INTRODUCTION

Online trading refers to buying and selling securities via the Internet or other electronic means such a wireless access, touch-tone telephones, and other new technologies. Technology is revolutionizing every field of human endeavor and activity. The rapid growth in number, volume and value of securities in the Indian capital market expose the limitation of handling and dealing in securities in physical /Paper mode; the shortcomings of the market became manifest in terms of bad deliveries ,delays in transfer and irregular settlement etc. Primary market is also referred to as New Issue Market. Primary market operations include new issues of shares by new and existing companies, further and right issues to existing shareholders, public offers, and issue of debt instruments such as debentures, bonds, etc. The number of listed companies rose from 2265 in 1980 to over Rs. 6800 at the end of 1998 the daily turnover accordingly shot up Rs. 25 crores in 1979-80 to about Rs 260 crores in 1994-95. The number of shareholders increased from 10 lakhs in 198 to 1.5 crores in 1998. The number of share holder and investors in mutual funds has also risen sharply from about 2 million to over 40 million during this period , rendering this nation to the position of having the second largest investor population in the world next only to USA. It eliminates the risk of bad deliveries, which in turn eliminates all costs and wastage of time associated with follow up for rectification. This reduction in risk associated with bad delivery has lead to reduction in Brokerage to the extent of 0.5% by quite a few brokerage firms. Screen-based trading facilitates the investor to keep a track of the transaction from the source to the end .He can punch in the orders and see the results at the bottom of the screen. Thus, one can get instant trade confirmation. The 1

investor should familiarize himself with order entry screen and the software provided to him. Any mistake made while inputting an order can cause him significant financial loss. Moreover, he will be responsible for any losses caused by lack of knowledge and/or experience. when an order is placed and executed, he becomes liable for payment of the securities. Active trading is dependent upon a number of specialized software systems. Disruptions or failure of any electronic systems utilized may lead the investor with an open position at which time losses can occur.

Definition of Online Trading: The increasingly popular activity of buying and selling securities over the internet, or to a lesser extent, through a broker's proprietary software.

Process of Online Trading:

Step-1: Those investors interested in doing the trading over Internet system, that is, NEAT - ISX (NSE), should approach the brokers and register with the Stock Broker. Step-2: After registration, the broker will provide to them a login name, password and a personal identification number (PIN). Step-3: Actual placement of an order, Using the place order window as under can then place an order: a) First by entering the symbol and series of stock and other parameters such as quantity and price of the scrip on the place order window. 2

b) Second, fill in the symbol, series and the default quantity. Step-4: It is the process of review. Thus, the investor has to review the order placed by clicking the review option. He may also re-set to clear the values. Step-5: After the review has been satisfactory; the order has to be sent by clicking on the send option. Step-6: The investor will receive an "Order Confirmation" 'message along with the order number and the value of the order. Step- 7: In case the order is rejected by the Broker or the Stock Exchange for certain reasons such as invalid price limit, an appropriate message will appear at the bottom of the screen. At present, a time lag of about ten seconds is there in executing the trade. Step-8: It is regarding charging payment, for which there are different modes. Some brokers will take some advance payment from the, investors and will fix their trading limits. When the trade is executed, the broker will ask the investor for transfer of funds by the investor to his account.

NEED FOR THE STUDY: Stock exchange is the integral part of the capital market. It is the most perfect type of market for securities whether of govt. Semi govt. bodies or other public bodies as for shares and debentures issued by the joint stock enterprise.

Stock exchange provides liquidity to the listed companies they give quotations to the listed companies and help in trading raising funds from the market stock. Exchange provides ready Marketability and unequal facility for the transfer of ownership of stock shares and securities. Stock market in India is more than century old and has functioning

effectively through the medium of recognized stock exchanges the stock market which is the integral part of the capital has a major impact on the functioning of the economy in turn the monsoon and agriculture industrial growth and performance of the corporate sector in particular reflection the fundamental in the economy would influenced the some of capital stock market and since the capital market in playing a major role in the Indian economy from the past several years there is an essential need to study the tone of the capital market in India.

OBJECTIVE OF THE STUDY: The primary objective is to analyze the changes in trading after the Exchange Shifted from outcry to online trading system. The secondary objective is to study the functions of the NET WORTH STOCK BROKING LTD and through Various departments.

To know the on-line screen based

trading system adopted by NET

WORTH STOCK BROKING LTD and about its communication facilities . The appropriate configuration to set the network which

would link the NET WORTH STOCK BROKING LTD to individual/members.

To know about the latest and future development in the stock exchange Trading system . Clearly defining each and every term of the stock exchange trading procedure . To study investors reasons to trade online where investors have control over their account can make their own decision for their actions, and are independent.

SCOPE OF THE STUDY: The scope of the study analyzes us to know the how the online trading activities are carried out in NET WORTH STOCK BROKING LTD. The trading on stock exchange in India used to take place to open outcry without use of information technology for immediate matching or recording of trades. This was time consuming and inefficient with imposed limits on trading volumes and efficiency. In order to provide efficiency liquidity and transparency energy introduced a national wide online fully automated Screen Based Trading System (SBTS). Where a member can punch into the computer quantizes of securities and the price at which he likes to transact are the transact means exhausted as soon as it finds a matching sales are buy order from a counter party. A SBTS electronically matched orders on a strict price time priority and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved operational efficiency. It allows faster in corporation of price sensitive information. In to prevailing price that increases the information of efficiency of markets. It enables market participants respective of geographical location to trade with one another simultaneously. Improving the depth and liquidity of the market it provides to anonymity by accepting orders, big or small the members without revealing there identity that providing equal access to everybody it also provides a perfect audit price it helps to resolve disputes by logging in the trade execution process in entity. This diverted liquidity from other exchange and in the every first year of the operation. NSE become the leading stock exchange in the company, impacting the fortune of other exchange and forecasting them adopt SBTS also.

SIGNIFICANCE OF THE STUDY: NET WORTH STOCK BROKING LTD. is one of Indias leading financial services providers with strong presence in South India. It was incorporated in 1994 and over the years it acquired a name of trust through Equity and Commodity Broking businesses. In 2007, Baring India Private Equity Fund II Ltd., a leading private equity firm of international repute acquired a majority stake in the Company. outcry system of trading
NET WORTH STOCK BROKING LTD has developed a computerized

screen of

replace the conventional manual system trading computers are all the eligible members. The representatives of M/S Tata Eixsi (India) LTD have taken up the installation of computers regarding earthling ups etc. The software installed in VECTOR (Vector Engine for Centralized Trading & online Reporting) a product developed by CMC to implement a fully automated trade execution system. A lot of information is online so they can keep up-to-date with what is happening in the trading world.

METHODOLOGY:
Research methodology will help us to know what are the research methods, techniques used in fulfilling the study conducted in NET WORTH STOCK BROKING LTD. It also helps in giving scientific justification of the problems, which are all methods are relevant and which are not relevant, why particular research method is appropriate for the study. Research Design: Research design stands for advance planning of the methods adopted for collecting the relevant data and techniques to be used in their analysis, keeping in view the objective of the research and the availability of staff, time and money. Sampling Design: A sampling design is a procedure the researcher would adopt in selecting the items for the sample. In fulfilling my project I have selected 100 employees randomly from NET WORTH STOCK BROKING LTD to find out the Online Trading in the organization and how it does brings bad or good impact for both Investors and the organization. In random sampling each and every item in the population have equal chance of inclusion in the sample and each one of the possible samples has the same probability of being selected.

Type of Data Collection:

The collection of data can be classified into 2 categories Primary Data Secondary Data 8

Primary Data: Primary data was collected through observing and interviewing employees of NET WORTH STOCK BROKING LTD and through questionnaire method. Secondary Data: The secondary data has been collected from NET WORTH STOCK BROKING LTDs website. Structured questionnaire: Structured questionnaire is a printed list of questions to be filled by the respondents. The structured questions should be short as possible and simple to understand. The questionnaire was designed such that it helps to elicit the accurate information. Observation Method- This method is that subjective bias is eliminated. This is independent of respondents willingness to respond. Interview Method- this method of data collection involves of oral-verbal stimuli and reply in terms of oral-verbal response. In fulfilling this project in NET WORTH STOCK BROKING LTD personal interview method is used i.e. direct personal investigation.

LIMITATIONS OF THE STUDY: The study is confined to online trading procedure only. Exhaustive analysis, problem of listing , management of trade , SEBI guidelines relating to are not covered due to limited time to keep the study in manageable limits. Analysis has been done with in a limited boundary or area where the information is lacking behind from other investors when compared to entire geographical area. Getting appropriate response from the respondents. Getting appointment from the investors. The study is limited to the curriculum. The study is limited to current time period. The study is purely for academic purpose.

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INDUSTRY PROFILE
STOCK EXCHANGE:
Stocks (Shares, equity) are traded in stock exchange. India has two big stock exchanges (Bombay Stock Exchange - BSE and National Stock Exchange - NSE) and few small exchanges like Jaipur Stock Exchange etc. Click here to see the list of Stock Exchanges in India Investor can trade stocks in any of the stock exchange in India. Stock Broker: Investor requires a Stock Broker to buy and sell shares in stock exchanges (BSE, NSE etc.). Stock Broker is registered member of stock exchange. A stockbroker can register to one or more stock exchanges. Only stockbrokers can directly buy and sell shares in Stock Market. An investor must contact a stockbroker to trade stocks. Broker charge commissions (brokerages) for their service. Brokerage is usually a percent of total amount of trade and varies from broker to broker. Stock Trading: Traditionally stock trading is done through stockbrokers, personally or through telephones. As number of people trading in stock market increase enormously in last few years, some issues like location constrains, busy phone lines, miss communication etc start growing in stock broker offices. Information technology (Stock Market Software) helps stock brokers in solving these problems with Online Stock Trading.

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Online Stock Market Trading is an Internet based stock trading facility. Investor can trade shares through a website without any manual intervention from Stock Broker. In this case these Online Stock Trading companies are stockbroker for the investor. They are registered with one or more Stock Exchanges. Mostly Online Trading Websites in India trades in BSE and NSE. There are two different type of trading environments available for online equity trading. Installable software based Stock Trading Terminals. These trading environments require software to be installed on investors computer. This software is provided by the stockbroker. This softwares require high speed internet connection. These kind of trading terminals are used by high volume intraday equity traders. Below is the detail comparison of major Online Stock Market Trading websites in India. This comparison is to help investor to take calculated decision while searching for new trading portal. 1. ICICI Direct 2. Share khan 3. India bulls 4. 5Paisa 5. Motilal Oswal Securities 6. HDFC Securities 7. Reliance Money 8. IDBI Paisa Builder 9. Religare 10. Geojit 11. Networth Stock Broking 12. Kotak Securities 13. Standard Chartered-STCI Capital Markets Ltd 14. Angel Trade 15. HSBC Invest Direct

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DEFINITION OF STOCK EXCHANGE: Stock exchange means anybody or individuals whether incorporated or not, constituted for the purpose of assisting, regulating or controlling the business of buying, selling or dealing in securities. It is an association of member brokers for the purpose of self-regulation and protecting the interests of its members. It can operate only if it is recognized by the Government under the securities contracts (regulation) Act, 1956. The recognition is granted under section 3 of the Act by the central government, Ministry of Finance. HISTORY OF STOCK EXCHANGE: The only stock exchanges operating in the 19 th century were those of Bombay set up in 1875 and Ahmadabad set up in 1894. These were organized as voluntary non profit-making association of brokers to regulate and protect their interests. Before the control on securities trading became central subject under the constitution in 1950, it was a state subject and the Bombay securities contracts (control) Act of 1925 used to regulate trading in securities. Under this act, the Bombay stock exchange was recognized in 1927 and Ahmadabad in 1937. During the war boom, a number of stock exchanges were organized in Bombay, Ahmadabad and other centers, but they were not recognized. Soon after it became a central subject, central legislation was proposed and a committee headed by A.D. Gorwala went into the bill for securities regulation. On the basis of the committees recommendations and public discussion, the securities contracts (regulation) Act became law in 1956. FUNCTIONS OF STOCK EXCHANGE: Maintains activity training Fixation of prices 13

 Ensures safe and fare dealings Aids in financing the industry Dissemination of information Performance end users Self regulating organization BYLAWS Besides the above act, the securities contracts (regulation) rules were also made in 1975 to regulative certain matters of trading on the stock exchanges. There are also bylaws of the exchanges, which are concerned with the following subjects. Opening / closing of the stock exchanges, timing of trading, regulation of blank transfers, regulation of Badla or carryover business, control of the settlement and other activities of the stock exchange, fixating of margin, fixation of market prices or making up prices, regulation of taravani business (jobbing), etc., regulation of brokers trading, brokerage chargers, trading rules on the exchange, arbitrage and settlement of disputes, settlement and clearing of the trading etc. REGULATION OF STOCK EXCHANGES The securities contracts (regulation) act is the basis for operations of the stock exchanges in India. No exchange can operate legally without the government permission or recognition. Stock exchanges are given monopoly in certain areas under section 19 of the above Act to ensure that the control and regulation are facilitated. Recognition can be granted to a stock exchange provided certain conditions are satisfied and the necessary information is supplied to the government. Recognition can also be withdrawn, if necessary. Where there are no stock exchanges, the government licenses some of the brokers to perform the functions of a stock exchange in its absence.

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SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI). SEBI was set up as an autonomous regulatory authority by the government of India in 1988 to protect the interests of investors in securities and to promote the development of, and to regulate the securities market and for matter connected therewith or incidental thereto. It is empowered by two acts namely the SEBI Act, 1992 and the securities contract (regulation) Act, 1956 to perform the function of protecting investors rights and regulating the capital markets.

INDIAN STOCK MARKET:

HISTORICAL BACKGROUND: The stock market provides a market place for the purchase and sale of securities evidencing the ownership of business property or of a public or business debt . The origin of the stock market therefore goes back to the time when securities representing this property or promises to pay were the first issued and made transferable from one person to another . The earliest record of securities dealing in India were loan transactions of East India company , way back in the eighteenth century . By 1830s there was a perceptible increase in the volume of business , not only in loan but also in corporate stock and shares . In 1850, the companies Act introducing interest limited liability was enacted and with it commenced the era of modern joint stock enterprise in India . The Act also served to generate securities . From 1850 to 1865, the history of brokers and their rise to power in Bombay is the history of Premchand Roychand . Brokerage business attracted many people into the field and by 1860, the number of brokers had increased to 60. investor in corporate

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An important early in the development of the stock market in India was the formation of Native share and s tock Brokers Association in Bombay, in 1857, the precursor of the present day Bombay stock Exchange. Infact, the oldest stock exchange in Asia is the BSE having been established in 1875,while the Tokyo stock Exchange was founded in 1878. The setting up of BSE was followed by the formation of associations in Ahmadabad (1894) , Calcutta (1908)and Madras (1937).

NATIONAL STOCK EXCHANGE:

The NSE was incorporated in November 1992 with an equity capital of Rs.25 crores, the International Securities Consultancy (ISC) of Hong Kong has helped in setting up NSE. ISC has prepared the detailed business plans and installation of hardware and software system. The Promotion for NSE were financial institutions, insurance companies, banks and SEBI capital market Ltd., infrastructure leasing and financial services and stock holding corporation ltd. It has been set up to strengthen the move towards professionalization of the capital market as well as provide nationwide securities trading facilities to investors. NSE is not an exchange in the traditional sense where brokers own and manage the exchange. A two tier administrative set up involving a company board and a governing aboard of the exchange is envisaged. NSE is a national market for shares PSU bonds, debentures and government securities since infrastructure and trading facilities are provided. NSE-NIFTY: The NSE on April 22, 1996 launched a new equity Index. The NSE -50. The new index, which replaced the existing NSE-100 index is expected to serve as an 16

appropriate Index foe the new segment of futures and options. Nifty means National Index for Fifty Stocks. The NSE50 comprises 50 companies that represent 20 broad Industry groups with an aggregate market capitalization of around Rs 1,70,000 crores. All companies includes in the Index have a market capitalizations in excess of Rs. 400 crores each and should have traded for 85% of trading days at an impact cost of less than 1.5% The base period for the index is the close of prices on Nov 3, 1995, which make one year of completions of operations of NSEs capitals markets segments . The base values of the Index has been set at 1000. NSE--MIDCAP INDEX: The NSE midcap Index or the Junior Nifty comprises 50 stocks that represent 21abroad Industry groups and will provide proper representation of the madcap segments of the Indian capitals Market. All stocks in the index should market capitalizations of greater than Rs. 200 corers and should have traded 85% of the trading days at an impact cost of less 2.5%. The base period for the index is Nov 4, 1996, which signifies two years for completion of operations of the capitals market segment of the operations. The values of the Index has been set at 1000. Average daily turnover of the present scenario 258212 (lakhs) and number of averages daily trades 2160(lakhs). Ex: Satyam computers.

BOMBAY STOCK EXCHANGE:

The stock exchange, Mumbai, population known as BSE was established in 1875 as The Native share and stock brokers association , as a voluntary nonprofit making association . It has an evolved over the years into its present status as the 17

premier stock exchange in the Asia, even older than the Tokyo stock Exchange, which was founded in 1878. The exchange , while providing an efficient and transparent market for trading in securities, uphold the interest of the investors and ensure redressed of their grievances, whether against the companies or its own member brokers. It also strives to educate and enlighten the investors by making available necessary information inputs and conducting investor education programmes. A governing board comprising of 9 elected directors, 2 SEBI nominees, 7 public representatives and an executive directors is the apex body ,which decides the policies and regulates the affairs of the exchange. The executive director as the chief executive officer is responsible for the day today administration of the exchange. The average daily turnover of the exchange during the year 2000-01 (April March) was Rs. 3984.19 crores and average number of daily trades 5.69 lakhs. How ever the average daily turn over of the exchange during the year 200102 has declined to Rs. 1244.10 crores and number of average daily trades during the period to 5.17 lakhs . The average daily turnover of the exchange during the year 2002-2003 declined and number of average daily trades during the period is also decreased. The Ban on all deferral product like BLESS AND ALBM in the Indian capital market by SEBI with effect from July 2, 2001 , abolition of account period settlements, introduction of compulsory rolling settlement in all script traded on the exchange with effect from DEC 31 , 2001 ,etc., have adversely impacted the liquidity and consequently there is a considerable decline in the daily turn over

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at the exchange . The average daily turn over of the exchange is 110363 (lakhs) and number of average daily trades 1057 (lakhs). BSE INDICES:

present scenario

In order to enable the market participants, analysts etc., to track the various ups introduced in and downs in the Indian an equity stock stock index market , the exchange has 1986 called BSE--SENSEX that in the of 30

subsequently became the barometer of the moment of the share prices Indian stock market . It is a Market Capitalization Weighted index components and

stocks representing a sample of large ,well established and leading

companies. The base year of is1978-79. The Sensex is widely report in both domestic International market through print as well as electronic media . Sensex calculated using a market capitalization weighted method. As per this methodology. The level of the index reflects the total market value of all 30component Stock from different industries related to particular base period . The total market value of a company is determined by multiplying the price of its stock by the number of Shares outstanding . Statisticians call an index of set of combined variable (such as price and number of shares ) a composite Index . An indexed easier to work with and track over a time . It is much based on Indexed values than one based on actual of the well-knowing indices are constructed weighted method. In practice , the daily calculation of SENSEX the aggregate adjustments. market value of the 30 companies is done by dividing using number is used to represent the result of this calculation in order to make the value easier to graph a chart value world over majority Market capitalization

in the Index comparable

over a period or time and if the reference point for the entire Index maintenance

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SENSEX is widely used to describe the mood in the Indian stock markets . Base year average is changed as per the formula new base year average = old base year exchanges average *(new market value / old market value, there are24 stock under the securities Contract (regulation) Act,1956.At recognized

present there are 19 are working).

NAME OF THE STOCK EXCHANGE Bombay Stocks Exchange Ahmadabad Share and stock brokers association Calcutta stock exchange association Ltd Delhi Stock exchange association Ltd Madras stock exchange association Ltd Indore stock broker association Ltd Bangloore stock exchange Hyderabad stock exchange Cochin stock exchange Pune stock exchange ,U.P stock exchange Ludhiana stock exchange Jaipur stock exchange Ltd Gauhati stock exchange Ltd Manglore stock exchange Maghad stock exchange Ltd, Patna Bhuvaneshwar stock exchange association Ltd Over the counter exchange of India , Bombay 20

YEAR 1875 1957 1957 1957 1957 1958 1963 1943 1978 1982 1983 1983-84 1984 1985 1986 1989 1989

Saurastra Kuth stock exchange Ltd Vsdodard stock exchange Ltd Coimbatore stock exchange Ltd The Meerut stock exchange National stock exchange Intergrated stock exchange

1990 1991 1991 1991 1991 1999

GROWTH OF STOCK EXCHANGE IN INDIA: The stock market activities in India were relatively on a low key during the beginning of the decade of 80s securities mainly because of the allies regime till 1947. Afterwards, the Government of India concentrated more on administration and less on development and pursuit of the philosophy of public sector dominating the economy. Stock Exchange was placed under the exclusive regulation of the Government through proclamation in 1930s of the constitution of India. During the 1950s & 1960s Indian economy was dominated by the public sector, which was consider as the major vehicle for economic and industrial development. This trend has changed since mid 80s with liberalization of Government policies and greater freedom given to private sector. This policy of progressively deregulating the economy led to the emerge of stock market as a major instrument of finance for industry and trade. India can boast of being one of the oldest stock markets in Asia. The Bombay Stock exchange (BSE) was founded in 1875, while the London Stock Exchange was established in 1773.

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PRESENT SCENARIO: The decade of 80s witnessed the emergence of stock market as major source of finance for trade and industry . The process of liberalization and deregulation has led to a pace of growth almost unparalleled in the history of any nation. Average annual capital mobilization from market, which used to about Rs.70 crores in the 60s and about Rs. 90 crores in the 70s increased manifold during the 80s with the amount raised in 1989-90 being of the order of Rs.647.3 crores. The number of listed companies rose from 2265 in 1980 to over Rs. 680 the end of 1998 the daily turnover accordingly shot up Rs. 25 crores in 1979-80 to about Rs 260 crores in 1994-9 . The number of shareholders increased from 10 lakhs in 198 to 1.5 crore in 1998. The number of share holder and investors in mutual funds has also risen sharply from about 2 million to over 40 million during this period , rendering this nation to the position of having the second largest investor population in the world next only to USA. At present, there are 19 Stock Exchange recognized under securities Contracts (Regulation) Act, 1956. These recognized stock exchanges mobilize and direct the flow of saving of the general public into productive channels of investment.

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COMPANY PROFILE

Incorporated in 1993, Net worth Stock Broking Limited (NSBL) has been a listed company at Bombay Stock Exchange (BSE), Mumbai since 1995. A Member, at the National Stock Exchange of India (NSE) and Bombay Stock Exchange, Mumbai (BSE) on the Capital Market and Derivatives (Futures & Options) segment, NSBL has been traditionally servicing Institutional clients and in the recent past has forayed into retail broking, establishing branches across the country. Presence is being marked in the Middle East, Europe and the United States too, as part of our attempts to cater to global markets. We are a Depository participant at Central Depository Services India (CDSL) with plans to become one at National Securities Depository (NSDL) by the end of this quarter. We have our customers participating in the booming commodities markets with our membership at the Multi Commodity Exchange of India (MCX) and National Commodity & Derivatives Exchange (NCDEX), through Networth Stock.Com Ltd. With its strong support and business units of research, distribution & advisory, NSBL aims to become a one-stop solution to the broking and investment needs of its clients, globally. Strong team of professionals experienced and qualified pool of human resources drawn from top financial service & broking houses form the backbone of our sizeable infrastructure. Highly technology oriented, the companys scalability of

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operations and the highest level of service standards has ensured rapid growth in the number of locations & the clients serviced in a very short span of time. Networthians, as each one of our 400 plus and ever growing team members are addressed, is a dedicated team motivated to continuously progress by imbibing the best of global practices, Indian sing such practices, and to constantly evolve a comprehensive suite of products & services trying to meet every financial / investment need of the clients. NSE CM and Derivatives Segment SEBI Regn. 1NB230638639 & 1NF230638639 BSE CM and Derivatives Segment SEBI Regn. 1NB010638634 & PMS SEBI Regn. 1NP000001371 CDSL DP SEBI Regn. IN-DP-CDSL 251-2004 Commodities Trading: MCX -10585 and NCDEX - 00011 (through Networth Stock.Com Ltd.)

Hyderabad (Somajiguda) 401, Dega Towers, 4th Floor, Raj Bhavan Road, Somajiguda Hyderabad - 500 082 Andhra Pradesh.
Phone Nos.: 040-55560708, 55562256, and 30994985 Mumbai (MF Division) 49, Au Chambers, 4th Floor, Tamarind Lane, Fort Mumbai - 400 001 Maharashtra. Phone Nos.: 022- 22650253

Mumbai (Registered Office)

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5, Church gate House, 2nd Floor, 32/ 34 Veer Narirnan Road, Fort Mumbai - 400 001 Maharashtra. Phone No. 022-22850428

The Networth connectivity with 107 branches and growing

r a

c h

Online Stock Trading Platforms: Networth is an online platform packed with products & services. Networthdirect provides clients access to: 1. e-transact (Website based trading) 25

This is the platform where customers can trade online in various financial instruments. It is conveniently integrated with multiple payment gateways and depository services to provide a seamless transaction capability. It's a Single Customized Integrated Screen The screen is customizable with ability to choose specific stocks from specific exchanges [BSE / NSE (Cash / F&O)]. Viewing price fluctuation and trading on multiple exchanges from the same platform with real time streaming quotes. Live news and top gainers/losers update on the same screen. 3 in 1 consolidation - Integration of client's bank account, trading account and demat account leads to easy, paperless and high speed execution of transactions. No need of physical cheques / transfer instruction slips. Instant Order/Trade Confirmations - Instant execution of the entire trading transaction, from logging on to the execution and settlement of pay in/payout of funds to order/trade delivery. Online Portfolio Tracker - Consolidated Portfolio that helps in maintaining & tracking on a real time basis and it gets updated every 5 seconds. Online Back Office Enables you to get multiple transactional detailed reports viz. financial statements, net position, settlement bills, delivery reports, transaction statement, contract note etc. Security - 128-bit encryption to ensure the highest level of safety to protect all online information and SSL Certification for secure transaction web pages. 2. My Networth This provides access to your accounts and statements online and with 24X7 availability. You can view your portfolio across all assets and get a consolidated view. How to open account with Networth?

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There are 3 simple ways to open an account with Networth.

Call at one of the below number and ask to open an account with them. Toll Free No.: 1800-220-223 Other No: 022-30641700

Visit one of their nearest branch and you will find representative to help you out: Click on this link http://www.networthdirect.com/Branches/BranchNetwork.aspx to find the branch closest to you.They have 156 branches across the India.

Mail them your details at contact@networthstock.com, and their relationship manager will contact you.

Features of Networth 1. Call & Trade [1800 3000 0333]: A Toll Free No. accessible from any landline or mobile phone in India. As an introductory offer there are no extra charges for availing this service. User can instantly place / modify /cancel orders, and check status of orders which they have placed. 2. Research-based advice: They generate reports like India Market Report, Pivot Points, Result preview and updates, Company reports, IPO analysis etc to enable investment decisions. 3. Transparency: Networth provides an audit trail from order placement, to clearing and settlement, and finally ending with a credit into DP account. 4. Efficient Grievance handling: Client queries and grievance redressal module Response to all queries within 1hr. If within 36 hrs a client's query is not addressed, an intimation is made to the management. Exclusive set of professionals taking care of client grievances and clients can view the status of their grievances online. 5. One Statement all Investments: Investments will be mapped into a single account statement. The entire portfolio is mark to market. Now in one statement you can view your entire portfolio and also keep a tab on your Networth.

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6. SMS Updates: Investor will be provided with regular updates on SMS regarding their ledger balance, credit of bonus and dividend and all other trading related details. They also send research tips to advice their investor. Advantages of Networth 1. Trader can make off-market orders entry even while the market is closed. Orders will be released as soon as the market opens on the following day. 2. Brokerage rates are negotiable. 3. No demat account transaction fees. 4. No annual account maintenance charges for demat and trading account. (Hence your account maintenance charges are NIL compared to India bulls, ICICI Direct, HDFC Securities etc.) 5. They provide facility to apply online for IPOs and Mutual Funds.

Useful links about Networth 1. Website: http://www.networthdirect.com 2. Email: reachus@networthdirect.com 3. Phone: 022-3064 1700 4. Toll Free: 1800 22 0223 5. Call & Trade : 1800 3000 0333 (Toll Free) 6. SMS: NETWORTH to 56161

Products and services portfolio

Retail and institutional broking Research for institutional and retail clients

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Distribution of financial products PMS Corporate finance Net trading Depository services Commodities Broking

Infrastructure

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A corporate office and 3 divisional offices in CBD of Mumbai which houses state-of-the-art dealing room, research wing & management and back offices.

All of 107 branches and franchisees are fully wired and connected to hub at Corporate office at Mumbai. Add on branches also will be wired and connected to central hub

Web enabled connectivity and software in place for net trading. 60 operative IDs for dealing room In house technology back up team to ensure un-interrupted connectivity.

1993: Networth Started with 300 Sq.ft. of office space & 10 employees 2006: Spread over 42 cities (around 70,000 Sq.ft of office space) with over 107 branches & employee strength over 400 Market & research Focusing on your needs Every investor has different needs, different preferences, and different viewpoints. Whether investor prefer to make own investment decisions or desire more in-depth assistance, company committed to providing the advice and research to help you succeed. Networth providing following services to their customers, Daily Morning Notes Market Musing Company Reports Theme Based Reports Weekly Notes IPOs Sector Reports 30

Stock Stance Pre-guarter/Updates Bullion Tracker F&O Tracker

QUALITY POLICY To achieve and retain leadership, Networth shall aim for complete customer satisfaction, by combining its human and technological resources, to provide superior quality financial services. In the process, Networth will strive to exceed Customers expectations. As per the quality policy, Networth will:

Build in house processes that will ensure transparent and harmonious relationships with its clients and investors to provide high quality of services. Establish a partner relationship with in its investor service agents and vendors that will help in keeping up its commitments to the customers. Provide high quality of work life for all its employees and equip them with adequate knowledge & skill so as to respond to customers needs. Continue to uphold the values of honesty & integrity and strive to establish unparalleled standards in business ethics. Use state-of-the art information technology in developing new and innovative financial products and services to meet the changing needs of investors and clients.

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Strive to be a reliable source of value-added financial products and services and constantly guide the individuals and institutions in making a judicious choice of it. Strive to keep all stake-holders (share holders, clients, investors, employees, suppliers and regulatory authorities) proud and satisfied.

Key Personnel:

Mr. Girish Dev, CEO & Executive Director Mr. S P Jain CMD Networth Stock Broking Ltd. A qualified Chartered Accountant with over 15 years of experience capital markets. in the

Mr. Deepak Mehta Head PMS Over 12 years of experience in the capital markets and has the prior work experience of serving on the Equity desk of Reliance.

Mr.Viral Doshi Equity Strategist A qualified Chartered Accountant with experience of over a decade in technical analysis with respect to equity markets.

Mr. Vinesh Jain Asst. Fund Manager A qualified MBA graduate specializing in finance and over two years of experience in the capital markets.

Research and the Back office.

we have sought to provide premium financial services and information, so that the power of investment is vested with the client. We equip those who invest with us to make 32

intelligent investment decisions, providing them with the flexibility to either tap into our extensive knowledge and expertise, or make their own decisions. We made our debut into the financial world by servicing Institutional clients, and proved its high scalability of operations by growing exponentially over a short period of time. Now, powered by a topnotch research team and a network of experts, we provide an array of financial products & services spanning entire India.Our strong support, technology-driven operations and business units of research, distribution, advisory, wide array of products & services coalesce to provide you with a one-stop solution to cater to all your investment needs. Our single minded objective is to help you grow your Networth.

Share Holding Pattern

Share Holding Pattern September 2010 June 2010 March 2010 December 2009 September 2009 June 2009 March 2009 December 2008 September 2008 June 2008 March 2008

OUR GROUP COMPANIES Networth Stock Broking Ltd. [NSBL] NSBL is a member of the National Stock Exchange of India Ltd (NSE) and the Bombay Stock Exchange Ltd (BSE) in the Capital Market and Derivatives (Futures & Options) segment. NSBL has also acquired membership of the currency derivatives segment 33

with NSE, BSE & MCX-SX. It is Depository participants with Central Depository Services India (CDSL) and National Securities Depository (India) Limited (NSDL). With a client base of over 1L loyal customers, NSBL is spread across the country though its over 230+ branches. NSBL is listed on the BSE since 1994.

Networth Wealth Solutions Ltd. [NWSL] NWSL is into the business of delivery of Financial Planning & Advice. Its vision is to Advice & Execute money related solutions to/for our customers in the most Convenient & Consolidated manner, while making sure that their experience with us is always pleasant & memorable resulting in positive advocacy. The product & Services include Financial Planning, Life Insurance, On-line Trading Account, Mutual Funds, Debentures/Bonds, General Insurance, Loans and Depository Services.

NetworthStock.ComLtd.[NSCL] NSCL is the commodities arm of NSBL. It is a member at the Multi Commodity Exchange of India (MCX) and National Commodity & Derivatives Exchange (NCDEX) and is backed by solid research & analytics in Commodities. NetworthSoftTechLtd.[NSL] NSL is an ISO 9001:2000 Certified Company. It is into Application Development & maintenance. Building & Implementation of packaged software across various functions within the Financial Services Industry is at its core. It also provides data center services which include hosting of websites, applications & related services. It combines a unique delivery model infused by a distinct culture of customer satisfaction. Ravisha Financial Services Pvt. Ltd. [RFSL] RFSL is a RBI registered NBFC engaged in financing, primarily it provides loan against securities

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Principles & Values

At Net worth Stock Broking Ltd. success is built on teamwork, partnership and the diversity of the people. At the heart of our values lie diversity and inclusion. They are a fundamental part of our culture, and constitute a long-term priority in our aim to become the world's best international bank. Values

Responsive Trustworthy Creative Courageous

Approach

Participation:- Focusing on attractive, growing markets where we can leverage our relationships and expertise Competitive positioning:- Combining global capability, deep local knowledge and creativity to outperform our competitors Management Discipline:- Continuously improving the way we work, balancing the pursuit of growth with firm control of costs and risks Commitment to stakeholders

Customers:- Passionate about our customers' success, delighting them with the quality of our service Our People:- Helping our people to grow, enabling individuals to make a difference and teams to win Communities:- Trusted and caring, dedicated to making a difference Investors:- A distinctive investment delivering outstanding performance and superior returns 35

Regulators: - Exemplary governance and ethics wherever we are.

Objective Direct, control and administer the financial activities of the organization, and provide the Chief Executive and the Board with financial assessments and information which will ensure planning and budgeting activities meet corporate goals. Exclusive benefits for you: Reduced paper work Speedy settlement process resulting in increased liquidity of your securities No risk of loss, wrong transfer, mutilation or theft of share certificates Hassle free automated pay-in of your sell obligation with no need for physical instruction Instant disbursement of non-cash benefits like Bonus and Rights Efficient pledge mechanism

Core Values Integrity: A company honoring commitment with highest ethical and business practices. Excellence: Constantly strive to achieve the highest possible standards in our work and in the quality of the services, we provide. Unity: Work cohesively with our colleagues across the Group and with our customers and partners around the world, building strong relationships based on understanding and 36

mutual cooperation.

THEORETICAL FRAME WORK

Online trading refers to buying and selling securities via the Internet or other electronic means such a wireless access, touch-tone telephones, and other new technologies. Technology is revolutionizing every field of human endeavor and activity. The rapid growth in number, volume and value of securities in the Indian capital market expose the limitation of handling and dealing in securities in physical /Paper mode; the shortcomings of the market became manifest in terms of bad deliveries ,delays in transfer and irregular settlement etc. Primary market is also referred to as New Issue Market. Primary market operations include new issues of shares by new and existing companies, further and right issues to existing shareholders, public offers, and issue of debt instruments such as debentures, bonds, etc. The number of listed companies rose from 2265 in 1980 to over Rs. 6800 at the end of 1998 the daily turnover accordingly shot up Rs. 25 crores in 1979-80 to about Rs 260 crores in 1994-95. The number of shareholders increased from 10 lakhs in 198 to 1.5 crores in 1998. The number of share holder and investors in mutual funds has also risen sharply from about 2 million to over 40 million during this period , rendering this nation to the position of having the second largest investor population in the world next only to USA. It eliminates the risk of bad deliveries, which in turn eliminates all costs and wastage of time associated with follow up for rectification. This reduction in risk associated with bad delivery has lead to reduction in Brokerage to the extent of 0.5% by quite a few brokerage firms. Screen-based trading facilitates the investor to keep a track 37

of the transaction from the source to the end .He can punch in the orders and see the results at the bottom of the screen. Thus, one can get instant trade confirmation. The investor should familiarize himself with order entry screen and the software provided to him. Any mistake made while inputting an order can cause him significant financial loss. Moreover, he will be responsible for any losses caused by lack of knowledge and/or experience .when an order is placed and executed, he becomes liable for payment of the securities. Active trading is dependent upon a number of specialized software systems. Disruptions or failure of any electronic systems utilized may lead the investor with an open position at which time losses can occur. The National Stock Exchange (NSE) followed by the stock exchange Mumbai (BSE)in 1995, first introduced electronic medium of trading. There was a time when an individual investor has to go to an exchange trading Ring to have his order executed .Today the premier exchanges of the country want To come to his door step ,or rather his desktop .Relationship marketing is really gaining momentum. The countrys two biggest exchanges the BSE and NSE have embraced the internet in an effort to leverage the power of this medium to reach out to the hitherto untapped masses. Says NSE former managing director ,RH .PATIL, our internet initiative is in line with our basic thrust which we have been following from day one ,when we Were conceived as a National Exchange with a mission to spread every where , To be as close to investors as possible . In India Geojit securities, a leading brokerage house has the distinction of being the first to offer online Trading as well as for derivatives According to functional basis financial markets are classified into two types. They are 1. Money markets (short-term) 2. Capital markets (long-term)

38

According to institutional basis again classified in to two types. They are 1. Organized financial market 2. Non-organized financial market. The organized market comprises of official market represented by recognized institutions, bank and government (SEBI) registered/controlled activities and intermediaries. The unorganized market is composed of indigenous bankers, moneylenders, individual professional and non-professionals. MONEY MARKET: Money market is a place where we can raise short-term capital. Again the money market is classified in to Inter bank call money market Bill market and Bank loan market Etc.

Eg; treasury bills, commercial papers, CD's etc. CAPITAL MARKET: Capital market is a place where we can raise long-term capital. Again the capital market is classified in to 2 types and they are 1. Primary market and 2. Secondary market. Eg: Shares, Debentures, and Loans etc. 1. PRIMARY MARKET Primary market is generally referred to the market of new issues or market for mobilization of resources by the companies and government undertakings, for new projects as also for expansion, modernization, addition, diversification and upgradation. Primary market is also referred to as New Issue Market. Primary market operations 39

include new issues of shares by new and existing companies, further and right issues to existing shareholders, public offers, and issue of debt instruments such as debentures, bonds, etc. The primary market is regulated by the Securities and Exchange Board of India (SEBI a government regulated authority). Function: The main services of the primary market are origination, underwriting, and distribution. Origination deals with the origin of the new issue. Underwriting contract make the shares predictable and remove the element of uncertainty in the subscription. Distribution refers to the sale of securities to the investors. The following are the market intermediaries associated with the market: Merchant banker/book building lead manager Registrar and transfer agent Underwriter/broker to the issue Adviser to the issue Banker to the issue Depository Depository participant

Investors protection in the primary market: To ensure healthy growth of primary market, the investing public should be protected. The term investor protection as a wider meaning in the primary market. The principal ingredients of investors protection are: Provision of all the relevant information Provision of accurate information and Transparent allotment procedures without any bias.

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2. SECONDARY MARKET: The primary market deals with the new issues of securities. Outstanding securities are traded in the secondary market, which is commonly known as stock market or stock exchange. The secondary market is a market where scrips are traded. It is a market place which provides liquidity to the scrips issued in the primary market. Thus, the growth of secondary market depend on the primary market. More the number of companies entering the primary market, the greater is the volume of trade at the secondary market. Trading activities in the secondary market are done through the recognized stock exchanges which are 23 in number including Over The Counter Exchange of India, National Stock Exchange of India and Interconnected Stock Exchange of India. Secondary market operations involve buying and selling of securities on the stock exchange through its members. The companies hitting the primary market are mandatorily required to list their shares on one or more stock exchanges in India including stock exchanges. Listing of scrips provides liquidity and offers an opportunity to the investors to buy or sell the scrips. The following intermediaries in the secondary market: Broker/member of stock exchange buyers broker and sellers broker Portfolio Manager Investment advisor Share transfer agent Depository Depository participants.

Regulatory Frame Work OF Stock Exchange:

41

A comprehensive legal framework was provided by the Securities Contract Regulation Act, 1956 and Securities Exchange Board of India 1952. Three tier regulatory structure comprising 1. Ministry of finance 2. The Securities And Exchange Board of India 3. Governing body Members of the stock exchange: The securities contract regulation act 1956 has provided uniform regulation for the admission of members in the stock exchanges. The qualifications for becoming a member of a recognized stock exchange are given below: The minimum age prescribed for the members is 21 years. He should be an Indian citizen. He should be neither a bankrupt nor compound with the creditors. He should not be convicted for fraud or dishonesty. He should not be engaged in any other business connected with a company. He should not be a defaulter of any other stock exchange. The minimum required educational is a pass in 12th standard examination.

Meaning of demat:
A demat account allows you to buy, sell and transact shares without the endless paper work and delays. It is also safe, secure and convenient. What is Demat account? Demat refers to a dematerialized account. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares. Why demat? 42

1. 2.

The demat account reduces brokerage charges. It enables quick ownership of securities on settlement resulting in

increased liquidity. 3. It avoids confusion in the ownership title of securities, and provides

easy receipt of public issue allotments. 4. It also helps you avoid bad deliveries caused by signature mismatch,

postal delays and loss of certificate in transit. 5. It eliminates risks associated with forgery, counterfeiting and loss due

to fire, theft or mutilation. 6. Demat account holders can also avoid stamp duty (as against 0.5

percent payable on physical shares), avoid filling up of transfer deeds. Steps involved in opening a demat account: Opening an individual demats account is a two-step process: 1. Approaching a DP and fill up the demat account-opening booklet. The web sites of the NSDL and the CDSL list the approved DPs. 2. We receive an account number and a DP ID number for the account.

The cost opening and holding a demat account: There are four major charges usually levied on a demat account: 1. 2. 3. 4. Account opening fee Annual maintenance fee Custodian fee Transaction fee.

Online Equity Trading:

Through the internet, investors can quickly find affordable market research Stock information, and economic news .They often can have their broker/dealers execute 43

trades almost

instantaneously, while generally incurring lower Commissions. These

facilities for online investing can thus provide significant benefits to many investors. At the same time ,investors should recognized that online trading might present Special risks. For example, investors should understand that execution of their orders might be delayed during times of high market trading volume. Investors should appreciate the usefulness of limit orders, and they should treat bulletin boards and monetary with skepticism. E-broking or trading of stock market shares on the internet has captured the minds of individual investor worldwide. Report says more than seven American million Investors have gone online in the last 5-7years , and this number is

likely to double in the next two years in many other countries including India , individual investors have come out in open support of this new trading system. The Internet has democratized the investing world by giving every web-enabled individual access to a rich reservoir of data and analyses on the stock market. In India , exchanges have been very proactive, rather than waiting. They have chosen to be the harbingers of change by allowing members who fulfill the criteria to take advantage of the internet by facilitating a computer-to-computer trading link. Using internet, a broker can set up a NSE trading facility in a remote town at a far lower cost, which makes penetration of capital markets easier in rural areas. BSE has already embarked on a campaign of investor education and awareness about the benefits of online trading and the security features built into The internet trading system to be effected via the exchange trading plaza. there is A tremendous potential for growth in the online trading market as more and more Brokers are going online. Both BSE and NSE are trying to provide a cost-effective solution for their Members to provide a standards-based internet trading facility to their clients at a Fraction of the cost , of what it would cost the broker if he went up a decent sized internet trading solution is alone . The typical Cost of setting .The BSE Therefore 44

between Rs 10 to 15Crores, which a large number of brokers are unlikely to be affordable

Plans to offer an

exchange based

system that leverages the economies of scale to

offer routing via a centralized engine with the additions of content of Companies, available with the exchange. BSE has introduced an application Service provider model, which has widely been accepted. NSE has formed a 50-50 joint venture with I-flex solutions to offer the Exchange trading solutions . The joint venture christened dotex international in addition to providing access to the exchanges order matching system will also allow access to fundamental analysis , balance sheet analysis and any other relevant company information. The BSE too is offering tools like technical analysis and scrip related information etc. on the site at a cost, which is 10 to 20%of the cost of the broker going solo. In India quite a number of websites today, offer online trading and e-Broking over the internet. These are either wholly specialized services or are being offered as an extension to an already existing offline business model. Popular Websites like ICICI direct.com investmartindia.com Geojitsecurities.com,5paosa.com,kotakstreet.com,sharekhan.com,offer basic online buying and selling of shares through major stock exchanges like the NSE , BSE and other regional stock exchanges .Although, in principle it is very much like how it is done traditionally and physically through a broker or broking firm ,it differs from the way that the automation is built into the system ,with the individual maintaining transaction till the stage of execution .Only Demat control of the path of

(Dematerialization) shares can be traded on the internet. Following are the sailent features and benefits offered to individuals who desire to trade online trading through various e-broking firms: Convenience Liquidity advantages Tracking 45

Technology benefits In order to stay ahead in the competition e-broking firms have to provide

their members with innovative schemes and clearly visible advantages in terms of Hassle-free transacting and more Obviously low brokerage rates. Online trading is bottle for the Indian investors purse. The entry of competitive price online broking services has brought the excitement back in a rather lack luster market. It has exposed the investors to the dynamics of day trading. Online trading also has a role to play in economic factors such as the mobilization of savings. From a macro economic perspective in the us, about 15% of savings were invested in equities in 1996. The concept of online trading is eminently flexible due to scalability of infrastructure and other evolving product offerings. Consequently the many benefits of online trading will continue to attract investors, which in turn in economics of massive scale from the going mass of transaction. In turn, this will enable web managers of online trading sites to constantly upgrade their product offering can enhance the quality of online trading experience, on a continuous basis.

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On-Line surveillance:
Log-in

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Enter your Order quickly here

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ONLINE TRADING PLATFORM:

They are three types of online trading platforms are their: 1. Easy usage 2. Advance usage 3. Super usage ONLINE TRADING PLATFORM A) Easy usage: It is a powerful browser based trading system for those who are relatively new to online investing. A unique integrated account, linking your banking, broking, and demat accounts. Our cutting-edge trading interface gives you the power to research stock trends, find the latest stock quotes and make fast trades right from the computer you already have. You no longer have to depend on someone else to handle your trades - the power to make your mark on the stock market is in your hands. EASY Usage simplifies the online trading process and gives you unlimited access to your trading history to see where you started, where you are now and where you have room to grow. And with our research and stock watch tools, you can be ready to trade stock at a moment's notice. Benefits of Easy usage: Trading on NSE & BSE World class resources Integrated Bank, Demat and Trading Accounts Get Current & Historical Order Status Monitor your orders Updated buying power Anywhere access Access to all back end reports and data 50

Online Research & Exchange Calls.

B) Advance usage: Advance Usage is a Applet-based system designed specially for Active Traders. Customers can also trade on Advance Usage where they have access to live streaming quotes, which enables them to keep track of real-time price movement. Multiple market watch, message window and trading window, all in one screen, to help customers track individual stocks and make timely trades when investing online. Fast & capable trading application to power your online account. Benefits of Advance usage Streaming quotes Market Depth Window Trading on NSE & BSE Anywhere access Create Multiple Watch lists

C) Super usage: Trade along side professional stock brokers from the comfort of your own home or office. SUPER Usage is an advanced, customizable online trading platform built exclusively for active traders like you. SUPER Usage launches right from your desktop and offers professional, complimentary tools that can help give you an advantage in the marketplace. SUPER Usage makes the most of state-of the-art technology to deliver power, speed and reliability. Benefits of Super usage: Personalized Stock Quote Lists Fully Customizable display Streaming Intraday, Daily and Weekly Charts 51

Quick Quote.

ONLINE TRADING IN COMMODITIES:

INTRODUCTION: Commodities Futures trading! in India have a long history. The first commodity futures market appeared in 1875. But the new standardized form of trading in the Indian capital market is an attractive package for all the people who earn money through speculation by trading into FUTURES. It is a well-known fact and should be remembered that the trading in commodities through futures exchanges is merely, old wine in a new bottle. The trading in commodities was started with the first transaction that took place between two individuals. We can relate this to the ancient method of trading i.e., BARTER SYSTEM. This method faced the initial hiccups due to the problems like: store of value, medium of exchange, deferred payment, measure of wealth etc.. This led to the invention of MONEY. As the market started to expand, the problem of scarcity piled up. The farmers/traders then felt the need to protect themselves against the fluctuations in the price for their produce. In the ancient times, the commodities traded were the Agricultural Produce, which was exposed to higher risk i.e., the natural calamities and had to face the price uncertainty. It was certain that during the scarcity, the farmer, realized higher prices and during the oversupply he had to loose his profitability. On the other hand, the trader had to pay higher price during the scarcity and vice versa. It was at this time that both joined hands and entered into a contract for the trade i.e., delivery of the produce after the harvest, for a price decided earlier. By this both had reduced the future uncertainty. One stone still remained unturned- surety of honoring the contract on part from either of the parties. This problem was settled in the year 1848, when a group of traders in CHICAGO came forward to standardize the trading. They initiated the concept 52

of to-arrive contract and permitted the farmers to lock in the price upfront and deliver the grain at a contracted date later. This trading was carried on a platform called CHICAGO BOARD OF TRADE, one of the most popular commodities trading exchanges today. It was this time that the trading in commodity futures picked up and never looked back. Although in the 19 th century only agricultural produce was traded as a futures contract, but now, the commodities of global or at least domestic importance are being traded over the commodity futures exchanges. This form of trading has proved useful as a device for HEDGING and SPECULATION. The commodities that are traded today are: Agro-Based Commodities Wheat, Corn, Cotton, Oils, Oilseeds etc.. Soft Commodities.. Coffee, Cocoa, Sugar etc Livestock. Live Cattle, Pork Bellies etc Energy.. Crude Oil, Natural Gas, Gasoline etc Precious Metals.. Gold, Silver, Platinum etc Other Metals Nickel, Aluminum, Copper etc

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Structure of the commodity market:

Rolling settlement system: Under rolling settlement system, the settlement takes place n days (usually 1,2 ,3 or 5days) after the trading day. The shares bought and sold are paid in for n days after the trading day of the particular transaction. Share settlement is likely to be completed much sooner after the transaction than under the fixed settlement system. The rolling settlement system is noted by T+N i.e. the settlement period is n days after the trading day. A rolling period which offers a large number of days negate 54

the advantages of the system. Generally longer settlement periods are shortened gradually. SEBI made RS compulsory for trading in 10 securities selected on the basis of the criteria that they were in compulsory demats list and had daily turnover of about Re.1 crore or more. Then it was extended to A stocks in Modified Carry Forward Scheme, Automated Lending and Borrowing Mechanism (ALBM) and Borrowing and lending Securities Scheme (BELSS) with effect from Dec 31, 2001. SEBI has introduced T+5 rolling settlement in equity market from July 2001 and subsequently shortened the cycle to T+3 from April 2002. After the T+3 rolling settlement experience it was further reduced to T+2 to reduce the risk in the market and to protect the interest of the investors from 1st April 2003. Activities on T+1: Conformation of the institutional trades by the custodian is sent to the stock exchange by 11.00 am. A provision of an exception window would be available for late confirmation. The time limit and the additional changes for the exception window is dedicated by the exchange. The exchanges/clearing house/ clearing corporation would process and download the obligation files to the brokers terminals late by 1.30 pm on T+1. Depository participants accept the instructions for pay in securities by investors in physical form up to 4 pm and in electronic form up to 6 p.m. the depositories accept from other DPs till 8p.m for same day processing. T+2 activities: The depository permits the download of the paying in files of securities and funds till 10.30 am on T+2 from the brokers pool accounts. The depository processes the pay in requests and transfers the consolidated pay in files to clearing House/clearing Corporation by 11.00am/on T+2. The exchange/clearing house/clearing corporation executes the pay-out of securities and funds latest by 1.30 pm on T+2 to the depositories

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and clearing banks. In the demat mode net basis settlement is allowed. The buy and sale positions in the same scrip can be settled and net quantity has to be settled.

At the end of each trading day, concluded or locked-in trades are received from NSE by NSCCL. NSCCL determines the cumulative obligations of each member and electronically transfers the data to Clearing Members (CMs). All trades concluded during a particular trading period are settled together. FUNDS SETTLEMENT Currently, NSCCL offers settlement of funds through 13 clearing banks namely Canara Bank 56

HDFC Bank Indusind Bank ICICI Bank Bank of India UTI Bank IDBI Bank Standard Chartered Bank HSBC Ltd Kotak Mahindra Bank SBI Union Bank of India Citibank Funds pay-in obligation is required to have clear funds in his a/c on or before

11.00 a.m. on the scheduled pay-in day. The payout of funds is cr. to the clearing account of the members on or after 1.30 p.m. on the scheduled payout day. Clearing Account: The clearing account is to be used exclusively for clearing operations i.e., for settling funds and other obligations to the Clearing Corporation including payments of Margins and penal charges. Clearing Members are required to authorize the Clearing Bank to access their clearing account for debiting and crediting their accounts, reporting of balances and other information as may be required by NSCCL from time to time as per the specified format. Safety of Transaction on the Internet: The safety of transaction on the internet depends on encryption system used. The better the transaction system , the more difficult it is for any person to Hack the site .Internationally ,the best system available today ,it is the 128-Bit Encryption , 57

system, which even the pentagon uses. Since in the online business, the order have pass through the network of public carriers, there exists a risk of data

placed

being intercepted or modified by a hacker or anyone with malicious intentions. According to industry experts , in future when the quantum of funds Manage by the online brokers reach significant levels a security related issues Would take the center stage .However, most of the domestic player use some kind of securities features to enable safe transaction on the net .Encryption , build on the Secured socked layer (SSL) protocol developed by Netscape ,provides sufficient amount of security to the customers. Although , a majority of players offer 40-Bits Encryption method , ICICI and investment have already graduated to 128-Bit Encryption technology .Though the data transmitted in the form of plain text is Quite vulnerable , encrypted data has a much better level of protection. It is true that pricing is still the unique selling proposition at the moment, But security could be the trump card for tomorrow. security and trust are the two important parameters,which will be crucial in determining a clients long term Relation with the broker. Mr. Anup Bagchi.COO at ICICI Direct, Brokerages are practically a nonissue, going by the US experience. What matters more are things like trust and security especially because the service involves dealing with peoples cash as well as stocks. The customer is also responsible for ensuring safety of online transactions. He normally gets a secured user ID and password ,the secrecy of which is to be maintained entirely by him. If the transaction system requires no manual intervention, it becomes safer. Among the Indian sites, ICICI Direct. Com , Investsmart India Ltd., Sharekhan, Indiabulls.com are among the few fully integrated online trading sites. It enables The elimination of the possibility of any manual intervention.Thus,orders can be directly sent to the exchange, ensuring that the investor gets the best and right Price.

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Advantages of Online Trading:

Many customers, who have chosen to trade shares online today , had at one Point of time been trading through offline brokers .After realizing the advantages of trading shares online, they have switched over to online trading now. However, before choosing an online trading site ,all the sites should be compared in order to form a decision. Online trading has made it possible for anyone to have easy and efficient access to more reports and charts than it was previously possible if one when to brokers office .Thus, we have access to a lot more information online to self teach ourselves. It eliminates the risk of bad deliveries, which in turn eliminates all costs and wastage of time associated with follow up for rectification. This reduction in risk associated with bad delivery has lead to reduction Brokerage to the extent of 0.5% by quite a few brokerage firms. Screen-based trading facilitates the investor to keep a track of the transaction from the source to the end .He can punch in the orders and see the results at the bottom of the screen .Thus, one can get instant trade confirmation. Online trading has left room for smaller organizations to compete with Multinational organizations ,since is no longer a legit issue. Being online does not identify the size of any particular organization. Online trading has allowed companies to locate themselves were they want, as physical location is not an issue anymore. Companies can establish themselves according to their gains and losses, for instance, where tax (sales and value-added taxes) is best suited to them. Online trading gives control to individuals and the can exercise it over their accounts thus comprehend what is going on the trade. It is like going back to school and re-educating oneself on how to trade online. Individuals benefit by saving comparatively a lot more when trading online as the cost per trade is less. 59 in

Individuals can invest in a variety of products, unlike earlier when people bought bonds, mutual funds, and stocks for long-term basis. Now they can invest in stocks, and index options, mutual funds, individuals, government, Corporate, municipal bonds, various types of IRA account, mortgages and even insurance.

Online trading has it possible for one to find investment options that were not available on a regular basis, like off-beat net stocks ,eccentric unique things and trading in global market. only to enquire about the prices of various scripts, Internet trading connects the stock exchanges directly of the investor ,who should make sure that the online trading site ,he selects provides him the trading screen ,which uses the push technology to display prices. Using the push technology the trading screen display the real time prices of 10 to 15 script s at a glance, unlike pull technology where in one needs to type the quote every time one needs the price.

Internet has made it possible for broking firms to transmit key market information to all clients at one go. Market watch screen gives live ticks update on the desktop ,where by the investor can set a number of scripts of his choice, which will keep ticking through streaming quotes without manual intervention .

Clients find it easier and convenient to interact with their broker in a web-enable environment. In the past there were instances of brokers misleading the information given to them by their clients , because of communication lags. This led in effect ruined several investors. The internet ensures speedy and correct flow of information between all users.

Online trading sites provide professional advice to investors. Many investors are not knowledgeable about the stock markets and need advice about their investment decisions.

Disadvantages of Online Trading:

The ease and speed of online trading can give the investor a false sense of security and encourage him to trade more frequently without paying any heed to market basics like, researching a company or knowing the risk he is going to assume.

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The concept of chat rooms, which has become very popular with the investors, may provide them with misleading information. Chat room participants are often paid to high light certain stocks.

Online trading is not always instantaneous. In a rapidly changing market, orders may not get executed at the price on the computer screen .This is because even a nano seconds delay can put one out of the race for that particular stock at that particular price.

Delays in execution usually arise due to various technological choke -points like the internet slowing down to heavy traffic or if the modems , computer or internet service provider (ISP) is mal functioning .If the investor dose not factor in these technological lags while entering into a volatile market ,he may suffer heavy losses.

The investor

should

familiarize

himself

with order entry

screen and the

software provided to him. Any mistake made while inputting an order can cause him significant financial loss. Moreover, he will be responsible for any losses caused by lack of knowledge and/or experience .when an order is placed and executed, he becomes liable for payment of the securities. Active trading is dependent upon a number of specialized software systems. Disruptions or failure of any electronic systems utilized may lead the investor with an open position at which time losses can occur. Customers trading on-line may have difficulty accessing their account due to high internet traffic or because of systems capacity limitations .Customers trading through representatives of on- line firms ,when on-line trading has been disabled or in not available because of system limitation, may have difficulty reaching account representatives on the telephone during periods of high volume.

Trouble Shooting:
1. From the Investors points of view:

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To prevent any technological choke point , the investor can place a limit order an not a market order when entering a volatile market. A limit order gets executed only at a specific price. The is a, buy limit order can only be executed at the limit price or lower, and a sell limit order can only be executed at the limit price or higher .By entering a limit order rather than a market order, he will not be caught buying a stock a bandwidth. Security is the key requirement for the investors protection. It is absolutely essential to protect the user identification and password. He must also protect against computer entry by some one other than himself after initializing his system .The system should not be left unattended and must be properly shut down when he is not actively using it. The investor is responsible for all trades entered under his user identification and password. For his protection, frequent changing of password is recommended. It is very important that he reconciles his account on a daily basis 2. From the brokers point of view: In the absence of any direct interface the organization and the clients , online share trading firms should maintain seamless communication with their clients . But, this is not always the case. Customers orders can be slowed down for reasons outside of the firms control. But explaining clearly to customers rather than merely disclaiming liability through complex and legalistic language would go a long way towards shorting up the customers confidence in the firm. price he hadnt planned for due to the problems faced with

INTERNET TRADING AND ONLINE INVESTING:

INTERNET FRAUD:

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How to Avoid Investment Scams: The serves as an excellent tool for investors, allowing them to easily and inexpensively research investment opportunities. But the internet is also an excellent tool for fraudsters. Thats why you should always think twice before you invest your money in any opportunity you learn about through the internet. This alert tells you hoe to spot different types of internet fraud, what the SEC is doing to fight internet investment scams, and how to use the internet to invest wisely. Navigating the Frontier: where the frauds are The internet allows individuals or companies to communicate with a large audience without spending a lot of time, effort, or money. Anyone can reach ,ten thousands of people by building an internet website, posting a message on an online bulletin board, entering a discussion in a live chat room, or send help investors gather valuable information, some online newsletters are tools for fraud. Some companies pay the people who write online newsletters cash or securities to tout or recommend their stocks .While this isnt illegal, the federal securities laws require the newsletters to disclose who paid them, the amount and the type of payment. But many fraudsters fail to do so. Instead, they will lie about the payments they received, their fraudsters fail to do so. Instead, they will lie about the payments they received, their independence, their so-called research and their track records. Their newsletters masquerade as sources of unbiased information, when in fact they stand to profit handsomely if they convince investors to buy or sell particular stocks. Some online newsletters falsely claim to independently research the stocks they profile. others spread false information or promote worthless stocks. The most notorious sometime scalp the stocks they type, driving up the price of the stock with 63

their baseless recommendations and then selling their own holding at high prices and high profits. To learn how to separate the good from the bad, read our tips for checking out newsletters. E-mail Spams: Because spam-junk e-mail- is so cheap and easy to create, fraudsters increasingly use it to find investors for bogus investment schemes or to spread false information about a company. Spam allows the unscrupulous to target many more potential investors than cold calling or mass mailing. Using a bulk e-mail program, spammers can send personalized messages to thousands and even millions of internet users at a time. How to Use the Internet Wisely If you want to invest wisely and steer clear of frauds, you must get the facts. Never ever, make an investment based solely on what you read in an online newsletter or bulletin board posting, especially if the investment involves a small, thinly-traded company that isnt will known and even think about investing on your own in small companies that dont file regular reports with the SEC,Unless you are willing to investigate each company thoroughly and to check the truth of statement about the company .For instance, youll need to: Get financial statements from the company and be able to analyze them. Verify the claims about new product development or lucrative contracts. Call every supplier or customer of the company and ask if they really do business with the company. Check out the people running the company and find out if they have ever made money for investors before and it doesnt stop there. ONLINE INVESTMENT FRAUD: New Medium, same old scam: 64 every

The types of investment fraud seen online mirror the frauds perpetrated over the phone or through the mail. Remember that fraudsters can use a variety of internet tools to spread false information, including bulletin boards, online newsletters, spam, or chat including internet relay chat or web page chat. They can also build a glitzy, sophisticated web page. All of these tools cost very little money and can be found at the fingertips of fraudsters. Consider all offers with skepticism. Investment frauds usually fit one of the following categories: The pump and Dump Scam Its common to see messages posted online that urge readers to buy a stock quickly or tell you to sell before the prices goes down. Often the writers will claim to have inside information about an impending development or to use an infallible combination of economic and stock market data to pick stocks. In reality, they may be insiders or paid promoters who stand to gain by selling their shares after the stock price is pumped up by gullible investors. Once these fraudsters sell their shares and stop hyping the stock, the price typically falls and investors lose their money. Fraudsters frequently use this plan with small, thinly traded companies because its easier to manipulate a stock when theres little or no information available about the company. The Pyramid Be wary of messages that read .How To Make Big Money From Your Home Computer!!! One online promoter claimed that investors could turn 45 into$60000 in just three to six weeks, in reality, this program was nothing more than a products toted do not even exist-they are merely scams, be wary of opportunities that promise spectacular profits or guaranteed returns. If the deal sounds too good to be true, then it is probable.

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Off-Shore Frauds At one time, off-shore schemes targeting U.S. investors cost a great deal of money and were difficult to carry out. Conflicting time zones, differing currencies and the high costs of international telephone calls and overnight mailings made it difficult for fraudsters to prey on U.S. residents. But the internet has removed those obstacles. Be extra careful when considering any investment opportunity that comes from another country, because its difficult for U.S. law enforcement agencies to investigate and prosecute foreign frauds.

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DATA ANALYSIS & INTERPRETATION

1.Awareness of online trading
PARTICULARS Yes No TOTAL INVESTORS RESPONSE 90 10 100

Graph 1:

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INTERPRETATION: From the above graph we can say that 90% of the people are aware of online trading and 10% of them are not aware of it.

2.Participation in the share market

PARTICULARS Yes No TOTAL INVESTORS RESPONSE 63 37 100

Graph 2:

INTERPRETATION:

68

From the above graph we can say that 63% people actively participate in share market and 37% of do not participate.

3. Which Online investors of various categories

PARTICULARS Uncertain newcomer Moderate active trader Active day trader Hands in every pot TOTAL

INVESTORS RESPONSE 33 27 27 13 100

Graph 3:

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INTERPRETATION: The above graph depicts that 33% of them are uncertain newcomer, 27% of them belong to moderate active trader category and active day trader and 13% of them belongs to hand in every pot category.

4.Demat Account Customers

PARTICULARS Yes No TOTAL

INVESTORS RESPONSE 67 33 100

Graph .4:

INTERPRETATION:

70

From the above graph we can say that 67% of the investors have Demat account and 33% of them doesnt have Demat account.

5.The depository you take into consideration for accessing Demat account
PARTICULARS NSDL CDSL TOTAL INVESTORS RESPONSE 77 23 100

Graph 5:

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INTERPRETATION: From the above graph we can say that 77%of the people are in favour of NSDL depository and 23% are in favour of CDSL depository.

6.Favour of Demat Account

PARTICULARS Yes No TOTAL INVESTORS RESPONSE 77 23 100

Graph 6:

INTERPRETATION: 72

From the above graph we can say that 77% of the people are in favour of demat account and 23% of them are not in favour of it.

7.Most Preferable Attribute While Investing

PARTICULARS Rate of return Liquidity Convenience Regulation TOTAL INVESTORS RESPONSE 40 43 7 10 100

Graph 7:

INTERPRETATION: 73

From the above graph we can say that Liquidity (43%) is most preferable among all the attributes.

8.Awareness on the Nature of risk involved in online Trading

PARTICULARS Yes No TOTAL INVESTORS RESPONSE 83 17 100

Graph 8:

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INTERPRETATION: From the above graph we can say that (83%)majority of the people are aware of risk involved in online trading.

9.Brokers Activities Involved in Online Trading

PARTICULARS Yes No TOTAL INVESTORS RESPONSE 50 50 100

Graph 9:

INTERPRETATION:

75

From the above graph we can say that 50% of the investors check brokers activities and 50% do not check.

10.The System do you feel more Convenient in Trading

PARTICULARS Yes No TOTAL INVESTORS RESPONSE 20 80 100

Graph 10:

INTERPRETATION: 76

From the above graph we can say that 80% of the people are in favour of screen based trading and 20% of them in favour of outcry system.

11.Security in Online Trading

PARTICULARS Yes No TOTAL INVESTORS RESPONSE 85 15 100

Graph 11:

INTERPRETATION:

77

The 85 %people believe that online trading is secure. This shows that the online trading has taken a good place in the minds of Indian stock traders and the Indian consumer or investor is moving towards online trading faithfully.

12.Importance of Security Factor for Online Trading

PARTICULARS Strongly Agree Agree Neither agree nor disagree Disagree Strongly disagree TOTAL Graph 12: INVESTORS RESPONSE 40 22 5 23 10 100

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INTERPRETATION: Majority of the people agree that they consider security as an important factor when they go for online trading, while 23% respondents disagree with this fact. Five people have neutral opinion.

13.Investors Interest to Trade Online

PARTICULARS Equity Portfolio Management Commodities Future and options TOTAL Graph 13: INVESTORS RESPONSE 55 5 18 12 100

INTERPRETATION: 79

Maximum number of people prefers to trade in equity online. The second preference is to trade in Portfolio management which is about 15%. 18 deal in Commodities and 12% deal in future and options.

14.Role of Online Trading In Growth And Development Of Indian Stock Market

PARTICULARS Yes No TOTAL INVESTORS RESPONSE 86 14 100

Graph 14:

INTERPRETATION: About 86% people responded that online trading has helped the growth and development of Indian stock market and 14% people disagree with this fact. 80

15.Investors Preferable Methods

PARTICULARS Online Offline Both TOTAL INVESTORS RESPONSE 62 25 13 100

Graph 15:

INTERPRETATION: More than half number of people prefer online trading, 23% people prefer offline trading while 13% people prefer both online and offline. 81

16.Online Trading is Easy and Fast Way of Trading

PARTICULARS Yes No TOTAL INVESTORS RESPONSE 92 8 100

Graph 16:

INTERPRETATION: 92% people say that online trading is easy and fast way of trading while 8% people say it is not easy and fast way of trading. 82

17.Introduction of Online Trading has Helped in Attracting the New Investors

PARTICULARS Yes No TOTAL Graph 17: INVESTORS RESPONSE 92 8 100

INTERPRETATION: About 78% people feel that online trading has helped in attracting the new investors while 22% people believe that it does not attract new investor. 83

18.Agree with the Extended Timings of Trading Hours

PARTICULARS Yes No TOTAL INVESTORS RESPONSE 37 63 100

Graph 18:

INTERPRETATION:

84

Only 37% people are satisfied with extended trading hours and majority of people i.e., 63% are not happy with the extended hours of trading.

19.Awareness about Equities Market PARTICULARS

Yes No TOTAL

INVESTORS RESPONSE
92 8 100

Graph 19:

INTERPRETATION: From the above graph we can say that 45% of the people are in favour of demat account and 5% of them are not in favor of it. 85

FINDINGS:
1. Online trading is more powerful & advantageous than manual trading. 2. The software or the systems used in online trading should be advanced and the persons who operate should have minimum knowledge. 3. Tips are available for trading online and invest wisely. So that the investor can avoid the fraud. 4. It should increase the speed of executing the orders. 5. Due to invention of online trading here has been greater benefit to the investors as they could buy/sell shares as and when required. 6. It has to take necessary steps to attract the customers through the Internet. 7. Instant bank account should be provided as the other companies are providing. 8. It should have separate department for portfolio management. 9. Most of the investors like to trade along with brokers. 10. Online makes direct contact between the investors and it avoids the presence of middleman. 11. Online trading reduces the trade time. 12. Majority of the people consider security as an important factor for online trading, while 33 respondents disagree with this fact. Five people have neutral opinion. 13. Maximum amount of people prefer to trade in Equity online. 14. The second preference is to trade in Portfolio Management. About 18 deals in Commodities and 12 deal in Future and Options. 15. About 86 people responded that online trading has helped the growth and development of Indian stock market and also helps in attracting new investors.

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16. Out of 100 respondents, 62 people prefer online trading, 23 prefer offline trading while 13 people prefer both online and offline. 17. Majority of people say online trading is easy and fast way of trading while a meager number of people say it is not easy and fast way of trading. 18. Only 37 people are satisfied with extended trading hours and majority of people i.e., 63 are not happy with the extended hours of trading.

SUGGESTIONS:
The suggestion to exchange authorities is to take steps to educate investors about their rights and obligation, try to increase investors confidence. I suggest the exchange authorities to be vigilant to curb wide fluctuations of prices on the exchanges in the prices ,not attracting to the genuine investors to the greater extents towards the market . Try to explain them how fraud will take place so that they will be alert and they can take necessary steps to avoid the frauds. Genuine investors are not at all interested in the speculative gain as their investment is based on the future profits, therefore the authorities of exchange should be more vigilant in imposing heavy margin to curb the speculative of securities. The companies should come up with more and more innovative features in their web portals. The customer should be educated regularly regarding the new technologies and of online trading and also other relevant information The companies should make efforts to promote online trading and create awareness about its benefits. The companies should look after to develop more safe and secure ways of transacting business online. The companies should make maximum efforts to detect fraud cases and minimize them. 87

CONCLUSION:
Due to changes in technology NET WORTH STOCK BROKING LTD has changed its trading activities into online trading system. So that transactions will be performed efficiently. Things have changed for the better with the NET WORTH STOCK BROKING LTD going online coupled with endeavors to stream line the whole trading system, thing have changed dramatically over the last 3-4 years. New and advanced technologies have breached geographical and cultural barriers brought the country wide market to doorstep. In the present scenario and to compete the RSEs would require sound infrastructure and trading as per international standards . The concept of business have changed and today it has become service to clients or to provide the best possible service to clients or to engage into new business practices in the other exchanges of the world . In order to stem the flow of business from the regional center to the metro and have

centers and to impart liquidity introductions of online trading is necessary .i.e demand of the day presently. Tips are available for trading online and to invest wisely, so that the investors can avoid the frauds. The introductions of online trading would influence in the investors resulting in an increase in the business of the exchange. It has helped the brokers handling a vast amount of transactions and this can be achieved through delivering 88

and settlement system with adequate protections to investors system. The trading of NET WORTH STOCK BROKING LTD on the first day was Rs 1.8 crores . Due to invention of online trading there has been greater benefit to the investors as they could sell /buy shares as and when required and that to with online trading will inspire confidence in investors resulting in increase in business of exchange.

QUESTIONNAIRE:
1. Are you aware of online trading? (a) Yes (b) No

2. Do you actively participate in the share market? (a) Yes (b) No

3. Which online investor category you belong to? (a)Uncertain newcomer (c)Active day trader 4. Do you have a Demat account? (a)Yes (b)No (b) Moderate active trader (d) Hand in every pot

5. Which depository do you take into consideration for accessing Demat account? (a)National Securities Depository Limited (NSDL) (b)Central Depository Services Limited (CDSL) 6. Are you in favour of Demat account? (a)Yes (b) No

7. Which is the most preferable attribute while investing? Comment (a) Rate of return (b) Liquidity 89

(c) Convenience

(d) Regulation

8. Are you aware the nature of risk involved in online trading? (a) Yes (b) No

9. Do you check brokers activity involved in online trading? (a) Yes (b) No

10. Which system do you feel more convenient in trading? (a) Outcry system (b) Screen based system

11. Do you feel online trading is secure? (a) Yes (b) No

12 Is security an important factor for online trading? (a) Strongly Agree (d) Disagree (b) Agree (c) Neither Agree nor Disagree (e) Strongly Disagree

13. In which of the following do you trade online (a) Equity (c) Commodities (b) Portfolio Management (d) Future and Options

14. Do you think online trading has helped the growth and development of Indian stock market? (a) Yes (b) No

15. Which of the following methods do you prefer? (a) Online (b) Offline (c) Both

16. Do you think online trading is easy and fast way of trading? (a) Yes (b) No 90

17. Do you think introduction of Online Trading has helped in attracting the new investors thus increasing the trading volumes at stock market? (a) Yes (b) No

18. Do you agree with the extended timings of trading hours? (a) Yes (b) No

19. Do you know about Equities market? (a)Yes (b) No

BIBILIOGRAPHY
Reference Books: Investment Analysis and Portfolio Management - Prasanna Chandra Financial Management Khan and Jain

Websites: www.jrg.in www.nseindia.com www.bseindia.com www.siainvestor.com www.indiainfoline.com www.stcionline.com www.sharekhan.com 91

www.capitalideasonline.com

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