COMPANY PROFILE

India Infoline Ltd A group of professionals formed a company called Probity Research & Services Pvt Ltd. The name was later changed to India Info line Ltd. The objective was to provide unbiased and independent information to market intermediaries and investors. The company established on October 18, 1995 as Probity Research & Services. Launched Internet portal www.indiainfoline.com in May 1999. Commenced distribution of personal financial products like mutual Funds and RBI bonds in April 2000. Launched online trading in shares and securities branded as www.5paisa.com in July 2000. Started life insurance agency business in December 2000 as a Corporate Agent of ICICI Prudential Life Insurance. Became a depository participant of NSDL in September 2001. Launched stock messaging service in May 2003. Acquired commodities broking license in March2004. Launched portfolio management services in August 2004. Listed on NSE and BSE on May 17, 2005. Acquired NBFC license in May 2005. Acquired 75% stake holding in Money tree Consultancy services, which is a distributor of mortgages and other Loan products, in October 2005. Acquired 100% equity of March Mont Capital Advisors Pvt Ltd in December 2005 through which we have ventured into Merchant Banking. DSP Merrill Lynch Capital subscribed to convertible bonds aggregating Rs.80 crores in December 2005. Their current stake in India Info line is a little over 14% as on 31st March 2007. Bennett Coleman & Co Ltd (BCCL) invested Rs.20 crores in India Infoline by way of preferential allotment in December 2005. Became a depository participant of CDSL in June 2006. Merger of India Infoline Securities Private Limited with India Infoline Limited in January 2007. Entered into an alliance with Bank f Baroda for Baroda e-trading in February 2007. IRDA license for Insurance broking in April 2007.

ONLINE TRADING
Gone are the days of trading on the floor. Technology has changed the landscape of the stock, markets. The look of the stock exchanges has undergone a metamorphic change in the recent years. Prior to online trading regional stock exchanges were playing a very important role in capital markets, as they were local investors. Regional SE, which were unable to interact with other SEs started developing this own screen based trading and connecting to the other scrips, which were not available with them. This also helped in accessing the quotes and other market information from other stock exchanges, which proved vital in the functioning of the system as a whole. REASONS FOR THE INTRODUCTION OF ONLINE TRADING: a) Lack of transparency in the manual trading system. Lesser scope for manipulation, speculation and malpractices by Brokers/member in online trading system when compared to the manual system. c) d) To avoid the procedural deals in the manual trading. To reduce cost.

b)

RESEARCH METHODOLOGY
The data collection methods include both the primary and secondary Data.
1. Primary Data:

This method includes the data collected from the personal discussions with the authorized clerks and members of the company.
2. Secondary Data:

The secondary data includes the data from internet, news papers , and magazines of the NSE, BSE, INDIAINFOLINE and different books relating to the issues of this study. Period of study: Period of study includes a period of 45 Days only. In the first spell of the period data collection process regarding on-line trading has been carried on. In the second spell analysis of the data has been worked out.

NEED FOR THE STUDY:

SEBI in Sep 1996 has issued Guidelines to the Stock Exchange to go on-line trading procedure buy the end of the year 1996. Following its directivities INDIAINFOLINE has installed the on-line trading system as on July 2000. The major need for this study is to know the effectiveness of the on-line system in comparison with the outcry or mark trading. To study its advantages and recommendations for beneficial and effective use of the system.

OBJECTIVES OF THE STUDY:

The objectives of the study include the study of the below mentioned aspects: 1) To know the on-line screen based trading system adopted by INDIAINFOLINE. 2) To know about the latest and future developments in the IIL trading system. 3) To know each and every term of the IIL trading procedures. 4) To know about DEMAT in the India Infoline for easy transfer.

LIMITATIONS OF THE STUDY:

Brokers are not providing complete information regarding on-line trading.

 Time is to be considered as major constraint.

ANALYSING FIVE DIFFERENT COMPANIES AND INDIAINFOLINE, WHICH ARE PARTICIPATING IN ONLINE TRADING
In capital markets, we have both public and private sectors it means that there are government and private individual participating in capital markets. For, this the private individual are competing, between themselves to provide good quality service at the possible minimum cost than other private individuals or companies. Manual trading has been replaced by online trading, there are several companies offering this trading, but for our study we have taken six companies and were are comparing between them, so to check which company is better than other and company provides best service to people or investors. For this purpose we have taken six companies they are: 1) India Info line Securities 2) Kotak Securities 3) ICICI Securities 4) HDFC Securities 5) Share khan. 6) Investment.

FINDINGS Online trading is more powerful & advantageous than manual trading. The software or the systems used in online trading should be advanced and the persons who operate should have minimum knowledge.

 Tips are available for trading online and invest wisely. So that the investor can avoid the fraud. It should increase the speed of executing the orders. SUGGESTIONS I suggest the company to take steps to educate investors about their rights and duties; try to increase investors confidence. For the awareness of on-line trading process it is necessary to conduct various programs in different T.V channels. It is necessary to explain the benefit of the on-line trading to the investors. To explain the investors how to work on DEMAT services. Try to explain them how fraud will take place so that they can be alert and they can take necessary steps to avoid the frauds. CONCLUSIONS Online trading is more powerful & advantageous than manual trading. If online trading is done with proper infrastructure and software in place then it facilitates smooth trading. The software or the systems used in online trading should be advanced and the persons who operate should have minimum knowledge or if they are very well versed about the functioning of the system then it will be helpful in smooth functioning of online trading.Due to changes in the technology HSE has changed its trading activities into online trading system. So that transaction will be performed efficiently.

COMPANY PROFILE
A group of professionals formed a company called Probity Research & Services Pvt Ltd. The name was later changed to India Info line Ltd. The objective was to provide unbiased and independent information to market intermediaries and investors. The company established on October 18, 1995 as Probity Research & Services. Launched Internet portal www.indiainfoline.com in May 1999. Commenced distribution of personal financial products like mutual Funds and RBI bonds in April 2000. Launched online trading in shares and securities branded as www.5paisa.com in July 2000. Started life insurance agency business in December 2000 as a Corporate Agent of ICICI Prudential Life Insurance. Became a depository participant of NSDL in September 2001. Launched stock messaging service in May 2003. Acquired commodities broking license in March2004. Launched portfolio management services in August 2004.

Listed on NSE and BSE on May 17, 2005. Acquired NBFC license in May 2005. Acquired 75% stake holding in Money tree Consultancy services, which is a distributor of mortgages and other Loan products, in October 2005. Acquired 100% equity of March Mont Capital Advisors Pvt Ltd in December 2005 through which we have ventured into Merchant Banking. DSP Merrill Lynch Capital subscribed to convertible bonds aggregating Rs.80 crores in December 2005. Their current stake in India Info line is a little over 14% as on 31st March 2007. Bennett Coleman & Co Ltd (BCCL) invested Rs.20 crores in India Infoline by way of preferential allotment in December 2005. Became a depository participant of CDSL in June 2006. Merger of India Infoline Securities Private Limited with India Infoline Limited in January 2007. Entered into an alliance with Bank f Baroda for Baroda e-trading in February 2007. IRDA license for Insurance broking in April 2007.

Management & Board of Directors

Mr. Nirmal jain Mr. R. Venkataraman Mr. Sat Pal Khattar Mr. Sanjiv Ahuja Mr. Nilesh Vikamsey Mr. Kranthi Sinha Chairman & Managing Director Executive Director Non - Executive Director Independent Director Independent Director Independent Director

Products and Services:

We are a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting-edge technology.

Equities:
Indiainfoline provided the prospect of researched investing to its clients, which was hitherto restricted only to the institutions. Research for the retail investor did not exist prior to Indiainfoline. Indiainfoline leveraged technology to bring the convenience of trading to the investors location of preference (residence or office) through computerized access. Indiainfoline made it possible for clients to view transaction costs and ledger updates in real time.

PMS
Our Portfolio Management Service is a product wherein an equity investment portfolio is created to suit the investment objectives of a client. We at Indiainfoline invest your resources into stocks from different sectors, depending on your risk-return profile. This service is particularly advisable for investors who cannot afford to give time or don't have that expertise for day-to-day management of their equity portfolio.

Research
Sound investment decisions depend upon reliable fundamental data and stock selection techniques. Indiainfoline Equity Research is proud of its reputation for, and we want you to find the facts that you need. Equity investment professionals routinely use our research and models as integral tools in their work. They choose Ford Equity Research when they can clear your doubts.

Commodities
India info lines extension into commodities trading reconciles its strategic intent to emerge as a one-stop solutions financial intermediary. Its experience in securities broking has empowered it with requisite skills and technologies. The Companys commodities business provides a contra-cyclical alternative to equities broking. The Company was among the first to offer the facility of commodities trading in Indias young commodities market (the MCX commenced operations only in 2003). Average monthly turnover on the commodity exchanges increased from Rs 0.34 bn to Rs 20.02 bn. The commodities market has several products with different and non-correlated cycles. On the whole, the business is fairly insulated against cyclical gyrations in the business.

Mortgages
During the year under review, Indiainfoline acquired a 75% stake in Moneytree Consultancy Services to mark its foray into the business of mortgages and other loan products distribution. The business is still in the investing phase and at the time of the acquisition was present only in the cities of Mumbai and Pune. The Company brings on board expertise in the loans business coupled with existing relationships across a number of principals in the mortgage and personal loans businesses. Indiainfoline now has plans to roll the business out across its panIndian network to provide it with a truly national scale in operations.

Home Loans
Get expert advice that suits your needs Loan against residential and commercial property Expert recommendations Easy documentation Quick processing and disbursal No guarantor requirement

Personal Loans
Freedom to choose from 4 flexible options to repay Expert recommendations Easy documentation Quick processing and disbursal No guarantor requirement

Invest Online
Indiainfoline has made investing in Mutual funds and primary market so effortless. All you have to do is register with us and thats all. No paperwork no queues and No registration charges.

INVEST IN MF
Indiainfoline offers you a host of mutual fund choices under one roof, backed by in-depth research and advice from research house and tools configured as investor friendly.

APPLY IN IPOs
You could also invest in Initial Public Offers (IPOs) online without going through the hassles of filling ANY application form/ paperwork.

SMS
The trader of today, you are constantly on the move. But how do you stay connected to the market while on the move? Simple, subscribe to India Info lines Stock Messaging Service and get Market on your Mobile! There are three products under SMS Service: Market on the move. Best of the lot. VAS (Value Added Service)

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INSURANCE
An entry into this segment helped complete the clients product basket; concurrently, it graduated the Company into a one-stop retail financial solutions provider. To ensure maximum reach to customers across India, we have employed a multi pronged approach and reach out to customers via our Network, Direct and Affiliate channels. Following the opening of the sector in 1999-2000, a number of private sector insurance service providers commenced operations aggressively and helped grow the market. The Companys entry into the insurance sector derisked the Company from a predominant dependence on broking and equity-linked revenues. The annuity based income generated from insurance intermediation result in solid core revenues across the tenure of the policy. Wealth Management ServiceImagine a financial firm with the heart and soul of a twoperson organization. A world-leading wealth management company that sits down with you to understand your needs and goals. We offer you a dedicated group for giving you the most personal attention at every level.

NEWSLETTERS
The Daily Market Strategy is your morning dose on the health of the markets. Five intraday ideas, unless the markets are really choppy coupled with a brief on the global markets and any other cues, which could impact the market. Occasionally an investment idea from the research team and a crisp round up of the previous day's top stories. That's not all. As a subscriber to the Daily Market Strategy, you even get research reports of India Infoline research team on a priority basis.

The India infoline Weekly Newsletter is your flashback for the week gone by. A weekly outlook coupled with the best of the web stories from India infoline and links to important investment ideas, Leader Speak and features is delivered in your inbox every Friday evening.

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INDIA INFO-LINE DISTINGUISHED ITS BUSINESS THROUGH THE INTERPLAY OF KNOWLEDGE AND TECHNOLOGY: Complete solution:
The Company provides a complete - advice to execution solution facilitated by information and advice on likely commodity trends in the Indian and international environment.

Technology:
The Company has extended the trading terminal to the investors home/workplace reinforced with real-time commodity information and ledger position.

Rates:
The Company harnessed technology to offer services at among the lowest rates in the business. Membership: The Company widened client reach in trading on the domestic and international exchanges.

Key Features
Enjoys memberships with the MCX and NCDEX, two leading Indian commodities exchanges Recently acquired membership of the DGCX Multi-channel delivery model, making it among the select few to offer online as well as offline trading facilities Extended commodity trading to retail investors, among the few Indian financial intermediaries to do so Online business at 80% of revenues dominates commodities trading revenues Provides regular commodity updates pertaining to the Indian and international environment

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INDIA INFO LINE LTD

India Info line Ltd is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). The India Info line group, comprising the holding company, India Info line Ltd and its subsidiaries, straddles the entire financial services space with offerings ranging from Equity research, Equities and derivatives trading, Commodities trading, Portfolio Management Services, Mutual Funds, Life Insurance, Fixed deposits, GoI bonds and other small savings instruments to loan products and Investment banking. India Info line also owns and manages the websites, www.indiainfoline.com and www.5paisa.com .

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India Info-line Ltd, being a listed entity, is regulated by SEBI (Securities and Exchange Board of India). It undertakes equities research which is acknowledged by none other than Forbes as 'Best of the Web' and 'a must read for investors in Asia'. India Infoline's research is available not just over the internet but also on international wire services like Bloomberg (Code: IILL), Thomson First Call and Internet Securities where it is amongst the most read Indian brokers. Its various subsidiaries are in different lines of business and hence are governed by different regulators. The subsidiaries of India Infoline Ltd are:

INDIA INFOLINE SECURITIES PVT LTD

India Infoline Securities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged in the businesses of Equities broking and Portfolio Management Services. It holds memberships of both the leading stock exchanges of India viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE). It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. A SEBI authorized Portfolio Manager; it offers Portfolio Management Services to clients. These services are offered to Clients as different schemes, which are based on differing investment strategies made to reflect the varied risk-return preferences of clients

INDIA INFOLINE COMMODITIES PVT LTD

India Infoline Commodities Pvt Ltd is a 100% subsidiary of India Infoline Ltd, which is engaged in the business of commodities broking. Our experience in securities broking empowered us with the requisite skills and technologies to allow us offer commodities broking as a contra-cyclical alternative to equities broking. We enjoy memberships with the MCX and NCDEX, two leading Indian commodities exchanges, and recently acquired membership of DGCX. We have a multi-channel delivery model, making it among the select few to online as well as offline trading facilities.

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INDIA INFO-LINE DISTRIBUTION CO LTD (IILD)

India Infoline.com Distribution Co Ltd is a 100% subsidiary of India Infoline Ltd and is engaged in the business of distribution of Mutual Funds, IPOs, Fixed Deposits and other small savings products. It is one of the largest 'vendor-independent' distribution houses and has a wide pan-India footprint of over 232 branches coupled with a huge number of 'feet-on-street', which help source and service customers across the length and breadth of India. Its unique value proposition of free doorstep expert advice coupled with free pick-up and delivery of cheques has been met with an enthusiastic response from customers and fund houses alike. Our business has expanded to include the online distribution of mutual funds, wherein users can view and compare different product offerings and download application forms which they can later submit to the product provider. Mortgages & Loans IILD has also entered the business to distribution of mortgages and loan products during the year 2005-2006. The business is still in the investing phase and we plan to roll the business out across its pan-Indian network to provide it with a truly national scale in operations.

INDIA INFO LINE INSURANCE SERVICES LTD

India Info line Insurance Services Ltd is also a 100% subsidiary of India Info line Ltd and is a registered Corporate Agent with the Insurance Regulatory and Development Authority (IRDA). It is the largest Corporate Agent for ICICI Prudential Life Insurance Co Ltd, which is India's largest private Life Insurance Company.

INDIA INFO LINE INVESTMENT SERVICES LTD

India Info line Investment Service Ltd is also a 100% subsidiary of India Info line Ltd. It has an NBFC license from the Reserve Bank of India (RBI) and offers margin-funding facility to the broking customers.

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INDIA INFOLINE INSURANCE BROKERS LTD

India Info-line Insurance Brokers Ltd is a 100% subsidiary of India Info line Ltd and is a newly formed subsidiary which will carry out the business of Insurance broking.
We have applied to IRDA for the insurance broking license and the clearance for the same is awaited India Info-line Insurance Brokers Ltd is a 100% subsidiary of India Info line Ltd and is a newly formed subsidiary which will carry out the business of Insurance broking. We have applied to IRDA for the insurance broking license and the clearance for the same is awaited

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ONLINE TRADING

INTRODUCTION:
Gone are the days of trading on the floor. Technology has changed the landscape of the stock, markets. The look of the stock exchanges has undergone a metamorphic change in the recent years. Prior to online trading regional stock exchanges were playing a very important role in capital markets, as they were local investors. Regional SE, which were unable to interact with other SEs started developing this own screen based trading and connecting to the other scrips, which were not available with them. This also helped in accessing the quotes and other market information from other stock exchanges, which proved vital in the functioning of the system as a whole.

REASONS FOR THE INTRODUCTION OF ONLINE TRADING:

e) Lack of transparency in the manual trading system. Lesser scope for manipulation, speculation and malpractices by Brokers/member in online trading system when compared to the manual system. g) h) To avoid the procedural deals in the manual trading. To reduce cost.

f)

MAIN 0BJECTS FOR THE INTRODUCTION ON ONLINE TRADING:

Facilitate easy surveillance so that theres less scope for speculation. Provide the investor with best possible facilities and services. Bring in transparency in the operation of the exchange. NSE terminals also. Simplify trading procedures and make them fully automates. Facilitate easier transaction processing To make the exchange more competitive by expanding its operating Jurisdiction lending to participation in the Inter Connected Market System (ICMS) along with other regional stock exchanges there by enabling the members to trade in large volu

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ONLINE TRADING IN INDIAINFOLINE:

The online trading is simply defined as dealing securities on net. In online trading system, fro a single location anywhere, can service investors across the country. Until July 2000, the trading on the INDIAINFOLINE was system of trading on the floor (trading ring). based on open out cry

Those interesting in buying and selling a On

scrip/share had to contact a jobbers (broker) who would go to the trading ring and make physical gestures, inviting buy/sell quotes in the trading session from 11.30a.m. To 03.30p.m. acceptance of this quote by another jobber, the order was executed. The serious deficiencies, which characterized. The out cry system led to the introduction of online trading on July 2000. Online trading of the online screen based/computerized trading known as India Infoline Online Securities Trading system to cope with the growing volume of business, ensure transparency in trading, eliminate inherent flawed transaction for trading, eliminate inherent flawed transaction for investor protection and fact the growing competition.

How Many Online Centers through the World?

The art of estimating how many online centers throughout the world are is an inexact one at best. Surveys abound, using all sorts of measurement parameters. However, from observing many of the published surveys over the last two years, here is an educated guess as to how many are online worldwide as of September 2005. And the number is 955.6 million. World Total Africa Asia/Pacific Europe Middle East Canada & USA 955.6 Million 9.93 Million 295.20Million 301.205Million 8.02Million 182.67Million

FUNCTIONING OF 5 PAISA-VECTOR:
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The system:
The software behind the 5 PAISA in VECTOR (Versatile Engine for Centralized Trading & Online reporting), a proven product developed by CMC Ltd. To implement fully automated trade execution system. The system is built around a central computer, which is called central trading system (CTS) placed at the exchange. The brokers interact with their customers/clients through the broken work stations (BWS) other users of the 5 PAISA include surveillance department, which is also connected to the network through its own station called the surveillance work station (SWS).

Objectives:
The VECTOR system has been developed with a view to achieve the following objectives: 1) Reduced & eliminate, if possible, all the operational inefficiencies in the manual system. 2) Increasing the trading capacity of the exchange. 3) Ensure transparency, eliminate on matched trades & delayed reporting. 4) Promote fairness and speedy matching. 5) Provide for online& offline monitoring, control & surveillance of the market. 6) Ensure smooth market operations using technology while retaining the flexibility of conventional trading practices. 7) Eliminate inherent flawed transaction & ensure investor protection. 8) Consolidate traders data a & interface with clearing & settlement 9) Provide brokers with their data on electronic medium to interface with the brokers office system. 10) To face stiff competition from other stock exchanges.

OVERVIEW OF THE VECTOR SYSTEM:

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The VECTOR system has been developed to computerize the trading activity of the broker as well as some of the allied activities of SE relating to the trading function. In the computerized scenario, the brokers/traders with in their own office premise and send their, orders, negotiate deals, in-house deals, and auction orders etc., to the CTS using BWS. The best bid and best offer (Based to price and time priority). In the market can be known from what is known as BBO (Best Bid Offer) for each of scrip. The system provides that, a particular broker would buy and sell his orders at the rate at which he buy or sell. The computer would match the buy order of the broker with the best order of the other. It would allot a time frame for each order priority basis. The buy and sell orders placed by the price on the market for that scrip at that time a subsequent to matching, trade confirmation are send to the respective work station, which can be printed online. News feeds from other SEe also received at the CTs and broadcast to the entire user workstations, news related to Board meetings, rights/Bonus/Dividend Declarations, Record Dated, Book closure data, financial resuts, and other scrip r elated information, SE news, political and other will be received and entered by the market operation Departments and broadcast to all the user workstations. Similarly, the prices of various scripts in the stock e exchange scan be made available using the VECTOR software in the form of news feeds to be passed on to respective agencies/firms.

TRADING SESSIONS:
THE TRADING TIMINGS ON THE FLOOR OF THE EXCHANGE ARE FROM 10.00 a.m. to 3.30 p.m. on all weekdays from Monday to Friday. This is the central trading session where quotes & orders would continuously come to CTs from the BSWs. Based on the parameters for the market, scripts, brokers, set by market 0perations department, orders would be executed.To recollect, under the outcry mode of trading the timings were from 11.30 a.m. to 02.30 p.m.

Broker Work Station (BWS):

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Broker workstations are the interface points between the broker & his customer/client. In other works, the brokers interact with these clients through the BWS the Best Bid & offer, the least traded price, the days opening prices, and previous days closing pr prices. bus. This may include the test of top n gainer/looser for a day, trader wise &/or scrip-wise net position, client wise net position, top n scripts by volume/value market capitalization etc. The BWS has powerful profiling features, which enable each trader to format his own screen layouts as is convenient. Profiles may be set at BWS by the individual user for scripts that he is interested in watching, columns of information available etc. Highest & lowest prices in a particular period, traded volumes will be available continuously on being queried. Other information will also be available by giving a query to the

UNIQUE FEATURES OF BWS

The BWS has a unique feature which facilities opening of multiple windows & different panes on the BWS screen. BWS has multiple screens for order entry, quote entry, display of pending orders etc. when many windows are opened on the screen at the same time; they overlap & cause operational inconvenience. The screen space is to be displayed. BWS provides for multi pages i.e. one flip between different pages (like switching television channel) & watch different set of screen windows. Thus the screen space is utilized at its optimum & at the same time maximum possible information is displayed.

Orders:
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Orders can be entered into the system either one at a time or in a batch Moze. The submitted order will be accepted at the CTs after validation. If found invalid, for any reason the order is returned back to the BWS with appropriate error message. If & when accepted at the CTs, it will be added to the pending order book. The order will then be taken up for matching. If it is buy order, the system tries to find a sell order, which fits the requirements of the buy order when. When such a match is found, a trade gets executed. Each trade involves two brokers or respective traders who sent the order. Both these traders are informed of the trade getting executed at their respectively BWS. AT the BUS the trade is added to the local trade book, & the pending quality diseased by the trade quantity in the local pending order book.

The orders are of two types:

a) Limit order: - A limit order is received at CTS & kept on hold fill it funds a match. The retention period can be till end of date or till end of settlement, which ever is earlier. AT the end of the day, pending orders that fall with in the criteria removal will be cancelled from the CTs. b) Market Order: - For a market order, an immediate match is sought. Market Order will not be executed if the price at which the trade could be executed deviates from the BBO price beyond the market order protection percentage of limit for the scrip as specified by the BWS.

IMPACT OF ONLINE TRADING ON THE MARKET:

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1) ON THE NUMBER OF TRANSACTIONS:

The number of transaction has increase considerably after introduction of the online trading system. The factor of influence could be: a) The case of operation from the point of view of both the members and the investors. b) Increase in the confidence of the investors because the online trading system Virtually removed all malpractice by the members. c) Facilities better monitoring of the market by the market operation department d) The daily that the best price is achieved in buying and selling

2) VOLUME OF TRADING:
From the fact that the number of transactions has increased dramatically, it is almost apparent that the volume of trading would have increased. The almost apparent can be brought in the facilities to breaking of bunch of shares in a transaction into the most optimal combination of selling or buying. This is the best BID and Best offer option of the 5 PAISA.

3) NUMBER OF MEMBERS PARTICIPATING:

The introduction of online trading enabled traders to do comfortable sitting in their respective offices and doing the trading in such a mode where technology provides a virtually unlimited arena, more members in the trading owing to this these has been a dramatic increase in the number of traders from 100 to 200.

4) TURNOVER:
The turnover of the both the company and the traders have gone up. The increase in turnover would bring in the expected return and soon could prove to justify the investment made in the 5 PAISA.

5) ON THE SHARE PRICES:

Automation of the trading process would not have any impact on the price of a share. The share price is usually influenced by the socio-political & economic variables.

6) OTHERS:
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From the traders point of view, following could be benefits accrued with the 5 PAISA: a) Transparency of the system. b) Less number of the people needs to do transactions. c) Valid till day valid still settlement facilityu8 greatly enhanced the efficiency of the traders. d) Deskwork reduces to minimum e) No need to be physically present in the SE & do trading. participate in the trading from the comfort of their own offices. f) Free & perfect information is available to all the members & investors. Which was not possible earlier in the outcry system. The members can

ADVANTAGS OF ONLINE TRADING:

Many customers, who have chosen to trade shares online today, had at one point of time been trading through offline brokers. After realizing the advantages of trading shares online, they have switched over to online trading now. However, before choosing an online trading site, all these sites should be compared in order to form a decision.

Advantages:
1) Online trading has made it possible for any one to have easy and efficient access to more reports and charts than was previously possible if one when to brokers office. Thus, we have access to a lot more information online to self teaches ourselves. 2) It eliminates the risk of bad deliveries, which in turn eliminates all costs and wastage of time associated with follows up for rectification. 3) This reduction in risk associated with bad delivery has lead to reduction in brokerage to the e extent of 0.5% by quite a few brokerage firms. 4) Screen based training facilitates the investor to keep a track of the transaction from the source to the end. He can punch in the orders and see the results a t the bottom of the screen. Thus, one can get instant trade confirmation.

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5) Online trading has left room for smaller organization to complete with multinational organization, since size is no longer a legit issue. Being online doesnt identify the size of any particular organization. 6) Online trading has allowed companies to locate themselves where they want, as physical location is not an issue any more. Companies can establish themselves according to their gains and losses, for instance, where tax (sales and value-added taxes) is best suited to them. 7) Online trading gives control to individual and they can exercise it over their accounts thus comprehend what is gong on they trade. It is like going back to school and reeducating oneself on how to trade online. 8) Individuals benefit by saving comparatively a lot more hen trading online as the cost per trade is less. 9) Individuals can invest in a variety of products, unlike earlier when people bought bonds, mutual fund, and stocks, for long-term basis. Now they can invest in stocks, and index options, mutual funds, individual, government, corporate, municipal bonds, various types of IRA account, mortgages and even insurance. 10) Online trading has made it possible for one to find investment options that were not available in regular basis, like off beat net stocks, eccentric unique things and trading in global market

DISADVATNAGES OF ONLINE TRADING:

The ease and speed of online trading can give the investor a false sense of security and encourage him to trade more frequently without paying and heed to market basics like, reaching a company ore knowing the risk he is going to assume. The concept of chat room, which has become very popular with the investors, may provide them with misleading information. Chat room participants are often paid to highlight certain stocks.

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 Online trading is not always instantaneous. In a rapidly changing market, Orders may not get executed at the price shown on the computer screen. This is because even a nanosecond delay can put one out of the race for that particular stock at that particular price. Delay in execution unusually arise due to various technological choke points like the

internet slowing down due to heavy traffic or if the modem, computers and internet service providers (ISP) is malfunctioning. If the investor does not factor in these technology lags while entering into a volatile market, he may suffer heavy losses. The investor should formularize himself with the order entry screen and the software provided to them. Any mistakes made while inputting an order can cause him significant financial loss. Moreover, he will be responsible for any losses caused, he become liable for payment of securities. Active trading is dependent upon a number of specialized software systems. Disruption or failure of any of ht electronic systems utilized may leave the investor with an open position at which time losses can occur.

Customers trading on-line may have difficulties accessing their accounts due to high
Internet traffic or because of system limitations. Customers trading through respective online firms.

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LATEST DEVELOPMENTS IN THE STOCK MARKETS Internet Based Trading: In IBT conventional stock exchanges use the net as medium for communication client through broker websites may serve a variety of functions from allowing full trading through the website to features like online stock quotes information & analysis etc. Securities & IBT has recently allowed Internet trading in a limited form. The SEBI committee on internet based securities trading & services has allowed the internet to be used as an order routing system through registered stock brokers on behalf of clients for execution of the trade. Trading on the Internet has opened new visitors & opportunities for Retail investors. Now the information on securities is available direct to the investors online and real-time, substituting the phone call by a click of the mouse. On 27 Jan 2000, SEBI authorities SE are in India to offer Internet trading to the investors. India entered cyber-trading era on Feb 2000. ICICI direct & investment India enabled retail investors to trade over the net from April 2000.

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REQUIREMENT OF INTERNET TRADING SYSTEM: (1) Depositors: The first requirements to the ITS is the accessibility to an efficient and secure depository system, with an extensive network and the availability of actively trade securities in Dematerialized Format or Demat Format. To open a demat account now it is essential that a customer should provide his PAN number.

(2) Brokers: Website replaces the The Broker Shop & all information required by an investor to trade has to be displayed real-time, hence, the development of the brokers website plays a definite role in the facilitating trading, drawing new customer & retaining them the investor search for a broker who they can trust so, the latters website must convey efficient functionally. In the physical world it is possible for an investors to inquire about the past performance & reputation of a broker. However in the virtual world, science there is a lack of personal interaction, the website is contribute to building trusts buy effective navigation, fulfillment that includes pre-transaction information privacy & redressed policies & presentation of information & up-to-date technology A full service stockbroker may offer advice research, access to floats, access to their internet site, financial planning. A non advisory (phone or net) stockbroker may offer access to information, low cost trading, and straight through order entry.

(3) Stock Exchange: All 24 stock exchanges in the country have become electronic i.e., they have online screen-based trading where orders can be matched automatically of these maximum of (10 to 15) provide the facility of internet trading facility.

28

(4) Insurance companies & R&T agents:

The role of the issuer company &/to this R&T agent in the depositor service to provide its investor with securities in the dematerialized format, convert the existing securities into the dematerialized format & rematerialize the security if required for the purpose, they need to integrate their systems with NSDLS or CDSL network.

(5) Banks: The monetary settlement of the trading is conducted through the banking network. This requires the integration of the banking system with the Internet trading system.

THE ONLINE TRADING PROCESS:

To avail of Online Trading Services the following steps may be followed: Step 1: Register on the website. Step 2: Complete Registration Documentation. Step 3: Open Depository Account. Step 4: Open Bank Account.

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TRADING AND SETTLEMENT (MANUAL) TRADING IN INDIAINFOLINE BEFORE THE INTRODUCTION OF ONLINE TRADING:
TRADING RING: Before the introduction of online trading in JULY 2000, INDIAINFOLINE was carrying on its trading procedures based on OUT CRY SYSTEM on the floor of the exchange called the TRADING RING. Trading was officially done in the trading ring in trading sessions from 11.30 a.m. to 02.30p.m. In the trading space from provided for specified and non-specified sections. The members or their authorized assistants have to wear a badge or carry with them their identity cards given by the exchange to enter the trading ring. They carrys and a block Book or confirmation menus, duly authorized by the exchange. Those interested in buying/selling a scrip/share had to contact a broker who would go the trading ring and make physical gesture inviting buy/sell quotes. ultimately, the transfer of shares takes place. On acceptance of these quotes,

SECURITIES-LISTED, UNLISTED, PERMITTED AND SPECIFIED:

A security is said to be listed security when its name is added to the list of securities, sheikh are permitted to trade eon the floor of the exchange. These are also called cleared security. Securities that are not listed in the SE are unlisted securities or unclear securities. These securities are not permitted to trade on the floor of the exchange. Permitted securities are those share/debentures, which are not listed on the SE but permission for the SE in public interest grants trading in them. Specified securities are those securities in which forward trading are allowed. These are not traded in INDIAINFOLINE.

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STEPS INVOLVED IN TRADING PROCEDURE:

Step 1: CHOICE OF A BROKER. Step 2: PLACING ORDER WITH THE BROKER. Step 3: ENTRY OF ORDRE INTO THE BOOKS. Step 4: EXECUTION OF THE ORDER. Step 5: PREPARING CONTRACT NOTES. Step 6: SETTLEMETN OF TRANSACTION. Step 7: CLEARING HOUSE.

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HOW TRADING TAKES PLACE?

PURCHASE OF SECURITIES:
Investor Decision to buy securities selection of the Broker. Broker Agreement to act as Broker Details of securities to be purchased. Stock Exchange Bargains for best offer Contract to buy securities at price indicate by investor. Broker Prepare contract note Send contract note investor. Stock Exchange Settlement day Receives securities with transfer deed. Make payment for securities received.

Broker

Complete transfer deeds. Send securities and transfer deed to register. Transfer agent of the company.

R&T agent

Receive share certificates & transfer deeds. Record details in record shareholder register. Endorse certificates in the name of the buyer Send certificates to the broker.

Broker

Receive certificates. Delivery to buyer.

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SALE OF SECURITIES:
Investor Decision to sell, selection of the broker.

Broker

Agreement to act as broker examines securities. Retain securities with transfer with transfer deed Method of trade or placing the order.

Stock Exchange

Bargains for best offer. Contract to sell securities at price indicate by investor.

Broker

Prepare contract note. Send contract note to investor.

Stock Exchange Settlement day

Deliver securities with transfer deed. Receive payment.

Investor

Receive payment.

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DRAWBACKS OF OUT-CRY SYSTEM:

There are several drawbacks in case of out-cry system they are:
Brokers have to attend physically on floor of the stock exchange. It may lead to price rigging. Cumbersome procedure of settlement. It may lead to speculation.

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STOCK EXCHANGE

INTRODUCTION:
India has well established securities market with a long history of organized trading. The earliest recorded capital market dealings in India were transaction in loan stocks of the east India Company towards the end of the 18th century. By 1830, wide ranges of bank and cotton mill securities were being traded in Bombay and Calcutta. Trading was concentrated in bank shares.
The enhancement of the Co. Act 1850, which introduced in the concept of limited liability to India, served to stimulate activity in the securities markets. The first SE in India was asset up in1875 in Bombay known as Native share and stock Brokers Association. Now known as BSE. It was the first stock exchange set up in Asia. From 1956 to 1980, the Indian Stock market grew at affecting the securities market during the period was the enactment of the foreign exchange regulation Act. Under FERA, the Indian corporations with more than 40% foreign share holdings were generally required to reduce their foreign ownership. As a result, many such corporations offered equity to the Indian public. 1980-1999, Indian SE witnessed a total revamp; automation, mobilization and the trading and strict surveillance were the hall markets of this period.

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What is Stock Exchange?

The SE is an organized market for purchase and sale of listed industrial and financial securities. The securities traded on stock exchanges include shares and debentures of public limited companies, govt. securities etc. According to securities contract (regulation) Act 1956 Stock Exchange is an association, organization or body of individuals, whether incorporated or act, established for the purchase of assisting, regulation and controlling business in buying, selling and dealing securities.

Organization of Stock Exchanges:

Stock Exchanges is formed under the norms of securities contracts (regulation) Act, 1956. Stock Exchange may be: (a) Voluntary non-profit making associations: EX. Bombay, Indore. (b) Public limited company:Ex. Calcutta, Delhi, Banglore, (It is a joint stock co.s) (c) Company limited by guarantee: Ex. Madras, Jaipur, Hyderabad & Pune.

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Central govt. prescribes & approves the rules, regulations and by laws of recognized stock exchanges. The term Stock Exchange implies is evident from the following features of exchange: -

S: Securities provider for investors. T: Tax benefits, planning and exemptions. O: Optimum return on investments. C: Caution approach. K: Knowledge of market. E: Eligibility for accruals. X: Exchange of securities transacted. C: Cyclopedia of listed companies. H: High yield. A: Authentic information N: New entrepreneurs encouraged. G: Guidance to investors & companies E: Equity cult.

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STOCK EXCHANGE IN INDIA

At present in India 24 Stock Exchange duly recognized by the Govt. They are listed below in the order of year of their establishment.
NAME OF EXCHANGE Bombay stock exchange. Ahmedabad share & stockbrokers association. Calcutta stock exchange association limited Delhi stock exchange. Madras stock exchange. Indore stock brokers association. Banglore stock e exchange. Hyderabad stock exchange. Cochin stock exchange. Pune stock exchange ltd. U.P. stock exchange association ltd. Ludhiana stock exchange association ltd. Jaipur stock exchange ltd. Mangalore stock exchange ltd. Gauhati stock exchange ltd. Magadh stock exchange ltd. Patna Bhuvaneshwar stock exchange association ltd. Over the counter exchange of India Bombay Saurastra Kutch, stock exchange ltd. Vadodara stock exchange ltd. Coimbatore stock exchange ltd. The Meerut stock exchange ltd. National stock exchange ltd. Integrated stock exchanges 1875 1957 1957 1957 1957 1958 1963 1963 1978 1982 1983 1983 1983-84 1984 1985 1986 1989 1999 1990 1991 1991 1991 YEAR

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1994 1999

The Byelaws of the Stock Exchanges:

Bargains Spot/ hand/ special delivers/ margins. Clearing for settlement of bargains. Delivery of securities. Dealing by members. Brokerage and contract notes. Rights & liabilities of members and constituents. Arbitration between members. Defaults. Prohibition & penalties.

The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth. The Exchange provides an efficient and transparent market for trading in equity, debt instruments and derivatives. The BSE's On Line Trading System (BOLT) is a proprietory system of the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing & settlement functions of the Exchange are ISO 9001:2000 certified.

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HISTORY OF THE BOMBAY STOCK EXCHANGE:

The Bombay Stock Exchange is known as the oldest exchange in Asia. It traces its history to the 1850s, when stockbrokers would gather under banyan trees in front of Mumbai's Town Hall. The location of these meetings changed many times, as the number of brokers

40

constantly increased. The group eventually moved to Dalal Street in 1874 and in 1875 became an official organization known as 'The Native Share & Stock Brokers Association'. In 1956, the BSE became the first stock exchange to be recognized by the Indian Government under the Securities Contracts Regulation Act. The Bombay Stock Exchange developed the BSE Sensex in 1986, giving the BSE a means to measure overall performance of the exchange. In 2000 the BSE used this index to open its derivatives market, trading Sensex futures contracts. The development of Sensex options along with equity derivatives followed in 2001 and 2002, expanding the BSE's trading platform. Historically an opencry floor trading exchange, the Bombay Stock Exchange switched to an electronic trading system in 1995. It took the exchange only fifty days to make this transition.

GROWTH OF STOCK EXCHANGES IN INDIA:

The stock market activities in India were relatively on a low key during the beginning of the decade of 80s securities mainly because of the allies regime till 1947. Afterwards, the Government of India concentrated more on administration and less on development and pursuit

41

of the philosophy of public sector dominating the economy. Stock Exchanges were placed under the exclusive regulation of the Government through proclamation in 1930 of the constitution of India. During the 1950s & 1960s Indian economy was dominated by the public sector, which was considered as the major vehicle for economic and industrial development. This trend has changed since mid 80s with liberalization on Government policies and greater freedom given to private sector. This policy of progressively deregulating the economy led to the emergence of stock markets as a major instrument of finance for industry and trade. India can boast of being one of the oldest stock markets in Asia. The Bombay Stock Exchange (BSE) was founded in 1875, while the London Stock Exchange was established in 1773.

Indian stock market has come to a long way since the early 18th century when securities trading were initiated under a sprawling Banyan tree in front of the town hall in Mumbai. The companies Act, passed in 1850 signaled the beginning of the era of joint stock companies in India. In 1874, Dalal Street became the place where brokers met to conduct this business. On July 19, 1875 there brokers organized themselves into the Native Chorea brokers association. This marked the birth of BSE.

The early 1980s witnessed the equity cult gaining ground. The government constituted the securities and exchange board of India (SEBI) on April 12, 1988. Subsequently the over the counter exchange of India (OCEI) was formed in 1992 to encourage small companies list their securities. The creation of national stock exchange (NSE) by leading financial institution in 1992 triggered the move to screen based trading for equities debt instruments and hybrids. The process of globalization began with opening up of the Indian capital market to foreign institutional investors (FIFs) in 1992. This led to foreign custodians and brokerages

42

setting up base in India. They brought their best global practices to Indian markets; Equity research gained prominence. A significant reform was the 1996 decision to move to a dematerialized (demat) form of settlement. Prior to December 1996, securities were traded and settled only in the physical mode, resulting in delays and other operational Hansen. Today, 90% of markets transactions are in demat form. To simulate the capital market the securities and exchange board of India (SEBI) introduced the securities lending scheme in Feb 1997. Currently there are many approved intermediaries through whom securities can be lent and borrowed. Derivatives trading began in June 2000 with index futures on the first product. Since then, a host of other derivative instruments such an index options have been introduced by the exchanges. Recently, SEBI approved trading in single stock futures. In further effort to integrate with international markets, SEBI introduced the compulsory rolling settlement pm aT+5 basis for 409 scrips on July 2, 2001, to streamline settlement system. containment measured and new margining norms were introduced. Regulatory measures and governance are becoming top priority exchanges and regulators. SEBI should continue to be given greater freedom that will create confidence amongst investors the India is a well-regulated market. Today, the Indian capital market is poised to take a significant leap in to the future with the following developments: a move towards a T+3 settlement and introduction of continuous net settlement (CNS) enabling real time from settlement (RTGS). Margin trading for channelization and utilization of bank funds in the secondary markets will help investors borrow money to finance purchases of securities or borrow securities needed for sale. SEBI has recently announced that it is working to streamline stock lending and borrowing system and segregate the short selling facility to institutional participants, which should facilitate stock futures. The finance ministry has been working on a proposal to enable In parallel a slew of risk

43

market participants to integrate with international financial markets once the rupee becomes fully convertibles. Plans to establish a centralized clearing house to attend to the business of clearing and settlement of trade in debt instrument and forex transaction will stimulate increased activity in the secondary debt market. There measure are comparable those that have already been put in place in developed markets like the US, UK and EV However, the globalization of markets has made the Indian financial markets more vulnerable to external events as a result of which any movement in the global market have a corresponding ripple affected in India. While integration and compatibility are critical driven for a robust market, it is bent to maintain a steady pace up the development curve.

RESEARCH METHODOLOGY:
The data collection methods include both the primary and secondary Data.

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1.

Primary Data:
This method includes the data collected from the personal discussions with the authorized

clerks and members of the company.

2.

Secondary Data:
The secondary data includes the data from internet, news papers , and magazines of the

NSE, BSE, INDIAINFOLINE and different books relating to the issues of this study.

Period of study:
Period of study includes a period of 45 Days only. In the first spell of the period data collection process regarding on-line trading has been carried on. In the second spell analysis of the data has been worked out.

NEED FOR THE STUDY:

SEBI in Sep 1996 has issued Guidelines to the Stock Exchange to go on-line trading procedure buy the end of the year 1996. Following its directivities INDIAINFOLINE has

45

installed the on-line trading system as on July 2000. The major need for this study is to know the effectiveness of the on-line system in comparison with the outcry or mark trading. To study its advantages and recommendations for beneficial and effective use of the system.

OBJECTIVES OF THE STUDY:

The objectives of the study include the study of the below mentioned aspects: 1. To know the on-line screen based trading system adopted by INDIAINFOLINE.

46

2. To know about the latest and future developments in the IIL trading system . 3. To know each and every term of the IIL trading procedures. 4. To know about DEMAT in the India Infoline for easy transfer.

LIMITATIONS OF THE STUDY:

Brokers are not providing complete information regarding on-line trading. Time is to be considered as major constraint.

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ANALYSING FIVE DIFFERENT COMPANIES AND INDIAINFOLINE, WHICH ARE PARTICIPATING IN ONLINE TRADING
In capital markets, we have both public and private sectors it means that there are government and private individual participating in capital markets. For, this the private individual are competing, between themselves to provide good quality service at the possible minimum cost than other private individuals or companies.

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Manual trading has been replaced by online trading, there are several companies offering this trading, but for our study we have taken six companies and were are comparing between them, so to check which company is better than other and company provides best service to people or investors. For this purpose we have taken six companies they are: 1) India Info line Securities 2) Kotak Securities 3) ICICI Securities 4) HDFC Securities 5) Share khan. 6) Investment. From these companies we had analyzed their costs, brokerage, speed features, flexibility and site ease.

1. INDIA INFOLINE:
Now we will see how India infoline offer online trading to its investor or customers.

Costs:
The costs which are charged by the India infoline to open demat account and online trading account is Rs.500 and depending on margin deposited, so that it facilitates the investors to open demat account with company. This account is compulsory for online trading, without this account trading is not allowed.

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Brokerage:
In India infoline the brokerage, which is charged for transaction made by the investor is Nil. This is the main important feature of India infoline and moreover it is so famous for this reason. Commission for intra-day squared off transaction is 0.108% per transaction. For Delivery transaction India infoline charges 0.27% on the transactions. This is charged to deliver the cash to customers or to receive cash from customers. An important feature of India infoline is that it doesnt charge any additional cost for phone orders made by the investors. Service tax of 10.2% of brokerage will be charged in addition.

Speed:
Online trading mainly depends on the software used to trade with stock exchanges, the speed for order execution is very good, than other companies, the software used by them is more advanced. This company also provides stock quotes updating on automatic streaming quotes by the investors, this helps the investors to easily invest in the stocks, which they like by checking the prices.

FEATURES:
The different features, which the India infoline has, are: Customer service: The service given to customers is good, it gives information regarding the customers inquiries, and if any problem arises it is solved quickly. Price alerts: The price alerts are mentioned by India infoline. The prices get changed

immediately within seconds. So it is difficult to guide investor regarding the price alerts.

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Short Selling: Yes, it provides short selling. Leverage till Settlement: It provides leverage till settlement 4 times.

Flexibility:
Flexibility means how the company offers different options for investors or its customers. Exchanges: India info-line acts as broker between investors and stock exchanges. It deals with Bombay stock exchange and National Stock Exchange, this will facilitate the investors a lot to invest and to deal with exchanges with so much ease. Derivative Trading: This trading is becoming, so popular because, it is easy to speculate and it is more profitable, this company provides derivative trading.

India info line Company provides another extra feature that it takes order after trading hours also; this helps the investors to please orders at any point of time. Bank account for instant transfer this helps the investors to transfer through bank account, here the investor directly does not deal in money, for this reason India info line provides bank account of HDFC bank and also one private bank is also added. Offline Options: This means it helps its investors or participants to visit any of its branches to trade; this helps the investor to do trading from different branches.

Site ease:
Portfolio valuation: This helps the investor to invest in different company scrips, so that they can get good profits out of their investments, but no manual intervention is allowed by India infoline, it is carried by the company itself

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 Mutual funds: India infoline provides mutual funds or it also trades in mutual or it also trade in mutual fund at indiainfoline. This helps to allocate the funds of different people at one place. IPOS: Initial Public Offers are carried on by the India infoline. This helps them to enter in to the market to fuller extent. Information: Information regarding India infoline can be accessed through

indiainfoline reports and free tips are also give through sms by A, so that it India infoline facilitates the investor to make right decisions in right time.

2. KOTAK SECURITIES:

Kotak Securities caters exclusively to your stock broking and investment requirements. Kotak Securities needs no introduction as one of the largest stock broking houses in the country and a leading distributor of primary market offerings. Kotak Securities Limited is joint venture

52

between Kotak Mahindra Bank and Goldman Sachs, the international investment banking and brokerage firm. The company rose over Rs. 19,000 crore in the primary market in 1999-2000 alone, and this is twice the amount raised by its closest competitors, in the secondary market, the broking turnover of Kotak was RS. 40,000crore plus during 2000-2001. Costs: The costs which are charged by the Kota Securities to open demat account and online trading account is Rs.1200 and depending on margin deposited, so that it facilitates the investors to open demat account with company. This account is compulsory for online trading, without this account trading is not allowed. Brokerage:

In Kotak securities the brokerage, which is charged for transaction made by the investor,
is nil. Commission for intra-day squared off transaction is 0.03 per transaction. For Delivery transaction Kotak Securities charges 0.18% for delivery on the transactions. This is charged to deliver the cash to customers or the receive cash from customers. An important feature for the Kotak Securities is that it charges Rs. 25 per call after the investors complete the limit of 20 calls per month. Service tax of 10.2% of brokerage will be charged in addition.

Speed:
Online trading mainly depends on the software used to trade with stock exchanges, the speed for order execution is very good, than other companies, The software used by them is more advanced.

53

This company also provides stock quotes updating on automatic streaming quotes by the investors, this helps the investors to easily invest in the stocks, which they like by checking the prices.

FEATURES:
The different features, which the Kotak Securities have, are: Customer service: The service given to customers is good, it gives information regarding the customers inquiries, and if any problem arises it is solved quickly. Price alerts: The price alerts are mentioned by Kotak Securities. The prices get changed immediately within seconds. So it charges some amount regarding the price alerts. Short Selling: Yes. Leverage till Settlement: 4 Times.

Flexibility:
Flexibility means how the company offers different options for investors or its customers.

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Exchanges: Kotak Securities acts as broker between investors and stock exchanges. It

deals with National Stock Exchange, this will facilitate the investors a lot to invest and to deal with exchanges with so much ease.
Derivative Trading: This trading is becoming, so popular because, it is easy to speculate and it is more profitable, this company provides derivative trading. Kotak Securities Company provides another extra feature that it takes order after trading hours also; this helps the investors to please orders at any point of time. Bank account for instant transfer this helps the investors to transfer through bank account, here the investor directly does not deal in money, for this reason Kotak Securities provides bank account of Citibank, HDFC, UTI, Kotak Mahindra Bank. Offline Options: It takes phone calls and takes requests of the investor but it charges extra for this service.

Site ease:
Portfolio valuation: They offer portfolio valuation; this helps the investor to invest in different company scrips, so that they can get good profits out of their investments. Mutual funds: Kotak Securities provides mutual funds or it also trades in mutual funds this helps to allocate the funds of different people at one place. IPOS: Initial Public Offers are carried on by the Kotak Securities. This also helps them to enter into the market to fuller extent. Information: Information regarding Kotak Securities can be accessed through their website www.kotaksecurities.com

3. ICICIDIRECT:
Now we will see how ICICI offer online trading to its investors or customers.

55

Costs:
The costs which are charged by the ICICI to open demat account and online trading account is Rs.750 and depending on margin deposited, so that it facilitates the investors to open demat account with company. This account is compulsory for online trading, without this account trading is not allowed.

Brokerage:
In ICICI the brokerage, which is charged for transaction made by the investor is Rs. 25 per order in case of delivery else Rs.15. Commission for intra-day squared off transaction is 0.1% to 0.15% per transaction. For Delivery transaction ICICI charges 0.4% to 0.85% for delivery on the transactions. This is charged to deliver the cash to customers or to receive cash from customers. An important feature ICICI is that it charges additional cost for phone orders made by the investors. For 20 calls per month free and 5 orders/calls free. After that, Rs. 25 per call. Service tax of 10.2% of brokerage will be charged in addition.

Speed:
Online trading mainly depends on the software used to trade with stock exchanges, the speed for order execution is very good, than other companies, the software used by them is more advanced. This company also provides stock quotes updating on automatic streaming quotes by the investors, this helps the investors to easily invest in the stocks, which they like by checking the prices.

FEATURES:
The different features, which the ICICI has, are:

56

Customer service: The service given to customers is good, it gives information the customers inquiries, and if any problem arises it is solved quickly.

regarding

Price alerts: The price alerts are mentioned by ICICI. The prices get changed immediately within seconds. So it charges some amount regarding the price alerts. Short Selling: Yes.

Leverage till Settlement: 3-6 times depending on scrip volatility.

FLEXIBILITY:
Flexibility means how the company offers different options for investors or its customers.

Exchanges: ICICI acts as broker between investors and stock exchanges. It deals with Bombay stock exchange and National Stock Exchange, this will facilitate the investors a lot to invest and to deal with exchanges with so much ease. Derivative Trading: This trading is becoming, so popular because, it is easy to

speculate and it is more profitable, this company provides derivative trading.ICICI Company provides another extra feature that it takes order after trading hours also; this helps the investors to please orders at any point of time. Bank account for instant transfer this helps the investors to transfer through bank account, here the investor directly does not deal in money, for this reason ICICI provides ICICI bank account. Offline Options: It takes phone calls and takes requests of the investor but it charges extra for this service.

SITE EASE:

57

Portfolio valuation: They offer portfolio valuation; this helps the investor to invest
in different company scrips, so that they can get good profits out of their investments.

Mutual funds: ICICI provides mutual funds or it also trades in mutual funds this helps
to allocate the funds of different people at one place.

IPOS: Initial Public Offers are carried on by the ICICI. This also helps them to enter
into the market to fuller extent.

Information: Information regarding ICICI can be accessed through their website

www.ICICIDIRECT.com

4. HDFC SECURITIES

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HDFCSEC is a brand brought to you by HDFC Securities Ltd., which has been promoted by the HDFC Bank & HDFC with the objective of providing the diverse customers base of the HDFC Group and other investors a capability to transact in the Stock Exchanges & other financial market transactions. HDFCSEC will equip you with the necessary tolls to allocate, select and manage your investments, wisely and also support it with the highest standards of service, convenience and hassle-free trading tools. Our mission is to provide our customers with the most useful investment guidance and investment-related services available in the country; we want to become a one-stop solution for all your investment needs, one that will help you get the most out of your money.

Costs:
The costs which are charged by the HDFCSEC to open demat account and online trading account is Rs.700 and depending on margin deposited, so that it facilitates the investors to open demat account with company. This account is compulsory for online trading, without this account trading is not allowed.

Brokerage:
In HDFCSEC the brokerage, which is charged for transaction made by the investor is Rs. 7.50 per order. Commission for intra-day squared off transaction is 0.15% per transaction. For Delivery transaction HDFCSEC charges 0.40 for delivery on the transactions. This is charged to deliver the cash to customers or to receive cash from customers. An important feature ICICI is that it doesnt charge any additional cost for phone orders made by the investors. Service tax of 10.2% of brokerage will be charged in addition.

Speed:

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Online trading mainly depends on the software used to trade with stock exchanges, the speed for order execution is very good, than other companies, the software used by them is more advanced. This company also provides stock quotes updating on automatic streaming quotes by the investors, this helps the investors to easily invest in the stocks, which they like by checking the prices.

FEATURES:
The different features, which the HDECSEC has, are: Customer service: The service given to customers is poor, it gives information the customers inquiries, and if any problem arises it is not solved quickly. Price alerts: The price alerts are mentioned by HDFCSEC. The prices get changed immediately within seconds. So it is difficult to guide investor regarding the price alerts. Short Selling: No. Leverage till Settlement: Nil regarding

FLEXIBILITY:

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Flexibility means how the company offers different options for investors or its customers.
Exchanges: ICICI acts as broker between investors and stock exchanges. It deals with National Stock Exchange, this will facilitate the investors a lot to invest and to deal with exchanges with so much ease. Derivative Trading: This trading is becoming, so popular because, it is easy to

speculate and it is more profitable, but this company doesnt provide derivative trading.HDFCSEC Company provides another extra feature that it takes order after trading hours also; this helps the investors to please orders at any point of time. Bank account for instant transfer this helps the investors to transfer through bank account, here the investor directly does not deal in money, for this reason HDFCSEC provides bank account of HDFC. Offline Options: It takes offline options through the phone calls.

SITE EASE:
Portfolio valuation: This helps the investor to invest in different company scrips, so that they can get good profits out of their investments, but this facility is not provided by HDFCSEC. Mutual funds: HDFCSEC doesnt trade in mutual funds. IPOS: Initial Public Offers are not carried on by the HDFCSEC. Information: Information regarding HDFCSEC can be accessed through their website www.HDFCSEC.com

5. SHAREKHAN:

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Share khan is an equities focused organization tracing its lineage to SSKI, a veteran equities solutions company with over 8 decades of experience in the Indian Stock markets. Share khan brings to you a user-friendly online trading facility, coupled with a wealth content that will help you stalk the right shares.

Costs:
The costs which are charged by the SHAREKHAN to open demat account and online trading account is Rs.750 and depending on margin deposited, so that it facilitates the investors to open demat account with company. This account is compulsory for online trading, without this account trading is not allowed.

Brokerage:
In SHAREKHAN the brokerage, which is charged for transaction made by the investor is Rs. 300-500 per year. Commission for intra-day squared off transaction is 0.10% per transaction. For Delivery transaction SHAREKHAN charges 0.50% to 0.75% for delivery on the transactions. This is charged to deliver the cash to customers or to receive cash from customers. An important feature SHAREKHAN is that it doesnt charge any additional cost for phone orders made by the investors. Service tax of 10.2% of brokerage will be charged in addition.

Speed:
Online trading mainly depends on the software used to trade with stock exchanges, the speed for order execution is very good, than other companies, the software used by them is more advanced. This company also provides stock quotes updating on automatic streaming quotes by the investors, this helps the investors to easily invest in the stocks, which they like by checking the prices.

FEATURES:

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The different features, which the SHAREKHAN has, are: Customer service: The service given to customers is good, it gives information regarding the customers inquiries, and if any problem arises it is not solved quickly. Price alerts: The price alerts are mentioned by SHAREKHAN. The prices get changed

immediately within seconds. So it is difficult to guide investor regarding the price alerts. Short Selling: Yes. 4 times.

Leverage till Settlement: FLEXIBILITY:

Flexibility means how the company offers different options for investors or its customers. Exchanges: SHAREKHAN acts as broker between investors and stock exchanges. It deals with National Stock Exchange, this will facilitate the investors a lot to invest and to deal with exchanges with so much ease. And it is making necessary changes to deal with Bombay stock exchange. Derivative Trading: This trading is becoming, so popular because, it is easy to speculate and it is more profitable, this company provides derivative trading.SHAREKHAN Company provides another extra feature that it takes order after trading hours also; this helps the investors to please orders at any point of time. Bank account for instant transfer this helps the investors to transfer through bank account, here the investor directly does not deal in money, for this reason SHAREKHAN provides bank account of Citibank, IDBI bank, GTB, HDFC and also three private banks are also there.

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Offline Options: This means it helps its investors or participants to visit any of its 240 branches to trade; this helps the investor to do trading from different branches.

SITE EASE:
Portfolio valuation: This helps the investor to invest in different company scrips, so that they can get good profits out of their investments. Mutual funds: SHAREHHAN trade in mutual funds. IPOS: Initial Public Offers are carried on by the SHAREKHAN. This helps them to enter in to the market to fuller extent. Information: Information regarding SHREKHAN can be accessed through their website www.SHAREKHAN.com

6. INVESTMENTS:

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Investments .com is a investment portal launched in early 2001 to facilitate Resident Investors to invest in India equities (stocks) using new age technology of Internet as a medium of operation. The investor has facility to use a browser or socially designed software for his investment in both the premium stock exchanges namely, the Bombay Stock Exchange (BSE) and The National Stock Exchange of India Limited (NSE). Investmentz.com is a division of Asit C Mehta Investment Intermediates Ltd. (ACMIIL), a leading brokerage house in India having corporate membership of BSE and NSE. Established in 1985, ACMIIL has been serving equity investors (Retail as ell is Institutional) across India through its presence in over 180 locations. As a certification to the quality of the equity broking business, it has been accredited with ISO 9001:2000 certification by SGS, Switzerland.

ACMIIL is Flagship Company of the Mumbai based Nucleus group. Other companies within this group are:
1) Nucleus Securities Ltd. (offers travel related services like money transfer and money changing). 2) Nucleus Net soft & GIS Services (GIS, BPO and Offshore Software Development). 3) Asit C Mehta forex Private Ltd. (inter bank forex market brokerage), and 4) Asit C Mehta Comdex Services Private Ltd.(commodity market brokerage service through MCX and NCDEX).

Costs:
The costs which are charged by the INVESTMENTZ to open demat account and online trading account is Rs.500 and depending on margin deposited, so that it facilitates the investors to open demat account with company. This account is compulsory for online trading, without this account trading is not allowed.

Brokerage:

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 In INVESTMENTZ the brokerage, which is charged for transaction made by the investor is 1PAIS PER SHARE. Commission for intra-day squared off transaction is 0.108% per transaction. For Delivery transaction INVESTMENTS charges 0.54% on the transactions. This is charged to deliver the cash to customers or to receive cash from customers. An important feature of INVESTMENTZ is that it doesnt charge any additional cost for phone orders made by the investors. Service tax of 10.2% of brokerage will be charged in addition.

Speed:
Online trading mainly depends on the software used to trade with stock exchanges, the speed for order execution is very good, than other companies, the software used by them is more advanced. This company also provides stock quotes updating on automatic streaming quotes by the investors, this helps the investors to easily invest in the stocks, which they like by checking the prices.

FEATURES:
The different features, which the INVESTMENTS have, are: Customer service: The service given to customers is good, it gives information regarding the customers inquiries, and if any problem arises it is not solved quickly. Price alerts: The price alerts are mentioned by INVESTMENTS. Short Selling: Yes, it provides short selling. Leverage till Settlement: Nil.

FLEXIBILITY:
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Flexibility means how the company offers different options for investors or its customers. Exchanges: INVESTMENTS acts as broker between investors and stock exchanges. It deals with Bombay stock exchange and National Stock Exchange, this will facilitate the investors a lot to invest and to deal with exchanges with so much ease. Derivative Trading: speculate and it This trading is becoming, so popular because, it is easy to is more profitable, this company provides derivative

trading.INVESTMENTS Company provides another extra feature that it takes order after trading hours also; TRADING HOURS ARE 04.30-09.30. Bank account for instant transfer this helps the investors to transfer through bank account, here the investor directly does not deal in money, and for this reason 5PAISA provides bank account of HDFC bank and also ICICI bank. Offline Options: Phone calls

SITE EASE:
Portfolio valuation: They offer portfolio valuation; this helps the investor to invest in different company scrips, so that they can get good profits out of their investments. Mutual funds: INESTMENTS provides mutual funds or it also trade in mutual fund. IPOS: Initial Public Offers are not carried on by the INVESTMENTS. Information: Information regarding INVESTMENTS can be accessed through newsletters and reports and also through their website www.INVESTMENTS.com

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GRAPH SHOWING THE DIFFERENCES IN THE DEMAT FEES CHARGED BY DIFFERENT COMPANIES

Different Demotes

1400 1200 1000 800 600 400 200 0

INTERPRITATION
From the above graph analysis it clearly gives that the demat fee charges of India info line is great that any other companies of such kind ICICI, HDFCSEC, SHAREKHAN, KOTAK.I

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FINDINGS

Online trading is more powerful & advantageous than manual trading. The software or the systems used in online trading should be advanced and the persons who operate should have minimum knowledge. Tips are available for trading online and invest wisely. So that the investor can avoid the fraud. It should increase the speed of executing the orders. Due to invention of online trading here has been greater benefit to the investors as they could buy/sell shares as and when required. It has to take necessary steps to attract the customers through the Internet. India Infoline has to give more advertisement through the media stating the advantage to the investors by using the India Infoline. Instant bank account should be provided as the other companies are providing. It should have separate department for portfolio management. Most of the investors like to trade along with brokers. Online makes direct contact between the investors and it avoids the presence of middleman. Online trading reduces the trade time.

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SUGGESTIONS

I suggest the company to take steps to educate investors about their rights and duties; try to increase investors confidence. For the awareness of on-line trading process it is necessary to conduct various programs in different T.V channels. It is necessary to explain the benefit of the on-line trading to the investors. To explain the investors how to work on DEMAT services. Try to explain them how fraud will take place so that they can be alert and they can take necessary steps to avoid the frauds.

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CONCLUSIONS
Online trading is more powerful & advantageous than manual trading. If online trading is done with proper infrastructure and software in place then it facilitates smooth trading. The software or the systems used in online trading should be advanced and the persons who operate should have minimum knowledge or if they are very well versed about the functioning of the system then it will be helpful in smooth functioning of online trading.Due to changes in the technology HSE has changed its trading activities into online trading system. So that transaction will be performed efficiently. Things are changed for the better with the HSE has going coupled with endeavor to stream line the whole trading system, things have changed dramatically over the last 3-4 years. New and advanced technologies have breached geographical and cultural barriers, and have brought the countrywide market to doorstep. Borders of the regional stock exchanges (RSE) have suddenly been thrown to intense competition from their counter parts across the country. The RSEs have their own advantages like being nearer to the retail investor an to let the RSEs perish would be determined to stock market system there is no brokerage firms with in India with national reach. In the present scenario HSE is required to compete with NSE, and it would require sound intrastate and trading as per international standards. The concepts of business have change and today this has become service to clientele to provide the best possible service to clientele to engage into new business from the regional center to the metro centers and to impart liquidity introduction of online trading is necessary. Tips are available for trading online and invest wisely. So that the investor can avoid the fraud.

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The introduction of online trading would influence in the investors resulting in an increase in the business of the exchanges. It has helped the brokers handling a vast amount of transactions and this can be achieved with every delivering and settlement system with adequate protection to investors. The trading g of HSE of the first day was RS 1.8crores. Due to invention of online trading here has been greater benefit to the investors as they could buy/sell shares as and when required and that to with online trading, it will inspire confidence in investor resulting in increase in business of the exchange. The regional stock exchange has greater scope than compared to the earlier times because of invention online trading. The concept of business has changed today this is a service oriental industry hence the survival would require them to provide the best possible service to the client. The longer trading tine had helped the investors as well as the broker to take much interesting the trading of the securities as they had got extra time to take in the security market. The existing system can be further improved by introduction of stop loss facility, which will help to reduce investors losses. Also there is a need for exchanges to exchanges to setup standing committee into break down of online trading.

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BIBLIOGRAPHY

BOOKS:

Alexander, fundamentals of investment, 3/e, Pearson education, 2006. V.A.Avadhani , Security Analysis And Portfolio Management, 8/e Himalaya Publishers, 2006. Prasanna Chandra, Investment analysis on securities and Portfolio management, Tata McGraw-Hill, 2006. M.Y.Khan, Financial Services, 3/e Tata McGraw-Hill, 2004.

Subbalakshmy, Investors Preference Related to Securities Market. Philip Gotthelf, TechnoFundamental Trading.

SEARCH ENGINES:

www.google.com www.sagejournal.com www.amazon.com

WEBSITES:

www.religare.com www.bseindia.com www.sebi.com www.moneycontrol.com www.economictimes.com www.nseindia.com www.sebi.gov.in

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