SUMMER TRAINING REPORT

ON

A STUDY ON CUSTOMER SATISFACTION TOWARDS ONLINE SHARE TRADING WITH SPECIAL REFERENCE TO INDIA INFOLINE AT CHANDIGAR H
In partial fulfillment of the requirement for the award of degree

MASTER OF BUSINESS ADMINISTRATION (2010-2012)

SUBMITTED BY: Mr. KAMAL DEEP SINGH M.B.A. 3 sem Roll No. 604
rd

PDM COLLEGE OF ENGINEERING, BAHADURGARH

(AFFILIATED TO M.D.UNIVERSITY, ROHTAK)

ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task would be incomplete without mentioning the people who made it possible, whose consistent guidance and encouragement crowned the efforts with success. First and foremost I express my thanks to INDIA INFOLINE LTD. for selecting me as a trainee and giving me opportunity to work on this project .I wish to thank Mr. Harmeet Singh Relationship Manager for their valuable guidance and support and for encouraging me at every step.

I also give my cordial thanks to all the employees of IIFL for their cooperation and for sparing their precious time for me. I also wish to thank my faculty MS. Neetu for her continuous help and guidance. I wish to extend hearty thanks to each one of them.

DECLARATION
I, KAMAL DEEP SINGH Roll No. Six Hundred Four (604) M.B.A. Final year (III semester) of PDM college of Engineering hereby declare that the Summer Training Report entitled A STUDY ON CUSTOMER SATISFACTION TOWARDS
ONLINE SHARE TRADING WITH SPECIAL REFERENCE TO INDIA INFOLINE is an original work and the same has not been

submitted to any other institute for the award of any other degree. The interim report was presented to the supervisor on ____________ and the pre submission presentation was made on ______________. The feasible suggestions as approved by the faculty have been duly incorporated in consultation with the supervisor. Countersigned Signature of the supervisor Signature of Candidate

Forwarded by Director/ Principal

TABLE OF CONTENTS
S.NO. CONTENTS 1. INTRODUCTION 2. 3. 4. 5. 6. 7. 8. 9. 10. COMPANY PROFILE SIGNIFICANCE OF THE STUDY OBJECTIVES OF THE STUDY RESEARCH METHDOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS RECOMMENDATIONS AND SUGGESTIONS CONCLUSION LIMITATIONS PAGE NO.

BIBLIOGRAPHY ANNEXURE

INTRODUCTION

INTRODUCTION
The trading on stock exchanges in India used to take place through open outcry without use of information technology for immediate matching or recording of trades. This was time consuming and in efficient. This imposed limits on trading volumes and efficiency. In order to provide efficiency in order to provide efficiency, liquidity and transparency, NSE introduced a nation-wide on-line full automated Screen Based Trading System (SBTS) where a member can punch into the computer quantities of securities ant the prices at which he likes to transact and the transaction is executed as soon as it finds a matching sale or buy order from a counter party. SBTS is electronically matches on a strict /time priority and hence cuts down on time, cost and risk of error, as well as on fraud resulting in improved operational efficiency. It allows faster incorporation of price sensitive information into prevailing prices, thus increasing the informational efficiency of markets. It enables market participants, irrespective of their geographical locations, to trade with one another simultaneously, improving the depth and liquidity of the market. It provides full anonymity by accepting orders, big or small, from members without revealing their identity, thus providing equal access to everybody. It also provides a perfect audit trail, which helps to resolve disputes by logging in the trade execution process in entirety. This sucked liquidity from other exchanges and in the very first year of its operation, NSE became the leading stock exchange in the country, impacting the fortunes of other exchange in the country, impacting the fortunes of other exchanges and forcing them to adopt SBTS also. Today India can boast that almost 1005 trading take place through electronic order matching. The trading network in NSE has main computer, which is connected through very small terminal (VSAT) installed at its office. The main computer runs on a runs on a fault tolerant STRATUS main frame computer at the exchange. Brokers have terminal s installed at their premises, which are connected through VSATs/leased lines/modems. An investor informs a broker to place an order on his behalf. The broker enters the order through his pc which runs under Windows NT and sends signal to the satellite via VSAT/leased line/modem.

ABOUT THE TOPIC

Before getting in to online trading we should know some things about the internet, e-commerce and etc.

INTERNET:
Internet is a world wide, self-governed network connecting several other smaller networks and millions of computers and persons, to mega sources of information. This technology shrinks vast distances, accelerating the pace of business reforms and revolutionizing the way companies are managed. It allows direct, ubiquitous links to anyone where and anytime to build up interactive relationships. A combination of time and space called the internet promises to bring unprecedented changes in our lives and business. Internet or net is an interconnection of computer communication networks spanning the entire globe, crossing all geographical boundaries. It has re-defined the methods of communication ,work study, education, business, leisure health, trade , banking commerce and what not it is virtually changing every thing and we are living in dot.com age Net being an interactive two way medium, through various websites , enables participation by individuals in business to business and business to consumer commerce ,visits to shopping arcades games ,etc in cyber space even the information can be copied ,downloaded and retransmitted. The use of Internet has grown 2000 percent in last decade and is currently growing at 10%per month. In India, growth of Internet is of recent times. It is expected to bring changes in every functional area of business activity including management and financial services. It offers stock trading at a lower cost. Internet can change the nature and capacity of stock broking business in India.

E-COMMERCE

Electronic commerce is associated with buying and selling over computer communication networks .It helps conduct traditional commerce through new way of transferring and processing of information. Information is electronically transferred from computer to computer an automated way. E-commerce refers to the paperless exchange of business information using electronic data inter change, electronic technologies. It not only help reduces manual processes and paper transactions but also helps organization move to a fully electronic environment and change the way they operated. PCs and networking attempts to introduce banks of the tools and technologies required for commerce. The computers are either work stations of individual office works or serves where large data base and information reside. Network connects both categories of computers: the various operating systems are the most basis program within a computer. It manages the resources of the computer system in a fair and efficient manner. Now we can enter in to the concept known as online trading. In the past, investors had no option but to contact their broker to get real time access to market data. The net brings data to the investor on-line and net broking enables him to trade on a click of mouse .now information has become easily accessible to both retail as well as big investor.

EVOLUTION OF BROKING IN INDIA:

The evolution of a broking in India can be categorized in three phases Stockbrokers will offer on their sites features such as live portfolio manager, live quotes, market research and news, etc. to attract more investors. Brokers will offer online booking and relationship management by providing and offering analysis and information to investors during broking and non-broking hours based on their profile and needs ,i.e., customized services Brokers (now e-brokers) will offer value management or services like initial public offering online ,on-line asset allocation , portfolio management, financial planning , tax planning , insurance services, etc. and enables the investors to take better and well considered decisions

The actual definition of online trading is as explained below: Online Trading is a service offered to the internet for purchase and sale of shares. In the real world you place orders on your stockbroker either verbally (personally or the stockbrokers website through your internet enabled PC and place orders through the brokers internet based trading engine. These orders

are routed to the stock exchange without manual intervention and executed there on in a matter of a few seconds The net is used as a mode of trading in internet trading; Orders are communicated to the stock exchange through website.

IN INDIA:
Internet trading started in India on 1st April 2000 with 79 members seeking permission for Online trading .The SEBI committees on internet based securities trading services has allowed the net to be used as an Order Routing System (ORS) through registered stock brokers on behalf of their clients for execution of transaction under the ORS, the clients enters his requirement (security quantity, price BU/sell) on brokers site

Objectives:
Increase transparency in the markets Enhance market quality through improved liquidity Reduced Settlement risks due to open trade by elimination of mismatched Providers management information system. Introduce flexibility in system, so as to handle growing volumes easily and to support nationwide expansion of market activity. Besides , through internet trading three fundamental objectives of securities regulation can be easily achieved, these are: Investor protection telephonically or in a written form (fax), In online trading, you will access a Creation of a fair and efficient market, and Reduction of the systematic risks.

REQUIREMENTS FOR NET TRADING: FOR INVESTORS:

1. 2. 3. 4. 5. Installation of a computer with required specification. Installation of a modem Telephone connection Registration for on-line trading with broker A bank account

6. 7.

Depository account Compliance with SEBI guidelines for net trading

The following should be produced to get a demat account and online trading account: As identity proof: PAN card (mandatory) For address proof any one of the following: Voter ID card Driving license Ration card Bank pass book Telephone bill

Other requirements, which are necessary First page of the bank pass book and last 6 month statement. Bank managers signature along with banks seal, manager registration code on photograph.

For stock brokers:

1. 2. 3. 4. 5. 6. 7. 8. 9. Permission from stock exchange for net trading Net worth of Rs. 50 lack Adequate back up system System and reliable software system Adequate , experienced and trained staff Communication of order (trade confirmation to investor by e-mail) Use of authentication technologies Issue of contract notes within 24 hours of the trade execution Setting up a web site.

The net is used as a medium of trading in internet trading .Orders are communicated to the stock exchange through website. Internet trading started in India on 1st April 2000 with 79 members seeking permission for online trading. The SEBI committees on internet based securities trading services has allowed the net to be used as an Order Routing System (ORS) through registered stock brokers on behalf of their clients for execution of transaction. Under the Order Routing System the client enters his requirements (security, quantity, price, and buy/sell) in brokers site. They are checked electronically against the clients account and routed electronically to the appropriate exchange for execution of the order. The customers portfolio and ledger accounts get updated to reflect the transaction. The user should have the user id and password to enter into the electronic ring. He should also have demat account and bank account. The system permits only a registered client to log in

using user id and password. Order can be placed using place order window of the website.

Procedure for net trading

Step 1: Those investors, who are interested in doing the trading over internet system i.e. NEAT-IXS, should approach the brokers and get them self registered with the Stock Broker. Step 2: A personal identification number (PIN) Step 3: Actual placement of an order. An order can then be placed by using the place order window as under: 1. First by entering the symbol and series of stock and other parameters like quantity and price of the scrip on the place order window. 2. Second, fill in the symbol, series and the default quantity. Step 4: It is the process of review. Thus, the investor has to review the order placed by clicking the review option. He may also re-set to clear the values. Step 5: After the review has been satisfactory, the order has to sent by clicking on the send option. Step 6: The investor will receive an order Confirmation message along with the order number and the value of the order. Step 7: In case the order is rejected by the Broker or the Stock Exchange for certain reasons such as invalid price limit, an appropriate message will appear at the bottom of the screen. At present, a time lag of about 10 seconds is there in executing the trade. Step 8: It is regarding charging payment, for which there are different mode. Some brokers will take some advance payment from the investor and will fix their trading limits. When the trade is executed, the broker will ask the investor for transfer of funds to his account. Internet trading provides total transparency between a broker and an investor in a secondary market. In the open outcry system, only the broker knew the actually transacted price. Screen based trading provides more transparency. With online trading investors can see themselves the price at which the deal takes place. The time gap has narrowed in every stage of operation. Confirmation and execution of trade reaches the investor within the least possible time, mostly after registration, the broker will provide to them a log and personal identification number (PIN). The time gap has narrowed in every stage of operation. Confirmation and execution of trade reaches the investor within the least possible time, mostly in

name, Password within 30 seconds. Instant feedback is available about the execution. Some of the websites also offer; News and research report BSE and NSE movements Stock analysis IPO and mutual fund centers.

Step by step procedure in online trading:

Following steps explain the step by step approach to on-line trading: Log on to the stock brokers website Register as client/investor Fill the application form and client broker agreement form on the requisite value stamp paper Obtain user ID and pass word Log on to the brokers site using secure user ID and password Market watch page will show real time on-line market data Trade shares directly by entering the symbol or number of the security Brokers server will check your limit in the on-line account and demat account for the number of shares and execute the trade Order is executed instantly (10-30 seconds) and confirmation can be obtained. Confirmation is e-mailed to investor by broker Contract note is printed and mailed in 24 hours Settlement will take place automatically on the settlement day Demat account and the bank account will get debited and credited by electronic means.

ONLINE TRADING HAS LED TO ADDITIONAL FEATURES SUCH AS:

LIMIT / STOP ORDERS: Orders that can be go unfilled, but there is an extra charge for this leeway facility since one need to hold a price. Market orders: Orders can be filled at unexpected prices, but this type is much more risky, since you have to buy stock at the given price. Cash account: Where funds have to be available prior to placing the order. Margin account: Where orders can be placed against stocks, to increase purchasing power.

ONLINE TRADING ADVANTAGES:-

Trading online has revolutionized the stock markets. The main benefit of trading online is speed. There is no need dial up your broker, wait to speak somebody, and have him or her enter the order on their computer. As you can online imagine, the convenience of online trading attracts many Investors You can enter trade orders day or night, from any where in Cyberspace. The internet is full of advice, free technical analysis tools and commentary. You can formulate your own strategy and run investments yourself. Most online brokerages will take online orders for a commission of about $5 to $40 US

ONLINE TRADING DISADVANTAGES:If you are going to trade online you are obviously the one making all trading choices. To make your trading decisions, you need to research your stocks and constantly pay attention to market news. This will require sometime as you pursue your sources of market information and use online tools.

Meaning of demat:
A demat account allows you to buy, sell and transact shares without the endless paperwork and delays. It is also safe, secure and convenient.

What is Demat account?

Demat refers to a dematerialized account. Just as you have to open an account with a bank if you want to save your money, make cheque payments etc, you need to open a demat account if you want to buy or sell stocks. So it is just like a bank account where actual money is replaced by shares.

Why demat?
1. The demat account reduces brokerage charges. 2. It enables quick ownership of securities on settlement resulting in increased liquidity. 3. It avoids confusion in the ownership title of securities, and provides easy receipt of public issue allotments. 4. It also helps you avoid bad deliveries caused by signature mismatch, postal delays and loss of certificate in transit. 5. It eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation.

6. Demat account holders can also avoid stamp duty (as against 0.5 percent payable on physical shares), avoid filling up of transfer deeds.

Steps involved in opening a demat account:

Opening an individual demats account is a two-step process: 1. Approaching a DP and fill up the demat account-opening booklet. The web sites of the NSDL and the CDSL list the approved DPs. 2. We receive an account number and a DP ID number for the account.

The cost opening and holding a demat account.

1. 2. 3. 4. There are four major charges usually levied on a demat account: Account opening fee Annual maintenance fee Custodian fee Transaction fee. Depending on the DP, there may or may not be an opening account fee. Private Banks, such as ICICI Bank, HDFC Bank and UTI Bank, do not have one. Players such as Karvy Consultants and the State Bank if India do so. This fee is refundable

Account-opening fee

Annual maintenance fee

This is also known as folio maintenance charges, and is generally levied in advance.

Custodian fee
This fee is charged monthly and depends on the number of securities (international securities identification numbers ISIN) held in the account It generally ranges between Rs 0.5 to Rs 1 per ISIN on which the companies have paid one-time custody charges to the depository.

Transaction fee
The transaction fee is charged for crediting/debiting securities to and from the account on a monthly basis. While some DPs, such as SBI, charge a flat fee per transaction, HDFC Bank and ICICI Bank peg the fee to the transaction value, subject to a minimum amount. The fee also differs based on the kind of transaction (buying or selling). Both Service tax is also charged.

Demat Benefits:
The benefits are enumerated below: A safe and convenient way to hold securities; Immediate transfer of securities; No stamp duty on transfer of securities; Elimination of risks associated with physical certificates such as bad delivery, fake securities, delays, thefts etc.; Reduction in paperwork involved in transfer of securities; Reduction in transaction cost. No odd lot problem, even one share can be sold; Nomination facility; Change in address recorded with DP gets registered with all companies in which investor holds securities electronically eliminating the need to correspond with each of them separately; Transmission of securities is done by DP eliminating correspondence with companies; Automatic credit into demat account of shares, arising out of bonus/split/consolidation/merger etc. Holding investment in equity and debt instruments in a single account

BROKERS ADVANTAGES:1. Despite the popularity of online trading, not everybody uses the internet to trade stocks. 2. A broker can do everything from making all your stock trading decision for, to give you little advice on what to buy or sell. 3. If you want some investing help, or if you want somebody else to deal with everything, using a broker might be right for you, 4. Brokers are stock professionals; they watch the market and deal with customers like you everyday. 5. Brokers keep in touch with a network of other professional, so news and knowledge constantly come their way. 6. Finally, your broker may offer services other than just trading stocks. If you want you can find a broker that will manage your taxes estate and business. 7. The personal attention available from broker who knows your full financial situation is very calculable.

BROKERS DISADVANTAGES

1. Taking a percentage of your assets under management, making stock traders taking a flat fee. 2. However I must stress that the brokerage industry is highly regulated and most brokers act with integrity, nonetheless, it is best to be aware of the risks. 3. Get a feel for how much time broker spends marketing and how much attention your asset will receive. 4. If your broker gets a paid commission for trading, keep in mind that there may be a conflict of interest. 5. Make sure your broker can consistently justify and all stock trades. 6. Find out about your brokers background and interests to see if he or she is a good match. 7. Finally, live brokers are more expensive than online brokers. Their presence and personal attention command a price.

IMPACT OF ONLINE TRADING ON THE MARKET:On the number of transaction

The number of transaction has increased considerably after introduction of the online trading system. The factor of influence could be: 1. The case of the operation from the point of view of both the members and investors. 2. Facilities better monitoring of the market by the market operations department. 3. The daily that the best price is achieved in buying and selling.

OUTCRY SYSTEM:
The broker has to buy or sell securities for which he has received the orders. For this, the broker or his authorized representatives goes to the stock exchange. This method is called the open outcry system. Basically the brokers shout while buying or selling the securities. The floor of the stock exchanged is divided into a number of markets also known as post pit or wing based on particular securities dealt there. In the post pit or wing, the broker using open outcry methods makes an offer or bid price. For making the necessary bargain, he quotes his purchase or sale price, also known as offer or bid price. The dealer, to whom the price is quoted, quotes his own price when the quotation of the dealer suits the broker, he may loose the bargain. If he is not satisfied with the quote price, he may turn to some other dealer. On the close of the bargain, the dealer as well as the broker makes a brief note of the particulars of the deal. Such notes are made on some pad and on it the number of shares, the price agreed upon, the name of the party, what membership number etc., are noted.

Pending sell orders would be displayed on your screen On execution of your orders

The given flowchart clearly explains the process of online trading:

Pending buy orders would be displayed on your screen The system will check buying limit Sell transaction Buy transaction Login

The system will check your DP account quantity

Orders rejected

Rejected orders would be communicated along with reasons Orders accepted

Your order is transmitted to exchange for execution

You may edit your pending order You may delete your pending order You may edit your pending order You may delete your pending order

Flashed on your screen immediately on execution Contract note would be sent to by mail or hand delivery

Conformation could be send to your e-mail and mobile.

NATIONAL SECURITIES DEPOSITORY LIMITED(NSDL)

NSDL was inaugurated in 1996, as the first depository in the country to avoid the myriad problems in settlements. In the depository system, securities are held in securities (depository) accounts, which is more or less similar to holding funds in bank account. Transfer of ownership is done through simple account transfer. Trading is dematerialized securities in quite similar to trading in physical securities.

Exclusively Demat follows rolling settlement (T + 2) cycle and unified segment follows account period settlement cycle. From Jan 4, 1999, all categories of investors can deliver only in dematerialized form with respect to a select list of securities. In a span of about nine years, investors have switched over to electronic [demat] settlement and National Securities Depository Limited (NSDL) stands at the centre of the change. In order to provide quality service to the users of depository, NSDL launched a certification programmed in depository operations in May 1999. This certification is conducted using NCFM infrastructure created by NSE and is called NSDL Depository Operations module. The programmed is aimed at certifying whether an individual has adequate knowledge of depository operations, to be able to service investors. Depository Participant are required to appoint at least one person who has qualifies in the certification programmed at each of their service centers. This hand book is meant to help the candidates in their preparation for the certification programmed. This handbook has been divided into four volumes for readers convenience. The first volume gives an overview of the Indian capital market and NSDL depository system. The second volume deals with admission procedure for different business partners of NSDL, their obligations practices, systems and procedures to be followed by them and benefits and safety of depository system. The third volume helps in acquiring a working level understanding of certain basic services offered by NSDL like account opening, dematerialization, and transfer of securities and related operations. The last volume deals with special services offered by NSDL like pledge, Stock Lending and Borrowings, Corporate Actions, National Savings Certificates / Kisan Vikas Patra (NSC/KVP) IN DEMAT FORM, Warehouse Receipts, Market Participants and Investor database (MAPIN) and Tax Information Network (TIN). Procedures explained in the handbook are based on the Depositories Act, Securities and Exchange Board of India (Depositories & Participants) Regulations and Byelaws &Business Rules of NSDL. The book contains illustrations, flow charts and checklists for better understanding of various concepts and procedures. A sample test paper is given at the end of the fourth volume to help the candidates appearing for NCFM test form an assessment of their preparedness. A thorough understanding of this handbook will form a good base for qualifying the certification test. Readers may like to visit NSDL website www.nsdl.co.in for updates and to know the new procedures introduced or changes brought about in the existing procedures. A feedback form is given at the end of the fourth volume. Readers may give their feedback, which will be of great help in enhancing the value of this Handbook in its subsequent editions.

Following diagram gives the structure of Indian financial system:

Indian financial system

Secondary Money market

Capital market

Non Banking

Banking

Financial Institutions Financial Markets

Financial Instruments Financial Services

Primary

Organized Unorganized

Short term Medium term Long term

Secondary Primary

FINANCIAL MARKET:
Financial markets are helpful to provide liquidity in the system and for smooth functioning of the system. These markets are the centers that provide facilities for buying and selling of financial claims and services. The financial markets match the demands of investment with the supply of capital from various sources. According to functional basis financial markets are classified into two types. They are: Money markets (short-term) Capital markets (long-term) According to institutional basis again classifies in to two types. They are: Organized financial market Non-organized financial market. The organized market comprises of official market represented by recognized institutions, bank and government (SEBI) registered/controlled activities and intermediaries. The unorganized market is composed of indigenous bankers, moneylenders, individual professional and non-professional.

MONEY MARKET:

Money market is a place where we can raise short-term capital for a period of less than one year. Some of the instruments money market are given below. Again the money market is classified in to types: They are: Inter bank call money market Bill market and Bank loan market etc. E.g.; treasury bills, commercial papers ,CDs etc

CAPITAL MARKET:

Capital market is a place where we can raise long-term capital. Again the capital market is classified into two types and they are Primary market and Secondary market. E.g.: Shares, Debentures, and loans etc.

PRIMARY MARKET:
Primary market is generally referred to the market of new issues or market for mobilization of resources by the companies and government undertakings, for new projects as also for expansion, modernization, addition, and diversification and up gradation. Primary market is also referred to as New and existing companies, further and right issues to existing shareholders, public offers, and issues of debt instruments such as debentures, bonds, etc. The primary market is regulated by the Securities and exchange Board of India (SEBI a government regulated authority).

FUNCTIONS:
The main services of the primary market are origination, underwriting, and distribution. Organization deals with the origin of the new issue. Underwriting contract make the shares predictable and remove the element of uncertainty in the subscription. Distribution refers to the sales of securities to the investors. 1. 2. 3. 4. 5. 6. 7. The following are the market intermediaries associated with the market: Merchant banker/book building lead manager Registrar and transfer agent Underwriter/broker to the issue Adviser to the issue Banker to the issue Depository Depository participant Investors protection in the primary market:

To ensure healthy growth of primary market the investing public should be protected. The term investors protection has a wider meaning in the primary market. The principal ingredients of investors protection are: Provision of all the relevant information Provision of accurate information and Transparent allotment procedures without any bias.

SECONDARY MARKET:
The primary market deals with the new issues of securities. Outstanding securities are traded in the secondary market, which is commonly known as stock market or stock exchange. The secondary market is a market where scrips are traded. It is a market place which provides liquidity to the scrips issued in the primary market. Thus, the growth of secondary market depends on the primary market. More the number of companies entering the primary market, the greater are the volume of trade at the secondary market. Trading activities in the secondary market are done through the recognized stock exchange which are 23 in numbers including Over the Counter Exchange of India (OTCE), National Stock Exchange of India and Interconnected Stock Exchange of India. Secondary market operations involve buying and selling of securities on the stock exchange through its members. The companies hitting the primary market are mandatory to list their shares on one or more stock exchanges in India. Listing of scrips provides liquidity and offers an opportunity to the investor to buy or sell the scrips.

1. 2. 3. 4. 5. 6.

The following are the intermediaries in the secondary market: Broker/member of stock exchange buyers broker and sellers broker. Portfolio manager Investment advisor Share transfer agent. Depository. Depository participants.

REGULATORY FRAME WORK OF STOCK EXCHANGE:

A comprehensive legal frame work was provided by the Securities Contract Regulation Act, 1956 and Securities Exchange Board of India 1952. Three tier regulatory structure comprising Ministry of finance The securities and Exchange Board of India Governing body Members of the stock exchange: The securities contract regulation act 1956 has provided uniform regulation for the admission of members in stock exchanges. The qualifications for becoming a member of a recognized stock exchange are given below: The minimum age prescribed for the member is 21 years. He should be an Indian citizen. He should be neither a bankrupt nor compound with the creditors. He should not be convicted for fraud or dishonesty. He should not be engaged in any order business connected with a company. He should not be a defaulter of any other stock exchange. The minimum required education is a pass in 12th standard examination.

SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI):

The SECURITIES AND EXCHANGE BOARD OF INDIA (SEBI) was constituted in 1988 under a resolution of government of India. It was later made statutory body by the SEBI act 1992 according to this act, the SEBI shall constitute of a chairman and four other members appointed by the central government. With the coming into effect of the securities and securities and exchange board of India act, 1992 some of the powers and functions exercised by the central government, in respect of the regulation of stock exchange were transferred to the SEBI.

SEBI GUIDELINES TO SECONDARY MARKET: (STOCK EXCHANGES);

Board of Directors of Stock Exchange has to be reconstituted so as to include non-members, public representatives and government representatives to the extent of 50% of total number of members. Capital adequacy norms have been laid down for the members of various stock exchanges depending upon their turnover of trade and other factors. All recognized stock exchanges will have to inform about transactions within 24 hrs.

ROLLING SETTLEMENT SYSTEM:

Under rolling system takes place n days (usually 1, 2, 3 or 5days) after the trading day. The shares bought and sold are paid in for n days after the trading day of particular transaction than under the fixed settlement system. The rolling settlement system is noted by T + N i.e. the settlement period is n days after the trading day. A rolling period which offers a large number of days negates the advantages of the system. Generally longer settlement periods are shortened gradually. SEBI made RS compulsory for trading selected on the basis of the criteria that they were in compulsory demat list and had daily turnover of about Rs.1 crore or more. Then it was extended to A stocks in Modified Carry Forward Scheme, Automated Lending and Borrowing Mechanism (ALBM) and borrowings and Lending Securities Scheme (BELSS) with effect from Dec 31, 2001. SEBI has introduced T + 5 rolling settlement in equity market from July 2001 and subsequently shortened the cycle to T + 3 from April 2002. After the T + 3 rolling settlement experience it was further reduced to T + 2 to reduce the risk in the market and to protect the interests of the investors from 1st April 2003. Activities on T + 1: Confirmation of the institutional trades by the custodian is sent to the stock exchange by 11.00 am. A provision of an exception window would be available for late confirmation. The time limit and the additional changes for the exception window are dedicated by the exchange. The exchanges/clearing house/ clearing corporation would process and download the obligation files to the brokers terminals late by 1.30 p.m. on T + 1. Depository participants accept the instructions for pay in securities by investors in physical form upto 4 p.m. and in electronic form upto 6 p.m. the depositories accept form other DPs till 8p.m for same day processing. Activities on T + 2:

The depository permits the download of the paying in files of securities and funds till 10.30 am on T + 2 from the brokers pool accounts. The depository processes the pay in requests and transfers the consolidated pay in files to clearing House/clearing Corporation by 11.00am/on T + 2. The exchange/clearing house/clearing corporation executes the pay-out of securities and funds latest by 1.30 p.m. on T + 2 to the depositories and clearing banks. In the demat mode net basis settlement is allowed. The buy and sale positions in the same scrip can be settles and net quantity has be settled.

Stock Exchange
Stocks (Shares, equity) are traded in stock exchange. India has two big stock exchanges (Bombay Stock Exchange - BSE and National Stock Exchange - NSE) and few small exchanges like Jaipur Stock Exchange etc. Click here to see the list of Stock Exchanges in India Investor can trade stocks in any of the stock exchange in India.

Stock Broker
Investor requires a Stock Broker to buy and sell shares in stock exchanges (BSE, NSE etc.). Stock Broker are registered member of stock exchange. A stock broker can register to one or more stock exchanges. Only stock brokers can directly buy and sell shares in Stock Market. An investor must contact a stock broker to trade stocks. Broker charge commissions (brokerages) for their service. Brokerage is usually a percent of total amount of trade and varies from broker to broker.

Stock Trading
Traditionally stock trading is done through stock brokers, personally or through telephones. As number of people trading in stock market increase enormously in last few years, some issues like location constrains, busy phone lines, miss communication etc start growing in stock broker offices. Information technology (Stock Market Software) helps stock brokers in solving these problems with Online Stock Trading. Online Stock Market Trading is an internet based stock trading facility. Investor can trade shares through a website without any manual intervention from Stock Broker. In this case these Online Stock Trading companies are stock broker for the investor. They are registered with one or more Stock Exchanges. Mostly Online Trading Websites in India trades in BSE and NSE.

There are two different type of trading environments available for online equity trading. Installable software based Stock Trading Terminals
These trading environments require software to be installed on investors computer. These software are provided by the stock broker. These softwares require high speed internet connection. This kind of trading terminals are used by high volume intra day equity traders. Below is the detail comparison of major Online Stock Market Trading websites in India. This comparison is to help investor to take calculated decision while searching for new trading portal. 1. ICICIDirect 2. Sharekhan 3. India bulls 4. 5Paisa 5. Motilal Oswal Securities 6. HDFC Securities 7. Reliance Money 8. IDBIPaisaBuilder 9. Religare 10. Geojit 11. Networth Stock Broking 12. Kotak Securities 13. Standard Chartered-STCI Capital Markets Ltd 14. Angel Trade 15. HSBC Invest Direct

BOMBAY STOCK EXCHANGE (BSE):

This stock exchange, Mumbai, popularly known as BSE was established in 1857 as The Native share and stock brokers association as a voluntary non-profit making associations. It has an evolved over the years into its present status as the premier stock exchange in the country. It may be not that the stock exchanges the oldest one in Asia, even than the Tokyo Stock Exchange, which was founded in 1878. The exchange, while providing an efficient and transparent market for trading in securities, upholds the interests of the investors and ensures of their grievances, whether against the companies or its own member brokers. It also strives to educate and enlighten the investors by making available necessary informative inputs and conducting investors education programmers. A governing board comprising of 9 elected directors 2 SEBI nominees, 7 public representative and executive directors, 2 SEBI nominees, 7 public representative and executive director is the apex body, which decides the policies and regulates the affairs of the exchange. The executive director as the chief executive officer is responsible for the day to day administration of the exchange. The average daily turnover of the exchange during the year 2000-01 (April March) was Rs.3.984.16 crores and average number of daily trades 5.69 lakhs. The Ban on all deferral products like BLESS AND ALBM in the Indian capita Markets by SEBI with effect from 2001, abolition period settlements and introduction of compulsory ruling settlements in all scripts traded on the exchanges with effect from December 31, 2001 etc, have adversely impacted the liquidity and consequently there is a considerable decline in the daily turnover at the exchange. The average daily turnover of the exchange present scenario is 110363 (lakhs) and number of average daily trade 1057 (lakhs).

BSE INDICES:
In order to enable the market participants, etc, to track the various ups and downs in the Indian stock market, the exchange have introduced in 1986 and equity stock index

called BSE SENSEX that subsequent became the barometer if the moments of the share prices in the Indian stock market. It is a Market capitalization weighted index of 30 companies. The base year of Sensex is 1978-79 .The Sensex is widely reported in both domestic and international market through print as well as electronic media. Sensex is calculated using a market capitalization weighted method. As per this methodology, the level of the index reflects the total market value of all 3 component stocks from different industries related to particular base period. The total market value of the company is determined by multiplying the price of its stock by the number of shares outstanding. Statisticians call a index of a set of combined variables (such as price and number of shares) a composite index. It is much easier to graph a chart based on indexed values than one based on actual values worked over majority of the well known indices are constructed using Market capitalization weighted method. In practice, the daily calculation of SENSEX is done by dividing the aggregate market value of the 30 companies in the index by a number called the index Devisor. The devisor is the only link to the original base period value of the sensex. The divisor keeps the index comparable over a period of time and if the reference point for the entire index maintains adjustments. SENSEX is widely used to describe the mood in the Indian Stock Markets. Base year average is changed as per the formula new base year average =old base year average*(new market value/old market value).

NATIONAL STOCK EXCHANGE (NSE):

The NSE was incorporated in November 1992 with an equity capital of Rs. 25 crores. The International Securities Consultancy (ICS) of Hong Kong has helped in setting up NSE. ISE has prepared detailed business plans and installation of hardware and software systems. The promotions for NSE were financial institutions, insurances companies, banks and SEBI Capital Market Ltd. It has been set up to strengthen the move towards professionalizing of the capital market was well as provide nation wide securities facilities to investors. NSE is not an exchange in the traditional sense where brokers own and manage the exchange. A two tier administrative set up involving a company board and a governing board envisaged. NSE is a national market for shares PSU bonds, debentures and government securities since infrastructure and trading facilities are provided.

NSE MIDCAP INDEX:

The NSE midcap index or the junior Nifty comprises 50 that represents 21 abroad industry groups and will provide proper representation of the midcap segment of the Indian Capital Market. All stocks in the index should have

market capitalization of greater than Rs 200 crores and should have traded 85% of the trading says at the impact cost less 2.5% The base period for the index is November 4 , 1996, which signifies two years for completion of operation of the capital market segment of the operations. The base value of the index has been set at 1000. At present there are 24 stock exchanges recognized under the securities contract (regulations) Act, 1956. They are
th

Name of the Stock Exchange year Bombay Stock Exchange 1875 Ahmadabad share & stock brokers association 1957 Calcutta Stock Exchange Association Ltd 1957 Delhi Stock Exchange Ltd 1957 Madras Stock Exchange Association Ltd 1957 Indore Stock brokers Association Ltd 1958 Bangalore Stock Exchange 1963 Hyderabad Stock Exchange 1943 Cochin Stock Exchange 1978 Pune Stock Exchange 1982 UP Stock Exchange 1982 Ludhiana Stock Exchange 1983 Jaipur Stock Exchange Ltd 1983-84 Gauhati Stock Exchange Ltd 1984 Mangalore Stock Exchange Ltd 1985 Maghad Stock Exchange Ltd, Patna 1986

Bhubaneshwar Stock Exchange Association Ltd 1989 Over the counter Exchange India, Bombay 1989 Saurastra Kuth Stock Exchange Ltd 1990 Vadodard Stock Exchange Ltd 1991 Coimbatore Stock Exchange Ltd 1991 The Meerut Stock Exchange 1991 National Stock Exchange 1991 Integrated Stock Exchange 1999

COMPANY PROFILE

COMPANY PROFILE
India Infoline was launched on 11 may 1999 with SEBI REGN. NO. : INB 231097537 &CODE NO. : 10975, Regd. &Dealing Office :Building No. 24 1 Floor Nirlon Compound, Western Express Highway, Goreagaon (e) Mumbai -400 063.www.indiainfoline.com is Indias leading and most comprehensive business and financial information and analysis earlier restricted to a few people to the common man absolutely free. The site met with an overwhelming response and has been reviewed as the most comprehensive financial content website in India by BBC World Money watch, Business World, Business line and others. The company also won the Golden Mouse Award in India Internet World 2000 for the Best Finance site. In May 2001, our website was included in top 200 Best of the web list by Forbes Global under the Asias investing category. We were the only website from India to be featured in any category. Since then it has been nominated twice to this list. In its last review, Forbes editors have said. www.indiainfoline.com is a must read for the investors in South Asia... Our research is also disseminated electronically through Bloomberg, Investext, First Call/Thomson Financial and internet securities. On First call/Thomson Financial, We have been one of the largest read research houses from Asia, which is a testimony to the quality and timeliness of our reports. The offerings on the site include a combination of information and transaction services. Transaction services include mutual funds. Personal loans and online broking through www.5paisa .com. India Infoline was the first company to offer many of these services in the country. In online broking, we have emerged as a leading player offering online trading facility with significant market share. As on date, the Group employs 4000 plus employees, most of them are placed at its various branches across India. About INDIA INFOLINE. It is a one-stop financial services shop, most respected for quality of its advice, personalized service and cutting edge technology
st

The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE: INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian financial services space. IIFL offers advice and execution platform for the entire range of financial services covering products ranging from Equities and derivatives, Commodities, Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment Banking, GoI bonds and other small savings instruments. IIFL recently received an in-principle approval for Securities Trading and Clearing memberships from Singapore Exchange (SGX) paving the way for IIFL to become the first Indian brokerage to get a membership of the SGX. IIFL also received membership of the Colombo Stock Exchange becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website, www.indiainfoline.com, which is one of Indias leading online destinations for personal finance, stock markets, economy and business. IIFL has been awarded the Best Broker, India by FinanceAsia and the Most improved brokerage, India in the AsiaMoney polls. India Infoline was also adjudged as Fastest Growing Equity Broking House - Large firms by Dun & Bradstreet. A forerunner in the field of equity research, IIFLs research is acknowledged by none other than Forbes as Best of the Web and a must read for investors in Asia. Our research is available not just over the Internet but also on international wire services like Bloomberg, Thomson First Call and Internet Securities where it is amongst one of the most read Indian brokers. A network of over 2,500 business locations spread over more than 500 cities and towns across India facilitates the smooth acquisition and servicing of a large customer base. All our offices are connected with the corporate office in Mumbai with cutting edge networking technology. The group caters to a customer base of about a million customers, over a variety of mediums viz. online, over the phone and at our branches.

VISION

Its vision is to be the most respected company in the financial services space India Infoline Ltd. India Infoline Ltd is listed on both the leading stock exchanges in India, viz, the Stock Exchange, Mumbai (BSE) and the National Stock exchange (NSE). The Infoline group, comprising the holding company, India Infoline 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 Infoline also owns and manages the websites, www.indiainfoline.com and www.5paisa .com

HISTORY AND MILESTONE

1995 Commenced operations as an Equity Research firm 1997 Launched research products of leading Indian companies, key sectors and the economy Client included leading FIIs, banks and companies. 1999 Launched www.indiainfoline.com 2000 Launched online trading through www.5paisa.com Started distribution of life insurance and mutual fund 2003 Launched proprietary trading platform Trader Terminal for retail customers 2004 Acquired commodities broking license Launched Portfolio Management Service 2005 Maiden IPO and listed on NSE, BSE

2006 Acquired membership of DGCX Commenced the lending business 2007 Commenced institutional equities business under IIFL Formed Singapore subsidiary, IIFL (Asia) Pte Ltd 2008 Launched IIFL Wealth Transitioned to insurance broking model

2009 Acquired registration for Housing Finance SEBI in-principle approval for Mutual Fund Obtained Venture Capital license 2010 Received in-principle approval for membership of the Singapore Stock Exchange Received membership of the Colombo Stock Exchange

IIFL (India Infoline Ltd) - Corporate Structure

Board of directors
Mr. Nirmal Jain Chairman , India Infoline Ltd. Mr. Nirmal Jain is the founder and Chairman of India Infoline Ltd. He is a PGDM (Post Graduate Diploma in Management) from IIM (Indian Institute of Management) Ahmedabad, a Chartered Accountant and a rank-holder Cost Accountant. His professional track record is equally outstanding. He started his career in 1989 with Hindustan Lever Limited, the Indian arm of Unilever. During his stint with Hindustan Lever, he handled a variety of responsibilities, including export and trading in agrocommodities. He contributed immensely towards the rapid and profitable growth of Hindustan Levers commodity export business, which was then the nations as well as the Companys top priority. He founded Probity Research and Services Pvt. Ltd. (later re-christened India Infoline) in 1995; perhaps the first independent equity research Company in India. His work set new standards for equity research in India. Mr. Jain was one of the first entrepreneurs in India to seize the internet opportunity, with the launch of www.indiainfoline.com in 1999. Under his leadership, India Infoline not only steered through the dotcom bust and one of the worst stock market downtrends but also grew from strength to strength.

Mr. R. Venkataraman Managing Director , India Infoline Ltd.

Mr. R Venkataraman, Co-Promoter and Executive Director of India Infoline Ltd, is a B.Tech (electronics and electrical communications engineering, IIT Kharagpur) and an MBA (IIM Bangalore). He joined the India Infoline Board in July 1999. He previously held senior managerial positions in ICICI Limited, including ICICI Securities Limited, their investment banking joint venture with J P Morgan of US, BZW and Taib Capital Corporation Limited. He was also the Assistant Vice President with G E Capital Services India Limited in their private equity division, possessing a varied experience of more than 19 years in the financial services sector Mr. Nilesh Vikamsey Independent Director , India Infoline Ltd. Mr. Nilesh Vikamsey Board Member since February 2005 - is a practicing Chartered Accountant for 25 years and Senior Partner at M/s Khimji Kunverji & Co., Chartered Accountants, a member firm of HLB International, a world-wide organisation of professional accounting firms and business advisers, ranked amongst the top 12 accounting groups in the world. Mr. Vikamsey headed the audit department till 1990 and thereafter also handled financial services, consultancy, investigations, mergers and acquisitions, valuations and due diligence, among others. He is elected member of the Central Council of Institute of Chartered Accountant of India (ICAI), the Apex decision making body of the second largest accounting body in the world, 20102013. He is on the ICAI study group member for the introduction of the Accounting Standard 30 on financial instruments recognition and management. Convener of the Study group Formed by ASB of ICAI to formulate comments on various Exposure Drafts, Discussion Papers and other matters pertaining to IFRS originating from IASB, Representative of the Institute of Chartered Accountants of India on the Committee for Improvement in Transparency, Accountability and Governance(ITAG) of South Asian Federation of Accountants (SAFA), Member of Executive Committee & IFRS Implementation Committee of WIRC of Institute of Chartered Accountant of India (ICAI), Accounting and Auditing Committee of Bombay Chartered Accountant Society (BCAS) and also on its Core Group, member of Review, Reforms & Rationalisation Committee, IPR Committee of Bombay Chamber of Commerce and Industry (BCCI), Member of Legal Affairs Committee of Bombay Chamber of Commerce and Industry(BCCI), Corporate Members Committee of The Chamber of Tax Consultants (CTC), Regular Contributor to WIRC Annual Referencer on Bank Branch Audit, Study/ Sub Group formed by ICAI for Considering Developments on Fair Value

Accounting (AS 30) post Sub Prime crisis, Sub Group formed by ICAI for approaching the Government and Regulatory Authorities for Convergence with IFRS. He is also a Vice Chairman of Financial Reporting Review Board Accounting Standard Board and Member of Accounting Standard Board and various other Standing and Non Standing Committees. Mr. Vikamsey is also a Director of Miloni Consultants Private Limited, HLB Offices and Services Private Limited, Trunil Properties Private Limited, BarKat Properties Private Limited and India Infoline Investment Services Limited. Mr. Kranti Sinha Independent Director , India Infoline Ltd. Mr. Kranti Sinha Board member since January 2005 completed his masters from the Agra University and started his career as a Class I Officer with Life Insurance Corporation of India. He served as the Director and Chief Executive of LIC Housing Finance Limited from August 1998 to December 2002 and concurrently as the Managing Director of LICHFL Care Homes (a wholly-owned subsidiary of LIC Housing Finance Limited). He retired from the permanent cadre of the Executive Director of LIC; served as the Deputy President of the Governing Council of Insurance Institute of India and as a member of the Governing Council of National Insurance Academy, Pune apart from various other such bodies. Mr. Sinha is also on the Board of Directors of Hindustan Motors Limited and Cinemax (India) Limited.

Mr. A. K. Purwar Independent Director , India Infoline Ltd. Mr. Purwar is currently the Chairman of IndiaVenture Advisors Pvt. Ltd., investment manager to IndiaVenture Trust Fund I, the healthcare and life sciences focussed private equity fund sponsored by the Piramal Group. He has also taken over as the Chairman of IL & FS Renewable Energy Limited in March 2008 and India Infoline Investment Services Ltd in November 2009. He is working as Independent Director in leading companies in Telecom, Steel, Textiles, Power, Auto components, Renewable Energy, Engineering Consultancy, Financial Services and Healthcare Services. He is an Advisor to Mizuho Securities in Japan and is also a member of Advisory Board for Institute of Indian Economic Studies (IIES), Waseda University, Tokyo, Japan. Mr. Purwar was the Chairman of State Bank of India, the largest bank in the country from November 02 to May 06 and held several important and critical positions like Managing Director of State Bank of Patiala, Chief Executive Officer of the Tokyo branch covering almost the entire range of commercial banking operations in his illustrious career at the bank from 1968 to 2006. Mr. Purwar also worked as Chairman of Indian

Bank Association during 2005 2006. Mr. Purwar has received the CEO of the year Award from the Institute for Technology & Management (2004); Outstanding Achiever of the year Award from Indian Banks Association (2004); Finance Man of the Year Award by the Bombay Management Association in 2006.

Company Structure
India Infoline Limited is listed on both the leading stock exchanges in India, viz. the Stock Exchange, Mumbai (BSE) and the National Stock Exchange (NSE) and is also a member of both the exchanges. It is engaged in the businesses of Equities broking, Wealth Advisory Services and Portfolio Management Services. It offers broking services in the Cash and Derivatives segments of the NSE as well as the Cash segment of the BSE. It is registered with NSDL as well as CDSL as a depository participant, providing a onestop solution for clients trading in the equities market. It has recently launched its Investment banking and Institutional Broking business.

* 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 Ltd, being a listed entity, is regulated by SEBI (Securities and Exchange Board of India). It undertakes equities research which is acknowledge by none other than Forbes as Best of the Web and a must read for investors in Asia. India Infolines 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 of business and hence are governed by different regulator. The subsidiaries of India Infoline Ltd are 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 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 client.

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 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 memberships of DGCX. We have a multi-channel delivery model, making it among the select few to online as well as offline trading facilities.

India Infoline 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 helps 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 cheque 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 Mortgage & Loans IILD has also entered the business on 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 Infoline Insurance Services Ltd

India Infoline Insurance Ltd is also a 100% subsidiary of India Infoline 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 Indias largest private Life Insurance Company

INDIA INFOLINE INVESTMENT SEVICES LTD

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

India Infoline Insurance Brokers Ltd

India Infoline Insurance brokers Ltd is a 100% subsidiary of India Infoline 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.

SERVICES OFFERED BY INDIA INFOLINE:

Heres look at the rocketing list of whats on offer from The India Infoline Group:

EQUITY TRADING AND STOCK BROKING:Cash and Derivatives segment. Member BSE and NSE, DP with NSDL.

PORTFOLIO MANAGEMENT:SEBI-Registered, backed by a pool of analysis with over 200 man-years in managing portfolios

RESEARCH &ANALYSIS:Exhaustive information and data mining, covering the spectrum of Indian business, industry and financial markets.

MUTUAL FUNDS:Primary agent for the entire phalanx of leading funds. Something to suit every risk profile.

LIFE INSURANCE:Leading corporate agent of ICICI Prudential life insurance Company miles ahead of the runner-up!

COMMODITIES BROKING:Member of the Multi-commodities Exchange (MCX) Again, rock-bottom brokerage and quality research support. Fixed Income Instruments: From Fixed deposits, Post Office Saving schemes to RBI Tax saving and Infrastructure Bonds.\ India Infoline Ltd Press Release Financial Results: Q3 FY09

Mumbai, India India Infoline quarterly income and net profit at INR2304Mn and INR297.8Mn Results (consolidated) for the quarter ended December 31, 2009 Income for the quarter at INR 2.3bn, down 26% yoy Net profit* for the quarter at INR 297.8mn, down 54% yoy EBIDTA margins in Q3FY09 at 26.4% as compared to 39.6% in Q3FY08 The Board approves an Interim dividend of Rs2.80 per share

Summary consolidated financials: (INR Mn) Quarter Quarter Growth% Nine months Nine months Growth% ended ended Year-on- Ended Ended Year-onDec.31,2009 Dec.31,2008 Year Dec.31,2009 Dec.31,2008 Year Growth% Year-on- year Income 2304.0 3106.7 (26%) 7761.2 6393.8 21% EBIDTA 608.9 1230.5 (51%) 2486.2 2345.2 6% PBT 453.6 1020.1 (56%) 1904.0 1900.2 0% PAT* 297.8 651.4 (54%) 1195.3 939.9 27%

Shareholding Pattern
Type of Share Holders Shares

Foreign 78,232,566 Institutions 57,843,332 Govt Holding 0 Non Promoter Corporate Holding 11,528,968 Promoters 95,655,532 Public & others 40,139,602 Total 283,400,00 0

27.6% 20.4% 0.0% 4.1% 33.8% 14.2% 100.0 %

SIGNIFICANCE OF THE STUDY

SIGNIFICANCE OF THE STUDY Capital Markets play a vital role in the development of the economy and stock exchanges are the integral part of the capital market. With the advance in Information Technology, age-old methods of stock trading are gradually fading out. They are replaced by the easier and hassle-free method of trading On-line through Internet. This study is carried out to explore the changes occurring in stock exchange with the advancements in the information technology. The major need for this study is to know the effectiveness of online system in comparison with the outcry system. More emphasis is given to bring out the process of online trading behind the screen and its advantages. The study also includes the emergence of the depository system in the country to rule out the drawbacks of the system of physical transfer of the shares.

OBJECTIVES OF THE STUDY

OBEJECTIVES
To know the on-line screen based trading systems and its communication facilities for the appropriate configuration to set network. The purpose of the study is to understand the complete Gambit of Online Trading. It is to study the functions of INDIA INFOLINE through various departments. To know about the latest and future development in the stock exchange trading system.

RESEARCH METHODOLOGY Research design

In the present research study the aim was to know the feedback about online trading process for which a scheduled questionnaire of 10 questions was prepared, the data was collected and the responses were recorded. In this project I have used descriptive research design because it describes new ideas and events.

Sampling design
The sampling design adopted in the research was simple random sampling technique and the respondents were selected on a random basis.

Data collection method

Primary Data: The data collected was mainly primary data as it was collected directly from the clients through interviews and questionnaire. Secondary Data: The secondary data was collected from various websites, quarterly nine report of India Infoline, Journals etc.

SAMPLING METHOD
Sampling unit: The sampling unit of the study is clients and customers of India Infoline. Size of the sample: The sample size in the study is 100 people in India Infoline.

DATA ANALYSIS AND INTREPRETATION

Q1.Do you trade online or not? OPINION Response No 20 Yes 80 Total 100

Interpretation The total number of people who trade online out of 100 is 80 people. The total number of people who does not trade online 20.

q2.Do you feel online trading is secure? OPINION RESPONSE No 15 Yes 85 Total 100

Interpretation The 85 %people believe that online trading is secure. This shows that the online trading has taken a good place in the minds of Indian stock traders and the Indian consumer or investor is moving towards online trading faithfully.

q3.Is security an important factor for online trading? OPINION RESPONSE Strongly agree 40 Agree Neither agree nor disagree 22 Disagree 5 Strongly disagree 23 10

Interpretation Majority of the people agree that they consider security as an important factor when they go for online trading, while 33 respondents disagree with this fact. Five people have neutral opinion.

Q4. In which of the following do you trade online? Equity 55 Portfolio Management Commodities 18 Future and options 12 (Derivatives) 15

INTERPRETATION Maximum number of people prefers to trade in equity online. The second preference is to trade in Portfolio management which is about 15%. 18 deal in Commodities and 12 deal in future and options.

Q5. Which of the following companies are you aware of? India Infoline 32 ICICI DIRECT 39 SHAREKHAN 15 INDIABULLS 8 KOTAK SECURITIES

INTERPRETATION Maximum number of people is aware of ICICI DIECT. 32% are aware of INDIA INFOLINE. 15% are aware of SHAREKHAN, 8% are aware of INDIA BULLS and 6% of KOTAK SECURITIES.

Q6. Do you think online trading has helped the growth and development of Indian stock market? OPINION RESPONSE YES 86 NO 14 Total 100

INTERPRETATION About 86 people responded that online trading has helped the growth and development of Indian stock market and 14 people disagree with this fact.

Q7.Which of the following methods do you prefer? OPINION RESPONSE Online 62 Offline 25

Both

13

INTERPRETATION More than half number of people prefer online trading, 23 people prefer offline trading while 13 people prefer both online and offline.

Q8. Do you think online trading is easy and fast way of trading? OPINION RESPONSE YES 92 NO 8

INTERPRETATION Maximum people say that online trading is easy and fast way of trading while 8 people say it is not easy and fast way of trading.

Q9. Do you think introduction of online trading has helped in attracting the new investors thus increasing the trading volumes at stock market? OPINION RESPONSE YES 78 NO 22

INTERPRETATION About 78 people feel that online trading has helped in attracting the new investors while 22 people believe that it does not attract new investor.

Q10. DO YOU AGREE WITH THE EXTENDED TIMINGS OF TRADING HOURS? OPINION RESPONSE YES 37 NO 63

INTERPRETATION Only 37 people are satisfied with extended trading hours and majority of people i.e., 63 are not happy with the extended hours of trading.

FINDINGS

FINDINGS
Majority of people find it easy to trade online and about 85 % people believe that online trading is safe and secure. Majority of the people consider security as an important factor for online trading, while 33 respondents disagree with this fact. Five people have neutral opinion. Maximum amount of people prefer to trade in EQUITY online. The second preference is to trade in PORTFOLIO MANAGEMENT. About 18 deals in COMMODITITES and 12 deal in FUTURE AND OPTIONS. Maximum number of people aware of ICICI DIECT and INDIA INFOLINE. 15% are aware of SHAREKHAN, 8% are aware of INDIA BULLS and 6% of KOTAK SECURITIES. About 86 people responded that online trading has helped the growth and development of Indian stock market and also helps in attracting new investors. Out of 100 respondents, 62 people prefer online trading, 23 prefer offline trading while 13 people prefer both online and offline. Majority of people say online trading is easy and fast way of trading while a meager number of people say it is not easy and fast way of trading. Only 37 people are satisfied with extended trading hours and majority of people i.e., 63 are not happy with the extended hours of trading.

RECOMMENDATION AND SUGGESTIONS

SUGGESTIONS

The companies should come up with more and more innovative features in their web portals. The customer should be educated regularly regarding the new technologies and of online trading and also other relevant information The companies should make efforts to promote online trading and create awareness about its benefits. The companies should look after to develop more safe and secure ways of transacting business online. The companies should make maximum efforts to detect fraud cases and minimize them.

CONCLUSION

CONCLUSION
In the present scenario to compete with the Brokers would require sound infrastructure and trading as per international standards. The introduction of on-line trading would influence the investors resulting in an increase in the business of the exchange. It has helped the brokers handling a vast amount of transactions and this can be an efficient trading, delivering, settlement system with adequate protection to investors. 8. Due to invention of online trading there has been greater benefit to the investors as they could sell/buy shares as and when required and that to with online trading. The brokers has a greater scope than compared to the earlier times because of invention of online trading. 7. The concept of business has changed today, this is a service oriented industry hence the survival would require them to provide the best possible service to the clients. Online trading facility is good boon to the investors. Investor cans easily updated information about their securities (shares etc) day to day. Online trading facility can be avail easily by just opening an account with the broker and depository participant.

LIMITATIONS

LIMITATIONS OF THE STUDY

The analysis is made on the online trading activities carried out in India Infoline Pvt Ltd. The data is collected from the primary & secondary sources so the study will have slight variation than what the study includes in reality. The study is limited to current time period. The study is purely for academic purpose. Most of the information collected for study is acquired from primary secondary source.

BIBLIOGRAPHY
http://www.indiainfoline.com/Aboutus/ http://en.wikipedia.org/wiki/National_Stock_Exchange_of_India http://en.wikipedia.org/wiki/Bombay_Stock_Exchange http://en.wikipedia.org/wiki/National_securities_depository_limited

QUESTIONNAIRE
I am a student of MBA (2nd Semester) and a I have undertaken a project on ` A study on customer satisfaction towards online share trading with special reference to India Infoline So, I feel highly obliged if you provide the following information to me: NAME: GENDER: Male/ Female OCCUPATION: INCOME: Do you trade online or not? yes no Do you feel online trading is secure? Yes No Is security an important factor for online trading? agree Neither agree nor disagree Disagree In which of the following do you trade online? Equity Portfolio Management Commodities Future and options Which of the following companies are you aware of? India Infoline

ICICI DIRECT SHAREKHAN INDIABULLS KOTAK SECURITIES Do you think online trading has helped the growth and development of Indian stock market? Yes No Which of the following methods do you prefer? Online Offline Both Do you think online trading is easy and fast way of trading? yes no Do you think introduction of online trading has helped in attracting the new investors thus increasing the trading volumes at stock market? yes no

DO YOU AGREE WITH THE EXTENDED TIMINGS OF TRADING HOURS? Yes No