A

STUDY ON

ONLINE TRADING

AT

INDIABULLS SECURITIES LTD

A Project report submitted to Osmania University

In partial fulfillment for the Award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

Submitted by

G. ASHWINI

HT NO: 2121-120-672-128

UNDER THE GUIDANCE OF

--------------------------------------------

ARISTOTLE PG COLLEGE

(Affliated To Osmania University,Hyderabad)

Recognized By UGC under section 2(f) of UGC Act 1956

Beside Moinabad Police Station,

Chilkur, Moinabad ,Ranga Reddy District, Telangana.

2020-2022
 CHAPTER-I
INTRODUCTION

Online trading definition is a basic understanding of online trading processes. Since the

invention of Internet people have been able to do practically everything virtually. Due to the

Internet online trading has become one of the most popular ways to trade as far as stock

trading turned out to be as available to independent investors as possible. Online trading

gives both beginners who've just had a single day trading course and advanced traders an

opportunity to trade stocks, options, forex and futures all over the world without physical

presence of a broker and with much lower commissions, because everything is done online

Internet trading commissions are clearly posted on the websites of the various

services, and are typically a fixed rate charge, depending upon the type of security being

traded and the size of trade. In theory, therefore, an Interest investor always knows what

commission he is being charged on each trade. Internet investors can take as much time as

they would like to take prior to placing a trade order. Similarly the online investor likely does

not have to worry that his broker is making unauthorized trades. Since there is no individual

broker making a commission, the only person who is authorized to trace in the account is the

actual investor. Furthermore, the internet investor can never become a victim of excessive

trading (where for the broker) since the investor maintains total control over the number of

transactions which take place in the account.

All of these positive features of internet trading may lead the unwary investor to

believe that Internet trading is a way to take control of their finances and save more money in

the process. Unfortunately, this is not always the case. The advantages of Internet stock
trading have also its weaknesses and these weaknesses present significant drawbacks for the

average investor.

First and foremost, the average investor is not an expert in the financial markets.

There is a danger for allowing the autonomy of online trading to hull you into the belief that

you are an expert investor. An online investor sitting at home at a personal computer also

foregoes proper investment advice and financial planning, perhaps among the most valuable

services provided by traditional brokers.

There are, of course, additional risks relative to performing transactions over the

Internet especially on a shared computer. Those people whom investors have provided their

account number and password can freely trade that account while the investor will have little,

if any, resource against the brokerage firm for the breach of security.
 CHAPTER-II
REVIEW OF LITERATURE
TITTLE OF PAPER : Examines the impact of financial and

capital market

AUTHOR :Shirai

YEAR :2019

ABSTRACT

Examines the impact of financial and capital market reforms on corporate finance in India.

India’s financial and capital market reforms since the early 1990s have had a positive impact

on both the banking sector and capital markets. Nevertheless, the capital markets remain

shallow, particularly when it comes to differentiating high-quality firms from low-quality

ones (and thus lowering capital costs for the former compared with the latter). While some

high-quality firms (e.g., large firms) have substituted bond finance for bank loans, this has

not occurred to any significant degree for many other types of firms (e.g., old, export-oriented

and commercial paper-issuing ones)

TITTLE OF PAPER : Stages of capital market

AUTHOR : Bajpai

YEAR : 2017

ABSTRACT

Concludes that the capital market in India has gone through various stages of liberalization,

bringing about fundamental and structural changes in the market design and operation,

resulting in broader investment choices, drastic reduction in transaction costs, and efficiency,

transparency and safety as also increased integration with the global markets. The opening up

of the economy for investment and trade, the dismantling of administered interest and

exchange rates regimes and setting up of sound regulatory institutions have enabledtime.

TITTLE OF PAPER :CochraneOrchutt two step procedures

AUTHOR : Sen Shankar Som and Ghosh

YEAR : 2018

ABSTRACT

An effort has been made to establish a relation between liquidity and volatility in their paper.

It has been found that there is a statistically significant negative relationship between risk and

stock market liquidity. Finally, it is concluded that there is no significant relationship

between liquidity and trading activity in terms ofturnover.

TITTLE OF PAPER : Global Stock Futures

AUTHOR : Masih AM, Masih R

YEAR :2017

ABSTRACT

A Diagstinoc Analysis of a Selected Emerging and Developed Markets with Special

Reference to India”, by using tools correlation coefficients , granger’s causality test,

augmented Dicky Fuller test (ADF), Elliott, Rothenberg and Stock point optimal test. The

Authors, through this paper, have tried to find out what kind of relationship exists between

emerging and developed futures markets of selectedcountries

TITTLE OF PAPER : Dynamic growth of derivatives

AUTHOR : Naresh, G

YEAR : 2016

ABSTRACT

Studied the dynamic growth of the Derivatives market, particularly Futures & Options and

the perceived risks to the financial sector continue to stimulate debate on the proper

regulation of these instruments. Even though this market was initially fuelled by various

expert teams’ survey, regulatory framework, recommendations byelaws and rules there is still

a debate on the existing regulations such as why is regulation needed? When and where

regulation needed? What are reasonable and attainable goals of these regulations? Therefore,

this article critically examines the views of market participants on the existing regulatory

issues in trading Derivative securities in Indian capital marketconditions

 CHAPTER-III
RESEARCH METHODOLOGY

NEED FOR THE STUDY:

The present study to review the online trading procedure a case study of ONLINE TRADING

at INDIABULLS SECURITIES LTD., as the exchange has changed it’s trading from it and

there is need to assess the performance of the capital market.

Maintaining good records requires discipline, just like good trading. Unfortunately, many

commodity traders don’t take the time to track their trading history, which can offer a wealth

of information to improve their odds of success. Most professional traders, and those who

consistently make money from trading commodities, keep diligent records of their trading

activity. The same cannot be said for the masses that consistently lose at trading

commodities.

SCOPE OF THE STUDY

 ‘Investor can assess the company financial strength and factors that effect the

company. Scope of the study is limited. We can say that 70% of the analysis is proved good

for the investor, but the 30% depends upon market sentiment.

 The topic is selected to analyses the factors that affect the future EPS of a company

based on fundamentals of the company.

 The market standing of the company studied in the order to give a better scope to the

Analysis is helpful to the investors, share holders, creditors for the rating of the company.
OBJECTIVES OF THE STUDY:

 It is to analyze the changes in trading after the exchange shifted from outcry to
online trading system.
 It is to study the functions of INDIABULLS SECURITIES LTD through
various departments.
 To know the online screen based trading system adopted by INDIABULLS
SECURITIES LTD and about its communication facilities. The appropriate configuration
to set the network, which would link the INDIABULLS SECURITIES LTD to individual /
members.
 To know about the latest and future development in the stock exchange trading
system.

RESEARCH METHODOLOGY OF THE STUDY:

The data collection methods include both primary and secondary

Collection methods.

Primary method: This method includes the data collected from the personal interaction with
authorized members of INDIABULLS SECURITIES LTD.

Secondary method: The secondary data collection method includes:

 The lecturers delivered by the superintendents of respective departments.
 The brochures and material provided by INDIABULLS SECURITIES LTD.
 The data collected from the magazines of the NSE, economic times, etc.
 Various books relating to the investments, capital market and other related topics.

PERIOD OF STUDY

 A Project Of 45 Days
Pre-Testing Or Pilot
In this chapter, we detail the possibilities and pitfalls presented by pretesting, the methods of
validating the survey instrument and its measurements, and pilot testing, the “dress rehearsal”
of survey administration and procedures Pretesting and pilot testing are invaluable
components of survey research, affording researchers a valuable opportunity for reflection
and revision of their project before the costs of errors begin to multiply later on. We begin
this chapter with a discussion of the goals of and guidelines for pretesting followed by a
summary checklist to help you make the most of this procedure. Then we provide an
elaboration of the broader process of pilot testing the entire project from start to finish.

Survey Tools using in the study

Statistical Tools: MS-excel and pie and bar diagrams are used to analyze the data.

LIMITATIONS OF THE STUDY:

The study confines to the past and present system of the trading procedure in the and the
India info line study is confined to the coverage of all the related issues in brief. The data is
collected from the primary and secondary sources and thus is subject to slight variation than
what the study includes in reality.
The study is confined to online trading procedure only. Problems of listing are not covered
due to limited time and to keep the study in manageable limits.
- Time constraint was a major limiting factor. Forty five days were insufficient to even
grasp the theoretical concepts.
- Several other strategies that could have been studied were not done.
- Lack of knowledge with the brokers.
- Difference of theory from practice.
Absence of required knowledge and technology
 CHAPTER-IV
COMPANY PROFILE
COMPANY PROFLE
Indiabulls Group is one of the top business house in the country with business interests in
Real Estate, Infrastructure, Financial Services, Retail, Multiplex and Power Sectors.Indiabulls
Group companies are listed in Indian and overseas financial markets. The net worth of the
Group exceeds USD 2 billion.

To be the largest and most profitable financial services organization in Indian retail market
and become one stop shop for all non banking financial products and services for the retail
customers  

Rapidly increase the number of client relationships by providing a broad array of product
offering to emerge as a clear market leader

Indiabulls Group has four separately listed companies with

subsidiaries which contributed in enhancing scope and profile of the business  
Top  Indiabulls Financial Services Limited
Indiabulls Financial Services Limited was incorporated on January 10, 2000 as M/s Orbis
Infotech Private Limited at New Delhi under the Companies Act, 1956. The name of
company was changed to M/s. Indiabulls Financial Services Private Limited on March 16,
2001. In the year 2004, Indiabulls came up with it own public issue & became a public
limited company on February 27, 2004. The name of company was changed to M/s.
Indiabulls Financial Services Limited.

The company was promoted by three engineers from IIT Delhi, and has attracted more than
Rs.700 million as investments from venture capital, private equity and institutional investors
and has developed significant relationships with large commercial banks such as Citibank,
HDFC Bank, Union Bank, ICICI Bank, ABN Amro Bank, Standard Chartered Bank and
IL&FS.

Mr. Rajiv Rattan

Mr. Sameer GelhautMr. Saurabh K Mittal
Co-Founder &
Chairman Director
Vice Chairman
(Indiabulls Group) (Indiabulls Group)
(Indiabulls Group)
 
The company headquarters are co-located in Mumbai and Delhi, allowing it to access the two
most important regions for Indian financial markets, The marketing and sales efforts are
headquartered out of Mumbai, with a regional headquarter in Delhi. Back office, risk
management, internal finances etc. are headquartered out of Delhi/NCR allowing the
company to scale these processes efficiently for the nationwide network.

Company is listed on:

 National Stock Exchange

 Bombay Stock Exchange
 Luxemburg Stock Exchange

Market capitalization:

 USD 6,300 million (31st December, 2015)

Net worth

 USD 905 million (31st December, 2015)

 Highest Ratings from CRISIL CRISIL is India's leading Ratings, Research, Risk and
Policy Advisory Company
  Broad array of product offering

1. Loans & mortgage

o Home Loans/Home Equity
o Small Medium Enterprises
o Commercial Vehicle
o Commercial Credit
2. Life Insurance
3. Advisory Services
4. IPO Financing

Strategic Updates
  Indiabulls Financial Services limited (IBFSL) completed the de-merger of its real
estate business into a separate publicly traded company, (IBREL) unlocked over Rs.
10000 crore of shareholder wealth.

 De-merger: De-merger of Indiabulls Securities Limited from Indiabulls financial

services limited. Each shareholder of Indiabulls Financial Services Limited received a
share of Indiabulls Securities Limited.

 SARFAESI Act Notification: Indiabulls Housing Finance Limited, a wholly owned

subsidiary of Indiabulls Financial Services Limited has been notified as a ‘Financial
Institution’ for the purpose of SARFAESI Act, 2002. This notification is being
effectively used by the Company to yield positive results in speedy recoveries of
delinquent mortgage loans.

CHAPTER-V

CHAPTERIZATION

CHAPTERIZATION
CHAPTER-1
INTRODUCTION
CHAPTER-2
REVIEW OF LITERATURE
CHAPTER-3
RESEARCH METHODOLOGY
 NEED OF THE STUDY
 OBJECTIVES OF THE STUDY
 SCOPE OF THE STUDY
 DATA COLLECTION
 LIMITATIONS
 STATISTICAL TOOLS
CHAPTER-4
INDUSTRY/COMPANY PROFILE
CHAPTER-5
DATA ANALYSIS
CHAPTER-6
FINDINGS
CHAPTER-7
SUGGESTION & CONCLUSION
BIBLIOGRAPHY
ANNEXURES