Chapter-1: Submitted By: Bipin Sahoo

CHAPTER-1
INTRODUCTION
The commencement of E-Trading and Demat has
transformed the capital market in India. With the help of Demat
and Trading account, buying and selling of shares has become a
much faster and even process than trading with the assistance of
a physical broker. It provides for the assimilation of bank,
broker, stock exchange and depository participants. This helps to
get rid of the painstaking procedure of investing in stock
exchange. Today, if one wants to invest in stock market, he has
to contact a broker on phone or meet him personally to place
order. A broker generally gives such importance and additional
service only to high net worth customers. But the introduction of
Internet trading, even a common or a small investor gets an
opportunity to avail the service at an affordable price which is
much lesser than what is charged by a physical broker over the
phone.
Online trading has given customer a real time access to
account information, stock quotes elaborated market research
and interactive trading. The prerequisites of Internet trading are
a computer, a modem and a telephone connection, registration
with broker, a bank a/c and depository account. The
introduction of depository service is considered as the beginning
of the trading of Stocks @ click. This means that you can arrange
delivery of scrips sold anytime, anywhere to anyone by click of a
mouse. Dematerialization facilitates to keep the securities in
electronic form instead of paper form. It offers more
advantageous than the physical certificate form. Despite the
Submitted By: Bipin Sahoo Page 1
advantages of Dematerialization, the awareness levels among the
investors relating to Demat account is not adequate because of
numerous reasons. The investors are not sufficiently responsive
of the concept of Demat account and the various financial
institutions providing such services. This study involves
understanding the various concepts of Demat and analyzing the
investment pattern of individuals in India and a study on
Analysis of awareness among investors regarding On Line
Trading and Dematerialization has been submitted to Pune
Institute of Business management, Pune in partial fulfillment of
post graduate programme (PGPBM+MBA).
OBJECTIVES OF THE STUDY

An objective is the brainchild behind any project report. A
project report will always have a certain objective which needs to
be accomplished. Following are the objectives behind the
preparation of my project at Indiabulls securities Ltd.
 To Compare Indiabulls Online share trading account with
the big players in the Market i.e. ICICI, KARVY, HDFC,
RELIENCE MONEY as well as with INDIA INFOLINE
 Identify the areas where INDIABULLS Scores above its
competitors and what are its weak links.
 Know the market potential of INDIABULLS considering
the fact that there are many competitors in this field with
some more firms expected to join the fray in the near
future. This will be done with the help of a questionnaire.
Provide suggestions to the company regarding what else

it can do to stand apart in this ever competitive field and
thereby emerge as a market leader.
 To understand the company, its achievements and tasks,
products and services and also to collect information
about its competitors, its products and services offered.
 After understanding and collecting information about the
organization and its competitors, a trainee will be able to
work well for the organization.
 To Study present online share trading
METHODOLOGY
Secondary Data: It refers to a market where securities are
traded after being Initially offered to the public in the primary
market and/or listed on the Stock Exchange. Majority of the
trading is done in the secondary market. To explain further, it is
trading in previously issued financial instruments. An organized
market for used securities. Bombay Stock Exchange (BSE),
National Stock Exchange NSE, bond markets, over-the-counter
markets, residential Mortgage loans, governmental guaranteed
loans etc. Secondary market comprises of equity markets and the
debt markets. For the general Investor, the secondary market
provides an efficient platform for trading of his Securities.
SCOPE OF STUDY
 It provides a complete knowledge of various fundamental
concepts of share market and online trading.
 It will help in analyzing the behavior of consumers and help
in Knowing the parameters of investment on which they
would like to invest..
 Through this project I am not only bringing long term
clients for my organization but also creating a word of
mouth publicity of my organization by offering the best

services to the clients so that more and more potential
customer will come and stick to my organization.
 Also through this project I suggest the organization the
behavioral pattern of investor towards different
instruments.
 From the study I have learned very much, about the
company as well as the strategy of the customers, which
helps me a lot at my working days.
LIMITATIONS OF STUDY:
 The respondents who have not given any information are
not included in the sample but do come under the
population.
 It was not possible to cover each and every client of each
and every broking house and hence a sample of 100
people was taken.
 The market share of all the online share trading products
is only for the city of Varanasi. The market share of all the
companies may differ in different cities. It may also differ
nationally.
 Due to the tough competition each & every broking firm is
offering different schemes like, free opening A/c or
different advance brokerage schemes where Indiabulls is
lacking in this area..

CHAPTER-2
HISTORY
Indiabulls Financial Services Limited was incorporated on
January 10, 2000 as M/s Orbis InfoTech Private Limited at New
Delhi under the Companies Act, 1956 with Registration No. 55 -
103183. The name of Company was changed to. Indiabulls
Financial Services Private Limited on March 16, 2001 due to
change in the main objects of the Company from InfoTech
business to Investment & Financial Services business. It became
a Public Limited Company on February 27, 2004 and the name
of Company was changed to M/s. Indiabulls Financial Services
Limited. And now this company has achieved milestone by voted
as The Youngest Company of the year in ET500.
The group started its business as a stock-brokerage firm
and pioneered online brokerage business in India before
diversifying into other financial services areas such as consumer
credit (2004) and mortgages (2005). The group partnered with
Farallon Capital to purchase landmark Mumbai land assets and
is currently building one of the largest integrated commercial real
estate projects in India (valued at more than $2 billion). The
group recently entered the power generation business and aims
to have more than 5000 MW of power generation under
construction before the end of 2008.
Indiabulls Financial Services Ltd is a public company and
listed on the National Stock Exchange, Bombay Stock Exchange,
Luxembourg Stock Exchange and London Stock Exchange. The
market capitalization of Indiabulls is approx US $ 800 million,
and the consolidated net worth of the company is approx US $

400 million. Indiabulls and its group companies have attracted
US $ 300 million of equity capital in Foreign Direct Investment
(FDI) since March 2000.
Indiabulls ranks at 82nd position in the list of most
valuable companies in India. Indiabulls is promoted by three
engineers from the Indian Institute of Technology (IIT) Delhi.
Foreign Institutional Investors (FIIs) and foreign funds hold over
60 percent shareholding of Indiabulls. Some of the large
shareholders of Indiabulls are the largest financial institutions of
the world such as Fidelity Funds, Capital International, Goldman
Sachs, Merrill Lynch, Lloyd George and Farallon Capital. There
are approximately over 40,000 shareholders.
PROFILE
Indiabulls is India’s leading Financial Services and Real
Estate Company having over 640 branches across India.
Indiabulls serves the financial needs of more than 4,50,000
customers with its wide range of financial services and products
from securities, derivatives trading, depositary services, research
and advisory services, consumer secured and unsecured credit,
loan against shares and mortgage & housing finance. Having
around 4000 Relationship Managers, Indiabulls helps its clients
to satisfy their customized financial goals. An India bull through
its group of companies has entered into the Indian Real Estate
business in 2005. It is currently evaluating several large-scale
projects worth several hundred million dollars.
Indiabulls Financial Services Ltd is a public company and
listed on the National Stock Exchange, Bombay Stock Exchange,

Luxembourg Stock Exchange and London Stock Exchange. The
market capitalization of Indiabulls is approx US $ 800 million,
and the consolidated net worth of the company is approx US $
400 million. Indiabulls and its group companies have attracted
US $ 300 million of equity capital in Foreign Direct Investment
(FDI) since March 2000.
Indiabulls ranks at 82nd position in the list of most
valuable companies in India. Indiabulls is promoted by three
engineers from the Indian Institute of Technology (IIT) Delhi.
Foreign Institutional Investors (FIIs) and foreign funds hold over
60 percent shareholding of Indiabulls. Some of the large
shareholders of Indiabulls are the largest financial institutions of
the world such as Fidelity Funds, Capital International, Goldman
Sachs, Merrill Lynch, Lloyd George and Farallon Capital. There
are approximately over 40,000 shareholders of the company.
Indiabulls Financial Services is a retail financial services
company providing a diverse array of financial products and
services, through its nationwide network of over 300 Indiabulls
offices, and services over 2,50,000 clients spread across 110
cities in India. Indiabulls, along with its subsidiary companies,
offer consumer loans, brokerage and depository services,
personal loans, home loans and other financial products and
services to the retail markets.
Indiabulls, which has a workforce of over 10,000 full time
employees, reported US $ 60 million in Profit before Tax and US
$ 45 million in Net Profit for the first nine months of the current
financial year.

Business of the company has grown in leaps and bounds
since its inception. Indiabulls became the first company to bring
FDI in Indian Real Estate through a JV with Farallon Capital
Management LLC, a respected US based investment firm,
Indiabulls has demonstrated deep understanding and
commitment to Indian Real Estate market by winning competitive
bids for landmark properties in Mumbai and Delhi.
Indiabulls Group is one of the top business houses in the
country with business interests in Real Estate, Infrastructure,
Financial Services, Retail, Multiplex and Power sectors. India
bulls Group companies are listed in Indian and overseas
financial markets. The Net worth of the Group exceeds USD 2
billion. India bulls has been conferred the status of a “Business
Super brand” by The Brand Council, Super brands India.
India bulls Financial Services is an integrated financial services
powerhouse providing Consumer Finance, Housing Finance,
Commercial Loans, Life Insurance, Asset Management and
Advisory services. India bulls Financial Services Ltd is amongst
68 companies constituting MSCI - Morgan Stanley India Index.
India bulls Financial is also part of CLSA’s model portfolio of 30
Best Companies in Asia. India bulls Financial Services signed a
joint venture agreement with Sogecap, the insurance arm of
Societé Generale (SocGen) for its upcoming life insurance
venture. India bulls Financial Services in partnership with MMTC
Limited, the largest commodity trading company in India, is
setting up India’s 4th Multi-Commodities Exchange.
India bulls Real Estate Limited is India’s third largest
property company with development projects spread across

residential projects, commercial offices, hotels, malls, and
Special Economic Zones (SEZs) infrastructure development. India
bulls Real Estate partnered with Farallon Capital Management
LLC of USA to bring the first FDI into real estate. India bulls Real
Estate is transforming 14 million sqft in 16 cities into premium
quality, high-end commercial, residential and retail spaces. India
bulls Real Estate has diversified significantly in the following
business verticals within the real estate space: Real Estate
Development, Project Advisory & Facilities Management:
Residential, Commercial (Office and Malls) and SEZ
Development. Power: Thermal and Hydro Power Generation.
ABOUT FOUNDERS:
The fast paced growth, diversification and consolidation of
the Group has been possible due to the vision and leadership of
the co-founders of Indiabulls.
Sameer Gehlaut is the Chairman, CEO and Whole Time Director
of Indiabulls. Sameer is an engineer from IIT, Delhi (1995) and
has worked internationally with Halliburton in its international
services business in 1995. He has utilized his experience with
the international best practices and professional work culture at
Halliburton to lead Indiabulls successfully.
Rajiv Rattan is the President, CFO and Whole Time Director of
Indiabulls. Rajiv is an engineer from IIT, Delhi (1994) and has
rich experience in the oil industry, having worked extensively
across the globe in highly responsible assignments with
Schlumberger. Rajiv has managed remote exploration projects

providing evaluation services for different clients in India as well
as abroad.
Saurabh Mittal is a Director at Indiabulls. Declared the best
graduating student in IIT, Delhi in (1995), Saurabh was also
one of the engineers selected by Schlumberger to work for its
international services business in 1995 and gained experience of
working in various global locations. He graduated as a Baker
Scholar with an MBA from the Harvard Business School. He has
also developed in-depth understanding of international financial
markets.
INDIABULLS SECURTIES LTD.

Indiabulls Securities Limited is India’s leading capital
markets company with All-India Presence and an extensive client
base. Indiabulls Securities is the first and only brokerage house
in India to be assigned the highest rating BQ – 1 by
CRISIL. Indiabulls Securities Ltd is listed on NSE, BSE &
Luxembourg stock exchange.
The company through various types of brokerage accounts
provides product and services related to purchase and sale of
securities listed in NSE and BSE. It also provides depository
services, equity research services, mutual fund, IPO distribution
to its clients. The company provides these services through on-
line and off-line distribution channel.

Power Indiabulls Indiabulls Signature Account

Depository Services
NRI Trading

.

IPO Online Indiabulls Equity Analysis

Power Indiabulls (PIB)

Power Indiabulls (PIB) is the advanced online trading
platform from Indiabulls Securities Limited, the leading stock
broker in India with a branch network spread across the country.
PIB provides the best in the class internet trading features and
delivers a seamless and rich online trading experience for its
users. Whether we are a Day-Trader who buy/sell stocks during
the day or a Stock Research Analyst who believes in taking a
stock trading call after doing extensive fundamental research &
technical analysis, PIB fulfills our every stock trading need from
the comfort of our desktop.

PIB comes with a whole host of online features for the
internet trading users ranging from real-time stock prices, to live
trading reports, charting, News Room. For Market Experts &
Stock Research Analysts, PIB provides features like Technical
Analysis to help them analyze the behavior of a particular stock
using popular technical analysis indicators like Simple Moving
Average, Stochastic, Relative Strength Index, etc. Besides, one
can also view Market Statistics section to view the day’s Top
Gainers / Losers, Most Active, Most Volatile, etc.
For day traders, PIB offers trading features like Intraday
Charting, Hourly Tick List and Alerts to help them track the
movement of underlying scrip / index during the day. Besides,
one can also create multiple Market Watch windows to view the
latest market price of the stocks they want to track.
PIB provides an integrated online trading platform for the
internet trading community to invest in equity, F&O, Online IPOs
and base their decision on sound fundamental research and
technical analysis. It also provides various kinds of trading
reports, each developed to cater to internet trading users’ distinct
needs. For ex., we can access Net Portfolio Report to view a list of
stocks that are available in our portfolio. To view our
open positions in F&O segment, we can access F&O Complete
Position Report. PIB also provides details about our current day's
obligations in Current Obligations Report.
With whole host of advanced online trading features, PIB
aims to fulfill the needs of every genre of investors & help them
gain profits in every possible way.

Features of PIB:
 Live Streaming Quotes
 Fast Order Entry
 Tic by Tic Live Charts
 Technical Analysis
 Live News and Alerts
Signature Account
With Indiabulls Signature account you will always remain
on top of your investments. It provides you the platform to trade
in Equity and Derivatives. With an unmatched service and
nationwide presence, the Indiabulls Signature account comes
bundled with a variety of exclusive features.
 Ease of trading – With Indiabulls Signature account we
have the flexibility to place your orders either by logging on
the website, calling at the branch or walking in the branch.
 Dedicated Service Branch and Relationship Manager: we
can get in touch with our Relationship Manager and Service
Branch for all our trading related requirements.
 Power Indiabulls (PIB): We can trade smarter and faster
using the Power Indiabulls application. Access the broad
spectrum of sophisticated trading tools and get an edge in
the stock markets.
 Online Payment Gateways: Use Indiabulls online payment
gateways facility and get instant credit in our Trading
Account. Indiabulls currently provide online gateway
payment facility with four major banks – HDFC, ICICI, AXIS
and IDBI.

 IPOs – Indiabulls provides flexibility to apply in ongoing
IPOs through either online or offline channels. For applying
online, we do not need to fill tedious forms and write
cheques. We can apply conveniently in IPOs from the
comfort of our home / office through our Website/PIB. For
applying offline, we can contact our Relationship Manager/
Service Branch.
 Portfolio Tracker: We can track our investments online
through Indiabulls portfolio tracker functionality. We can
conveniently track the daily movement, notional / booked
profits and losses in your portfolio.
 Equity Analysis Report – A qualified and dedicated team of
equity analysts at Indiabulls publishes various research
reports. We can view these reports to gain insight into the
companies of your interest.
 News Room: The News Room provides real-time news from
stock-markets, corporate sector, economy and other
segments that have a bearing on the market sentiment.
 Market Statistics: This functionality facilitates tracking the
market trend by providing us real time data on top gainers,
top losers, volume toppers and most volatile stocks.
 Mobile Power Indiabulls (MPIB): MPIB is a mobile-phone
based application, developed exclusively for Indiabulls
customers. Using MPIB, we can view the live market rates of
your favorite stocks and futures contracts on your mobile
device. Thus with MPIB, we can always remain connected
with the market, even on the move.

 Electronic Contract Notes on Email: This facility enables
us to get digitally signed Electronic Contract Notes on email
within 24 hours of executing trades in our Trading Account.
Depository Services
Indiabulls is a depository participant with the National
Securities Depository Limited and Central Depository Services
(India) Limited for trading and settlement of dematerialised
shares. Indiabulls performs clearing services for all securities
transactions through its accounts. We offer depository services to
create a seamless transaction platform – execute trades through
Indiabulls Securities and settle these transactions through the
Indiabulls Depository Services. Indiabulls Depository Services is
part of our value added services for our clients that create
multiple interfaces with the client and provide for a solution that
takes care of all your needs.
Indiabulls Equity Analysis
Indiabulls Equity Analysis complements its equity broking
and advisory services with high quality comprehensive report
which can be accessed online. Research report assess the
potential strength and investment risk by doing in-depth and
exhaustive analysis of operational and financial performance of
company, Peer group analysis, present Industry scenario using
advanced and sophisticated forecasting tools and models. These
research reports identify, examine and distill attractive
investment opportunities to help you in building and maintaining
your ideal portfolio.
Salient features of Indiabulls Equity Analysis:
 Covers report of more than 540 company

 Updated on a daily basis
 Scorecard on Fundamentals, Valuations and risk
 Peer Analysis
 Valuation of potential growth
 Industry Scenario
NRI Trading
Non-Resident Indians (NRIs) can also enjoy the state of the
art Online trading Platforms of Indiabulls to trade
in Indian Capital Markets. We, at Indiabulls, provide NRI
clients a fast and secure trading platform which would perfectly
cater to NRI's Trading requirements. To start trading through
Indiabulls , the following simple steps need to be followed:
Opening of Online NRI Trading and NRI Demat account with
Indiabulls: Get in touch with your nearest Indiabulls service
branch (Branch Locator) to complete all the Trading and Demat
account opening formalities.
Opening of a NRI PIS account with Axis bank: A NRI is
required to open a PIS account (Portfolio Investment Scheme)
with a designated bank in India. Indiabulls Securities Limited
has tied up Axis bank to offer this facility to NRIs to enable them
to trade in the Indian Capital markets.
GROWTH STORY
India bulls Financial Services Ltd. established one of
2000-01 India’s first trading platforms with the development of
an in house team.
2001-03 Indiabulls expands its service offerings to include
Equity, F&O, Wholesale Debt, Mutual fund, IPO

distribution and Equity Research.
India bulls ventured into Insurance distribution and
commodities trading.
2003-04
Company focused on brand building and franchise
model.
India bulls came out with its initial public offer (IPO)
in September 2004.
India bulls started its consumer finance business.
India bulls entered the Indian Real Estate market and
2004-05
became the first company to bring FDI in Indian Real
Estate.
India bulls won bids for landmark properties in
Mumbai.
India bulls has acquired over 115 acres (0.47 km2) of
land in Sonepat for residential home site
development.
Merrill Lynch and Goldman sac, one of the renowned
investment banks in the world have increased their
shareholding in India bulls.
India bulls is a market leader in securities brokerage
2005-06 industry, With around 31% share in online trading,
Farallon Capital and its affiliates, the world’s largest
hedge fund committed Rs. 2000 million for India
bulls subsidiaries Viz. India bulls Credit Services Ltd.
and India bulls Housing Finance Ltd.
Steel Tycoon Mr. LN Mittal promoted LNM India
Internet venture Ltd. acquired 8.2% stake in India
bulls Credit Services Ltd.

DEPOSITORY SYSTEM IN INDIA:
The Indian capital market witnessed an explosive growth
between mid Eighties and mid Nineties. The total number of
companies listed in the stock exchanges had grown by 72.3%
from 2729 in 4702 in 1995. The market capitalization of the
companies listed with stock exchanges had gone up from Rs.21,
000 crores in 1985 to more than Rs.4, 50,000 crores in 1995.The
secondary market trading activity also gathered momentum.
There has been tremendous growth in secondary market trading
at BSE and NSE. Other regional exchanges like Calcutta, New
Delhi have also become active players in the market. This sudden
growth had exposed the limitations of the system. The system
used was not able to withstand the strain caused by the
tremendous growth in the securities market.
The entire securities market started experiencing a gridlock,
posing obstacles in its growth. Moreover, this sudden growth has
also magnified the risks that have always been plaguing the
Indian system, viz., credit risk and systematic risk. International
institutional investors wanting to invest in India had become
apprehensive about the reliability of the trade settlement
mechanisms used in the country, which did not match
international standards.
Besides affecting the inflow of foreign capital, the lack of

efficient settlement systems had affected all those operating in
the stock market, be it institutional investors, individual
investors or brokers. They suffered due to lost trading days
(liquidity), lost scrips improperly paid dividends, mistaken

registration, unnecessary financing cost, inappropriate risk like
failure of counter party and fraud.
Era of Scripless and Paperless trading:
To sort out the above mentioned problems and to restore
the investors confidence in the stock market the depository
system was set up. It was against this background that the
Government of India enacted the Depositories Act in 1996, which
an era of scrip less trading and settlement, efficient market
infrastructure, investor protection, reduced risks and
transparency of transaction in the securities market.
Depository Act, 1996:
The concept of Depository is known to the world since 1949
when the first depository was set up in Germany. There were 112
depositories in operation by the year 2001. Every depository
operates under a country‘s specific law and regulation in order to
ensure safety, liquidity, rights and liabilities to the security
holders.
Depository:
A depository is an organization where the securities of an
investor are held in electronic form. A depository can be
compared to a bank. To avail of the services of a depository, an
investor has to open an account with the depository through a
depository participant, just as he opens an account with the
bank. Holding shares in the account is a kin to holding money in
the bank
However, most of the services offered by both these
depositories are similar. Today almost all the companies listed in
dematerialized from with NSDL are available with CDSL.

BANK DEPOSITORY
Holds funds in accounts Holds securities in accounts
Transfers funds between Transfers without handling
accounts securities
Safekeeping of Money Safekeeping of securities
Depository participant:
A depository participant is an agent appointed by the
depository and is authorized to offer depository services to all
investors. An investor cannot directly open a Demat account with
the depository. An investor has to open his account through a DP
only. The DP in turn opens the account with the depository. The
DP in turn takes up the responsibility of maintaining the account
and updating them as per the instructions given by the investor
from time to time. The DP generates and provides the holdings
statement from time to time as required by the investor. Thus,
the DP is basically the interface between the investor and the
depository.
The person who holds a Demat account is a beneficiary
owner. In case of a joint account, the account holders will be
beneficiary holders of that joint account. The Demat account
number of the beneficiary holder(s) is known as the BO Id. A DP
id is the number of the depository participant allotted by the
depository.
Functions of Depository:
In the depository system, securities are held in depository
accounts, which is more or less similar to holding funds in bank
account.

Transfer of ownership of securities is done through simple
account transfers. This method does away with all the risks and
hassles normally associated with paperwork. Consequently, the
cost of transacting in a depository environment is considerably
lower as compared to transacting in certificates. The depository
system also allows distribution of dividends through the RBI‘s
ECS system, whenever the participating company has agreed to
such services. Other entitlements such as bonuses, split-ups are
also directly effected by the depository into the investor‘s
account. The following can be held in the depository (electronic)
form:
OPENING A DEMATERIALIZATION ACCOUNT (DEMAT A/C)

Demat refers to a dematerialized account. Just as we have
to open an account with a bank if we want to save your money,
make cheque payments etc, we need to open a demat account if
we want to buy or sell stocks. So it is just like a bank account
where actual money is replaced by shares. We have to approach
the DPs (remember, they are like bank branches), to open our
demat account.
Demat account allows you to buy, sell and transact shares
without the endless paperwork and delays. It is also safe, secure
and convenient.
Let’s say our portfolio has 100 of Satyam, 50of Suzlon, 20 of
ICICI BANK, 50 of Tech Mahindra and 100 of TCS shares. All
these will show in our demat account. So we don’t have to
possess any physical certificates showing that us own these
shares. They are all held electronically in our account. As we buy

and sell the shares, they are adjusted in our account. Just like a
bank passbook or statement, the DP will provide you with
periodic statements of holdings and transactions.
Individuals, companies, Trusts, Partnership firms, NRIs,
HUF, Banks and Institutions are allowed to open a depository
account with any depository through a depository participant.
The investor would need to execute a standard form giving all his
details, bank details, instruction details, nomination details and
off-course photograph and signature. Along with this form, the
investor would also have sign an agreement with the depository
participant which usually forms a standard part of the account
opening process. The details on the form have to be matched
with a photocopy of the investor‘s passport, driving license etc. to
certify the mentioned details. If the investor is an NRI, then the
client will have to provide overseas address, provide copy of RBI
Approval, if any. The RBI Approval is not mandatory for opening
of a DP. Account but is required to receive shares into the
account when purchased through the secondary market.
A: Procedure for purchasing dematerialized securities
The procedure for purchasing dematerialized securities is also
similar to the procedure for buying physical securities.
 Investor instructs DP to receive credits into his
account in the Prescribed form. There may be one
time standing instruction or Separate instruction each
time to receive credits.
 Investor purchases securities in any of the stock exchanges
linked to Depository through a broker.
 Broker receives payment from investor and arranges

payment to Clearing corporations.
 Broker gives instructions to DP to debit clearing account
and credit Client’s account. Investor receives shares into his
account by way of book entry.
B: Procedure of selling dematerialized securities

The procedure for selling dematerialized securities
in stock exchanges is similar as selling physical securities.
The only major difference is that instead of delivering physical
securities to the broker, the investor instructs his DP to debit his
demat account with the number of securities sold by him and
credit the brokers clearing account. The procedure for
selling dematerialized securities is given below:
 Investor sells securities in any of the stock exchange linked
to depository through a broker.
 Investor instructs his DP to debit his demat
account with the number of securities sold and
credit the broker’s clearing account.
 Before the pay-in-day, broker of the investor
transfers the securities to clearing corporation.
 The broker receives payment from the stock exchange.
 The investor receives payment from the broker for
sale of securities in the same manner as received
in case of sale of physical securities.
BENEFITS OF DEMATERIALIZATION ACCOUNT

Primary benefits:

1- Safety: If we are holding our shares, bonds etc in physical
(paper) form, there are chances of its theft, mutilation, and
loss. Moreover, we are also exposed to the risks of fake
papers, bad-delivery or delays at the time of transfer of
physical securities. However, in DEMAT accounts; we can
preserve our long-term investments safely and securely.
2- Convenience: When we want to sell our dematerialized
shares or redeem our debentures in DEMAT account; there
are no hassles of filling up transfer forms, sending
redemption requests or any other messy, costly and time-
consuming paper work. We can conveniently transfer our
securities through electronic transfers or just by signing
one ‘Delivery Instruction Slip’, which is nothing but our
chequebook for DEMAT Accounts.
Other Benefits:
Apart from the safety and convenience, there are lot more
advantages of opening DEMAT accounts. Here are few of the
most necessary reasons for having a DEMAT account.
 We can park most of our investments including shares,
bonds, debentures, Gold Units, NSC and bonds in our
DEMAT account. We might not immediately realize the
benefits of having all the investments in DEMAT form. For
instance, if we change our residence, we just have to write
to the DP (Depository Participant), which automatically gets
our new address registered with all the companies where we
have invested our money.
 We do not have to remember the due dates of maturity of
bonds, NSC and debentures, as the redemption proceeds

are automatically credited to our bank account, which is
linked with our DEMAT account.
 We receive all the dividends and interests directly in our
linked bank account.
 In case of bonus, rights, split, merger or any other corporate
actions, everything takes place automatically. We do not
have to do anything except to file the physical intimation
letters sent by the Registrar and Transfer Agents.
 Nowadays with the advent of online trading, we can perform
online all the activities associated with buy, sell and
transfer of shares.
 With a single nomination in your DEMAT account, we are
nominating our legal heirs to all the investments held by us.
 For many public issues of bonds and debentures of reputed
and trustworthy companies, it is necessary to have a
DEMAT Account, as the companies do not allot securities in
paper form.
 Since most of the process of buying and selling

dematerialized securities is electronic, there are no chances
of signature mismatch.
 Elimination of problems related to selling securities on
behalf of a minor.
 Elimination of problems related to change of address of
investor, transmission etc.
 Reduction in handling of huge volumes of paper periodic
status reports.

So with Dematerialized Securities, the entire process of
transferring shares, bonds and other financial assets has become
smooth and swift. DEMAT Accounts offer numerous advantages
and hence it makes sense for the retail investors to open DEMAT
Accounts as early as possible.
ONLINE TRADING:
Change is the law of nature”. There were times
when man was a Wanderer or a normal. He himself had to go
place to place in search of food, water and now everything is
available at your doorstep just at the click of the mouse. The
growth of information technology has affected almost all sectors
of life. Internet has enabled us to get every
information at our doorstep.
When Internet has affected all sectors he could “stock
markets” the most important player of the economy, has
remained far behind? Like all other sectors Internet has set its
feet in the stock markets also.
The Stock Market system provides single, nation wide
securities. It enables LAN investors in one part of the country to
trade at the best quotes with an investor located in any other
part of the country through the members of the stock exchange
and subsequently clears and settle the trade in an efficient and
cost effective manner. The primary objective of the Stock Market
is to provide clear opportunity to the investors throughout the
country to trade any security irrespective of the size of the order
or the broker through whom the order is routed. This provides
the facility to execute the buy order at the lowest price in the

stock market located anywhere in the country without any extra
cost to the investors.
There will be no trading floor in the exchange. Instead, each

trading member will have a computer at his own office anywhere
in India which will be connected to the central computer system
at the NSE through leased line or VSATs (very small aperture
terminals), for an interim transition period of 6 months &
subsequently by satellite link. VSATs are relatively smaller dishes
similar to dish antenna for cable TV & have the benefit of not
being very expensive. A satellite network makes it possible to
connect almost all the parts of the nation quickly as it is easy to
install, as against the ground lines such as dial up modems
leased lines, which are prone to disruptions, satellite links, on
the other hands ensure high speed, availability and quality of the
connection. This mode of trading is known as "Online Trading"
Introduction of online trading in India
Online trading started in India in February 2000 when a
couple of brokers started offering an online trading platform for
their customers.
Online trading by NSE & BSE:

The central computer located at the Exchange is connected
to the workstations of the
Brokers through satellite using Very Small Aperture
Terminals (VSATs). Orders placed at based on price and time
priority. Both the exchanges have switched over from the open

outcry trading system to a fully automated computerized mode of
trading known as BOLT (BSE On Line Trading) and NEAT
(National Exchange Automated Trading) System. It
facilitates more efficient processing, automatic order matching,
faster execution of trades and transparency. The scrips traded on
the BSE have been classified into 'A', 'B1', 'B2', 'C', 'F' and 'Z'
groups.
The 'A' group shares represent those, which are in the carry
forward system (Badla). The
'F' group represents the debt market (fixed income
securities) segment. The 'Z' group scrips are the blacklisted
companies. The 'C' group covers the odd lot securities in 'A', 'B1'
& 'B2' groups and Rights renunciations. key regulator governing
Stock Exchanges,
Brokers, Depositories, Depository participants, Mutual Funds,
FIIs and other participants in Indian secondary and primary
market is the Securities and Exchange Board of India (SEBI) Ltd.
Objectives of Present Trading System:
 Reduce and eliminate operational inefficiencies inherent in
manual system
 Increased trading capacity in Stock Market Improve market
transparency
 Eliminate unmatched trades and delayed reporting Provide
for on-line and off-line monitoring control and surveillance
of the market.
 Promote fairness and speedy matching Smooth market
operations using technology while retaining the flexibility of
conventional treading practices

 Set up various limits, rules and controls centrally.
 Consolidate the trades data on electronic media to interface
will the broker‘s back office system
 Provide public information on scrip prices, indices for all
users of the system
 Provide analytical data for use of Stock Market.
Features Of Online Trading
The Online Trading is having many features which make it
most suitable for the investors to go for. Some of these features
are as follows:
Freedom of Information:
The Internet can provide a new sense of control over your
financial future. The amount of investment information available
online is truly astounding. It's one of the best aspects of being a
wired investor. For the first time in history, any individual with
an Internet connection can:
 Know the price of any stock at any time
 Review the price history of any stock in chart format
 Follow market events in-depth
 Receive a wealth of free commentary and analysis about
stock
 markets and the global economy
 Conduct extensive financial research on any company
Control our money:
One of the great appeals of using an online trading account
is the fact that the account belongs to you, and is under your
direct control. When you want to buy or sell stock, you no longer
need to call your broker on the phone; hope that he is in the

office to place your order; possibly argue with the broker about
the order; and hope that the transaction is executed instantly.
Access to the market:
At the most basic level, an online trading account gives you
more agility in buying and selling stocks. This is through
sophisticated information streams, dedicated trading platforms
and sophisticated tools for accessing the markets.
Offers greater transparency:
Online trading offers you greater transparency by providing you
with an audit trail. This involves a complete integrated electronic
chain starting from order placement, to clearing and settlement
and finally ending with a credit into your depository account. All
these stages are subject to inspection, thus bringing in
transparency into the system.
Reduces the settlement risk:

This method of trading reduces the settlement risk for the
investor, as in this case all short sell orders are squared off at the
specified cut-off time and not allowed to be carried forward.
Instant trade order confirmations:
Every trade is confirmed immediately and you will
receive an on-screen confirmation following every trade
with full details for your records. This avoids costly
errors that would have been discovered when it is too late.
Integrated Accounts:
Our Bank, Depository and Trading account are
integrated for our convenience. Various broking houses
provide access to many of the popular banks.

BENEFITS OF ONLINE TRADING:
1) Less Costly:
The most significant advantage of the Online broking is the
cost reduction in the brokerage. Due to the power of the Internet
one has the privilege of becoming the clients of really large
brokerages with the benefits of enjoying the low
charges before enjoyed only by the big players. As the DP
account has got linked to the trading account most players do
not charge a minimum transaction cost thus truly allowing
one to buy a single share and achieve meaningful
rupee price averaging whatever be your buying power.
2) Peace of Mind:
One can never have complete peace of mind but online
investing does away with the hassles of filling up instruction
slips, visits to the broker for handing over these slips and
consequent costs.
3) Keeping Records:
The site one trades on keeps a record of all transactions
down to unexecuted orders
and cancelled orders thus keeping one abreast of all your
transactions 24 hours a
day. No paperwork means more time at one’s disposal for
research and analysis.
4.) Ease of trade:

It is the ease of doing the trade through net, with a click of
mouse; one can buy or sell any share that is dematerialized.

Other than the above-mentioned advantages, Internet
trading provides someadditional advantages to the
investors, brokers and also helps the nation to
Channelize the resources. Net trading would increase
competition in the market hence increase in the bargaining
power of the investors. The entire communication between the
investor, broker and exchange would take place within
milliseconds.
PROBLEMS OF ONLINE TRADING

.1) Server not found:
This may appear on one’s screens when he is desperately
trying to get out of an unprofitable position. Some of the online
sites are providing a telephone number for use in case their sites
are overloaded or their server down.
2.) Connectivity of the Broker with NSE:
Recently ICICI Direct had a connectivity problem with the
NSE for two and halfhours during trading hours. This problem is
rare but be alive to its possibility.
3.) Cyber attack:
In the event of a malicious attack on the systems of one’s
broker he is protected only if the company is taking proper
precautions against such attacks and if proper backup is
regularly been taken. He may like to choose a brokerage that has
a stated security policy and contingency plan in place.
4) Non-availability of a seamless interface:
As a client one will access the NSE through a server of the
online brokerage and this may involve queuing delays. If a

number of client access the server the server takes its own
time sending the orders to the NSE server. He must
check out the seamlessness of this interface before selecting an
online brokerage. The faster the orders are processed the more
seamless is the interface.
5.) Non- availability of personalized advice:
If one like to ask his broker "Aaj kya achcha lag raha hai"
he may not be able to do so. If he wants advice on a particular
stock in his portfolio he may not even be able to get that.
6.) Margin:
If Internet trading alone is not fast and furious enough;
many people are trading on margin. That is where the
brokerage firm lends you money by leveraging his
account, allowing him to buy a large amount of securities by
putting up only a small amount of money. He may have forgotten
what he read in the small print of his agreement, but the
brokerage firm has the right to change the maintenance margin
requirements without any warning or notice to him. In fact, the
firm has the right to liquidate his securities holdings (and it can
pick and choose which ones) without any notice to one if he fail
to meet the margin call. And there he was leveraged to the hilt,
hoping to hit a home run when he discovered that he is required
to make a large deposit that he cannot make. The next thing one
know, the firm is selling off his securities at a point in time that
is not the best for him. These are the perils of trading on margin.

CHAPTER-3
SWOC ANALYSIS
Strengths
 Very Strong Brand Image.
 Low Charges with respect of its Services.

 Free annual maintenance of Demat account.
 Facility to trade in office.
 Very Good Customer Care Unit.
Weaknesses
 Only One branch in Varanasi City.
 Weak Advertisement Policies.
 Trading on BSE stocks is not available
 Commodity trading is not available in Branch
Opportunities
 Large Untapped Market.
 Opportunity to educate investors about their products &

inspire them to invest more & encourage others.
 Good Opportunity to Cash its Brand Image and People

Trust.
Challenges
 Presence of very strong competitors Like, Karvy, Angel

Broking, Share khan, Religare etc.
 Aggressive marketing by competitors.
 Low brokerage offerings by competitors.

COMPARATIVE ANALYSIS OF VARIOUS STOCK BROKING
COMPANIES IN VARANASI ON THE BASIS OF ACTIVATION
CHARGES, BROKERAGE, SERVICES
Angel Broking
Criteria Angel stock broking
Demat a/c opening charges 750
Brokerage intra day, delivery 5 paise,50 paise
AMC(Annual Maintenance Rs.300

Charges)
Trading funding intra day, 6times,4 times(minimum
delivery stock Rs 50000)
Debit period T+2 Days
Mode of trading Both online and offline
Margin money 5000
Software installation charges No extra charges
IndiaInfoline
Criteria India infoline

AMC(Annual maintaince NIL
charges)
Trading 10 times, 4times
funding,intraday,Delivery
Debit period T+2
Margin Money 2000
Software Installation charges No extra charges
Religare Securities
Criteria Religare Securities

AMC(Annual maintaince 250
charges)
Trading 6times,4 times(minimum
funding,intraday,Delivery stock Rs 50,000)
Debit period T+2
Margin Money No limit
Software Installation charges No Extra charges
ICICI Direct
Criteria ICICI Direct
Demat a/c opening charges Rs.975
Brokerage intra day, delivery 50Paise,75Paise
AMC(Annual maintaince Rs.500
charges)
Trading 6times,4 times(minimum

funding,intraday,Delivery stock Rs 50,000)
Debit period T+2
Margin Money No limit
Software Installation charges No Extra charges
DATA INTRPRETATION AND ANALYSIS

Questions regarding problems in trading:-
Q.1) Do you invest in share market?
a) Yes
b) No

70
60
50
40
30
20
10
0
Yes NO
No. of respondents % of respondents
Interpretation: -35% people invest in share market in Varanasi

city
Q.2) Please tick the following:-

a.) Type of trading you generally do intraday /
delivery /both

50
40
30
20
10
0
intraday delivery both
No. of respondents percentage of respondent
Interpretation: - 26% people prefer intraday trading, 42. % prefer

delivery and 32% do both type of trading.

b.)Time period of investment less 1 month/ 1-6 month /more
than 6 month.
50
40
30
20
10
0
Less than 1 1 to 6 More than 6
month month months
No. of respondents % of respondents
Interpretation: - Maximum people prefer to invest for 1 to 6

months and amount of investment for majority of people was
found to be between Rs. 20,000 to Rs. 1 lac.
Q.3) In your opinion what is biggest problem in trading:-

a.) Lack of knowledge or experience
b.) Unsatisfactory services of broking firms
c.) Market uncertainty
d.) Charges by broking firm

50
40
30
20
10
0 a.) Lack of b.) Unsatisfactory c.)Market d.)Charges by

knowledge or services of uncertainty broking firm
experience broking firms
No. of respondents %of respondents
Interpretation: - Most of the people facing biggest problem in

trading, Lack of knowledge and believe that unsatisfactory
services by their broking firms create problem in trading while 25
% people consider charges of broking firm as a problem in
trading.

Q.4) What is your opinion about the problem of market
uncertainty in trading?
a.) It's a big challenge
b.) It's manageable
c.) It's an opportunity
60
50
40
30
20
10
0
a.)It's a big b.)It's c.)It's an
challenge manageable opportunity
Interpretation: - majority of people consider market uncertainty

as a big problem, around 19% people consider it as an
opportunity and rest says it is manageable.

Q.5) Does unsatisfactory services provided by the broking firm
create problem in trading?
a.) Yes
b.) A little
c.) No
60
50
40
30
20
10
0
Yes a little No
Interpretation :- 54.5% consider the Unsatisfactory services

provided by the broking firm create problem in trading, 20.5%
people consider it a little and 25% were not agree to that.

Q.6) Which charge do you consider charged by the broking firms
is a problem in trading?
a.) Broking charge
b.) Undisclosed hidden charge
c.) Annual maintenance charge
40
35
30
25
20
15
10
5
0
a.)Broking charge b.)Undisclosed c.)Annual
hidden charge maintenance charge
Interpretation: - Most people considered undisclosed hidden

charges and annual maintenance charge as their problem in
trading.

CHAPTER-4
FINDINGS
 Preference of Investment: Consumers want to invest 75% in
Mutual funds, 16% in Bonds, 7% inonline trading and 2%
in Derivatives.
 Awareness on Online Share Trading: 72% consumers are
aware of online share trading and 28% consumersarenot
aware of online share trading.
 Awareness of Sharekhan ltd.: 70% consumers are know
about Sharekhan ltd. and 30% consumers arenot know
about Sharekhan ltd.
 Awareness about facilities provided by Sharekhan ltd.: 36%
consumers are aware about the facilities provided by
Sharekhan ltd.and 64% consumers are not know about the
facilities provided bySharekhan ltd.
 Provide a less BROKARAGE rate:
CONCLUSION
Most of the traders consider unsatisfactory services of
broking firm as biggest problem in trading. Most of traders
perceive Indiabulls as a good broking firm. In case of
transparency and services Indiabulls is considered good and
average in case, of brokerage and relationship manager's
support. People aware about India bulls are satisfied regarding
product and services by India bulls. Market share of India bulls
in Varanasi is about 35%.

SUGGESTIONS
 Broking charges should revised to make them more
competitive.
 More relationship managers should be appointed to
increase market share.
 Relationship manager's support to the clients should be
improved.
 Facility to trade on commodity and BSE should be added.
 India bulls should conduct some kind of mock Classes for
new Investors who even don’t know about share market.
 There should be employee ID-Card for them so that When
they go on it shows good impression and Identity of
employee.
 India Bulls Organize training Program for their existing
clients once or twice in a year.
BIBLIOGRAPHY
BOOKS:

 Marketing research bydavid j. luck ,Ronald s. rubin: 7
edition
 Market research by gcbery: 4 edition
 Marketing research by harper w. boyd, jr, ralph westfall,
Stanley f. stasch: 7 edition
WEBSITES
 www.Indiabulls.com
 www.Investopedia.com
 www.powerindiabulls.com
 www.bseindia.com
 www.nseindia.com
 www.moneycontrol.com
 www.equitymarket.com
 www.demat.com

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CHAPTER-1

OBJECTIVES OF THE STUDY

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INDIABULLS SECURTIES LTD.

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Power Indiabulls (PIB)

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Besides affecting the inflow of foreign capital, the lack of

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OPENING A DEMATERIALIZATION ACCOUNT (DEMAT A/C)

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B: Procedure of selling dematerialized securities

BENEFITS OF DEMATERIALIZATION ACCOUNT

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 Since most of the process of buying and selling

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There will be no trading floor in the exchange. Instead, each

Online trading by NSE & BSE:

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Reduces the settlement risk:

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4.) Ease of trade:

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PROBLEMS OF ONLINE TRADING

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 Very Strong Brand Image.

 Low Charges with respect of its Services.

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 Facility to trade in office.

 Very Good Customer Care Unit.

 Only One branch in Varanasi City.

 Weak Advertisement Policies.

 Trading on BSE stocks is not available

 Commodity trading is not available in Branch

 Large Untapped Market.

 Opportunity to educate investors about their products &

 Good Opportunity to Cash its Brand Image and People