PROJECT REPORT

ONLINE TRADING
AT
ICICI BANK LIMITED, HYDERABAD
MASTER OF BUSINESS ADMINISTRATION

Submitted by

(Student Name)

HT NO: 21WJ1E****

Under the Guidance of

Mr. ********************

ASSISTANT PROFESSOR

School of Management studies

GURUNANAK INSTITUTIONS TECHNICAL CAMPUS

(Autonomous)
 PAGE
CHAPTER CONTENTS
NO.
INTRODUCTION
 Objectives of the study

CHAPTER - I  Need for the study

 Scope of the study
 Research Methodology

CHAPTER - II REVIEW OF LITERATURE

CHAPTER - III COMPANY PROFILE

CHAPTER - IV THEORETICAL FRAMEWORK

CHAPTER - V DATA ANALYSIS & INTERPRETATION

 Findings
CHAPTER - VI  Suggestion
 Conclusion
Annexure / Questionnaire
INDEX
ABSTRACT
 CHAPTER-1

INTRODUCTION
INTRODUCTION
Stock market

A stock market or equity market is a public market (a loose network of economic

transactions, not a physical facility or discrete entity) for the trading of companystock and
derivatives at an agreed price; these are securities listed on a stock exchange as well as those
only traded privately. The size of the world stock market was estimated at about $36.6
trillion US at the beginning of October 2008. The total world derivatives market has been
estimated at about $791 trillion face or nominal value, 11 times the size of the entire world
economy. The value of the derivatives market, because it is stated in terms of notional
values, cannot be directly compared to a stock or a fixed income security, which
traditionally refers to an actual value. Moreover, the vast majority of derivatives 'cancel'
each other out (i.e., a derivative 'bet' on an event occurring is offset by a comparable
derivative 'bet' on the event not occurring). Many such relatively illiquid securities are
valued as marked to model, rather than an actual market price. The stocks are listed and
traded on stock exchanges which are entities of a corporation or mutual organization
specialized in the business of bringing buyers and sellers of the organizations to a listing of
stocks and securities together. The largest stock market in the United States, by market cap
is the New York Stock Exchange, NYSE, while in Canada, it is the Toronto Stock Exchange

Trading

Historically, stock markets were physical locations where buyers and sellers met and
negotiated. With the improvement in communications technology in the late 20th century,
the need for a physical location became less important, as traders could transact from remote
locations. Participants in the stock market range from small individual stock investors to
large hedge fund traders, who can be based anywhere. Their orders usually end up with a
professional at a stock exchange, who executes the order. Some exchanges are physical
locations where transactions are carried out on a trading floor, by a method known as open
outcry. This type of auction is used in stock exchanges and commodity exchanges where
traders may enter "verbal" bids and offers simultaneously. The other type of stock exchange
is a virtual kind, composed of a network of computers where trades are made electronically
via traders. The shares of a company may in general be transferred from shareholders to
other parties by sale or other mechanisms, unless prohibited. Most jurisdictions have
established laws and regulations governing such transfers, particularly if the issuer is a
publicly-traded entity.

The desire of stockholders to trade their shares has led to the establishment of stock
exchanges. A stock exchange is an organization that provides a marketplace for trading
shares and other derivatives and financial products. Today, investors are usually represented
by stock brokers who buy and sell shares of a wide range of companies on the exchanges. A
company may list its shares on an exchange by meeting and maintaining the listing
requirements of a particular stock exchange. Actual trades are based on an auction market
model where a potential buyer bids a specific price for a stock and a potential seller asks a
specific price for the stock. (Buying or selling at market means you will accept any ask
price or bid price for the stock, respectively.) When the bid and ask prices match, a sale
takes place, on a first-come-first-served basis if there are multiple bidders or askers at a
given price. The purpose of a stock exchange is to facilitate the exchange of securities
between buyers and sellers, thus providing a marketplace (virtual or real). The exchanges
provide real-time trading information on the listed securities, facilitating price discovery

Online trading is the act of buying and selling financial products on the internet via an online
trading platform. This might include the trading of bonds, stocks (shares), international
currencies, futures, and other financial instruments. Why is now the time to take up online
trading, you ask? Simple. You can make money from within your home, meaning that even
during lockdown you can make trades. Given that all trades are made via the internet, you can
make deals on the financial market within seconds or even less. But there are a few key things
every beginner should know about online trading before they tumble headfirst into the virtual
trading world.

Online trading is a fairly popular method of transacting in financial products online.

Brokers have gone online, with their platforms providing all kinds of financial
instruments like stocks, commodities, bonds, and futures.
 Traditionally, when a buyer wanted to invest money in stocks, he used to call his brokerage
firm and asked for putting in a request to buy stocks of a given company for a specified
amount.

 The broker would then let him know the market price of the stocks and would confirm the
order.

 After the user confirmed his trading account, the broker's fees and the time period required
for the order, the order would get placed on the stock exchange.

 As is obvious, this method had multiple steps and was pretty long drawn. Not
surprisingly, ONLINE TRADINGplatforms have taken over the entire trading landscape
because of their advantages:

 The users can open, manage and close accounts sitting at their homes, working on a device
with internet.

 Transactions can be made much more easily.

 Multiple financial products, which earlier needed to be bought from specific places or
banks, can now be bought and sold online, which also reduces the the role of an
intermediary and saves time.

 The money used is real and the user gets to analyze and choose from the various options of
stocks and products available.

Online trading is a simple digitized version of offline trading. It is simply buying and
selling assets through a brokerage's internet-based trading platforms. Online trading has
opened other varied options, with stocks, bonds, mutual funds, futures, and also being
traded online now.

Brokerage firms make the trade for any trader or investor. An online trading account is
typically linked to a Depository Participant and a bank account (one that your broker
has a tie up with). One large Benefits of online trading is the speed with which
transactions are executed and settled. Since the entire process is digitized and there are
no physical documents to be copied and filed, the entire process is a lot faster.
Transactions take a matter of seconds now that prices can be searched and compared
against multiple databases. Exchange with the best price is matched and a confirmation
is sent to both ends i.e the buyer and the seller.

When a user places the order for buying any particular stock on an online platform, his
order gets saved in the database of the trading member platform and the exchange
platform. This data is then used to look across all platforms selling that particular stock
and display the result with the best price available. If the price matches with the user’s
demands and he confirms the order, then the process is validated by both the parties.
After all that is completed, the broker usually has three days to complete the settlement
of the money, and hence, the money is transferred to your account.

Many online trading platforms provide analysis of stocks, which helps the users to find
the status of the stock market. This also helps them predict the situation of stocks in
upcoming days and shape their decisions. Online platforms attract users through ease of
use and reduced commission fees. Ultimately, having a properly funded account is
essential to execute trades smoothly on a platform.

Section I.01 OFFLINE VS ONLINE TRADING

As online trading increasingly widens its roots into the modern trading market, retail
trading finds its place in local stock exchanges and offices. The impact of online trading
over offline has been noticeable with the evolution of computers and internet, in the
past two decades. Online trading does provide a lot of advantages which are difficult to
achieve offline.

The cost of the stocks and various financial products has reduced significantly. Online
platforms provide a far more inexpensive experience, which attracts a majority of
traders and investors. This has become possible because online trading eliminates the
majority of the middlemen, which in turn, decreases the extra added price of
commissions over these products.

Online trading is much faster as compared to offline trading. It is also easier to find the
price of securities when the information is flowing electronically. Receiving updates
regarding price changes in the form of price alerts, makes it easy to transact shares.
Thus, reducing the processing time. It also enables buying products from any location
in the world. Hence, it is not necessary to go to a definite place to trade.

As online trading platforms are surplus in number, the competition between them
results in a benefit for the trader or investor. These platforms, for better marketing and
gaining greater users, release offers and discounts which enables the users to buy
products at lesser prices or sell them at higher prices, ultimately, benefitting the users.
This happens, but rarely in offline trading.

THE SYSTEM OF TRADING

When you buy or sell a stock through online trading, you order gets executed within
seconds. But, within these seconds lots of operations take place which you are unaware,
such as:

 Your order is registered.

 Your order is placed in a database

 It searches for a for a seller and when both buyer and seller is matched, a confirmation
message is sent to both the parties.

 The order and the price are reported to the regulatory bodies. These regulatory bodies
look over all the trading activities and are displayed to all the investors.

 Your trading records are stored in case regulators want to study your past transactions.

 A contract is sent to your broker who sold the shares and the broker who bought them.

 After all this, the brokers have 3 days to exchange the cash and shares which is called
settlement.

 After this process, the money or the shares are officially in your account.
THE PROCEDURE OF TRADING

 Researching and Choosing a Stock:

You should perform value research, technical analysis, try identifying patterns,
understand short selling etc.

 Choosing a Brokerage Partner:

You can see this article to learn how to choose the best broker

 Learning to Trade Stocks:

You can learn to trade through a trading account and a demat account easily.

 Making Smart Investment Decisions:

Try to decide which stocks you can afford to trade, diversify your portfolio, research
before you invest and buy good stocks at a low price.

Section I.02 Steps to open a trading account online:

1. TheAadhaar-based eKYC:

These days it’s far simpler and faster to open your trading account - using the
Aadhaar based paperless registration. This method uses your Aadhaar card details to
complete your registration process online, as long as you have a valid mobile
number linked to your Aadhaar card. Keep all of your scanned copies of your
personal documents (PAN Card, Aadhaar card, and a cancelled cheque) on your
device. You will be required to upload them during the registration process, after
you’ve progressed past the Aadhaar linking step.

2. Paper Registration:

Start by downloading the trading account opening forms. The documents will
include both the account opening forms and the KYC forms. Print out these forms,
and fill in the required fields. You’ll also need 2 passport-size, self-attested
photographs to affix in these forms. Once you are done completing the forms, sign in
the the required places and attach your self-attested personal documents (PAN card,
 ID proof and address proof). Now you have to hand it over to your brokerage firm
personally or by post.

OVERVIEW OF ONLINE TRADING

The stock or capital stock of a business entity represents the original capital paid into or
invested in the business by its founders. It serves as a security for the creditors of a business
since it cannot be withdrawn to the detriment of the creditors. Stock is distinct from the
property and the assets of a business which may fluctuate in quantity and value. Buying a
stock for the long term means that you want to own part of a company and you think that in
the future the company will be profitable. If you buy stock in a company and the company
performs well, the stock's price should rise. If the company fails, then the stock should fail
you, too and go down. The stock exchanges actually compete with each other for these
listings, since companies that attract more trading make more money for the stock exchange
that listed it. Company stocks are assigned a "ticker" or trading symbol by the listing
exchange. You may notice some well-chosen tickers that are easy to remember, like "DNA"
for the company Genentech, a biotechnology firm. Or some companies' ticker is the same as
its name, Nike for example
NEED FOR THE STUDY

 The study will provide a very clear picture of the impact of foreign institutional investors
on Indian stock indices. It will also describe the market trends due to FIIs inflow and
outflow. The study would be helpful for further descriptive studies on the ideas that will
be explored.

 SEBI in September 1996 has issued guidelines to the stock exchanges to go for online
trading procedure by the end of the year 1996.

 Following its directions ICICI Bank .

 The major need for this study is to know the effectiveness of the on-line system in
comparison with the outcry or mock trading to study its advantages & recommend for
beneficial & effective use of the system.
OBJECTIVES OF THE STUDY
 To understand derivatives, capital market and stock markets
 To understand the online trading and it's process in ICICI Bank stock broking Ltd.
 To analyse share price data of various firms.
 To elicit investor’s opinion on trading through ICICI Bank stock broking
SCOPE OF THE STUDY
 To know the procedure of online trading/screen based trading.
 It helps the investor to manage and control the trade transactions as well as executions.
 It will useful to monitor the investor from anywhere and any time.
 To Provide advices to the Clients about the Trading.
 To know the trading procedure at “ICICI Bank .
RESEARCH METHODOLOGY
The research methodology defines what the activity of research is, how to proceed, how to
measure progress, and what constitutes success. It provides us an advancement of wealth of
human knowledge, tools of the trade to carry out research, tools to look at things in life
objectively; develops a critical and scientific attitude, disciplined thinking to observe
objectively (scientific deduction and inductive thinking); skills of research particularly in
the ‘age of information’. Also it defines the way in which the data are collected in a research
project. In this paper it presents one components of the research methodology from a real
project, the theoretical design and framework respectively.

Sources of Data: - Data, facts, figures, other relevant material of past and present and
surveying are the basis for study and analysis. Without an analysis of factual data no
specific inferences can be drawn on the questions under study. Inferences based on
imagination or guesses cannot provide correct answer to research questions.
The relevance adequacy and reliability of data determine the quality of the findings of a
study.
For the purpose of the present study, data from two sources has been collected, namely
primary data and secondary data.

PRIMARY DATA:
Primary data is source from which the researcher collects the data. It is a first-hand data,
which is used directly for the analysis purposes. Primary data always gives a researcher a
fairer picture. In the present study primary data has been collected using questionnaires. For
the purpose of collecting the same, 50 respondents have been randomly selected. Even the
response of the respondents was taken into consideration. In this study, primary data plays a
vital role for analysis, interpretation, conclusion and suggestions.

SECONDARY DATA:
Secondary data is the information which collected from the secondary sources like Google,
Newspapers and libraries and so on.
Research Design: Exploratory research design has been taken.

Exploratory research design:

Exploratory research is research conducted for a problem that has not been clearly defined.
It often occurs before we know enough to make conceptual distinctions or posit an
exploratory relationship. Exploratory research helps determine the best research design, data
collection method and selection of subjects.

Sample Area:
Hyderabad city is being taken as a sample area for study.

Sample Size:
The research made use of primary data, which was collected by the 120 respondents but out
of which only 100 has responded to the questions that’s why the research has been carried
on 100 respondents.

Data Collection Instrument:

Structured Questionnaire

Sampling Techniques:
We have used a Non-Probabilistic Sampling Technique that is, Convenience Sampling.

TOOLS AND TECHNIQUES:

As per the requirement of the objectives, the researcher has preferred to use
Tables, Charts and Graphs.
LIMITATIONS OF THE STUDY

 The required data may not be available due to which it cannot be accurate.
 Some of the important information is included because of time constraint.
 It was deliberately difficult to collect the data from the clients, as they are apparently
busy
PROJECT TITLE:ONLINE TRADING AT ANGEL BROKING

SUBMITTED BY: BADEPALLY VENKATESH

HALL TICKET NO: 20831E0003

UNDER THE GUIDANCE OF:

DR.B.MADHUSUDHAN REDDY(HOD)
 CHAPTER – 2
REVIEW OF LITERATURE
 REVIEW OF LITERATURE
Charles (2010) 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 existing wealth.

Bhardwaj (2017) has stated the literature on globalization, He found the pervasiveness of
the west’s perception of the world effect 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 (2018), 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 this field.
Shrotriya (2018) conducted a survey on investor preferences in which he depicted the
linkage of investment with the factor so considered while making investment. He says
“There are various factors and their linkage also. These factors help us how to ensure safety,
liquidity, capital appreciation and tax benefits along with returns.”

Dijk (2019) 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 further research.

Vasudev (2019) 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 program. 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 (2019) 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
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 (2018) 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 (2018) 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 (2018) has analyzed the 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
finance. Under this framework, the study evaluates current Indian corporate governance
practices in light of external finance.

Rajeshwari and Moorthy 2018 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 and marketing.

Atkinson (2018) 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.
Henry (2018) 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 (2018) find that the size of the economy is an important factor in the
development of liquid and well-functioning securities markets.

Mishkin (2018) 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 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. (2017)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. (2018) find that privatization programs and foreign direct investment
contribute to stock market development.

Naceur et al. (2019) 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.
 CHAPTER – 3
INDUSTRY PROFILE
COMPANY PROFILE
 INDUSTRY PROFILE

Brokerage Industry in India, Stock Broking sector in India. In The financial brokers offers
financial advice to the firm or the individual. India's broking industry is transitioning from a
transaction-based to a fee-based model, offering services such as investment advisory and
wealth management. Apart from advisory services, emphasis on fund-based activities,
including loan against shares and margin funding, is rising, allowing brokers to build
sustainable earnings. Financial brokers have developed their marketing ability to support
customers in achieving their goals. They offer wide-ranging products and services that
strengthen their relationship with clients.

The industry gained popularity, owing to a significant increase in trading activities.

Financial brokerage firms have generated revenues from stocks, commodities, and currency.
The financial brokerage market operates through different business verticals including full-
service, discount, and hybrid brokerage. The full-service brokers segment accounted for the
significant share of the brokerage market in FY 2020, followed by discount brokers and
hybrid.

Major players operating in the market include Angel Broking Limited, Geojit Financial
Services Limited, ICICI Securities Limited, and Kotak Securities Limited.

Impact of COVID-19The pandemic and prolonged global lockdown severely impacted

India's financial market and liquidity position. A struggling economy in India, coupled with
the outbreak of COVID-19, has led to an apprehension in which capital market investments
have become a challenge for investors.

While the Indian economy has been experiencing massive pressure of the COVID-19
pandemic, the trading volumes in the domestic capital market started to recover after the
lockdownwas lifted. It reached an all-time high in July 2020.

Market segment insights

 In FY 2020, full-service brokers held the highest market share (~58%) of the overall broking
industry based on NSE active clients. The shift of the trading platform from offline to
online-offline mode increased the revenues generated by full-service brokers. However, in
India, full-service brokers have been experiencing unstable growth as leading companies are
losing considerable market share to discount brokers.

Key growth drivers of the market

 Technological innovations is a significant driver for the increasing participation of investors

in equity markets. The pandemic resulted in a significant meltdown in the stock market.
Improved financial awareness lead to a 30% growth in Demat account openings. About 6.3
Mf accounts were opened in the first half of FY 2021. Post demonetization, fintech
companies have played a significant role in the growth of the brokerage market, backed by
increased smartphone users and high internet speed with low data costs. Retail investors use
mobile-based trading as they primarily invest in convenient and user-friendly apps with
secure platforms

 In India, brokerage houses offer global investment services that permit their customers to
own blue-chip stocks in the US. Investors' demand for portfolio diversification is one of the
key drivers that encourage firms to provide these services. Broking firms entered into
international partnerships, indicating a good demand for such services. In September 2020,
Kuvera, an online platform for investments in India's mutual funds, partnered with the US
Securities and Exchange Commission's listed investment adviser, Vested Finance. This
partnership permits investors to purchase stocks from the US on its online platform.

Key deterrents to the growth of the market

Lack of financial knowledge is a significant reason behind the under-penetration of the

brokerage market. Several Indians are not aware of shares, stocks, and mutual funds. They
 do not know how to invest in them to reap high returns compared to traditional investment
tools. Most people are also ignorant of the basic financial concepts such as reward (return)
to variability (risk) ratio, asset allocation, and diversification benefits.

Companies Covered

 Angel Broking Limited

 Geojit Financial Services Limited
 ICICI Securities Limited
 IIFL Finance Limited
 Kotak Securities Limited
 Motilal Oswal Financial Services Limited
 Reliance Capital Limited
 SMC Global Securities Limited
 HDFC Securities Limited
 Sharekhan Limited
 Upstox
 5paisa
 Zerodha

Brokerage Industry | Stock Broking in India

January 2021 alone, 1.7 million new demat accounts were added marking it to be the
highest monthly increase.
As of January 2021, India’s total demat accounts stood at 53 million, compared to 41
million at the end of FY 2019-20. There was a surge in retail participation in the stock
market after people were forced to stay home since the outbreak of the coronavirus
pandemic.
Stock Discount brokerage Industry

Brokerage Industry in India

The functions of the financial market, including stock broking has witnessed a radical
change after digitization and has paved the way for new clients.
Unlike traditional brokers, the role of discount brokers is mainly limited to providing an
online trading platform to customers.

(a) Discount brokerage industry

The growing surge in smartphone users along with increasing internet penetration has made
it convenient for discount brokers to capitalize on the market opportunities and enable
customers trade online at almost zero cost.
This number is expected to rise by 820 million by 2022 according to the Economic Times
Study.

Another key factor driving the growth of the discount brokerage industry is India’s
demographic profile. India has the largest working-age population with millennials (those
with a median age of 18 to 35) accounting for 36% of the population and projected to be
50% of its workforce by 2025.

Millennials, who are more tech savvy and price conscious, have favored discount brokers
over traditional brokers because of the former’s simplicity and fast-paced nature of services.
Discount brokerage charges are usually close to nil which has attracted investors. Besides
low brokerage, independent advisory services, offering informative content free of cost
further gives an edge to the discount brokers.

Discount brokers provide unrestricted access to information on their website and

applications, which attracts large customers. Moreover, discount brokerages have no wested
interest in buying or selling a stock; that gives customers more confidence on their unbiased
services.
First-time investors are also more inclined towards the discount broker services at it
provides customization.

Section I.03 Going Forward and Future

The nature of interaction of stockbrokers with potential investors has undergone a massive
change over the years.

Recommended for you

While traditional or full-service brokers have always enjoyed a dominant presence and
preference among investors, a demographic shift towards technology has given rise to a new
breed of stockbrokers, known as discount brokers.

Unlike a traditional broker, a discount broker’s services are limited and restricted primarily
to providing a trading platform. A tectonic shift in investor patterns with respect to
participation in the market, has given a boost to discount brokerage services in India.
However, internet penetration coupled with smartphones has made it easier for investors
to cash in on a market opportunity by placing trade orders on platforms offered by discount
brokers.
Indian investors have always been price conscious. The emergence of discount brokers
offering low brokerage on a per-order basis has led to a shift in the market share of active
customers.

The integration of technology has brought in much-needed efficiency into a discount

broker’s day-to-day operation. Right from seamless account opening process to automated
integration of processes has made life easier for an investor. The demographic shift towards
technology augurs well for discount brokers in India.
COMPANY PROFILE:

ARTICLE II. ONLINE TRADING IN THE SHARE MARKET

At Angel One Limited (formerly known as Angel Broking Limited), a digital-first approach
is something that has always been deep rooted in our hearts. Right from the time we started
our operations, we have effectively leveraged technology to deliver our products, services,
and class-leading experience to our ever-expanding client base. And as one of the original
trailblazers in the stock broking industry, we have been leading from the front for over two
decades. For quite a few years, we have been first-hand witnesses of the rise of a new age of
young investors. In fact, we were one of the first broking houses to recognize the evolving
expectations of this set of investors, which goes far beyond just mutual fund investments
and stock trading and into the realm of rule-based investing trading. This led us to Angel
One.

With the Angel One brand, the Company is transitioning into a new-age FinTech platform
capable of enabling millennials from new age India to meet their financial dreams. We’ll
continue to onboard customers digitally, deliver the most cutting-edge solutions at the
comfort of a mobile tap.

Over the years, we have become leaner yet stronger, and have been fruitfully tapping new
geographies and onboarding millions of new customers including tier-2 and tier-3 cities as
well. It’s no wonder then, that our Company is the largest listed retail broking house in India
in terms of active clients on NSE as of December 31, 2021.

Our popularity with millennials attests to the fact that we have penetrated deeper into the
broking industry with a range of digital products that remain unmatched in the industry. Our
products such as the ARQ Prime, Angel BEE and Smart Money have been received with
tremendous enthusiasm and millions of users are paving their way to a smarter, richer, and
better tomorrow.

We are a technology-led financial services company providing broking and advisory

services, margin funding, loans against shares (through one of our Subsidiaries, AFPL) and
financial products distribution to our clients under the brand “Angel One”. Our broking and
allied services are offered through (i) our online and digital platforms, and (ii) our network
of over 16,000+ registered Authorized Persons (the “Authorized Persons”), as of December
31, 2021.

Angel One Limited (formerly known as Angel Broking Limited) is a member of the
Bombay Stock Exchange (BSE), National Stock Exchange (NSE), Metropolitan Stock
Exchange of India (MSEI), NCDEX & MCX. Angel One Limited is also registered as a
Depository Participant with CDSL.

Start Trading with Angel One Demat Account Today!

 SECTION II.01
SECTION II.02 ACCESS DETAILED RESEARCH REPORTS FROM
OUR DEDICATED RESEARCH TEAM

Make informed investment decisions across equity, commodity, and currency segments with
our specific event-based daily, weekly, and monthly reports.

(a) Fundamental Research

We aim at identifying stocks that complement the investment objectives of our clients and
enhance the value of their portfolios
Know More >

(b) Trading Ideas & Reports

We generate short-term recommendations with a profound understanding of market
dynamics and key price drivers

(c) Knowledge Center

Learn about equity-related investment concepts & strategies in easy-to-understand language.
Our Products and Services
Here’s a quick look at the extensive range of products and services that Angel One
offers:
 Broking Services.
 Investment Advisory.
 Margin Trading Facility.
 Loan against Shares.
 Distribution of Third-Party Financial Products.
 Investor Education.
Choose from Our Wide Range of Offerings

Section II.03 Equity

Investing in shares or stock market is inarguably the best route to long-term wealth
accumulation.

Section II.04 Commodities

Commodities market has emerged as a new avenue for investors to create wealth.

Section II.05 Derivatives

The derivative segment is a highly lucrative market that gives investors an opportunity to
earn superlative profits.

Section II.06 Currency Trading

The forex market offers unmatched potential for profitable trading in any market condition
or any stage of the business cycle.
Choose from Our Wide Range of Offerings
Section II.07 Portfolio Management
Customized solutions to meet your investment goals in the current market scenario

Section II.08 Investment Advisory

Professional and expert advice that help you get superior returns, minimizes risk and
diversifies your portfolio

Section II.09 Intraday Trading

Avail the benefit of buying and selling stocks on the same day instead of waiting for 2 days

Section II.10 Trading Account

Using a trading account, trade or invest in stock markets with a unique identification
number
Section II.11 Portfolio Health Score
PHS Powered By ARQ will help you diagnose the health of your portfolio and construct and
manage your ideal portfolio

Section II.12 IPO

With Angel One, you can apply for and invest in any IPO (Initial Public Offering is the first
sale of equity shares of a company)

Section II.13 Loan Against Shares

Meet immediate money requirements not by selling your securities but by getting hassle-
free loans against them

Section II.14 DEMAT Account

Conveniently buy, sell as well as transact stocks without any paperwork

BOARD OF DIRECTORS
Mr. Dinesh D. Thakkar

Chairman and managing director

 Mr. Uday sankarroy
 Independent director
 Mr. Kamaljisahay
 Independent director
 Mr. Ketan shah

Whole time director

 Mr. Muralidharanramachandran
 Independent director
 Mr. Krishna iyer
 Non-executive director
 Ms. Mala todarwal
 Additional non-executive women independent director

SECTION II.15 AWARDS

2019
Franchise India recognized Angel One amongst top 100 Franchises in India for the year
2019 in its annual survey
SECTION II.16 2019
Angel Broking Ltd was awarded as 'Best Performing Retail Member' by NSE

2020
Angel Broking Ltd bags Silver Award for Digital Marketing Excellence in Social Media
(BFSI)' by DIGIXX 2020 for # ShagunkeShares Campaign

SECTION II.17 2020

Angel Broking Ltd bags Silver Award for Digital Marketing Excellence in Video (financial
Services) by DIGIXX 2020 for # ShagunkeShares Campaign

2020
Angel Broking Ltd was awarded as ‘Mobile Advertising Excellence in Use of Video (BFSI)
for Smart Sauda Campaign at MOBEXX Awards by Adgully

2020
Angel Broking Ltd was awarded as Mobile Advertising Excellence in Social Media
Campaign (BFSI) for Smart Sauda Campaign at MOBEXX Awards by Adgully

SECTION II.18 2020

Angel Broking Ltd bags Gold Award in Customer Service Effectiveness at the 9th Global
Customer Engagement Awards 2020 by ACEF for ORM

SECTION II.19 2020

Angel Broking Ltd bags by Silver Award in Digital Marketing for Successful use of
Technology for Smart Sauda Campaign at the 9th Global Customer Engagement Awards
2020 by ACEF
SECTION II.20 2020
Angel Broking Ltd bags Gold Award in Data Driven Marketing for Successful use of
Technology for Smart Sauda Campaign at the 9th Global Customer Engagement Awards
2020 by ACEF

SECTION II.21 2020

Angel Broking Ltd was awarded for Content in Search Marketing Campaign – Special
Mention by Inkspell in India Content Leadership Awards 2020

2020
Angel Broking Ltd was awarded for Financial Content of the Decade - Consumer Education
Initiative by Inkspell at The Decade Awards 2020

SECTION II.22 2020

Angel Broking Ltd bags Content in Search Marketing Campaign – Consumer Education
Initiative by Inkspell at MCube Awards

SECTION II.23 2020

Angel Broking Ltd bags Silver Award for PR Awards 2020 for Reimagining Stock Broking
For The Millennial India Organised by Campaign India

SECTION II.24 2020

Angel Broking Ltd bags Gold in the BFSI Sector by BuzzIn Content
SECTION II.25
SECTION II.26 2021
Angel Broking Ltd was awarded for 'Best Customer Education Initiative in the Equity
Broking Sector at Resulticks BFSI Digital Stallions Awards
SECTION II.27 2021
Angel Broking Ltd was awarded for 'Best Search Engine Optimization in the Equity
Broking Sector at Resulticks BFSI Digital Stallions Awards

SECTION II.28 2021

Angel Broking Ltd bags Silver in Most Consistent Excellence in Digital Publishing of
Content by India Digital Awards, IAMAI

SECTION II.29 2021

Gold Trophy for the Best Fintech Marketing Campaign (PR Category) at the IPRCCA

SECTION II.30 2021

Social Media Campaign of the Year for #ShagunKeShares by DigiGrad

SECTION II.31 2021

Bronze for Best Content Marketing in BFSI sector by DigiXX 2021

SECTION II.32 2021

Silver for Best Use of Organic Search by Digixx 2021

SECTION II.33 2021

Silver for Insights & Research in BFSI sector by DigiXX 2021
SECTION II.34
SECTION II.35 2022
Angel Broking Ltd bags Bronze in ET Brand Disrpution Awards 2022 in Trading and
Exchange for Launch of Disruptive Product - For SmartAPI Launch by ET Brand Equity

SECTION II.36 2022

Angel Broking Ltd was awarded 'Social Media Campaign Of The Year' in #VerySmartOne -
Social Media Campaign by BFSI Digital Stallions Forum
SECTION II.37 2022
Angel Broking Ltd was awarded 'YouTube Campaign Of The Year' in Overall BFSI
YouTube growth story by BFSI Digital Stallions Forum

Section II.38 Remote careers with India's finest

Section II.39 financial platform
Angel One (formerly known as Angel Broking) is India's most trusted Fintech firm driven
by technology and a mission to become the No. 1 fintech organization in India. With a
6 Million+ registered client base and more than 10 million app downloads, we are
onboarding more than 500K new users every month.
We are working to build personalized financial journeys for customers via a single app,
powered by new-age engineering tech and Machine Learning. We are a group of self-driven,
motivated individuals who enjoy taking ownership and believe in providing the best value
for money to investors through innovative products and investment strategies. We apply and
amplify design thinking with our products and solution. So come and onboard and join our
mission to provide India with its best full-stack Fintech platform.
 CHAPTER -IV
THEROTICAL FRAMR WORK
 CHAPTER -V
DATA ANALYSIS
 DATA ANALYSIS

1.AGE

TABLE:

Particulars Responds Percent

15-30 57 57%

31-45 20 20%

45-60 23 23%

Total 100 100%

Responds
23%

15-30
31-45
45-60
57%

20%

(Figure-1)

INTERPRETATION:In my research 57% of respondents are between the age group of 15-

30,20% are of 31-45 and 23% are of 46-60. As comparing with other age groups 15- 30 age

group people are interesting to invest in stock market.

2.Educational Qualification

TABLE:

Particulars Responds Percent

Post-Graduation 55 55%

Graduation 27 27%

Others 18 18%

Total 100 100%

Responds

18%

Post-Graduation
Graduation
Others
55%

27%

(Figure-2)

INTERPRETATION:in myresearch post graduates are very interested to do invest in the stock

market.55% of respondents are Post Graduated, and remaining 27% are graduated and 18% are

of other categories.

3.Do you feel safe while trading online?

TABLE:

Particulars Responds Percent

Yes 55 55%

No 45 45%

Total 100 100%

Responds

45%
Yes
No
55%

(Figure-3)

INTERPRETATION:The study reveals the only 55 % of its clients have respondents are

say YES, 45% of clients have responding the say NO.feel safe while trading, whereas others are

not. Because the market is not constant it will be fluctuated every minute.

4.In which segment you most trade online?

TABLE:
 Particulars Responds Percent
Mutual Funds 25 25%
F&O Equities 5 5%
Others 33 33%
Equity 27 27%
Commodities 10 10%
Total 100 100%

Percent

10% 25%
Mutual Funds
F&O Equities
27% Others
Equity
5% Commodities

33%

(Figure-4)

INTERPRETATION:in my research28% of the respondents are interested to invests in

Equities, and 25% of the respondents are interest to invest in Mutual Funds, 10% of the

respondents are interest to invest in Commodities, 5% of the respondents are interest to invest in

F&O Equities and 32% in Others.

5.Do you receive updated online information regarding the stock market from your

dealer/broker?

TABLE:
Particulars Responds Percent

Yes 100 100%

No 0 0%

Total 100 100%

Respondents

1
2

1
100%

(Figure-5)

INTERPRETATION: The study reveals the 100 % of its clients have responding to say YES,

and they receive updated online information from the broker.

6.Do you believe that your trader/broker is very successful in online trading?

TABLE:

Particulars Responds Percent

Strongly Agree 15 15%

Agree 40 40%

Moderate 30 30%

Disagree 5 5%

Strongly Disagree 10 10%

Total 100 100%

Responds
10%
5% 15% Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
30%
40%

(Figure:6)

INTERPRETATION:in my research15% of respondents are strongly agreed that their trader is

very successful in online trading, and remaining respondents of 40 % are agree, and 30% are

moderate views, remaining 5% of the respondentsare disagree ,10% are strongly disagree

7.Are the stock broking services provided by Angel One is good?

TABLE:

Particulars Responds Percent

Strongly Agree 15 15%

Agree 37 37%

Moderate 30 30%

Disagree 8 8%

Strongly Disagree 10 10%

Total 100 100%

Responds
10%
8% 15% Strongly Agree
Agree
Moderate
Disagree
Strongly Disagree
30% 37%

(Figure7)

INTERPRETATION:in my research37% of respondents are agree that stock broking services

provided good services by Angel One is satisfactory, and remaining 15% of the

respondentsstrongly agree,and 30% of the respondentsmoderate views,8% are disagree ,10% are

strongly disagree

8.What percentage of your annual income do you invest in share market?

TABLE:

Particulars Responds Percent

More than 20% 8 8%

10-15% 22 22%

Upto 10% 70 70%

Total 100 100%

Responds

8
22
More than 20%
10-15%
Upto 10%

70

(Figure-8)

INTERPRETATION:in my research 8% of respondents are more than 20% of income they are

invested in the stock market,and 22% of respondents are invested income in stock market10 to

15%, and 70% of respondents are more than up to 10%, their annual income in share market.

9.How was your DEMAT Account opened?

TABLE:

Particulars Responds Percent

Referral- Clients 17 17%

Personal Acquaintance 23 23%

Others 37 37%

Call/ Walk-in 13 13%

Total 100 100%

Responds

14% 19%
Referral- Clients
Personal Ac-
quaintance
Others
Call/ Walk-in
26%
41%

(Figure-9)

INTERPRETATION: in my research17% of respondents says that their account was opened

through referral clients, and 22% of the respondents said through personal acquaintance, and

13% of the respondents said through call/walk in, and 48% of the respondents said through

others.(advertisements from you tube, some web sites and many more)

10.What is your opinion relating to the rate of interest of margin funding facility of Angel

One?

TABLE:

Particulars Responds Percent

Excellent 15 15%
Average 35 35%

Poor 10 10%

Good 40 40%

Total 100 100%

Responds
15%

40%
Excellent
Average
Poor
Good

35%
10%

(Figure-10)

INTERPRETATION: in my research40% of respondents say that the margin funding facility of

Angel One is good ,35% of respondents say average,15% says excellent and other remaining say

poor.

11.Any other company whose service you like?

TABLE:

Particulars Responds Percent

Indian Bulls 32 32%

Sumpoorna 23 23%

Sharekhan 10 10%

Angel Broking 18 18%

Karvy 17 17%

Total 100 100%

Responds

17%
32%
Indian Bulls
Sumpoorna
Sharekhan
18% Angel Broking
Karvy

10% 23%

(Figure-12)

INTERPRETATION:in my research Majority of respondents feel that the service of Indian

Bulls is good than other companies including Angel One.

12.Income per month

TABLE:

Particulars Responds Percent

Below 15000 45 45%

15000-30000 10 10%

30000-45000 23 23%

Above 45000 22 22%

Total 100 100%

Responds
22%

45% Below 15000

15000-30000
30000-45000
Above 45000

23%
10%

(Figure-13)

INTERPRETATION:in my research 45% of respondents have income Below 15000, 10% of

the respondents have income between 15000-30000, and 23% of respondents have incomeAbove

45000, and 22% of respondents have income between 30000-45000.

13.Experience of Investors
TABLE:

Particulars No. Of responses Percentage

Less than 1 year 12 12%

1-5 years 38 38%

 6-10 years 36 36%

More than 10 years 14 14%

Total 100 100%

No. Of responses

14% 12%

Less than 1 year

1-5 years
6-10 years
More than 10 years

38%
36%

(Figure-14)

INTERPRETATION: The study reveals the only 12 % of its clients have joined in the past 1
year. Hence the marketing activities of the company have to be more aggressive to widen its
clients in the wake of new brokers and sub brokers coming up in the city. Aggressive publicity
has to be done in order to stand against the new coming brokers.

14.Basis for selection of scrips:

TABLE:

Particulars No. Of responses Percentage

Earning Per Share 8 8%
Company Image 20 20%
 Profitability 22 22%
All Three 14 14%
Profitability and 10 10%
Company Image
Earnings Per Share 14 14%
And Image
Earnings Per Share and 6 6%
Profitability
P/E Ratio 6 6%
Total 100 100%

No. Of responses
Earning Per Share Company Image
2 Profitability All Three
1
6 Profitability and Earnings Per
4 6% 8% 0
% Company Image Share And Image
% %
Earnings Per P/E Ratio
1 Share and
0 1 2 Profitability
% 4 2
% %

(Figure-15)

INTERPRETATION:The study reveals that investors use varied parameters to make their
investment decisions, profitability and image of the company are the two prominent parameters
used by most investors. The investors also use a combination of more than one parameter.
Mostly one can rely on company image along with profitability but in order to be updated with
the latest information once has to follow the media, which gives the exact information time to
time.

15.Sources of Information:
TABLE:
Particulars No. Of Responses Percentage
News Papers 32 32%
Annual Reports 28 28%
Share khan review 10 10%
All three 14 14%
News Paper &Annual Reports 10 10%
News Channels 6 6%

Total 100 100%

No. Of Responses

6% News Papers
10% Annual Reports
32%
Share khan review
14% All three
News Paper &
Annual Reports
News Channels
10% 28%

(Figure-16)

INTERPRETATION:In combination with other sources of information by Share khan, the

study reveals that newspapers and annual reports are the most popular sources of information.
Both of which used by 76% of the investors whither independently reviews and technical
analysis from various web sites are also popular sources of information used by 26% of traders.
Thought he newspapers give the information and the status, the Share khan reviews and the
websites analysis along with the follow of media gives the running information.
 CHAPTER-VI
FINDINGS
SUGGETIONS
CONCLUSIONS
 FINDINGS

The investment decision of investors is influenced by their own decision and through friends &
relatives.

 Majority of investors invest only upto 10% of their annual income in share market.

 Angel One Ltd has a great competition with other broking agencies like upstox, 5paisa, Indian
bulls, etc. because they are also using new technologies to retain customers.

 The number of players is increasing at a steady rate and today there are over a dozen of
brokerage houses who have opted to offer net trading to their customer and prominent among
them are SMC Global Securities, India bulls, Kotakstreet, Karvy.

 Investor’s perception changes with the fluctuations in share market.

 From the Research youth people are interested in investing in stock market.

 Investors have interest to invest in steady and fastgrowing shares.

 SUGGESTIONS

• Allocation of news in such a way that SMC Global Securities Ltd maintain a consistency level

throughout the month.

• Can improve in that areas where service provide by other major competitors is very strong in this

area.

• To increase the awareness level of the company among the public.

• 24*7 customer support can increase its value.

• The company must spread the awareness to its clients for the service like F&O Equities to

increase the satisfaction level of clients as we have find that there is positive aspect between the

satisfaction level of services provided by angel one success in online trading.

CONCLUSION

In today’s scenario when all services are going to be online or in electronic form Angel One Ltd.

Is creating awareness of online trading so that the client can trade from anywhere from the

World. Angel One Ltd. takes care of client portfolio and whenever the value of his/her portfolio

will decrease by 30% then that client is always informed by his/her relationship Manager. SMC

Global Securities is a company that has helped in handling a vast amount of transactions and this

can be an efficient trading, delivering, settlement system with adequate protection to investors.

The introduction of on-line trading would influence the investors resulting in an increase in the

business of the exchange. 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 broker’s has a greater scope than compared to the earlier times because of invention of

online trading.
 ]

REFERENCES

NEWSPAPER :

 The Times of India

 The Economic Times

Article III.