Black Book

ONLINE TRADING IN SHARE MARKET
A PROJECT SUBMITTED TO
GURU NANAK KHALSA COLLEGE
(AUTONOMUS)
DEGREE OF BACHELOR IN COMMERCE

(ACCOUNTING & FINANCE)
UNDER THE FACULTY OF COMMERCE
BY
BHAKTI VASANT KUPALE
ROLL NO: - 51
UNDER THE GUIDENCE OF

PROF. Amit Dubey
ONLINE TRADING IN SHARE MARKET (EQUITY)
DECLARATION
I the BHAKTI VASANT KUPALE declare that the project report “ONLINE TRADING IN SHARE
MARKET” is based on my own work carried out during the course of our study under the supervision of
Prof. Amit Dubey Sir.
I assert the statements made and conclusions drawn are an outcome of my research work. I further certify
that, the work contained in the report is original and has been done by me under the general supervision of
my supervisor. The work has not been submitted to any other Institution for any other
degree/diploma/certificate in this university or any other University of India.
BHAKTI. V. KUPALE
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ACKNOWLEDGEMENT
I have taken efforts in this project. However, it would not have been possible without the kind support and
help of many individuals and college. I would like to extend my sincere thanks to all of them.
I am highly indebted GURU NANAK KHALSA COLLEGE for their guidance and constant supervision as
well as for providing necessary information regarding the project & also for their support in completing the
project.
I would like to express my gratitude towards my parents & member of our college for their kind co-
operation and encouragement which help me in completion of this project.
I would like to express my special gratitude and thanks to industry persons for giving me such attention and
time.
My thanks and appreciations also go to my college friends in developing the project and people who have
willingly helped me out with their abilities.
2
INDEX
Sr. No. Topic Page No.
1 Certificate 4
2 Executive Summary 5
3 Introduction 6
4 Review or Literature 28
5 Research Methodology 31
6 Data Analysis 33
7 Findings 51
8 Suggestion & 53
Recommendation
9 Conclusion 54
10 Bibliography or References 55
11 Annexure 56
3
CERTIFICATE
This is to certify that this project report entitled “ONLINE TRADING IN SHARE MARKET
(EQUITY)” submitted to GURU NANAK KHALSA COLLEGE is a bonafide record of work done by
MISS. BHAKTI VASANT KUPALE of class TYBAF, under supervision of Prof. Amit Dubey during
year 2019-2020.
Place: MUMBAI
Date:
Project Guide External Examiner

Prof. Amit Dubey
Vice Principal Principal

DR. ALLAN DSOUZA DR. KIRAN MANGAONKAR
COLLEGE
SEAL
4
EXICUTIVE SUMMARY
In the recent times, trading on stocks has become as simple as shopping online. Investor can do that sitting in
a coffee shop using a smart phone. All it needs is a good internet connection, subscription to 3-in-1 account,
mobile banking application and sufficient funds in the bank account. Fortunately, all the hectic paper work
has come down to a single click or touch on the mobile screen. Many free and paid mobile and web
applications and portals for trading are available on internet. Stock trading can be financially rewarding if
done in the right way. Investing in the stock market involves riding the various ups and downs of the market.
Since the introduction of online trading in India, investing has become convenient. Stock market trading is a
great alternative when it comes to long-term wealth creation. Although, it might take a while for you to hone
your skills.
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INTRODUNCTION
We invest in shares to build our wealth in the long run. While some people view shares to be a risky
investment, many studies have proved that putting your money in the right shares for a long period of time
(five to 10 years) can provide inflation-beating returns and be a better investment option than real estate and
gold.
People also have short-term strategies while investing in share markets. While shares can be volatile over a
short period of time, investing in the right shares can help traders make quick profits.
Earlier, stockbrokers would converge around Banyan trees to conduct trades of stocks. As the number of
brokers increased and the streets overflowed, they simply had no choice but to relocate from one place to
another. Finally, in 1854, they relocated to Dalal Street, the place where the oldest stock exchange in Asia –
the Bombay Stock Exchange (BSE) – is now located. It is also India’s first stock exchange and has since
then played an important role in the Indian stock markets. Even today, the BSE Sensex remains one of the
parameters against which the robustness of the Indian economy and finance is measured.
In 1993, the National Stock Exchange or NSE was formed. Within a few years, trading on both the
exchanges shifted from an open outcry system to an automated trading environment.
This shows that Indian stock markets have a strong history. Yet, at the face of it, especially when you
consider to invest in share market, it often seems like a maze. But once you start, you will realize that the
investment fundamentals are not too complicated. One of the basics of investment fundamentals is financial
planning.
A share market is where shares are either issued or traded in. Shares are thus, a certificate of ownership of a
corporation. Thus, as a stockholder, you share a portion of the profit the company may make as well as a
portion of the loss a company may take. As the company keeps doing better, your stocks will increase in
value.
A stock market is similar to a share market. The key difference is that a stock market helps you trade
financial instruments like bonds, mutual funds, derivatives as well as shares of companies. A share market
only allows trading of shares.
The key factor is the stock exchange – the basic platform that provides the facilities used to trade company
stocks and other securities. A stock may be bought or sold only if it is listed on an exchange. Thus, it is the
meeting place of the stock buyers and sellers. India's premier stock exchanges are the Bombay Stock
Exchange and the National Stock Exchange.
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TYPES OF SHARE MARKET

THERE ARE TWO KINDS OF SHARE MARKETS –
 PRIMARY MARKET
 SECOND MARKETS
 Primary Market:
A company enters the primary market to raise funds. It is in the primary market that a company gets
registered to issue shares to the public and raise money. Companies generally get listed on the stock
exchange through the primary market route. In case a company is selling shares for the first time, it is called
an Initial Public Offering or IPO, after which the company becomes public. While going for an IPO, the
company has to provide details about itself, its financials, its promoters, its businesses, stocks being issued,
price band and so on.
 Secondary Market:
Once new securities have been sold in the primary market, these shares are traded in the secondary market.
This is to offer a chance for investors to exit an investment and sell the shares. Secondary market
transactions are referred to trades where one investor buys shares from another investor at the prevailing
market price or at whatever price the two parties agree upon. Normally, investors conduct such transactions
using an intermediary such as a broker, who facilitates the process. Different brokers offer different plans.
As an Indian investor, the two share markets that you can trade in are:
 National Stock Exchange (NSE)

 Bombay Stock Exchange (BSE)
 National Stock Exchange (NSE)
The National Stock Exchange of India Limited (NSE) is the leading stock exchange of India, located
in Mumbai. The NSE was established in 1992 as the first dematerialized electronic exchange in the country.
NSE was the first exchange in the country to provide a modern, fully automated screen-based electronic
trading system which offered easy trading facility to the investors spread across the length and breadth of the
country.
 Bombay Stock Exchange (BSE)

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The Bombay Stock Exchange (BSE) is an Indian stock exchange located at Dalal Street, Mumbai.
Established in 1875, the BSE (formerly known as Bombay Stock Exchange Ltd.) is Asia's oldest stock
exchange. The BSE is the world's 10th largest stock exchange with an overall market capitalization of more
than $2.2 trillion on as of April 2018.
NIFTY 50
The NIFTY 50 index National Stock Exchange of India's benchmark broad based stock market index for the
Indian equity market. Full form of NIFTY is National Index Fifty. It represents the weighted average of 50
Indian company stocks in 13sectors and is one of the two main stock indices used in India, the other being
the BSE Sensex.
Nifty is owned and managed by India Index Services and Products (IISL), which is a wholly owned
subsidiary of the NSE Strategic Investment Corporation Limited. IISL had a marketing and licensing
agreement with Standard & Poor's for co-branding equity indices until 2013. The Nifty 50 was launched 1
April 1996, and is one of the many stock indices of Nifty.
NIFTY 50 Index has shaped up as a largest single financial product in India, with an ecosystem comprising:
exchange-traded funds (onshore and offshore), exchange-traded options at the NSE in India, and futures and
options abroad at the SGX NIFTY 50 is the world's most actively traded contract. WFE, IOMA and FIA
surveys endorse NSE's leadership position.
List of 50 companies that form part of NIFTY 50 Index as on 17 November 2019:
SR. NO. COMPANY

SYMBOL SECTOR
NAME
1. Adani Ports ADANIPORTS.NS Infrastructure
2. Asian Paints Ltd ASIANPAINT.NS Consumer Goods
3. Axis Bank AXISBANK.NS Banking
4. Bajaj Auto BAJAJ-AUTO.NS Automobile
5. Bajaj Finance BAJFINANCE.NS Financial Services
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SR. NO. COMPANY

SYMBOL SECTOR
NAME
6. Bajaj Finserv BAJAJFINSV.NS Financial Services
7. Bharti Airtel BHARTIARTL.NS Telecommunication
8. Bharti Infracted Ltd. INFRATEL.NS Telecommunication
9. BPCL BPCL.NS Energy - Oil & Gas
10. Cipla CIPLA.NS Pharmaceuticals
11. Coal India COALINDIA.NS Energy & Mining
12. Dr Reddy Lab DRREDDY.NS Pharmaceuticals
13. Eicher Motors EICHERMOT.NS Automobile
14. GAIL GAIL.NS Energy - Oil & Gas
15. Grasim Industries GRASIM.NS Cement
16. HCL Technologies HCLTECH.NS Information Technology
17. HDFC HDFC.NS Financial Services
18. HDFC Bank HDFCBANK.NS Banking
19. Hero MotoCorp HEROMOTOCO.NS Automobile
20. Hindalco Industries HINDALCO.NS Metals
9
SR. NO. COMPANY

SYMBOL SECTOR
NAME
21. Hindustan Unilever HINDUNILVR.NS Consumer Goods
22. Britannia Industries BRITANNIA.NS Consumer Goods
23. ICICI Bank ICICIBANK.NS Banking
24. IndusInd Bank INDUSINDBK.NS Banking
25. Infosys INFY.NS Information Technology
26. IOC IOC.NS Energy - Oil & Gas
27. ITC Limited ITC.NS Consumer Goods
28. JSW Steel JSWSTEEL.NS Metals
29. Kotak Mahindra Bank KOTAKBANK.NS Banking
30. Larsen & Toubro LT.NS Construction
31. Mahindra & Mahindra M&M.NS Automobile
32. Maruti Suzuki MARUTI.NS Automobile
33. Nestle India Ltd NESTLEIND.NS Food Processing
34. NTPC Limited NTPC.NS Energy - Power
35. ONGC ONGC.NS Energy - Oil & Gas
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SR. NO. COMPANY

SYMBOL SECTOR
NAME
36. PowerGrid Corporation

POWERGRID.NS Energy - Power
of India
37. Reliance Industries RELIANCE.NS Energy - Oil & Gas
38. State Bank of India SBIN.NS Banking
39. Sun Pharmaceutical SUNPHARMA.NS Pharmaceuticals
40. Tata Consultancy

TCS.NS Information Technology
Services
41. Tata Motors TATAMOTORS.NS Automobile
42. Tata Steel TATASTEEL.NS Metals
43. Tech Mahindra TECHM.NS Information Technology
44. Titan Company TITAN.NS Consumer Goods
45. UltraTech Cement ULTRACEMCO.NS Cement
46. United Phosphorus

UPL.NS Chemicals
Limited
47. Vedanta VEDL.NS Metals
48. Wipro WIPRO.NS Information Technology
49. Shree Cement SHREECEM.NS Cement
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SR. NO. COMPANY

SYMBOL SECTOR
NAME
50. Media & Entertainment

Zee Entertainment
ZEEL.NS
Enterprises
Sensex (BSE 30)

Sensex Is the index of Bombay stock exchange and it shows average of top 30 stock listed on BSE that's
why it is called BSE 30; it's is usually a very sensitive than Nifty so its name derived from sensitive+ index=
Sensex
The list of all companies that have been included in the BSE SENSEX from its inception in 1986 are listed
below. The base year of SENSEX is 1978-79 with a base value of 100. During the introduction of the
SENSEX in 1986, some of the companies included in the base calculation in 1979 were removed and new
companies were added.
Sr. Exchange
Company Sector Date Added
No. Ticker
21 December
1 500820 Asian Paints Paints & Varnishes
2015[3]
2 532215 Axis Bank Banking
3 532977 Bajaj Auto Automotive
24 December
4 500034 Bajaj Finance Finance
2018[4]
5 532454 Bharti Airtel Telecommunications
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6 532281 HCL Technologies Ltd Software
7 500180 HDFC Bank Banking
8 500182 Hero MotoCorp Automotive
9 500696 Hindustan Unilever Personal Care
Housing Development Finance

10 500010 Finance
Corporation
11 532174 ICICI Bank Banking
18 December
12 532187 IndusInd Bank Banking
2017
13 500209 Infosys Software
14 500875 ITC Cigarettes & FMCG
15 500247 Kotak Mahindra Bank Banking 19 June 2017
16 500510 Larsen & Toubro Infrastructure
17 500520 Mahindra & Mahindra Automotive
18 532500 Maruti Suzuki Automotive
19 500790 Nestle India Ltd 23 Dec 2019
20 532555 NTPC Power
21 500312 Oil and Natural Gas Corporation Oil & Gas
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22 532898 Power Grid Corporation of India Power 20 June 2016
23 500325 Reliance Industries Conglomerate
24 500112 State Bank of India Banking
25 524715 Sun Pharmaceutical Pharmaceutical 8 August 2011
26 532540 Tata Consultancy Services Software
27 500470 Tata Steel Steel
28 532755 Tech Mahindra Ltd Software
29 500114 Titan Co Ltd 23 Dec 2019
30 532538 UltraTech Cement Ltd 23 Dec 2019
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ONLINE TRADING:
Trading in the stock market has become less time consuming these days as you can trade all by yourself
without the assistance of a broker by means of online trading. Just like shopping for groceries online, you
can buy and sell stocks online. You need not be an expert to begin online trading as these trading platforms
are user friendly and do not necessitate any special learning. Mobile trading apps have even made things
easier for an investor or trader as you can carry out any transaction in the stock market through your
smartphone itself. You can trade from anywhere anytime through the mobile trading app.
Trading platforms provide all the necessary support and assistance by providing secured real time access to
trading, research reports, price analysis of stocks, market news, etc. You can buy or sell shares if you have a
trading account and an internet connection. Not only that, you can trade in currency, commodity, etc.
through one single trading platform. Online trading platforms help you trade without any difficulty as these
platforms enable high speed trading. These platforms have revolutionized the way trading is done. You can
simply download these to your system or mobile and can begin trading.
You can place trade orders or cancel orders at your will from the comforts of your home. It allows you to
make your own decision with regards to trading without any interference of the broker. You can buy shares
or invest in IPO or buy mutual funds as well. Online trading can be done by simply opening a demat and
trading account with any SEBI registered broker. Account opening can be done in a matter of 15 minutes.
The documents required to open an account are PAN card, address proof, AADHAAR card, mobile number
linked to AADHAAR, bank statement, cancelled cheque leaf and passport photograph.
Benefits of Online Trading:
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The Advantages of Online Trading are:

 It is simple:
It enables a trader to have a hassle-free trading experience. Anyone can use these platforms as
specific skill is not required to carry out trading online.
 It is less expensive:
It is less expensive as compared to traditional mode of trading. Brokers also promote online trading
as it reduces maintenance and other costs incurred by the broker.
 Quick and less time consuming:

Trading can be done in a seamless manner and in less time. Before the advent of online technologies,
trading was a cumbersome process as you had to visit the broker or call your broker for placing or
cancelling trade orders. Now, you can carry out trading even through a smartphone in the simplest
way.
 Complete control:
It allows you to have complete control over your portfolio. You can place trade orders from
anywhere anytime. That is the kind of flexibility you get due to online trading.
 Chances of error are less:
In case of traditional offline trading, there were more chances of errors due to miscommunication
between the traders and brokers. But in online trading, you can place trade orders or cancel without
broker’s interference and hence can manage trade transactions by yourself.
 Monitor investment at all times:

You can monitor investments anytime. There are mobile trading apps that can be downloaded in your
smartphone which help you stay in touch with the markets and also monitor your investment anytime
and take proper strategic moves accordingly. Loss making stocks can be removed and profit-making
stocks can be added to your portfolio by observing the way the market moves.
 Access to research reports:

You can get access to top research recommendations, reports, analysis on stock price based on
various charts. There are various brokerage websites through which you can have discussions with
research experts as well. You can take the best move with the help of financial advisors too.
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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.
How Does Online Trading Work?

When a user places the order for buying any particular stock on an online platform, his order gets saved in
the database of the trading member platform and the exchange platform. This data is then used to look across
all platforms selling that particular stock and display the result with the best price available. If the price
matches with the user’s demands and he confirms the order, then the process is validated by both the parties.
After all that is completed, the broker usually has three days to complete the settlement of the money, and
hence, the money is transferred to your account.
Many online trading platforms provide analysis of stocks, which helps the users to find the status of the
stock market. This also helps them predict the situation of stocks in upcoming days and shape their
decisions. Online platforms attract users through ease of use and reduced commission fees. Ultimately,
having a properly funded account is essential to execute trades smoothly on a platform.
When you buy or sell a stock through online trading, you order gets executed within seconds. But, within
these seconds lots of operations take place which you are unaware, such as:
 Your order is registered.

 Your order is placed in a database
 It searches for a for a seller and when both buyer and seller is matched, a confirmation message is
sent to both the parties.
 The order and the price are reported to the regulatory bodies. These regulatory bodies look over all
the trading activities and are displayed to all the investors.
 Your trading records are stored in case regulators want to study your past transactions.
 A contract is sent to your broker who sold the shares and the broker who bought them.
 After all this, the brokers have 3 days to exchange the cash and shares which is called settlement.
 After this process, the money or the shares are officially in your account.
To invest in the stock market and buy equity, you need three things. First, a bank account is necessary to
draw money when you buy shares or receive money when you sell shares. Second, a trading account is
required, from where you sell and buy stocks online. Finally, you need a demat account, which works as
repository of shares bought and sold. The shares are in digital form. Demat account is short for
‘dematerialised account’ - a paperless or digital form of buying and selling stocks and other financial
instruments. Demat accounts have been made mandatory for trading in stocks in India. Any investor who
wants to buy and sell shares has to open a demat account. A trading account is an account from which you
buy and sell shares. A demat account can be opened with any brokerage house such as ICICI Securities,
Motilal Oswal, Kotak Securities and many others.
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Below are some Leading Online Trading Platforms in India:

There are many online trading platforms in India but Best Trading Platforms in India can be defined as those
trading applications that perform well when it comes to overall user experience, speed, usability, number of
features provided, charting ability, security and other related aspects. Best trading platforms by discount as
well as the full-service brokers
• ICICI Direct Trading Platform: Trade Racer
Trade Racer is a trading platform which provides you with Live streaming quotes & Research Calls,
integrated fund transfer system along with multiple watch list facility. Power-packed with new features,
Trade Racer gives you the power to identify market opportunities while enjoying the attractive new look and
feel of the trading terminal.
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• UPSTOX Trading Platform: UPSTOX PRO
Upstox is a discount stock broker with fast, reliable & easy-to-use trading platforms. Free to try, quick to
sign up.
• SAS Online Trading Platform: Alpha Trader
Integrated Trading and Superior charting platform Alpha desktop platform deliver all the power, speed and
flexibility active traders demand: Dynamic market-scanning tools, fully customizable charting, lighting-fast
trade execution, advanced order management and facility to trade from charts.
• Kotak Securities Trading Platform:
KEAT PRO XKEAT Pro X is an online trading software that allows you to buy and sell securities in real
time. By tracking BSE, NSE and NSE currency markets, KEAT Pro X allows you to monitor your
investment portfolio at any time of the day.
• 5 Paisa Trading Platform: 5 Paisa Trade Station
At 5paisa, we consider Investor Relations to be the key to building transparent, open and long-term
relationships with our stakeholders. Our Investor Relations program is committed to maintaining effective
communication with the investing community by adopting best practices.
• Zerodha Trading Platform: Zerodha PI
Since Zerodha is a profitable entity and has been around in the industry for around 8-10 years already – the
chances of a goof-up are limited. As far as long-term investments are concerned, your shares are always
stored in a demat account that is outside the control of Zerodha or any stockbroker anyway.
• Angel Broking Trading Platform: Angel SpeedPro
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This is one of the best online share trading platforms, and you can download it on to your laptop and get
started. An integrated trading software, SpeedPro lets you stream live rates and generate instant trade
reports.
• Wisdom Capital Trading Platform: NSE NOW, NEST, Fox Trader
A highly integrated mobile app for real-time access to stock markets; Wisdom Pro has all the features of a
modern trading platform. Enabled with innovative features to manage portfolios, watchlists, research and
trade stocks, Wisdom Pro allows traders to trade with compelling comfort and absolute freedom on NSE,
BSE, MCX, NCDEX and MCX-SX.
• HDFC Securities Trading Platform: HDFC Securities Blink
HDFC BLINK allows trading in equity, derivatives and currency single sign-on. Key Feature of HDFC
securities trading platform – BLINK: Market Watch – Real Time Refresh of Scripts. Fast Buy and Fast Sell
Scripts from market watch window on single click.
• ShareKhan Trading Platform: Trade Tiger
Sharekhan web experience is smart and hassle-free for traders and investors. It is enriched with new features,
products, information and intuitive research to help users make smart investment decisions. Persona-based
navigation - Our website understands the needs of a wide range 2of personas.
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Platforms for Online Trading

There are different platforms available for carrying out trading.
 Website:
Users can access their online trading account through the service provider site. Using the log-in name
and password, traders can procure access to all the different services offered by the service provider.
Most service providers offer access to the trading accounts through smartphones and other devices,
such as tablets and iPad. Some of the service providers offer specially designed websites for account-
holders who use slow Internet connections.
 Dealer-Assisted Trading:
Experienced and qualified dealers will assist the account-holders to oversee their online share trading
and provide guidance on making the right financial decisions. Moreover, users can call the dealers
and complete trades on the phone. The dealers answer customer queries and offer the right financial
advice to help users grow their capital and meet various financial goals and objectives.
 Call and Trade:

If the users do not have access to their computers, they can call to place their trades. The account-
holders can place any number of orders and can deal in any segment, including cash, derivatives, and
initial public offerings. Contrary to belief, the call and trade platform is completely secured because
users have to pass through several levels of verifications ensuring no frauds can occur.
All the above online share trading platforms provide convenience and flexibility to the online stock
trading account-holders. Moreover, it makes the entire procedure significantly less cumbersome and
greatly reduces the need for completing the necessary paperwork related to stock market trading.
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How to start an online trading portfolio:

We’ve waxed eloquent about about how online trading works in a previous post. A prerequisite before
anyone can begin though, is a demat account, and a registration with an online brokerage firm. In this article,
you will get a clear idea about steps for selecting a stock broker, opening a trading account online and how
to start trading online.
 Steps for selecting a stock broker:
 SEBI validity: SEBI enrolled brokers are an extremely critical factor for picking your specialist.
Discount brokers with long SEBI legitimacy are consistently more ideal. It secures the well-being of
your cash for an extended time. Non-SEBI registered brokers are frauds. Stay away from them.
 Trading platform: The trading platform provided by the broker ought to be smooth and hassle free.
It must incorporate facilities like placing ‘buy’ and ‘sell’ orders, placing market limits, putting a stop-
loss, checking the status of an order, reading news about companies, viewing the list of securities
currently held through the dashboard, etc. and you also have access to all your previous trades and
investment statements.
 Customer services: Quality Customer Service is an important factor while choosing a broker. This
could incorporate the pace at which your trading requests are executed.
 Costs [AMC, commission, etc.]: The most important factor - commissions charged by discount
brokers ought to be low to justify the tag of a discount broker. High commission rates can gobble up
your profits in the long run.
 Simplicity of enrolment: Discount brokers will probably be in a state of harmony with new
innovations - for example, online opening of demat account based on Aadhaar Card verification
disposes of paperwork and further diminishes costs.
 Support and tools: Discount brokers must have all the required tools that will help you analyse your
stocks and trades. They ought to have all the expected charts to encourage the trader to perform
desirable research.
 Steps to open a trading account online:
 The Aadhaar-based eKYC method

These days it’s far simpler and faster to open your trading account - using the Aadhaar based
paperless registration. This method uses your Aadhaar card details to complete your registration
process online, as long as you have a valid mobile number linked to your Aadhaar card. Keep all of
your scanned copies of your personal documents (PAN Card, Aadhaar card, and a cancelled cheque)
on your device. You will be required to upload them during the registration process, after you’ve
progressed past the Aadhaar linking step.
 Traditional Paper Registration

Start by downloading the trading account opening forms. The documents will include both the
account opening forms and the KYC forms. Print out these forms, and fill in the required fields.
You’ll also need 2 passport-size, self-attested photographs to affix in these forms. Once you are done
completing the forms, sign in the the required places and attach your self-attested personal
documents (PAN card, ID proof and address proof). Now you have to hand it over to your brokerage
firm personally or by post.
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Types of Trading in Indian Share Markets

Intraday trading and delivery trading are the two major types in India.:
 Intraday Trading defines the buying and the selling of the stocks on the same day. Traders buy the
stocks for earning profit and not for making any investments in particular stocks. The trader needs to
square off the positions at the end of the market hours. The trader takes the advantages of the price
fluctuations and makes profits from that trading.
 Delivery trading refers to trading which extends beyond one day. It is also very secure. You can buy
stocks and retain them for more than a day. Transactions occur on next day. The brokerage in the
case of delivery trading is very high. But the main benefit is the chances of loss is very less compared
to intraday.
How to Decide Investments in Share Market

Choosing the right product and right company for investment is a tough task for any investor. Yet, it is
simple if you follow certain rules and tools.
 Investment Amount – First of all, set the amount you are able to invest. Never invest more than
your risk-taking capability.
 Financial Analysis– Use experience and market analysis of your own and other financial experts.
Don’t follow rumours while determining the investments. A greed of huge profits may end in
disaster. Use the company’s reports and other information to judge its financial strength.
 Charts and Indicators – Besides the financial analysis of the company, technical analysis is
important. Use charts and other tools to get an insight into the movement of the prices. Study the
movements of shares when the overall market was performing well. Volume charts and past
movements of the prices help you to predict the trends.
Follow your judgement as well avoid going against the market trends. Also, insist on having regular monthly
reports from your broker with documents.
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How to Start Trading Online:
The steps you should follow before you invest in the stock market are:
 Get a PAN card: A PAN card is must for you for any financial transaction in India. PAN is required
for opening a bank account, investing in the stock market and mutual funds, filing Income Tax
returns etc.
 Get a broker: You are not allowed to go directly to a stock exchange and trade in the stock market.
A facilitator or intermediary also known as a broker is required for traders and investors to
participate in the stock markets. That’s why, get yourself a stock broker.
 Open a demat and a trading account: You are allowed to trade in the stock market only through
demat and trading accounts. You must open a demat and a trading account before you can invest in
the Indian stock mar via their platforms.
Equity Trading Online

Equities are traded on the stock market. These could be in the primary or secondary market. In the primary
market, companies get listed through an Initial Public Offering. Thus, new securities are available in the
primary market. In the secondary market, investors buy or sell securities, which have already been issued.
Currently, more than 1300 securities are available for equity trading on the National Stock Exchange (NSE)
and over 6000 on Bombay Stock Exchange (BSE). Investing in equities for a long term has many
advantages. Here are why equity investments have an edge over simply saving money in your bank account:
 One of the best avenues to fight inflation
Inflation drives up the cost of living and eats away the value of your savings. Traditional investment
avenues like Fixed Deposits, Bonds, etc. have a limited upside of 8 to 10 %, whereas equities as an
asset class have given an average annual return of about 13 % in the last 10 years. Hence, when it
comes to beating inflation, equities are undoubtedly your best bet
 Source of Long-term wealth creation

Our philosophy of "Buy Right Sit Tight " has helped a lot of investors in long term wealth creation.
Investing in good businesses and growth stories at an early stage provides unlimited upside potential.
For example, your investment of Rs. 1,000 in the Infosys IPO in 1993, would have fetched you Rs.
30 Lakhs today. Not participating in growth stories would certainly be an opportunity missed
 One of the most Liquid investment options

Equities also provide you the flexibility of quickly changing your holding patterns to suit your
requirements and also convert your holdings into cash instantly. This makes it the most suitable
option compared to other asset classes for investors who are looking for liquidity

24
Benefits of Equity Trading

Equity trading helps traders to participate in the shifts in value of the stock and also in the movements of the
market. It enables you to make the best of the short-term opportunities that occur due to technical supports,
breakouts and news-based flows. You can do equity trading either offline or online and that makes it a lot
more flexible. It also helps the market because the liquidity created by the equity traders makes the market
more liquid and therefore less risky. Equity trading is the first step towards long term wealth creation.
Some key advantages of equity trading

 Equity trading is extremely flexible. You can either call up your broker and trade or you can sit in the
comfort of your home or office and trade with your computer or laptop. Nowadays, it is also possible
to trade on your mobile phones or smart phones by merely downloading the application (app) on to
your phone and executing orders.
 When you are trading, the commissions are much lower. In fact, if you trade intraday, the
commissions are much lower on both legs of the transaction. Not only the brokerage but even the
statutory charges are much lower in case of intraday trading. For example, the rate of STT is much
lower and it is only imposed on the sell side of the transaction.
 Equity trading offers much higher leverage to trade. Normally, when you buy equity for delivery,
you need to put up the full amount latest by T+1. In case of short-term trading, the broker will be
willing to give you leverage up to a multiple of 4-5 times your margin. That means you can take
larger positions with smaller capital allocation.
 Equity trading makes it possible to make money quite fast. For example, we have seen volatile stocks
moving up by 30-40% in a span of a few days. When you are trading intraday, you can take positions
on the long side and on the short side. Short term trends and announcements can be best captured in
short term equity trading.
 Unlike what a lot of traders tend to believe, short term equity trading is not very complicated. It is
more about getting your process and discipline in place. Once your risks are properly managed, the
returns will follow. In fact, you can get the satisfaction of seeing your money grow rapidly in a very
short span of time. That is quite gratifying.
25
What risks are associated with equity investments?

While there are many potential benefits to investing in equities, like all investments, there are risks as well.
Market risks impact equity investments directly. Stocks will often rise or fall in value based on market
forces. As a result, investors can lose some or all of their investment due to market risk.
Other types of risk that can affect equity investments include:
 Credit risk: a company could be unable to pay its debt.
 Foreign currency risk: a company’s value could change because of shifts in the value of different
international currencies.
 Liquidity risk: a company could be unable to meet its short-term debt obligations.
 Political risk: a company’s returns could suffer because of a country’s political changes or
instability.
 Economic concentration risk: a company’s value could drop because it’s too concentrated in a
single entity, sector or country (putting all its eggs in one basket). If the value of that factor drops, the
company will get hurt disproportionately.
 Inflation risk: a company’s value could drop because it’s hurt by rising inflation, thus diluting its
worth.
Managing risks in equity trading

More than chasing returns, it is managing risk that is of paramount importance when it comes to equity
trading. Here is how to go about it.
 When you are trading in equities for the short term, be very clear that you are a trader and not an
investor. That means you must really think from a short-term perspective only. Just because price
movements go against you, don’t try to average your positions. When you average your positions, it
is like going wrong twice over. Also, your focus should be churning your capital aggressively and for
that you need to keep booking profits.
 The second way to manage risk is through stop losses. This is your insurance against volatile
markets. The stop loss can be set based on technical or affordability. The idea is to protect your
capital by not letting losses mount beyond a point.
 The last way of managing risk is to constantly monitor positions. Set news alerts, price alerts,
corporate announcement alerts and chart alerts. These can give you clues well in advance and you
can take action accordingly.
26
Clearing and Settlement:

The exchanges clear and settle all the trades that are executed during the trading day. These exchanges
operate well-defined settlement cycles without any deviations and/or deferments from the procedures. The
trades during the trading session are aggregated and positions are netted off with the objective of
determining the liabilities of the trading members. These procedures also ensure movements of the funds and
shares are completed in the right manner. The settlement cycle adopted by the exchanges operating in the
Indian stock market is T+2. This means that all securities and funds movements are completed two days
after Day 1 (which is the day on which the trades are executed). Under the T+2 cycle, buyers receive credits
of the shares in their demat account, and sellers receive the sale proceeds in the bank accounts that are linked
to the trading account within two days.
Equity for a Shareholder

Apart from knowing the value of equities in which one has invested, it is also important to know the value of
personal share of equity, which may be calculated by subtracting total liabilities owed from total assets
owned.
 Equity = value of assets – value of liabilities
27
Review of Literature
 Barents Group LLC (1997)

studied that India’s household savings and foreign investors are key sources of this capital and can
and will be increasingly attracted to more efficient, safe and transparent market. Retail investors in
India are mostly short-term traders, and day trading is not uncommon. To the extent that buying
publicly traded equities is perceived as and speculative short-term activity, many potential investors
will simply avoid capital market instruments altogether in deciding to allocate savings.
 R. Dixon and R.K. Bhandari (1997)

said in their study that consequently derivative instruments can have a significant impact on financial
institutions, individual investors and even national economies. Using derivatives to hedge against
risk carries in itself a new risk was brought sharply into focus by the collapse of Barings Bank. There
is a clear call for international harmonization and its recognition by both traders and regulators.
There are calls also for a new international body to be set up to ensure that derivatives, while
remaining an effective tool of risk management, carry a minimum risk to investors, institutions and
national/global economies. Considers the expanding role of banks and securities houses in the light
of their sharp reactions to increases in interest rates and the effect their presence in the derivatives
market may have on market volatility.
 P. M. Deleep Kumar and G. Raju (2001)

showed that the capital market is becoming more and more risky and complex in nature so that
ordinary investors are unable to keep track of its movement and direction. The study revealed that the
Indian market is probably more volatile than developed country markets, which is probably why a
much higher proportion of savings in developed countries go into equities. More than half of
individual shareowners in India belonged to just five cities. The distribution of share ownership by
States and Union Territories show that just five States accounted for 74.7 per cent of the country’s
share ownership population and 71.7 per cent of the aggregate value of the shareholdings of
individuals in India. Among the five States Maharashtra tops the list with Gujarat as a distant second
followed by West Bengal, Delhi and Tamil Nadu. In the midpoint of the study also argued that
introduction of derivatives is the first step to hedge the risk of unfavourable movement in the market.
This will also lower transaction cost and provides depth and liquidity to the market.
28
 Peter Carr and Dilip Madan (2001)
disclosed that generally does not formally consider derivatives securities as a potential investment
vehicle. Derivatives are considered at all, they are only viewed as tactical vehicles for efficiently re-
allocating funds across broad asset classes, such as cash, fixed income, equity and alternative
investments. They studied that under reasonable market conditions, derivatives comprise an
important, interesting and separate asset class, imperfectly correlated with other broad asset classes.
If derivatives are not held in our economy then the investor confines his holdings to the bond and the
stock and the optimal derivatives position is zero.
 J. K. Nayak (2006)
interpreted the preferred mode of investment is first equity, banks, mutual fund and then any other in
a descending order. It means Investor’s faith has increased and their risk-taking ability has also
increased. One thing that could be drawn from this study is that problems are mostly broker related
and therefore that is one area where reforms are required. The investors feel that the amount of
knowledge available on
the equity market is not satisfactory. Investors, it appears, need to be educated more. Investors still
considered the capital market as highly risky. But from the investment pattern from the descriptive
statistics it seems that the number of people willing to invest in capital market has increased.
 Narender L. Ahuja (2006)

expressed Futures and options trading helps in hedging the price risk and also provides investment
opportunity to speculators who are willing to assume risk for a possible return. They can also help in
building a competitive edge and enable businesses to smoothen their earnings because non-hedging
of the risk would increase the volatility of their quarterly earnings. At the same time, it is true that too
much speculative activity in essential commodities would destabilize the markets and therefore, these
markets are normally regulated as per the laws of the country.
Prasanna P. K. (2008)
empirically fond that foreign investors invested more in companies with a higher volume of shares
owned by general public. Foreign investors choose the companies where family shareholding of
promoters is not essential. The study concluded that corporate performance is the major influencing
factor for investment decision for any investor. As far as financial performance is concerned the
share return and earnings per share are significant factors influencing investment decision. The study
29
concluded that it is required to understand when FII withdraw their funds and when they pump in
more money.
 K. Ravichandran (2007)
argued the younger generation investors are willing to invest in capital market instruments and that
too very highly in Derivatives segment. Even though the knowledge to the investors in the Derivative
segment is not adequate, they tend to take decisions with the help of the brokers or through their
friends and were trying to invest in this market. He also argued majority the investors want to invest
in short-term funds instead of long-term funds that prefer wealth maximization instruments followed
by steady growth instruments. Empirical study also shows that market risk and credit risk are the two
major risks perceived by the investors, and for minimizing that risk they take the help of newspaper
and financial experts. Derivatives acts as a major tool for reducing the risk involved in investing in
stock markets for getting the best results out of it. The investors should be aware of the various
hedging and speculation strategies, which can be used for reducing their risk. Awareness about the
various uses of derivatives can help investors to reduce risk and increase profits. Though the stock
market is subjected to high risk, by using derivatives the loss can be minimized to an extent.
 Gupta and Naveen Jain (2008)

found that majority of the investors are from younger group and as per occupation, salaried persons
are more inclined towards investment. Study also argued education qualification is the major
influenced factor in investment. Their most preferred investment is found to be shares followed by
mutual funds. Empirically they found and argued the Indian stock market is considerably dominated
by the speculating crowd, the large scale of day trading and also fact the futures trading in individual
stocks is several times the value of trading in cash segment. They also found the largest proportions
of the investors are worried about too much volatility of the market. For trader and speculators, price
volatility is an opportunity to make quick profits. In the study, high proportions of investors have a
very favourable opinion about the capital market regulation.
 Deleep Kumar P M and Deyanandan M N (2009)

analyzed the opinion of retail investorson the major market reforms as well as their investment
performance. The study revealedintroduction of derivatives trading and internet trading are found
useful by only a marginal group of investors. The empirical results of the study concluded that even
though SEBI claims itself to be the champion of investor protection, it has not been successful in
instillinga sense of confidence in the minds of majority of investors.
30
Research Methodology
OBJECTIVES: -
 Primary objectives
The primary objective of this project i.e. “ONLINE TRADING IN SHARE MARKET (EQUITY)” is
to spread General and Legal Awareness to the investors for trading online on various platforms.
There are still some investors who feels insecure for investing in share market through online
platform. With the help of this project it is just tried to study of that perception of the investors.
 Secondary objectives
 To examine the perception of investors regarding online trading.
 To know the preference of investors towards conducting their online trading transactions.
 To find out knowledge level of investors regarding online trading
 To identify the problem faced by the investors during the usage of online trading.
 To examine general awareness regarding online trading
 To know about different act related to online trading.
DATA: -
 Primary Data
On the basis of the information received through questionnaire, survey was prepared for further
analysis. The method uses for collecting this research data is mailing survey. survey is made through
forms.up
 Secondary Data
On the other hand, the data other than collected from investors through survey and questionnaire is
collected from the internet through google and internet explorer with various sites like Wikipedia, A,
etc.
31
LIMITATIONS OF THE DATA:
 To collect the data, the form was shared with large number people but the responders result was not
that much as expected.
 To research the project only 52 investors data is collected through the mailing survey and the overall
study is calculated through that data only.
 The Study of this project is related to Mumbai region, there are lot of investors are there throughout
the Mumbai. But it was not possible to reach to all of them.
SAMPLING:
The population of the study consists of all types of online trading investors in MAHARASHTRA state. It
also consists of all the online trading investors in different occupation. But the numbers of online trading
investors are quite large; it is not easy to contact all. So, the convenience sampling is selected here. In
sampling metro city like Mumbai is selected in present study. Also, in Mumbai only South-Mumbai is
assumed for the study.
32
DATA ANALYSIS
Gender
Gender Number of responses Percentage
Male 19 37%
Female 33 63%
Total 52 100 %
Number of responses
Male
37%
Female
63%
Male Female
INTERPRETATION
From the above table and pie diagram it is revealed that 37% respondents were male and 63% were female.
Hence, it is concluded that female have shown more interest in the study.
33
Age
AGE NO. OF RESPONCE PERCENTAGE

15-20 22 42%
21-25 16 31%
26-30 7 13%
31-35 3 6%
36-40 2 4%
41-45 2 4%
TOTAL 52 100%
NO. OF RESPONCE
36-40 41-45
4% 4%
31-35
6%
26-30
13% 15-20
42%
21-25
31%
15-20 21-25 26-30 31-35 36-40 41-45
INTERPRETATION
From the above table it is revealed that majority of the response is came from age group of 15-20 it means
the younger generation is showing the more interest in online trading than others. While 21-25 is the second
highest group who responded most.
34
Education
Education NO. OF RESPONCE PERCENTAGE
HSC 4 8%
UNDER GRADUATE 27 52%
GRADUATE 16 31%
POST GRDUATE 5 10%
TOTAL 52 100%
NO. OF RESPONCE
POST GRDUATE HSC

10% 8%
GRADUATE
31%
UNDER GRADUATE
52%
HSC UNDER GRADUATE GRADUATE POST GRDUATE
INTERPRETATION
From the above table it is revealed that majority of the response is came from the under-graduates. Hence,
they have the most interest in online share trading. After the under-graduate’s graduates are on second stage
in doing trading in share market.
35
Income
Income NO. OF RESPONCE PERCENTAGE

>10000 26 52%
10000-20000 12 23%
20000-30000 8 15%
30000< 6 12%
TOTAL 52 100%
NO. OF RESPONCE
30000<
12%
20000-30000
15%
>10000
50%
10000-20000
23%
>10000 10000-20000 20000-30000 30000<
INTERPRETATION
From the above table it is revealed that majority of the response is came from income group of less than
10000.
Secondly 10000-20000 are on the second stage of investing in share trading on online basis.
36
What kind of investor are you?
INVESTMENT NO. OF RESPONCE PERCENTAGE

I invest personal / family 44 85%
money
I invest professionally 3 6%
Both 5 10%
TOTAL 52 100%
NO. OF RESPONCE
Both
10%
I invest professionally
6%
I invest personal / family money

85%
I invest personal / family money I invest professionally Both
INTERPRETATION
From the above table it is revealed that majority of the response it clears that the most of the investors are
investing from their own personal money on family basis and not from professionally companies’ basis.
37
Are you aware about online share trading?
ONLINE TRADING NO. OF RESPONCE PERCENTAGE
YES 49 94%
NO 3 6%
TOTAL 52 100%
NO. OF RESPONCE
NO
6%
YES
94%
YES NO
INTERPRETATION
From the above table it is revealed that majority of the response it clears that the higher percent of investors
are aware of the online share trading in the market.it is very less who didn’t know about it.
38
Do you think that trading on online platform is safe?
SECURITY NO. OF RESPONCE PERCENTAGE
YES 44 85%
NO 8 15%
TOTAL 52 100%
NO. OF RESPONCE
NO
15%
YES
85%
YES NO
INTERPRETATION
From the above table it is revealed that majority of the response it clears that the higher percent of investors
are feeling safe for trading online in share market. Only few of them are feels unsecured trading online in
share market.
39
What different platform you choose for online trading in share market?
PLATFORM NO. OF RESPONCE PERCENTAGE
KITE ZERODHA 18 31%
SHAREKHAN 10 17%
5 PAISE 5 8%
UPSTOX 5 8%
OTHER 21 36%
TOTAL 52 100%
NO. OF RESPONCE
KITE ZERODHA
31%
OTHER
36%
UPSTOX SHAREKHAN
8% 17%
5 PAISE
8%
KITE ZERODHA SHAREKHAN 5 PAISE UPSTOX OTHER
INTERPRETATION
From the above table it is revealed that majority of the response are from kite zerodha and sharekhan. Hence
these are the most popular trading platforms for online trading in share market
40
From how many years are you trading or investing in share market?
YEARS NO. OF RESPONCE PERCENTAGE
1-3 50 96%
3-5 1 2%
5 & MORE 1 2%
TOTAL 52 100%
NO. OF RESPONCE
5 & MORE
03-May
2% 2%
01-Mar
96%
01-Mar 03-May 5 & MORE
INTERPRETATION
From the above table it is revealed that majority of the response are the investors who are trading from 1 – 3
years. Others are also there who trading for more than 3 years & more than that.
41
What sources of fund you utilize to trade in share market?
FUND NO. OF RESPONCE PERCENTAGE
SAVINGS / PERSONAL 41 79%
LOAN 2 4%
OTHER 9 17%
TOTAL 52 100%
NO. OF RESPONCE
OTHER
17%
LOAN
4%
SAVINGS / PERSONAL
79%
SAVINGS / PERSONAL LOAN OTHER
INTERPRETATION
From the above table it is revealed that majority of the response of investors who invest in share market
through their personal / savings fund. There are very few i.e. 2 who invested from loan fund and remaining
are from others.
42
What would you prefer among the following?
RISK NO. OF RESPONCE PERCENTAGE

HIGH RISK HIGH 10 19
PROFIT
LOW RISK LOW 8 15
PROFIT
MODERATE 34 65
TOTAL 52 100
NO. OF RESPONCE
HIGH RISK HIGH PROFIT

19%
LOW RISK LOW PROFIT

15%
MODERATE
65%
HIGH RISK HIGH PROFIT LOW RISK LOW PROFIT MODERATE
INTERPRETATION
From the above table it is revealed that majority of the responders are taking moderate risk in investing
money in share market through online trading platform. Few are going for taking high risk for high profit &
few for lower profit for lower risk.
43
Which method do you adopt for trading in share market?
METHOD NO. OF RESPONCE PERCENTAGE
ONLINE TRADING 37 71%
MANUAL TRADING 3 6%
BOTH 12 23%
TOTAL 52 100%
NO. OF RESPONCE
BOTH
23%
MANUAL TRADING
6%
ONLINE TRADING
71%
ONLINE TRADING MANUAL TRADING BOTH
INTERPRETATION
From the above table it is revealed that majority of the responders i.e.71% are using online trading platform
for trading in share market. Few i.e.6% are using manual trading & others i.e.23% use both as trading
platform.
44
What features do like on online share trading platforms?
FEATURES NO. OF RESPONCE PERCENTAGE
EASY HANDLING 39 30%
TIME SAVING 36 28%
QUICK ACCESS 31 24%
SETTING ORDERS IN 19 15%

ADVANCE
OTHERS 3 2%
TOTAL 52 100%
NO. OF RESPONCE
OTHERS
SETTING ORDERS IN ADVANCE 2%
15%
EASY HANDLING
30%
QUICK ACCESS
24%
TIME SAVING
28%
EASY HANDLING TIME SAVING QUICK ACCESS

SETTING ORDERS IN ADVANCE OTHERS
INTERPRETATION
From the above table it is revealed that majority of the responders like features of easy handling, time
saving, quick access, setting orders in advance & and few of them like others.
45
What is the frequency of your online trading in share market?
FREQUENCY NO. OF RESPONCE PERCENTAGE

DAILY 10 19%
WEEKLY 4 8%
MONTHLY 7 13%
ANNUALLY 3 6%
ACCORDING TO 28 54%
MARKET
TOTAL 52 100%
NO. OF RESPONCE
DAILY
19%
WEEKLY
8%
ACCORDING TO MARKET
54%
MONTHLY
13%
ANNUALLY
6%
DAILY WEEKLY MONTHLY

ANNUALLY ACCORDING TO MARKET
INTERPRETATION
From the above table it is revealed that majority of the responders i.e. 54% prefer “according to market”
condition. And remaining are others.
46
How do you receive the confirmation of trading?
CONFIRMATION NO. OF RESPONCE PERCENTAGE
BY EMAIL 37 71%
BY SMS 11 21%
OTHER 4 8%
TOTAL 52 100%
NO. OF RESPONCE
OTHER
8%
BY SMS
21%
BY EMAIL
71%
BY EMAIL BY SMS OTHER
INTERPRETATION
From the above table it is revealed that majority of the responders get the confirmation about their trade with
their email directly.
47
According to you what is the reason for adopting online system of trading?
REASON NO. OF RESPONCE PERCENTAGE
TIME SUITABILITY 5 10%
USER FRIENDLY 5 10%
PLACE CONVENIENCE 3 6%
ALL OF ABOVE 36 69%
OTHER 3 6%
TOTAL 52 100%
NO. OF RESPONCE
OTHER TIME SUITABILITY

6% 10%
USER FRIENDLY
10%
PLACE CONVENIENCE
6%
ALL OF ABOVE
69%
TIME SUITABILITY USER FRIENDLY PLACE CONVENIENCE

ALL OF ABOVE OTHER
INTERPRETATION
From the above table it is revealed that majority of the responder’s stats that all the reasons mentioned above
is important for them to adopting the online share trading system.
48
Select each investment with which you are familiar?
INVESTMENTS NO. OF RESPONCE PERCENTAGE
EQUITIES 43 59%
BONDS 12 16%
COMMODITIES 10 14%
REAL ESTATE 8 11%
TOTAL 52 100%
NO. OF RESPONCE
REAL ESTATE
11%
COMMODITIES
14%
EQUITIES
59%
BONDS
16%
EQUITIES BONDS COMMODITIES REAL ESTATE
INTERPRETATION
From the above table it is revealed that majority of the responders are familiar with investment in equity
e.g.59%.
After equity bonds, commodities & real estate are the major sources of the investment for investors.
49
What is personal experience about online trading in share market?
EXPERIENCE NO. OF RESPONCE PERCENTAGE
GOOD 42 81%
EXCELLENT 5 9%
NOT THAT GOOD 5 10%
TOTAL 52 100%
NO. OF RESPONCE
NOT THAT GOOD

10%
EXCELLENT
10%
GOOD
81%
GOOD EXCELLENT NOT THAT GOOD
INTERPRETATION
From the above table it is revealed that majority of the responders i.e. 81% have good experience in online
trading in share market. 9% Have excellent & others i.e.10% have not that good experience in online share
trading in market.
50
FINDINGS
1. Gender:
It is revealed that 37% respondents were male and 63% were female. Hence, it is concluded that
female have shown more interest in the study.
2. Age:
Majority of the response is coming from age group of 15-20 it means the younger generation is
showing the more interest in online trading than others
3. Education:
From the survey it is revealed that majority of the response is came from the under-graduates which
means they have the most interest in online share trading
4. Income:
Majority of the responders have income of less than 10000
5. What kind of investor are you?

The most of the investors are investing from their own personal money on family basis and not from
professionally companies’ basis.
6. Are you aware about online share trading?

Response it clears that the higher percent of investors are aware of the online share trading in the
market.it is very less who didn’t know about it.
7. Do you think that trading on online platform is safe?

The higher percent of investors are feeling safe for trading online in share market. Only few of them
are feels unsecured trading online in share market.
8. What different platform you choose for online trading in share market?
That majority of the response are from kite zerodha and sharekhan. Hence these are the most popular
trading platforms for online trading in share market
9. From how many years are you trading or investing in share market?
Majority of the response are the investors who are trading from 1 – 3 years. Others are also there who
trading for more than 3 years & more than that.
10.What sources of fund you utilize to trade in share market?

Table it is revealed that majority of the response of investors who invest in share market through
their personal / savings fund. There are very few i.e. 2 who invested from loan fund and remaining
are from others.
11.What would you prefer among the following?

Responders are taking moderate risk in investing money in share market through online trading
platform. Few are going for taking high risk for high profit & few for lower profit for lower risk.
51
12.Which method do you adopt for trading in share market?

Majority of the responders are using online trading platform for trading in share market. Few are
using manual as trading platform.
13.What features do like on online share trading platforms?

That majority of the responders like features of easy handling, time saving, quick access, setting
orders in advance & and few of them like others.
14.What is the frequency of your online trading in share market?

It is revealed that majority of the responders prefer “according to market” condition. And remaining
are others.
15.How do you receive the confirmation of trading?

Responders get the confirmation about their trade with their email directly.
16. According to you what is the reason for adopting online system of trading?
Majority of the responder’s stats that all the reasons like Time suitability, User friendly, Place
convenience are important for them to adopting the online share trading system.
17.Select each investment with which you are familiar?

Majority of the responders are familiar with investment in equity e.g.59%. After equity bonds,
commodities & real estate are the major sources of the investment for investors.
18.What is personal experience about online trading in share market?

Majority of the responders have good experience in online trading in share market.
19.
52
SUGGESTION & RECCOMENDATION
 I would suggest that people or investor in India should invest their money in equity
shares for long term financing and long-term growth.
 The people who are ready to take risk must invest their money or savings into equity
shares which earn them more returns. The basic rule i.e. higher risk is equal to higher
returns.
 Banks should charge less for the demat account, so that more and more customer will
get inspired to open the account.
 Just like mutual fund investment companies, Stock broking companies also have to
advertise more on television and social networking sites so that they will to more
public.
53
Conclusion
 It was concluded from this study that more than half of the respondents prefer to invest
in equity shares.
 It is also concluding that nowadays online platform for trading in share market is
popular as it becomes easier way for trading.
 It was also found that most of the respondents agree to invest their money for a short-
term period
 In India most of the people still feel like investment in online equity shares market is
very risky.
 Most of the investor considers market research before investment in equity shares due
to various factors which affects the minds of the investor.
54
BIBLIOGRAPHY & REFERENCES
www.slideshare.net
https://www.angelbroking.com/knowledge-center/online-share-trading
https://www.kotaksecurities.com/ksweb/
https://www.5paisa.com/
https://www.iforex.in/online-share-trading
https://www.thebalance.com/stock-trading-101-358115
https://www.tradebulls.in/online-trading/how-to-start-trading-online-in-share-market
https://www.karvyonline.com/knowledge-center/beginner/what-is-online-trading
https://indianmoney.com/articles/an-introduction-to-online-trading-part-1-
https://academy.investopedia.com/collections/online-trading
55
ANEXTURE
1. Gender
o Male
o Female
2. Age:
o 15-20
o 21-25
o 26-30
o 31-35
o 36-40
o 41-45
o 46-50
3. Education:
o SSC
o HSC
o Under Graduation
o Graduate
o Post-Graduation
4. Income:
o >10000
o 10000-20000
o 20000-30000
o 30000<
5. What kind of investor are you?
o I invest personal / family money
o I invest professionally
o Both
6. Are you aware about online share trading?
o Yes
o No
7. Do you think that trading on online platform is safe?
o Yes
o No
8. What different platform you choose for online trading in share market?
o Kite Zerodha
o Sharekhan
o Upstox
o 5 paise
o Other
56
9. From how many years are you trading or investing in share market?
o 1-3 year
o 3-5 year
o 5 and more
10. What sources of fund you utilize to trade in share market?
o Saving / Personal
o Loan
o Other
11. What would you prefer among the following?
o High risk high profit
o Moderate
o Low risk low profit
12. Which method do you adopt for trading in share market?
o Online trading
o Manual trading
o Both
13. What features do like on online share trading platforms?
o Easy handling
o Quick access
o Time saving
o Setting orders in advance
14. What is the frequency of your online trading in share market?
o Daily
o Weekly
o Monthly
o Annually
o According to market
15. How do you receive the confirmation of trading?
o By email directly
o By SMS
o Other
16. According to you what is the reason for adopting online system of trading?
o Time suitability
o Place convenience
o User friendly
o Other
17. Select each investment with which you are familiar?
57
o Bonds
o Equities
o Real Estate
o Commodities
18. What is personal experience about online trading in share market?

o Good
o Excellent
o Not that Good

58

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ONLINE TRADING IN SHARE MARKET

DEGREE OF BACHELOR IN COMMERCE

UNDER THE GUIDENCE OF

Sr. No. Topic Page No.

Date:

Project Guide External Examiner

Vice Principal Principal

TYPES OF SHARE MARKET

 National Stock Exchange (NSE)

 National Stock Exchange (NSE)

 Bombay Stock Exchange (BSE)

List of 50 companies that form part of NIFTY 50 Index as on 17 November 2019:

SR. NO. COMPANY

1. Adani Ports ADANIPORTS.NS Infrastructure

2. Asian Paints Ltd ASIANPAINT.NS Consumer Goods

3. Axis Bank AXISBANK.NS Banking

4. Bajaj Auto BAJAJ-AUTO.NS Automobile

5. Bajaj Finance BAJFINANCE.NS Financial Services

SR. NO. COMPANY

6. Bajaj Finserv BAJAJFINSV.NS Financial Services

7. Bharti Airtel BHARTIARTL.NS Telecommunication

8. Bharti Infracted Ltd. INFRATEL.NS Telecommunication

9. BPCL BPCL.NS Energy - Oil & Gas

10. Cipla CIPLA.NS Pharmaceuticals

11. Coal India COALINDIA.NS Energy & Mining

12. Dr Reddy Lab DRREDDY.NS Pharmaceuticals

13. Eicher Motors EICHERMOT.NS Automobile

14. GAIL GAIL.NS Energy - Oil & Gas

15. Grasim Industries GRASIM.NS Cement

16. HCL Technologies HCLTECH.NS Information Technology

17. HDFC HDFC.NS Financial Services

18. HDFC Bank HDFCBANK.NS Banking

19. Hero MotoCorp HEROMOTOCO.NS Automobile

20. Hindalco Industries HINDALCO.NS Metals

SR. NO. COMPANY

21. Hindustan Unilever HINDUNILVR.NS Consumer Goods

22. Britannia Industries BRITANNIA.NS Consumer Goods

23. ICICI Bank ICICIBANK.NS Banking

24. IndusInd Bank INDUSINDBK.NS Banking

25. Infosys INFY.NS Information Technology

26. IOC IOC.NS Energy - Oil & Gas

27. ITC Limited ITC.NS Consumer Goods

28. JSW Steel JSWSTEEL.NS Metals

29. Kotak Mahindra Bank KOTAKBANK.NS Banking

30. Larsen & Toubro LT.NS Construction

31. Mahindra & Mahindra M&M.NS Automobile

32. Maruti Suzuki MARUTI.NS Automobile

33. Nestle India Ltd NESTLEIND.NS Food Processing

34. NTPC Limited NTPC.NS Energy - Power

35. ONGC ONGC.NS Energy - Oil & Gas

SR. NO. COMPANY

36. PowerGrid Corporation

37. Reliance Industries RELIANCE.NS Energy - Oil & Gas

38. State Bank of India SBIN.NS Banking

39. Sun Pharmaceutical SUNPHARMA.NS Pharmaceuticals

40. Tata Consultancy

41. Tata Motors TATAMOTORS.NS Automobile

42. Tata Steel TATASTEEL.NS Metals