Investors to invest

in share market
70

60

50

40 Return
Liquidity
30
Safety
Capital Appreciation
20

10

0
Return Liquidity Safety Capital
Appreciation

Interpretation:
From the above graph the motivating factor for investors to invest in share market is return i.e 58%
and 6% of investors having the motivating factor to invest is capital appreciation. Many of the
investors has the motivating factor as return because if the investors invest in the shares they have
huge return so they go with return some others will go with the liquidity so that the share can sell at
any cost of time and they can make the money, some are having the motivating factor as safety
because they think that their savings will be safe in the form of shares and they are having the
maximum return from them and some has capital appreciation because they can rise their capital by
investing in stock market.
 9) How much percentage of your income you invest in Stocks?
a. Less than 10%
b. 10%-20%
c. 20%-25%
d. More than 25%

TABLE-9
Particulars Respondents Percentage

Less than 10% 15 30

10%-20% 24 48

20%-25% 7 14

More than 25% 4 8

Total 50 100

Analysis: From the above table 30% of Investors (15), i.e less than 10% of the investors Income
investing in Stock Market,48% of Investors (24), i.e 10%-20% of the investors Income investing in
Stock Market, 14% of Investors (7), i.e less than 20%-25% of the investors Income investing in
Stock Market and8% of Investors (4), i.e more than 25% of the investors Income investing in Stock
Market.
 GRAPH -9

Percentage of income Investors are

Investing in Stocks
60

50

40
Less than 10%

30 10%-20%
20%-25%

20 More than 25%

10

0
Less than 10% 10%-20% 20%-25% More than 25%

Interpretation:
From the above graph 10-20% of the investors income were investing in stocks i.e 48% and 8%
(more than 25%) of the investors income were invested in stocks. The investors were investing
depends on their income. Many of the investors are getting a small amount of income so they are
investing a less amount from their savings. Some are having a good salary so they are investing 10-
20 percentage of their savings in the stocks some are having their own business and having a good
profit they are investing 20-25 percentage their savings in share market and who are born with silver
spoon are investing more than 25 percent of their savings in the stocks.
 10) What is the time period of your invests in Stock Market?
a. Less than 3 Months
b. 3 to 6 Months
c. 6 to 12 Months
d. More than 12 Months

TABLE-10
Particulars Respondents Percentage

Less than 3 Months 18 36

3 to 6 Months 11 22

6 to 12 Months 12 24

More than 12 Months 9 18

Total 50 100

Analysis: From the above table the Investors , are investing in stock market for period of less than
3 months,22% of Investors , are investing in stock market for period of 3 to 6 months,24% of
Investors , are investing in stock market for period of 6 to 12 months and18% of Investors , are
investing in stock market for period of more than 12 months.
 GRAPH -10

Investors time period fot investing in

Stock Market
40

35

30

25
Less than 3 Months
20 3 to 6 Months

15 6 to 12 Months
More than 12 Months
10

0
Less than 3 3 to 6 Months 6 to 12 More than 12
Months Months Months

Interpretation:
From the above graph we can note that the majority of the investors time period for investing in
stock market is less than 3 months i.e 36% and 18% of the investors time period is more than 12
months that they are willing to have good return. Based on the price of the share the investors were
investing. The investors who has the time horizon on online as less than one year that they having
found of trading so they used to trade online every day so that make trading depend on the
fluctuating the price of the stock they may having less return and having less than 3 months they may
have certain amount of return and 3-6 years having more amount of return and who are having 6-12
they will have a lot of return and having more than 12 years they will get the extraordinary return
from the stock.
 11) What is the rate of return expected by you from Stock Market in a year?

a. 5% – 10 %
b. 10% – 20 %
c. 20% –30%
d. 30% above

TABLE-11
Particulars Respondents Percentage

5% – 10 % 13 26

10% – 20 % 21 42

20% –30% 10 20

30% above 6 12

Total 50 100

Analysis: From the above table 26% of Investors (13), are excepting 5%-10% return from Stock
Market,42% of Investors (21), are excepting 10%-20% return from Stock Market,20% of Investors
(10), are excepting 20%-30% return from Stock Market and12% of Investors (6), are excepting 30%
above return from Stock Market.
 GRAPH -11

rate of Return Excepted by investor

45

40

35

30
5% – 10 %
25
10% – 20 %
20 20% –30%
30% above
15

10

0
5% – 10 % 10% – 20 % 20% –30% 30% above

Interpretation:
From the above graph we can see that majority of the investors were expecting 10%-20% of their
investment and only 6% of the investors were expecting more than 30% of their investment.
Depending on their investment the investors are expecting the return. The investors who are
investing a less amount of savings they are excepting 5-10 percent of the return, investors who are
investing in a reputed company or sector they are excepting 10-20 of their investment, investors
investing more amount they are excepting 20-30 percent of their investment and the investors who
are investing more and more they are excepting more then 30 percent of their investment because
they bought the share of a good company or sectors with high prices.
 12) Are you fulfilled by the present execution of the Stock Market as far as expected
return?
a. Fully Satisfied
b. Satisfied
c. Neutral
d. Unsatisfied

TABLE-12
Particulars Respondents Percentage

Fully Satisfied 7 14

Satisfied 26 52

Neutral 14 28

Unsatisfied 3 6

Total 50 100

Analysis: From the above table 14% of the Investors (7), are Fully Satisfied from current execution
of Stock business sector,52% of Investors (26), are Satisfied from Stock Market ,28% of Investors
(14), are Neutral with current execution of Stock business sector and6% of Investors (3), are
Unsatisfied from Stock business sector
 GRAPH -12

Investors satisfaction from Stock

Market
45

40

35

30
Fully Satisfied
25
Satisfied
20 Neutral

15 Unsatisfied

10

0
Fully Satisfied Satisfied Neutral Unsatisfied

Interpretation:
From the above graph we can see that the majority of the investors are Satisfied from Stock Market
and a less number of investors were unsatisfied with the stock markets. So it means that investing in
stock market gives a good return hence many of the investors are happy with stock market so they
are fully satisfied, Some investors are satisfied from getting a minimum amount of return, some are
natural because the price of the shares are fluctuating and some are unsatisfied because they were got
loss by investing because of lack of knowledge that in what company or sector to invest.
 13) Who advised you to invest in Stock Market?
a. Friends
b. Relatives
c. Advisers
d. Media
e. Research Report
f. Magazines

TABLE-13
Particulars Respondents Percentage

Friends 9 18

Relatives 4 8

Advisers 14 28

Media 21 42

Research Report 0 0

Magazines 2 4

Total 50 100

Analysis: From the above table 18% of the Investors (9), are motivated by Friends to enter into the
Stock market,8% of the Investors (4), are motivated by Relatives to enter into the Stock market,28%
of the Investors (14), are motivated by Advisers to enter into the Stock market,42% of the Investors
(21), are motivated by Media to enter into the Stock market,0% of the Investors (0), are motivated by
Research Report to enter into the Stock market and4% of the Investors (8), are motivated by
Magazines to enter into the Stock market
 GRAPH -13

Investors Referance for enter into stock

market
45

40

35

30 Friends

25 Relatives
Advisers
20
Media
15
Research Report
10 Magazines

0
Friends Relatives Advisers Media Research Magazines
Report

Interpretation:
From the above graph we can see that the majority of the investors were motivated by the media and
next with the advisors that to enter into stock market and least that is 0% of the investors were
motivated by the research reports to enter into the stock market. Majority of the investors are getting
the information through media and advisors .Some of the investors are blindly depending on the
advisors, relatives and friends because they are regularly discuss about the stocks and in what sectors
and company they have to invest to get a good return. And a very some of the investors are getting
the information through magazines and research reports that who are regularly go with the
magazines.
 14) Which Factors do you consider most critical while selecting the Sectors?

a. Market Trend
b. Profitability
c. Economic Condition
d. Industry Condition
e. Government Policy

TABLE-14
Particulars Respondents Percentage

Market Trend 16 32

Profitability 9 18

Economic Condition 14 28

Industry Condition 7 14

Government Policy 4 8

Total 50 100

Analysis: From the above table 32% of Investors (16), have considered Market Trend as a most
essential component while selecting the Sector , 18% of Investors (9), have considered Profitability
as a most essential component while selecting the Sector, 28% of Investors (14), have considered
Economic Condition as a most critical element while selecting the Sector , 14% of Investors (7),
have considered Industry Condition as a most imperative component while selecting the Sector and
8% of Investors (16), have considered Government Policy as a most vital component while selecting
the Sector.
 GRAPH -14

Factors Consider by Investors while

selecting sectors
35

30

25

20
Market Trend
15 Profitability
10 Economic Condition
Industry Condition
5
Government Policy
0

Interpretation:
From the above graph we can see that the majority of the investors have considered market trend as a
most component while selecting the sector and a minimum number of investors have considered
industry condition as most imperative component while selecting the sector. Most of the investors
were consider the market trend that which sector or company having boom in present situation, some
are consider with the profits of the company because of that only they can get a good return, some
are look over the economic condition of the company because o the economic condition of the
company is good then only they invest, some are go for the condition of the industry that the
company is able to the profits or not and they look over whether they having the government policy
or not depending on this factors the investors will invest.
 15) Which is the Sector do you prefer the most?
a. Oil & Gas Sector
b. Infrastructure Sector
c. Banking Sector
d. Automobile Sector
e. IT Sector

TABLE-15
Particulars Respondents Percentage

Oil & Gas Sector 15 30

Infrastructure Sector 7 14

Banking Sector 5 10

Automobile Sector 9 18

IT Sector 14 28

Total 50 100

Analysis: From the above table 30% of Investors (15), are preferred Oil & Gas Sector to Invest,14%
of Investors (7), are preferred Infrastructure Sector to Invest,10% of Investors (5), are preferred
Banking Sector to Invest,18% of Investors (9), are preferred Automobile Sector to Invest and28% of
Investors (14), are preferred IT Sector to Invest.
 GRAPH -15

Prefered Sector
35

30

25

20
Oil & Gas Sector
15 Infrastructure Sector

10 Banking Sector
Automobile Sector
5
IT Sector
0

Interpretation:
According to the above chart we can see that majority of the investors are preferred oil and gas sector
to invest and in automobile sector and a minimum number of investors are preferred to invest in
banking sector. Now a days oil and gas sectors has a great importance because the trend this going
with this sector and that to IT sectors are also having a great response. After having the make in India
programme the automobile sectors are having a good boom in the market. As developing the country
the infrastructure and the banking sectors are developing rapidly so investing in these sectors will get
a good return.
 16) Mention the most vital variables for selecting an organization of your decision?
a. Earnings Per Share
b. Dividend
c. Broker’s advise
d. Market capitalization
e. Performance of company
f. P.E. Ratio

TABLE-16
Particulars Respondents Percentage

Earnings Per Share 9 18

Dividend 8 16

Broker’s advise 7 14

Market capitalization 5 10

Performance of company 9 18

P.E. Ratio 12 24

Total 50 100

Analysis: From the above table 18% of the Investors (9), were viewed as Earnings per Share as a
most essential element to choose an organization,16% of the Investors (8), were viewed as Dividend
as a most critical component to choose an organization,14% of the Investors (7), were viewed as
Broker's recommendation as a most essential element to choose an organization,10% of the Investors
(5), were viewed as Market capitalization as a most vital variable to choose an organization and 18%
of the Investors (9), were viewed as Performance of organization as a most imperative variable to
choose an organization and24% of the Investors (12), were viewed as P.E. ratio as a most critical
element to choose an organization.
 GRAPH -16

Factors affecting to Investors for selecting

company
30

25

20

15 Earnings Per Share

Dividend
10 Broker’s advise

5 Market capitalization
Performance of company
0 P.E. Ratio

Interpretation:
From the above graph we can see that the majority of the investors were consider PE ratio as a factor
while selecting the company and a least number of investors were consider market capitalization as a
factor while selecting the company. Many of the investors were prefer the price earnings ratio while
selecting the company for investing and some will look over the earnings per share if the share value
is going high, and if the dividend is good the investors go with them and many of the investors who
have less knowledge about the share market they will blindly follow the company if the market
capitalization is being high and will follow the suggestions of the brokers advisor.
 17) How would you describe yourself as an investor?
a. Professional
b. Full-time
c. Part-time
d. Casual

TABLE-17
Particulars Respondents Percentage

Professional 4 8

Full-time 21 42

Part-time 16 32

Casual 9 18

Total 50 100

Analysis: From the above table 8% of Investors (4), are described them self’s as Professional in
Stock Market,42% of Investors (21), are described them self’s as Full-Time in Stock Market,32% of
Investors (16), are described them self’s as Part-Time in Stock Market and18% of Investors (9), are
described them self’s as Casual in Stock Market.
 GRAPH -17

Describing Investor
45

40

35

30
Professional
25
Full-time
20 Part-time

15 Casual

10

0
Professional Full-time Part-time Casual

Interpretation:
From the above graph we can note that 42% i.e majority of the investors were describing them self’s
as full time investors and only to some extent of the investors were describing them self’s as
professionals because they have a huge knowledge about the share market and shares and evening
doing the online trading from many years. Many of the investors are described them self’s as Full
time because they used to trade every day i.e how were fully in the stock market. Part time investors
will trade when they get the time because they may involved in many other works and the other
investors who are considering as casual they will go with trading casually when they want to do trade
they will go for it.
 18) What is your level of experience?
a. Novice
b. Some Limited Experience
c. Very good
d. Expert

TABLE-18
Particulars Respondents Percentage

Novice 6 12

Some Limited Experience 8 16

Very good 22 44

Expert 14 28

Total 50 100

Analysis: From the above table 12% of Investors (6), has experience level is Novice,16% of
Investors (8), has experience level is Some limited experience,44% of Investors (22), has experience
level is Very Good and28% of Investors (14), has experience level is Expert.
 GRAPH -18

Experence level of Investors

50

45

40

35

30
Novice
25 Some Limited Experience
20 Very good
Expert
15

10

0
Novice Some Limited Very good Expert
Experience

Interpretation:
From the above graph we can note that 44% of the investors having their level of experience is very
good so that they have a nice knowledge about the trading on stocks and some others were saying
that they have some limited knowledge and to some extent Novice. To some extent of the investors
were treated them as experts that they have an excellent knowledge about the trading and how to
invest and where to invest, many of them described themselves as very good they may have a good
knowledge about the online trading they can estimate that where they can get a good return. Some of
the investors were having a limited experience because they are new for the online trading while
some of the investors have no voice because they have no enough knowledge about the market and
will blindly follow the suggestions of the brokers and they invest some times it may leads loss for the
investor.
 19) Which type of analysis you prefer before investing in a company?
a. Fundamental Analysis (Income Statements etc.)
b. Technical Analysis (Charts etc.)
c. Both

TABLE-19
Particulars Respondents Percentage

Fundamental Analysis (Income 31 62

Statements etc.)

Technical Analysis (Charts etc.) 14 28

Both 5 10

Total 50 100

Analysis: From the above table 62% of Investors (31), were prefer Fundamental Analysis (Income
Statements etc.),28% of investors (14), were prefer Technical Analysis (Charts etc.) and 10% of
Investors (50), were prefers Both.
 GRAPH -19

Type of Analysis prefers

70

60

50

40 Fundamental Analysis
(Income Statements etc.)

30 Technical Analysis (Charts

etc.)
Both
20

10

0
Fundamental Technical Analysis Both
Analysis (Income (Charts etc.)
Statements etc.)

Interpretation:
From the above graph we can note that majority of the investors preferred Fundamental Analysis
and to some extent the investors’ preferred Technical analysis and some others preferred both the
Analysis. Because it depends on the analysist that which type of analysis should be considered many
were prefer fundamental analysis and some are go for technical analysis and a few of them uses both
the analysis while preferring the company or the sector in which they want to invest.
 20) What type of investments you have made in the past years?
a. Stocks
b. Bonds
c. Mutual Funds
d. Gold or Silver
e. Other

TABLE-20
Particulars Respondents Percentage

Stocks 23 46

Bonds 12 24

Mutual Funds 9 18

Gold or Silver 5 10

Other 1 2

Total 50 100

Analysis: From the above table 46% of Investors (23), are made past investments in stocks,24% of
Investors (12), are made past investments in Bonds,18% of Investors (9), are made past investments
in Mutual Funds,10% of Investors (5), are made past investments in Gold or Silver,2% of Investors
(1), are made past investments in others
 GRAPH -20

Investment made in Past

50

45

40

35
Stocks
30
Bonds
25
Mutual Funds
20 Gold or Silver

15 Other

10

0
Stocks Bonds Mutual Funds Gold or Silver Other

Interpretation:
From the above graph we can note that the majority of the investors were making their past
investment in stocks then they come to bonds, mutual funds, gold and others. We can say that the
investors were most favor to stocks because investing in stocks will get a good return so from past
they are investing in stocks. Some were go with the bonds and they will have planning to get the
interest from which they have invest in intervals of time so they preferred the bonds in past.
Investing in mutual funds that they can get a good amount of interest so they go with the mutual
funds, many investors at present day they are investing in gold and silver because the gold has a
great demand in the market and a few others were invested in other sectors that which they fell of
getting a good return.
 21) What is the Present Portfolio Mix?
a. Stocks
b. Bonds
c. Commodity Trading
d. Derivatives
e. Other

TABLE-21
Particulars Respondents Percentage

Stocks 19 38

Bonds 14 28

Commodity Trading 6 12

Derivatives 9 18

Other 2 4

Total 50 100

Analysis: From the above table 38% of Investors (19), have present portfolio mix in Stocks,28% of
Investors (14), have present portfolio mix in Bonds,12% of Investors (6), have present portfolio mix
in Commodity Trading,18% of Investors (9), have present portfolio mix in Derivatives and4% of
Investors (2), have present portfolio mix in Others.
 GRAPH -21

Present Portfolio Mix

40

35

30

25
Stocks
Bonds
20
Commodity Trading
15 Derivatives
Other
10

0
Stocks Bonds Commodity Derivatives Other
Trading

Interpretation:
From the above graph we can note that 38% of the present portfolio mix of the investors are in stocks
and only 45 of the investors has the present portfolio mix from others .The investors are mainly uses
the stocks as portfolio mix then others it has a great importance in present days after stocks many
will prefer to have bonds that they can get a good return from them and with having the derivatives
are also can except a good return. To some extent are going with the commodity trading as portfolio
mix and a few are preferring the others from stocks, bonds , derivatives etc.
 22) What is the Size of your account?
a. 10k-50k
b. 50k-100k
c. 100k-500k
d. More than 500k

TABLE-22
Particulars Respondents Percentage

10k-50k 12 24

50k-100k 21 42

100k-500k 11 22

More than 500k 6 12

Total 50 100

Analysis: From the above table 24% of Investors (12), has the Account Size of 10k-50k,42% of
Investors (21), has the Account Size of 50k-100k,22% of Investors (11), has the Account Size of
100k-500k and12% of Investors (6), has the Account Size of more than500k.
 GRAPH -22

Size of Account
45

40

35

30
10k-50k
25
50k-100k
20 100k-500k

15 More than 500k

10

0
10k-50k 50k-100k 100k-500k More than 500k

Interpretation:
From the above graph we can note that 42% of the investors have the size of 50k-100k and 12% of
the investors have the size of their trade is more than 500k.Very less number of investors has big size
of account. The size of the account depends on the income of the investors many are working they
will have a small size of account are having 10k to 50k and who are having a medium amount of
income they are having account of 50 to 100k and who are having a good amount of income they are
having the size of five lakhs and who are having big businesses and earning a lot from that they are
having more than the account of five lakhs.
 23) Trades per day in a month?
a. 1 - 10/month
b. 10 - 20/month
c. 20 - 30/month
d. 30 and more

TABLE-23
Particulars Respondents Percentage

1 - 10/month 4 8

10 - 20/month 9 18

20 - 30/month 11 22

30 and more 26 52

Total 50 100

Analysis: From the above table 8% of Investors (4) make 1 – 10 times per month,18% of Investors
(9), make 10 – 20 times per month,22% of Investors (11), make 20 – 30 days per month and52% of
Investors (26) make 30 days per month.
 GRAPH -23

Trades for Month

60

50

40 1 - 10/month

10 - 20/month
30

20 - 30/month
20
30 and more

10

0
1 - 10/month 10 - 20/month 20 - 30/month 30 and more

Interpretation:
According to the above chart we can see that52% of the investors was trading more than 30 trades
per month i.e majority of the investors are doing the trade every day and only 8% of the investors
were doing 1-10 trades per month. Many of the investors are doing the trade more than 30 times in a
month that they are trading I online regularly and few are trading more than 20 times means that they
are trading weekly and the investors who are trading one to twenty times that they are trading in the
online when they come to know that a particular share value is going high or with the suggestions
given by the advisors.
 24) What sources do you rely on for information regarding investments?
a. Bulletin Boards
b. Online News
c. TV
d. Company Websites
e. Paid Subscriptions
f. Other

TABLE-24
Particulars Respondents Percentage

Bulletin Boards 6 12

Online News 9 18

TV 22 44

Company Websites 8 16

Paid Subscriptions 3 6

Other 2 4

Total 50 100

Analysis: From the above table 12% of Investors (6), uses the source of information through
Bulletin Boards,18% of Investors (9), uses the source of information through Online News,44% of
Investors (22), uses the source of information through TV,16% of Investors (8), uses the source of
information through Company Websites,6% of Investors (3), uses the source of information through
Paid Subscriptions and4% of Investors (2), uses the source of information through Others.
 GRAPH -24

Source of Information
50
45
40
35
30
Bulletin Boards
25
Online News
20
TV
15
Company Websites
10
Paid Subscriptions
5
Other
0

Interpretation:
According to the above graph we can see that 44% of the investors were getting information
regarding investment from TV and online news and only 4% of the investors were relying
information regarding investment through other sources. Now-a-days the majority of the investors
prefer TV and online news because everyone were using the internet and watching TV so majority of
the information will get through them. To some extent of the will uses the bulletins boards for having
the information regarding the stocks and some using the paid subscriptions for having the
information and a few were using the other sources to having the information regarding the
information about the stock market.
 25) Average number of different securities held?
a. 1 -5 at any given time
b. 6 -15
c. 16 – 25
d. More than 25

TABLE-25
Particulars Respondents Percentage

1 -5 at any given time 36 72

6 --15 6 12

16 – 25 5 10

More than 25 3 6

Total 50 100

Analysis: From the above table 72% of the Investors (36), held 1 -5 securities at any given
time,72% of the Investors (36), held 6-15 securities at any given time,72% of the Investors (36), held
6 -25 securities at any given time and72% of the Investors (36), held more than 25 securities.
 GRAPH -25

Different Securities held

80

70

60

50
1 -5 at any given time
40 6 to 15
16 – 25
30
More than 25
20

10

0
1 -5 at any 6 to 15 16 – 25 More than 25
given time

Interpretation:
According to the above graph we can see that 72% of the investor held 1-5 different securities with
them and only 6% of the investors held more than 25 different securities which were held by them.
So majority of the investors are investing in limited number of selected securities. Many are having a
few securities with them because it is better to have a few high quality securities more than owning a
bulk with them and some were having different securities with them sometimes it mat leads to have a
loss that having the less quality securities and having those securities in a bulk so according to me
having more different securities is not a effective thing it is better to have a few securities with them
that which they can get a good return from which they held so, I prefer them to have a few high
quality securities with them.
CHAPTER-5

5.1 FINDINGS:
 Online exchanging is the new thought in offer markets. In India, Online exchanging is still at
its most punctual early stages stage.
 Online exchanging has made it easy to trade the offer exchanging framework as now people
can exchange while sitting at their home.
 Presently securities trade is easily accessible by the all inclusive community.
 There are a couple issues while doing the exchange through on the web. Real issue
confronted by online merchant is that the financial specialists are imperial to their
intermediaries; they rely on the proposals given by their representatives.
 Another significant issue is that the general individuals don't have full learning concerning
web exchanging. They believe that it's difficult to exchange themselves, as a wrong passage
made by them, can bring them enormous loss.
 Nevertheless to say that internet exchanging has the splendid future as the rate of the
exchange done through web exchanging is expanding step by step.
 From the survey I found that huge people are placing assets into value advertise in view of
Earn High Return and Hedge the Risk by putting their genuine degree of pay in Equity
Market.
 Here, the greater part of people are trade esteem market as a theory and they are contributes
for one to three months.
 The financial specialist who are contributing for long extend more than year they are
unquestionably worthwhile in quality business sector.
 Majority part people are expecting something more from the quality business sector. Along
these lines, finally some are satisfied and some are not satisfy with worth business sector.
 Major financial specialists favor toward the Oil and gas part as a first on the reason of Market
pattern, Profitability, industry condition and monetary condition furthermore crucial segment.
 While selecting the Sector, financial specialists have considered Price Earnings Ratio,
Earning per Share and Dividend as a most basic component while selecting an association
under which these segments are chosen.
5.2 SUGGESTIONS:
The company should come up with more and more innovative features in their web portal:
 We came to know about most important factor about the product with the assistance of
variable investigation, so we should go for change the item as indicated by the client need.
 We should also focus upon the value added services. Generally company does claim that if
you will get these benefits but company doesn’t provide the services here. So a benefit
dependably does make a difference when we discuss online trading. Company should also
look for the problem which customer generally face when they do trading.
 The customers should educate regularly regarding the new technologies and techniques of
trading online and also other relevant information.
 The company should look after to develop more safe and secure ways of transacting business
online.
 The company should make maximum effort to detect fraud cases and minimize them.
SUGGESTIONS FOR INVESTOR:
 There is no need to own more number of stocks, it is better to go with few high quality
stocks.
 One should not emotionally involve in their stocks return as the stock market is always
fluctuating.
 At the right time the investor have to buy the stocks of very best company to get bog (more
than expected) money.
 Always prefer to pick the shares from the leading industry or sector
 A reduction in cost on decreased volume shows no significant selling.
 Buy the stock with low and sell high and buy high and sell at higher value.
5.3 CONCLUSION:
The online trading is developing with fast pace with the rising level of training among the clients.
The other element being that the Indian financial specialists now a day's needs to give themselves in
exchanging as opposed to relying on other go between. They additionally consider the components
like efficient in doing the online exchanges, accommodation and so forth. Albeit some individuals
feel that stock exchanging is not secure but rather the general population doing the exchanging
online is cheerful about the expanding security worry among the organizations.
The year 2012 has not been so useful for the share trading system, and the sensex and Nifty has been
plunging and influencing the business contrarily for these organizations yet the same pattern turned
around in 2015-2016. This is because of the way that at these circumstances individuals doesn’t like
to open the DMAT and Trading accounts. So the organizations need to lessen their record opening
charges to pull in more clients. Additionally individuals exchange less in the bearish business sector
and the organization's benefits against financiers, zero equalization account, waiving a/c opening
expense and AMC and so on. As the web infiltration is developing in India this business holds a
huge potential for development.
Presently if the current organization will need to catch the business sector they will need to search
for the development in their products as well as service mix.
The mantra for achievement in the present circumstance will educating the clients about the
advantages of stock exchanging trading and the amount of ROI that can be produced through it.
BIBLOGRAPHY:

@. BOOKS:
Gordon & Natrajan, “Financial Markets And Services” Second Revised Edition Reprint, Himalaya
Publishing House, 2005.
Investment Management – V.A. AVADHANI
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March 31, 1992, p.2.

Rajiv Handa, "Getting to Grips with Equity Research" Economic Times - Investors Guide,
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Chari P.S.U. "Emerging Role of Financial Services", The Hindu, Thimvananthapuram, December,19,
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Lousis, K.K. "Cochin On-line Trading", The Stock Journal, Kochi, June 1996, p.29.

Menon T.N. "The Importance of Market Making in the Securities Market", The Stock Journal,Kochi,
August 1996, p.41.7

Sivakumar.K. "Stock Broking in Limbo, but the future beckons", Business Line,
Thimvananthapuram, September 29, 191'6, p.4
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Econon~ic Times. Mumbai, Vo1.39, No.] 88, September 8, 1999, p.3.

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"Varma Panel backs daily badla system", Economic Times, Mumbai. November 30, 1999, p.3.
@. Websites:
www.bmawc.com
www.nseinda.com
www.bseindia.com
www.moneycontrol.com
www.investopedia.com
www.wikipedia.com
www.autherstream.com
www.myrisis.com

@. NEWS PAPER:
ECONOMICS TIMES
TIMES OF INDIA
BUSINESS LINE

@. OTHER:
NCFM – Capital Market Dealers Module
Other Magazines for Capitals Markets