Vikas Final (2)

8/8/2019 Vikas Final (2)

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Pro jec t r epor t on

Analysis Of Awareness among Investors regarding Online

Trading and Demat Account

Submi t t ed in pa r t i a l fu l f i l lment o f r equ i r ement fo r Summer In te rnsh ip Pro jec t fo r MMS Course

By

Vikas Raghuna th Waghmare

Un d er t h e g u i d an ce o f

I n t e r n a l g u i d e : Dr . K . D . M eh r u

E x t e r n a l Gu i d e : M r . Aj ayM r . Ni sh an t

R a j e e v G a n d h i C o l l e g e o f M a n a g e m e n t S t u d i e s

U n i v e r s i t y o f M u m b a i2 0 1 0 - 2 0 1 1 .


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DECLARATION

I, Waghmare Vikas Raghunath, studying at Rajeev Gandhi

College Of Management Studies, hereby state that this

industrial training report titled Analysis Of Awareness

among Investors regarding Online Trading and Demat

Accountwas carried at standard chartered wealth managers

is submitted in partial fulfillment of the requirement of the

MBA program of Mumbai university is an original work

carried out by me under the guidance and supervision of

industry guide Mr. Ajay and Mr. Nishant.

DATE:

PLACE: MUMBAI


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Table of content

Title page

Certificate from guide

Executive summary

Chapter 1. Details of organization

Company profile

Current position

Recent alliance and strategic acquisition

Standard chartered STCI capital market ltd.

Standard chartered wealth managers.

Mission statement

Vision

Core values

Organizational structure

Products and services offered by SCWM

Value pack scheme

SWOT analysis

Chapter 2. Introduction:

Stock exchange

Securities and Exchange Board of India

Online trading

Offline trading


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Competitors information

Chapter3. Research design:

Problem Statement

Title of the project

Objectives of the study

Scope of the study

Research Methodology

Limitations of the study

Chapter 4. Data Analysis and Interpretation

Analysis of bank broking charges

Analysis of value pack

Chapter 4: Findings, Suggestions and Conclusion:

Chapter 5 : Bibliography


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ACKNOWLEDGEMENT

It is a matter of great satisfaction and pleasure to present this report on Analysis

Of Awareness among Investors regarding Online Trading and Demat

Account. I take this opportunity to owe my thanks to all those involved in mytraining.

This project report could not have been completed without the guidance of ourDr.K.D. Mehru his timely help & encouragement helped me to complete thisproject successfully.

I thank Dr.K.D. Mehru for giving me opportunity to work at StandardChartered Bank, as a WEALTH MANAGER

I am thankful to Mr. Ajay Sir & Mr.Nishant Sir for their encouragement andguidance at every stage of my training work.


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I express my gratitude towards staff of WEALTH MANAGEMENTDEPARTMENT -Standard Chartered Bank, those who have helped me directlyor indirectly in completing the training.


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EXECUTIVE SUMMARY

The commencement of Online Trading and Demat has transformed the capitalmarket in India. With the help of demat and trading account, buying and sellingof shares has become a much faster and even process than trading with theassistance 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 toinvest 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 networth customers. But the introduction of internet trading, even a common or asmall 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 telephoneconnection, registration with broker, a bank a/c and depository account.

The introduction of depository service are considered as the beginning of thetrading of stocks @ click. This means that you can arrange delivery of scripssold anytime, anywhere to anyone by click of a mouse. Dematerializationfacilitates to keep the securities in electronic form instead of paper form. It

offers more advantageous than the physical certificate form.

Despite the advantages of dematerialization, the awareness levels among theinvestors relating to demat account is not adequate because of numerousreasons. The investors are not sufficiently responsive of the concept of demataccount and the various financial institutions providing such services.

This study involves understanding the various concepts of demat and analyzing theinvestment pattern of individuals in India and a study on analysis ofawareness among investors regarding on line trading and demat account has

been submitted to Mumbai university as a part of curriculum for the partialcompletion of MBA.


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COMPANY PROFILE

OVERVIEW:

The standard chartered group was formed in 1969 through a merger of two banks:the standard bank of British south Africa founded in 1863 and the chartered

bank of India, Australia and china, founded in 1853.

Both companies were keen to capitalize on the huge expansion of trade and to earnthe handsome profits to be made from financing the movement of goods fromEurope to the east and to Africa.

The chartered bank:


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Founded by James Wilson following the grant of a royal charter by queen Victoriain 1853.

Chartered opened its first branches in Mumbai (Bombay), Calcutta and shanghai in1858, followed by Hong Kong and Singapore in 1859.

Traditional business was in cotton from Mumbai (Bombay), indigo and tea fromCalcutta, rice in Burma, sugar from java, tobacco from Sumatra, hemp inmanila and silk from yokohama.

Played a major role in the development of trade with the east which followed theopening of the Suez canal in 1869 and the extension of the telegraph to china in1871.

In 1957 chartered bank bought the eastern bank together with the Ionian bank's

Cyprus branches. This established a presence in the gulf.

THE STANDARD BANK:

Founded in the cape province of south Africa in 1862 by john Paterson.Commenced business in port Elizabeth, south Africa, in January 1863.

Was prominent in financing the development of the diamond fields of Kimberleyfrom 1867 and later extended its network further north to the new town ofJohannesburg when gold was discovered there in 1885.

Expanded in southern, central and eastern Africa and by 1953 had 600 offices.

In 1965, it merged with the bank of west Africa expanding its operations intoCameroon, Gambia, Ghana, Nigeria and sierra Leone.

Standard chartered bank is a British bank headquartered in London with operationsin more than seventy countries. It operates a network of over 1,700 branchesand outlets (including subsidiaries, associates and joint ventures) and employs75,000 people.


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Despite its British base, it has few customers in the United Kingdom and 90% ofits profits come from Asia, Africa, and the Middle East. Because the bank'shistory is entwined with the development of the British Empire its operationslie predominantly in former British colonies, though over the past two decadesit has expanded into countries that have historically had little British influence.It aims to provide a safe regulatory bridge between these developingeconomies. It now focuses on consumer, corporate, and institutional banking,and on the provision of treasury servicesareas in which the group had

particular strength and expertise. Standard chartered is listed on the Londonstock exchange and the Hong Kong stock exchange and is a constituent of theFTSE 100 index. Its largest shareholder is temasek holdings

Standard Chartered Bank reported a seventh consecutive record annual profit, of$3.38 billion, as stronger wholesale banking earnings offset an increase in

provisions for bad loans and other credit risks. The bank said net profit rose 4percent in 2009 from $3.24 billion a year earlier. Impairment losses on loans andother credit rose from $1.3 billion to $2 billion, although the bank said the rate ofimpairment declined in the second half. Pretax profit rose 13 percent to $5.15

billion, and operating income was up nearly 9 percent to $15.2 billion.


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COMPANY HISTORY:

In 1969, the decision was made by chartered and by standard to undergo a friendlymerger. All was going well until 1986, when a hostile takeover bid was madefor the group by Lloyds bank of the united kingdom. When the bid wasdefeated, standard chartered entered a period of change. Provisions had to bemade against third world debt exposure and loans to corporations andentrepreneurs who could not meet their commitments. Standard chartered

began a series of divestments notably in the united states and south Africa, andalso entered into a number of asset sales.

At standard chartered, success is built on teamwork, partnership and the diversityof our people. At the heart of their values lie diversity and inclusion. They are afundamental part of their culture, and constitute a long-term priority in them to

become the world's best international bank. Today they employ 75,000 people,representing 115 nationalities, and you'll find 61 nationalities among our 500most senior leaders. We believe this diversity helps to fuel creativity andinnovation, supporting the development of exciting new products and servicesfor our customers worldwide.

Standard chartered plc is listed on both the London stock exchange and the stockexchange of Hong Kong and is in the top 25 ftse-100 companies, by marketcapitalization. Following the acquisition of Korea first bank, standard charterednow employs 38,000 people in 950 locations in more than 50 countries in the

Asia pacific region, south Asia, the middle east, Africa, the united kingdom andthe Americas.

It serves both consumer and wholesale banking customers. Consumer bankingprovides credit cards, personal loans, mortgages, deposit taking and wealthmanagement services to individuals and small to medium sized enterprises.Wholesale banking provides corporate and institutional clients with services intrade finance, cash management, lending, securities services, foreign exchange,debt capital markets and corporate finance. Standard chartered is wellestablished in growth markets and aims to be the right partner for its customers.

The bank combines deep local knowledge with global capability. The bank istrusted across its network for its standard of governance and its commitment tomaking a difference in the communities in which it operates.


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Table No showing prominent information regarding Standard Chartered:

Type PublicFounded 1853

Headquarters London, England, UK

Key people John Peace- Chairman, PeterSands-Chief Executive

Industry Banking

Products Financial Services

Revenue $16,378 million (2009)

Operating income $15,184 million (2009)Net income $3,511 million (2009)

Employees 75,000 (2010)

Website www.standardchartered.com
http://www.standardchartered.com/http://www.standardchartered.com/


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CURRENT POSITION:

Today, the bank is a leading player throughout the developing world. Standardchartered bank is one of the three banks issuing banknotes for Hong Kong(standard chartered bank (Hong Kong) limited became a note-issuing bankfrom 2004), the other two being the bank of china (Hong Kong) and thehongkong and shanghai Banking Corporation.

The bank supports marathons in many cities, including London (the city run),jersey, Singapore, Dubai, Lahore, Mumbai, Hong Kong, and Nairobi.

Standard chartered bank has its global presence in all over America, Asia, Africa,Middle East, and Europe. In its unique position as an international bank withstrong franchise, standard chartered combines an in-depth knowledge of localmarkets with global product expertise to offer effective financial solutions. The

bank capitalizes on its onshore presence across Asia, Africa and the MiddleEast to offer customers convenient and reliable access to the widest range ofcurrency markets, to date local market information, country-specific global riskmanagement strategies, and customized capital raising and liquiditymanagement solutions.

RECENT ALLIANCES AND STRATEGIC ACQUISITIONS:

In 2000, standard chartered acquired grind lays bank from anz bank, increasing its

presence in private banking and further expanding its operations in India andPakistan. Standard chartered retained grind lays' private banking operations inLondon and Luxembourg and the subsidiary in jersey, all of which it integratedinto its own private bank. This now serves high net worth customers in HongKong, Dubai, and Johannesburg under the name standard chartered grind laysoffshore financial services. In India, standard chartered integrated most ofgrind lays' operations, making standard chartered the largest foreign bank in thecountry, despite standard chartered having cut some branches and havingreduced the staff from 5500 to 3500 people.


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On 15th April 2005, the bank acquired Korea first bank, beating HSBC in the bid.Since then the bank has rebranded the branches as sc first bank. Standardchartered completed the integration of its Bangkok branch and standardchartered nakornthon bank in October, renaming the new entity standardchartered bank (Thailand).standard chartered also formed strategic allianceswith Fleming family & partners to expand private wealth management in Asiaand the middle east, and acquired stakes in ACB Vietnam, travelex, Americanexpress bank in Bangladesh and Bohai bank in china.

On 9th august 2006 standard chartered announced that it had acquired an 81%shareholding in the union bank of Pakistan in a deal ultimately worth $511million. This deal represented the first acquisition by a foreign firm of aPakistani bank and the merged bank, standard chartered bank (Pakistan), isnow Pakistans sixth largest bank.

On 22nd October, 2006 standard chartered announced that it has received tendersfor more than 51 per cent of the issued share capital of Hsinchu international

bank. On completion of the offer, standard chartered will have majorityownership of Hsinchu, Taiwans seventh largest private sector bank by loansand deposits as at 30 June, 2006.

In 2006, standard chartered, in Bangladesh, announced an alliance with Dutchbangle bank ltd to share their respective ATM operations

On 23rd august, 2007 standard chartered entered into an agreement to buy a 49percent of an Indian brokerage firm (UTI securities) for $36 million in cashfrom securities trading corporation of India ltd., with the option to raise itsstake to 75 percent in 2008 and, if both partners agree, to 100 percent by 2010.UTI securities offers broking, wealth management and investment bankingservices across 60 Indian cities.

On 29th February 2008, standard chartered plc announced it has received all therequired approvals leading to the completion of its acquisition of Americanexpress bank ltd (AEB) from the American express company (AXP). The total

cash consideration for the acquisition is us$ 823 million the acquisition of AEBprovides standard chartered with an opportunity to add capability, scale andmomentum in the strategically important financial institutions and private

banking businesses. It will add 19 more markets to the standard charteredfootprint, while deepening presence in some core markets and providing accessto several new growth markets.


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STANDARD CHARTERED, INDIA:

The chartered bank opened its first overseas branch in India at Calcutta on the 12April 1858. Eight years later the Calcutta agent described the banks creditlocally as splendid and its business as flourishing, particularly the substantialturnover in rice bills with the leading Arab firms. When the chartered bank firstestablished itself in India, Calcutta was the most important commercial cityand was the center of the jute and the indigo trades. With the growth of thecotton trade and the opening Suez canal in 1869, Bombay took over fromCalcutta remaining an important trading and banking center.

Now standard chartered is the largest international banking group in Indiacombined balance sheet (as at march 31 2007) Rs. 94515.9 cr. Having acombined customer base of 2.4 million in retail banking and over 1200

corporate customers. Key business includes consumer banking primarilycredit card mortgages personal loans and wealth management trade financetreasury and the custody services.

Currently, in its 150th year, the bank continues its passion and commitment inbringing innovative banking solutions for the corporate and the retail customer.The group in India is credited with several industries first and the productinnovations. These include issuance of the first global credit card in India andthe first photo card. Since the bank was the first to issue a picture card andcredit card it was awarded the ISO 9002 certification. Standard chartered group

has 78 branched in India.

Standard chartered bank is the largest international banking group in India with 78branches in 30 cities. The bank is having a combined customer base of 2.5million in retail banking and over 1200 corporate customers. The key

businesses of standard chartered bank in India include consumer banking -primarily credit cards, mortgages, personal loans and wealth management - and- wholesale banking, where the bank specializes in the provision of cashmanagement, trade, finance, treasury and custody services.

Some other product innovations of standard chartered bank in India include the'sapnay' credit card, the international debit card that provides free access toover 1500 visa ATM's, a first in the banking industry, mileage, an overdraftfacility against the security of a car and smart credit. The name is derived fromstandard & chartered. Standard bank of British south Africa merged withchartered bank of India, Australia and china in 1969.


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STANDARD CHARTERED - STCI CAPITAL MARKETS LTD:

It is a leading broking company with a pan-India presence and provides a widerange of financial services, including investment banking, institutional equity& derivative broking, fixed income, research, retail equity & derivative

broking (offline and online), portfolio management, distribution of financialproducts and depository services.

STANDARD CHARTERED WEALTH MANAGERS:

Standard chartered wealth managers is the retail division of standard chartered STCI capital markets limited. The unit provides services such as broking,wealth management, mf distribution etc. On 11th January 2008 standardchartered bank (Mauritius) limited acquired 49% stake of erstwhile UTIsecurities limited from securities trading corporation of India (STCI).

Accordingly, the name of the company was changed from UTI securitieslimited to standard chartered STCI capital markets limited with effect fromJanuary 17th, 2008. Subsequently, on December 12, 2008, SCBM acquiredfurther 25.9 % stake in standard chartered STCI capital markets limited toincrease its total stake in standard chartered STCI capital markets limitedfrom 49.0 % to 74.9 %.

MISSION STATEMENT:

To emerge as one of the leading providers of stock brokerage,

investment banking & related services at par with the best in the

world.

VISION:


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CORE VALUES:


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The spirit of their identity includes the values that drive each and every one ofthem. They believe these are the values you desire of your financial partner.The banks values guide the way they work with colleagues, customers,suppliers and other stakeholders. The values responsive, trustworthy,creative, international and courageous- show them how they can build theculture, which will help them to achieve their business goals, and makestandard chartered a great place to work. The values reflect extensive internal,customer and market research and show how they can all be lead by example to

be the right partner.

Responsive: They are unparalleled on their word. They are accessible whereverand whenever the customers need them. Not only do they strive to deliversolutions, they also aim to exceed the expectations.

Trustworthy: They respect the customers time and their life. By understandingthe customers needs and tailoring the right financial solutions for them andthereby earn the trust.

Creative: Creative thinkers are not limited by convention. They allow their mindsto soar beyond predictable solutions. Thats how they approach each challenge

posed to them, which is why they base their products and services on ideas thatare innovative, perspective and instinctive.

International: They understand the balance between global and the local. Thecustomer trusts them to be established and internationally - networked, while atthe same time sensitive to their individual needs. Their strong network acrosscultures helps them build stronger relationships based on ideas not formulate.

Courageous: The bank represents a commitment to be there for the customers ingood times and bad times. They help them achieve their aspirations by guidingthem towards the right choice not just the easy one.

THE CUSTOMERS:

How the bank treats its customers, where they choose to operate, who they providefinancial support to and how they respond to customers financial needs all havean impact on their reputation and ultimately their financial success.


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Understanding and responding to their customers needs is their basic to the waythey do business. As social, ethical and environmental issues gain prominence,it is increasingly important that they understand how their customers meetthese challenges is to uphold consistent standards of conduct across the world,while still respecting the cultures, local requirements and varying businesscustoms of the individual countries where they operate.

CODE OF CONDUCT:

The principles that govern the behavior of their businesses and employees arereflected in a group code of conduct. The group code of conduct is a

practical working document that guides employees through the many difficultissues they may run up against in their daily working lives.

Complying with each element of the code will not always be easy. But they

recognize that they will be judged both on their own code and on how it isreflected in the day- to -day behavior of everyone who works within the bank.

Below there are certain instances of how the code of conduct affects the way thebank deals with their customers. The code of conduct also affects the way theemployees behave and the customer can find out more about the standards scexpect them to meet.

Their employees must adhere to the following key principles:

Customer identification: The identity of every customer must be established fromreliable identifying documents.

Know your customer: Their staff must know enough about details about theircustomers that can be identified at the time of the transactions are made anddocuments are submitted so that no inconsistency of the details while verifyingis made.

Reporting of suspicions: Suspicions transactions must be reported immediately bythe employees without hesitation.

FAIR TREATMENT OF CUSTOMERS:

Financial products and services are increasing sophisticated tools. Selling themcalls for knowledge, skills and judgment.

For the employees, the basic rules are:


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Do not sell an unsuitable product to a customer: that is, a product that does notmeet customers needs.

Know enough about the standard chartered products and about the customer (risk,appetite, objectives, finances and personal circumstances) to judge the effect,

which the products will have, and whether they will meet his or her needs.

Make every effort to ensure that the customer understands more complex productsand their risks properly.

Explain product features clearly both face to face and in any marketing literatureand software.

QUALITY OF SERVICE:

The banks business will only succeed if they offer the highest standards ofservices to their customers, retaining the loyalty and confidence of existingcustomers and winning the support of new ones. The bank has set the task ofimproving all aspects of customers services through our out serve

programmed which was introduced in key markets in 2004 and will beextended to all other markets in 2005. The bank expects excellent customerservice to be something they are renowned for.

The out serve programmed includes a range of systems that will allow measuringtheir performance and target areas for improvement. It will also allow them to

respond in a systematic way to independent benchmarking information theyused to measure us against their competitors.

CORPORATE RESPONSIBILITIES:

At the standard chartered they recognize that their operations have an impact onthe economies, communities and on the environment and a responsibility toaddress this impact. They also recognize that through the business activitiesthey can contribute to substantial development.

STANDARD CHARTEREDS APPROACH:


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The group wants to be The worlds best international bank leading the way inAsia, Africa and the Middle East. They see the corporate responsibility as anopportunity to make the brands stand out. The bank puts an effort making surethat in pursuing our business goals, it identify and address the impacts it has onthe stakeholders, look after the people it works with and help the communitiesit operates in.

Over the past year, the bank has revisited these key issues and continued to developsystems and structures to manage them. The group has a strong commitmentfrom the board and in December 2004 established a corporate responsibilitycommittee, drawing on external advisors, executives and the non-executivesleaderships to ensure that progress is made towards our corporate responsibilityaspirations. Communicating with the stakeholders has helped the bank shapeits thinking and check thinking and check that it is on the right track. In 2005

the group aimed to have published their first corporate responsibility report.

ORGANISATION STRUCTURE:

RETAIL-CENTRAL TEAM


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BRANCH NETWORK


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How to open account with STCI Capital Markets?

For online trading with STCI Capital Markets, investor has to open an account.Following are the ways to open an account with STCI Capital Markets:

Call them at phone number provided below and ask that you want to open anaccount with them.

Visit their website and fill a form. Representative from STCI CapitalMarkets will contact you.

Visit one of their branches. Click on the below link and find out your nearestbranch. Just select the place near you and you'll find a manager to assist youthere.http://www.contentlinks.asiancerc.com/scwmnew/branchlocator.asp

From the mobile phone type "ACCOUNT" for 3-in-1 to and send it to

57575. Representative from Standard Chartered STCI Capital Markets willcontact you shortly for fulfilling all account opening formalities.

You can send them an email [email protected] for 3-in-1 Account [email protected] for 2-in-1 Account.
http://www.contentlinks.asiancerc.com/scwmnew/branchlocator.asphttp://www.contentlinks.asiancerc.com/scwmnew/branchlocator.asp


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Products & Services offered by Standard Chartered Wealth

Managers:

The product offered is broadly divided into two categories:

A. Retail products

B. Wholesale products

A. RETAIL PRODUCTS: It Is Further Divided Into Three Categories Which AreAs Follows:

1. ONLINE PRODUCTS: The company deliver state-of-the-art tools, excellent

customer care, affordable pricing and innovative technology, so the customerscan follow their own path. The branchs products are mainly need based.

EQUITY: In standard chartered wealth managers, the customers can place onlinetrades for most of the stocks listed on NSE & BSE. The unit offers powerfulways to place stock orders. The offers also include delivery based tradingwhere in the customers can place delivery based orders for all stocks listed on

NSE & BSE.

INTRA-DAY TRADING: Execute margin orders up to 4 times your available

funds. The same is available for select group of stocks listed on NSE & BSE.

ACQUIRE NOW SELL TOMORROW (ANST): The customers can sell sharesbefore they receive the same in their demat account. They can avail of thisfacility 1st and 2nd day after the buy order date.

DERIVATIVES: Through the trading account, the customers can pursue a widerange of futures & options trading strategies with speed and ease. The unitdelivers the support, information and structure that quickly help them spot

potential opportunities and act on them fast.

MUTUAL FUNDS: At standard chartered wealth managers, the customers areoffered access to more than 1000 mutual fund schemes from leading fundfamilies. These funds provide broad diversification and cover a range ofinvestment objectives, philosophies, Asset classes and risk exposures. Tradesmay be placed via the internet, interactive voice response (IVR) phone systemor with a broker.


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IPO: Initial public offer presents excellent opportunities for gaining high returnson the customers investments in a relatively short period of time. The branchhas made investing in IPOS hassle free. All that is required by an investor isbuying power and rest is at the click of a button. No paperwork or no queuesare involved in the service. The customers can get information on IPO news,forthcoming IPOS and a lot more on the official website of the unitswww.standardcharteredwealthmanagers.com

BONDS: Fixed income securities can help reduce your risk within an investmentportfolio while providing a steady stream of income over time. Currently thebranch allows the customers to choose to invest online in GOI Bonds. If thecustomers are looking to diversify your portfolio, possibly improve your taxefficiency and/or reducing your risk exposure, they may want to considermaking fixed income securities part of their personal investment strategy.

2. DISTRIBUTION: Investors in India were known to have a fairly low riskappetite with majority of the savings, in traditional products such as FD's, PPF,and postal saving schemes. The opening of the financial sector has given wayto a host of asset management companies (AMC) to offer world-class productsto the Indian consumer. The financial products that are being offered in themarkets today provide an opportunity to the investor to participate in the stockmarkets even with minimal funds.

THE COMPANY OFFERS THE FOLLOWING PRODUCTS:

IPO: The company has been an active player in the IPO market helping retailsegment. The company was ranked among the top 10 distributors for IPOS inretail category for the year 2007- 08. It has a wide network of businessassociates spread across the length and breadth of country. A strong and trainedtalent pool of relationship managers has made the company one of the strongest

players in retail segment.

MUTUAL FUNDS: Mutual funds in the recent years have been very popular withinvestors, as it provides an opportunity to invest in the stock markets even with

minimal funds. Mutual funds have generated above average returns, whichmakes them an attractive investment proposition. The company is a leading

player in the mutual fund distribution with tie-ups with all major AMCs.

FIXED INCOME PRODUCTS: Fixed Income Products Such As Gobi (RBI)Bonds, Infrastructure Bonds, Nabard Bonds, And Capital Gain Bonds Etc AreAlso A Part Of Our Product Mix.


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3. THREE - IN - ONE ACCOUNT: This is the multi-product offered by thecompany. The investor by applying for this account not only lets to invest instock market, but also let you open saving account in standard chartered bank it

basically comprises of three accounts which are as follows:

TRADING ACCOUNT: In this account the investor has to transfer the funds fromsaving account to this account. The funds transferred in this account are usedfor buying the securities from the stock market. The investor can instantlytransfer the funds online through their user id.

DEMAT ACCOUNT: It is the account in which shares purchased is maintained indigital format. Generally after buying the securities it takes three working days(transaction day + two working days) for share to appear in the demat account.Once the delivery has been done the securities purchased will be shown in thedemat account.

SAVINGS ACCOUNT: The investor gets lifetime savings accounts by taking thisuseful 3-in 1 account. This account is opened in standard chartered bank. Inorder to open the saving account, investor has to issue a cheque of Rs. 5000 orRs. 10000 or Rs. 25000. As the investors has to maintain an average quarterly

balance (alb). He can maintain his AQB for saving account in three ways byissuing cheque of Rs. 5000 or Rs. 10000 or Rs. 25000. Each amount amongstthe three has its unique benefits. AQB of Rs. 5000 provides the customer withdebit card, AQB of Rs. 10000 provides customer with platinum card with free

maintenance for 1 year, double reward points which are adjustable againstAirtel bill, AQB of Rs. 25000 provides customer with normal platinum debitcard. It also provides cheque book, internet banking, debit card etc and otheradvanced services for all kind of AQB respectively. This saving account islinked to the trading account.

THE DOCUMENTS THAT ARE REQUIRED TO OPEN THREE-IN-ONEACCOUNT ARE:

A. Three Self Attested Copies of Pan Card

B. Three Pass Port Size Photographs of Account Holder

C. A value pack cheque which customer is opting for, which is issued againstStandard Chartered-STCI Capital Markets ltd.

D. Account holder has to do Thirty Five Signatures in Opening Form of 3-1Account


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E. Three copies of address proof amongst any one, which can be of passport, voterid, BSNL landline bill, ration card, bank statement, and driving license.

4.VALUE PAC:

Below is the value pack / scheme sheet which we used to explained to theprospective customers.

The chart below is the value pack chart which shows amount to be paid foradvance brokerage and the brokerage charges of different products.

SCHEME SHEET SCHEDULE OF UPFRONT FEES DEPOSIT ANDBROKERAGE CHARGES

CLIENT NAME-------------------------------------CLIENT CODE/APPLICATION NO.-----

Scheme

Details

Standard

Product

Value Pack

2500

Value Pack

5000

Value Pack

10000

UpfrontFees

deposit

0 2500 5000 10000

ValidityPeriod

NotApplicable

1 year 1 year 1 year

Amount

Reversible

0 2500 5000 10000

A/COpeningCharges

499 0 0 0

DeliveryBrokerage

0.05 0.35 0.25 0.15


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IntradayBrokerage Each Side

0.05 0.35 0.25 0.15

Derivatives

Future Each Side

0.5 0.35 0.25 0.15

Optionsbrokerage

Each leg

1% of thepremium or

Rs 100/-whichever

higher

0.70% ofthe

premium orRs 70/-

whicheverhigher

0.60% ofthe

premium orRs 60/-

whicheverhigher

0.50% ofthe

premium orRs 50/-

whicheverhigher


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Service tax, stamp duty, turnover tax, STT and any other regulatory andstatutory charges as applicable will be charged extra in addition to the

brokerages rates mentioned above

Minimum brokerage of rs.25/- per scrip shall apply in cash segment, subject tomaximum of 2.5% of the total trade value

Contracts will be separate for NSE and BSE normal segment and for trade-to tradesegment.

The final value of the brokerage and service tax is arrived at by multiplying the pershare value in 2 decimals with the quality.

TERMS AND CONDITIONS:

The clients will be charge special brokerage rates as specified in the aboveschedule as per the scheme chosen by him in addition to upfront fees depositwhich would be debited from customers ledger account

If the customer is an existing customer then the upfront fees deposit will be have tobe paid by the client either by way of separate cheque or the same will berecovered from the customer ledger balance with us. If the customer is new,then the upfront fees deposit will have to be paid by the client by way ofseparate cheque in the name of standard chartered STCI capital markets ltd.Subsequent fees will be debited to clients ledger account as per rollover

provision detailed below or scheme change request submitted by the client. Thescheme once opted cannot be changed for a minimum period of one year.

The brokerage generated till the expiry of scheme period shall be reversed subjectto maximum of upfront fees deposit paid by the client .any brokerage generatedover and above the upfront fees deposit paid by the client will not be reversed.The excess of upfront fees deposit over brokerage generated, if any, will beforfeited.

Rollover provision: any scheme shall be applicable for a minimum period of oneyear (hereafter referred to as initial scheme period) and could be furtherrenewed for a further period of one year as explained hereunder.


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The client will be automatically enrolled in the same scheme for the next one yearafter the lapse of the initial period if he /she become eligible for the reversal ofentire upfront fees deposit for the initial period. The client can choose tochange scheme after the lapse of the initial period by signing and submitting afresh scheme sheet in advance seven working days before the expiry of theterm of initial scheme period. The client can choose to discontinue the schemeafter the lapse of the initial period by giving a written signed confirmation inadvance seven working days before the expiry of the term of initial scheme

period for discontinuing the scheme.

If the client is not eligible for automatic rollover, then the client has to give hiswritten signed confirmation for rollover of the scheme for the next one year

period by signing and submitting a fresh scheme sheet in advance sevenworking days before the expiry of the term of initial scheme period.

Upon discontinuation i.e., client not being eligible for automatic rollover / optingout of the scheme, the standard brokerages shall apply as specified in theschedule above and the same shall apply from the date of expiry of the scheme.

During the validity of the scheme period, the client can not avail of any otherscheme/ service offered by standard chartered STCI capital markets ltd.

Standard chartered STCI markets ltd. Reserves the right to

discontinue/modify/extend the schemes by giving a prior intimation to theclient either by an electronic or physical mode of communication and the sameshall be binding on the client.

I hereby confirmed that I have understood the scheme offered to me and termsand conditions thereof.

DATE: ----------------------

PLACE:----------------------- SIGNATURE OF THE CLIENT


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ADVANTAGES OF VALUE PAC TO A CUSTOMER:

The brokerage rate tends to get reduced.

By paying a brokerage equal to the denomination, the funds are refunded back tocustomer account.

DISADVANTAGES OF VALUE PAC TO A CUSTOMER:

If the investor is not able to generate brokerage equal to the value pack amount,investor will not be refunded the advance brokerage amount after 6 months.

The refunded amount cannot be further used for the advance brokerage.

5. TWO in one: In TWO in one product, SCWM provides only Tradingaccount and Demat account to the customer. Customer need not have

to open a saving account with SCB. But in order to open a 2 in oneaccount, there is one condition, that when the customer issues a valuepack cheque against in favor of Standard Chartered STCI capitalmarket ltd that cheque supposed to be of the banks listed below.SCWM had linked with these banks. The list of banks with SCWM hadlinked:

1. HDFC BANK -

2. ICICI BANK LTD -

3. AXIS BANK -

4. CITI BANK-

5. IDBI BANK-


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6. CORPORATION BANK

CUSTOMER SERVICE AND OTHER VALUE ADDED SERVICES:

A. Online query resolution: With the service of "quick mail" tool the investorscan resolve all their problems online.

B. Digital contract notes and summary of transaction: The customers can viewtheir digital contract note, summary of their transactions using online "bills &accounts"

C. My Inbox: This Option Maintains Records OF all important notificationsrelated to the customers account.

D. Interactive Demo: This is a step-by-step guide to enable the investor tonavigate through the process of investing online on company website.


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SWOT analysis of SCB:

Strengths:

1. Strong presence in India, since 150 years.

2. Provides the convenience of online transactions to access information aboutvarious accounts and also transfer money.

3. Providing excellent quality advance services at reasonable price.

4. Strong and long sales force.

5. Strong brand name with worldwide presence.

6. Vast variety of services provided.

Weaknesses:

1. Services not catering to the masses.

2. Delay in operations.

3. No aggressive advertising strategy with modest promotional efforts andexpenditure.

4. Less coverage of branch network compared to competitors.Opportunities:

1. Potential market for products and services in India.

2. Expand the operations by opening branches in small cities and establish itsbrand name.

Threats:

1. Lack of awareness among investors about the products and services.

2. Existence of strong competitors, especially Indian private banks in the industry.

3. Dominance of nationalized banks in India.


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STOCK EXCHANGES:

The investor wants liquidity for their investments. The securities, which they holdshould easily be sold when they need cash. Similarly, there are others whowant to invest in new securities. There should be a place where the securitiesneed to be sold and purchased. Stock exchanges provide a place wheresecurities of different companies can be purchased and sold.

Stock exchange is a body of persons, whether incorporated or not formed, with aview to help, regulate and control the business of buying and selling securities.

Stock exchanges are organized and regulated markets for various securities issuedby corporate sector and other institutions. The stock exchanges enable flexible purchase and sale of securities as commodity exchanges allow trading incommodities.

Stock exchanges are an integral part of nation's economic life. They operate byholding the responsibility of mobilizing savings of small and big investors andallocating them to the business firms and for the entrepreneurs, towards

productive investment. The following definitions explain the meaning andscope of stock exchanges.

DEFINITION:

According to the securities contract act, 1956:

stock exchange means any, body of individuals, whether incorporated or not,

constituted for the purpose of assisting, regulating or controlling the

business of buying and selling in securities"

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI):

Recommendations of narasimham committee as well as of other committees andgroups pointed out a number of shortcomings in the functioning of stockmarkets in India, such as long delays, lack of transparency in procedures,

vulnerability to price rigging and inside trading. To counter theseshortcomings, securities and exchange board of India (SEBI) was initiallyestablished as a non-statutory body in April 1988 for

1. Dealing with all matters relating to the development and regulation.

2. Providing investor protection.


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3. Advising the government on all these matters.

SEBI was given statutory status by an act of parliament on April 4, 1992. SEBIwas authorized

1. To regulate all merchant banks on issue activity

2. To lay guidelines, and supervise and regulate the working of mutual funds and

3. To oversee the working of stock exchanges in India.

FUNCTIONS OF SEBI:

Under the SEBI act, SEBI has been assigned the following main functions;

1. Regulating the business in stock exchanges and other securities markets.

2. Registering and regulating the working of stock-brokers, sub-brokers, sharetransfer agents, bankers to an issue, trustees of trust deals, registrars to an issue,merchant bankers, underwriters, portfolio managers, and other intermediariesassociated with the securities markets.

3. Registering and regulating of collective investment schemes including mutualfunds.

4. Promoting and regulating the working of self-regulatory organizations.

5. Prohibiting fraudulent and unfair trade practices relating to securities market.

6. Promoting investors education and training of intermediaries of securitiesmarket

7. Prohibiting insiders trading in securities

8. Regulating substantial acquisition of shares and takeover of companies.


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ONLINE TRADING:

The national stock market system provides single, nation wide securities. It enablesLAN investors in one part of the country to trade at the best quotes with aninvestor located in any other part of the country through the members of thestock exchange and subsequently clears and settle the trade in an efficient andcost effective manner. The primary objective of the stock market is to provideclear opportunity to the investors throughout the country to trade any securityirrespective of the size of the order or the broker through whom the order isrouted. This provides the facility to execute the buy order at the lowest price inthe stock market located anywhere in the country without any extra cost to theinvestors.

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 connectedto the central computer system at the NSE through leased line or vsats (verysmall aperture terminals), for an interim transition period of 6 months &subsequently by satellite link. Vsats are relatively smaller dishes similar to dishantenna for cable TV & have the benefit of not being very expensive. Asatellite network makes it possible to connect almost all the parts of the nationquickly as it is easy to install, as against the ground lines such as dial upmodems leased lines, which are prone to disruptions, satellite links, on theother hands ensure high speed, availability and quality of the connection. Thismode of trading is known as "online trading"

OBJECTIVES OF PRESENT TRADING SYSTEM:

Reduce and eliminate operational inefficiencies inherent in manual systems

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


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Smooth market operations using technology while retaining the flexibility ofconventional treading practices

Set up various limits, rules and controls centrally

Consolidate the trades data on electronic media to interface will the brokers backoffice system

Provide public information on scrip prices, indices for all users of the system

Provide analytical data for use of stock market.

MECHANISM:

The broker of stock trading gets the membership at the stock exchange after

fulfilling a set of conditions. The broker is connected online with the stockexchange. On the system he constantly gets the real quotes in the market, theirposition, the demand and supply rates, number of buyers and sellers at variousrates.

The customer drops in the office of the broker or gives him a call regarding sale orpurchase of particular number shares. The broker takes his order and inputsthat in his online system. If a proper match regarding that price is available inthat market i.e. If the buy and sale rates match, then it implies that the deal instuck. If the suitable match is not found, the order gets stacked in the system

till a suitable counter order emerges and the transaction is closed at the point oftime. The members can easily exercise the various options available to them ona trading floor and when entering the order can place limit on either the numberor the higher order and accordingly the order would be matched at the best

price available. The member would also have the facility of canceling alloutstanding orders in one stroke if deemed necessary or he may choose theentire order to be carried out as one deal or in smaller lots. The identity of thetrading members entering orders in the system will be protected and will havedirect participation by the large player also without the fear of their orderinfluencing the state of the market.


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There will be a book entry transfer system for securities, which will operate justlike passbook system in a bank. Accounts will be maintained against eachmember, detailing the securities held in trading member's name. At the end ofeach trading day the Exchange computer will generate a report of matchedtrades on each trading member, which in turn would be received by eachtrading member and the money refundable /deliverable to the clearing agency.In order to expedite the settlement process, a depository is being establishedwhere securities, as and when sold and delivered to the clearing system, would

be transferred. Whenever the investor wishes to take the physical possession ofthe security for some reason, physical withdrawal of the security from thedepository will be permitted. Thus, through this system the trade transactionhas shown a tremendous increase both in value and volume. The investors getthe desired and the best rates, as the markets are more transparent andconvenient to trade.

PROCEDURE FOR DEALING AT STOCK EXCHANGES:

Trading on a stock exchange is officially done in the trading ring for a few hoursfrom 9.30 am to 3.30 pm trading before or after official hour is called curbstrading. In trading ring space is provided for specified and non-specifiedsections the members of their authorized assistants have to wear a badge orcarry with them identity cards given by the exchange to enter the trading ring.They carry a souda block book or confirmation memos duly authorized by theexchange and carry a pen will them. The stock exchange operations at floor

level are highly technical in nature. Non-members are not permitted to enterinto stock market. Hence, various stages have to be completed in executing atransaction at a stock exchange. The steps involved in the methods of tradinghave been given below:

The buying and selling at stock exchange is not allowed to outsiders. They have toapproach brokers who are members of the exchange and the dealings can only

be through them. The following procedure is followed for dealings atexchanges:

A. ELECTION OF BROKER: the first thing to be done is to select a brokerthrough whom the purchase or sale is to be made. The intending investor orseller may approach his bank for the purchase. The banks can appoint theirown brokers at exchanges and they contact for dealings on behalf of theircustomers. On a recommendation from eh bank the broker opens the client'saccount. The bank assures about the financial condition of the client.


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B. PLACING AN ORDER: after selecting the broker the client places an orderfor purchase or sale of securities. The broker also guides the client about thetype of securities to be purchased and the proper time for it. If a client is to sellthe securities then the broker tells him about the favorable time for sale. The

broker is told to purchase shares, their number and price to be paid. Sometimesa definite price is given on which the purchase is to be made, sometimes thetentative price is told, sometimes the minimum price to be paid is told etc, the

broker will try to make purchase as far as possible to the nearest price offeredby the client. The broker is giving some choice of bargaining. The same type ofchoice is given to the broker for selling the securities.

C. MAKING THE CONTACT: the trading floor of the stock exchange is dividedinto different parts known as trading posts. Different posts deal in differenttypes of securities. The authorized clerk of the broker goes to the concerned

post and expresses his intention to buy and sell the securities. A deal is struckwhen the other party also agrees. The bargain struck by outcry mentioning the

price and number of securities contracted by both the clerks. Both the paritiesin their notebooks note the bargain. The slop giving brief details of the bargainis put in a box for making announcement in the official price list for publicity.

D. CONTRACT NOTE: the buying and selling brokers prepare notes after theirmutual consent next day. The seller is sent the selling note and the buyer is sentthe buying note. The details of securities traded are given, mentioning theirnumber, price, etc.

E. SETTLEMENT: the settlement is made and means of delivering the sharecertificate along with the transfer deed. The transferor duly signs the transferdeed i.e. In the seller. It bears the stamp of the selling broker. The buyer thenfills up the particulars in the transfer deed. The spot dealing are settled there isfull. The selling broker hands over the transfer form an share certificate to the

buying broker after receiving the price. The settlement for ready delivery andforward contracts is done with a different procedure.

SETTLEMENT OF READY DELIVERY CONTRACTS:

The settlement in different stock exchanges is done between 3 to 7 days of thetransaction. If giving actual delivery of securities on receiving the price doesthe settlement it is called liquidation in full. In another method the dealings aresquared by the adjusting price difference only.

Settlement of forward delivery contracts:


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The forward delivery contracts are done for speculative purposes. Only the activeand broad market securities are traded in forward contracts. The settlement offorward contracts can be done in any of the three ways:

A. LIQUIDATION IN FULL: The Securities Are Delivered And Payment Is

Received Or Vice-Versa After Crossing All Intermediate Purchases And Sales.

B. LIQUIDATION BY PAYMENT OF DIFFERENCES: the purchases andsales are offset at the ruling price by paying or receiving the difference amount.The securities are not delivered but only the difference of prices contracted andcurrent prices are received or paid as the case may be.

C. CARRY OVER TO THE NEXT SETTLEMENT: when the buyer does notwant to settle the contract but wants to carry it to a future date then it is calledcarry over. The buyer will have to pay certain amount to the seller for this

concession and the amount paid is known as badla or contango charge.

DIFFERENT METHODS OF SETTLEMENT:

At present, any one of the following methods can make the settlement:

SPOT SETTLEMENT: Under This Method, The Delivery Of Securities AndPayment For Them Are Affected On The Date Of The Contract Itself Or OnThe Next Working Day.

WEEKLY SETTLEMENT: Under This Method, The Delivery Of Securities AndPayments For Them Are Settled Within A Time Span Of 7-14 Days.

ROLLING SETTLEMENT: each settlement being and conclude on the same dayi.e. On daily basis, the trading is trading day (t) + 5 i.e. Monday is the tradingday next Monday pay-in date. In case of non-delivery the securities will go forauction.

CLEARING HOUSE:

The exchange has set-up a clearing house to collect the securities from all themembers and distributor to each member, all the securities that are due to himin respect of every settlement. The whole of the operations of the clearinghouse is now computerized.


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Thus, trading on the stock exchange was officially done in the trading ring for afew hours from 9.55 am to 3.30 p.m .but now the opening bell will ring an hourearlier for Indian bourses. Trading will start at 9 am instead of the present 9.55

p.m the change in timing has become necessary as the settlement cycle will befurther shortened to t+1. This means pay-in of shares and funds will take placethe next day after trade. Since the back-office work of the brokering houses andclearing corporation will have to start early, to deal with the early settlement oftrades, trading will also have to end earlier. The change in timing is needed toenable the exchanges to calculate the margin of each trading member andcollect the upfront margins on the value-at-risk (vary) basis.

ONLINE TRADING PLATFORM:

STCI offers 3 different online trading platforms to its customers:

1. Easy Trade:

Easy Trade is a powerful and user friendly browser based online tradingwebsite for beginners. It provides unique integrated account which link

banking, broking, and demat accounts. Trader can get the latest stock quotes,unlimited access to trading history, current order status, access to all backend reports and data.

2. Advanced Trade:

Advance Trade is an Applet-based system, designed specially for activetraders. Advance Usec gives access to their traders to view live streamingquotes which enables them to keep track of real-time price movement.Multiple market watch, message window and trading window, all in onescreen help customers to track individual stocks and make timely tradeswhen investing online.

3. Super Trade:

Super Trade is an advanced, customizable online trading platform builtexclusively for active traders. It offers professional and complimentary toolswhich enable their user to view streaming, intraday, daily and weekly charts,

personalized quick stock quote lists and real-time updates.


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The online trading platform offers transactional convenience through linkage oftrading, demat account and bank account.

1.EQUITY TRADING - National Stock Exchange And Bombay Stock Exchange:

A. DELIVERY TRADING: Includes Those Transactions Where Purchase AndSale Actions Result In Delivery.

B. Margin trading: it refers to intra-day trading where in the customers take longbuy / sell short position in stocks with compulsory square up of the position onthe same day.

C. ANST: acquire now sell tomorrow, is a facility that allows the customers to sellshares against previous purchase made by them, however not yet delivered intheir demat account.

D. The customers can place market as well as limit order.

2. Derivatives trading:

A. Futures: the customers can trade in index and stock futures on the nationalstock exchange (NSE).

B. Options: under this, the customers can take up buy / sell position on index /stock options.

The unit also provides value added services to customers such as:

A. Arrangement to take orders for all products after market hours.

B. Call and trade on the telephone through the units customer service executive.

C. An access to latest portfolio tracker.


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Advantages of Online Trading:

The introduction of the internet has surprisingly changed our way of life as asociety. It has defined the way we do business and the way we correspond. Theinternet has opened many opportunities for online trading. The financial

industry revolves around the internet. Every thing is just a few clicks away.This makes online trading most convenient. But there are still investors who

prefer the old fashion way of offline trading and they mainly prefer offlinetrading for security reasons.

Internet has introduced a way for consumers to manage their money online. Not tomention, internet has transformed the way investment companies operate their

business and has made it easy for private investors to gain straight access to arange of different markets and online tools that were at one point only reserved

by the use of investment professionals. Consumer investing and online tradinghas dramatically changed over the last decade. Online trading dynamicallycontinues to be redefined. Services have expanded to include integratedmanagement of additional financial accounts. Not to mention, it hassubsequently expanded in conjunction with ground-breaking improvements tothe traditional trading interface, such as telephone interface systems.

Of course, online trading has many pros. There are several wonderful reasons toinvest online and consider online trading.

1. Money saving opportunities:the amount of money you save depends primarily on the online brokerage firmthat you choose. No two firms are the same. There may be differentregulations, similar to bank regulations. There are minimum deposits requiredthat must be maintained. As mentioned above, this will depend on the online

brokerage firm.

2. Instant online access:

you can gain instant access to your account, the value of your portfolio updatesimmediately before your eyes.

3. Enter online trades at anytime:

you can enter online trades at anytime and from anywhere. This is veryconvenient if you live in a different time zone than the country you are tradingin. Not to mention, it is especially fit for investors with busy schedules.

4. With online trading you are in charge, you are in control of your investments. Nosales pitches and no hassle. You decide where to invest your money.


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The demerits of online trading are:

Many banks make the process of opening a demat account a cumbersome one bymaking numerous enquiries about the customers as the process needs it.

The charges involved in opening a demat account are soaring. Even the otherassociated charges like transaction charge, statement charges, pledge chargesare very high.

It is also highly influenced by economic factors like recession, slowdown etcwhich can have a drastic impact on the investors.

Effect on off-line Trading business:

With the emergence of e-broking, which offers many benefits like, level playing

filled to all investors, comfort of the house, simplicity, low brokerage and valueadded services it could be possible for some of the offline trade to shift toonline trade. The proportion of online broking business compare to off line

broking is miniscule about less than 1%. The offline player would not beaffected unless the figure reaches a minimum of 8-10%. More importantly online broking is said to have brought in a whole new segment of investors.These are the hidden investors who did not have a dedicated broker.

Online trade has not started to eat the volumes of, off line business till now. But atthe same time it has created new set of clients for e.g., NRI's who were not

very active in the market due to lack of transparency and information, havemoved to use this facility, housewives are another new category, net savvystudents and retired persons are the next expected category. But those who getvalue added services from broker will continue to stay offline and those thatare like any other normal retail investors will have no hesitation to shift toonline trading. The fact is that over a few years we would see more non-

professionals getting to access to the market. E-broking has eaten the share ofoffline broking business especially into the sub broking where the sameinvestors used to go and get whatever services he provided at rate since they

would no longer be taken for a right, online trading is transparent.

Nevertheless, with all the convenience of online trading there are still investorswho prefer the old fashion way of offline trading. Offline trading has lost some

popularity but it is still the main form of investing. Offline trading offers manybenefits as well.


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1. The one benefit that an investor appreciates the most is that they are not alonewhen making investment decisions.

2. There are experienced and professional brokerage companies that handle theirinvestments for them.

3. Investors are not faced with the challenge of making these vital investmentdecisions; especially, if they do not have the experience necessary to make theappropriate investments.

4. Also, there is someone there to answer any questions that may cause concerns.

Not to mention, with offline trading mistakes are less likely to take place. No onewants to throw their money away or stand by and watch someone else throwtheir money away. It may be wise to hire a professional to assist you in making

the correct investment decisions if you feel you lack the knowledge necessary.

Other relevant information:

Key players in financial services industry:

1) ICICI securities ltd.: ICICI securities limited (I-sec) is a wholly owned investment-banking subsidiary of ICICI limited. ICICI is the only non-Japanese Asian financial institution tobe listed on the New York stock exchange (NYSE). ICICI securities was formed on 22nd Feb.1993, when ICICI's merchant banking division was spun off into a new company; ICICIsecurities today is Indias leading investment bank and one of the most significant players in the

Indian capital markets. ICICI brokerage services limited (IBSL) set up in March 1995;IBSL is a 100% subsidiary of I-sec. It commenced its securities brokerage


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activities in February 1996 and is registered with the national stock exchange ofIndia limited and the stock exchange, Mumbai. ICICI has started a websiteicicidirect.com which is the most comprehensive website, which allows you toinvest in shares, mutual funds, derivatives (futures and options) and other financial

products. ICICI has a large network of branches all over India.

Services offered: Merchant banking

Demat service

Stock broking

CRITERIA ICICI DIRECT

Demat a/c opening charges RS 750/-

Brokerage intra day, delivery 50P,75P

AMC(Annual Maintenance Charges) RS 500/-

Trading funding intra day, delivery 3-4 times of the available funds.

Interest rate 18% p.a.

Debit period T+2 DAYS

Mode of trading Both Online & Offline

Margin money -

Software installation charges -


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2) HDFC Securities ltd:

Housing development finance corporation limited is the leading financial companyin India. It has large network of branches all over India. HDFC securitieswhich is fully subsidiary of HDFC provides demat service.

HDFC and its subsidiary provides following services.

Demat service

Stock broking

Financial product distribution

Investment advisory services


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CRITERIA HDFC securities

Demat a/c opening charges Rs 799/-

Brokerage intra day, delivery 15p,50p

AMC(Annual Maintenance Charges) Nil

Trading funding intra day, delivery 10times,4 times

Interest rate -

Debit period T+ 2days

Mode of trading Both

Margin money 5000,10000

Software installation charges -


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3) Kotak securities ltd:

Kotak securities needs no introduction as one of the largest stock broking houses inthe country and a leading distributor of primary market offerings. Kotaksecurities limited is a joint venture between kotak mahindra bank and Goldmansachs, the international investment banking and brokerage firm.

Kotak securities is a corporate member of both the BSE and the NSE. It is also adepository participant with the national securities depository limited (NSDL)for trading and settlement of dematerialized shares.

Services offered:

Stock broking

Financial product distribution

Demat services

Investment advisory services


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CRITERIA Kotak securities .com

Demat a/c opening charges RS 550

Brokerage intra day, delivery 2.5P,25P

AMC(Annual Maintenance Charges) RS 30 per month

Trading funding intra day, delivery 7times,4 times

Interest rate 21%

Debit period T+2

Mode of trading Offline

Margin money Rs8000/-

Software installation charges _


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4) SBI cap securities ltd.

5) IDBI paisa builder:

CRITERIA SBI

securities .comDemat a/c opening charges RS 400

Brokerage intra day, delivery 0.15% 0.50%

AMC(Annual Maintenance Charges) Rs 400


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CRITERIA IDBI Paisa builder

Demat a/c opening charges RS 550

Brokerage intra day, delivery 0.05% 0.5%

AMC(Annual Maintenance Charges) 1st year free; Second year on Rs 350


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Research design:

Problem in hand: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 shareshas become a much faster and even process than trading with the assistance ofa physical broker. It provides for the assimilation of bank, broker, stockexchange and depository participants. This helps to get rid of the painstaking

procedure of investing in stock exchange. Today, if one wants to invest in stockmarket, he has to contact a broker on phone or meet him personally to placeorder.

Despite the advantages of dematerialization, the awareness levels among theinvestors relating to demat account is not adequate because of numerousreasons. The investors are not sufficiently responsive of the concept of demataccount and the various financial institutions providing such services.

This study involves understanding the various concepts of demat and analyzing theinvestment pattern of individuals in India and a study on analysis ofawareness among investors regarding on line trading and demat account

Objectives of the study:To increase the online penetration in the market through reach out to most possible

prospective population and training them for online trading.

To find the awareness of demat account among employed investors.

To discover the investment portfolio that the investors are looking forward todevote into.

To study the progress, performance, grievances and to suggest the remedial

measures.

Scope of the study:

Analyze the awareness level for online share trading / demat.

Analyze the investment pattern of individuals.


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Examined the peer group companies proving demat services - industry analysis

Data sources:

Primary data:

The required data was collected by way of telephonic interviews distribution ofquestionnaires to investors at random at place like BSE fort, railway stationsand to college students.

Secondary data:

The required data was collected from websites like

www.demataccount.com

http://www.dnb.co.in

http://www.ibef.org

http://timesofindia.indiatimes.com

www.nsdl.co.in

www.cdsl.co.in

www.sebi.gov.inhttp://www.rbi.org.in/scripts

http://www.bis.org/publ/bppdf/

Sampling method :

Sample is the small representative of the whole population. In this respective

project the sampling method was used was area sampling and conveniencesampling.

Sample unit:

Sample unit constitutes an investor who is employed, self-employed and residingin Mumbai


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Sample size:

A sample size of234 investors has been selected for the study out of the populationof all the investors in Mumbai.

Sampling interval:

The period in which the study was conducted was from 3rd may 2010 to 26th June2010

Contact method:

Investors were contacted by way of telephone, personal interviews and alsothrough e-mail.

Data collection method:

Questionnaires were distributed physically, personal interviews and telephonicinterviews were conducted.

Limitations of the study:

The study is done with time and resource constraints.

The study involves only 234 investors chosen at random which may not be the true

representative of the population. Hence cannot be generalized.

The data collected pertains to the sample behavior as on 3rd may 2010 to 26th June2010 which may not be consistent with time.

Data Analysis:The sample size of 234 variables which includes the variables onwhich telephonic interview, questionnaire and personal interview is performed.


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VARIABLES FREQUENCY PERCENTAGE

SEX

MALE

FEMALE

140

94

60%

40%

AGE

18-28

29-30

40-50

51-61

62-73

74 AND ABOVE

58

55

47

38

27

9

25%

24%

20%

16%

12%

3%

MARITAL STATUS

MARRIED

UNMARRIED

130

104

55%

44%

NATURE OF

OCCUPATION

SALARIED

SELF EMPLOYED

133

101

57%

43%

AWARENESS OF DEMAT

ACCOUNT

AWARE OF DEMATACCOUNT

UNAWARE OF DEMATACCOUNT

105

129

45%

55%

TRADER

REGULAR TRADER

NON REGULAR TRADE

98

136

42%

58%

TRADING

ONLINE TRADING 42 43%


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Percentage classification of demographic characteristic of the samples:

Data interpretation:During the research I have came across 234 individuals outof which 140 individuals were male and 94 individuals were female .wefound that male individuals are more inclined towards investing in sharemarket than female individuals.

Age wise classification :


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Data interpretation: All the 234 individuals are categories according to their age

and it was found that individuals in the age group between 18 28 are more risktolerant. They are more inclined toward investing in the shares and are alsointeresting in online trading.

Marital status of the samples:


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Data interpretation: It has been found out that married people (130) show less risktolerance than unmarried ones (104). It is not difficult to understand the reasons

behind this as most of the unmarried respondents are young, who have alreadyshowed a penchant for higher risk taking and many of the married respondents

belong to the higher age group brackets which have shown a tendency for lesserrisk tolerance. These unmarried individuals also had shown positive sign regardingonline trading.Classification according to Nature of occupation:


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Data interpretation: Out of all 234 individuals, 133 individuals are employed and

the rest 101 individuals are self employed. and it was found that self employedindividuals are very keen to invest in shares and they have also shown interest inonline trading. 101 employed individuals have shown less interest in investing instocks, reason behind such less interest may be due to limited finance in whichthey have to meet their financial obligations.Classification according to Awareness about Demat Account:


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Data interpretation: 105 individuals are aware about demat account out of 234individuals and the rest 129 are unaware of demat account. we can conclude that

there is the huge potential lies in the market which are unaware about demataccount.

Classification of TRADER:


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Data interpretation: Out of 234 individuals, 98 individuals are trader mean whotrades in the stock market. These 98 individuals use both the methods like online

and offline trading for investing in stock market. Rest 136 individuals are nontraders means they do not invest in the stocks. We can conclude that there are huge

potential lies in the market and by putting efforts we can convert this potentialmarket into customers who actually trades in the stock market.

Classification of TRADING:


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Data interpretation: Out of 98 individuals, 42 individuals uses online method forinvesting in shares and rest 56 individuals are still stick to the traditional methodi.e. offline method for investing in shares.


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Analysis of bank broking charges:

Demat opening charges of HDFC securities is highest at Rs.799 whereaslowest at Rs 400 for SBI Cap securities.

Intra-day broking charges of ICICI is highest at 0.50%, whereas lowest forKotak securities at 0.025%.

Delivery charges for ICICI are highest at 0.75%and lowest for Kotaksecurities at 0.25%.

AMC (Annual Maintenance Charges) for ICICI is highest at Rs.500,whereas AMC charges for HDFC is Nill and AMC charges for IDBI paisa

builder is Free for 1 year and for second year it is Rs.350 and so on.

Analysis of value pack: In the project work it was found that value pack denomination to Rs 2500

was quite successful as compared to the other value pack of Rs 5000 and Rs10000.

Investors has shown interest in value pack of denomination to Rs 2500, asthey find it is the affordable amount to acquire knowledge about sharemarket and to starts investing in shares.

Value pack denomination of Rs 5,000 and Rs 10,000 were not so successfulas compared to Rs 2500 , as investors were could not afford to pay theadvanced brokerage of such high denomination.

It is beneficial service to investors provided by standard chartered STCIcapital markets ltd. By availing the value pack service the investors canreduce their brokerage charges. The investor has option of reducing his

brokerage rate by paying advance brokerage to company to avail thisservice. These advance brokerage option is available in denomination of2500, 5000 and 10,000. It depends upon the customers volume oftransaction he does. Below is the schedule of upfront fees deposit and

brokerage charges at different denominations.


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Finding:

The awareness levels among investors regarding demat account and relatedservices are moderate.

There is a huge potential for online share trading in Mumbai

Online share trading and demat services are considered to be a convenience factor.

The investors are mainly influenced to involve in online trading on their personalchoice as they are rational, well - informed and decisive.

The investors are not adequately aware of the brokerage amount charged in variousinvestment options.

Television and internet are the most important sources of information for theinvestors regarding demat services.

Quality of service is the most influential aspect of a bank / broking agency thatappeals the investor.

Suggestions:

The SEBI must reduce the statutory norms / requirements necessary to open ademat account in order to make it more accessible, hassle free andunderstandable.

Introduction of more private players can help to increase the awareness levelsregarding demat and online trading services.

The demos provided by the banks / brokerage agencies should be increased as thecurrent levels do not educate the customers adequately.

More number of workshops, seminars, awareness programs, etc. must be

conducted regarding demat services and online trading and their benefits so asto bring up the awareness levels and canalize the potential investment.

Since more and more companies are planning to enter into online trading, qualityof service should be continuously updated.


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Online professional assistance will be helpful to investors. it will increase thecustomer base in online because it will be helpful to those who are not verymuch aware of the market trends.

Target the new hidden customers, for whom the net can bring out convenience and

comfort like NRI, women, young executives, professionals etc.

Learnings :

I have learnt how the stock market functions every day

My convincing power has improved as I have to acquire customer bycommunicating with them and make sure that they take a demat accountfrom me.

I had a grooming session in which my industry guide had taught me how todeal with customer.

Every Saturday we used to have a industrial faculty lecture on variousindustry related topics and their experiences and I have learn a lot from them

They used to show a motivational videos of Shiv Khera which hadmotivated me in a positive manner.

CONCLUSION:

Online trading is the new concept in the stock market. In India, online trading is

still at its infancy stage. Online trading has made it easy to trade in the stock

market as now people can trade while sitting at their home. Now stock market is

easily accessible by the people. There are some problems while doing the trade

through the internet. Major problem faced by online trader is that the investors are

loyal to their traditional brokers, they rely upon the suggestions given by their

brokers. Another major problem is that the people don't have full knowledge

regarding online trading. They find it difficult to trade themselves, as a wrong

entry made by them, can bring them huge losses.

Nevertheless to say that online trading has the bright future as the percentage of the

trade done through online trading is increasing day by day.


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BIBLIOGRAPHY

www.demataccount.com

http://www.dnb.co.in

http://www.ibef.org

http://timesofindia.indiatimes.com

www.nsdl.co.in

www.csdl.co.in

www.sebi.gov.in

http://www.rbi.org.in/scripts

http://www.bis.org/publ/bppdf/


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QUESTIONNAIRE

1) Are you interested in investing in share market?

YES __________ NO____________

2) Which broking banking bank do you use for trading?a) ICICI b) SBI

c) Kotak d) SCB

3) For how long you have been trading?(a) 1 year (b) 2 year

(c) 3 year (d) 4 year

4) What is the nature of your occupation?

Salaried____________ self Employed______________

5) Do you aware of Demat account and online trading?

Yes_______ No_____________

6) Are you interested in multiplying your savings through investment ifproper guidance given to you for investing in shares

_________________________________________________

NAME

AGE

SEX

MARITAL STATUS

OCCUPATION

CONTACT NO.

Email ID


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7) If you are offered less brokerage charges and better service than yourrespective firm what would you do?

_________________________________________________

Documents

Vikas Final (2)