157491334 Online Trading Project

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A STUDY

ON

INVESTOR AWARENESS TOWARDS ONLINE TRADING

AT

ZEN SECURITIES LIMITED

PROJECT REPORT

Submitted to KAKATIYA UNIVERSITY

In partial fulfillment of the requirement for the award of the

MASTER OF BUSINESS ADMINISTRATION

BY

(Affiliated to Kakatiya University, Warangal)

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CERTIFICATE

This is certify that project entitled INVESTORS AWARENESS TOWARDS ON-

LINE TRADING SYSTEM at ZEN SECURITIES LIMITED, Peddapelly by --------

bearing -------------for the requirement of partial fulfillment of completion of Post

Graduation course MASTER OF BUSINESS ADMINISTRATION from

-------------------------- affiliated to KAKATIYA UNIVERCITY, WARANGAL for the

academic period of 2007-2009 is a bonafide work carried out by her under my

guidance and supervision.

guide

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DECLARATION

I, the undersigned hereby declare that the project work entitled INVESTER

AWARENESS TOWARDS ONLINE TRADING SYSYTEM with reference to ZEN

SECURTIES LTD, written and submitted by me to ------------------ is of my own

efforts. The empirical finding in this report is based on the data collected by myself

during my practical exposure to the problem. I declare that this report is original

and had not been copied from others submitted earlier to any other universities.

Place :.

Date :

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ACKNOWLEDGEMENT

I wish to express my deep sense of gratitude to the people who have given

their valuable suggestion, guidance and their valuable time in the successful

completion of my analysis.

I sincerely express my heart full thanks to -----------------, Principal,

--------------- COLLEGE for giving me an opportunity to do my project in

INVESTORS AWARENESS TOWARDS ONLINE TRADING SYSTEM

I am thankful to --------------------------, for his valuable guidance which

helped me to bring a satisfactory shape to my project. I also thank other faculty

members for guiding me for the project work and helped me to complete this

project.

I am indebted to Mr. K.VENU, B.M., ZEN SECURITIES LTD for giving me

this opportunity do the project from their Organization for providing helpful

information and his support and guidance for this project.

I would like to extend my heart full gratitude especially to my parents and

other family members and friends for their constant support and encouragement.

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CONTENTS

CHAPTER-I

1 - 5

Introduction.

Need of the study.

Objective of the study

Methodology of the study

Limitation of the study

Scope of the study

CHAPET-II - Company profile.

6 - 25

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CHAPET-III - Conceptual Framework.

26 - 36

CHAPET-IV - Analysis is Interpretation.

37 56

CHAPETR-V - Conclusion & Suggestion.

57 61

CHAPETR-VI - Bibliography.

62 -63

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CHAPTER-I

INTRODUCTION

A STUDY

ON

INVESTOR AWARENESS TOWARDS ON LINE

TRADING

INTRODUCTION ON ONLINE TRADING:

The actual definition of On-Line Trading is as explained below:

On-Line trading is service offered on the internet for purchase and

sale of shares, in the real world an investor places orders to stock brokers.

Either verbally or in a written form (fax).

OFFLINE :

Offline trading is benefit from discussing with financial advisor the benefits

of trading online.

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A brief explanation about Internet:-

Internet is a world wide self governed network connecting several

other smaller network and million of computers and persons to merge

sources of information. This technology is vast distance accelerating the

pace of business forms and revolutionizing the many companies are

managed, it allow direct links to anyone anywhere and any time to build up

interactive relationship.

A combination of time and space called the internet promises to bring

un precendented changed in our lives and business Internet or net is an

inter connection of computer communication network spanning the entire

globe crossing all geographical boundaries it has re defined the method of

communication work study education, Business leisure health trade banking

commerce and what not it is virtually changing everything and we are living

in dot.com age.

Net being an interactive two way medium through various websites

enables participation by individually in business to business to consumer

commerce visit to shopping arcades, games, etc., in cyber space even theinformation can be copying, down loaded and retransmitted.

The use of internet has grown 2000 percent in last decade and is correctly

growing 10 percent per month in India growth of internet is of recent times.

It is expected to bring changes in every functional area of business activity

including marketing and financial services.

It offers stock trading at a lower cost, internet can change the nature andcapacity of stock broking business in India.

E- COMMERCE:

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Electronic Commerce is associated with buying and serving over

computer communication networks, it helps conduct traditional commerce

through new way of transferring and processing of information.

Information is electronically transferred from computer to computer in

an automated way. E- Commerce refers to the paperless exchange to

business information using electronic dates interchange electronic

technology, it is not only reduce manual process and paper transaction but

also helps organization more to a fully electronic environment and change

the way they operated PCs and networking attempts to introduce banks of

the tools and technologies required for electronic commerce. The

computers are either workstation of individual office work or serves where

large database and information resides.

Networks connects both categories of computer the various operating

system are the most basis programmed with is a computer it manages the

resources of the computer system in a fair and efficient manner.

Now we can enter into the concept known as On Line Trading.

In the past investor had no option but contact their broker to get real

time access to market data, the net brings data to the investor On line and

net broking enables him to trade on a click of mouse, Now information has

because easily accessible to both retail as well as big investor.

NEED FOR THE STUDY:

The purpose into review the On-line Trading procedure a case study of

On-Line trading at zen securities as the exchanges has changes its trading

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from the out cry mode to On-Line trading 20 th February, 1997 there is need

to assets the performance of the capital market.

OBJECTIVES OF THE STUDY:

1) It is to analyze the change in trading after the exchange shifted from

outcry to On-line trading system.

2) To analyze conceptual frame work regarding On-line trading.

3) To evaluate about the latest development in the stock exchange

trading system.

4) To analyze the investors awareness about On-line trading.

5) To bring out the investors expectations regarding on-line trading to be

simplified further.

6) To offer suitable suggestions up on drawn conclusions.

METHODOLOGY OF THE STUDY:

The data collection methods include both Primary and Secondary collections

methods:

- Primary data collection Method.

- Secondary data collection Method.

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PRIMARY METHOD:

Primary method includes the data collected directly from the

authorized members of Zen securities. An appropriate questioner is served

to the investing community for collection primary data. And also data

collected from discussion with Zen securities officially.

SECONDARY METHOD:

The secondary data collection method includes the lecturers delivered

and material provide by Zen securities Ltd., the date collections from the

magazines of the NSE, Economics time various books relating the

investment, Capital Market and other related topics.

LIMITATIONS OF THE STUDY:

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The study is confined to On-line trading procedure On-line problem

of listing are not covered due to time and to keep the study in

manageable limits. The study reflects the awareness of Karimnagar

investors only.

SCOPE OF THE STUDY:

The present study is to know the details regarding the trading through

On-line system.

The project also studies the impact of On-line trading system in the

market and also trading of Government Securities in stock exchange.

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CHAPTER - II

COMPANY PROFILE II

ZEN SECURITIES:

Zen Securities Limited is one of the leading financial service

companies providing financial and investing related service and products.

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The Company commenced as a proprietary concern of M/s. Ravindra

Babu in 1986 was converted to a Limited Company in February 1995 as Zen

securities ltd., Zen has the distinction of being ( First corporate member

from Hyderabad and also the first A.P., based broking Firm to start trading

on the National Stock Exchange).

We at Zen totally rededicate our served to continue to build the

organization on sound foundation of trust, values and relationship with

clients servicing their investment needs a set our by founder Sri K. Ravinder

Babu.

29th August 2008 Zen Securities launches BRAND NAME as ZEN MONEY.

17th April 2008 Zen Securities appoints new MD and Jt.MD.

31st May 2005 Zen Securities opens branch in Jubilee Hills,

Hyderabad.

5th July 2005 Zen Securities opens new branch in Tarnaka,

Hyderabad.

Directors of Zen Securities Ltd., have considerable experience and

expertise ranging over many industries such as financial services

Pharmaceuticals manufacturing banking and information technology among

others. They are some of most highly respected people in their professional

circles.

Mr. PRATHAP KANTHETI, Managing Director:

Mr. Prathap Kantheti is the Managing Director of the Company. He is a

chartered Financial Analyst (CFA) and also has a Masters in Business

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Administration (MBA) in Finance. He has a deep understanding of and

exposure to the financial service.

DIRECTORS:

Mr. K. Gandhi - Director

Mr. Sathyanarayana Ch. Ravi - Whole Time Director

Mr. Sambasiva Rao Pratibandla - Executive Director

Mr. Narayanan - Director

Mr. Ajay Kumar Mikkilineni - Director

Mr. D. Madhusudhan Rao - Director

Mr. K. Narasimha Rao - Director

Mr. Namashivaya Renukuntla - Director & Head of

Compliance.

Mr. Pratap Kantheti - Managing Director

Mr. Satish Kantheti - Managing Director

Directors of Zen Securities Ltd have considerable experience and

expertise ranging over may industries such as financial service

Pharmaceutical Manufacturing banking and information Technology amongothers. They are some of the most highly respected people in their

professional.

Zen is also a depository participant with National securities depository

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Tamilnadu, Maharashtra, Karnataka, West Bengal and Orissa. The Company

operates from over 140 locations with over 50 trading terminal. Internet

trading is easy, convenient and reliable with Zen trade.

Advantages of Zen Trade Internet Trading Platform:

Flexible and advanced trading platform.

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23p23a23r23t23i23c23i23p23a23n23t23 offering flexible cost effective and

transparent depository services to its clients. Zen is a Depository

Participant with the National Securities (India) limited for trading and

settlement of dematerialized shares. Zen performs clearing services for all

securities transactions, through its accounts. Zen offers Depository services

to create a seamless transaction platform execute trades through Zen

securities and settle these transaction through the Zen depository services.

Zen depository services is a part of our value added services for our

clients that creates multiple interface with the client and provides for a

solution that takes care of our your needs.

Basic Services provides by Zen DP.

Accounting Opening.

Account Transfer Market and Off Market.

Dematerialization.

Pledge.

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Services:

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24! 24M24u24t24u24a24l24 24F24u24n24d24s24 24K24Y24C24

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24! 24T24a24x24 24S24a24v24i24n24g24 24B24o24n24d24s24.24

24

24 24 24 24 24Z24E24N24

24M24O24N24E24Y24

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25 25 25 25T25h25e25 25a25r25t25 25o25f25

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25

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25Peddapally,

KARIMNAGAR 505172

Ph: 08728-224023,

9346908288

9347759194

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Indian Financial System

FinancialInstitution

FinancialMarket

FinancialInstrument

Regularly

OthersOrganiz

edUn

organizedPrimary

Intermediary

Non-Intermediar

yPrimary

Secondary

Short Term

Banking

Non Banking

CapitalMoneyMarket

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FINANCIAL MARKET:

Financial Markets are helpful to provide liquidity in the system and for

smooth. Functioning of the system. These markets are the provide facility

for buying and selling of financial times and services). The financial market

match the demands of investment with the supply of capital from various

sources.

Based on functions financial markets are classified in two types. They are:

272

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27(27L27o27n27g27 27t27e27r27m27)27

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27

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27

27 27T27h27e27 27o27r27g27a27n27i27z27e27d27

27m27a27r27k27e27t27 27c27o27m27p27r27i27s27e27s27 27o27f27

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28o28f28f28i28c28i28a28l28s28 28m28a28r28k28e28t28

28r28e28p28r28e28s28e28n28t28e28d28 28by re organized institutions

bank and govt. (SEBI) registered/ controlled activities and intermediaries.

The unorganized market is of indigenous banks money lenders individuals

professional and non-professionals.

MONEY MARKET:

Money market is place where we can raise short term capital.

the money market Is classified into

282

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82828282828282828282828282828282828282828282828282828282828!

28I28n28t28e28r28 28B28a28n28k28 28c28a28l28l28

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28! 28B28a28n28k28 28z28o28n28e28 28M28a28r28k28e28t28

28e28t28c28,28

28

28

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28

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28

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28p28l28a28c28e28 28w28h28e28r28e28 28w28e28 28c28a28n28

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29r29a29i29s29e29 29l29o29n29g29 29t29e29r29m29

29c29a29p29i29t29a29l29.29

29A29g29a29i29n29 29t29h29e29 29c29a29p29i29t29a29l29

29m29a29r29k29e29t29 29i29s29 29c29l29a29s29s29i29f29i29e29d29

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29t29h29e29y29 29a29r29e29

29

29! 29P29r29i29m29a29r29y29 29M29a29r29k29e29t29

29! 29S29e29c29o29n29d29a29r29y29 29M29a29rket

PRIMARY MAREKET:

Primary Market is generously referred to the market of new issues or

market or mobilization of resources by the companies and govt. undertaking

for new project as also for expansion modernization addition and

diversification and up gradation. Primary market also referred to as new

issues market primary market operation include new issues shares by new

and existing companies further and right issue to existing shares holders

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) govt. regulated authorities.

FUNCTION:

The main services of the primary market are organization underwriting

and distribution origin of the new issue underwriting contract make the

shares predicable and remove the element of uncertainty in the

subscription, distribution refer to the sale of securities of the investors.

The market inter mediaries associates with the market.

1) Merchant buyer / book building leader manager.

2) Register and transfer agent.

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3) Underwriter / Broker to the issue.

4) Advise to the issue.

5) Banker to the issue

6) Depository

7) 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 has widely of investor

protection are:

303

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30

30

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30d30e30a30l30s30 30w30i30t30h30 30n30e30w30 30i30s30s30u30e30

30o30f30 30s30e30c30u30r30i30t30i30e30s30 30a30r30e30

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31t31r31a31d31e31r31 31i31n31 31t31h31e31

31s31e31c31o31n31d31a31r31y31 31m31a31r31k31e31t31

31w31h31i31c31h31 31i31s31 31commonly known as stock market or stock

exchange the secondary market is a market where script are traded , it is

a market place which provide liquidating to the script issued in the primary

market, these the growth of secondary market depends on the primary

market. More the number of companies entering the primary market the

greater are the volume of trade at the secondary market.

Trading activities in the secondary market are done through the

recognized stock exchange which the 23 in number including over the

counter exchange of India (OTCE) national stock exchange of India and intercom stock exchange of India.

Secondary market operations involve buying and selling of securities

on the stock exchange through its members, the companies hitching the

primary market are mandatory to list their shares on one or more, stock

exchanges in India. Listing of scrips provides liquidity and offers an

opportunity to the investor to buyer sell the scrips.

The following are the intermediaries in the secondary market.

HISTORY OF STOCK EXCHANGE:

The only stock exchange operating in the 19th century were those of

Bombay set up in 1875 and Ahmadabad set up in 1894. These were

organized as voluntary non profit marketing associated of brokers to

regulate and project their interests, before the control on securities under

the Bombay securities contracts act to 1925 used to regulate trading in

securities. Under this act the Mumbai stock exchange was recognized in

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1927 and Ahmadabad in 1937, during the war boom a number of stock

exchange were organized. 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 committee

recommendations and public discussion. The securities recommendations

and public discussion the security contract act become law in 1956.

FUNCTIONS OF STOCK EXCHANGE:

Stock Exchange provides liquidity to the listed Companies. By giving

to the listed Companies they help trading and raise funds from the market

over the hundred and twenty year during which the stock exchange have

existed in this country and through their medium the central and state Govt.

have raised crores of rupees by floating public loans, municipal corporations

trust and local bodies have oriented from the public their financial

requirement and industry trade and commerce the back bone of the country

economy have secured capital shares and debentures for financing their

day-to-day activities, organizing new venture and completing projects of

expansion diversification and modernization. By obtaining the listing andtrading facilities public investment in increased and companies were able to

raise more in increased and companies were able to raise more funds, the

quoted companies with wide public interest have enjoyed some benefits and

assets valuation has became easier for tax and other purpose.

1) Broker/ member of stock exchange buyers broker and server broker.

2) Portfolio Manager.

3) Investment Advisor4) Share Transfer agent

5) Depository

6) Depository Participation.

STOCK MARKET IN INDIA:

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Stock exchanges are the perfect type of market for securities whether

of Govt. and semi Govt. bodies or other public bodies as also for shares and

debentures issued by the Joint stock Companies in the stock market

purchases and sales of shares are affected in conditions of competition,

Govt. securities are traded out side the trading ring in the form of over the

counter sales or purchase.

The bargains that are stock in the trading ring by the member of the

stock exchanges are at the fairest price determined by the basis laws of

supply and demand.

DEFINITION OF STOCK EXCHANGE:

Stock Exchange means any body or individuals whether incorporated

or not constituted for the purpose of assisting regulating or controlling the

business of buying selling or dealing securities, the securities includes:

333

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33

33

33

33

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34

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34

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34w34h34i34c34h34 34r34e34c34o34m34m34e34n34d34e34d34

34p34r34o34m34o34t34i34o34n34 34o34f a national stock exchange byfinancial institutions to provide access to investor from all across the

country on an equal footing. Based on the recommendation (NSE was

promoted by leading financial institutions at the best of the government of

India and was incorporated in November 1992). As a term paying company

unlike other stock exchange in the country on its recognition as a stock

exchange under the securities contracts act 1956 in April 1993 NSE

commenced operations in the wholesale debt market (WPM) segment in

June1994. The capital market segment commenced operations in November

1994 and operations in derivatives segment commenced in June 2000.

NSE mission is setting the agenda for change in the securities market

in India. The NSE was set up with the main objectives are:

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353

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36t36e36c36h36n36o36l36o36g36y36,36 36h36a36ve became industry

bench mark and are being cumulated by other market participants. NSE is

more than a more market facilitator. Its that force which is guiding the

industry towards new horizons and grater opportunities.

BSE :

The stock exchange Bombay popularly known as BSE was

established in 1875 as The Native share and stock broken Associates. It is

the oldest one in Asia even older than the Tokyo stock exchange which was

established in 1878. It is a voluntary non-profit making association of

personal and is currently engaged in the process of converting it self into

demutualised and corporate entity. It has involved over the years into its

present status as the premier stock exchange in the country. (It is the first

stock exchange in the country to have obtained permanent recognition in

1956 from the Govt. of India under the securities contracts Act 1956). The

exchange while providing an efficient and transparent market for trading in

securities, debt and derivatives upholds the interests of the investors andensure redresses of their grievances whether against the companies or its

own member brokers, it also strives to educate and en lighter the investor

education programmer and making available to them necessary information

inputs.

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A Governing Board having 20 directors is the apex body which decides

the policies and regulates the affairs of the exchange, the governing board

consists of 9 elected directors who are from the broking community three

SEBI nominees six public representatives and an executive director & chief

executive officer and a chief operating officer.

The Executive Director as the chief Executive Officer is responsible for

the day to day administration of the exchange and the chief operating

officer and other heads of Department assist him.

The exchange has inserted new rule No.126 A in its rule By laws

pertaining to Constitution of Executive Committee of the exchange.

Accordingly an executive committee consisting of three elected directors

three SEBI nominees or public representative executive director & CEO and

chief operating officer has been constituted, the committee considers

judicial & Quasi matter in which the governing board has power as an

appellate Authority matters regarding annulment of transactions, admission

continuance and suspension of member brokers declaration of a member

broker as defaulter norm procedures and other matter relating to arbitration

fees deposits margins and other monies payable by the member brokers

to the exchange.

Regulatory frame work of 37 37 S 37 t 37 o 37 c 37 k 37

37 E 37 x 37 c 37 h 37 a 37 n 37 g 37 e 37 :37

37

37 37A37 37c37o37m37p37r37e37h37e37n37s37i37v37e37

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37a37n37d37 37 S37e37c37u37r37i37t37i37e37s37

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38E38x38c38h38a38n38g38e38 38B38o38a38r38d38 38o38f38

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38

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38

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40S 40 E 40 C 40 U 40 R 40 I40 T 40 I40 E 40 S 40 40 A 40 N 40 D 40

40 E 40 X 40 C 40 H 40 A 40 N 40 G 40 E 40 40 B 40 O 40 A 40 R 40 D 40 40 O 40 F 40

40 I40 N 40 D 40 I40 A 40 40 ( 40 S 40 E 40 B 40 I40 ) 40 :4040

The Securities and Exchange Board of India was constituted in 1988

under a resolution of Government of India, it was later made statutory body

by the SEBI Act, 1992.

According to this act the SEBI shall constitute of a Chairman and four

other members appointed by the Central government.

With the coming into effect of the Securities and Exchange Board of

India Act 1992 some of the powers and functions exercised by the Central

Government in respect of the regulation of stock exchanges were

transferred to40 40t40h40e40 40S40E40B40I40.40

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and exercising such powers under the provisions of Capital issues Act

947 and the Securities to it by the Central Government.

SEBI GUIDELINES TO SECONDARY MARKETS (STOCK EXCHANGE):

Board of Directors of Stock Exchange has to be reconstituted so as to

include non-member public representative and Government representative

to the extent of 50% of total number of members.

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Capital adequacy norms have been laid down for the members of

various stock exchanges depending upon their turnover of trade and other

factors.

All recognized stock exchanges will have to inform about transactions

with in 24 hrs.

TYPES OF ORDERS:

Buy and sell orders placed with members of the stock exchange by the

investors, the orders are to different types.

Limit Orders:

Orders are limited by a fixed price, eg. Buy Reliance Petroleum at

Rs.50/- Here the order has clearly indicated the price at which it has to be

bough and the investor is not willing to give more than Rs.50/-.

Best Rate Order:

Here the buyer or seller gives the freedom to the Broker to execute

the order at the best possible rate quoted on the particular date for buying

it may be lowest rate for buying and highest rate for selling.

Discretionary Order:

The Investor gives the range of price for purchase and sale, the broker

can use his discretion to buy with in the specified limit. Generally the

approximation price is fixed, the order stands as this buy BRC 100 shares

around Rs.40/-.

Stop Loss Order:

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The Orders are given to limit the loss due to unfavorable price

movement in the market. A Particular limit is given the broker is authorized

to sell the shares to prevent further loss.

Eg:- Sell BRC Limited at Rs.24/-, stop loss at Rs.22/-.

BUYING AND SELLING SHARES:

To buy and sell the shares the investor has to locate register broker or

sub broker who render prompt and efficient service to him, the order to buy

or sell specifying the number of shares of the company of investors choice is

placed with the broker. The order may b of any type. After receiving the

order the broker tries to execute the order in his computer terminal. Once

matching order is found. The order is executed, the broker then delivers the

contract note to the investor, it gives the details regarding the name of the

company number of shares bought, price, brokerage and the date of

delivery of share in this physical trading form one the brokers gets the share

certificate through the clearing houses he delivers the share Certificate

along with transfer deed and stamp, it the stamp duty is one of the

percentage considerations the investor should lodge the share certificate

and transfer deed to the register or transfer deed to the register or transfer

agent of the company.

If it is bought in the DEMAT Form the broker has to give a matching

instruction to his depository participant to transfer share bought to the

investor account, the investor should be account holder in any of the

depository participant to transfer shares case of sale of shares on receiving

payment from the purchasing broker the broker effects the payment to the

investor.

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SHARE GROUPS:

The scrips traded on the BSE have been classified into A1, B1, B2, C, F

and Z groups, the A group represent those which are in the carry forward

system. The F group represents the debt market segment, the Z group

scrips are of the black listed companies, the C group covers the odd lost

securities in A, R1 & R2 groups.

HOLDING SETTLEMENT SYSTEM:

Under rolling settlement system the settlement takes place n days,

after the trading day the shares bought and sold paid in for n days after the

trading day to 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 negates the advantage of the system. Generally settlement

periods are short end gradually.

SEBI made is compulsory for trading in 10 securities selected on the

basis of the criteria that they were in compulsory Demat list and had daily

turnover of about Rs. one crore or more.

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Then it was extended to stocks in modified carry forward scheme

automated lending and borrowing mechanism and borrowing and lending

securities scheme with effect from Dec 31 2001.

SEBI has introduced its rolling settlement in equity market from July

2001 and subsequently shortend 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

investor from 1st April, 2003.

CHAPTER-III

CONCEPTUAL FRAMEWORK

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TRADING SYSTEM:

A trading system is simply a group of specific rules or parameters that

determine entry and exit points for a given equity. These points known as

signals are often marked on a chair in a real time and prompt the immediate

execution of trade.

Here some of the common46 46t46e46c46h46n46i46c46a46l46

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47a47l47s47o47 47m47a47n47y47 47l47e47g47i47timate successful

systems perhaps the most famous example the over developed and

implemented by Richard Dennis and Bill Eckharde, who are the original

Turtle trader in 1983 these two had a dispute over whether a good trader is

born or made. So they took some people on the street and trained then on

their now famous Turtle Trading System, they gathered 13 traders and

ended up making 80% annually.

TYPES OF TRADING

NORMAL TRADING:

Exposure of 4 times will be given to you for trading depending on

various parameters, in case of Buy position you will have a pay the balance

among on the same day, i.e., T day itself failing which, you will not be

around to take further position next day, in case of sell position the same

will be carried forward till T+1 evening we would request you to deliver the

shares before T+1 evening else the shares will be auctioned. Delivered of

shares must be done by issuing an instruction favoring investments and this

transfer of shares should be done before T+1 day end. Alternatively you

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can give us a standing instruction to debit your Demat account. You will

have to square off the sell position on or before T+1 marked closure by

placing square off orders.

MARGIN TRADING:

In margin trading is like cash trading 100% funds are not blocked at

the time of order placement, margin trading provides you with the capital to

become a much more active investor, so you can achieve your wealth

creation goals far earlier than ever though possible. You will have access to

a far greater of investment opportunities because you are not limited to

using your own capital.

Margin trading which is also known as intra day trading if you place a

buy order, you will have to place a sell order by the end of the day or vice

versa, the transaction placed by you in margin either needs to be squared

off or needs to be converted to delivery square of all your open position

before 3.00pm or else our system will do auto square off for all.

Such position you will have the position to take/give delivery of

buy/sell respectively if sufficient cash/security is available. However the

same will be allowed only up to 3.00 pm.

CASH TRADING:

For Cash trading is basically delivery based where in 100%

funds/shares are blockend at the time of placement of the order. If you

want to buy shares you should have the entire amount of funds in our cash

limit and if you want to sell shares the same should be available in your

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Demat account. For sell position your trading limits will be increased

immediately with sell track value. This will enable you to take further

position in the market. Cash product will facilities buy today and sell

tomorrow concept. Buy position is carried forward till T+1 end of day. The

same can be viewed in security projection. You can square off this position

if required before T+1 marked closure. On square off, your profit and loss

will be adjusted according in your trading limit.

ON-LINE TRADING:

On-Line Trading is a service offered on the internet for purchase and

sale of shares, in the real work you place a order with your stock broker

website through your internet enabled place order through your internet

based trading engine. These orders are routed to the stock exchange

without manual intervention executed their on in a matter of few seconds.

NEED OF ON-LINE TRADING SYSTEM:

1) DISCIPLINED ERROR FREE EXECUTION:

This method of trading is free of human emotion the buy and sell

operations are all automotive hands free with no manual interventions.

2) SPEED AND ACCURACY OF CALCUALTION AN EXECUTION:

Strategy runners servers can rein millions of analysis operations a day

decide to buy and sell upon present conditions making the trading risks very

minimum.

3) HAND FREE EXECUTION:

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The client trades automatically even when the clients is busy working,

travelling, sleeping, vacationing any time of day or night.

4) NON CORRELATED:

System seek to be profitable in both bull and bear market. In other

words profit or loss in trading system is not dependent on economic cycle on

matter prices are rising or falling there for historically, trading system have

had very little correlation to the stock and band market.

5) RISK RETURN:

While there is no guarantee of positive performance in the trading

system components of portfolio the non-correlation statistics of the trading

system and their ability to make profits in any economics environment

provide the opportunity for reduced portfolio risk and the potential for

enhanced portfolio returns.

6) TRANSPARENCY:

It allows client monitor there sys performance in real time in additionalall portfolio results are published throughout the trading sessions on

participating brokers websites providing tick transparency of the daily

performance.

STEPS INVOLVED IN ON-LINE TRADING SYSTEM:

Step-I : Emerging Trends with In your Competitive Environment:

Trading organizations which do this we are positioned to be on-line trading

market n the trade industries while organizations which do not rise being

blind sided emand which they did not anticipated and are not equipped to

handle.

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Step-II: How to bring On-Line Trading were demand by targeting most

profitable Customer:

On Line trading is neither homogenous non uniform it is composed of

distinct segment of customers who think feel and act in different ways about

your trading product category. Organizations that understand this can

ensure a royal customer trading franchise for years on end because they

understand they have set to trade better than any else.

Step-III: How to draw a relevant differentiation and Insulation via On-Line

Trading Strategic Choices:

An effective trading demand trade value proposition creates relevant and

differentiated benefits the value trade equation for its target customer their

by earning their trading loyalty and premiums for you to ensure continued

profitability and competitive trade insulation.

Step-IV: How to Increase pricing in elasticity with specific On-Line trading

Strategies and On-Line trading businens business trade system

and trading capabilities (your On-line trading supply) with the

trade demand you have chosen to purchase leveraging core

capabilities to deliver new trading products and customer

benefits quicking and continuously can generate significant on-

line trading price premiums.

Step-V:How to allocate On-Line trading resources according to the trade

priorities established by the On-Line trading value propositions to your

targeted trade demand:

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The tral physical and organizational go towards creating or strengthening

the On-Line trading Business strategies and trader systems developed in

step in trader resources allocation must be conducted intelligently to match

On-Line trading supply with target trade demand.

Step: VI: How to Plan implement and monitor a successful On-Line trading

Sf the step can hardly be over emphasized. A successful On-Line trading

execution of On-Line trading strategy requires careful preparation

structuring and on going trade observation.

MECHANISM OF ON-LINE TRADING SYSTEM:

The On-Line trading is simple as dealing sacrifices on net On-Line

trading system from a singly location anywhere can service investors across

the country.

Those interesting in buying and selling a script share had a contact to

jobbers brokers who would to the trading ring and make physical gestures,

inviting buy/sell quotes is the trading session from 11.30 am to 3.30pm.

On-lineeen based/ computerized trading known as Hyderabad On-line

securities trading (HOST) sys to cope with growing volume of business

ensure transparency in trading eliminate inherent flawed transaction for

investors protection and fall the growing competition.

TECHNICAL CONFIGURATION:

HOST (Hyderabad On-line Securities Trading) is built upon the proven

reactor (versatile engine for centralized trading and On-Line reporting).

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56 D 56 I56 S 56 A 56 D 56 V 56 A 56 N 56 T 56 A 56 G 56 E 56 S 56 :56

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56rm


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presence and personal attention commanded a price.

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IMPACT OF ON-LINE TRADING IN THE MARKET:

On the Number of transaction:

The number of transaction has increased considerably after

introduction of the On-line trading system, the factor of influence could be:

1) The case of the operations from the point of view of both the numbers

and investors.

2) Facilities better monitoring of the market by the market operations

department.

3) The daily that the best price is achieved in buying and selling.

VOLUME OF TRADING:

From the fact that the number of transaically it is almost apparent that

the volume of trading of would have increased.

Number of Members Participating:The introduction of On-line trading enables to do comfortable sitting in

their respective offices and doing the trading, more members can

participate in the trading owning to this which has been increased in a

number of trades from 100 to 200.

OTHERS:

From the trader point of view the following are the benefits with the

host.

1) Transparency of the system.

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2) Desk work reduced to minimum.

3) Free and perfect information is available to all the member and

investor needs to do transaction.

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CHAPTER-IV

ANALYSIS & INTERPRETATION.

In this study I have served the questionnaire for 120 sample investors

out of 120, only 95 questionnaires remained after scrutiny.

In Karimnagar I have approached people who are aware of online

trading.

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From the collected data of 95 respondents I have prepare 18 tables

with this data I am able to know the invest of various instrument and the

people who are responded are invested in securities and some people are

invested in gold, land real estate, etc.,

The data collected organized into 18 tables which is elaborately

analyzed in the following sections.

Are you an Investor in stock market :

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TABLE 4.1

EMBED MSGraph.Chart.8 \s

79

16

0

10

20

30

40

50

60

70

80

YES NO

From the study it is clear that respondents are aware of investing

options. 79% of respondents are aware of stock market and other financial

investment and 16% of respondents are not aware of investing process in

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YES NO

79 16


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stock market but they are aware of the investments like real estate, mutual

funds and bank deposits etc.,

2) INVESTMENT OPTION YOU PREFERRED:

Method ofInvesting

Equity Mutual fund Bank Real Estate

No. of

Responses19 41 44 5

TABLE 4.2


19

41

44

5

0

5

10

15

20

25

30

35

40

45

Equity Mutual Fund Bank Real Estate

From the study it is clear that investment option preferred is as follows.

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About 70% of respondents preferred the investment in mutual funds

as well as bank deposits due to the safely and investment planning by

AMCs .A moderate number of respondent (about 22%) preferred to invest

in stock market .Rest of 8% respondents preferred only real estate

investment.

This data reveals that the common investor is keenly looking at safely

of principal in this volatile stock market.

3) Do you have DEMAT Account.

TABLE 4.3

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YES NO

48 47


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48 47

0

5

10

15

20

25

30

35

40

45

50

Yes No

This question reveals that the number of respondents opened DEMATaccount so far of the total respondents spread of half are towards DEMAT

account which means only 48 respondents are investing electronic form of

share and remaining people are invested in other traditional investment

options where there is no need of DEMAT account.

4) For online trading what are the essential for an investor:

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PAN Card DEMAT A/c Bank A/c All options

24 24 23 24

TABLE 4.4


24 2423

24

0

5

10

15

20

25

PAN Card Demat Bank All options

Only 24 respondents are aware of total requirements for stock trading

and investment remaining 71 respondents does not have awareness on

base requirement for stock market investment and they are not actively

investing in stocks.

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5) Are you a Long term investor or short term investor

TABLE 4.5


43

36

0

5

10

15

20

25

30

35

40

45

Long Term Short term

From the study it is clear that long term investor or short term investor.

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Long term Short term

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investment avenues like bank deposits and real estate to have the liquidity

as safely.

6) How long you are trading on-line.

Method ofInvesting

1 year 1yr - 2 yrs 2yr 5 yrs Above 5 yrs

No. of

respondents25 45 18 \s

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1st year

From the ple trading online.
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