1. INTRODUCTION
1.1 ONLINE TRADING IN INDIA:
Indias main capital market regulator has approved online share trading in a move designed to boost the countrys equity markets. The body also announced that individuals and foreign investors would be allowed to invest in Indian shares up to 5% of a companys total equity. The head of the securities and exchange board (SEBI), D R Mehta, announced internet share trading could take place in India within the existing legal framework-although cyber laws need strengthening. However, online trading would still have to be done through brokers. Mr. Mehta said the necessary guidelines would be issued to various exchanges and brokers, who could then decide when they wanted to start. A SEBI panel submitted a report on internet stock trading in December recommending procedures and other details for domestic stock exchanges. The countrys biggest exchange- the national stock exchange (NSE)-has got the necessary software, and is currently testing interconnectivity with brokers systems. The Bombay stock exchange (BSE) should be ready currently in the process of developing a central web server who can be accessed by all brokers registered with the exchange. According to some analysts, the introduction of internet trading should boost business volumes and further fuel a bull run on the Indian markets. However, the BBC, s Sanjeev Srivastava in Bombay says other analysts are not so optimistic. He says they believe that the countrys internet infrastructure is still not advanced enough, and that effective online trading will be difficult until bank, brokers and exchanges are all successfully interconnected. India is believed to have about 30m domestic investors at the moment.
Schwab believes they still need a distribution channel that offers face to face contact with their customers along with guidance (schmerken schwab sweeps internet) customers have the option of using the telephone (tiebreaker), pc or internet, call centers and branch offices. Schwab is focusing on giving consumers a choice in the customers interact with the company (Clark). However, the cyber brokerages have proven to be serious competition to schwab and other traditional discount brokerages (schmerken schwab sweeps internet). Web based trading allows schwab to compete internationally. Schwab gas customers 88 countries that use the web for schwab, the internet has been very successful internationaly.the success is due in part to the fact that customers can get direct access any time of the day or night for just the local phone call(power).thus, Schwab is truly reaps the benefits of the internet: greater connectivity, speed and efficiency even though online trading phenomena into perspective. as of approximately December 1996,actual trades comprised only two percent of all transactions according to a survey conducted by FIND/SVP and Jupiter communications, research firms based in New York .it is projected to increase to eight percent by 2001 according to SRI consulting in Menlo park, California(prins).estimates have been made by Forrester research, a REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 5
TRADING ACCOUNT:
Trading account positions can be taken purely for intra day purposes. All trading account positions have to be compulsorily squared off before the end of the market or any other specified by the trading stock broker. In case any outstanding position remains the stock broker will square off the same at the prevailing market price. In case the square off cannot be done, the trading account will get shifted to investment account off the client.
STANDARD
DOCUMENT
REQUIRES
OPENING
AN
INTERNET
PROFF OF IDENTITY:
Driving license Voters ID Passport Photo ration card PAN card
REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 11
1. Unorganized market:
REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 12
2. Organized market:
This market consists of a) Money market b) Capital markets
a. Money market: Money market deals with all transaction in short instruments which have a maturity period of one year or less. in other words the money market is the market in which short term funds are barrowed and lend. the leading money market institutions are. 1. Discount and finance house of India ltd (DFHI) 2. Securities trading corporation of India ltd (STCI)
2. Treasury bills: These are short term barrowing instruments issued by govt of India .they are of two durations 91 day and 364 day. Treasury bills have been issued ever since the inception of reserve bank of India in the year of 1935.treasury bills also called t-bills, are negotiable securities and sine they can be rediscounted with RBI,they are highly liquid. REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 13
3. Commercial paper: These introduced in January 1990,to enable highly rated corporate barrowers to diversify their sources short term ,unsecured and to provide an additional instrument to the investor. The holder issues commercial papers in the form of promissory notes, redeemable at par on maturity. Commercial papers can be issued only by corporate who have a minimum net worth of 5 crores and an investment grade rating from credit rating agencies. 4. Certificates of deposits: These are shorterm deposit certificates issued by a bank/financial institution with maturity ranging from 3 months to one year. They are bank deposits, which are transferable from one party to another. Banks are issuing certificates deposits in since 1989, either directly to the investor or through the dealers. 5. Commercial bills: bills of exchange are negotiable instruments drawn by the seller on the buyer for the value of goods delivered to him. When such type of bills are accepted by commercial bank, they are called commercial bills b) Capital market: this market is tenor of more than one year. This is the place where corporate (which have credibility in the market) can raise money to funds/ existing business. the capital market is divided into as follows. 1) Industrial securities market 2) Government securities 3) Long term loans market
Public Issue :In public issue capital raised through sale of securities to public or it is nothing but first issue to public parties involved in public issue are lead manager, underwriters ,bankers, advertising agency, financial institutions and govt/statutory agencies. Right Issue: As per sec 81 of the companies act 1956, if public company wants to increase its subscribed capital by allotment of further shares after 3-years from the date of its formation or 1 year from the date of its first allotment whichever is earlier, should offer share at first to the existing share holders in proportion to the shares held by them at the time of offer. Private placement; Issue is placed with a small number of financial institutions, corporate bodies and high net worth individuals .the financial intermediaries purchase the shares and sell them to investors at a later date for a suitable price. The special feature of the private placement is that there is need for underwriting .the private placement technique is gaining importance in the Indian capital market. It is increased from 12.8% to 49.1% of the total resources mobilized by the government and non-governmental companies in 1996-97.public sector are the major user of private placement i.e.83.4% in 1997.
Term loan market :The government both at the national and regional to supply long term and medium terms loans to corporate customers directly or indirectly has created industrial financing institutions like IDBI,IFCI,ICICI and other state financial corporate come under this category. Mortgages Market: The transfers of interest in a specific immovable property to secure loan is called mortages,these loans mainly for individual customers .the HUDCO and LIC play a dominant role in financing residential projects. REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 16
Financial Guarantees Market: Guarantee is a contract to discharge the liability of a third party in case of his default. a guarantee market as a centre where finance is provided against the guarantee of a reputed person in the credit guarantee corporation (ECGC) financial circle. these guarantees are provided by and deposit insurance and credit guarantee commercial banks, development banks, central and state governments and institutions like export corporation(DICGC)
Since its inception SEBI has been working targeting the securities and is attending to the fulfillment of its objectives with commendable zeal and dexterity. The improvements in the securities markets like capitalization requirements, margining, establishment of clearing corporations etc. reduced the risk of credit and also reduced the market.
FUNCTIONS
(a) Regulating the business in stock exchanges and any other securities markets; (b) registering and regulating the working of stock brokers, sub-brokers, share transfer agents, bankers to an issue, trustees of trust deeds, registrars to an issue, merchant bankers, underwriters, REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 17
custodians of securities, foreign institutional investors, credit rating agencies and such other intermediaries as the Board may, by notification, specify in this behalf;] (c) Registering and regulating the working of 3[15][venture capital funds and collective investment schemes],including mutual funds; (d) Promoting and regulating self-regulatory organizations; (e) Prohibiting fraudulent and unfair trade practices relating to securities markets; (f) Promoting investors' education and training of intermediaries of securities markets; (g) Prohibiting insider trading in securities; (h) Regulating substantial acquisition of shares and take-over of companies; SEBI has legal and investigation departments. It has got separate committees for the primary and secondary market to assist the policy formulation. It has regulated:
REFORMS:
SEBI has introduced a few reforms, but the stock brokers have been slow to accept the need for reform. Reform measures include improved transparency, computerisazation, and enactment against insider trading, improved capital adequacy, restrictions on forward trading, and provisions to encourage corporate membership in the stock exchanges. The restriction on forward of Contango trading referred to in Indian as Badla has been met with cynicism, New measures include provision for cash margin, and need for physical transfer of settlement date. What is Stock Exchange? The stock exchange is an organize market for purchase and sale of listed industrial and financial securities. The securities trader on stock exchanges includes share and debentures of public limited companies. Govt, securities etc. According to securities contract (regulation) Act 1956 stock exchange is an association, organization of body of individuals, whether incoporated of act, established for the purchase of assisting, regulation & controlling business in buying and selling and dealing securities.
There are many alternatives which investment avenues are open to the investors to suit their needs and nature. The selection of investment alternatives depends upon the required level of return and risk tolerance level. These alternatives range from financial securities to traditional non security investment alternatives Negotiable and fixed income securities Equity shares Preference shares Debentures Bonds
deposits etc.)
Securities market
Company raises funds to finance their projects through various methods. The funds may raise through issue of fresh shares, or preference shares, debentures or globally depositary receipts (GDR).there are mainly two markets from which any company can raise their funds; Those are primary market where new shares are issued and secondary market where existing shares are traded. The companies raise funds for following purposes To promote new company To expand an existing company To diversify the production To meet the regular working capital requirements To capitalize the reserve Stock exchanges are established in different centers like Mumbai, Chennai, Delhi, Nag poor, Hyderabad and Bangalore. At present we have twenty three stock exchanges. The main activity of stock exchanges are maintain active trading, fixation of prices, ensure fair dealing, aids in financing the industry, dissemination of information performance inducers and self-regulating organization.
Sample design
a) Sample size: It refers to the members of respondents to be included in the survey. The study is of thirty respondents, which includes investors, intermediaries and others. b) Sample area: It refers to the place where the studies are conducted. Sample is selected for the study is sirsi town.
Sources of data
(a) Primary data (b) Secondary data
a) Primary Data
Primary data are those that are collected as fresh for the first time & thus happen to be origin in character. Here primary data was collected through a structured questionnaire. The selection of respondents is based on simple random sampling. Information was collected from personal interview & discussion with the manager of IIL financial service ltd.& also with the respondents
b)
Secondary data
stock
The secondary data are those, which have collected by same others that have been processed. For the study, the secondary data is called from various publications and journals of exchanges, newspapers, books, business and investment magazines, articles & websites.
Data sources
Tools used for the techniques of analysis Major tools used for the analysis of the data are tables, percentages, bar charts and pie charts. The analysis of both primary and secondary data in the light of objectives lay down in order to support the conclusion with referenced statistical tools.
Lastly in addition to the necessary data was collected from the various website like www.indiainfoline. com www. 5paise .com www.nse.com www.bse.com www.icicidirect.com
PERIOD OF STUDY:
Period of study include a period of Forty two days as in plant trainee in trading procedure in the IIL financial services limited from 25 feb 2009 to 8 apr,2008.
The scope extends to various classes of investors being classified as employees, professionals, and businessmen and other. Concerning to the fact that, there is a need of institutional support which may be broker, agents or even financing institutions. The study extends to these areas too.
CHAPTER-3
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 SECURITY PVT.LTD SECONDARY MARKET SECURITIES BROKING PORTPOLIO MANAGEMENT SERVISES
INDIA INFOLINE .COM DISTRIBUTION CO.LTD MOBILISATION OF MUTUAL FUNDS AND OTHERS PERSONAL INVESTMENT PRODUCTS INDIA INFOLINE INSURANCE SREVICE LTD CORPORATE AGENT FOR ICICI PRUDENTIAL LIFE INSURANCE CO. LTD
INDIA INFOLINE COMMODITY PRIVATE LTD COMMODITIES BROKING INDIA INFOLINE INSURANCE BROKING LTD INSURANCE BROKING
branches, which helps source and service customer across the length and breadth of India.
Mr.Nirmal Jain
Mr. Venkataraman
Executive Director
Mr.Nilesh vikamsey
Independent Director
Mr Kranti Sinha
Independent Director
Mr Arun K. Purvar
Independent Director
Head - Commodities
Head - News
Head - institutional
Vice - research
Head - Accounts
Company Secretary
and for online trading platform, www.5paisa.com the technology starts developing in the company.
Multiple product offerings make us a one stop shop: Company provide a range of
products and services to customers, either directly or through any one of our wholly owned subsidies. These multiple offerings across multiple channels either online through internet or offline through any of the branches or over the telephone enables the company to emerge as a financial one stop shop.
Pan India distribution network: The Company is having 73 branches across 36 towns and
cities in India. This is a part of a conscious bricks and clicks strategy to reach out to our customers.
India Infoline.com and 5paisa.com have developed into brands: India Infoline.com
and 5paisa.com are well known brands amongst retail investors across India.
Customer Relationship Managers across India to handle key customer accounts. This allows customers to offer unbiased advice on equity and also on other investment products. Strategy of the India Infoline: Strategy of the business plan is to become the leading
investment advisor and intermediary for financial services in India. The key driver is to increase customer base in all of the products, give them a platform of choice to transact and support them with quality research. The elements of companys strategy include: One Stop Shop from advice to transactions: The company has emerged as one of
Indias leading financial information Internet portal in India. Distribute mutual funds and life insurance products through branches as well as directly through our sales team.
Multi Channel Delivery Model: Company provides a single convenient and reliable
platform, from which users can obtain information, trade online or purchase offline.
0.05% for day trading (applicable on both sides) 0.50% for delivery
DERIVATIVES INFORMATION
The National Stock Exchange and The Stock Exchange, Mumbai have commenced trading in Derivatives Market with Index Futures being the first instrument. Now both the exchanges provide trading in Index Futures and Options and Stock Futures and Options. A derivative is a financial contract, between two or more parties, which is derived from the future value of an underlying asset. At any point of time there will always be available near three months contract periods. For e.g. in the month of Jan 2006 one can enter into Jan, Feb or Mar contracts. The last Thursday of each month is the expiry day for that months contract. When one contract expires, a new contract is introduced. For instance, on expiry of Jan 2006 contract, April contract shall get activated. Currently, settlements of all Derivatives trades are in cash. There is Daily as well as Final Settlement. As long as the position is open, the same will be marked to Market at the Daily Settlement Price, the difference will be credited or debited accordingly and the position shall be brought forward to the next day at the daily settlement price. Any position which remains open at the end of the final settlement day (i.e., last Thursday) shall be closed out by the Exchange at the Final Settlement Price which will be the closing spot value of the underlying.
MarginTradingFundingScheme India infoline limited. Offers Margin Trading Funding facility to all offline customers under the scheme of Margin Funding approved by SEBI. Key features of the Scheme are as follows: 1. Easy and prompt account opening formalities 2. No processing fees 3. Margin funding of up to 50% of the purchase value 4. Shares purchased are credited to customers Demat account maintained specifically for the purpose of Margin Trading
Margin Ratios
Registration Procedure: Currently, customers who have an offline trading account with India infoline limited can avail the Margin Trading Funding facility. Clients desirous of registering for Margin Trading Funding Scheme are required to complete / provide the documents given below. Rs.300/- is recovered towards Agreement and documentation charges for opening the Margin Trading Funding Account.
LoanAgainstShares IIL Credits Pvt. Ltd., a subsidiary of India infoline Financial Services Ltd, registered as a NonBanking Finance Company (NBFC) offers Loans against security of shares. The facility is available to all customers of IIL Financial Services Ltd.
It is essential to have a Trading account with IIL Commodities and DP account with INDIA INFOLINE Financial Services Ltd.
Commodities Loan Application to be submitted along with necessary Resolutions and Letter of authority for operating the account by partners/ directors/ officers, etc.
DEPOSITORY
A depository can be compared to a bank. It holds securities such as shares, debentures, bonds, government securities, units etc. of investors in electronic form. There are two depositories in India, The National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). An individual who desires to avail the depository services can approach a Depository Participant (DP). Banks, financial institutions, custodians, brokers or any other entity eligible as per SEBI (Depositories and Participants) Regulations, 1996 can apply to the Depository to become a Depository Participant. As on 31st March, 2006 there are 526 Depository Participants in India. India infoline ltd, is a depository participant of NSDL & CDSL. Investors can open demat accounts with NSDL & CDSL through IIL. One can approach the nearest branch of IIL for opening an account. Agreement charges (statutory charges) along with Annual Maintenance Charge (AMC) are collected upfront while opening an account. It takes two to three days to open a demat account. Upon activation of the demat account, a Welcome Letter is sent to the customer along with the Delivery Instruction Slip book.
De-materialization: You can convert your physical shares into electronic form by surrendering the shares for dematerialization at the IIL branch.
Re-materialization: Re-materialization enables you to convert the dematerialized shares into physical form.
Repurchase: This facility helps you to submit the units of open-ended Mutual Funds in case of re-purchase.
Transfer: You can transfer securities from one demat account to another. IPOs: In case you have applied for an IPO and receive an allotment then the securities are transferred directly to your demat account. The same applies for bonus and rights issues.
Commodity De-mat Account: If you are a commodity player, you may need to open a commodity de-mat account with India infoline ltd.
Speed-e: If you register for Speed-e services, then transfer instructions can be placed online over the internet to pre-notified Clearing Members Pool a/c. This does away with the need to submit a physical delivery instruction slip.
Internet Services : If you have access to Internet then you can register with us to view your demat account over the Internet. This is very beneficial as you can avail of a host of services at no extra cost. You will be able to view your holdings, reports, ledger and will have free access to our research reports at any time.
SMS Alert Facility : The alert messages for debits(transfers) and IPO credits would be sent to the account holders who have subscribed to this facility. Depository provides this facility and no charge is levied on DPs for providing this service to investors.
Introduction to Commodity Futures Trading India infoline limited Commodities, a subsidiary of India infoline Financial Services Limited, is mainly engaged in the business of Commodity Futures Trading. IIL Commodities is a member of:
National Multi Commodity Exchange of India limited (NMCE) National Commodity & Derivatives Exchange Limited (NCDEX) Multi Commodity Exchange (MCX) India Pepper and Spice Trade Association (IPSTA) Singapore Commodity Exchange (SICOM) Dubai Gold Commodity Exchange (DGCX).
Precious metals: gold and silver, Base metals: steel, aluminum, nickel, zinc, copper, etc Energy products: crude oil and furnace oil
IIL clientele in commodities range from investors, co-operative societies, state and national institutions to dealers, traders, manufacturers, financiers, speculators, arbitragers, etc. IIL does not have proprietary interest in any commodity and therefore is price neutral. Transaction costs are highly affordable attracting a spectrum of investors. Membership in multiple exchanges gives clients the added advantage of arbitrage. IIL has specialized staff that provide the required guidance, help and enable clients to enter at the appropriate price.
Open a trading account and maintain initial margin with IIL. When an order request is entered for buying/selling for a match with the existing orders in the Exchange system. If the order matches another order in the system it results in a trade. Contract note is issued in the exchange specified format containing details such as transaction, quantity, price etc. Contract note is a legal document enforceable in the court of law. Mark to market margin are levied on the contract. The open purchase/sale positions can be squared off at any time during the contract period.
NMCE however does not allow members to enhance their position during the settlement month. Existing positions can be squared off.
This means that the seller has the right to make delivery of the sold position any time between the 1st to 15th of the contract month. The first buyer (as per the exchange records) shall have to necessarily take delivery of the same. The seller shall receive payment from the exchange on T+3 day while the buyer has to make payment on T+1 day. (T is the transaction day)
The seller who places his commodity with Central Warehousing Corporation (CWC) is issued a CWC receipt against this delivery. This receipt is accepted by IIL and sent to the exchange that gives it to the buyer. The buyer presents it at CWC and takes delivery of his commodity
Commodity Depository
1. The Commodity Depository account can be opened by individuals, partnerships firms, companies, etc. unlike in the capital market segment where Partnership firms cannot open the demat account in the firm name. 2. The content of the Agreements shall differ for each category 3. Depository charges differ for each category 4. Only warehouse electronic receipts are considered for the purpose debiting / crediting depository account 5. Commodities depository account can be availed at both the Depositories i.e. NSDL and CDSL 6. The Commodities Identification number i.e. INC is akin to the ISIN The Commodities Depository account may be credited in the following situations: 1. Demat 2. Revalidation 3. Actual purchase from market.
Revalidation:
If the client doesnt wish to open the DP account then he may trade directly in the market with the physical warehouse receipts ( in MCX AND NMC) Normally the warehouse receipt (whether demat or physical) is for duration of 3 months. After the expiry of 3 months the owner of the receipt needs to revalidate it. He will request the Warehouse to revalidate the receipt. The assayer will examine the commodity and take into account the wear and tear (normal as well as abnormal) for revalidating the warehouse receipt
Investment Objective
To generate medium to long-term capital growth (2-3 years) by identifying undervalued stocks and those with growth opportunities from a select list of well researched stocks.
DISTRIBUTION
IIL undertakes the distribution of variety financial instruments such as mutual funds, bonds, life insurance products, fixed deposits etc. The wealth centre team understands the universe of investment options, analyzes the risk and return from these options and recommends investment options to clients to help them achieve their financial goals. IIL has a tie up with all the Mutual Funds across the country. IIL offers life insurance products of the following life insurance companies:
IIL also helps its customers in investing in 8% RBI taxable bonds, Capital gain bonds (Sec 54 EC bonds), fixed deposits (KPFC, KTDFC) etc. through its tie- up with the required organizations.
IIL Commodities Limited IIL Commodities, a subsidiary of IIL Financial Services Limited is mainly engaged in the business of Commodities Futures Trading.IIL Commodities is a member of:
National Multi Commodity Exchange of India limited (NMCE) National Commodity & Derivatives Exchange Limited (NCDEX) Multi Commodity Exchange (MCX) India Pepper and Spice Trade Association (IPSTA) Singapore Commodity Exchange (SICOM) Dubai Gold Commodity Exchange (DGCX).
IIL Financial Distribution (P) Limited This is a subsidiary of IIL Commodities Limited, engaged in the distribution of Mutual Funds and Insurance products.
IIL Financial Management Services (P) Limited This is a subsidiary of IIL Commodities Limited, engaged in providing wealth management services. IIL Credits (P) Limited IIL Credits, a subsidiary of IIL Financial Services Ltd. is registered with Reserve Bank of India as an NBFC. It is engaged in the business of margin funding for securities trading, loan against shares, loan against commodity futures, etc. A product for every need : ICICI direct.com is the most comprehensive website, which allows you to invest in shares, mutual funds, derivatives (futures and options) and other financial products. Simply put we offer you a product for every investment need of yours.
RESEARCH
IIL has a team of experts who track the markets and related events very closely. Sophisticated tools are used for technical analysis and research to offer recommendations, technical analysis and research reports. Each day IIL Research team brings to table information that helps you profit from it.
Daily Market View: Technical Analysis - Market, a daily report on markets gives a clear picture on the expected market movements (NSE and BSE). It also covers the key support and resistance levels. It also provides clues on market direction and the expected profit booking levels.
Daily Stock View: Technical Analysis - Stocks, a daily report on the stocks for the day. These are prepared with "Departure Oscillators" tool that have a high degree of accuracy on stock readings; which in turn helps investors, day traders, High Networth Individual's with stock ideas that may benefit them.
F&O Analysis: F&O Analysis is a daily report that gives near 100% accurate reading on both Futures and Options. Tools such as PC ratios, Open Interest and volatility combined with RSI indicator are used for the purpose. It is helpful for day traders, long-term holders and HNI clients
SMS: SMS alerts are sent to those who have registered for the service. These are prepared with utmost care, ensuring that it is suitable for both the Bulls and the Bears. It provides instantaneous buy/sell/hold recommendations purely on technical. It also provides option strategies with the use of Implied/Historical Volatility study. SMS is especially handy for Index Traders.
IIL Data: IIL Data is a monthly research report covering most financial instruments. It is quite comprehensive, and provides in-depth information on stocks to watch out for, recommended Mutual Funds, performance of schemes, Futures and Options update and a review of the commodities markets.
The Table -4.1 tells that 60% of respondents invest their surplus in trading and 40% of respondents are not interested to invest their surplus in trading.
The table-4.2 reveals that 70% of respondents said that the reason for investing in trading is quick yield, higher profit & remaining 30% of respondents express the reasons to meet the future contingencies and other purposes.
No. of respondents
To earn high profit To meet future needs To meet emergency If any other purpose 10% 10%
10% 70%
Table No. 4.3 The respondents aware of various sources of investment REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 63
12 06 07 00 03 02
investment Banks Deposits only remaining 60% of them are aware of insurance, Equity, Mutualfunds Etc. However none of them are aware of Bonds, In spite of financial sector growing at faster rate.
No. of respondents
Field / other deposits Equity market Mutual fund 7% 10% 0% Insurance Bonds Others
40%
23% 20%
Table - 4.4 Respondents know how to buy & sell shares in online
Table -4.4 tells that 60% of respondents know to buy & sell shares through online trading and 40% respondents are not.
Graph showing that investor know the online trading & how to buy & sell shares in online
Table 4.5 The No. of respondents who can give better advice for investment in online trading. Better advice for investment in online trading Share Brokers Magazine TV channels Friends & relatives News paper No. of respondents 10 3 8 5 4 Percentage 33 10 27 16 14
Graph s howingtheNo. of res ponden who ts can g better adviceforinves en in online ive tm t trading
35 30 25 20 15 10 5 0
No. of respondents
Table 4.6 The number of respondents would you like to invest in online trading. Respondents invest No. of respondents in online trading yes No 19 11 Percentage 63 37
Table-4.6 informs that 63% of respondents would like to invest in online trading and 37% of respondents not interested in online trading.
Table 4.7 The number of respondents for factors influence for investing in online trading The factors influence No. of respondents Percentage
investing in online trading Returns Liquidity Tax concession More investments in others 14 02 09 07 47 7 30 16
Table 4.8 The no of respondents are more preferred to invest. Respondents are more prefer to No. of respondents invest Long term investment Short term investment 20 10 Percentage 67 33
Table- 4.8 tells that 67% of respondents preferred to invest in long term investment & 33% of them preferred to invest in short term investment. REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 68
Table 4.9 The no. of respondents are heard about IILfinancial services ltd. Heard about IILfinancial No. of respondents services Ltd Yes No 24 6 Percentage 80% 20%
Table-4.9 indicates that 80% of respondents are aware about IIL Financial services Ltd & remaining 20% of the respondent do not know about IIL financial services ltd REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 69
Gra s ph howing the no. of res pondentsa re hea a rd bout Geojit fina ia servic ltd. nc l es
Table 4.10 The No of respondents are satisfied with the service provided by IIL financial services ltd.
Services
provided
by No.of respondents
Percentage
4 18 8 0
13 60 27 0
Gra s ph howing the No of res pondents a s tis re a fied withthes ervic provided by Geojit fina ia e nc l s ervicesltd. No. of respondents 60 18 4 13 8 27 0 0 Percentage
Table 4.11 The Stock exchange at which internet trading are commonly done. Stock exchange NSE BSE 18 12 60 40 No. of respondents Percentage
Table-4.11 indicates that 60% of respondents trade with NSE and remaining 40% of respondent trade with BSE.
40% 60%
NSE BSE
Table 4.12 Investors trading habits. Trading habits Daily Weekly Monthly Occasionally No. of respondents 18 06 04 02 Percentage 60 20 13 07
Table-4.12 indicates that 60% of investors are trading regularly, 20% of the investors trading weekly, 13% of the investors trading monthly and 07% of investors trading
7%
INVESTOR QUESTIONNAIRE
Dear Sir / Madam, I am PRASAD P HEGDE studying in final year M.B.A in Regional Institute of CoOperative Management, Bangalore. As a part of academic program I am pursuing a project work on the topic entitled " THE PROCESS OF ON-LINE TRADING with reference to INDIA INFOLINE LIMITED, Hence, I kindly request you to spare few minutes in answering the following questions. The information provided by you will be used only for academic purpose. I hope you will cooperate for this. REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 73
PRASAD P HEGDE
Qualification: (a) (c) Post Graduate Under Graduate (b) (d) Graduate others
5)
Occupation: (a) (c) Service Self employment (d) (b) others Business
6)
Do you currently invest a part of your income in trading? (a) Yes. (b) No
7)
What is your objective of investing in Shares, Bonds and Mutual Funds etc? (a) (c) To earn high profit To meet emergency (b) (d) To meet future needs If any other purpose
8)
Tick the investment option you are aware of: (a) Fixed / other Deposits (b) Insurance
9)
Do you know online Trading and how to buy and sell shares in online? (a) Yes (b) No
10)
Who can give better Advise for investment in online Trading? (a) (c) (e) Shares Brokers T.V. Channels Friends & Relations (b) Magazine
11)
12)
What factors influence you for investing in online trading? (a) (c) Returns Tax concession (b) (d) Liquidity more investment option
13) How often do you trade? (a) (c) (e) Regular Once in a week Other time (b) Occasionally (d) once in a month
15) Which more preferred to invest? (a) Long Term Investment b) Short term Investment
16) Have you heard about IIL Financial Services Ltd? (a) Yes (b) No
17)If yes, who influence you to deal with IIL Financial Services Ltd (a) News paper (c) T.V. Channels (d) (b) Magazine
18) Are you satisfied with the service provided by India infoline limited.? (a) Satisfied (c) Average 19) Your Opinion about the survey. __________________________________________________________ __________________________________________________________ ______________________________________________________ . (b) (d) High Satisfied Dissatisfied
CHAPTER -5
FINDINGS & SUGGESTIONS FINDINGS From the analysis we have found that most of the individual investors are other i.e. retired person & other persons because they know the advantages they get stock broking. Most of the people are high income group level. Most of the investor are occasional investor.
SUGGESTIONS: The company should give the best of services in its industry, so that customers get satisfies &they get the new customer, which would reduce the promotional costs & activities. The company should maintain a good relationship in realty & should render quick services according to the customers, in case of necessary. The companys preferences & objectives should be more equivalent from that of its customers.
CONCLUSION:
Issues like entry of large international players, interest rate changing technology, privatization, inflation, acquisition and political turmoils are facing Indias economy frequently and severally. In such an environment in IIL financial service ltd is performing on a consistent basis. It is not a result of luck, but service misfortune of the competitors but service schemes ltd. IIL financial service ltd sustained efforts are yielding superior long term result. The above study showed that most of the investors investment decision in on-line trading depended on advisory service of IIL financial service ltd, but they give more importance to risk, REGIONAL INSTITUTE OF CO-OPERATIVE MANAGEMENT,BENGALURU-70 79