ONLINE TRADING

Services of HDFC Securities

Limited
By
Chitta Rama Krishna
 Objective
• The main objective of the project is to
understand online trading of Shares and the
services provided by the custodian HDFC
Securities Limited.
 Guides of this project
• Mentor : Director and Principal
Madam Preethi Chrysolite

• Support : Head of the department for

Management
Madam Suhasini
We are very much thankful to them for their
guidance and support for this project.
 Abstract
• In this project we discussed about the share market, Online trading and the services provided by the custodian HDFC
Securities Limited.

• We discussed in brief about the required terminology in the share market.

• We discussed about the influences on share prices movement.

• We briefed about the technical analysis of share market.

• We discussed about the Advantages and disadvantages of the online trading.

• We focused on the major custodians in India, International Stock exchange indices, sectoral indices, sources of
information.

• We discussed about the Do’s and don’ts given by Securities Exchange Board of India (SEBI)

• Site map of HDFC Securities Limited

• Briefed the procedure of trading of shares online through HDFC Securities Limited.

• Displayed the portfolio of the presenter.

• As this is not a research project, hence, project design not mentioned., and there is no sampling technique used.
• It is an knowledge gaining project on online trading.
 Abstract
• This project describes,

• Share market, Online trading, services by HDFC

Securities Limited
• Basic terminology
• Do’s & Do not’s given by SEBI
• Stock Exchanges, Different indexes, different
sectors, etc.
• Factors influencing share price movement
 ONLINE TRADING
• Online trading means trading of shares on Internet.

• The Internet is a global system of interconnected

computer networks that use the standard Internet
Protocol Suit (TCP/IP) to serve billions of users
worldwide. It is a network of networks that
consists of millions of private, public, academic,
business, and government networks, of local to
global scope, that are linked by a broad array of
electronic,
 Advantages of Online Trading
• Speedy execution: It allows very fast execution, measured in terms of milli seconds.
• Cost reduction: Transaction costs are lower for trade executed with a direct access brokerage.
• Paperless Transaction: your share certificates get deposited in electronic form (DMAT) in your web
trade account.
• Orders can be also placed offline during non-market hours.
• There is no limit to information available online in sites
• For NRIs this is the easiest option to invest in Indian markets.
• Record of all transactions are available at your fingertips.
• The overwhelming advantage of online share trading is convenience.
• While normally, you deal with a broker and own paper shares, with online trading everything is very
simple, fast, and efficient and effective.
• Real time stock trading without calling or visiting broker's office.
• Display real time market watch, historical data, graphs etc
• Investment in IPO's, Mutual Funds and Bonds.
• Check the trading history; demat account balance and bank account balance at any time.
• Provide online tools like market watch, graphs and recommendations to do analysis of stocks.
• Place offline orders for buying or selling stocks.
• Set alert to inform you certain activity on the stock through email or sms.
• Customer service through Email or Chat.
• Secure transactions.
Disadvantages of Online Trading
• Website performance - sometime the website is too slow or not enough user
friendly.
• Little long learning curve especially for people who doesn't know much about
computer and internet.
• The fees involved in trading vary considerably with broker, market, ECN and
type of trading account and software.
Some online brokers may also charge inactivity fees on traders.

• Traders need to have internet and computer in their home, because threat of
information theft exists if he access at internet cafes
• Volume Requirement: Some firms charge inactivity fees if a minimum
monthly trading volume has not been met.
• Knowledge: New and inexperienced traders may find it difficult to become
familiar with direct access trading. Knowledge is required when dealing with
something like making trade decisions & order routing
 Share Market
Stock Exchange

SEBI Custodians
control

Broker
Bank Account

Trader
 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. visit
www.chittorgarh.com to see the list of Stock
Exchanges in India
• Investor can trade stocks in any of the stock
exchange in India
 BSE Vs NSE
BSE NSE
•Index •Sensex •NIFTY
•Started at •1986 •1992
•Base year •1978 – 79 •1995
•No. of Companies •5034 •1552
No. Index movers •30 •50
•Location •Mumbai •New Delhi
•Calculation
•Free float market capital •Free Float Market capital
method

•Base value •100 •100

 Indices in BSE , NSE
BSE NSE
•SENSEX S&P CNX NIFTY
•BSE 100 BSE 200 BSE 500
CNX NIFTY JUNIOR
•BSE Mid Cap Index BSE Small Cap
Index CNX 100
S&P CNX 500
Sectoral Indices
CNX MIDCAP
BSE Auto BSE Bankex
BSE Capital Goods Consumer NIFTY MID CAP 50
Durables FMCG
Health Care IT
S&P CNX DEFTY
Metal Oil & Gas CNX IT
Power PSU
Realty TEC k BANK NIFTY
Dollar Linked Indices CNX INFRA
•Dollex 30 CNX REALTY
•Dollex 100
•Dollex 200
 International Market Indices
• USA - NASDAQ, S & P 500,
Dowjones Ind.Avg
• Singapore - Straight Times
• Hong Kong - Hangseng
• Japan - Nikkei 225
• Germany - DAX
• United Kingdom - FTSE 100
• China - SSE 180 Composite Index
(Shanghai)
 Stock Trading
• Stock Trading
• Traditionally stock trading is done through stock brokers, 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.
• 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 stock broker for the investor .
They are registered with one or more Stock Exchanges. Mostly Online Trading Websites
in India trades in BSE and NSE.
• Types of Stock trading online
• 1. Installable software based Stock Trading Terminals
• 2. Web (Internet) based trading application
 Custodian
• What Does Custodian Mean?
A financial institution that has the legal
responsibility for a customer's securities.
This implies management as well as
safekeeping.

• There are 345 custodians existing in India.

 Some major Custodians in India
• HDFC Securities Ltd.
• Share Khan Limited
• SBI Cap Securities Limited
• ICICI Securities Limited
• Karvy Stock Broking Ltd.
• TATA Securities Ltd.
 Broker
• What Does Broker Mean?
1. An individual or firm that charges a fee or commission
for executing buy and sell orders submitted by an investor.
2. The role of a firm when it acts as an agent for a customer
and charges the customer a commission for its services.
3. A licensed real estate professional who typically
represents the seller of a property. A broker's duties may
include: determining market values, advertising properties
for sale, showing properties to prospective buyers, and
advising clients with regard to offers and related matters.
Bear and Bulls
A bear market is a general decline in
the stock market over a period of time.
It is a transition from high investor
optimism to widespread investor fear
and pessimism.

A bull market is associated with increasing

investor confidence, and increased investing
in anticipation of future price increases
(capital gains). A bullish trend in the stock
market often begins before the general
economy shows clear signs of recovery
 Influences on share prices
• Company profile and Performance History
• Trend in the share price for certain period
• Natural calamities, national and international
• Political issues
• Government policies, subsidies, sops, ex-im policies
• EPS, PE Ratio, Profit%, Quarterly, half yearly, yearly results
• Budget allocations to the particular sector
• Effect of international policies
• Foreign Investments
• Bulk Deals
• Supply & Demand – More sales low price, More purchases high price
• Seasonal agriculture yield
• Seasonal demand of goods
• Market sentiments
• Speculation by Bulls and Bears.
 Sectoral Indices
• Automobile
• IT
• Bankex
• Consumer durables
• FMCG
• Oil & Gas
• PSU
• Reality
• Health Care
• Metal
• Telecommunication
• Power
• Consumer Goods
 Sources of Information
• News Papers - Economic Times
Finance columns of
Eenadu and other news papers.
• Internet websites - Rediff money,
Google finance,
Economic Times,
Bazaar Trend, and websites of
custodians.
• Television - ET Now,
ND TV Profit,
HM TV, etc.
 Technical Analysis
Dependent on Intuition
and Interpretation
Analysts interpret price charts depending on
the pattern of movement - head-and-
shoulders patterns, double-bottoms, flags and
pennants etc. These patterns are used by
analysts to predict share price movements . to spot buying or selling opportunities.
Analysis of Data
Analysts rely on complex calculations of
numbers, to crunch raw price and volume
data. After this analysis process, the
secondary indicators, i.e., oscillators, moving
averages, bands, etc, are calculated and used
Analysts use software, scientific methods,
complex equations and complex
mathematical formulas to derive indicators .
Bollinger Bands
Exponential Moving Averages
Envelopes (5%)
Parabolic SAR
Simple Moving Averages
 Do’s & Dont’s by SEBI
SEBI has  laid down certain Guidelines for Dealing with Brokers & Sub-brokers

Do’s
Here are the DOs
Deal only with SEBI-registered brokers/sub-brokers.
Ensure that the broker/sub-broker has a valid SEBI registration
certificate.
Ensure that the broker/sub-broker is permitted to transact in the market.
State clearly to the broker/sub-broker who will be placing orders on
your behalf
Insist on client registration form to be signed by the broker/sub-broker
before commencing operations.
Enter into an agreement with your broker/sub-broker setting out the
terms and conditions clearly.
Insist on contract note/ confirmation memo for trades done each day
Insist on bill for every settlement.
Ensure that broker’s name, trade time and number, transaction price and
brokerage are shown distinctly on the contract note.
Insist on periodical statement of accounts.
Issue cheques/drafts in trade name of the broker only.
Ensure receipt of payment/ deliveries within 48 hours of payout
In case of disputes, file written complaint to the broker/sub-broker, to
the stock exchange of which he is a member and to SEBI within a
reasonable time.
In case of sub-broker disputes, inform the main broker about the dispute
within a maximum of 6 months.
Familiarise yourself with the rules, regulations and circulars issued by
the stock exchanges/SEBI before carrying out any transactions.
Don’ts
Watch out for the DON’Ts
Don’t deal with unregistered broker/sub-broker
Don’t pay more than the approved brokerage to the intermediary.
Don’t undertake deals on behalf of others.
Don’t neglect to set out in writing orders for higher value given earlier
over the phone.
Don’t sign blank delivery instruction slip(s) while meeting security pay-
in obligation
Don’t accept unsigned/duplicate contract note/confirmation memo
Don’t accept contract note/confirmation memo signed by any
unauthorised person.
Don’t delay payment/deliveries of securities to the broker/ sub-broker.
Don’t get carried away by luring advertisements
Don’t be led by market rumours or get into shady transactions
All the best in your Stock market Trading endevour
 HDFC Securities Limited
• HDFC securities Ltd, a trusted financial services intermediary is a subsidiary of India's respected
private sector Bank - HDFC Bank.
A leading stock broking company having completed 10 years in operation, serves a diverse customer
base of retail and institutional investors.
•
Discerning investors experience a robust platform to trade in Equities, derivatives, currency futures
and mutual funds through both NSE & BSE and other investment options like IPO's, bonds,
corporate fixed deposits,insurance etc.
•
Investors are also provided with niche - Equity Investment advise and execution platform with
superior technology aid and unbiased research across sectors, economy and scrips.
Our webportal is designed to meet the requirements of everyone from a beginner to a savvy and
well-informed trader with highest service standards,convenience and hassle-free trading tools.
The Webportal aims to provide a one stop window for all financial needs with seamlessness and
customer centric services
•
 HDFC Securities Limited
• WEBPORTAL
Based on Web 2.0 technology.
SPEED
State-of-the art technology enabling seamless trading experience on both the exchanges
BSE and NSE.

• Clients could adopt to trade with us either online, or on the phone, or relationship
managers from the convenience of their home or office.
• The 4-in-1 Advantage account  enables clients to seamlessly move funds and securities
across your bank, demat and trading account.
• Clients get to enjoy limits across exchanges to trade
• No need to issue cheques or delivery instructions.
• Place IPO / NCD applications via few clicks using the trading account or by the phone.
No standing in queues or filling application forms.
• ASBA application facility.
• Customer care centre to address all queries and grievances.
 HDFC Securities Limited
• REACH
HDFC securities has a strong unified call centre catering to clients across India and overseas aiding clients who wish to
have their orders placed by a tele-agent. 7 Regional language call centre facility is available for clients.
 
Over 128 exclusive branches across India also service clients locally by dedicated relationship managers.

TRANSPARENCY
With our trusted pedigree, a client can be assured of best services in a transparent manner and is in total control of their
funds and stocks.

EXPERTISE
With a decade of experience and a rating of A1+1, HDFC securities has a admired lineage of providing financial services
to customers in a transparent and trusted manner. We have a dedicated, motivated and experienced team of professionals
to provide you top class service.

TIMELY AND RELEVANT INFORMATION

We realize the importance of making information available to clients as it happens. Empowered with the latest news,
developments and unbiased research, enables a client to take informed decisions.

YOUR INTEREST
For HDFC securities, client's interest comes first. We endeavor to provide high quality investment services, in a simple,
direct and cost-effective manner to help you achieve your financial goals.
 HDFC Securities Limited
• OUR OFFERINGS' ONE STOP SHOP, FOR ALL YOUR INVESTMENT NEEDS

• Equity and Derivatives

• IPO
• Mutual Fund
• Fixed Deposits
• Non Convertible Debentures
• General Insurance
• Life Insurance
• Bonds
• Currency Derivatives
• PMS
•
REGISTERED OFFICE / CORPORATE OFFICE
HDFC Securities Limited
Office Floor 8, "I THINK" Bldg,
Jolly Board Campus,
Kanjurmarg (East),
Mumbai - 400042. India.
Tel : 022 - 30753400
Fax : 022 -30753435
 HDFC Securities Limited
• Resident Account Opening

• To Open An Account :-
Step 1: Fill the online application form, or you may call us on our
toll-free number at 1800-209-9700 or on 91-22-61411700
Step 2: Keep the minimum essential documents ready and our
representative will contact you and come over to collect these, and
complete the application formalities.

• Step 3: Within two weeks of submitting the form you shall receive
your online trading login and password and can start trading online
right away.
 Trading online procedure

Login

Buy transactions Sell transactions

System checks buying limits

System checks DP Account Quantity

Orders Accepted Orders accepted

Rejected orders will be
communicated along with reasons

Order is transmitted to exchange for execution

Amount will be deducted/deposited in

Execution is displayed on the the
screen immediately traders bank account

Confirmation could be sent to traders Contract note would sent to trader by

e-mail and mobile mail or hand delivery.
 The information of services available to the online trader.

Buy & Sell Place your equities or derivative orders.

Order Book View the list and current statuses of the orders you have placed during the day but which have not been traded in the exchange as yet.

Trade Book View the list of orders that have been traded during the day.

Quotes Retrieve the latest quotes and other vital trading information for the stock of your choice.

Place and release fund holds from your Bank accounts to cover the cash or margin trades you make.
Funds Hold/Release
A funds hold is a block made in your HDFC Bank account exclusively for trading purposes. Once a funds hold is created, the hold amount cannot be
used for purposes other than trading.

Place and release holds from your HDFC Bank demat accounts when you need to sell shares.
Securities
Hold/Release A securities hold is a block made in your HDFC demat account exclusively for trading purposes. Once a securities hold is created, the quantity on hold
cannot be used for purposes other than trading.

Option Calculator Use this calculator to determine the theoretical premium for option contracts.

Cost of Carry
For futures contracts, use this tool to calculate the storage cost and the interest paid to finance the underlying asset.
Calculator

Password Update your login password from here.

 References
• www.nseindia.com
• www.bseindia.com
• www.rediff.com/money
• www.hdfcsec.com
• www.investopedia.com
• A book on Fundamentals of Investments by
Gordon. Alexander, William F.Sharpe &
Jeffery V. Bailey
 Conclusion
• Online trading is a great experience by the trader to buy and sell shares
online. But, trader must be aware of internet usage, beware of
phishing, hacking, maintain secrecy of passwords, have their own set
up of computer with internet communications.
• Trader holding a PAN Card is mandatory for trading.
• HDFC Securities online trading is continuously improving their
services and modifying their website to become more user friendly to
the trader.
• This website gives us a clear picture of trend in share price movements
of each and every scrip to enable us to make a correct decision.
• Online trading facilitates the trader to have a convenient trading, fast,
reliable, and informative experience.
• Online trading is environmental friendly, because, there is no paper
work involved in the 90% of online trading.
Thank you