TABLE OF CONTENTS

PAGE
S.NO CHAPTER. NAME OF THE CHAPTER
NUMBER
NO
1 I INTRODUCTION 1-16

2 II REVIEW OF LITERATURE 17-23

INDUSTRY PROFILE
3 III 24-46
COMPANY PROFILE

DATA ANALYSIS AND

4 IV 47-64
INTERPRETATIONS

FINDINGS

5 V SUGGESTIONS 65-68

CONCLUSIONS

BIBLIOGRAPHY
69-71
QUESTIONNAIRE
 CHAPTER: I
INTRODUCTION

1
INTRODUCTION:
In the current economic scenario, fluctuation in the share market has put investors in
confusion. One finds it difficult to take decision on investment. This is primarily, because of
investments are risky in nature and investors have to consider various factors before investing
in investment avenues.

These factors include risk, return, safety, volatility of shares and liquidity. The main
objective of the study is to analyse the equity shares and to know the where investors prefer
to invest in stock market.

Analysis has done on percentage method for studying equity shares. Those who have
well knowledge in equity market they can go for equity investments rather that investing in
mutual funds because no control on the expenses made by the fund manager.
The study will guide the new investor who wants to invest in equity, by providing
knowledge about the equities.

5 years ago. The earliest records of security dealings in India are meagre and obscure.
The East India Company was the dominant institution in those days and business in its loan
securities used to be transacted towards the close of the eighteenth century. By 1830's
business on corporate stocks and shares in Bank and Cotton presses took place in Bombay.
Though the trading list was broader in 1839, there were only half a dozen brokers recognized
by banks and merchants during 1840 and 1850.

The 1850's witnessed a rapid development of commercial enterprise and brokerage

business attracted many men into the field and by 1860 the number of brokers increased into
60.In 1860-61 the American Civil War broke out and cotton supply from United States of
Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased
to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous
slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be
sold at Rs. 87).

At the end of the American Civil War, the brokers who thrived out of Civil War in
1874, found a place in a street (now appropriately called as Dallal Street) where they would

2
conveniently assemble and transact business. In 1887, they formally established in Bombay,

the "Native Share and Stock Brokers' Association" (which is alternatively known as "The
Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it
was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges is limited to listed securities of public limited

companies. They are broadly divided into two categories, namely, specified securities
(forward list) and non-specified securities (cash list). Equity shares of dividend paying,
growth-oriented companies with a paid-up capital of at least Rs.50 million and a market
capitalization of at least Rs.100 million and having more than 20,000 shareholders are,
normally, put in the specified group and the balance in non-specified group.

Two types of transactions can be carried out on the Indian stock exchanges:

1. Spot delivery transactions "for delivery and payment within the time or on the date
stipulated when entering into the contract which shall not be more than 14 days following the
date of the contract"

2. Forward transactions "delivery and payment can be extended by further period of 14 days
each so that the overall period does not exceed 90 days from the date of the contract". The
latter is permitted only in the case of specified shares. The brokers who carry over the
outstanding pay carry over charges (can tango or backwardation) which are usually
determined by the rates of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell
securities for his clients on a commission basis and also can act as a trader or dealer as a
principal, buy and sell securities on his own account and risk, in contrast with the practice
prevailing on New York and London Stock Exchanges, where a member can act as a jobber
or a broker only.

3
The nature of trading on Indian Stock Exchanges are that of age old conventional
style of face-to-face trading with bids and offers being made by open outcry. However, there
is a great amount of effort to modernize the Indian stock exchanges in the very recent times
.

ONLINE TRADING:

The actual definition of On-Line Trading is as explained below:

"On-Line trading is service offered on the internet for purchase and sale of shares, in the real
world an investor places orders to stock brokers. Either verbally or in a written form (fax)".

OFFLINE:
Offline trading is benefit from discussing with financial advisor the benefits of trading
online.

A brief explanation about Internet: -

Internet is a worldwide self-governed network connecting several other smaller

network and millions of computers and persons to merge sources of information. This
technology is vast distance accelerating the pace of business forms and revolutionizing the
many companies are managed, it allows direct links to anyone anywhere and anytime to build
up interactive relationship.

A combination of time and space called the internet promises to bring un

precondemned changed in our lives and business Internet or net is an inter connection of
computer communication network spanning the entire globe crossing all geographical
boundaries it has re defined the method of communication work study education, Business
leisure health trade banking commerce and what not it is virtually changing everything and
we are living in dot.com age.Net being an interactive two way medium through various
websites enables participation by individually in business to business to consumer commerce
visit to shopping arcades, games, etc., in cyber space even the information can be copying,
down loaded and retransmitted. The use of internet has grown 2000 percent in last decade and

4
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 serving 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 in an automated

way. E- Commerce refers to the paperless exchange to business information using electronic
dates interchange electronic technology, it is not only reduce manual process and paper
transaction but also helps organization more 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 electronic commerce. The computers are either workstation of
individual office work or serves where large database and information resides.

Networks connects both categories of computer the various operating system are the
most basis programmed with is a computer it manages the resources of the computer system
in a fair and efficient manner.

Now we can enter into the concept known as "INVESTORS AWARENESS ON LINE
TRADING".

In the past investor had no option but 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 because easily accessible to both retail as well as
investor.

5
OBJECTIVES OF THE STUDY:

• To analyse the investors awareness about On-line trading.

• To bring out the investors’ expectations regarding on-line trading to be simplified
further.
• To offer suitable suggestions up on drawn conclusions.
• To determine the growth and future of online trading industry in India
• To understand the customer perception of online trading.
• To find out the important factor which do mostly affect to the customer
• To develop a good strategy and process that improves the business of the organization
• To be able to compare and analyse the various Financial Products.

• Business development and revenue generation.

NEED FOR THE STUDY:

The purpose into reviews the On-line Trading procedure a case study of On-Line
trading at India Bulls as the exchanges has changes its trading from the out cry mode to On-
Line trading 20th February, 1997 there is need to assets the performance of the capital market.

SCOPE OF THE STUDY:

• The present study is to know the details regarding the trading through On-line system.
• The project also studies the impact of On-line trading system in the market and also
trading of Government Securities in stock exchange.
• Since the year 2000 a big boom has been witnessed in the Indian Stock Market when
the market showed the coming up of Online Trading System.
• Many online stock trading companies came but initially due to lack of online trading
some companies vanished and some survived.
• The companies which survived are getting the handsome returns also attracting the
foreign Investment Companies. Nowadays this sector is facing cut-throat competition
and also provides huge growth prospects.

6
LIMITATIONS OF THE STUDY:

• The study is confined to On-line trading procedure On-line problem of listing are
not covered due to time and to keep the study in manageable limits.
• The study reflects the awareness of Hyderabad investors only.
• People were not willing to answer the entire questionnaire due to the less time
available tothem.
• Some respondents might be hesitant to divulge personal and financial information
which can affect the validity of allresponses.
• There is lack of awareness among people about investing in stock market. So the
people who are aware of such things were found in specific areas for surveypurposes.
• Most people are comfortable with traditional system in small towns and like to trade
from their respective brokers, hence not providing a true opinion oftheirs.
• Some of the respondents who did not do online trading were able to respond to only
fewquestions.
• The survey was done in the some major metro cities and may not truly express the
opinionofwholecountry

TRADING SYSTEM:

A trading system is simply a group of specific rules or parameters that determine entry and
exit points for a given equity. These points known as signals are often marked on a chair in a
real time and prompt the immediate execution of trade.
Here some of the common technical analysis tools used to construct parameters of trading
system.

→ MovingAverages
→ Stochastic
→ Oscillators
→ RelativeStrength
→ BollingerBonds.

7
 TYPES OF TRADING

NORMAL TRADING:

Exposure of 4 times will be given to you for trading depending on various parameters, in case
of Buy position you will have a pay the balance among on the same day, i.e., T day itself
failing which, you will not be around to take further position next day, in case of sell position
the same will be carried forward till T+1 evening we would request you to deliver the shares
before T+1 evening else the shares will be auctioned. Delivered of shares must be done by
issuing an instruction favoring investments and this transfer of shares should be done before
T+1 day end. Alternatively you can give us a standing instruction to debit your Demat account.
You will have to square off the sell position on or before T+1 marked closure by placing square
off orders.

MARGIN TRADING:

In margin trading is like cash trading 100% funds are not blocked at the time of order
placement, margin trading provides you with the capital to become a much more active
investor, so you can achieve your wealth creation goals far earlier than ever though possible.
You will have access to a far greater of investment opportunities because you are not limited
to using your own capital.

Margin trading which is also known as intra day trading if you place a buy order, you will
have to place a sell order by the end of the day or vice versa, the transaction placed by you in
margin either needs to be squared off or needs to be converted to delivery square of all your
open position before 3.00pm or else our system will do auto square off for all. Such position
you will have the position to take/give delivery of buy/sell respectively if
sufficient cash/security is available. However the same will be allowed only up to 3.00 pm.

CASH TRADING:

For Cash trading is basically delivery based where in 100% funds/shares are blockend at the
time of placement of the order. If you want to buy shares you should have the entire amount

8
of funds in our cash limit and if you want to sell shares the same should be available in your
Demat account. For sell position your trading limits will be increased immediately with sell
track value. This will enable you to take further position in the market. Cash product will
facilities buy today and sell tomorrow concept. Buy position is carried forward till T+1 end
of day. The same can be viewed in security projection. You can square off this position if
required before T+1 marked closure. On square off, your profit and loss will be adjusted
according in your tradinglimit.

ON-LINE TRADING:

On-Line Trading is a service offered on the internet for purchase and sale of shares, in
the real work you place a order with your stock broker website through your internet enabled
place order through your internet based trading engine. These orders are routed to the stock
exchange without manual intervention executed their on in a matter of few seconds.

NEED OF ON-LINE TRADINGSYSTEM:

1) DISCIPLINED ERROR FREEEXECUTION:

This method of trading is free of human emotion the buy and sell operations are all
automotive hands free with no manual interventions.

2) SPEED AND ACCURACY OF CALCUALTION ANEXECUTION:

Strategy runners servers can rein millions of analysis operations a day decide to buy
and sell upon present conditions making the trading risks very minimum.

3) HAND FREEEXECUTION:

The client trades automatically even when the clients is busy working, travelling,
sleeping, vacationing - any time of day or night.

9
4) NONCORRELATED:

System seek to be profitable in both bull and bear market. In other words profit or
loss in trading system is not dependent on economic cycle on matter prices are rising or
falling there for historically, trading system have had very little correlation to the stock and
bondmarket.

5) RISK-RETURN:

While there is no guarantee of positive performance in the trading system components

of portfolio the non-correlation statistics of the trading system and their ability to make
profits in any economics environment provide the opportunity for reduced portfolio risk and
the potential for enhanced portfolioreturns.

6) TRANSPARENCY:

It allows client monitor there sys performance in real time in additional all portfolio
results are published throughout the trading sessions on participating brokers' websites
providing tick transparency of the daily performance.

STEPS INVOLVED IN ON-LINE TRADING SYSTEM:

Step-1:Emerging Trends with In your Competitive Environment:

Trading organizations which do this we are positioned to be on-line trading market n the
trade industries while organizations which do not rise being blindsided shifts in on-line
trading demand which they did not anticipated and are not equipped tohandle.

Step-II: How to bring On-Line Trading were demand by targeting most profitable Customer:

10
INVESTORS AWARENESS ON LINE TRADING:

Is neither homogenous non uniform it is composed of distinct segment of customers

who think feel and act in different ways about your trading product category. Organizations
that understand this can ensure a royal customer trading franchise for years on end because
they understand the on-line trading demand they have set to trade better than any else.

Step-III: How to draw a relevant differentiation and Insulation via On-Line Trading Strategic
Choices:

An effective trading demand trade value proposition creates relevant and differentiated
benefits the value trade equation for its target customer their by earning their trading loyalty
and premiums for you to ensure continued profitability and competitive trade insulation.

Step-IV: How to Increase pricing in elasticity with specific On-Line trading Strategies and
On-Line trading business Systems:

This step aligns business trade system and trading capabilities (your On-line trading supply)
with the trade demand you have chosen to purchase leveraging core capabilities to deliver
new trading products and customer benefits quicking and continuously can generate
significant on-line trading pricepremiums.

Step-V: How to allocate On-Line trading resources according to the trade priorities
established by the On-Line trading value propositions to your targeted trade demand:
The trade resources human financial physical and organizational go towards creating or
strengthening the On-Line trading Business strategies and trader systems developed in step in
trader resources allocation must be conducted intelligently to match On-Line trading supply
with target trade demand.

Step VI: How to Plan implement and monitor a successful On-Line trading Strategy:
The importance of the step can hardly be over emphasized. A successful On-Line
trading execution of On-Line trading strategy requires careful preparation structuring and
ongoing trade observation.

11
MECHANISM OF ON-LINE TRADING SYSTEM:

The On-Line trading is simple as "dealing sacrifices on net" On-Line trading system
from a single location anywhere can service investors across the country.
Those interesting in buying and selling a script share had a contact to jobbers brokers who
would to the trading ring and make physical gestures, inviting buy/sell quotes is the trading
session from 11.30 am to 3.30pm.

On-line trading of the On-line screen based/ computerized trading known as

"Hyderabad On-line securities trading (HOST)" sys to cope with growing volume of business
ensure transparency in trading eliminate inherent flawed transaction for investors protection
and fall the growing competition
.
TECHNICAL CONFIGURATION:

HOST (Hyderabad On-line Securities Trading) is built upon the proven reactor
(versatile engine for centralized trading and On-Line reporting).

ON-LINE TRADING ADVANTAGES:

• trading On-Line has revolutionized the stockmarket.

• The main benefit of trading on-Line inspeed.
• There is no need dial up your broker wait to speak some body and have him or her
enter the order on their computer.
• As you can imagine the convenience of On-Line trading attracts moneyinvestors.
• you can enter trade orders day or night from anywhere incyberspace.

ON-LINE TRADING DISADVANTAGES:

▪ If you are going to trade On-Line you are obviously the on-line making all trading
choices.

12
 ▪ To make your trading decision you need to research your stocks and constantly pay
attention to marketnews.

This will require sometimes as you purchase your sources of market information and use on
line tools.

BROKERS ADVANTAGES:

▪ Despite the popularity of On-line trading not every body uses the internet to tracks
stocks.
▪ A broker can do everything from making all your stock trading decision for to give
you little advise on what to buy orsell.
▪ If you want some investing helps or if you want some body else to deal with
everything using a broken might be right foryou.
▪ Brokers are stock professionals they watch the market and deal with customers like
youeveryday.
▪ Finally your broker may offer services other than just trading stocks if you want you
can find a broken that will manage your taxes estate andbusiness.
▪ The personal attention available form broker who known your full financial situation
is verycalculated.

BROKERS DISADVANTAGES:

• Taking a percentage of your assets under management making stock tenders taking a
flatfee.
• However I must stress that the brokerage industry is highly regulated and most
brokers act with integrity nonetheless it is best to best aware of therisks.
• Get a feel for how much time broker spends marketing and how much attention your
assets willreceive.
• If your broker gets a paid commission for trading keep in mind that there may be a
conflict ofinternet.

13
IMPACT OF ON-LINE TRADING IN THE MARKET:

On the Number of transaction:

The number of transaction has increased considerably after introduction of the On-
line trading system, the factor of influence could be:

1) The case of the operations from the point of view of both the numbers andinvestors.
2) Facilities better monitoring of the market by the market operationsdepartment.
3) The daily that the best price is achieved in buying andselling.

VOLUME OF TRADING:

From the fact that the number of transactions has increased dramatically it is almost
apparent that the volume of trading of would have increased.

Number of Members Participating:

The introduction of On-line trading enables to do comfortable sitting in their

respective offices and doing the trading, more members can participate in the trading owning
to this which has been increased in a number of trades from 100 to 200.

OTHERS:

From the trader point of view the following are the benefits with the host.
1) Transparency of thesystem.
2) Desk work reduced tominimum.
3) Free and perfect information is available to all the member andinvestors.

14
 RESEARCH METHODOLOGY

METHODOLOGY OF THE STUDY:

The data collection methods include both Primary and Secondary collections methods:

• Primary data collection Method.

• Secondary data collection Method.

PRIMARY METHOD:

Primary method includes the data collected directly from the authorized members of Zen
securities. An appropriate questioner is served to the investing community for collection
primary data. And also data collected from discussion with India Bulls officially.

SECONDARY METHOD:

The secondary data collection method includes the lecturers delivered and material provide
by India Bulls Ltd., the date collections from the magazines of the NSE, Economics time
various books relating the investment, Capital Market and other related topics.

15
 SAMPLING

Sampling Procedure:

The sampling technique used here was Quota Sampling, which is one of the most commonly
used non-probability sample designs.

Sampling Unit:

The target population from which the sample is chosen is owners of all brands of cars.

Sample Size:

The sample of 50 from the target population was chosen.

Analysis Used:
The data collected in the form of questionnaires was tabulated and analyzed using basic
statistical method percentages.

16
 CHAPTER – II

REVIEW OF LITERATURE

17
Charles (1999) has analyzed that the astonishing growth in Americans' stock portfolios in
the 1990s has been a major force behind the growth of consumer spending. This article
reviews the relationship between stock market movements and consumption. Using various
econometric techniques and specifications, the authors find that the propensity to consume
out of aggregate household wealth has exhibited instability over the postwar period. They
also show that the dynamic response of consumption growth to an unexpected change in
wealth is extremely short-lived, implying that forecasts of consumption growth one or more
quarters ahead are not typically improved by accounting for changes in existingwealth.

Bhardwaj (2003) has stated the literature on globalization, He found the pervasiveness of
the west's perception of the world affect on Indian investors that affects the trends in
investor's choice. They are hugely affected by the west's views and so changes in Indian
trends occur.

Ranganathan (2003), has stated the investor behavior from the marketing world and
financial economics has brought together to the surface an exciting area for study and
research: behavioral finance. The realization that this is a serious subject is, however, barely
dawning. Analysts seem to treat financial markets as an aggregate of statistical observations,
technical and fundamental analysis. A rich view of research waits this sophisticated
understanding of how financial markets are also affected by the 'financial behavior of
investors. With the reforms of industrial policy, public sector, financial sector and the many
developments in the Indian money market and capital market, mutual funds that has become
an important portal for the small investors, is also influenced by their financial behavior.
Hence, this study has made an attempt to examine the related aspects of the fund selection
behavior of individual investors towards Mutual funds, in the city of Mumbai. From the
researchers and academicians point of view, such a study will help in developing and
expanding knowledge in thisfield.

Shrotriya (2003) conducted a survey on investor preferences in which he depicted the

linkage of investment with the factor so considered while making investment. He says

18
"There are various factors and their linkage also. These factors help us how to ensure safety,
liquidity, capital appreciation and tax benefits along withreturns."

Dijk (2007) has conducted 25 years of research on the size effect in international equity
returns. Since Banz's (1981) original study, numerous papers have appeared on the empirical
regularity that small firms have higher risk-adjusted stock returns than large firms. A quarter
of a century after its discovery, the outlook for the size effect seems bleak. Yet, empirical
asset pricing models that incorporate a factor portfolio mimicking underlying economic risks
proxied by firm size are increasingly used by both academics and practitioners. Applications
range from event studies and mutual fund performance measurement to computing the cost of
equity capital. The aim of this paper is to review the literature on the size effect and
synthesize the extensive debate on the validity and persistence of the size effect as an
empirical phenomenon as well as the theoretical explanations for the effect. We discuss the
implications for academic research and corporate finance and suggest a number of avenues
for furtherresearch.

Vasudeva (2007) analyzed the developments in the capital markets and corporate governance
in India since the early 1990s when the government of India adopted the economic
liberalization programme. The legislative changes significantly altered the theme of Indian
Companies Act 1956, which is based on the Companies Act 1948 (UK). The amendments,
such as the permission for nonvoting shares and buybacks, carried the statute away from the
earlier "business model" and towards the 'financial model' of the Delaware variety.
Simultaneously, the government established the Securities Exchange Board of India (SEBI),
patterned on the Securities and Exchange Commission of US. Through a number of other
policy measures, the government steered greater investments in the stock market and
promoted the stock market as a central institution in the society. The article points out that the
reform effort was inspired, at least in part, by the government's reliance on foreign portfolio
inflows into the Indian stock market to fund the country's trade and current account deficits.

Johnson (2008) has stated that Product quality is probably under-valued by firms because
there is little consensus about appropriate measures and methods to research quality. The
authors suggest that published ratings of a product's quality are a valid source of quality
information with important strategic and financial impact. The authors test this thesis by an

19
event analysis of abnormal returns to stock prices of firms whose new products are evaluated
in the Wall Street Journal. Quality has a strong immediate effect on abnormal returns, which
is substantially higher than that for other marketing events assessed in prior studies. In dollar
terms, these returns translate into an average gain of $500 million for firms that got good
reviews and an average loss of $200 million for firms that got bad reviews. Moreover, there
are some important asymmetries. Rewards to small firms with good reviews of quality are
greater than those to large firms with good reviews. On the other hand, large firms are
penalized more by poor reviews of quality than they are rewarded for good reviews. The
authors discuss the research, managerial, investing, and policy implications.

Patnaik and shah (2008) has analyzed on the preferences of foreign and domestic
institutional investors in Indian stock markets. Foreign and domestic institutional investors
both prefer larger, widely dispersed firms and do not chase returns. However, we and
evidence of strong differences in the behavior of foreign and domestic institutional investors.

Bhatnagar (2009) has analyzed of Corporate Governance and external finance in transition
economies like India. The problem in the Indian corporate sector is that of disciplining the
dominant shareholder and protecting the minority shareholders. Clearly, the problem of
corporate governance abuses by the dominant shareholder can be solved only by forces
outside the company itself particularly that of multilateral financial institutions in the
economic development. India has relied heavily on external finance as their domestic saving
rates have been much lower than their investment rates. The less promising prospects for the
global supply of external finance the need for an increase in the multilateral financial
institutions. India being a transition economy is changing from a centrally planned economy
to a free market. It is undergoing economic liberalization, macroeconomic stabilization where
immediate high inflation is brought under control, and restructuring and privatization in order
to create a financial sector and move from public to private ownership of resources. These
changes often may lead to increased inequality of incomes and wealth, dramatic inflation and
a fall of GDP.

Mayank (2009) has analyzedthe role of two important forces the regulator and the capital
market as determinant of external finance in transition economies analyses the changing
pattern and future prospectus of external finance to India and reviews the role of external

20
finance. Under this framework, the study evaluates current Indian corporate governance
practices in light of external finance.

Rajeshwari and Moorthy has conducted the study and analyzed that Mutual Fund is a retail
product designed to target small investors, salaried people and others who are intimidated by
the mysteries of stock market but, nevertheless, like to reap the benefits of stock market
investing. At the retail level, investors are unique and are a highly heterogeneous group.
Hence, their fund/scheme selection also widely differs. Investors demand inter-temporal
wealth shifting as he or she progresses through the life cycle. This necessitates the Asset
Management Companies (AMCs) to understand the fund/scheme selection/switching
behavior of the investors to design suitable products to meet the changing financial needs of
the investors. With this background a survey was conducted among 350 Mutual Fund
Investors in 10 Urban and Semi Urban centers to study the factors influencing the
fund/scheme selection behavior of Retail Investors. This paper discusses the survey findings.
It is hoped that it will have some useful managerial implication for the AMCs in their product
designing andmarketing.

Atkinson (2000) There are several studies in the literature that attempt to discuss some of the
problems and challenges associated with online trading. The first problem discussed in the
literature is hidden costs and deceptive advertising associated with online trading. supported
this contention that buried in all the online trading hype resides the fine print. This obscure
data translates into a venture that is more costly than one was lead to believe.

McNamee (2000) and Patel (1999) Delayed and varied execution speeds and self serving
market makers were among the items responsible for this pitfall of online trading as was
collaborated in the studies. Internet security is also a major concern to investors. Computer
hackers and viruses plague every sector of the computer community and with certainty will
continue to do so.

(Goldberg, 1998) Internet applications are endless and e-commerce companies are
developing innovative business models and making advancements everyday. One of the
fastest growing internet ventures is online trading. The first internet securities trading
occurred in 1994. By 1997, it has been estimated that 17 percent of all trades occurred online

21
via the internet. Online brokerage firms emerged and the wealth of information available to
many investors.

(Padhi and Naik, 2012) Stock markets play an essential role in growing industries that
ultimately affect the economy through transferring available funds from units that have
excess funds (savings) to those who are suffering from funds deficit (borrowings).

(Poon and Swatman, 1999) Countries all over the world have invested heavily to leverage
the Internet and transform their conventional businesses into e-businesses. E-businesses are
defined as the use of Internet based information and communication technologies (ICT) by
organizations to conduct transactions, share information and maintain relationships.

(Tversky, A and Kahenaman, D.) Other research has shown that psychological factors may
result in exaggerated stock price movements. Psychological research has demonstrated that
people are predisposed to seeing patterns and often will perceive a pattern in what is, in fact,
just noise. In the present context this means that a succession of good news items about a
company may lead investors to overreact positively. A period of good returns also boost the
investor's self-confidence, reducing his risk threshold.

Calderon-Rossell (1991) was the first to develop a partial equilibrium model of stock market
growth. To date, this model represents the most "serious" attempt to lay the foundations of a
financial theory of stock market development. However, as a partial equilibrium model, it
fails to take into account, for instance, the potential effects of government policies and
institutional factors.

Henry (2000) finds a strong relationship between the growth rate of investment and changes
in stock market valuation measured by returns on the stock market, the turnover ratio, and the
traded value as a share of GDP. On the other hand, McCauley and Remolona (2000) and
Shahand Thomas (2001) find that the size of the economy is an important factor in the
development of liquid and well functioning securities markets.

Mishkin (2001) argues that financial liberalization promotes transparency and accountability,
which reduces adverse selection and moral hazard. It thus tends to reduce the cost of
borrowing in stock markets, which eventually increases their liquidity and size. A large pool
22
of studies has investigated the impact of inflation on capital markets. An important finding of
these studies has been that high levels of inflation are associated with less liquid and smaller
financial markets as financial intermediaries tend to lend less and allocate less efficiently.

Boyd et al. (2001) find negative effects of inflation on private credit and equity markets. They
argue that the relationship between financial development and inflation could be nonlinear,
with a particular threshold level after which the financial sector experiences an abrupt drop in
performance.

Claessens et al. (2001) find that privatization programs and foreign direct investment
contribute to stock market development.

Naceur et al. (2007) show that macroeconomic factors such as income, saving rate, and
financial intermediary development are important determinants of stock market development
for a panel of countries in the MENA region.

El-Wassal (2005) examined the relationship between stock market growth and economic
growth, financial liberalization and foreign portfolio. The findings show that economic
growth, financial liberalization and foreign portfolio investments were the leading factors in
the expansion of stock markets.

Yartey and Adjasi, (2007) found that financial intermediary sector development tended to
increase stock market development in Sub-Sharan Africa, controlling for macroeconomic
stability, economic development and the quality of legal and political institutions. In addition,
Yartey (2008) has demonstrated that stock market development has a nonlinear relationship
with banking sector development. That is, stock market development is initially supported by
banking sector development through trade intermediation.

North and Weingast (1989) show that improved checks and balances, credible commitments
and upgraded property rights in England during the seventeenth century led to the
development of stable capital markets.

23
 CHAPTER – III
COMPANY AND
INDUSTRY PROFILE

24
 INDUSTRY PROFILE

BOMBAY STOCK EXCHANGE (BSE)

Established in 1875, BSE (formerly known as Bombay Stock Exchange Ltd.), is Asia's first
& the fastest Stock Exchange in the world with the speed of 6 microseconds and one of India's
leading exchange groups. Over the past 140 years, BSE has facilitated the growth of the Indian
corporate sector by providing it an efficient capital-raising platform. Popularly known as BSE,
the bourse was established as "The Native Share & Stock Brokers' Association" in 1875. BSE
is a corporatized and demutualized entity, with a broad shareholder base which includes two
leading global exchanges, Deutsche Bourse and Singapore Exchange as strategic partners.
BSE provides an efficient and transparent market for trading in equity, debt instruments,
derivatives, and mutual funds. It also has a platform for trading in equities of small-and-
medium enterprises (SME).

More than 5500 companies are listed on BSE, making it the world's No. 1 exchange in terms
of listed companies. The companies listed on BSE command a total market capitalization of
USD 1.64 Trillion as of Sep 2015. It is also one of the world's leading exchanges (5th largest
in September 2015) for Index options trading (Source: World Federation of Exchanges).

BSE also provides a host of other services to capital market participants, including risk
management, clearing, settlement, market data services, and education. It has a global reach
with customers around the world and a nation-wide presence. BSE systems and processes are
designed to safeguard market integrity, drive the growth of the Indian capital market, and
stimulate innovation and competition across all market segments. BSE is the first exchange in
India and second in the world to obtain an ISO 9001:2000 certification. It is also the first
exchange in the country and second in the world to receive Information Security Management
System Standard BS 7799-2-2002 certification for its Online Trading System (BOLT). It
operates one of the most respected capital market educational institutes in the country (the
BSE Institute Ltd.). BSE also provides depository services through its Central Depository
Services Ltd. (CDSL) arm.

25
BSE’s popular equity index - the S&P BSE SENSEX - is India’s most widely tracked stock
market benchmark index. It is traded internationally on the EUREX as well as leading
exchanges of the BRICS nations (Brazil, Russia, China, and South Africa).

BSE has won several awards and recognitions that acknowledge the work done and progress
made, like the India Innovation Award for the Big Data implementation, ICICI Lombard &
ET Now Risk Management BFSI Company 2013, SKOCH Order of Merit Certificate was
awarded to BSE for E-Boss for qualifying amongst India’s Best 2013, The Golden Peacock
Global CSR Award for its initiatives in Corporate Social Responsibility, NASSCOM - CNBC-
TV18’s IT User Awards, 2010 in Financial Services category, Skoch Virtual Corporation 2010
Award in the BSE Star MF category and Responsibility Award (CSR) by the World Council
of Corporate Governance. Its recent milestones include the launching of BRICSMART indices
derivatives, BSE-SME Exchange platform, S&P BSE GREENEX to promote investments in
Green India.

Vision
“Emerge as the premier Indian stock exchange with best-in-class global practice in
technology, product innovation, and customer service.”

Heritage
BSE Ltd, the first-ever stock exchange in Asia, was established in 1875 and the first in the
country to be granted permanent recognition under the Securities Contract Regulation Act,
1956, has had an interesting rise to prominence over the past 140 years.

While BSE Ltd is now synonymous with Dalal Street, it was not always so. The first venue of
the earliest stock broker meetings in the 1850s was in rather natural environs - under banyan
trees - in front of the Town Hall, where Horniman Circle is now situated. A decade later, the
brokers moved their venue to another set of foliage, this time under banyan trees at the junction
of Meadows Street and what is now called Mahatma Gandhi Road. As the number of brokers
increased, they had to shift from place to place, but they always overflowed to the streets. At
last, in 1874, the brokers found a permanent place, and one that they could, quite literally, call
their own. The new place was, aptly, called Dalal Street (Brokers’ Street).

26
The journey of BSE Ltd. is as eventful and interesting as the history of India’s securities
market. In fact, as India’s biggest bourse in terms of listed companies and market
capitalization, almost every leading corporate in India has sourced BSE Ltd. services in raising
capital and is listed with BSE Ltd.

Even in terms of an orderly growth, much before the actual legislations were enacted, BSE
Ltd. had formulated a comprehensive set of Rules and Regulations for the securities market.
It had also laid down best practices which were adopted subsequently by 23 stock exchanges
that were set up after India gained its independence.

BSE Ltd., as an institutional brand, has been and is synonymous with the capital market in
India. Its S&P BSE SENSEX is the benchmark equity index that reflects the health of the
Indian economy.

Bombay Stock Exchange has now adopted only its initials as the new name (BSE),
positioning itself better as a national multi-asset financial infrastructure institution. BSE’s
strategic shift in approach, attitude, and business focus is reflected in its new tagline -
Experience the New.

With renewed zeal and focus on new business opportunities, product and service innovation,
upgrades in technology, increased investor and member focus, BSE is always pushing the
envelope on all fronts. The ambition is to continually improve and adopt new and better ways
of conducting our business.

27
BSE continues to undertake several initiatives to build on its strong brand, legacy, and market
position to create value for its stakeholders and the financial system.

Achievements
At par with international standards, BSE Ltd. has been a pioneer in several areas over the
decades and has many firsts and key achievements to its credit. BSE is the first exchange in
India to:
• Launch a special platform for trading in SME securities
• Introduce Equity Derivatives
• Launch a Free Float Index - S&P BSE SENSEX
• Launch Exchange Enabled Internet Trading Platform
• Obtain ISO certification for a stock exchange
• Exclusive facility for financial training – BSE Institute Ltd.
• Launch its website in Hindi and regional languages
• Host the popular opening-bell ceremony in Indian capital markets
• Launch mobile-based trading in India in Sept 2010
• Become a securities market infrastructure member of SWIFT in India and provide
corporate actions to custodians in ISO 15022 format
• Launched S&P BSE SENSEX Realized S&P BSE Volatility (REALVOL) Index in
Nov 2010

Besides the above, BSE has taken large strides in product and service innovation for the
benefit of its members and investors, notable ones being:
• Launch of a reporting platform for corporate bonds
• Launch of the S&P BSE IPO index and S&P BSE PSU website
• Revamp of its website with a wide range of new investor-friendly features
• Launch of trading in S&P BSE SENSEX futures on EUREX and leading exchanges
of the BRICS nation bloc
• Launched Smart Order Routing for members and investors
• Introduced SACT (SMS alert & Complaint Tracking system)
• Launched a co-location facility at BSE premises in November 2010
• Reduction in membership fees to Rs. 10 lakh for new memberships to promote
financial access and inclusion

28
Awards & Recognitions

As a pioneering financial institution in the Indian capital market, BSE has won several awards
and recognitions that acknowledge the work done and progress made.

• Skoch Achiever Award 2016 for SME Enablement

• Best IT Implementation Award 2016 in the “Most Complex Project Category” by
PCQuest
• InfoSec Maestros Awards 2016
• Lions CSR Precious Awards 2016
• Golden Peacock Award 2015
• CIO Power List 2015
• SKOCH Renaissance Award 2014 for Contribution to Economy
• SKOCH Renaissance Award 2014 for Corporate Social Responsibility
• Netmagic Innovative Champion Award – IT Consolidation growth & Scalability 2014
• India Innovative Awards - Big Data Innovation 2014
• ET Now – CISCO Technology Awards 2014
• Unicom – India Top 50 companies with best software 2014
• HR was awarded with Asia’s Best Employer Brand Awards at Singapore in two
categories in August 2014:
o Asia’s Best Employer Brand Award
o CHRO of the Year Award

NATIONAL STOCK EXCHANGE (NSE)

The National Stock Exchange (NSE) is the leading stock exchange in India and the fourth
largest in the world by equity trading volume in 2015, according to the World Federation of
Exchanges (WFE). It began operations in 1994 and is ranked as the largest stock exchange
in India in terms of total and average daily turnover for equity shares every year since 1995,
based on annual reports of SEBI.

29
NSE launched electronic screen-based trading in 1994, derivatives trading (in the form
of index futures) and internet trading in 2000, which were each the first of its kind in India.
NSE has a fully-integrated business model comprising:
• Exchange listings
• Trading services
• Clearing and settlement services
• Indices
• Market data feeds
• Technology solutions
• Financial education offerings

NSE also oversees compliance by trading and clearing members and listed companies with
the rules and regulations of the exchange. NSE is a pioneer in technology and ensures the
reliability and performance of its systems through a culture of innovation and investment in
technology. NSE believes that the scale and breadth of its products and services, sustained
leadership positions across multiple asset classes in India and globally enable it to be highly
reactive to market demands and changes.

Purpose
Committed to improving the financial well-being of people.

Vision
To continue to be a leader, establish a global presence, and facilitate the financial well-being
of people.

Values
NSE is committed to the following core values:
• Integrity
• Customer-focused culture
• Trust, respect, and care for the individual
• Passion for excellence
• Teamwork

30
Our Logo

The logo of the NSE symbolizes a single nationwide securities trading facility ensuring
uniform access to investors, trading members, and issuers all over the country. The initials of
the Exchange (N, S, and E) have been etched on the logo and are distinctly visible. The logo
symbolizes simplicity, technology, and connectivity, unleashing creative energy to
constantly innovate for the development and growth of the securities industry.

NSE's sustained leadership positions across asset classes in the Indian and global exchange
sectors demonstrate the robustness and liquidity of our exchange. NSE was incorporated in
1992 and was recognized as a stock exchange by SEBI in April 1993. It commenced
operations in 1994 with the launch of the wholesale debt market, followed shortly after by
the launch of the cash market segment.

Between 1994 and 2016, we expanded our lines of business and product offerings through the
following key milestones:
• 2021-2024
• 2011-2020
• 2001-2010
• 1991-2000

Milestones

YEAR MILESTONES
2024 Reported a Profit After Tax (PAT) of ₹1,217 crore for the financial year ending
March 31, 2024, compared to ₹1,128 crore in the previous year.
2023 Announced a rebranding initiative to reflect the company's evolution
and commitment to best-in-class corporate governance.

31
2021 Reported Gross Non-Performing Assets (NPAs) at 1.08% as of March
31, 2021.
2020 Reported Gross NPAs at 0.97% as of March 31, 2020.
2019 IBHFL included in Nifty 50 and AAA rated by Moody’s, 2nd largest mortgage
finance company in the country, and 2nd highest FII ownership in any Indian
company by % after HDFC Ltd, balance sheet of over ₹1,00,000 crores.
2018 WENT GLOBAL. IBHFL ranked 13th largest consumer financial service by
Forbes 2000.
2017 Indiabulls group market capitalization crosses $10 billion USD. Indiabulls
group is among the top 10 dividend-paying private groups.
2016 Launched NIFTY 50 index futures trading on TAIFEX. Launched a platform
for sovereign gold bond issuances. Launched an electronic book-building
platform for private placement of debt securities.
2015 Entered into a memorandum of understanding to enhance the level of
cooperation with the London Stock Exchange Group. Renamed CNX NIFTY to
NIFTY 50.
2014 Launched NMF-II platform for mutual funds. Launched NBF II segment for
interest rate futures. Launched trading on India VIX index futures. Commenced
trading on NIFTY 50 (then known as CNX NIFTY) on the Osaka Exchange.
2013 Launched the New Debt Segment (NDS).
2012 Commenced trading in index futures and options contracts on the FTSE 100
index. Launched SME-specific EMERGE platform for the listing and trading
of securities of SMEs.
2011 Commenced trading in index futures and options on global indices, namely the
S&P 500 and Dow Jones Industrial Average.

Awards & Recognition

• 2016: CII-Exim Bank Prize for Business Excellence
• 2016: Global Architecture Excellence Awards 2016 - New Service Offering Initiative
• 2015: Golden Peacock Innovative Product / Service Award
• 2015: The Asian Banker Achievement Awards 2015 - Stock Exchange of the Year
• 2014: Futures and Options World Award for Indian Exchange of the Year

32
 • 2014: Global Finance - Best Derivatives Providers Award 2014 for exchange
performance
• 2014: CII-Exim Bank Prize for Business Excellence
• 2013: Capital Finance International - Best Stock Exchange Award, India
• 2010: The Asian Banker Achievement Awards for Markets and Exchanges - Financial
Derivative Exchange of the Year Award

Our Products
Equity & Equity Linked Products
• Cash Market (Equities)
• Indices
• Mutual Funds
• Exchange Traded Funds
• Initial Public Offerings (IPOs)
• Offer for Sale
• Institutional Placement Program
• Security Lending and Borrowing Scheme
• Sovereign Gold Bonds Scheme

Derivatives
• Equity Derivatives
• Currency Derivatives
• NSE Bond Futures

Debt
• Debt Market
• Corporate Bonds
• Electronic Debt Bidding Platform (NSE-EBP)

33
 COMPANY PROFILE

INTRODUCTION TO INDIABULLS

Indiabulls is India’s leading Financial and Real Estate Company with a wide presence
throughout India. They ensure convenience and reliability in all their products and services.
Indiabulls has over 640 branches all over India. The customers of Indiabulls are more than
4,50,000 which covers from a wide range of financial services and products from securities,
derivatives trading, depositary services, research & advisory services, consumer secured &
unsecured credit, loan against shares and mortgage & housing finance. The company employs
around 4000 Relationship managers who help the clients to satisfy their customized financial
goals. Indiabulls entered the Real Estate business in the year 2005 with its group of companies.
Large scale projects worth several hundred million dollars are evaluated by them.

Indiabulls Financial Services Ltd is listed on the National Stock Exchange (NSE), Bombay
Stock Exchange (BSE) and Luxembourg Stock Exchange. The market capitalization of
Indiabulls is around USD 2500 million (29th December, 2006).

The group is around USD 700 million. Indiabulls and its group companies have attracted USD
500 million of equity capital in Foreign Direct Investment (FDI) since March 2000. Some of
the large shareholders of Indiabulls are the largest financial institutions of the world such as
Fidelity Funds, Goldman Sachs, Merrill Lynch, Morgan Stanley and Farallon Capital.

Genesis

In the middle of 1999, when e-commerce was just about starting in India, Sameer Gehlaut
bought a defunct securities company with an NSE membership and started offering brokerage
services. By December 1999, the company embarked on its journey to build one of the first
online platforms in India for offering internet brokerage services.

In January 2000, Indiabulls Financial Services was incorporated as the flagship company.

34
In late 2000, Indiabulls Securities, a subsidiary of Indiabulls Financial Services, started
offering online brokerage services and simultaneously opened physical offices across India.
By 2003, Indiabulls Securities had established a strong pan India presence and client base
through its offices and on the internet.

In September 2004, Indiabulls Financial Services went public with an IPO at Rs. 19 a share.
In late 2004, Indiabulls Financial Services started its financing business with consumer loans.
In March 2005, Indiabulls Properties Private Ltd, a subsidiary of Indiabulls Financial
Services, participated in a government auction of Jupiter Mills, a defunct 11-acre textile mill
owned by NTC in Lower Parel, Mumbai. Indiabulls Properties Private Ltd. won the mill in
the auction and that purchase started Indiabulls Real Estate business. A few months later,
Indiabulls Real Estate Company Pvt. Ltd. bought Elphinstone Mill in Lower Parel, another
textile mill auctioned by NTC.

Solutions Beyond Imagination

With the real estate business gaining size, Indiabulls Financial Services demerged the real
estate business under Indiabulls Real Estate, and each shareholder of Indiabulls Financial
Services received an additional share of Indiabulls Real Estate through the demerger.
Subsequently, Indiabulls Financial Services also demerged Indiabulls Securities, and each
shareholder of Indiabulls Financial Services also received a share of Indiabulls Securities.

Group has a net worth of over Rs. 17,792 crore and the market capitalization stands at
over Rs. 48,848 crore. Indiabulls Group has a strong presence in important sectors like
financial services & real estate through independently listed companies, and the group
continues its journey of

35
MANAGEMENT TEAM
Sameer Gehlaut
Chairman, Indiabulls Group

Sameer Gehlaut has been the chairman of Indiabulls Group since its inception. He is also the
chairman of major Indiabulls companies: Indiabulls Housing Finance & Indiabulls Real
Estate. Under his leadership, Indiabulls Group has grown in scale and size to a business house
with strong businesses in various sectors.

Mr. Gehlaut started Indiabulls Group after working briefly with Halliburton before returning
to India. Mr. Gehlaut received a B.Tech degree in Mechanical Engineering from the Indian
Institute of Technology, Delhi.

36
37
INDIABULLS HOUSING FINANCE LTD:

Indiabulls Housing Finance Ltd. (IBHFL) is the 2nd largest private housing finance company
in India, regulated by the National Housing Bank (NHB). We are an ‘AAA’ rated company.
We are a part of one of India’s leading business conglomerates – "The Indiabulls Group",
which was established in 1999 with business spread across housing finance, real estate, and
wealth management.

Millions of Indians aspire to own a place that they can call home. At IBHFL, our collective
efforts are directed towards fulfilling these aspirations and dreams of our customers. We have
served more than 9.20 lakh customers and have cumulatively disbursed home loans of over
Rs. 1.67 lakh crore as of the last financial year. We pride ourselves on having a workforce of
over 6400 employees, more than half of which is dedicated to customers and sales, serving
as the pillar on which we can meet the many needs of the segment.

Our constant endeavor is to ensure that the interests of all our key stakeholders—customers,
shareholders, investors, bankers & employees—are taken care of. Imbibed in all business
plans and activities that we undertake is a strong focus on staying true to our core values
and goals.

Our Core Values

• Customer First
• Transparency
• Integrity
• Professionalism

Our Goals
• To ensure utmost convenience in the home buying experience – Making housing
finance more affordable/viable by contributing towards the organization of the housing
finance sector.
• In keeping with the principle of continually working towards greater “customer
convenience”, we are equipped to tend to you over our website and mobile application

38
 with e-Home Loans, providing completely online home loans – from application to
disbursal. The entire gamut of our services will assist you in an all-inclusive home
buying experience, available for you to avail anytime and anywhere.

Our Network
• Over 220 well-appointed and accessible branches in 110 towns and cities across
India.
• 2 representative offices in Dubai and London, offering services to NRIs/PIOs.

Combining efficiencies in products, services, and processes, we are committed to providing

the best home buying experience and being your perfect home loan partner.
We Welcome You Home!

INDIABULLS REAL ESTATE

BUILDING LANDMARK EDIFICES
Creating Everlasting Impressions!

Since its inception, Indiabulls Real Estate has earned a distinct reputation for building
projects that turn spaces into inspiring places. With a prime focus on construction and
development of residential, commercial & SEZ projects across major Indian Metros &
London, Indiabulls Real Estate expanded its project portfolio.

Today, it ranks third among the top Real Estate companies, with a total Gross Development
Value of INR 33,668 crores and a net worth of INR 4,819 crores as of June 30, 2016.
Indiabulls Real Estate’s strategic partnership with Farallon Capital Management LLC of
USA was instrumental in bringing the first FDI into real estate in India.
On-going projects in India with a total saleable area of 357.8 lakh sq. ft. It also has four new
projects that are planned to be launched shortly with a total saleable area of 87.5 lakh sq. ft.
planned. The company has a fully paid land bank of 1,010 acres and also possesses 2,588
acres of SEZ land at Nashik, Maharashtra.

39
IBREL is currently developing 44.53 million sq. ft. into premium quality, high-end
commercial, residential, and retail spaces in the Metros – Mumbai, Delhi NCR & Chennai,
apart from Tier 1 cities. With its recent acquisition of the prime property, 22 Hanover Square
in central London for INR 1,630 crores, IBREL is consolidating its presence internationally
as well. Some of the iconic landmarks of IBREL that have redefined commercial spaces in
Mumbai are The Indiabulls Centre & Indiabulls Financial Centre, with over 3 million sq.
ft. of sprawling commercial space. Indiabulls Real Estate has delivered a record 3.3 million
sq. ft. developed space valued at $1 billion (within 4 years of inception). This is the fastest
and largest delivery in terms of area by any Indian real estate developer in the same time
period.

IBREL has been assigned a credit rating of AA- for long-term debt and A1+ for short-term
loans by CARE and International ratings of B+/B1/B+ by S&P/Moody’s/Fitch,
respectively.

INDIABULLS VENTURES

Indiabulls Ventures Limited (Formerly known as Indiabulls Securities Limited) is one of the
leading companies in the Capital Market and Real Estate marketing and distribution,
primarily offering the following services:

• a) Equity/ Commodity/ Currency Broking

• b) Marketing and Distribution of Residential Properties
• c) Developing and Leasing of Commercial Properties

Indiabulls Ventures Limited (formerly Indiabulls Securities Ltd) is a leading capital market
company. It was the **first company to be assigned the BQ1 grading by a reflection of the
financial stability, strong fundamentals, and stringent risk management controls that the
company possesses. The company pioneered the online trading platform, and today its in-
house platform is one of the fastest and most efficient trading platforms in the country. It
also provides an offline distribution channel for financial services, ensuring wide
accessibility to its customers.

40
Indiabulls Ventures continues to strengthen its presence in the capital markets and real estate
distribution, focusing on innovative solutions and customer-centric services to maintain
its position as a leader in the industry trading, as well as depositary services to its clients. The
Company has a client base in excess of 7 lakhs with a presence in 18 cities.

The Company, through its various subsidiaries, is also engaged in the business of Marketing
of Non-Discretionary Wealth Management products, Commercial Leasing, and
Commodity & Currency Broking.

Through its distribution arm, the Company provides a one-stop destination to clients to meet
their investment needs by offering them a wide bouquet of residential projects at a Pan
India Level. Through its website ibhomesearch.in, clients are provided transparent and
updated information on various projects, which facilitate their decision-making.

The Company has forayed into the business of Developing, Marketing, and Maintaining
Commercial Spaces through its recent acquisition of India Land & Properties Ltd. One
flagship Centre of Excellence, Indiabulls Park (OIBP), a Gold-rated Green IT Park, is
located at Ambattur, Chennai, and is an international standard commercial hub offering
IT/ITES office spaces. OIBP provides amenities of international standards, which nurture
each occupant with new ideas, support to enrich human potential, and sustain growth.

INDIABULLS FOUNDATION

The Group’s vision of building an inclusive India is what drives the team at Indiabulls
Foundation. In this endeavor, the foundation works towards empowering hundreds of
underprivileged people through its myriad of social engagement programs and activities.

Indiabulls Foundation provides sustainable solutions that are tailored to meet the specific
needs of the underprivileged people.
Many free services are provided through Indiabulls Foundation’s dedicated programs,
which cover the gamut of:
• Health

41
 • Education
• Women’s and Youth Empowerment
• Sustainable Livelihood
• Nutrition
• Disaster Relief

The Foundation seamlessly integrates technology with resources to enrich and enhance
the lives of its beneficiaries. As part of its future goals, Indiabulls Foundation is geared up
to reach out to more and more people from marginalised communities and make a difference.

BOARD OF DIRECTORS

• Sameer Gehlaut – Chairman and CEO

• Ajit Kumar Mittal – Executive Director
• Gagan Banga – CEO
• Ashwin Mallick – Head
• Aishwarya Katoch – Director
• Karan Singh – Director
• Prem Prakash Mirdha – Director
• Saurabh K Mittal – Director
• Amit Jain – Company Secretary

42
ORGANIZATIONAL STRUCTURE – BOARD OF DIRECTORS

43
 TRADING PRODUCTS OF INDIABULLS SECURITIES

Indiabulls Securities provide three products for trading. They are:

✔ Cash Account
✔ Intraday Account

✔ Mantra Account

CASH Account: It provides the client to buy 4 times of cash balance in his trading account.

INTRADAY Account: It provides the client to buy 8 times of his cash balance in the trading
account.

MANTRA Account: Also called as margin trading, is a special account to buy on leverage
for a longer duration.

44
 INDIABULLS FINANCIAL SERVICES LIMITED

Indiabulls Financial Services Ltd. was incorporated in the year 2005. The Auditors of
Indiabulls Financial Services Ltd. are Deloitte, Haskins & Sells. The main activity of this
company is in relation to securities and stock brokerage. It was also responsible for setting up
one of India’s first trading platforms.

The subsidiaries of Indiabulls Financial Services Ltd. include:

➤ Indiabulls Capital Services Ltd.

➤ Indiabulls Commodities Pvt. Ltd.

➤ Indiabulls Credit Services Ltd.

➤ Indiabulls Finance Co. Pvt. Ltd.

➤ Indiabulls Housing Finance Ltd.

➤ Indiabulls Insurance Advisors Pvt. Ltd.

➤ Indiabulls Resources Ltd.

➤ Indiabulls Securities Ltd.

45
 THE BANKERS OF INDIABULLS FINANCIAL SERVICES LTD

➤ ABN-Amro Bank
➤ Andhra Bank

➤ Bank of Maharashtra
➤ Bank of Rajasthan Ltd.

➤ Canara Bank

➤ Centurion Bank of Punjab Ltd.

➤ Citibank

➤ Corporation Bank
➤ Dena Bank

➤ HDFC Bank Ltd.

➤ HSBC Ltd.

➤ ICICI Bank Ltd.

➤ IDBI Ltd.

➤ Industrial Bank Ltd.

➤ ING Vysya Bank Ltd.

➤ Karnataka Bank
➤ LKB Ltd.

➤ Punjab National Bank

➤ Standard Chartered Bank
➤ State Bank of India
➤ Syndicate Bank

➤ Union Bank of India

➤ UTI Bank Ltd.

➤ Yes Bank Ltd.

46
 CHAPTER – IV
DATA ANALYSIS AND
INTERPRETATION

47
In this study, I have served the questionnaire for 120 sample investors; out of 120, only 95
questionnaires remained after scrutiny.
In Hyderabad, I have approached people who are aware of online trading.
From the collected data of 95 respondents, I have prepared 18 tables. With this data, I am able
to know the investment of various instruments and the people who have responded are
invested in securities, while some people are invested in gold, land, real estate, etc.
The collected data is organized into 18 tables, which are elaborately analyzed in the following
sections.

1) Are you an Investor in the Stock Market?

YES NO
39.5 8
Table 4.1

2cm = 1 unit

From the study, it is clear that respondents are aware of investing options. 79% of
respondents are aware of the stock market and other financial investments, while 16% of
respondents are not aware of the investing process in the stock market. However, they are
aware of other investments like real estate, mutual funds, and bank deposits.

48
2) Investment Option You Preferred:

Method of Investing Equity Mutual Fund Bank Real Estate

No. of Responses 9.5 20.5 22 2.5
TABLE 4.2

2cm = 1 unit

From the study, it is clear that the preferred investment options are as follows:
• About 70% of respondents preferred investing in mutual funds and bank deposits
due to safety and investment planning by AMCs.
• A moderate number of respondents (22%) preferred to invest in the stock market.
• The remaining 8% of respondents preferred only real estate investment.
•

This data reveals that the common investor is keenly looking at the safety of principal in this
volatile stock market.

3) Do you have a DEMAT Account?

YES NO
24 23.5
TABLE 4.3

49
 2cm = 1 unit

This question reveals that the number of respondents who opened DEMAT accounts so far of
the total respondents spread of half are towards DEMAT account which means only 48
respondents are investing in electronic form of shares and remaining people are invested in
other traditional investment options where there is no need of a DEMAT account.

4) For online trading what are the essential for an investor:

PAN Card DEMAT A/c Bank A/c All options

12 12 11.5 12

TABLE 4.4

Only 24 respondents are aware of total requirements for stock trading and investment
remaining 71 respondents does not have awareness on base requirement for stock market
investment and they are not actively investing in stocks.

50
 2cm = 1 unit

5) Are you a Long term investor or short term investor

Long term Short term

43% 36%
TABLE 4.5

From the study it is clear that long term investor or short term investor.

51
 • 43% of people preferred to invest in long term, which enables them to wealth
maximization.
• 36% of people preferred to invest in short term, by which they want to earn profit from
the fluctuations and volatility of the stock market.
• The remaining 21% of respondents are looking at their traditional investment avenues
like bank deposits and real estate to have liquidity safely.

6) How long you are trading online.

Method of Investing 1 year 1yr - 2 yrs 2yr – 5 yrs Above 5 yrs

No. of respondents 12.5 22.5 9.5 3
TABLE 4.6

2cm = 1 unit

From the study, it is clear how long people have been trading online. 74% of the respondents
are long-term users of the online trading mechanism. The period of their usage ranges from 2
years to 5 years. Hence, the data reveals that many of the investors are fully aware of the
online trading mechanism of various financial products.

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7) Is there any difference between On-line trading and Off-line trading.

No Don't know If yes specify

9.5 18 20
TABLE 4.7

2cm = 1 unit

From the study, it is clear that there is a difference between online trading & offline trading.

• 19 respondents (i.e., 20%) do not distinguish between online and offline trading.
• About 38% of respondents are not aware of any differences between online and offline
trading systems.
• A major portion of respondents are clearly aware of the differences between online
trading and offline trading mechanisms.

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8) Are you aware of trading timings?

Yes No Not respondents

23 19.5 5
TABLE 4.8

2cm = 1 unit

From the study, it is clear that respondents are aware of trading timings.

• About 52% of respondents are aware of trading timings of stock exchanges.

• About 37% of respondents who trade only through brokers are not aware of trading
timings.
• The remaining 11% of respondents did not respond to this question.

Hence, it is concluded that only investors executing transactions on their own computers are
well aware of trading timings.

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9) The On-line trading started in the year of

2012 2014 2016 Don’t know

7 15 19 6.5

TABLE 4.9

2cm = 1 unit

Online trading started in the year 2012. From the study, it shows that only 36% of respondents
are aware of the actual year of commencement of online trading in the country, and the rest of
64% of respondents are not aware of the fact.

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10) How do you access the Online trading.
By By personally meets the broker for The phone instruction to
own instruction Broker
18 17 12.5
TABLE 4.10

2cm = 1 unit

From the study it is clear that access the On-line trading.

About 37% of respondents are aware of access online trading by their own. About 35% of
respondents who are not access online trading only through brokers for instructions and 25%
of respondents are also not aware only through phone instruction to broker.
Hence it is concluded that the only the investors executing transactions on their own
computers so they are well aware of accessing the online trading.

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11) Who will regulate the On-line Trading

SEBI RBI NSDL & CSDL ALL OF ABOVE

11 15.5 6.5 14.5
TABLE 4.11

2cm = 1 unit

From the study, it is clear that regulate the On-line trading.

Only 27% of respondents are aware of total SEBI for stock trading and investment. Remaining
35% of respondents does not have awareness of rules for basic requirement for stock market.

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12) In cash received immediately after placement of order.

Received immediately T+2 days Don't know

11.5 27.5 8.5
TABLE 4.12

2cm = 1 unit

From the study it is clear that if cash received immediately after placement of order.

About 57% of respondents are aware of trading T+2 days in the stock market. Remaining 17%
of respondents do not have awareness of T+2 days.

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13) The transaction will execute in

1 day 3 days Trading week

17.5 15.5 14.5
TABLE 4.13

2cm = 1 unit

From the study, it is clear that transactions will execute in online trading.

About 35% of respondents are aware of transactions in online trading only 1 day. About 31%
of respondents are also aware of transactions for requirements in online trading only 3 days.
About 28% of respondents are aware of trading week transactions will execute.

Hence, it is concluded that investors are well known to execute the transactions only in one
day to buy and sell the shares.

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14) Is there any review system after placing the order?

Yes No Don’t know

18 15 12
TABLE 4.14

2cm = 1 unit

From the study, it is clear that a review system exists after placing an order.
About 37% of respondents are aware of the review system after placing orders in online
trading. About 31% of respondents are not aware of the review system after placing the order.
About 25% of respondents are not aware of the review system after placing the order.
Hence, it is concluded that investors are well aware of the review system after the transactions
of placing the order.

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15) By which means you are getting confirmation of trading.

By e-mail directly By Post By Broker Email

17.5 15 10
TABLE 4.15

2cm = 1 unit

From the study, it is clear that confirmation of trade.

About 37% of respondents are aware of confirmation of trading by e-mail directly. About 31%
of respondents are aware of confirmation of trading by post. About 21% of respondents are
aware of confirmation of trading by broker e-mail.

Hence, it is concluded that investors are well known that after placing the order they are
getting confirmation of trading by e-mail directly.

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16) Do you feel on-line trading is more convenient than the outcry method?

Good Not Convenient Can’t Say

20.5 9.5 17.5
TABLE 4.16

2cm = 1 unit

From the study, it is clear that online trading is convenient compared to the outcry method.
About 43% of respondents are well aware that online trading is more convenient than the
outcry method. About 20% of respondents find online trading not convenient. About 36% of
respondents are not aware of online trading and the outcry method.
Hence, it is concluded that investors prefer executing transactions through online trading
rather than the outcry method.

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17) Is there any limitation in quality of shares for placing a buying/selling order?

No Don’t know If yes specify

10 12.5 24.5
TABLE 4.17

2cm = 1 unit

From the study, it is clear that there is a limitation in the quality of shares for placing a
buying/selling order.

About 21% of respondents are not aware of limitations in the quality of shares for placing
buying/selling orders. About 26% of respondents are not aware of the limitations of the quality
of shares for placing buying/selling orders, and a major portion of respondents have clearly
been aware of the limitations in the quality of shares for placing buying/selling order
mechanisms.

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18) Is there any difference between common investor and institutional investor?

No Can't say If yes, Specify

10.5 11 26
TABLE 4.18

2cm = 1 unit

From the study it is clear that different between common investor & institutional investor.

About 22% of respondents does not aware of distinguished between common investor and
institutional investor. About 23% of respondents are not aware of any difference between
common investor & institutional investor and 54% of respondent’s majority have clearly
aware of the difference between common investor & institutional investor.

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CHAPTER – V
FINDINDS
SUGGESTIONS
CONCLUSION

65
FINDINGS

• Lack of transparency in the manual trading system lead to the development of online
trading SYSTEM.
• It avoids procedural delay involves in the manual trading system and reduced cost.
• Facilitates easy surveillance so that there is less scope for speculation.
• Provides the investors with the best possible facilities services.
• Bring transparency in the operation of the exchange.
• Online trading is said to be dealing of securities on net, which forms a single location
anywhere we can service investors across the country.
• Online trading facilities easy survivalance so that there are possible facilities.
• Trading on the Internet has opened opportunities for real investors, the information on
securities is available directly to the investors through online.
• Now it provides secure depository system with an extensive network in dematerialized
format.

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SUGGESTIONS:

The companies should come up with more and more innovative features in their web portals.

• We came to know about the most important factor about the product with the help of
factor analysis, so we should go for changing the product according to the customer
need.
• We should also focus upon the value-added services. Generally, company does claim
that if you will buy the product you will get these benefits but company doesn’t provide
the services here. So, services always do matter when we talk of ONLINE TRADING

o Company should also look for the problem which customer generally face
when they do trading (like problem of operating properly)
o The customer should be educated regularly regarding the new technologies and
techniques of trading online and also other relevant information.
o The companies should look after to develop more safe and secure ways of
transacting business online.
o The companies should make maximum efforts to detect fraud cases and
minimize them.

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CONCLUSION :

The online trading is growing with a rapid pace with the rising level of education among the
customers. The other factors being that the Indian Investor nowadays wants to deal himself in
trading rather than depending upon other middlemen.

They also consider the factors like time saving in doing the online transactions, convenience
etc. Although some people feel that online trading is not secure but the people doing the
trading online is happy about the increasing security concerns among the companies.

The year 2016 has not been so good for the stock market and the Sensex and Nifty has been
dipping and affecting the business negatively for these companies. This is due to the fact that
at these times people do not prefer to open the DMAT and Trading accounts. So the companies
have to reduce their account opening fees to attract more and more customers.

Also people trade very less in the bearish market and the company’s profits against brokerage
fees soars downwards. It is also a found fact that during the bearish market the ratio of online
trading becomes very less.

Also there is an intense competition among the companies and the companies come up with
new and new promotion schemes such as discounted and negotiable brokerages, Zero balance
accounts, waiving a/c opening fee and AMC etc. As the internet penetration is growing in
India this business holds a huge potential for growth.

The mantra for success in the current situation will be educating the customers about the
benefits of online trading and the amount of ROI that can be generated through it. The total
trading volume of brokerage companies has increased from US$1239.1 billion in 2004 to
US$1492.1 billion in 2005, and is expected to reach US$6535.7 billion by 2015.

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QUESTIONNAIRE: -

1. Are you an investor in the stock market?

a) Yes b) No

2. Investment option you preferred?

a) Method of Investing b) Equity c) Mutual fund d) Bank e) Real Estate

3. Do you have a Demat Account?

a) Yes b) No

4. For online trading, what are the essentials for an investor?

a) PAN Card b) DEMAT A/c c) Bank A/c d) All options

5. Are you a long-term investor or a short-term investor?

a) Long-term b) Short-term

6. How long have you been trading online?

a) Method of Investing b) 1 year c) 1yr - 2yrs d) 2yr - 5yrs e) Above 5 yrs

7. Is there any difference between Online trading and Offline trading?

a) No b) Don’t know c) If yes, specify

8. Are you aware of trading timings?

a) Yes b) No c) Not respondents

9. The Online trading started in the year of

a) 1995 b) 1999| c) 2000 d) Don’t know

10. How do you access Online trading?

a) By own b) By personally meeting the broker for instruction c) By phone
instruction to broker

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11. Who regulates Online Trading?
a) SEBI b) RBI c) NSDL & CSDL d) ALL OF ABOVE

12. Is cash received immediately after order placement?

a) Received immediately b) T+2 days c) Don’t know

13. The transaction will execute in?

a) 1 day b) 3 days c) Trading week

14. Is there any review system after placing the order?

a) Yes b) No c) Don’t know

15. How do you receive confirmation of trading?

a) By email directly b) By Post c) By Broker Email

16. Do you feel online trading is more convenient than other methods?
a) Good b) Not Convenient c) Can’t say

17. Are there any limitations on the quality of shares for placing a buying/selling
order?
a) No b) Don’t know c) If yes, specify

18. Is there any difference between a common investor and an institutional

investor?
a) No b) Can’t say c) If yes, specify

70
 BIBLIOGRAPHY: -

WEBSITES:

• www.zenmoney.com
• www.nseindia.com
• www.bseindia.com
• www.on-linetrading.com
• www.sebi.gov.in
• www.lse.co.in

BOOKS:

• Investment Management – V.K. Bhalla

• Investment Management – Preethi Singh
• Security Analysis And Portfolio Management – V.A. Avadhani
• Marketing Of Financial Services – V.A. Avadhani
• Indian Financial System – M.Y. Khan
• The Intelligent Investor – Benjamin Graham
• How To Make Money In Stocks – William J. O’Neil

NEWSPAPERS:

• Moneycontrol
• The Economic Times
• The Hindu Business Line
• Google Finance
• Livemint
• Yahoo Finance

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