“STUDY ON DEMAT ACCOUNT AND ONLINE TRADING”

BACHELOR OF COMMERCE

ACCOUNTING AND FINANCE

YEAR 2018-2019

SUBMITTED

IN PARTIAL FULFILLMENT OF THE REQUIREMENT

FOR THE AWARD OF

DEGREE OF BACHELORS OF COMMERECE

ACCOUNTING & FINANCE

BY

ASHISH R. GUPTA

ROLL NO.:- 20

COLLEGE ADDRESS: -

LORDS UNIVERSAL COLLEGE

TOPIWALA MARG, OFF STATION ROAD,

GOREGAON WEST, MUMBAI 400104.

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 DECLARATION

I ASHISH R. GUPTA, student of LORDS UNIVERSAL

COLLEGE, studying in Bachelor of commerce (Accounting &
Finance), Semester VI, hereby declare that I have completed the
project on “Study on demat account and online trading” in the year
2018-2019.

The information submitted is genuine and practical to the best of

my knowledge.

SIGNATURE OF STUDENT

ASHISH R. GUPTA

ROLL NO.:- 20

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 ACKNOWLEDGEMENT

I would like to thank the University Of Mumbai fir giving me this

Opportunity of taking up such a challenging project which enhanced my

Knowledge about demat account and online trading.

I am very grateful to Mrs. Jasmina bhatt under whose guidance I was

Successfully able to complete my project. I wish to thank her for all the

Suggestions and guidance on the related topics of my work. I am thankful to

Her because of her friendly approach and kindness to me.

I would also like to thank the Librarian of our college for providing me

Relevant information and books in the library.

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 STUDY ON DEAT ACCOUNT AND ONLINE TRADING

Index

Sr. No. Title Pg No.

1 Chapter 1:- Introduction

1.1) Demat account

1.2) Online trading

2 Chapter 2:- research and methodology

2.1) Objective of research

2.2) Scope

2.3) Significance

2.4) Limitation

2.5) Sampling research

3 Chapter 3:- Review of literature

4 Chapter 4:- Analysis of data

5 Chapter 5:- Conclusion and Suggestion

5.1) Conclusion

5.2) Suggestion

6 Chapter 6:- Bibliography

7 Chapter 7:- Appendix

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 INTRODUCTION:-

DEMAT ACCOUNT
What is Demat Account? Trading in the stock market is very common these days. More
and more people are indulging in trading and investing in the stock market. The reason
for such increase in the participation in the stock market is the opportunity to make good
returns. Thus, the first question that comes to the mind of the beginner in the stock
market is how to trade in the stock market. The answer to this question is demat account.
To put it another way, Demat Account acts as a means to trade or invest in shares or
securities. Without it, no transaction in shares or securities is possible. In this article, you
will understand the basic concept of demat account and much more.

Investing in securities is one of the few potential areas where you can invest and grow
your money with only a little bit of sensible effort. To do so, you need to know and
follow a set of rules and regulations. One of the key components of understanding the
stock market and the art and science of investing is by understanding the concept of
dematerialization. Technology and digitalization have changed how we work and live.
Even money-making activities have changed considerably and we have benefitted from
it. Stock exchanges have evolved too and stock trading has moved from physical share
certificates and hard copy ledgers to dematerialized (or demat) accounts.

Meaning of Demat Account

Demat account or dematerialized account is an account that holds the shares and
securities of an individual in an electronic form. When an individual indulges in trading
or investing in shares or securities all the transactions are done through the Demat
account. To put it another way, just like the banks hold the money of the individuals.
Similarly, the Demat account holds the shares and securities of the individual in the
account.
A demat account is opened by the investor at the time of registering with the investment
broker or sub-broker. This account is preferred for trading (buying and selling of stocks)
to enable electronic settlements. Almost every shareholder must have this account to

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trade in stocks as required under Securities and Exchange Board of India (SEBI) laws.
One cannot trade in stocks without having a legitimate demat account.

ONLINE TRADING
Nowadays, there is no need to go to a bank or post office, or even leave your house for
that matter - you can simply trade online using your home computer or mobile phone.
Online trading is simply buying and selling assets through a brokerage's internet-based
proprietary trading platforms. The use of online trading increased dramatically in the
mid- to late-'90s with the introduction of affordable high-speed computers and internet
connections. Stocks, Bonds, Mutual funds, Exchange trade funds (ETF), options, futures,
and currencies can all be traded online. Also known as e-trading or self-directed
investing.
Today, with the advent of the internet in the digital era, more and more investors are
using online trading platforms offered by their brokers for DIY (do-it-yourself) investing.
The online trading platforms serve as a hub with multiple tools for the investor or trader.
The investor can place buy and sell orders; place market, limit, stop, stop-loss, and stop-
limit orders; check the status of an order; view real-time stock quotes; read news on
companies; view the list of securities currently held through the dashboard; etc. An
investor can also access his or her investment statements, confirmation statements, and
investment tax forms using the online system. Most discount brokerages that are
affiliated with banks also provide added convenience for their digital clients by linking
their bank accounts to their investment accounts. This way, an investor can easily initiate
a transfer between accounts held under the same financial institution.

Meaning of online trading

Online trading is the act of purchasing and selling financial products on the Internet. The
trader buys and sells using an online trading platform. Online trading may include trading
in bonds, stocks (shares), futures, international currencies, and other financial
instruments.
Online trading has made many financial operations possible. Stock
trading, currency trading, and other trading instruments have become increasingly
popular due to the easy access provided by the online space. Years ago,

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only stock brokers had access to information on stock trading. More and more
individuals obtain information around the web and get involved in online trading.

Evolution of Demat Account & Online Trading

We belong to a new era where transformation and change are the only constants. It can
also be safely reiterated that communication and knowledge-driven technology are the
ruling orders of the day. It also applies to India, which is now playing a significant role in
the global marketplace and is predicted to be one of the strongest and fastest growing
economies in the foreseeable future. In other words, what was once a predominantly
agricultural economy is all set to transform into a digital one.
The Indian capital market has always been a vibrant one and contributed largely to the
nation’s economic development and growth. This is evident from the volume of
transactions conducted daily at the Bombay Stock Exchange (BSE) and the National
Stock Exchange (NSE) which perpetually attract potential investors to join the share
trading fraternity to reap huge benefits, either for the short or long term

The Indian stock market started its journey in the late 18th century when East India
Company started to transact loan securities. During the 1830s, trading in stocks of bank
and cotton presses had started in Bombay [now Mumbai]. When the American Civil War
broke out in the year 1861, the stock market started to flourish. As the war ended, the
market had at least 250 brokers participating. The brokers constituted ‘The Native Share
and Stockbrokers Association’, an informal group, which was later renamed as the
‘Bombay Stock Exchange’ [BSE] in the year 1875. The BSE was established under the
guidance and with the assistance of Premchand Roychand, who was one of the leading
stockbrokers of that time. In the initial days, the investors and shareholders of the
Bombay Stock Exchange traded for their stocks and shares by calling out the prices of the
stocks and/or shares to buy or sell such stocks and shares. On completion of such trade,
share certificates were exchanged for money. Keeping a track of the stocks and shares
involved extensive manual paperwork and converting the transactions into respective
agreement became complicated. There used to be a delay in receipt of securities and the
restricted infrastructure in the banking and postal segments made it difficult to manage
and control the number of applications and the storage of such share certificates.

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Furthermore, prior to dematerialization, a minimum gap of three months was required
between the date of application and listing of shares.

Post 1991, when the winds of change started blowing across the Indian sub-continent, the
Indian capital market started undergoing modernization, particularly in the spheres of
trading & settlement. It all began with the creation of the Demat – a fully automated
mechanism for trading. Since today’s investor no doubt is tech-savvy, the Demat system
had ensured sheer transparency in the process of trading while also eliminating risks
associated that had hitherto been associated with bad deliveries. Moreover, Demat, which
in other words is the transformation of stocks held in paper form to electronic form, has
eliminated huge loads of unnecessary paperwork. There was also the risk of loss or theft
of share certificates which no longer exists.
However, with the advancement of technology, the perception of dematerialization of
account came into existence in the mid 90’s over the introduction of the Depository Act
of 1996.

Birth of Demat
Ever since the Bombay Stock Exchange (BSE) was established in 1875 and much later
into the 20th century, traders used to shout out the prices of stocks they wanted to buy and
sell. The money would be exchanged through physical receipts called certificates. This
resulted in heavy paperwork that took up a lot of time. Lengthy paper-based processes
also delayed settlements as both buyers and sellers had to deliver the certificates to start
the transfer process.
The revolutionary process of Dematerialization began with the stockholder opening a
Demat account with his broker. This was somewhat similar to opening a bank account
where his physical certificates would get transformed into an electronic and fungible
form maintainable with his Demat account. This balance, moreover, would be devoid of
distinguishing features of any sort. Ever since its evolution, the Demat account has
substantially eliminated the problems of fake documents, stolen shares, forged &
mismatched signatures, mutilation and duplication of share certificates and other transfer
problems which led to multiple arbitration cases and other investor disputes.

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With the promulgation of the Depository Ordinance 1995, the Indian Government
promoted a highly technical and fully automated model for all stock exchanges that
offered screen-based trading as also depositories as a panacea to all investor problems.
The implementation of the Depositories Act of 1996, moreover, has ensured the success
of the depository concept in the capital markets of India and in trading & settlement —
hitherto a time consuming and cumbersome process – is now possible at the touch of a
button.

Dematerialization: Denotation of the Concept

Dematerialization is the process of converting physical shares into electronic format. An
investor who wants to dematerialize his shares needs to open a DEMAT account with
Depository Participant. Investor surrenders his physical shares and in turn gets electronic
shares in his DEMAT account.
Thus, the basic idea of dematerialization is to store stocks, securities and share
certificates of the account holder in an electronic form rather than keeping the said
stocks, securities and share certificates in physical form.
The National Securities Depository Limited, India’s first and largest depository system,
played a pivotal role as its key purpose was to create a platform which would be similar
to the standards followed by the international market dealing with dematerialization of
accounts. Not only does the National Securities Depository Limited use versatile and
innovative technologies to ensure soundness and safety of the Indian capital market, it
also creates settlement solutions which increase the efficiency by minimizing risk and
reducing costs.
The Central Depository Services (India) Ltd came into existence in the month of
February 1999, which was supported by the Bombay Stock Exchange. It was an attempt
to create a joint venture with nationalized banks like State Bank of India, Bank of
Baroda, Bank of India, Union Bank of India, Standard Chartered Bank as well as
Housing Development Finance Corporation. The main objective of the Central
Depository Services (India) Ltd. is providing with reliable, suitable and assured
depository services to investors affordably.
Presently, almost every Nationalized Banks, as well as private Banks provide the facility
to open a Dematerialization Account to every investor. As per the guidelines of
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the Securities Exchange Board of India, the country’s stock market regulator, every
investor must possess a Dematerialization Account.

The Indian Depository System: An Overview

The discussion on dematerialization remains incomplete if one ignores the role played in
it by the National Securities Depository Ltd (NSDL), India’s first and biggest depository,
set up in 1996. The NSDL was promoted by certain national institutions which were
principally responsible for the country’s economic development. Its prime objective was
to establish and maintain an infrastructure that matched international standards for
dealing in securities in demat form. By using flexible and innovative technology systems,
NSDL ensures the soundness and safety of the Indian capital market. It also develops
suitable settlement solutions thus, increasing efficiency, minimizing risk and reducing
costs. NSDL also enables the processing of securities transactions by book entries. A DP
or Depository Participant, the NSDL’s agent offers depository services to all investors.
As per SEBI guidelines, banks, financial institutions, stockbrokers and custodians are
eligible for being Depository Participants (DP). The investor also called the BO or
Beneficial Owner opens a account with any Depository Participant (DP) to dematerialize
his holdings and to trade in and/or transfer them subsequently.
The Central Depository Services (India) Ltd (CDSL) came next in February 1999, with
the BSE Ltd as its main promoter. It was a joint venture with leading nationalized banks
such as SBI, Bank of Baroda, Bank of India and Union Bank of India with Standard
Chartered Bank and HDFC Bank also participating. The principal aim of the CDSL is to
provide dependable, convenient & secure depository services to investors at affordable
costs. It is also linked with all other major Indian stock exchanges such as the BSE Ltd;
NSE & the MCX Stock Exchange. The balance shown in the investor’s account which is
maintained and recorded with the CDSL is obtainable from the DP. The DP provides an
account statement to the investor periodically and this gives out details of his holdings as
also transactions.

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The Depositories Act, 1996
In the year 1995, the Depositories Ordinance was introduced which was promulgated on
January 07, 1996 as the Depositories Act of 1996 [hereinafter “Act”]. The objective of
the Act was to provide the guidelines for the formation of the depositories to record the
details of ownership in the book-entry form.
The Act not only provided such guidelines but also made major amendments in the
following enactments, viz.-

 Companies Act, 1956

 Securities and Exchange Board of India Act, 1992
 Indian Stamp Act, 1899
 Income Tax Act, 1961
 Benami Transactions (Prohibition) Act, 1988.
The primary objective of the Act was to establish an easy transfer of securities in a
speedy manner, to provide accuracy and security by making it possible to freely transfer
the securities of Public Company. However, the transfer of such securities is subject to
certain exceptions which include restricting the Company’s right to the power for
effective transfer of securities and providing with the deed of transfer and other
requirements according to the provisions under the Companies Act.
The Depositories Act, 1996 was formulated and enacted for providing regulation for the
depositories and other allied matters connected thereto.
The terminologies that we usually come across while discussing the topic of
dematerialization of Shares are categorically defined under the Depositories Act, 1996.

 As per Section 2 (a) of the Act, “Beneficial Owner” means a person whose
name is recorded as such with a depository. A Beneficial Owner holds all the
benefits of the dematerialized shares.
 As per Section 2 (b) of the Act, “Board” means the Securities and Exchange
Board of India established under section 3 of the Securities and Exchange
Board of India Act, 1992 (15 of 1992).
 As per Section 2 (e) of the Act, “Depository” means a company formed and
registered under the Companies Act, 1956 (1 of 1956) and which has been

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 granted a certificate of registration under sub-section (1A) of section 12 of the
Securities and Exchange Board of India Act, 1992 (15 of 1992).
 As per Section 2 (g) of the Act, “Participant” means a person registered as
such under sub-section (1A) of section 12 of the Securities and Exchange
Board of India Act, 1992 (15 of 1992).
Depository:
The concept of Depository is known to the world since 1949 when the first depository
was set up in Germany. There were 112 depositories in operation by the year 2001. Every
depository operates under a country‘s specific law and regulation in order to ensure
safety, liquidity, rights and liabilities to the security holders.
A depository is an organization where the securities of an investor are held in electronic
form. A depository can be compared to a bank. To avail of the services of a depository,
an investor has to open an account with the depository through a depository participant,
just as he opens an account with the bank. Holding shares in the account is a kin to
holding money in the bank
At present, India has only two depositories-National Securities Depository Ltd. (NSDL)
and Central Depository Services Ltd (CDSL).
NSDL is the first depository in the county, which is promoted by three major financial
institutions - Unit Trust of India, Industrial development Bank of India and National
Stock Exchange of India Limited. The second depository of the country (CSDL) is set up
in 1999 by the Bombay Stock Exchange and Bank of India
However, most of the services offered by both these depositories are similar. Today
almost all the companies listed in dematerialized from with NSDL are available with
CDSL.
BANK DEPOSITORY

Holds funds in accounts Holds securities in accounts

Transfers funds between accounts Transfers without handling securities

Safekeeping of Money Safekeeping of securities

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Depository participant:
A depository participant is an agent appointed by the depository and is authorized to offer
depository services to all investors. An investor cannot directly open a Demat account
with the depository. An investor has to open his account through a DP only. The DP in
turn opens the account with the depository. The DP in turn takes up the responsibility of
maintaining the account and updating them as per the instructions given by the investor
from time to time. The DP generates and provides the holdings statement from time to
time as required by the investor. Thus, the DP is basically the interface between the
investor and the depository.
The person who holds a Demat account is a beneficiary owner. In case of a joint account,
the account holders will be beneficiary holders of that joint account. The Demat account
number of the beneficiary holder(s) is known as the BO Id. A DP id is the number of the
depository participant allotted by the depository.

Functions of Depository:
In the depository system, securities are held in depository accounts, which is more or
less similar to holding funds in bank account. Transfer of ownership of securities is done
through simple account transfers. This method does away with all the risks and hassles
normally associated with paperwork. Consequently, the cost of transacting in a
depository environment is considerably lower as compared to transacting in certificates.
The depository system also allows distribution of dividends through the RBI‘s ECS
system, whenever the participating company has agreed to such services. Other
entitlements such as bonuses, split-ups are also directly affected by the depository into
the investor‘s account. The following can be held in the depository (electronic) form:
Shares (listed or unlisted) ,Stocks ,Bonds ,Debentures ,RBI Relief Bonds ,Government
Securities (through a primary Dealer) ,Units of Mutual Funds ,Commercial Paper ,Money
Market Instruments etc.

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OPENING A DEMATERIALIZATION ACCOUNT (DEMAT A/C)
Demat refers to a dematerialized account. Just as we have to open an account with a bank
if we want to save your money, make cheque payments etc, we need to open a demat
account if we want to buy or sell stocks. So it is just like a bank account where actual
money is replaced by shares. We have to approach the DPs (remember, they are like bank
branches), to open our demat account.
Demat account allows you to buy, sell and transact shares without the endless paperwork
and delays. It is also safe, secure and convenient.
Let’s say our portfolio has 100 of Satyam, 50of Suzlon, 20 of ICICI BANK, 50 of Tech
Mahindra and 100 of TCS shares. All these will show in our demat account. So we don’t
have to possess any physical certificates showing that us own these shares. They are all
held electronically in our account. As we buy and sell the shares, they are adjusted in our
account. Just like a bank passbook or statement, the DP will provide you with periodic
statements of holdings and transactions.
Opening a Demat Account:
A demat account can be opened with no shares at all. It does not require any minimum
balance. The first step towards opening a demat account is to select a Depository
Participant, fill up the account opening form, and submit the document. Having a PAN
card is a compulsory requirement for opening a demat account. The rest of the steps are
explained here.
 Once you submit the form, you will get a copy of rules and regulations, terms of
agreement, and the charges you will incur.
 An in-person verification is also necessary. A member of the DP staff will contact
the individual to verify the details provided in the account opening form.
 After the verification, the DP person will provide an account number or client ID.
You can also check these details by checking your account details online.
 An annual maintenance fee is paid for a demat account. This fee covers the
account transaction charges. The fee is levied for debiting securities to and from
the account on a monthly basis. The charges are subject to your choice of the DP.
Some DPs charge as per the amount of the transaction while the others charge a
flat fee which is same for every transaction. The fee can also vary on the type of

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 transaction (buying or selling). There can be another fee for converting the share
into physical form or vice-versa.

A: Procedure for purchasing dematerialized securities

The transactions relating to purchase of securities are:
1. The investor purchases securities through a broker.
2. He pays the broker who then arranges payment to the clearing corporation on the pay-
in day.
3. The broker receives credit of securities in his clearing account (clearing member pool
account) on the pay-out day.
4. Broker gives instructions to its DP to debit clearing account and credits the investor’s
account.
5. The investor receives shares into his account. If standing instructions are not given at
the time of opening the account, the investor has to give ‘Receipt Instructions’ to the
Depository Participant for receiving credit.
6. The investor has to ensure that the broker transfers the securities from his clearing
account to the investor’s depository account before book closure. If the securities remain
in the clearing account of the broker. The company would give corporate benefits
(dividend or bonus) to the broker. In that case, the investor will have to collect the
corporate benefits from the broker.
B: Procedure for sale of dematerialized securities
1. The investor sells the securities in any of the stock exchanges linked to the National
Securities Depository Limited (NSDL) through a broker.
2. He has to instruct his Depository Participant (DP) to debit his account with the
number of securities sold and credit broker’s clearing account.
3. The delivery instruction has to be given by the investor to his DP using the delivery
instruction slips, received by him at the time of opening the demat account from the DP.
4. Before the pay-in day, the investors’ broker gives instructions to its DP for delivery to
clearing corporation.
5. The investor receives payment from the broker for the sale of securities.

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BENEFITS OF DEMATERIALIZATION ACCOUNT

Primary benefits:
1- Safety: If we are holding our shares, bonds etc in physical (paper) form, there are
chances of its theft, mutilation, and loss. Moreover, we are also exposed to the
risks of fake papers, bad-delivery or delays at the time of transfer of physical
securities. However, in DEMAT accounts; we can preserve our long-term
investments safely and securely.
2- Convenience: When we want to sell our dematerialized shares or redeem our
debentures in DEMAT account; there are no hassles of filling up transfer forms,
sending redemption requests or any other messy, costly and time-consuming
paper work. We can conveniently transfer our securities through electronic
transfers or just by signing one ‘Delivery Instruction Slip’, which is nothing but
our cheque book is for DEMAT Accounts.
3- Common Bank: Dematerialization does not only help in trading stocks. It works
for debt instruments like bonds as well as mutual funds. An investor can hold all
his investments in a single demat account.
4- Automatic Updates: Despite being a common account for all your securities
transactions, you do not have to provide your details every time you deal with a
company. Your demat account represents you and has all the necessary
information regarding the transaction.
5- Odd-Lot Problem Resolved: This was a big obstacle in resolving the settlements
as shares were sold in lots. Buyers and sellers could not transact a single or odd
number of securities. Demat account has solved this problem and investors can
trade any number of shares they want.
6- Delivery Risks: With no paperwork involved, the risk of fake shares, theft, and
wrong deliveries have also been eliminated. This is perhaps one of the biggest
benefits of the electronic trading process. The system will always credit securities
in the right demat account automatically, regardless of number and type of shares.
This is applicable to other share transactions such as stock splits and stock
bonuses as well.

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7- Cost Reduction: A demat account does not require stamp duty for securities.
This has resulted in significant cost reduction. Earlier, the stamp duty was 0.5%
for each stock that can now be avoided completely through dematerialisation.
8- Easy to Hold: Paper certificates are vulnerable to several types of physical
damage such as water damage, fire, pests, etc. Even a minor damage can cost you
a fortune. However, this is not the case with demat account Your demat account
company bears the responsibility of maintaining and safeguarding your account.
This is the best way to hold securities. The demat account also has a nomination
facility in case the account holder passes on. The securities and their authority is
automatically transferred to the nominee.
9- Other Benefits:
Apart from the safety and convenience, there are lot more advantages of opening
Demat accounts. Here are few of the most necessary reasons for having a Demat
account.

 We can park most of our investments including shares, bonds, debentures,

Gold Units, NSC and bonds in our DEMAT account. We might not
immediately realize the benefits of having all the investments in DEMAT
form. For instance, if we change our residence, we just have to write to the
DP (Depository Participant), which automatically gets our new address
registered with all the companies where we have invested our money.
 We do not have to remember the due dates of maturity of bonds, NSC and
debentures, as the redemption proceeds are automatically credited to our
bank account, which is linked with our DEMAT account.
 We receive all the dividends and interests directly in our linked bank
account.
 In case of bonus, rights, split, merger or any other corporate actions,
everything takes place automatically. We do not have to do anything
except to file the physical intimation letters sent by the Registrar and
Transfer Agents.

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  Nowadays with the advent of online trading, we can perform online all the
activities associated with buy, sell and transfer of shares.
 With a single nomination in your DEMAT account, we are nominating our
legal heirs to all the investments held by us.
 For many public issues of bonds and debentures of reputed and
trustworthy companies, it is necessary to have a DEMAT Account, as the
companies do not allot securities in paper form.
 Since most of the process of buying and selling dematerialized securities
is electronic, there are no chances of signature mismatch.
 Elimination of problems related to selling securities on behalf of a minor.
 Elimination of problems related to change of address of investor,
transmission etc.
LIMITATIONS OF DEMATERIALIZATION ACCOUNT
 Trading in securities may become uncontrolled in case of dematerialized
securities.
 It is incumbent upon the capital market regulator to keep a close watch on the
trading in dematerialized securities and see to it that trading does not act as a
detriment to investors.
 For dematerialized securities, the role of key market players such as stock-brokers
needs to be supervised as they have the capability of manipulating the market.
 Multiple regulatory frameworks have to be conformed to, including the
Depositories Act, Regulations and the various Bye-Laws of various depositories.
 Agreements are entered at various levels in the process of dematerialization.
These may cause worries to the investor desirous of simplicity.
 There is no provision to close a demat account, which is having illiquid shares.
The investor cannot close the account and he and his successors have to go on
paying the charges to the participant, like annual folio charges etc.
 After liquidating the holdings, many Indian investors don't close their depository
participant account. They are unaware that Depository participant charge even on
dormant accounts.

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Types of Demat Account:
1. Regular Demat Account:
Traders who reside in India use this type of account. Prior to BSDA, all investors were
required to open regular Demat Account. The charges and services of regular Demat
services are more compared to BSDA. AMC are levied on all categories of investors
from small to high-value investors.
2. BSDA (Basic Services Demat Account):
This account type is designed for small investors. It provides limited basic services to
small investors with reduced charges. Any individual who has Demat Account or plans to
open an account where he is the sole holder can open an account under BSDA.
Under this plan, BSDA holders are not charged AMC if the value of securities is under
Rs. 50000 and if the value of securities is in the range of Rs. 50000- 200000; it would
attract AMC of Rs 100. Anything above Rs 200000, then the account will be treated as
Regular Demat Account and charges will be levied accordingly.
3. Repatriable Demat account:
This is a Demat account which is useful to the Non-Resident Indians as it allows fund
transfers abroad. Such a Demat account requires an associated NRE bank account.
4. Non-Repatriable Demat account:
This account, too, is for the Non-Resident Indians. However, in this case, funds cannot be
transferred abroad, and this account requires an associated NRO bank account.
ONLINE TRADING:
Change is the law of nature”. There were times when man was a Wanderer
or a normal. He himself had to go place to place in search of food, water and now
everything is available at your doorstep just at the click of the mouse. The growth of
information technology has affected almost all sectors of life. Internet has enabled
us to get every information at our doorstep. When Internet has affected all sectors he
could “stock markets” the most important player of the economy, has remained far
behind? Like all other sectors Internet has set its feet in the stock markets also. The
Stock Market system provides single, nationwide securities. It enables LAN investors in

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one part of the country to trade at the best quotes with an investor located in any other
part of the country through the members of the stock exchange and subsequently clears
and settle the trade in an efficient and cost effective manner. The primary objective of the
Stock Market is to provide clear opportunity to the investors throughout the country to
trade any security irrespective of the size of the order or the broker through whom the
order is routed. This provides the facility to execute the buy order at the lowest price in
the stock market located anywhere in the country without any extra cost to the investors.

There will be no trading floor in the exchange. Instead, each trading member will have a
computer at his own office anywhere in India which will be connected to the central
computer system at the NSE through leased line or VSATs (very small aperture
terminals), for an interim transition period of 6 months & subsequently by satellite link.
VSATs are relatively smaller dishes similar to dish antenna for cable TV & have the
benefit of not being very expensive. A satellite network makes it possible to connect
almost all the parts of the nation quickly as it is easy to install, as against the ground lines
such as dial up modems leased lines, which are prone to disruptions, satellite links, on the
other hands ensure high speed, availability and quality of the connection. This mode of
trading is known as "Online Trading"

Introduction of online trading in India

Online trading started in India in February 2000 when a couple of brokers started offering
an online trading platform for their customers.
Online trading by NSE & BSE:
The central computer located at the Exchange is connected to the workstations of the
Brokers through satellite using Very Small Aperture Terminals (VSATs). Orders placed
at based on price and time priority. Both the exchanges have switched over from the open
outcry trading system to a fully automated computerized mode of trading known as
BOLT (BSE On Line Trading) and NEAT (National Exchange Automated Trading)
System. It facilitates more efficient processing, automatic order matching, faster
execution of trades and transparency. The scrips traded on the BSE have been classified
into 'A', 'B1', 'B2', 'C', 'F' and 'Z' groups.

20
The 'A' group shares represent those, which are in the carry forward system (Badla). The
'F' group represents the debt market (fixed income securities) segment. The 'Z' group
scrips are the blacklisted companies. The 'C' group covers the odd lot securities in 'A',
'B1' & 'B2' groups and Rights renunciations. key regulator governing Stock Exchanges,
Brokers, Depositories, Depository participants, Mutual Funds, FIIs and other participants
in Indian secondary and primary market is the Securities and Exchange Board of India
(SEBI) Ltd.

Objectives of Present Trading System:

 Reduce and eliminate operational inefficiencies inherent in manual system.
 Increased trading capacity in Stock Market Improve market transparency.
 Eliminate unmatched trades and delayed reporting Provide for on-line and off-line
monitoring control and surveillance of the market.
 Promote fairness and speedy matching Smooth market operations using
technology while retaining the flexibility of conventional treading practices.
 Set up various limits, rules and controls centrally.
 Consolidate the trades data on electronic media to interface will the broker‘s back
office system.
 Provide public information on scrip prices, indices for all users of the system.
 Provide analytical data for use of Stock Market.

21
22
Features of Online Trading
The Online Trading is having many features which make it most suitable for the investors to go
for. Some of these features are as follows:
1. Freedom of Information:
The Internet can provide a new sense of control over your financial future. The amount of
investment information available online is truly astounding. It's one of the best aspects of being a
wired investor. For the first time in history, any individual with an Internet connection can:
 Know the price of any stock at any time
 Review the price history of any stock in chart format
 Follow market events in-depth
 Receive a wealth of free commentary and analysis about stock
 markets and the global economy
 Conduct extensive financial research on any company

2. Control our money:

One of the great appeals of using an online trading account is the fact that the account
belongs to you, and is under your direct control. When you want to buy or sell stock, you no
longer need to call your broker on the phone; hope that he is in the office to place your order;
possibly argue with the broker about the order; and hope that the transaction is executed
instantly.
3. Access to the market:
At the most basic level, an online trading account gives you more agility in buying and
selling stocks. This is through sophisticated information streams, dedicated trading platforms
and sophisticated tools for accessing the markets.
4. Offers greater transparency:
Online trading offers you greater transparency by providing you with an audit trail. This
involves a complete integrated electronic chain starting from order placement, to clearing and
settlement and finally ending with a credit into your depository account. All these stages are
subject to inspection, thus bringing in transparency into the system.
5. Reduces the settlement risk:
This method of trading reduces the settlement risk for the investor, as in this case all short
sell orders are squared off at the specified cut-off time and not allowed to be carried forward.

23
6. Instant trade order confirmations: Every trade is confirmed immediately and you
will receive an on-screen confirmation following every trade with full details for
your records. This avoids costly errors that would have been discovered when it is too late.
7. Integrated Accounts:
Our Bank, Depository and Trading account are integrated for our convenience. Various
broking houses provide access to many of the popular banks.
BENEFITS OF ONLINE TRADING:

1) Less Costly:
The most significant advantage of the online broking is the cost reduction in the
brokerage. Due to the power of the Internet one has the privilege of becoming the clients
of really large brokerages with the benefits of enjoying the low charges
before enjoyed only by the big players. As the DP account has got linked to the trading
account most players do not charge a minimum transaction cost thus truly allowing one
to buy a single share and achieve meaningful rupee price averaging whatever
be your buying power.
2) Peace of Mind:
One can never have complete peace of mind but online investing does away with the
hassles of filling up instruction slips, visits to the broker for handing over these slips and
consequent costs.
3) Keeping Records:
The site one trades on keeps a record of all transactions down to unexecuted orders and
cancelled orders thus keeping one abreast of all your transactions 24 hours a day. No
paperwork means more time at one’s disposal for research and analysis.
4) Ease of trade:
It is the ease of doing the trade through net, with a click of mouse; one can buy or sell
any share that is dematerialized. Other than the above-mentioned advantages,
Internet trading provides some additional advantages to the investors, brokers
and also helps the nation to Channelize the resources. Net trading would
increase competition in the market hence increase in the bargaining power of the
investors.

24
PROBLEMS OF ONLINE TRADING
1) Server not found:
This may appear on one’s screens when he is desperately trying to get out of an
unprofitable position. Some of the online sites are providing a telephone number for use
in case their sites are overloaded or their server down.
2) Connectivity of the Broker with NSE :
Recently ICICI Direct had a connectivity problem with the NSE for two and half hours
during trading hours. This problem is rare but be alive to its possibility.
3) Cyber attack:
In the event of a malicious attack on the systems of one’s broker he is protected only if
the company is taking proper precautions against such attacks and if proper backup is
regularly been taken. He may like to choose a brokerage that has a stated security policy
and contingency plan in place.
4) Non-availability of a seamless interface:
As a client one will access the NSE through a server of the online brokerage and this may
involve queuing delays. If a number of client access the server the server takes its own
time sending the orders to the NSE server. He must check out the
seamlessness of this interface before selecting an online brokerage. The faster the orders
are processed the more seamless is the interface.
5) Non- availability of personalized advice:
If one likes to ask his broker "Aaj kya achcha lag raha hai" he may not be able to do so. If
he wants advice on a particular stock in his portfolio he may not even be able to get that.
Types of online trading
1. Day Trading
Day Trading is one of the most common forms of trading. It’s a short term strategy where
you buy and sell securities on the same day. Traditionally this type of trading was
normally carried out by professional traders. In recent year’s improvements in technology
and the emergence of a wide range of online CFD trading websites means non-
professional traders can also trade in these types of securities.
Different types of Day Trading take place, with different traders specializing in certain
areas. The most common types of day trading strategies include the following:

 Price Action Trading

25
  Scalping
 Rebate Trading
 Arbitrage
 Momentum Day Trading
 Market Making
 News Trading/Playing
 Pattern Trading
2. Position Trading
Position trading is a longer term strategy where traders buy and hold securities for longer
periods of time. This type of trading often involves keeping securities for weeks and even
months. The decisions to buy and sell are normally based on extensive research of market
trends and predicting changes in the market in the future. The trader buys at the
beginning of a trend and sells when the trend reaches is height.
3. Swing Trading
During certain stages of a trend, Swing Trading often takes place. This type of trading
takes advantage of the price ‘swings’ that occur during certain stages of the lifecycle of a
particular trend. Traders try to predict highs and lows during a trend based on their
research and data they collect for a specific security. Unlike day trading, Swing Trading
involves keeping trades for more than a day to maximize the gains made when a trend
gains momentum. Once again this type of trading depends on a trader’s judgment and
accuracy of data they base their decisions on.
4. Scalping
Scalping is a fast way to trade. With this trading method, traders take advantage of gaps
created by bidding and asking spreads and order flows. A profit is made by selling at an
asking price that’s higher than the spread or buying price of a security. The fact that this
is a short term strategy reduces the risk taken by traders. More often than not, Scalping
involves smaller amounts, smaller profits per trade and more frequent trading by traders
who are also known as scalpers.
5. Online CFD Trading
CFD’s or Contracts for Difference products let traders speculate on the price movements
of various types of stocks on the market. When you’re trading CFD products you don’t

26
own the stock. You simply buy the right to speculate on its market price change in the
future which could result in a rise or fall in value.
ANALYSIS OF VARIOUS STOCK BROKING COMPANIES
Angel Broking
Criteria Angel stock broking
Demat a/c opening charges 750
Brokerage intraday, delivery 5 paise,50 paisa
AMC(Annual Maintenance Charges) Rs.300
Trading funding intraday, delivery 6times,4 times(minimum stock Rs 50000)
Debit period T+2 Days
Mode of trading Both online and offline
Margin money 5000
Software installation charges No extra charges

IndiaInfoline
Criteria IndiaInfoline

Demat a/c opening charges 550

Brokerage intraday, delivery 5 paise,50 paisa
AMC(Annual Maintenance Charges) NIL
Trading funding intraday, delivery 10 times, 4times
Debit period T+2
Mode of trading Both online and offline
Margin money 2000
Software installation charges No extra charges

27
 Religare Securities
Criteria Religare Securities
Demat a/c opening charges 550
Brokerage intraday, delivery 4 paise,40 paisa
AMC(Annual Maintenance Charges) 250
Trading funding intraday, delivery 6times,4 times(minimum stock Rs 50,000)
Debit period T+2
Mode of trading Both online and offline
Margin money No limit
Software installation charges No Extra charges

ICICI Direct
Criteria ICICI Direct
Demat a/c opening charges Rs.975
Brokerage intraday, delivery
50Paise,75Paise
AMC(Annual Maintenance Charges) Rs.500
Trading funding intraday, delivery
6times,4 times(minimum stock Rs 50,000)
Debit period T+2
Mode of trading Both online and offline
Margin money No limit
Software installation charges No Extra charges

28
REASEARCH AND MEHTODOLOGY

Objectives of research
 To Study present online share trading
 To find the awareness of Demat account among the common people.
 To know about problems faced in trading by traders.
 To know the challenges faced in trading by traders
 To determine the satisfaction levels of consumers, doing online trading.

Scope of research
 It provides a complete knowledge of various fundamental concepts of share
market and online trading.
 It will help in analyzing the behavior of consumers.
 It will help in Knowing the parameters of investment on which they would like to
invest.
 From the study I have learned very much, about online trading and demat
account.

Significance of research
 By having a demat account, you can avoid the jeopardy of bad-delivery.
 By having a demat account, you can avoid the delay in transferring the securities
physically or holding duplicate documents.
 Demat account enables the investor to store entire portfolio of investment, shares
and other securities in electronic form in one account.
 You are assured of the safety of your continuing investments by electronically
holding your investments.
 You can keep persistent track of your investments and securities without worrying
about the handling of physical papers.
 Investors having demat account are capable of enjoying quicker benefits like
bonuses and stock splits.

29
Limitation of research
 I was not able do survey in every area.
 Many traders and consumer were not revealing their investment as they were not
trusting.
 Sample size is limited to only 50 people.
 I was unable to survey to actual traders who trade and use demat account.
 I was only able to survey in limited locality which is near my house.

Sampling Procedure
 By adopting convenience sampling, approximately 50 respondents were selected.
The essential data were collected with people of questionnaire.
 It was collected through filling up the questionnaire prepared. The data has been
analyzed by using Statistical tool.

Sample size:
The sample size of project is limited to 50 people only.

Sample design:
Data had been presented with the help of tables and pie chart.

Area of study:
We have collected primary data (Questionnaires) from Local Public of worli.

Finding:
The below are the questions posed to the respondents for the purpose of primary
data collection with mode of structured questionnaire.

30
 LITERATURE REVIEW

Bhatt & Bhatt (2012) in their paper entitled “Financial Performance Evaluation of
depositories in India (A comparative study of NSDL & CDSL)” explores the fact that the
trend of automation especially, Dematerialization, has enabled the Indian capital market
to take the world center stage & scale to unprecedented heights. Securities market in
India has grown exponentially. The analysis of the progress of NSDL & CDSL in
economic terms clearly reveals that both the depositories have shown a remarkable
progress in terms of DEMAT accounts; DEMAT value &quantity, Settlement value and
quantity and the number of depository participants. Their study reveals that both the
depositories have been working financially smoothly over a period of last six financial
years.

Chaudhary & Malik (2011) in their paper “Depository system in India: An appraisal”
states that majority of the participants are resided with NSDL with stake of 55 percent.
Thus, it acts as the primary organization with the majority of participants in the system.
Further the paper analysis concludes that the respondents have no clear & crisp idea
regarding the services offered by the DPs to their clients. In order to overcome
geographical & time barriers formal & informal communication need to be developed.
The majority of respondents were comfortable with the prevailing fee structure of
depository which shows the existing fee structure followed by NSDL is benevolent.

George (1996) in his article “Towards a paperless settlement system” explains about the
role of the NSDL in revolutionizing the paperless stock settlement system in the country.
He has examined steps taken by the depository to ensure that the scripless trading system
is a success. He has also stressed the importance of the role of regulatory body in making
the depository system successful.

31
Jeyanthi (2007) in his research work “A study on National Stock Exchange of India
Limited” has highlighted that the NSE has created a niche for itself not only in the
national arena but also in the international market with the adaptation of required
structural changes. Therefore there is no doubt that NSE will be an attractive destination
for the national & international investors to park their funds in the years to come.

Javaid (2003) in his thesis “A study of operations of stock exchanges with the special
reference to Delhi Stock Exchange” discussed that Indian stock market has emerged as a
major source of finance for the corporate sector. It is an institution evolved in the
industrial developed capitalistic economies with free market mechanism. Stock exchange
was termed as institutional allocator of resources par excellence.

Kaur (2013) in her paper “Investors preference between DEMAT & REMAT and
awareness regarding depository & its various laws” explains the depository system in
India, focusing on the reasons for investors preference between REMAT & DEMAT. To
sum up she concludes that the growth rates of DEMAT account holder is increasing over
years. The Indian system of capital market is two tier system-Indian government allows
holding securities in any form i.e. either in physical securities or in electronic (DEMAT)
form. The respondents feel that the dematerialization provides enough services & it is
convenient to use. Majority of people are shifting towards dematerialization as compared
to the past history & study.

Olekar & Talwar (2013) in their paper “Online trading & DEMAT account in India –
Some issues” observed that the banks normally levy a lower service charges compared to
other depository participants. He also found that when the numbers of users are more
online, the speed of transactions is affected.

32
Rao (1995) in his paper “Depository System: A boon for India capital markets” holds the
view that the introduction of depositories would improve the market efficiency. It is also
expected to arrest the prolonged depression in the stock market. The paper analysis shows
the manner in which the depository would help to revive the stock market. To sum up, he
states that the eligibility criteria will require companies to improve their internal systems.
He is hopeful that depository system will bring a sea change in corporate democracy,
particularly in corporate management, price discovery in market place & proxy exercise
etc.

Sahoo (1995) in his article “The depositories ordinance, 1995 explained” has explained
the provisions of Depositories Ordinance 1995, which provides a legal basis for the
establishment of depositories in securities with a view to ensure free & expeditious
transfer of securities.

Singh & Goyal ( 2011) in their paper entitled “ Analysis of factors affecting the Decision
Making of the Investors in Depository System” holds the view that most of the investors
think that the shorter settlement period , safety of securities with the depositories ,
attitude of the staff available with the DPs, timely services provided by the DPs to the
investors, reduction in transaction costs , rapatriation of sales proceeds of shares /
debentures are some of the factors which affects the decision making of the investors in
depository system. Opening DEMAT account with DP is easy but they charge for
providing this service. The education of the investors plays an important role in decision
making where the difference in the opinions of the investors is found significant in most
of the cases followed by other factors such as occupation, age etc.

33
DATA ANALYSIS, INTERPRETATION AND PRESENTATION

What is your Age?

o 18-25
o 25-40
o 40-60

age

22.3

18-25
25-40
40-60

72.7

Interpretation: In above pie diagram majority of population selected are from 18-25 age
groups that is 72.7% and 22.3% are of 25-40 age group.

34
Gender
o Male
o Female

Gender

13.6

male
female

86.4

Interpretation: According to pie diagram majority of people are male that is

86.4% and remaining 13.6% are female.

35
What is your Educational qualification?
o Under graduate
o Graduate
o Post graduate

Educational qualification

26.1

Under graduate
Graduate
Post graduate
8.7
65.2

Interpretation: According to the pie diagram 65.2% of sample size are undergraduates,
8.7% are graduates and other 26.1% of sample size are post graduates.

36
What is your occupation?
o Service
o Business
o Farming
o Student
o CA Article

occupation

4.2
12.5
service

16.7 business
farming
student
CA article
66.6

Interpretation: majority of sample size surveyed by me are students that is 66.6%, 16.7%
are doing business. 12.5% and 4.2% of people are doing service and CA article
respectively.

37
What is your annual income?
o Below 2 lakhs
o 2-5 lakhs
o 5-10 lakhs
o Above 10 lakhs

annual income
0 1.2

8.3

below 2 lakhs
2-5 lakhs
5-10 lakhs
above 10 lakhs

87.5

Interpretation: maximum sample size of people surveyed has annual income

below 2 lakhs, 8.3% of people earn 2-5 lakhs and 1.2% earn above 10 lakhs.

38
Are you aware about online trading?
o yes
o no

awareness of online traading

16

yes

no
84

Interpretation: Majority of sample size surveyed are aware of online trading, and
remaining 16% are not aware of online trading.

39
Do you have Demat account?
o Yes
o No
o Maybe

demat account

4.1

yes

41.7 no
54.2
maybe

Interpretation: according to pie diagram 54.2% are having demat account and 41.7% are not
having demat account and 4.1% are not sure about demat account.

40
Do you invest in share market?
o Yes
o No
o Maybe

invest in share market

4.2

yes

no
45.8
maybe
50

Interpretation: 45.8% are investing in shares and 50% of surveyed people are not
investing in shares.

41
What type of trading do you generally do?
o Intraday
o Delivery
o Both
o N.A

type of trading

25
intraday

delivery

45 both

n.a
25

Interpretation: Maximum numbers of people are by both types of trade that is intraday as
well as delivery. 25% of people trade intraday type of trading and 25% people trade
delivery type of trading. 5% of them does not trade any of the option.

42
How much amount you prefer to invest?
o Less than 10k
o 10k-20k
o 20k-50k
o Above 50k

amount of investment
0

4.2

20.8
less than 10k
10k-20k
20k-50k
above 50k
75

Interpretation: according to pie diagram 75% of people invest less than 10k in shares.
20.8% and 4.2% of people prefer to invest 10k-20k and 20k-50k respectively. No one
prefer to invest more than 50k.

43
What time period you prefer in investment?
o 1 month
o 1-3 months
o 3-6 months
o More than 6 months

periods of investment

12.5
4.2

1 month
1-3 months
50 3-6 months
more than 6 months
33.3

Interpretation: 50% of the sample size chosen prefers to invest only for 1 month. 33.33%
of people prefer to invest 1-3 months, 12.5% of them invest for more than 6 months and
4.2% prefer to invest for 3-6 months.

44
Name the company with which you are making investment.
o Share khan
o India bulls
o Reliance money
o Other
o N.A

name of company

4.8
9.5
share khan
33.3
14.3 india bulls
reliance money
other
n.a

38.1

Interpretation: 38.1% of people trade with India Bulls Company, 33.3% of people is trading with
share khan. 14.3% and 9.5% of people are trading with reliance money and other companies
respectively. 4.8% of people are not trading with any of the company.

45
Is online trading preferable for you?
o Yes
o No
o Maybe

online tradin preference

37.5
yes
no
54.2 maybe

8.3

Interpretation: 54.2% people say that online trading is preferable to them where 8.3% are
saying that online trading ids not preferable. 37.5% of people are not sure about online
trading.

46
In your opinion what is biggest problem in online trading?
o lack of knowledge or experiences
o Unsatisfactory services of broking firm
o Marketing uncertainty
o Charges by broking firms
o Other

problem in online trading

4.2
lack of knowledge or
experiences

20.8 unsatisfactory services of

broking firm
41.7
marketing uncertanity

charges by broking firm

25
other
8.3

Interpretation: 4.2% of people assume that lack of knowledge or experience is the major
problem in online trading where 25% say that market uncertainty is the major problem.
20.8% and 8.3% of people say that charges by broking firms and unsatisfactory services
of broking firm are the problem of online trading respectively. Some people have other
problems in online trading.

47
 What is your opinion about the problem of market uncertainty in
trading?
o It's a big challenge
o It's manageable
o It's an opportunity
o Other

problem of market uncertanity in trading

8.3

it’s a big challenge

37.5
its manageable
33.3
its an opportunity
other

20.8

Interpretation: According to survey 37.5% of people say that market uncertainty is a big
challenge in online trading, 33.3% say that it is an opportunity to them. 20.8% of people
say that market uncertainty is manageable for them.

48
Are you satisfied with online trading?
o Yes
o No
o Maybe

online trading

25
37.5
yes

no

maybe

37.5

Interpretation: 37.5% of people say that they are satisfied with online trading and 37.5%
of people are not satisfied with online trading. Rest 25% of people who don’t trade
assume that online trading maybe suitable for them.

49
Do you get proper facility by your trading firm or company?
o Yes
o No
o Maybe

is proper facility is provided by company

25
yes

54.2 no

maybe
20.8

Interpretation: 54.2% of people say that they are provided proper facility by their trading
firm or company. 20.8% do not get proper facility by their company and rest 25% of
people think that the company may or may not provide proper service to the trader.

50
Do you get proper returns by investing in share market?
o Yes
o No
o Maybe

proper returns by investing in share market

yes
45.8 45.8 no
maybe

8.3

Interpretation: 45.8% of surveyed people receive proper returns by investing in share

market and 8.3% don’t receive proper returns by investing in share market.

51
Your opinion on online trading.
o Useful
o Not useful
o Awesome

opinion on online trading

4.3
8.7

useful
not useful
awesome

87

Interpretation: According to survey 87% of people say that online trading is useful and
8.7% of people say that online trading isn’t useful. 4.3% say that online trading is
awesome.

52
 CONCLUSION AND SUGGESTIONS

CONCLUSION

 Most of the people are aware of online trading.

 Most of the traders consider unsatisfactory services of broking firm as biggest
problem in trading.
 Most of people are having demat accounting and online trading account.
 50% of my sample sizes are not investing in share market.
 Equal numbers of people in sample size do intraday and delivery trading and most
of them do both intraday as well as delivery trading.
 According to my selected sample of group, 75% people prefer to invest less than
10k and some of them prefer to invest more than 10k but less than 20k.
 Many people of my sample group would invest money for 1 month, some for 3
months, and some for more than 6 months and very few for 3 to 6 months.
 More than 50% of me sample size thinks that online trading is preferable.
 Lack of knowledge and experiences is the biggest problem faced by an trader
while doing online trading.
 Many people get proper facility by their trading firm or company.
 Almost every people of selected sample group say that online trading is useful.

SUGGESTIONS

 As online trading is useful people should start doing online trading.

 Every people should have knowledge and experience in online trading.
 People should have demat account for online trading.
 People should start doing online trading.

53
 BIBLIOGRAPHY

 www.shodh.inflibnet.ac.in
 www.berkeleygains.wordpress.com
 www.niftytradingacademy.net
 www.stock-trading-infocentre.com
 www.tradersplace.in
 www.angelbroking.com
 www.accountlearning.com
 www.yourarticlelibrary.com
 www.iforex.in

54
 APPENDIX

1. Name : ___________

2. What is your age?

o 18-25
o 25-40
o 40-60

3. Gender
o Male
o Female
o Other

4. What is your educational qualification?

o Undergraduate
o Graduate
o Post graduate

5. What is your occupation?

o Service
o Business
o Farming
o Student

6. What is your annual income?

o Below 2 lakhs
o 2-5 lakhs
o 5-10 lakhs
o Above 10 lakhs

7. Are you aware about online trading?

o Yes
o No

55
8. Do you have Demat Account?
o Yes
o No

9. Do you invest in share market?

o Yes
o No

10. What type of trading do you generally do?

o Intraday
o Delivery
o Both

11. How much amount you prefer to invest?

o Less than 10k
o 10k-20k
o 20k-50k
o More than 50k

12. What time of period you prefer in investment?

o 1 month
o 1-3 month
o 3-6 month
o More than 6 month

13. Name the company with which you are making investment.
o Share khan
o India bulls
o Reliance money
o Other

14. Is online trading preferable for you?

o Yes
o No
o Maybe
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15. In your opinion what is biggest problem in online trading?
o lack of knowledge or experiences
o Unsatisfactory services of broking firm
o Marketing uncertainty
o Charges by broking firms
o Other

16. What is your opinion about the problem of market uncertainty in trading?
o It's a big challenge
o It's manageable
o It's an opportunity
o Other

17. Are you satisfied with online trading?

o Yes
o No
o Maybe

18. Do you get proper facility by your trading firm or company?

o Yes
o No
o Maybe

19. Do you get proper returns by investing in share market?

o Yes
o No
o Maybe

20. Your opinion on online trading.

o Useful
o Not useful

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