EXECUTIVE SUMMARY

Mark Twain once divided the world into two kinds of people: those who have
seen the famous Indian monument, the Taj Mahal, and those who haven't. The same could be
said about investors.

There are two kinds of investors: those who knows about investment
opportunities & those who don’t. India seems to be a small dot to someone sitting in U.S.A
but upon closer inspection, you may observe the same things done by any promising market.

Trade in Indian stock market takes place in two major stock exchanges: the
Bombay Stock Exchange (BSE)& the National Stock Exchange (NSE). The BSE has been
existence in 1875. On the other hand the NSE founded in 1992 and started trading in 1994.
Both the exchanges follow the trading rules & patterns i.e trading mechanism, trading hours,
settlement process, etc. The BSE has more than 500 listed firms, whereas NSE had about
1600. Out of all the listed firms on BSE, only about 500 firms constitute more than 90% of its
market capitalization; the rest of the crowd consists of highly illiquid shares.

All the significant firms in India are listed on both the stock exchanges. NSE
enjoys a dominant share spot trading with about 76% of the market share, as of 2016, and
almost a complete monopoly in derivatives trading, with about a 90% share in this market as
on 2016. Both exchanges compete in order to lead in reduced cost, market efficiency, and
innovation. Presence of arbitrageurs keep the prices on both the stock exchanges within a
tight range.

For future growth emerging markets like India are becoming fast engines. At
present very low percentage of savings are done by Indian in the domestic stock market, but
with GDP growing at 15-16% annually and a stable financial, we might see more money
joining the race. I think it’s the right time for the individuals to practically think about the
Indian bandwagon.

The overall responsibility of development, regulation, and supervision of the

stock market rests with the Securities and Exchange Board of India (SEBI), which was
formed in 1992 as an independent authority. Since then, SEBI has consistently tried to lay
down market rules in line with the best market practices. It enjoys vast powers of imposing
penalties on market participants, in case of a breach
 OBJECTIVES OF THE STUDY

The objectives of my research project is –

 To analyse online trading & its process.

 To determine the growth and future of online trading industry in India
 To understand the customer perception of online trading

SCOPE OF THE STUDY

Customers enjoys benefits i.e enhanced control ese of use and it also reduces
transaction cost through online services. In the service industry online services are growing
rapidly. There is observed a huge development in the stock exchanges such as Singapore,
UK, USA, France, Japan, and India are facing competition in the field of online services.
Brokers are focusing on superior service quality.

To study online trading deeply first of all we have to have to understand the
history of stock trading in India, and total exchange in India such as NSE and BSE. The price
at which each buying and selling transaction takes is determined by the market forces (i.e.
demand and supply for a particular stock).

In previous times buyers & sellers use to go at the stock exchanges on daily
basis. They had deal to deal with the brokers face to face but nowadays due to IT SERVICES
every thing seems to be easy doing work online. Now investors don’t have to put their
physical efforts in the buying & selling of the shares. They can trade from office, home over
phone and sitting in any corner of the world through internet.
 INTRODUCTION
Overview of Online Trading

 Stocks:
A share or capital stock of the company is the money invested in the business
by its founders. It acts as a security towards the creditors of the business though it cannot be
withdrawn to the disadvantage of the creditors. Stock is defined from the property and assets
of the business which may differ in quantity and value. Buying a share for long term means
that you want to maintain relation with the company for longer period of time thinking that
the company will earn profit in future. If you buy a stock of a firm and the firm’s achieve
good returns then the price of the stock should rise. If the firm fails then stock price should
fail too and go down. The stock exchanges play with each other in this stock up & down
game the companies with maximum buying & selling makes more profit. Company stocks
are assigned a “ticker’’ or trading symbol by the listed company.

 Stock Market:
A stock market or a equity market is a public market (a loose network of
economic transactions, not a physical facility or discrete entity) for the trading of the
company stock & derivatives at an agreed price, these are the securities listed on a stock
exchange as well as those only traded privately. The bulk of the world stock market was
approximate about $36.8 trillion US at the beginning of October 2008. The worlds
derivatives market has been estimated at about $802 trillion face or nominal value 11 times
the worlds economy. Derivatives market is stated in notional values, cannot be directly
compared to a stock or a fixed income security. Additionally a huge majority of derivatives
cancel each other out. Numerous such comparatively illiquid securities are valued as marked
to model, rather than an actual market market price. Stocks are listed and traded on stock
exchanges which are establishment of the corporation or mutual organisation specific in the
business of bringing buyers and sellers of the organization to a listing of stocks & securities
together. The largest stock exchange in the United States, by market capital is the New York
Exchange, NYSE, while in Canada, is the Toronto Stock Exchange.

 Trading:
Ancient, share market were tangible locations were buyers & sellers meet and
negotiated. With the development in conveyance technology in the late 20 th century. The urge
for a physical location become less important as traders could execute from remote locations.
Contributors to the share market range from small individual stock investors to large hedge
fund traders, who can be anywhere in the world. These orders generally wind up with a
professional at a stock exchange, who fulfil the order. Some exchanges are corporeal
locations where settlement is carried out on a trading floor, by a method known as open
outcry. These type auction is used in stock exchanges and commodity exchanges where
traders may enter ‘’verbal’’ bids and offers simultaneously. The other type of stock exchange
is of hectoring kind, collected of a network of computers, where trades are made through
internet. The shares of a company can be transferable in general from share holder to other
parties by sale or other forms unless unbearable. Most mastery have entrenched laws and
regulations governing such transfers , strikingly if the user is publicly-traded entity.

There are various products traded. They are:

 Forwards
 Futures
 Options
 Swaps

 History:
The two main stock markets of India are:-

 Bombay Stock Exchange:

Establishment in 1875, BSE (formerly known as Bombay Stock Exchange

ltd.) is Asia’s first n fastest Stock Exchange with the speed of 200 micro seconds and one of
India’s leading leading exchange group. From last 140 years BSE has smoothen the growth
of the Indian corporate sector by allocating it an systematic capital-raising platform.
Desirably known as BSE, the bourse was established as ‘’The Native Share & Stock
Brokers’’ Association in 1875. BSE is the corporatized and demutualised entity, with a broad
shareholder based which includes two leading global exchanges, Deutsche Bourse and
Singapore Exchange as strategic partners. BSE contribute an planned and transparent market
for trading in equity, debt instrument, derivatives, mutual funds. They also has a plat form for
trading in equities of small-and-medium enterprise (SME). More about 5500 companies are
listed on BSE Trying to make it a World’s No.1 Exchange in terms of the listed members.
Companies listed on BSE adjure a total market capitalisation of USD 1.68 trillion as of
March 2015. It is also one of the World’s leading exchanges (5 th largest in March 2015) for
index options trading (Source: World Federation of Exchanges).

 National Stock Exchange (NSE):

The National Stock Exchange (NSE) is India’s leading stock exchange

housing various cities and towns across the country. NSE established by leading institutions
to distribute a modern, fully automated screen-based trading system with national reach. The
Exchange has lead about unparalleled clarity, speed, & efficiency, safety and market
integrity.
 NSE has played a active role in improving the Indian securities market in
terms of microstructure, market practices and trading volumes. The market today uses state-
of-art information technology to provide an efficient and transparent trading., clearing and
settle mechanism, and has witnessed several innovation in products and services, viz.
demutualization of stock exchange governance, screen based trading, compression of
settlement cycles, dematerialization and electronic transfer of securities, securities lending
and borrowing, non-manual trading members, fine-tune risk management systems.

National Stock Exchange (NSE) launch while late than BSE, is presently the
leading stock exchange in India in terms of the total volume traded. It is also ground in
Mumbai but has its phantom in over 1500 towns and cities. In phrase of market
capitalization, NSE is the second largest burse in South Asia. National Stock Exchange got its
identification as a stock exchange in July 1993 under the Securities Contract (Regulation)
Act, 1956. The products traded in NSE are:

Regulators of securities market

The management of regulating the securities market is mutually done by
Department of Economic Affairs (DEA), Department of Company Affairs (DCA), Reserve
Bank Of India (RBI) and Securities Exchange Board Of India (SEBI).

Securities Exchange Board Of India

SEBI or Securities Exchange Board of India authorized to protect the
investors’interest regulate and succeed securities in India. The SEBI is the regulatory
authority in India established under Section 3 of SEBI Act, 1992. SEBI Act 1992 for
establishment of Securities and Exchange Board of India (SEBI)

Derivatives
Derivatives are assets, which acquire their significance from an underlying
asset. These underlying assets are of various categories like:

 Commodities including grains, coffee beans, etc.

 Precious metals gold and silver
 Foreign exchange rate.
 Bonds of different types, including medium to long-term negotiable debt securities
issued by government, companies etc.
 Short term debt securities such as T-bills.
 Over-the-Counter (OTC) money market products such as loans or deposits.
 Equities
For Example, a Dollar further is a derivative contract, which gives the buyer a
right & commitment to buy dollars at some future date. The range of the derivatives are steel
by the spot prices of these underlying assets.
 Nevertheless, the most important use of Derivatives is in relocating market
risk, called Hedging, which is a protection against losses resulting from unsought price or
haphazard changes. Thus derivatives is the most important tool in risk management.

Benefits of online trading

Some online brokerage firms reported 100+ per cent annual growth rates
through the year 2000. The increase was because of the benefits investors can gain from
online investing. These benefits include low transaction costs, speed, convenience, boundary
spanning abilities, and immediate access to financial information. According to transaction
cost have been driven down because of the increased number of online brokerage firms. In
fact the dramatic increase of online brokerage firms has led to increased competition and
lowered commissions that an investors must pay trade.

Along with low cost transaction, the main strategy of online discount
brokerages is the speed and delivery of almost instantaneous transactions. In todays world of
fast food and 24 hour service, investors cannot help but want the same type of fast service
applied to financial industry. That is why many investors enjoy the convenience e-brokerages
offer by allowing them to go online and complete transaction at almost any time during day
or night. Time is saved because investors do not have to phone their brokers during the
normal business hours in order to complete their transaction.

Another benefit of online trading is its ability to span boundaries. Many

investors are interested in buying foreign stocks and with online trading systems in place;
these investors are drawn to its boundary spanning capabilities. This is also true for foreign
investors who want to invest in the U.S market. Now, with the internet, they have easier
access to make their overseas transactions.

A final benefit customers can derive from online trading is that it access
instant information. Vakil and Lu (2005) stated that the internet has given people access to
immediate financial information whenever they want it. They felt that the availability of this
financial information should lead investors to make better-informed choices. This though is
also shared by Bhasin (2005-2006), especially since the information that is now available to
the average investors was once available to people working in the business of finance.

Benefits of online trading to brokers/financial planners

The investors are just one group affected by the development of online
investing; another group that has been influenced is the brokers/financial planners. With e-
brokerages attracting twelve million investors from 1994 to 2000, it may seem like traditional
financial planners soon be extinct. However this is not the case as many people from the
financial industry have witnessed that the growth of online trading has created benefits as
well. This include increased publicity, lower start-up costs, increased client base, ease of
communication, risk management. The attention has been given to online brokers in terms of
advertising has encouraged more people to trade thus, in the long run, this has created more
business for the financial markets in general.

A second benefit according to Barber and Odean (2001), is that the fixed start-
up costs of opening brokerage are far lower than opening a traditional brokerage service.
Therefore many brokers might consider putting a part of their service online, thus reduce
their staff cost. The staff cost can be reduced because it does not take as many personnel to
run an e-brokerage site as it does to mange a traditional brokerage firm.

E-brokerages has allowed the brokers wider access to a variety of different

people, therefore increasing their client base and allowing then to offer many different types
of services of their customers. Ameritade and e-trade are examples of firms that have found
new ways to deliver traditional services and new services

Another benefit of broker is ease of communication. Many financial planners

see the greatest gift that the Internet has given them as allowing them to improve
communication with their clients. They appreciate the fact the Internet has saved them money
by reducing the costs of communication and by making it easier to get information to their
customers.

One final benefit that online trading has for brokers is that it makes risk
management much easier. When an investor places a trade online, the system first can check
the investors bank account to make sure that the individual has the funds available to make
the trade and this lowers the credit and payment risk that traditional brokers have had to deal
with in the past.

Characteristics of online trading

According to the research by Barber and Odean (2002), many online
shareholders share similar characteristics. The majority of them are young men without
children and high level of income. They found that active traders with a propensity for high
investment risk and an unusually strong performance in the stock market are all
characteristics shared by many investors whom decide to trade online.

Opiela (2000) quotes a research firm as saying that the two types of investors
that are trading online are by their definition the ‘’Aggressive Affluent’’ and those who
would like to ‘’Get rich Quick’’. On that note, Hurley (2000) states that online trading is
spawning a younger type of client that is more aggressive and well informed. It has also been
started that investors who participate in online trading generally have a higher education
level, are at ease navigating the Internet for relevant information, and known how to apply it
in order to make their transactions.
 It is also interesting that once investors start trading, many of them become
very overconfident according to a study by Barber and Odean (2002). This is due to an
illusion of knowledge and an illusion of control. An illusion of knowledge is when investors
believe that since they have access to additional information that states otherwise. In fact,
usually because they have access to so much information, investors suffer from information
overload and their actual predictive skills for picking stocks begin to decline. An illusion of
control is when an investor believes that his involvement will change the outcomes. They will
feel that since they are in control of their investments that they have control over their returns
and can therefore beat the market. As a result of this illusion of control, these investors will
have a tendency to trade too often and too speculatively.

Konana, Menon, and Abramowitz (1999) break online investors into two
categories: the early adopters and the late adopters. They state that the early adopters are
aggressive ‘do-it-yourself’ types of investors whereas the late adopters rely more on a
broker’s advice before going through with trades. But even if they rely on a broker for some
forms of advice, most online investors have to be self-directed because online brokerages do
not make a habit of giving advice on what or when to trade.

Growth of online trading

According to an artefact by Krishnamurthy B in 2005 after initiation of online

trading in India in the year 2000 online trading is gained momentum with trading volumes
growing by 150 percent per annum in the years 2005-2006 and its was more than approx
210% in the year 2008. The magnitude of all trades executed through the Internet on the
National Stock Exchange has grown less than Rs 100 crores (Rs 1 billion) in June 2003 to
over Rs 950 crores (Rs 7 billion) in July 2008 which was a well formed growth in the year
2005 in the starting of 2008 the growth of online share was good but at the mid of the year
when subprime crisis affected India counting all over the world, market of online trading got
decline more than 50%.

Now the growth of online trading is on its right track, Indian Stock market has
been proclaim the one of the safe and sturdy market of the world, so here in India the online
trading is growing like anything in comparison to the whole world.

At the end of July 2008, there were more than 176 registered brokers on the
NSE and the number of Internet trading subscribers to about 2.204 million. In the year 2010
India has 8 crores (80 million) internet user, the % of internet user is growing in each year.

At the same time the number of subscribers trading through the portal of kotak
securities ltd gone up crucially by 150 per cent and the number of online trading customers
had grown from 38000 to 80000. And the company expected to have atleast 1380000
customers by the end of that fiscal. In the recent past years of 2005 ICICI Direct and the
Indiabulls jot down an annual volume growth of 100 per cent and Indiabulls had about 36 per
cent id India’s online trading volumes.

Chief Execute of Reliance Money Ltd says that online investing says that
saturate is still at a nascent stage in India and expects that Internet-based trading will finally
take about half of the total stock market trading as like with prosper market such as the U.S
Philippines has the highest online trade.

Total volume of online trade in India is about 33-55% of total trades.

According to brokers the better broadband connectivity across the country and wide
awareness of equity as an asset class will raise the online trade volumes to over 50% of total
trade.

 Safety measures that have to be taken in case of online trading:

 Trade orders should not be placed from shared PCs or cyber cafes.
 Always log out after carrying out trade in order to avoid any misuse of your account.
 Personal computers have to be protected against viruses by installing anti-virus
solution.
Do not click on “remember me” option when you sign in to your trading
account from a different location.

Investment in financial assets is offered by several brokers. You can choose

that which suits your needs and demands after comparison of brokers on the basis of services,
brokerage charges, etc. Online trading helps you trade or invest in the most secured way. Its
simple, easy and fast to trade
 LITERATURE REVIEW

Stock Market is one of the most versatile sectors in the financial system, it
also plays an important role in economic development. It is a hub where facilities are
provided to the investors to buy and sell their Shares, Bonds and Debenture etc. In other
words, it provides a platform to trade various securities and derivatives without any barriers.
In the current scenario, long term investors are investing in the companies through Stock
Market to attain profits. In India listed Stock Markets are Bombay Stock Exchange (BSE),
the National Stock Exchange (NSE) and the Calcutta Stock Exchange (CSE). These three
are largest Indian Stock Market.

Some of the research papers that I have read are

1] Customer behaviour in stock market – Prachi Golya (2012)

Buy a stock at low price and sell it at higher price for doing so you have to
study the trends in market and have patience. The survey in this research paper showed that

 70% of the respondents don’t want to invest in share capital due to the following
reasons
 Don’t have proper knowledge about stock market.
 Don’t have the time
 And feel too risky about stock market.

2] A project report on investor behaviour towards stock market – Deepak Jindal (2016)

It was found that Majority of the small investors do not consider various
financial elements before investing in to stock market. They are not conservative in nature
about company events as they are Unbiased, under speculative related domestic events and
also under opportunistic about world economic events. The investors do not take decisions
immediately but they try to understand the market first and then react.

3] Customer’s perception towards equity trading – Nikita Gupta (2011)

Respondent don’t have a good impression of stock market and are not that
interested in keeping the money in stock market. People look for investment which can be
taken out at the time of emergency or which has no locking period.

4] Customer’s preference towards investment in equity shares and mutual funds –

Manoj Kumar (2013)

 This study revealed that real estate and gold are most preferred investment
alternatives among various investment avenues. Respondents are not much inclined towards
post office investments; NSC, KVP etc. Lock in period works negatively for investors
because premature withdrawal is not allowed. The investors cannot get the money during
emergency situations. Investors prefer liquidity and return as an important criteria for
investment consideration. Hence mutual fund and equity share are also considered as good
investment alternatives.
 RESEARCH METHODOLOGY

The research methodology clarify what the undertaking is, how to proceed,
how to measure progress, and what originate success. It render us an furtherance of well-
being of human knowledge, tools of the trade to carry out research, tools to look the things in
life without prejudice; flourish a unfavorable scientific attitude, drill thinking to observe
objectively (scientific deduction and skill thinking) skills of research particularly in the ‘age
of information’. Also it describe the way in which the data is collected in a research report. In
this paper it presents one element of the research methodology from a real project; the
theoretical design and framework respectively.

 Sources od Data:
Data, facts, figures, other pertinent material of past and present and surveying
are the basis for study and analysis. Without an analysis of accurate data no specific
references can de drawn on the questions under study. Inferences based on imagination or
estimate cannot provide correct answer to research questions. The applicability fairness and
reliability of data determine the quality of the findings of a study. For the study, sources of
data are collected namely primary and secondary data.

 Primary data:
Primary data is origin from the researcher gathers the data. It is the immediate
data, which is used right for the analysis purpose. Primary data always gives a researcher a
fairer image. In the research primary data has been collected from 100 respondent have been
randomly selected. In this primary data plays an important role for analysis, interpretation,
conclusion and suggestions.

 Secondary data:
Secondary data is a data which gathered for other purposes. Secondary data
also plays a key factor in providing information which will influence the analysis. Few main
sources of secondary data include newspaper, magzines, business, journals, internet.

 Exploratory research design:

Exploratory research is research supervised for a problem that has not been
clearly defined. Exploratory research helps regulate the best research design, data collection
method and selection of subjects.

 Sample area:
Pune city is taken as a sample area for study.

 Data collection instrument:

Structured Questionnaire.
  Sampling procedure:
we have used non-probabilistic sampling technique that is convenience
sampling.
 INTERPRETATION
PRIMARY DATA

Primary data is collected by the survey which was taken by the client of karvy.
All the respondents who are the client are to be taken into consideration. All the respondents
trade in mutual funds. They have been invested their money in mutual fund schemes. Total
number of respondents are 100 which were selected on the random basis.

Gender:

Gender No. Of respondents

Male 50
Female 50
Total 100

Gender

male
female
50% 50%

Interpretation:

In this survey the total number of respondents were 100. Out of which 50
respondents were male and the 50 were female.

Monthly income [Rs.]:

 Monthly income [Rs.]: No. Of respondents
Less than 20000 15
20000– 40000 20
40000 – 60000 30
60000 & above 35
Total 100

monthly income inRs.

less then 20000 20000-40000 40000-60000 more then 60000

15%

35%

20%

30%

Interpretation:

All the individual who have more income in a month invest there money in
mutual funds schemes. More the income level more will be the risk taking capacity. Out of
total respondents 35% of individual whose income is more than Rs. 60000 do investment in
mutual funds whereas whose income is less they invest less money because they don’t want
to take more risk because of there low income.

Online trading
 Online trading No. of respondents
Yes 100
No 00
Total 100

online trading
Yes No

100%

Interpretation:

According to Indian market almost everyone follow the investment pattern.

Sample size is 100 respondents and in todays world everyone is focused on investing
therefore all the 100 respondents are investing their income in some or the other way.
Therefore each and every one know about online trading.

Having D- mat account

 D- mat account No. of resonpondents
Yes 90
No 10
Total 100

having D-mat account

Yes No

10%

90%

Interpretation:

According to the SEBI guidelines now a days DEMAT account is mandatory

to every person who is investing their money in share market. It is very easy to manage all
the certificates in electronic form than that of physical form. From the 90 sample size all the
investors those who are investing their money in share market have DEMAT account.

D-mat account
 Company name No. of respondents
Zerodha 65
Sharekhan 13
Anand rathi 07
Other 05
Total 90

No. of respondents
zerodha Sharekhan Anand rathi Other
6%
8%

14%

72%

Interpretation:

To open an DEMAT account it is necessary to contact with the broking firm.

Therefore from the 90 respondents 72% of respondents are having a DEMAT account in
Zerodha. Whereas 14% respondents having DEMAT account in sharekhan, also 8% and 6%
having DEMAT account in Anand Rathi and other broking firms respectively.

Products you prefer to invest in

 Preference of investment No. of respondents
stock/share 55
PMS 10
mutual funds 22
Insurance 03
Total 90

Preference of investment
stock/share PMS mutual funds Insurance
3%

24%

61%
11%

Interpretation:

Now a days most of the people are interested in share market. From the
survey taken 61% are interested to invest their money in shares. 25% respondents showing
their interest in mutual fund because of low risk as compared to invest in stocks. 11% of
respondents choose PMS service to invest their money because they don’t have time or
knowledge to invest their money. And at last 3% of people invest in insurance through
broking firm.

Benefits from online trading

 Benefit of online trading No. of respondents
no dependency on broker 47
real time updates 08
reliable and convenient 35
Total 90

Benefit of online trading

no dependency on broker real time updates reliable and convenient

39%

52%

9%

Interpretation:

According to the SEBI guidelines DEMAT account is compulsory for trading

in share market. From the above the graph we can see that out of total respondents 52% of
people tells that that after having an online app they are not dependent on broker for trading.
Whereas 39% of people think that it reliable and convenient and only 9% of the respondent
think that they get real time updates.
 Media preferred the most for trading

Preference for No. of respondents

investment
T.V 35
Newspaper 11
Broker 12
internet 32
Total 90

No. of respondents

T.V
36%
39%
Newspaper
Broker
internet

13%
12%

Interpretation:

Before consulting to some or other no one in India prefer investing. According

to above graph 39% of people belive television news for investing their money in share
market. Whereas 36% of people search on internet before investing their money in share
market. 13% and 12% of people invest their money after consulting with broker and reading
the newspaper respectively.
 Information regarding the stock market

Updated information No. of respondents

Yes 60
No 20
Maybe 10
Total 90

updated information
11%

yes
no
22%
may be

67%

Interpreation:

Brokers are the most important part of online trading as they have a good
knowledge about all the shares prices. So from the above pie chart 71% of respondent receive
updated information about shares trading
 Experience of on-line trading till date

Experience of online No. of respondents

trading
very easy to operate 48
very difficult to operate 07
Secure 35
Any other 10
Total 90

Experience of online trading

very easy to operate very difficult to operate
secure Any other

10%

48%
35%

7%

Interpretation:

In todays world, online trading has become a must. It is very easy to operate
and secured too with the help different app. But when it comes to new start or any person
who is new to it faces lots of difficulty but there many app or people representing that
particular app who give process online or a person send to home to guide them but it is in low
percentage.48% of respondents feels that it is very easy to operate and only 7% of
respondents feel that handling an app is very hard.
 Feel safe while doing online trading

feel safe while doing online No. of respondents

trading
Yes 55
No 15
May be 20
Total 90

no. Of respondents

22%

yes
no
maybe

17% 61%

Interpretation:

As we know online trading don’t require any physical efforts like going and
buying share of a particular firm as we used to do before. So most important parts of online
trading is good knowledge and proper prediction related to the pricing of shares. From the
above pie chart we get to know that 60% of the respondent feel that online trading

Opinion about investing in online trading

 Opinion of the No. of respondents
investing
tax saving 30
good return 15
Better future after 15
retirement
wealth creation 10
Other 20
Total 90

Opinion of the investing

tax saving good return
Better future after retirement wealth creation
Other
22%

33%

11%

17% 17%

Interpretation:

If we see towards current scenario, Investment in share market is risky for

common people and as we can see in the pie chart maximum people prefer for tax saving
investment. Therefore, maximum people with 33% invest for tax saving and minimum with
11% for wealth creation.

FINDINGS:
Nowadays number of women investment in share market is increasing day by day from last
few years

Those who have income more than 60000 mostly preferred to invest their money in share
market

Now a days total number of invester investing in share market are increasing because of
awareness regarding share trading by broking firm

Out of the total respondentds 72% of investors are satisfied with the services of karvy

61% of investors trading shares through karvy

According to the SEBI regulations opening an DEMAT account for share trading is
mandatory therefore there is increasing number of shares in DEMAT account

Now a days people are getting aware about the share market and willingly investing their
money in it

Most of the investors invest with the intention of tax saving purpose

Some people feel that they don’t have to depend on brokers and online trading is convenient
too and give real time updates.

Better results and wealth creation are the reasons which influence the customers.

Customers prefer mostly mutual funds,stocks and insurance products.

SUGGESTIONS:
 Most of the investors are happy with the services provided by karvy whereas some of
them are switching to the other companies because of brokerage

The company should think on brokerage charged by them so that they can retain the
customers

Some of the marketing strategies should be implement to attract the new customer

There should be more effective advisory so that they can retain the customer instead of their
brokerage

LIMITATION OF THE STUDY

It is always a problem to get an dynamic reply. There were not many willing participants:
lack of co-ordination remains an irregularity in most of the survey based researches.

The answerer behaviour changes according to stock market fluctuations.

The study is only restricted to Pune city

Time limitation is also one of the factor.

LIMITATIONS

The time period for doing this project was only of 2 months.

The survey was taken by the client of karvy.

Karvys’s app does not work on windows phone.

CONCLUSION
Online trading is the new concept in the stock market. In India, online trading is still at its
infancy stage. Online trading has made it easy to trade in the stock market as now people can
trade while sitting at their home. Now stock market is easily accessible by the people. There
are some problems while doing the trade through the internet. Major problem faced by online
trader is that the investors are loyal to their traditional brokers, they rely upon the suggestions
given by their brokers. Another major problem is that the people don't have full knowledge
regarding online trading. They find it difficult to trade themselves, as a wrong entry made by
them, can bring them huge losses.

BIBLIOGRAPHY
Websites:

www.bajajcapital.com

www.amfindia.com

www.mutualfundsindia.com

www.monecontrol.com

www.valueresearchonline.com

www.sbimf.com

www.sebi.com

www.economictimes.com

Magazines and Newspaper:

Front line

Stock market book

Dallals street Journal’s

The Times Of India

Company Brochures and Presentation

ANNEXURE
 QUESTIONAIRE

For the study of Consumer Behavior for online trading:

Name: ________________________________

Gender: Male Female

monthly income [Rs.]: Upto 25000 25000 – 50000

50000 – 75000 75000 & above

do you know about online trading ?

Yes No

Do you have a D- mat account

Yes No

In which company do you have a D-mat account

__________________________________________

what products do you prefer to invest in?

stock/share government securities/bonds

mutual funds insurance

others

What percentage of your annual income you invest in share market?

upto 10% of income more than 10% of income upto 20%

more than 20% of income upto 30% more than 30%

What benefits do you get from online trading?

no dependency on broker real time updates

reliable and convenient

9. Which media would you prefer the most for trading ?

T.V Newspaper

Magazines Journals
Do you receive updated information regarding the stock market from your dealer/ broker ?

Yes no

Maybe

10. How will you describe your experience with on-line trading till date?

very easy to operate very difficult to operate

not secure Any other

Do you feel safe while doing online trading?

Yes no

Maybe

12. what is your opinion about investing in online trading ?

tax saving good return

Better future after retirement wealth creation

Other