PROJECT REPORT 

“ANALYSIS OF INDIAN STOCK MARKET 

AND COMPARISON OF CORPORATE STOCK BROKERS” 
 
EXECUTIVE  SUMMARY 

This report is about the analysis of Indian stock market, the online trading and comparative
analysis of various major corporate stock brokers. The report starts with the overview of
Indian Stock Market, followed by the company profile of Pee Aar Securities Ltd., its history,
evolution and achievements. The project report also details the basic comparison of the
company is with the most reputed brokerage players in the market. The comparison is done
through different parameters.  
The project also fulfills the requirement in giving full knowledge to the customers about the
trading procedure of securities and various products of Pee Aar Securities Ltd. It shows the
factors which influence the customer to buy the shares online or buy offline. 
The analysis is done by the purpose of questionnaire which is filled by 30 clients of Pee Aar
Securities Ltd. and 50 clients of other corporate brokers. On the basis of answer given by the
respondents, the analysis is done and graphs are made. The questionnaire is also enclosed
in the project. 
The report generates awareness about online trading of securities and gives detailed
working and information about Pee Aar Securities Ltd. and compares it with the major
corporate stock brokers in the market and provides the suggestions for improvement. 
 
 
1.1 Overview of Indian Financial Market 

Origin of Indian Stock Market 

The origin of the stock market in India goes back to the end of the eighteenth century when
longterm negotiable securities were first issued. However, for all practical purposes, the real
beginning occurred in the middle of the nineteenth century after the enactment of the
companies Act in 1850, which introduced the features of limited liability and generated
investor interest in corporate securities. An important early event in the development of the
stock market in India was the formation of the native share and stock brokers 'Association at
Bombay in 1875, the precursor of the present day Bombay Stock Exchange. This was
followed by the formation of associations/exchanges in Ahmedabad (1894), Calcutta (1908),
and Madras (1937). In addition, a large number of ephemeral exchanges emerged mainly in
buoyant periods to recede into oblivion during depressing times subsequently. 
Stock exchanges are intricacy inter-woven in the fabric of a nation's economic life. Without a
stock exchange, the saving of the community- the sinews of economic progress and
productive efficiency-would remain underutilized. The task of mobilization and allocation of
savings could be attempted in the old days by a much less specialized institution than the
stock exchanges. But as business and industry expanded and the economy assumed more
complex nature, the need for 'permanent finance' arose. Entrepreneurs needed money for
long term whereas investors demanded liquidity – the facility to convert their investment into
cash at any given time. The answer was a ready market for investments and this was how
the stock exchange came into being. 
Stock exchange means anybody of individuals, whether incorporated or not, constituted for
the purpose of regulating or controlling the business of buying, selling or dealing in
securities. These securities include: 

(i) Shares, scrip, stocks, bonds, debentures stock or other marketable securities of a
like nature inor of any incorporated company or other body corporate; 
(ii) Government securities; and

(iii) Rights or interest in securities.

The Bombay Stock Exchange (BSE) and the National Stock Exchange of India Ltd (NSE)
are the two primary exchanges in India. In addition, there are 22 Regional Stock Exchanges.
However, the BSE and NSE have established themselves as the two leading exchanges and
account for about 80 per cent of the equity volume traded in India. The NSE and BSE are
equal in size in terms of daily traded volume. The BSE has over 6000 stocks listed. Most key
stocks are traded on both the exchanges and hence the investor could buy them on either
exchange. Both exchanges have a different settlement cycle, which allows investors to shift
their positions on the bourses. The primary index of BSE is BSE Sensex comprising 30
stocks. NSE has the S&P NSE 50 Index (Nifty) which consists of fifty stocks. The BSE
Sensex is the older and more widely followed index. 

Both these indices are calculated on the basis of market capitalization and contain the
heavily traded shares from key sectors. The markets are closed on Saturdays and Sundays.
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 scrip's 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 scrip's are the blacklisted companies. The 'C' group covers the odd lot
securities in 'A', 'B1' & 'B2' groups and Rights renunciations. The 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.
  
Structure of Indian Financial Market 

Following diagram gives the structure of Indian Financial System: 

 
In general, the financial market divided into two parts, Money market and capital market.
Securities market is an important, organized capital market where transaction of capital is
facilitated by means of direct financing using securities as a commodity. Securities market
can be divided into a primary market and secondary market. 

PRIMARY MARKET 

The primary market is an intermittent and discrete market where the initially listed shares are
traded first time, changing hands from the listed company to the investors. It refers to the
process through which the companies, the issuers of stocks, acquire capital by offering their
stocks to investors who supply the capital. In other words primary market is that part of the
capital markets that deals with the issuance of new securities. Companies, governments or
public sector institutions can obtain funding through the sale of a new stock or bond issue.
This is typically done through a syndicate of securities dealers. The process of selling new
issues to investors is called underwriting. In the case of a new stock issue, this sale is called
an initial public offering (IPO). Dealers earn a commission that is built into the price of the
security offering, though it can be found in the prospectus. 

SECONDARY MARKET 

The secondary market is an on-going market, which is equipped and organized with a place,
facilities and other resources required for trading securities after their initial offering. It refers
to a specific place where securities transaction among many and unspecified persons is
carried out through intermediation of the securities firms, i.e., a licensed broker, and the
exchanges, a specialized trading organization, in accordance with the rules and regulations
established by the exchanges. 

A bit about history of stock exchange they say it was under a tree that it all started in 1875.
Bombay Stock Exchange (BSE) was the major exchange in India till 1994. National Stock
Exchange (NSE) started operations in 1994. 

NSE was floated by major banks and financial institutions. It came as a result of Harshad
Mehta scam of 1992. Contrary to popular belief the scam was more of a banking scam than
a stock market scam. The old methods of trading in BSE were people assembling on what is
called a ring in the BSE building. They had a unique sign language to communicate apart
from all the shouting. Investors weren't allowed access and the system was opaque and
misused by brokers. 

The shares were in physical form and prone to duplication and fraud. 
NSE was the first to introduce electronic screen based trading. BSE was forced to follow
suit. The present day trading platform is transparent and gives investors prices on a real time
basis. With the introduction of depository and mandatory dematerialization of shares
chances of fraud reduced further. The trading screen gives you top 5 buy and sell quotes on
every scrip. 

A typical trading day starts at 9.00 am ending at 3.30 pm. Monday to Friday. BSE has 30
stocks which make up the Sensex .NSE has 50 stocks in its index called Nifty. FII s Banks,
financial institutions mutual funds are biggest players in the market. Then there are the retail
investors and speculators. The last ones are the ones who follow the market morning to
evening; Market can be very addictive like blogging though stakes are higher in the former. 

MARKET BASICS 

• Electronic Trading:
Electronic trading eliminates the need for physical trading floors. Brokers can trade from their
offices, using fully automated screen-based processes. Their workstations are connected to
a Stock Exchange's central computer via satellite using Very Small Aperture Terminus
(VSATs). The orders placed by brokers reach the Exchange's central computer and are
matched electronically. 

• Exchanges in India:

 The Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) are the
country's two leading Exchanges. There are 20 other regional Exchanges, connected via the
InterConnected Stock Exchange (ICSE). The BSE and NSE allow nationwide trading via
their VSAT systems. 
 

Index:
An Index is a comprehensive measure of market trends, intended for investors who are
concerned with general stock market price movements. An Index comprises stocks that have
large liquidity and market capitalization. Each stock is given a weight age in the Index
equivalent to its market capitalization. At the NSE, the capitalization of NIFTY (fifty selected
stocks) is taken as a base capitalization, with the value set at 1000. Similarly, BSE Sensitive
Index or Sensex comprises 30selected stocks. The Index value compares the day's market
capitalization vis-à-vis base capitalization and indicates how prices in general have moved
over a period of time. 
• Execute an Order:
Select a broker of your choice and enter into a broker-client agreement and fill in the client
registration form. Place your order with your broker preferably in writing. Get a trade
confirmation slip on the day the trade is executed and ask for the contract note at the end of
the trade date. 

• Need a Broker:
As per SEBI (Securities and Exchange Board of India.) regulations, only registered members
can operate in the stock market. One can trade by executing a deal only through a
registered broker of a recognized Stock Exchange or through a SEBI-registered sub-broker. 

• Contract Note:
A contract note describes the rate, date, time at which the trade was transacted and the
brokerage rate. A contract note issued in the prescribed format establishes a legally
enforceable relationship between the client and the member in respect of trades stated in the
contract note. These are made in duplicate and the member and the client both keep a copy
each. A client should receive the contract note within 24 hours of the executed trade. 
                                           
 
 Split: 
A Split is book entry wherein the face value of the share is altered to create a greater
number of shares outstanding without calling for fresh capital or altering the share capital
account. For example, if a company announces a two-way split, it means that a share of the
face value of Rs 10 is split into two shares of face value of Rs 5 each and a person holding
one share now holds two shares. 
 
• Buy Back: 
As the name suggests, it is a process by which a company can buy back its shares from
shareholders. A company may buy back its shares in various ways: from existing
shareholders on a proportionate basis; through a tender offer from open market; through a
book-building process; from the Stock Exchange; or from odd lot holders. A company cannot
buy back through negotiated deals on or off the Stock Exchange, through spot transactions
or through any private arrangement. 
 
• Settlement Cycle: 
The accounting period for the securities traded on the Exchange. On the NSE, the cycle
begins on Wednesday and ends on the following Tuesday, and on the BSE the cycle
commences on Monday and ends on Friday. At the end of this period, the obligations of
each broker are calculated and the brokers settle their respective obligations as per the
rules, bye- laws and regulations of the Clearing Corporation. If a transaction is entered on
the first day of the settlement, the same will be settled on the eighth working day excluding
the day of transaction. However, if the same is done on the last day of the settlement, it will
be settled on the fourth working day excluding the day of transaction. 
 
• Auction: 
An auction is conducted for those securities that members fail to deliver/short deliver during
payin. Three factors primarily give rise to an auction: short deliveries, un-rectified bad
deliveries, and un-rectified company objections. 
Rolling Settlement:
The rolling settlement ensures that each day's trade is settled by keeping a fixed gap of a
specified number of working days between a trade and its settlement. At present, this gap is
five working days after the trading day. The waiting period is uniform for all trades. In a
Rolling Settlement, all trades outstanding at end of the day have to be settled, which means
that the buyer has to make payments for securities purchased and seller has to deliver the
securities sold. In India, we have adopted the T+5 settlements cycle, which means that a
transaction entered into on Day 1 has to be settled on the Day 1 + 5 working days, when
funds pay in or securities pay out takes place.
 
Advantages of Rolling Settlements 

As mentioned earlier, this is the system practiced in developed countries. Pay outs are
quicker than in weekly settlements, and investors will benefit from increased liquidity. The
other benefit of the modified system is that it keeps cash and forward markets separate. In
the current system, the trader has five days to square off his transaction which leads to a
high level of speculation as people even without funds tend to "play" the market. During
volatile markets, especially in a bearish market, this often leads to a payment problem which
has dogged the Indian stock exchanges for a long time. It provides for a higher degree of
safety, and once mechanisms such as futures and stock-lending become popular, it would
result in quality speculation and genuine investor interest. 

• Short Selling:
Short selling is a legitimate trading strategy. It is a sale of a security that the seller does not
own, or any sale that is completed by the delivery of a security borrowed by the seller. Short
sellers take the risk that they will be able to buy the stock at a more favorable price than the
price at which they "sold short."The selling of a security that the seller does not own, or any
sale that is completed by the delivery of a security borrowed by the seller, Short sellers
assume that they will be able to buy the stock at a lower amount than the price at which they
sold short. 

 Separate Market for Auctions:

 The buy/sell auction for a capital market security is managed through the auction market. As
opposed to the normal market where trade matching is an on-going process, the trade
matching process for auction starts after the auction period is over. If the shares are not
bought at the auction, i.e., if the shares are not offered for sale, the Exchange squares up
the transaction as per SEBI guidelines. The transaction is squared up at the highest price
from the relevant trading period till the auction day or at 20 per cent above the last available
Closing price whichever is higher. The pay-in and pay-out of funds for auction square up is
held along with the pay-out for the relevant auction. 

• Bad Delivery:
SEBI has formulated uniform guidelines for good and bad delivery of documents. Bad
delivery may pertain to a transfer deed being torn, mutilated, overwritten, defaced, or if there
are spelling mistakes in the name of the company or the transfer. Bad delivery exists only
when shares are transferred physically. In "Demat" bad delivery does not exist. 

• Dematerialization:
Dematerialization in short called as 'demat' is the process by which an investor can get
physical certificates converted into electronic form maintained in an account with the
Depository Participant. The investors can dematerialize only those share certificates that are
already registered in their name and belong to the list of securities admitted for
dematerialization at the depositories. 

• Depository:
The organization responsible to maintain investor's securities in the electronic form is called
the depository. In other words, a depository can therefore be conceived of as a "Bank" for
securities. In India there are two such organizations viz. NSDL and CDSL. The depository
concept is similar to the Banking system with the exception that banks handle funds whereas
a depository handles securities of the investors. An investor wishing to utilize the services
offered by a depository has to open an account with the depository through Depository
Participant. 
 
 Depository Participant:  
 The market intermediary through whom the depository services can be availed by the
investors is called a Depository Participant (DP). As per SEBI regulations, DP could be
organizations involved in the business of providing financial services like banks, brokers,
custodians and financial institutions. This system of using the existing distribution channel
(mainly constituting DPs) helps the depository to reach a wide cross section of investors
spread across a large geographical area at a minimum cost. The admission of the DPs
involves a detailed evaluation by the depository of their capability to meet with the strict
service standards and a further evaluation and approval from SEBI. Realizing the potential,
all the custodians in India and a number of banks, financial institutions and major brokers
have already joined as DPs to provide services in a number of cities. 
   
 
 
OFFLINE TRADING 

Offline trading got on the track in India in 1875 after the establishment of Bombay Stock
Exchange. Traditionally stock trading is done through stock brokers, personally or through
telephones.  

As number of people trading in stock market increase enormously in last few years, some
issues– 
• location constrains 
• busy phone lines 
• miscommunication etc started growing in stock broker offices. Information technology
(Stock Market Software) helped stock brokers in solving these problems with Online Stock
Trading. 

 
 
 
Online trading

It arrived in India around Year 2000. Somewhere in the nineties there was a whole move to
make shares electronic and fungible (like currency notes, a share are a share) and move
them to the dematerialized (demat) form. Slowly, from the physical world, shares moved into
the digital world at the NSDL. Then, trading became electronic. 
First it was a few of the blue chips, then it was most of the blue chips and slowly it has taken
over most of the market. New issues are today, exclusively electronic. If digitization took
care of the back end, it has also made life easy at the front end. The act of placing buy/sell
orders for financial securities and/or currencies with the use of a brokerage's internet-based
proprietary trading platforms. The use of online trading increased dramatically in the mid to
late-'90s with the introduction of affordable high-speed computers and internet connections. 

RAPID GROWTH 

With introduction of online trading, the growth has been exceptionally good for the stock
markets in India. 
• In the back of wide ranging reforms in regulation and market practice as also the
growing participation of foreign institutional investment, stock markets in India have showed
phenomenal growth since the early 1990s. 

• Investor base continued to grow from domestic and international markets. The value
of share trading witnessed a sharp jump too. 

• Stock markets became intensely technology and process driven, giving little scope
for manual intervention that has been the source of market abuse in the past. 

• Electronic trading, digital certification, straight through processing, electronic contract

notes, online broking have emerged as major trends in technology. 

• Risk management became robust reducing the recurrence of payment defaults. 

• Product expansion took place in a speedy manner. Indian equity markets now offer,
in addition to trading in equities, opportunities in trading of derivatives in futures and options
in index and stocks. 

• Stock exchange reforms brought in professional management separating conflicts of

interest between brokers as owners of the exchanges. 
 
Essential component - The essential component of Internet-based trading is the    
interface between broker, bank and depository participant, and as Net-based trading
becomes a reality this interface will develop. 
 

Process of Online Trading 

 
Why trade online? 

Access to Information , Research & statistics on the website

Transparency
Hassle Free
Less Time consuming
Control in the hands of Investor
After Market Orders
Trade any time anywhere
Completely Safe & Secured  Transactions

Advantages of online trading 

Internet trading facilitates clients to trade as and when they want, provided they have
a Net connection.

Clients who trade through the Net will be able to do it with a lower transaction cost
compared to traditional brokers.

This trading system helps the broker to expand his business.

Without much capital investment, the broker will be able to enlarge his client base

With just one office in the metro, the broker will be able to do business with many
times the number of existing clients.
Major issues 

Internet-based trading, to become really popular, should have both seamless trading
and seamless settlement; whereas now only the former is possible this prevents the Internet
broking community from announcing large-scale reductions in brokerage.

Ease of trading and settlement along with reduction in transaction costs is what
investors look for in the new system. Hence, bankers and DPs will have to change their
systems to enable seamless settlements.

At present, when the client pays an advance deposit, the broker fixes the exposure
limit, and if there is a sudden fluctuation in the share price, the client is not able to trade
unless funds move to the broker physically. This process takes a minimum of two days, by
which time the price would have changed. The ideal situation is where the client is able to
trade on the basis of his deposit in the bank, which will be accessible to the broker through
networking.

Another serious issue is the efficiency of the Internet infrastructure in the country,
which affects the speed of execution. During the day, traffic is so great that either the line is
not available or it is frustratingly slow, defeating the very purpose of Net-based trading.

In short, seamless settlement of Net transactions and improvement of the Internet

infrastructure are of vital importance for exponential growth of Internet-based trading.
1.2  About Pee Aar Securities Ltd.(PASL) 
 
Pee Aar Securities Ltd. is a Delhi based full-fledged services broking firm incorporated in the
year 1995. Its clientele comprise high net worth individuals, corporate, NRI, mutual funds, as
well as other financial institutions. The company is one of the leading brokerage firms in the
country serving investors both in India and overseas. With an impressive track record in
terms of services to its broad clientele, the key ingredient for the company's success has
been its customer-centric-approach and capital growth through structured counseling and
focus. 
Its corporate philosophy has focus on their quality service with a `feel`, thus, justifying fully
the very motto of their establishment, i.e. 
P – Promptness, R – Reliability,  S - Satisfaction 
All this is achieved by a highly dedicated team of professionals supported by a high tech
infrastructure. Its customized approach respects the individuality of their client, who has
uniqueness in his own sense, and upholds his comfort & satisfaction level. Its key objective
is to identify emerging growth opportunities for wealth creations without exposing to undue
risk.
 
Its strength lies in their prominence as a 
Member of National Stock Exchange. 

Clearing & Trading member of F&O segment of NSE. 

A registered depository participant of NSDL & hence offers full-fledged depository

services. 

Trading terminals of two Commodity Exchanges MCX/NCDEX. 

Comprehensive approach towards investments advice for MFs.

 
A separate section for IPO segment of the financial sector. 

Intensive equity research (technical as well as fundamental) by investment analysts. 

Besides, our other activities include Trading in BSE as well as arbitration etc. 
It is, therefore, no surprise that they have achieved consistent & exceptional growth so far &
are confident to achieve newer heights. 

1.3  Profile of the Organisation  

Looking into the day-by-day increasing demand for Online Trading, PASL has successfully
launched its state-of-the-art web based trading platform, through its websites www.peeaar.in
and www.nowonline.in. 
PRS Online is the techno savvy alternate of our broking services. Online service is for a
segment of investors who have different expectations from an equity wealth manager
restricting their willingness and ability to sort to premium advisory services. PRS has been
serving its clients for over two decades in a variety of disciplines. 
PRS Online comes in really handy when an Investor/Trader is a self trader who would not be
looking for a premium advisory service. The big differential at PRS is that even here they
have dealers who would assist for them to trade independently, with just in case help. 
PRS takes a client-focused approach to execution by providing unmatched accountability
and transparent dialogue. 
Team of experienced professionals dedicated to serving the firm‟s corporate finance
clients 
Single point person responsible for each client 
 Focus on best possible execution 
 
Products and Services Offered 
 
Equity trading 
Derivative Trading. 
Commodities Trading. 
Mutual fund & IPO distribution. 
Depository services (ISO 9001:2000) for Shares & Commodities. 
Real time internet trading. 
Web based accounting. 
Research support to the client through SMS and E-mails. 
Clearing services for trading members in NSE and Future & Options. 
 
  
 
1. Equity
Equity investments generally refers to buying and holding of stocks by individuals and firms
in anticipation of income from dividends and capital gain as the value of the stock rises. It
also sometimes refers to the acquisition of equity (ownership) participation in a private
(unlisted) company or a start-up (a company being created or newly created).When the
investment is in infant companies, it is referred to as venture capital investing and is
generally understood to be higher risk than investment in listed going-concern situations.
 The equities held by private individuals are often held via mutual funds or other forms of
pooled investment vehicle, many of which have quoted prices that are listed in financial
newspapers or magazines; the mutual funds are typically managed by prominent fund
management firms. Such holdings allow individual investors to obtain the diversification of
the fund(s) and to obtain the skill of the professional fund managers in charge of the fund(s). 

2. Derivatives 
Since derivatives instrument provide good leverage opportunity, it is a great tool for
speculation. Leverage is a double edge sword for which one requires an equity advisor.
Their advisors will also help them with various strategies like Bull Spread, Bear Spread,
Cover call writing, hedging strategies etc. This is to help them to make better trading returns.
The Equity Advisor doesn‟t stop at just that, he goes a step further to ensure that client‟s
trades are settled and traded with proper margin in their account in a timely manner. This
allows them to give them a convenient single window service and their advisor becomes the
single point contact for all their equity related matters. 

3. Insurance 
Added Life Insurance during April 2008 to their Wealth Management Portfolio thereby filling
the gap in their basket of the products and thus providing comprehensive financial planning
to their clients covering not all wealth creation solutions, but also wealth protection through
proper risk management process. With complete emphasis on the solution providing, they
approach their clients, not merely with insurance product per se, but with module (life
profiler) to help their clients with objective based planning for life, identify and understand the
various risk attached to his/her life and later advising them with appropriate customized
solution. 
MOSL through their insurance partners offers insurance coverage and wealth creation
opportunities to meet client‟s different financial goals during the various stages of client‟s
life. The plans offer them the control to manage their protection and investment in one
account. It is designed to remove their worries and making them secure in the knowledge
that they and their loved ones are protected against any untoward events.
 
4. Mutual Fund 
A mutual fund is just the connecting bridge or a financial intermediary that allows a group of
investors to pool their money together with a predetermined investment objective. The
mutual fund will have a fund manager who is responsible for investing the gathered money
into specific securities (stocks or bonds). When they invest in a mutual fund, they are buying
units or portions of the mutual fund and thus on investing becomes a shareholder or unit
holder of the fund. 
Mutual funds are considered as one of the best available investments as compare to others
they are very cost efficient and also easy to invest in, thus by pooling money together in a
mutual fund, investors can purchase stocks or bonds with much lower trading costs than if
they tried to do it on their own. But the biggest advantage to mutual funds is diversification,
by minimizing risk & maximizing returns. 

5. IPO 
IPO or 'New Issues' is it is better known, are a source of great enthusiasm and excitement
among investors across the country. At PRS IPO Desk, they carefully analyze, prepare
research notes and recommend IPO for their clients to invest in. Their IPO Team does
rigorous analysis on the quality of new issue, the company's track record and its business
plans. More importantly, it critically evaluates the pricing of the issue and its friendliness.
Given the background and experience of PRS RESEARCH TEAM they are able to identify
the Quality issues out of a series of new issues that hit the market. 

6. Depository Services 
A depository can be compared to a bank. A depository holds securities (like shares,
debentures, bonds, Government Securities, units etc.) of investors in electronic form.
Besides holding securities, a depository also provides services related to transactions in
securities. A depository interfaces with the investors through its agents called Depository
Participant (DPs). If an investor wants to avail the services offered by the depository, the
investor has to open an account with a DP. This is similar to opening an account with any
branch of a bank in order to utilise the bank's services. 

7. Commodity 
Multi Commodity Exchange (MCX) is an independent commodity exchange based in India. It
was established in 2003 and is based in Mumbai. The turnover of the exchange for the
period Apr-Dec 2011 was INR 32 Trillion. MCX offers futures trading in Agricultural
Commodities, Bullion, Ferrous & Non-ferrous metals, Pulses, Oils & Oilseeds, Energy,
Plantations, Spices and other soft commodities. 

8. Corporate Fixed Deposits 

Corporate fixed deposits are similar to banking FD's, except that the money invested is with
a company and not a bank. Deposits under corporate FD's are governed by the Companies
Act under Section 58A. However, these deposits are unsecured, On the other hand,
companies FD's apart from giving a superior interest rate than banks, also provide investors
with a short-term deposits option with only a six month lock in period as well as the benefit of
having no income text deducted at source if the interest income is up to Rs 5,000 in one
financial year. Investments can also be spread in more than one company, so that interest
from one company does not exceed Rs 5,000. 
Corporate FD' s however do not change their rates during a six month to one year period,
which provides stability to the investment, These deposits, while are not very large from a
big company's point of view end up running more on a constant addition and exclusion of
investors. The interest paid by the companies is usually on a half yearly basis. Majority of the
companies who raise money via fixed deposits have quarterly interest payouts and the
interest vary from  9-13% based on the option one chooses. With such large fixed deposit
issues available in the market, mutual funds may lose out in investors who invest in their
fixed income products, and give to competition within the fixed income market space.

1.4  Competition Information 

 
MOST REPUTED PLAYERS  IN THE MARKET 
 
HDFC SECURITIES 
RELIANCE MONEY    
KOTAK SECURITIES 
INDIA BULLS
ICIC DIRECT

1.5  SWOT Analysis of Pee Aar Securities Ltd. 

 
STRENGTHS 

One of the largest broking house of India 

Low charges on its products as compared to most of its competitors. 
Advanced products given 
After sale services are very good. Investors need is taken care off  Clearing &
Trading member of F&O segment of NSE. 
Trading terminals of two Commodity Exchanges MCX/NCDEX 
Market leader in IPO in Delhi 
Comprehensive approach towards investments advice for MFs 
Intensive equity research (technical as well as fundamental) by investment analysts 
Commanding the faith of over 1,00,000 satisfied investors  
More than 1000 trading terminals of NSE, BSE, F&O, NCDEX and MCX installed 
Highly dedicated workforce of employees and financial advisors in PASL  
Strong presence in the business with a rich experience of over 20 years 
Equipped with hi-tech in-house Research wing and technological resources providing
complete research solutions 
Fast, Transparent and easy to use Online Internet Trading Platform  
 
WEAKNESSES 

Lacks awareness amongst most of the people. 

Dual portal system of trading which causes problems sometimes. 

OPPORTUNITIES 
    
India has one of the world's lowest transaction cost based on screen based
transaction, paperless trading and T+2 settlement cycle  
Growing retail investor participation, growing internet usage, faster telecom
connectivity and increasing comfortable levels with internet trading.  
Great enthusiasm about our membership and business dealings with commodity
exchanges  
Great opportunities also lies in the field of portfolio management services. 
CHAPTER-2 
 
Literature review
 
 
2.1 OBJECTIVES of the Study 
 
The objective of my project is divided into various parts: 
 
 
To get an overview of Indian Financial Market 
To understand the working of Indian Stock Market  To study about the evolution of
the Indian Stock Market 
To gain an insight into operations of Pee Aar Securities Ltd. 
To know about the products and services offered by Pee Aar Securities Ltd. 
To understand customers‟ perception about Pee Aar Securities Ltd.  To understand
strengths & weaknesses of Pee Aar Securities Ltd. 
factors  

2.2 SCOPE of the Study 

The scope of the project is to study and know about Indian Stock Market and Indian
Financial System. By studying the Online Trading, a clear option of dealing in stock
exchange is been understood. Unlike olden days the concept of trading manually is been
replaced for fast interaction of shares of shareholder. By this one can access anywhere and
know the present dealings in shares.  
In outcry, the broker has to buy or sell securities for which he has received the orders. For
this, the broker or his authorized representatives goes to the stock exchange. Basically the
broker shouts while buying or selling the securities. The floor of the stock exchange is
divided into a number of market also „post pit‟ or wing based on particular securities dealt
there. 
In the post pit or wing, the broker using „open outcry‟ method makes an offer or bid price.
For making the necessary bargain, he codes his purchase or sales price, also known as
offer or bid price. The dealer, to whom the price is quoted, quotes his own price quotation of
the dealer suits the broker, he may lose the bargain. If he is not satisfied with the quote price
he may turn to some other dealer .On the close of the bargain, the dealer sell as well as the
broker makes a brief notes of the particulars of the deal. Such notes are made on some pad
and on it the number of shares, the price agreed upon, the name of the party, what
membership number etc., are noted. 
The disadvantages of outcry system are it lack transparency, the scope of manipulation,
Inaudibility and also speculation and malpractice is more, in order to overcome the above
problems, online trading came in to existence. Hence the need to study the advantages of
online trading system and its importance in making the market operations and smooth while
retaining the flexibility of conventional trading practices. 
Since the year 2000 a big boom has been witnessed in the Indian Stock Market when the
market showed the coming up of Online Trading System. Many online stock trading
companies came but initially due to lack of online trading some companies vanished and
some survived. The companies which survived are getting the handsome returns also
attracting the foreign Investment Companies. Nowadays this sector is facing cut-throat
competition and also provides huge growth prospects. The study then goes to evaluate and
analyze the findings so as to present a clear picture of the trends in the online trading
sector. 
2.3 Managerial Usefulness of the Study 
 
This study can assist the management in decision making process. 
This study gives information about the competitors in the industry to the
management. 
This study can help the management to innovate new ideas regarding products and
services which can further fulfill the need of the existing as well as the potential investors. 
This study provides a comparative analysis of major brokerage houses in the market
to the management. 
This study gives a SWOT analysis of the organization to the management.

CHAPTER-3

RESEARCH METHADOLOGY

3.1  Research Design 

NON-PROBABILITY 
The non-probability respondents have been researched by selecting the persons who does
the stock trading. Those persons who do not trade in stocks have not been interviewed. 

EXPLORATORY AND DESCRIPTIVE RESEARCH 

The research is primarily both exploratory and descriptive in nature. The sources of
information are both primary and secondary.  
The objective of the exploratory research is to gain insights and ideas. 
The objective of the descriptive research study is typically concerned with determining the
frequency with which something occurs.  
A well structured questionnaire was prepared for the primary research and personal
interviews were conducted to collect the responses of the target population. 

Sample Size
 
The sample size taken for the purpose of questionnaire is 30. On the basis of their
responses, the conclusions have been drawn. 
 
Data Collection 

To determine the appropriate data for research mainly two kinds of data was collected
namely primary & secondary data as explained below: 
PRIMARY DATA 
Primary data are those, which were collected afresh & for the first time and thus happen to
be original in character. However, there are many methods of collecting the primary data; all
have not been used for the purpose of this project. The ones that have been used  are: 
 
STATISTICAL TOOLS USED 

The main statistical tools used for the collection and analyses of data in this project are: 
• Pie Charts and other Charts 
• Tables