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2 | P a g e CHAPTER: 1 COMPANY PROFILE Kotak Securities is headquartered in Mumbai, India. In 2014, Kotak Securities was ranked as number 1 in India's Institutional Investor rankings by weighted average. Kotak Securities is a well-known stock broker with professional traders for its comprehensive online trading portal offerings. The company provides equity based products (research, equities, derivatives, depository, margin funding, etc.). The Group has a wide distribution network through branches and franchisees across India, and international offices in London, New York, Dubai, Abu Dhabi, Mauritius and Singapore. It has 1128 branches including franchisees and satellite offices spread across 352 cities in the country. Kotak Securities is a corporate member of both the Bombay Stock Exchange and the National Stock Exchange of India. It is also a depository participant with National Securities Depository Limited (NSDL) and Central Depository Services Limited (CDSL). The company also has a research division to study the macroeconomic indicators, sectors, company-specific equity research, which regularly publishes stock market analysis. The Company's online trading and investment site - www.Kotak Securities.com. The site gives access to superior content and transaction facility to retail customers across the country. Known for its jargon-free, investor friendly language and high quality research, the content-rich and research oriented portal has stood out among its contemporaries because of its steadfast dedication to offering customers best-of-breed technology and superior market information. Kotak Securities's management team is one of the strongest in the sector and has positioned Kotak Securities to take advantage of the growing consumer demand for financial services products in India through investments in research and an outstanding technology platform. Effective April 1, 2015, ING Vysya Bank Ltd has merged with Kotak Mahindra Bank Ltd creating a Rs 2 trillion institution (consolidated). The merged entity Kotak Mahindra Bank Ltd. will have a significant national footprint, affording it the capacity and means to serve even better. 3 | P a g e 1.1 Vision: The global Indian financial services brand: Customers will enjoy the benefits of dealing with a global Indian brand that best understands their needs and delivers customized pragmatic solutions across multiple platforms. They will be a world class Indian financial services group. Technology and best practices will be benchmarked along international lines while their understanding of customers will be uniquely Indian. They will be more than a repository of customers' savings. They, the Group, will be a single window to every financial service in a customers universe. The most preferred employer in financial services: A culture of empowerment and a spirit of enterprise attracts bright minds with an entrepreneurial streak to join us and stay with them. Working with a home-grown, professionally-managed company, which has partnerships with international leaders, gives people a perspective that is universal as well as unique. The most trusted financial services company: They will create an ethos of trust across all our constituents. Adhering to high standards of compliance and corporate governance will be an integral part of building trust. Value creation: Value creation rather than size alone will be their business driver. 4 | P a g e Significance of the groups logo: The symbol of the infinite Ka reflects our global Indian personality. The Ka is uniquely Indian while its curve forms the infinity sign, which is universal.One of the basic tenets of economists is that mans needs are unlimited. The Infinite Ka symbolizes that we have infinite number of ways to meet those needs. 1.2 SERVICES PROVIDED BY KOTAK SECURITIES: Stock Broking services: Trade in the STOCK MARKET, invest in IPOs, Mutual Funds or Currency Derivatives using whichever mode that suits best. Online, offline or even on their STOCK TRADING app, they offer STOCK TRADING at fingertips. Portfolio Management services:Not sure of what STOCKS TO BUY or sell? Unable to keep all investments in one place? Dont know how to make money work? Portfolio Management Service with expert advice is just the answer for everyones woes. Dual benefit: STOCK BROKERS + Depository Participants: Kotak Securities is not just a stock broking firm. They are also participants with depositories like the NSDL and the CSDL. That means we can now execute transactions using their stock broking services and settle our trades using their depository services. Research Expertise: They publish various sector-specific research, company-specific research, macroeconomic studies, fundamental and technical analysis of stocks that we can avail before investing our hard-earned money. Updated Market Data: Apart from research that they offer, we benefit from the street smart tips, up-to-the-minute market information and inside news that their extensive sales teams deliver on a daily basis. International Reach: Kotak Securities has a well-entrenched presence in the Asia Pacific, European, Middle Eastern and American markets. 5 | P a g e 1.3 PRODUCT PROFILE: KOTAK SECURITIES is one of the leading Depository Participants (DP) in the country with over 8 Lac D MAT accounts. Kotak securities DE mat services offers you a secure and convenient way to keep track of your securities and investments, over a period of time, without the hassle of handling physical documents that get mutilated or lost in transit. A Kotak securities is Depository participants both with -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL). 1.3.1TWO IN ONE ACCOUNT:- Kotak Securities is providing 2-in- 1 account to its customer .The 2-in-1 trading account from Kotak Securities gives us the dual benefit of a share trading account and a D-MAT account rolled into one account. We can link our third-party savings account to the 2-in-1 trading account and kick start our journey on the stock market. Here are the banks whose savings accounts can be linked to the 2-in-1 stock trading account: Axis Bank, CitiBank, HDFC Bank, Kotak Mahindra Bank, ICICI Bank, IndusInd Bank, State Bank of India (SBI) D-MAT ACCOUNT:- It is called as dematerialized account. It is used for keeping share in our account .After placing order to BSE or NSE for share , the share transfer to our D-mat account and amount price of that share wepurchased deducted from our saving account.D-mat account is used for holding sharefor particular period . ONLINE TRADING ACCOUNT:- Online trading account is used for purchasing the share or to sale the share of particular company. It is provided for Rs.700 to the customer. Client has to give the cheque on name of KOTAK SECURITIES LTD. ONLINE TRADING CONCEPT 2 IN 1 ACCOUNT ONLINE TRADING ACCOUNT (SEBI) D-MAT ACCOUNT (NSDL) (SEBI) 6 | P a g e PROCESS: Create 2-in-1 trading account with Kotak Securities. Link savings account to 2-in-1 trading account. Transfer funds securely from savings account to the 2-in-1 trading account, via their Payment Gateway. Remember, the amount of funds that can be transferred depend on the limits set by the bank where we have our savings account. Trade in equities, derivatives, currencies, futures, options and more with 2-in-1 account. The shares will be paid into your 2-in-1 account in T+2, where T stands for the day the trade was carried out. FEATURES & BENEFITS: As opposed to the earlier form of dealing in physical certificates with delays in transaction, holding and trading in D MAT form has the following benefits : Low Brokerage Rates. Secure trading environment, using the highest levels of data encryption. Trade in larger volumes and more scrips using the Super Multiple feature, which offers us exposure up to 14 times our original margin during a single trading day. Trade 24 x 7 x 365 days with their After Market Orders option. Place trade whenever its convenient, and they send our trades to the markets as soon as they open for trading the next working day. Trade online using KEAT Pro X- a high speed trading software that allows you to trade, monitor our portfolio, create watch lists and more. Trade in equities, derivatives and currencies on smartphone with their free Stock Trading App Access to Trade Smart a unique tool that helps us spot bullish or bearish market trends, set entry and exit positions for our stocks, set stock alerts and more. Access to best in class stock market research and analysis through Easy Equity reports and Easy Mutual Fund reports. SMS alerts with important trading tips, stock alerts and latest market news. 24 x 7 customer support to handle any crises, day or night. 1.3.2 Trinity account: The Kotak Securities Trinity account is a seamless investment platform that integrates a savings account, a D MAT account and a trading account into one great service.Forget the hassle of juggling three different banking partners for each account. With the Trinity account we get all three benefits with a single application and a single entity Kotak Securities. Process: Open a Trinity account by a. Filling out online application b. Calling toll free numbers (STD code) 3030 5757 / 1800 222 299 c. Visiting a Kotak Securities branch office As part of the trinity account, a savings bank account will be opened with Kotak Mahindra Bank. With the Direct Access feature of the Trinity account, we will not need to manually transfer funds from our savings account to our trading account. Funds can be moved between accounts directly through the Kotak Securities website, and any unutilized 7 | P a g e money in our trading account comes back to our savings account at the end of the days trades. Unlike other linked accounts, the Trinity account has no upper limit for transfer of funds from our savings account to our trading account in a single day. FEATURES & BENEFITS: Seamless, zero hassle trading:Trade in equity, derivatives, IPO,ESOPS, bonds and ETFs through our 3-in-1 account. Multiple trading platforms to choose from: With the Trinity account we are spoilt for choice. We can choose between : Trading online on www.kotaksecurities.comUsing the high-speed trading tool Keat Pro X Trading on the phone by calling their toll free number 3030 5757 Using their smartphone trading app Kotak Stock Trader Margin against Securities: Avail margin against securities for intraday trades in cash segment at no additional cost. Even better, gets exposure against the shares lying idle in D MAT account. Trade after market hours: Kotak Securities unique After Market Orders facility allows us to place trades even after the stock market is closed for the day. The trades we place will get sent to the exchange as soon as the markets open for trading next. Extensive and FREE research options to guide our investing decisions. Educate about equities, futures, options and more at the Kotak Securities Knowledge Bank. Get SMS Alerts about latest stock market news, tips, and movements. Best in class research and analysis through Easy equity reports and Easy Mutual Fund reports. 1.4 INTRA DAY TRADING: In intraday trading the share is purchase and sale on the same day. The share market starts at 9.50 a.m. and close at 3.30 p.m. if the client purchases the share and prices of share rise then he can sell his share and he will get the profit.If the prices of share fall down then he will be in loss. If client purchases the share and he does not sell it at market closing time then the share automatically sell i.e. called square off. If price of share is high then client will get profit and price of share fall down the customer will be in loss at time of square off. 8 | P a g e 1.5 SWOT analysis: 1.6 Management: Mr. Uday Kotak (Executive Vice Chairman and Managing Director) Kotak Mahindra Bank Limited As a young 26-year old entrepreneur in 1985, Uday Kotak started Kotak Capital Management Finance Ltd. The vision was to eventually become a banking company. Private Indian banks were not even a speck on the horizon at that time. On 22nd March 2003, Kotak Mahindra Finance Ltd. became the first non-banking financial company (NBFC) in Indias corporate history to be converted into a bank. Mr. C. Jayaram (Joint Managing Director) Kotak Mahindra Bank Limited C. Jayaram, Joint Managing Director, Kotak Mahindra Bank Ltd., has been with the Kotak Mahindra group since 1990. He was appointed as Executive Director of Kotak Mahindra Finance Limited (now Kotak Mahindra Bank Limited) on 1st October 1999. Jayaram heads the wealth management business and international operations for Kotak Mahindra group. He also oversees the alternative investments business which includes private equity funds and real estate funds, as well as the institutional equities business. Mr. Dipak Gupta (Joint Managing Director) Kotak Mahindra Bank Limited Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank has been with Kotak Mahindra group since 1992. He was appointed as Executive Director of Kotak Mahindra Finance Limited on 1st October 1999. Dipak overlooks Group Human Resources, Administration, Infrastructure, Operations and IT. He also heads the Asset Reconstruction business of the Bank. Strengths: Efficient management. Innovators in the Industry Robust Technology Access to different financial products/services within the Kotak group. Good employee relations. Research Team Weakness: Long Procedures for opening account No access to rural market Insufficient advertisementOpportunities: Utilize technology to provide solutions to customers Increase distribution strength Good customer relation strategy so that it create good opportunity to create goodwill . Threats: Volatile environment Stiff Competition New entry into market Government Policy 9 | P a g e 10 | P a g e 2.1 Introduction about Online Trading: Technological advances have influenced and facilitated the operations of business transactions. The recent technological advancement is the Internet technology that has transformed the entire business marketplace. With the help of the Internet, we can communicate interactively and instantly over vast distances, receive a wide array of information, and conduct business from remote without human assistance. Personal investing is one of the areas facilitated by Internet. The do-it yourself investing originated in 1970s as a result of the deregulation of the brokerage industry. However, due to the IT revolution, the On-line approach has helped individual investors to have better control on their investment. With the proliferation of the Internet, more banks and stock brokerage firms are offering on-line financial services. Investors can gain access to various kinds of information on financial planning, e.g., real-time stock prices, portfolio management, etc. Increasingly, traders are attracted toward the on-line investing for advice and information. The trade through Internet is executed and confirmed instantly. The business of stock exchanges was originally done in mere two-and-half hours in the trading rings through open outcry system. An investor, wishing to trade, had to call his brokers office to place his order. In turn it is the duty of the broker to pass on the order to his man assigned on the trading ring. The brokers man would then go to the stock counter to go through the transaction, all the while jostling with a group of other sub-brokers who are also trying to trade on the counter. Innumerable difficulties were there in the system since the brokers man would have to revert to his office to consult with the client if the price quoted did not match the order. All these took place in an era where there was no proper communication system. In the absence of internet and business channels on television, the only way to obtain the live stock quotes was the stock brokers. The final closing price of a stock could be checked through the daily bulletin that was published every evening by the stock exchange. Internet trading is a method of trading in securities whereby it is possible for the investors to buy and sell stocks through the internet. It is also called on-line trading; the trading takes place under the Order Routing System [ORS] through registered stock brokers on behalf of clients for execution of trades on stock exchange. Under this method of trading the information about securities, brokers, dealers, prices etc, are communicated through the official websites of concerned stock exchanges so as to facilitate buying and selling of securities. Current developments are essentially converting off line practices to an online equivalent. The private investor who may have received a stock brokers report through the post and looked up share prices in the morning paper can access the information online with the current market price being available. The investor who might have made calculations about trends and valuations by hand can down load the information from the web into a spreadsheet or a personal finance program that runs on their PC. That same private investor who usually to rings up a stock broker to buy or sell, a process that might take some time when the market is busy, can issue that same instruction online for immediate execution. 11 | P a g e On line share trading in India: Many Indian investors are logging into the internet to put through their stock market trades. The number of investors registered for online stock trading has raised three fold to 30 lakh, over the past two years. Online trades now account for about 40 percent of the daily turnover on the NSE, up from about 4 percent in 2004. According to brokerage industry estimates, ICICI Bank claims to have a 60.65 percent share of the market, with eight lakh users on ICICI direct, its onlineInternational Journal of Marketing, Financial Services & Management Research ISSN 2277- 3622 Vol.2, No. 4, April (2013) Online available at www.indianresearchjournals.com trading platform. The democracy of online trading is the key factors why the retail investors prefer to transact over the internet their broker. Volumes are growing faster in the non metros, where transparency is low in offline trading. Such high channel migration has changed the broking landscape from what it was in the late 1990s. The days are gone where the customers were made to pay higher charges by small brokers, since they werent aware of the market rates. Traditional brokers are now scrambling to scale up their online operations. This study is an attempt to evaluate the benefits and problems towards online share trading practices in Ludhiana City. 12 | P a g e 2.2 FINANCIAL MARKETS: A financial market can be defined as the market in which financial assets are created or transferred. Financial assets represents represent a claim to the payments of a sum of money sometime in the future and/or periodic payment in the form of interest or dividend. Financial Market performs an important function of mobilization of savings and channeling them into the most productive uses. The participants in the financial markets are financial institutions, agents, brokers, dealers, borrowers, lenders, savers and others who are inter-linked by the laws, contracts and communication networks. Financial markets consist of Primary and Secondary Markets. The Primary markets deal in new financial claims and securities and hence are known as new issue markets. The secondary market deals in securities already issued, existing or outstanding. Financial markets are also classified as Money and Capital Markets. Money markets deals with transactions in short-term instruments (with period of maturity one year or less, e.g. treasury bills), while capital market deals with transactions in long-term instruments (with period of maturity above one year, e.g. corporate debentures and government bonds). On the basis of the type of the financial claim, financial markets are classified as Debt and Equity markets. By the timing of delivery, financial markets are classified as Cash or Spot markets and Forward or Future markets. The classification of financial markets can be summarized as follows: oMoney Market oDebt Market oForex Market oCapital Market. 13 | P a g e MONEY MARKETS: Money markets can be defined as a market for short term money and financial assets that are near substitutes for money (any financial assets that can be quickly converted into money with minimum transaction cost). One more important function of this market is to channel savings into short term productive investments like working capital. Money market aids banking, operates as a medium of integration between sub markets, promotes maintaining of minimum reserve in the form of cash and liquidity and controls the interest rates. Money market is a collection of market for the instruments like Call money, Treasury bills, Commercial papers, Certificate of deposits, Money Market Mutual Funds, etc. A certain degree of flexibility in the regulatory framework exists and there are constant endeavors for introducing a new instruments or innovating dealing techniques. It is a wholesale market and the volume of funds or financial assets traded are very large i.e. in crores of rupees. ORGANIZED MONEY MARKET: Indian financial system consists of money market and capital market. The money market has two components - the organized and the unorganized. The organized market is dominated by commercial banks. The other major participants are the Reserve Bank of India, Life Insurance Corporation, General Insurance Corporation, Unit Trust of India, Securities Trading Corporation of India Ltd., Discount and Finance House of India, other primary dealers, commercial banks and mutual funds. The core of the money market is the inter-bank call money market whereby short-term money borrowing/lending is effected to manage temporary liquidity mismatches. The Reserve Bank of India occupies a strategic position of managing market liquidity through open market operations of government securities, access to its accommodation, cost (interest rates), availability of credit and other monetary management tools. Normally, monetary assets of short-term nature, generally less than one year, are dealt in this market. UN-ORGANIZED MONEY MARKET:Despite rapid expansion of the organized money market through a large network of banking institutions that have extended their reach even to the rural areas, there is still an activeunorganized market. It consists of indigenous bankers and moneylenders. In the unorganized market, there is no clear demarcation between short-term and long-term finance and even between the purposes of finance. The unorganized sector continues to provide finance for trade as well as personal consumption.14 | P a g e FOREIGN EXCHANGE MARKET: Every sovereign country in the world has a currency, which is a legal tender in its territory, and which does not act as money outside its boundaries. Foreign exchange or Forex market is the one where a countrys currency is traded for another. The rate at which one currency is converted to another is known as the rate of exchange. Forex market is the largest financial market in the world having a daily turnover of couple of trillion dollars. The key participants in the Forex market are importers (who need foreign currency to pay off their imports), exporters (who want to convert their foreign currency receipts into domestic), traders (who make a market in the foreign currency), foreign exchange brokers (who bring together buyers and sellers), speculators (who tries to profit from exchange rate movements) and portfolio managers who buy and sell foreign currency. Speculative transactions account for more than 95% of the turnover on the Forex markets. In India, the key participants in the Forex markets are RBI, banks and business undertakings. Business undertakings can participate in the Forex market only to the extent that they need cover for the exchange exposure arising from a merchant transaction or a foreign currency borrowing and cannot resort to speculative transaction. One reason justified for the existence of the Forex market is that each nation has decided to keep their sovereign right to have control on their own currency. If every country had the same currency, then there will be no need for a foreign exchange market. CAPITAL MARKET The function of the financial market is to facilitate the transfer of funds from surplus sectors (lenders) to deficit sectors (borrowers). Normally, households have investible funds or savings, which they lend to borrowers in the corporate and public sectors whose requirement of funds far exceeds their savings. A financial market consists of investors or buyers of securities, borrowers or sellers of securities, intermediaries and regulatory bodies. Financial market does not refer to a physical location. Formal trading rules, relationships andcommunication networks for originating and trading financial securities link the participants in the market. Capital markets provide the resources needed by medium and large-scale industries for investment purposes unlike money markets that provide the resources for working capital needs. While money markets deal in short-term claims (with a period of maturity 1 year or less) capital market deals in long-term claims (with a period of maturity more than 1 year). Stock market and Government bond markets are example of capital markets. 15 | P a g e Capital market consists of primary and secondary markets. The primary markets create long-term instruments through which corporate entities borrow and the secondary market provides liquidity and marketability to these instruments. Companies can raise capital in the primary market through the issue of shares and debentures for which prior approval of The SEBI is required. The secondary market that operates through the medium of stock exchanges is that segment of the capital market where securities already issued are traded. The primary market in which public issue of securities is made through a prospectus is a retail market and there is no physical location. Offer for subscription to securities is made to investing community. The secondary market or stock exchange is a market for trading and settlement of securities that have already been issued. The investors holding securities sell securities through registered brokers/sub-brokers of the stock exchange. Investors who are desirous of buying securities purchase securities through registered broker/sub-broker of the stock exchange. It may have a physical location like a stock exchange or a trading floor. Since 1995, trading in securities is screen-based and Internet-based trading has also made an appearance in India. The secondary market consists of 22 stock exchanges. The secondary market provides a trading place for the securities already issued, to be bought and sold. It also provides liquidity to the initial buyers in the primary market to re-offer the securities to any interested buyer at any price, if mutually accepted.

CAPITAL MARKET PARTICIPANTS: There are several major players in the primary market. These include the merchant bankers, mutual funds, financial institutions, foreign institutional investors (FIIs) and individual investors. In the secondary market, there are the stock exchanges, stock brokers (who are members of the stock exchanges), the mutual funds, financial institutions, foreign institutional investors (FIIs), and individual investors. Registrars and Transfer Agents, Custodians and Depositories are capital marketintermediaries that provide important infrastructure services for both primary and secondary markets. 2.3 COMPONENTS OF CAPITAL MARKET: Following are the three main components of capital market: 1.New Issue Market 2.Financial Institutions 3.Stock Market 16 | P a g e 1.NEW ISSUE MARKET The new issue market represents the primary market where new securities, i.e. shares or bonds that have never been previously issued, are offered. Both the new companies and the existing ones can raise capital on the new issue market. The prime function of new issue market is to facilitate the transfer of funds from willing investors to the entrepreneurs setting up new corporate enterprise or going for expansion, diversification, growth or modernization. Besides, the helping corporate enterprise in securing their funds, the new issue market channelizes saving of individuals and others into investors. Issuing companies and the investors respectively represents the two facets of this market, i.e. supply and demand. Also there is participation of intermediaries, which help, in selling, transferring, underwriting etc. These agencies include financial institution, underwriters, brokers, merchant bankers, etc. It must be noted that although the functions and organization of new issue market are quite different from that of the secondary (stock) market, the sentiment in the stock market influence the activity of new issue market. Successful issue of new securities is a highly specialized activity and requires both experience and skill. There are number of methods of marketing new issue of securities. And the choice of method selection depends upon number, character and sentiment of prospective buyers. 2. FINANCIAL INSTITUTIONS Specialized Financial Institutions are the most active constituent of the Indian Capital Market. Such organizations provide medium and long-term loans on easy installments to big business house. Such institutions help in promoting new companies during economic depressions. The need for establishing financial institutions was felt in many countries immediately after the Second World War to reestablish war-shattered economies. Need for such institution was more in underdeveloped countries. Following are the main special financial institutions that are most active constituents of the Indian Capital Market. 1.The industrial Finance Corporation of India. (I.F.C.I) 2.The Industrial Credit and Investment Corporation of India. (I.C.I.C.I) 3.The Refinance Corporation of India. (R.F.C.) 4.State Financial Development Corporation. (S.F.Cs.) 5.National Industrial Development Corporations. (N.I.D.C.) 17 | P a g e 6.State Industrial Development Corporations. (S.I.D.Cs.) 7.National Small Industries Corporations. (N.S.I.C.) 8.Industrial Development Bank of India. (I.D.B.I.) 9.Unit Trust of India. (U.T.I.) 10. Life Insurance Corporation of India. (L.I.C.) 11. Nationalized Commercial Banks. (N.C.B.) 12. Merchant Banking Institutions. (M.B.Is.) 3. STOCK MARKET Capital Market also includes Stock market. It is a place where securities which have been issued the past are traded. It is a secondary market. In stock market the participants are Stock Exchanges, Brokers and the investors. The investors want liquidity of their investments. The securities, which they hold, should be easily sold when they need cash. Similarly there are others who want to invest in new securities. So there should be a place where securities should be purchased and sold. Stock exchange provides such a place where securities of different companies can be purchased and sold via stock market. One can trade in stock market two ways: 1.On Market 2.Off Market In On market trading is done via stock exchanges, where the buyer and seller dont know each other. But one can also trade off market without the interference of stock exchange may be through stock broker or not. For example: Raja and Gandhi are neighbors, Raja wants to Sell the shares of Zodiac JRD, which he holds and Gandhi is ready to buy them at that price they can enter into contract offmarket. DEBT MARKET: Traditionally debt instruments are known for generating a predetermined income for a given period of time, other than in cases of default. Hence they are also known as fixed incomeinstruments. The debt markets in advanced are significantly larger and deeper than equity markets. But in India, the trend is just the opposite. The development of debt market in Indiahas not been as remarkable as in the equity market. However the debt markets in India have undergone a considerable change in the last few years. Characterized by regulated interest rates, limited players and lack of trading earlier, the markets have become more integrated and less regulated. The debt market in India is divided into two categories: oGovernment securities market consisting of Central Government and State Government securities. oBond market consisting of FI bond, PSU bonds and corporate bonds/debentures. 18 | P a g e 2.4 PRIMARY AND SECONDARY MARKET: There are two ways for investors to get shares from the primary and secondary markets. In primary markets, securities are bought by way of public issue directly from the company. In Secondary market share are traded between two investors. PRIMARY MARKET Market for new issues of securities, as distinguished from the Secondary Market, where previously issued securities are bought and sold. A market is primary if the proceeds of sales go to the issuer of the securities sold. This is part of the financial market where enterprises issue their new shares and bonds. It is characterized by being the only moment when the enterprise receives money in exchange for selling its financial assets. Stocks available for the first time are offered through new issue market. The issue may be a new company or an existing company. These issues may be of new type or the security used in the past. In the new issuing houses, investment bankers act as the channel of distribution for the new issues. They take responsibility of selling the stocks to the public. THE FUNCTION OF PRIMARY MARKET: The main service functions of the primary market are origination, under writing and distribution. Origination deals with the origin of the view issue. The proposal is analyzed in terms of the nature of security, the size of issue, and timing of the issue and floatation method of issue. Underwriting contract makes the shares predictable and removes the elements of uncertainty in the subscription. Distribution refers to the sale of the securities to the investors. This is carried out with the help of the lead manager and broker to the issue. IPO INITIAL PUBLIC OFFERING Public issues can be classified into Initial Public offerings and further public offerings. In a public offering, the issuer makes an offer for new investors to enter its shareholding family. The issuer company makes detailed disclosures as per the DIP guidelines in its offer document and offers it for subscription. Initial Public Offering (IPO) is when an unlisted company makes either a fresh issue of securities or an offer for sale of its existing securities or both for the first time to the public. This paves way for listing and trading of the issuers securities. IPO is new shares Offered to the public in the Primary Market .The first time the company is traded on the stock exchange. A prospectus is issued to read about its risk before investing. IPO is a company's first sale of stock to the public. Securities offered in an IPO are19 | P a g e often, but not always, those of young, small companies seeking outside equity capital and a public market for their stock. Investors purchasing stock in IPOs generally must be prepared to accept very large risks for the possibility of large gains. Sometimes, just before the IPO is launched, Existing share Holders get very liberal bonus issues as a reward for their faith in risking money when the project was new. SECONDARY MARKET The market where securities are traded after they are initially offered in the primary market. Most trading is done in the secondary market. To explain further, it is trading in previously issued financial instruments. An organized market for used securities. Examples are the New York Stock Exchange (NYSE), Bombay Stock Exchange (BSE),National Stock Exchange NSE, bond markets, over-the-counter markets, residential mortgage loans, governmental guaranteed loans etc.The secondary market is the financial market for trading of securities that have already been issued in an initial private or public offering. Alternatively, secondary market can refer to the market for any kind of used goods. The market that exists in a new security just after the new issue is often referred to as the aftermarket. Once a newly issued stock is listed on a stock exchange, investors and speculators can easily trade on the exchange, as market makers provide bids and offers in the new stock. 2.5 PRODUCTS DEAL IN SECONDARY MARKET EQUITY:The ownership interest in a company of holders of its common and preferred stock. The various kinds of equity shares are as follows EQUITY SHARES: An equity share, commonly referred to as ordinary share also represents the form of fractional ownership in which a shareholder, as a fractional owner, undertakes the maximum entrepreneurial risk associated with a business venture. The holders of such shares are members of the company and have voting rights. A company may issue such shares with differential rights as to voting, payment of dividend, etc. RIGHTS ISSUE/ RIGHTS SHARES: The issue of new securities to existing shareholders at a ratio to those already held. BONUS SHARES: Shares issued by the companies to their shareholders free of cost by capitalization of accumulated reserves from the profits earned in the earlier years. 20 | P a g e PREFERRED STOCK/ PREFERENCE SHARES: Owners of these kind of shares are entitled to a fixed dividend or dividend calculated at a fixed rate to be paid regularly before dividend can be paid in respect of equity share. They also enjoy priority over the equity shareholders in payment of surplus. But in the event of liquidation, their claims rank below the claims of the companys creditors, bondholders / debenture holders. CUMULATIVE PREFERENCE Shares.A type of preference shares on which dividend accumulates if remains unpaid.All arrears of preference dividend have to be paid out before paying dividend on equity shares. CUMULATIVE CONVERTIBLE PREFERENCE SHARES: A type of preference shares where the dividend payable on the same accumulates, if not paid.After a specified date, these shares will be converted into equity capital of the company. PARTICIPATING PREFERENCE SHARE: The right of certain preference shareholders to participate in profits after a specified fixed dividend contracted for is paid.Participation right is linked with the quantum of dividend paid on the equity shares over and above a particular specified level. SECURITY RECEIPTS: Security receipt means a receipt or other security, issued by a securitisation company or reconstruction company to any qualified institutional buyer pursuant to a scheme, evidencing the purchase or acquisition by the holder thereof, of an undivided right, title or interest in the financial asset involved in securitisation. GOVERNMENT SECURITIES : These are sovereign (credit risk-free) coupon bearing instruments which are issued by the Reserve Bank of India on behalf of Government of India, in lieu of the Central Government's market borrowing programme. These securities have a fixed coupon that is paid on specific dates on half-yearly basis. These securities are available in wide range of maturity dates, from short dated (less than one year) to long dated (upto twenty years). DEBENTURES: Bonds issued by a company bearing a fixed rate of interest usually payable half yearly on specific dates and principal amount repayable on particular date on redemption of the debentures. Debentures are normally secured/ charged against the asset of the company in favour of debenture holder. 21 | P a g e BOND: A negotiable certificate evidencing indebtedness. It is normally unsecured. A debt security is generally issued by a company, municipality or government agency. A bond investor lends money to the issuer and in exchange, the issuer promises to repay the loan amount on a specified maturity date. The issuer usually pays the bond holder periodic interest payments over the life of the loan. The various types of Bonds are as follows- ZERO COUPON BOND:Bond issued at a discount and repaid at a face value. No periodic interest is paid. The difference between the issue price and redemption price represents the return to the holder. The buyer of these bonds receives only one payment, at the maturity of the bond CONVERTIBLE BOND: A bond giving the investor the option to convert the bond into equity at a fixed conversion price. COMMERCIAL PAPER: A short term promise to repay a fixed amount that is placed on the market either directly or through a specialized intermediary.It is usually issued by companies with a high credit standing in the form of a promissory note redeemable at par to the holder on maturity and therefore, doesnt require any guarantee. Commercial paper is a money market instrument issued normally for a tenure of 90 days. TREASURY BILLS: Short-term (up to 91 days) bearer discount security issued by the Government as a means of financing its cash requirements. 2.6 ACCOUNT OPENING To avail the services of depository one requires opening an account with any of the depository participants. The e-invest account is an account which allows a customer electronic trading on the exchange. Through this unique three in one trading every customer opening an e-invest account gets a bank saving account. You can open a Depository Participant (DP) Account, either through Kotak Securities branches or through Kotak Securities Franchisee center. There is no fee for opening DP accounts with Kotak Securities. However, deposit (refundable) will be levied towards services which can be adjusted towards billing charges. 22 | P a g e All investors have to submit their proof of identity and proof of address along with the prescribed account opening form. 1.I. Proof of Identity: Your signature and photograph must be authenticated by an existing D MAT account holder with the same DP or by a bank manager. Alternatively, you can submit a copy of Passport, Voters Id Card, Driving Licence or PAN card with photograph. 2.II. Proof of Address: You can submit a copy of Passport, Voters Id Card, Driving Licence, PAN card with photograph, ration card or bank passbook as proof of address.You must remember to take original documents to the DP for verification. 3.III Passport-size photograph. CLIENT REGISTRATION PROCESS: FORM SUBMISSION SCRUTINY SEGREGATE OPEN A/C OR REJECT BANK VALID FORM INTIMATES CPU OPEN A/C OR REJECT DP 23 | P a g e 24 | P a g e CHAPTER: 3 ORGANISATION STRUCTURE 3.1 OVERALL ORGANISATIONAL STRUCTURE 3.2 FUNCTIONS OF DEPARTMENTS HEAD OFFICE REGIONAL HEAD QUARTERS REGIONAL HEAD QUARTERS REGIONAL HEAD QUARTERS REGIONAL HEAD QUATERS REGIONAL BRANCHQUATERS OPERATIONS DIVISION SUPPORT FUNCTION BRANCHES ISO CELL BROKING FPO RIS DP ACCOUNTS SYSTEM HRD ADMN.PURCHASEOPERATIONS DIVISION SUPPORT FUCTION 25 | P a g e 3.3 MARKETING 3.4 ACCOUNTS HEAD OF THE BRANCH MARKETING MANAGER SALES EXE.ASSISTANTTRAINEE HEAD OF THE BRANCH ACCOUNTANT MANAGER DOCUMENTRYASSISTANTACCOUNT MANAGER 26 | P a g e 3.5 HR & ADMINISTRATION HEAD OF THE BRANCH HRM HR DEVOLPMENT PAY ROLERECURTMENT SALES EXE.TRAINEES 27 | P a g e 28 | P a g e CHAPTER: 4 STOCK EXCHANGES 4.1 FUNCTIONS OF STOCK EXCHANGES The importance of stock exchanges will be clear from the following functions performed by stock exchanges: 1. ENSURES LIQUIDITY OF CAPITAL: The stock exchange provides a place where shares and stock are converted into cash. It provides a ready market for buyers and sellers of securities. If exchanges were not there many persons would have fear of blocking their savings in securities. 2. CONTINUOUS MARKET FOR SECURITIES: The securities once listed continue to be traded irrespective of the fact that owners go on changing. Exchanges provide regular market for trading in securities. 3. EVALUATION OF SECURITIES: The investors can evaluate the worth of their shares from price quoted at different stock exchanges for those securities. The securities are quoted under free atmosphere of demand and supply and prices are set on the basis of free market. 4. MOBILIZING SURPLUS SAVINGS: Through stock exchanges the investors are given a safe platform to invest their savings. Hence stock exchanges play an important role in mopping up surplus funds of investors. 5. HELPFUL IN RAISING NEW CAPITAL: The new concerns raise capital for first time and the existing units increase their capital for further expansion and diversification purposes. The new concerns get themselves registered so that the shares they issue can be further traded at exchanges. 6. SAFETY IN DEALINGS: The dealings in stock exchanges are governed by well defined rules and regulations of Securities contract act; 1956. There is no scope of manipulating the transactions. Every transaction is done according to the procedure laid done and there is no fear in minds of trading parties. 7. LISTING OF SECURITIES: Only listed securities can be traded in stock exchanges. Every company desires of listing its securities will apply to the exchange authorities. But listing is allowed after critical examination of capital structure, management and prospectus of company. Hence provide security to a limit but it does not guarantee the financial stability, so the investors should make analysis before investing. 8. CLEARING HOUSE FOR BUSINESS INFORMATION: The companies listing securities with exchange have to provide financial statements, annual reports and other29 | P a g e reports to ensure maximum publicity of corporations operations and working. The economic and other information provided at stock exchanges help companies to make their policies. 9. PLATFORM FOR PUBLIC DEPTS.: The stock exchanges are also organized market for government securities. However there is no any provision for a separate counter for government securities but these are traded through brokers dealing in these securities. 10. FAIR PRICE DETERMINATION: The prices in the stock market are determined by the interplay of forces of supply and demand. In stock exchange there is active bidding and a two way auction takes place as a result there is a free competition in the stock market. The price is determined where the bargain is stuck. Stock exchanges also perform other functions that are useful for tax purposes and hence protect the investors interest by eliminating dishonest and irregular practices in the brokerage of trade. 4.2 THE BOMBAY STOCK EXCHANGE Bombay Stock Exchange Limited is the oldest stock exchange in Asia with a rich heritage. Popularly known as "BSE", it was established as "The Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in the country to obtain permanent recognition in 1956 from the Government of India under the Securities Contracts (Regulation) Act, 1956.The Exchange's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons (AOP), the Exchange is now a demutualised and corporatized entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With demutualization, the trading rights and ownership rights have been de-linked effectively addressing concerns regarding perceived and real conflicts of interest. The Exchange is professionally managed under the overall direction of the Board of Directors. The Board comprises eminent professionals, representatives of Trading Members and the Managing Director of the Exchange. The Board is inclusive and is designed to benefit from the participation of market intermediaries. 30 | P a g e In terms of organization structure, the Board formulates larger policy issues and exercises over-all control. The committees constituted by the Board are broad-based. The day-to-day operations of the Exchange are managed by the Managing Director and a management team of professionals. The Exchange has a nation-wide reach with a presence in 417 cities and towns of India. The systems and processes of the Exchange are designed to safeguard market integrity and enhance transparency in operations. During the year 2004-2005, the trading volumes on the Exchange showed robust growth. 4.3 THE NATIONAL STOCK EXCHANGE The National Stock Exchange (NSE) is India's leading stock exchange covering various cities and towns across the country. NSE was set up by leading institutions to provide a modern, fully automated screen-based trading system with national reach. The Exchange has brought about unparalleled transparency, speed & efficiency, safety and market integrity. It has set up facilities that serve as a model for the securities industry in terms of systems, practices and procedures. NSE has played a catalytic role in reforming the Indian securities market in terms of microstructure, market practices and trading volumes. The market today uses state-of-art information technology to provide an efficient and transparent trading, clearing and settlement mechanism, and has witnessed several innovations in products & services viz. demutualization of stock exchange governance, screen based trading, compression of settlement cycles, Dematerialization and electronic transfer of securities, securities lending and borrowing, professionalization of trading members, fine-tuned risk management systems, emergence of clearing corporations to assume counterparty risks, market of debt and derivative instruments and intensive use of information technology. 31 | P a g e 32 | P a g e Chapter-5 Literature Review 1). Balasubramanian et al. (1999) found seven basic reasons for adopting online trading: feeling of empowerment, cost, speed and availability, convenience, easy access to reliable information, lack of trust in and unsatisfactory experiences with traditional brokers, and investors' discomfort when communicating directly with traditional brokers. 2).Cha et al. (2006) identified the diffusion factors of Internet-based financial services. It was observed that perceived efficiency, system reliability, customer service, and personal characteristics were significantly positive in explaining the degree of e-finance usage. 3).Chen and Hitt (2000) found that customers with high overall transaction volume have high incentives to switch to an online broker. However, these studies used a cross-sectional data set to investigate investors' investment characteristics and psychology after adopting online trading. It is plausible that investors might change their investment behavior and psychology in response to the new environment of online trading. For example, going online may cause investors to trade more frequently, and if investors' profits decline because of online trading, their confidence and investment risk propensity may change accordingly. Therefore, the causality has not been established. 4.) Doherty et al. (2003) and (Akinci et al., 2004) found that male and young customers were most likely to adopt the internet. The young, educated, and affluent embraced the advent of personal computer as the new wave in digital technology 5).Hella Chemingui, Hajer Ben lallouna, (2013), study based on innovation acceptance and explored consumer confidence drew reference from Rogers theory of innovations diffusion (2003), observed that compatibility, trialability and perceived enjoyment were motivational factors behind using mobile financial services among the Tunisian respondents and tradition act as a barrier force. 6).Lau et al. (2001) found that perceived usefulness, perceived ease of use, and compatibility significantly affected the attitude towards the use of on-line trading. Besides, on-line trading was likely to improve the process of placing orders. 33 | P a g e 7).Loh and Ong (1998), based on 151 responses, examined the impact of users evaluation and their beliefs and attitudes, as well as their usage behaviour on adoption and acceptance of a new innovation in Singapore. The study revealed that users concerns, expectations, perceived ease of use, and the real value added of a new system as well as their trading behavior were crucial determinants to the ultimate adoption of Internet stock trading. 8).Nidhi walia and Ravinder kumars (2007) research report examined the investors preference for traditional trading and online trading, investors perception on online trading and comparing current usage of online trading and offline trading. This study reveals that out of every 100 investors only 28 trade online, which points out a question as why investors were not able to realize the importance of technology in stock trading. 9).Peter Tobbin, (2012), through group discussions and experience sharing identified economic benefits and trust to be the driving force behind accepting mobile banking services especially among the unbanked rural respondents.

10).Rajagopalan, V, expressed the problem faced by him on online share trading. What he cannot stomach is how his ID number was interchanged with another client, and his account debited to pay for derivatives, while he did not order. Worse his scripts were sold to cover losses which he had not incurred. Luckily, the broker admitted his mistake and compensated him, but the episode has left Rajagopalan extremely chary of online trading. 11).Ramayah, (2007), advocated that subjective norm and perceived behavioural control had a direct positive relationship towards behavioural intention to use internet stock trading with specific reference to developing countries. 12).Richard Boateng, (2011), applied the transaction cost theory and developed a conceptual model analyzing the impact of mobile phones on pre-trade, during-trade and post-trade activities using the descriptive survey technique. Differential usage was identified on the basis of education level of traders, the educated trades used mobile phones for conducting their trading activities while the uneducated traders used the phone was simple calculations.

34 | P a g e 13).Sohail and Shanmugham (2003) found three major factors affecting the adoption of Internet banking services, namely, Internet accessibility, awareness of e-banking, and attitude towards change in Malaysia. 14).Teo et al. (2000) examined the attitude of 208 adopters and 222 non-adopters towards Internet stock trading in Singapore. It was observed that 78.4 percent of the Internet stock trading respondents preferred using Internet to conventional means of trading. It was also observed that adopters were more confident of the security of Internet stock trading than non-adopters. 15).Tommi Laukkanen, (2007) advocated that efficiency, convenience and safety are salient in determining the differences in customer value perceptions between internet and mobile banking following Means-end approach and laddering interviewing technique. 35 | P a g e 36 | P a g e CHAPTER: 6 RESEARCH METHODOLOGY Online share trading is not a new concept for India too.NSE has started it in 1992. Still share-trading is not very popular among middle class people and they think it as risky investment. If we see the growth of the sensex .It has increased more than 15 times in 16 years. In 1992 it was at just 1000 and today it is about15000. It was at 21000 in January 2008. 6.1 NEED FOR THE STUDY: Investments are both important and useful in the, context of present-day conditions. Some factors that have made investment decisions increasingly important are: Longer life expectancy or planning for retirement, increasingly rates of taxation High interest rates, High rate of inflation, large incomes, Availability of a complex number of investment outlets.During research it was my aim to find out different aspects of online trading and peoples interest about it. Which companies are popular among them, how much they know about these things, how much are they satisfied etc.? Meanwhile I was also looking for prospect customers also for Kotak Securities Ltd. Following are the main objectives of the research: 6.2 PRIMARY OBJECTIVES: To find out potential customer by creating awareness among the people for opening D MAT a/c To study the awareness and interest of customers for online trading services. To find out customers satisfaction level. 6.3 SCOPE OF THE STUDY: To find out customers overall perception about the system. To know what motivates prospective customer to think about going for online share trading. To know what options are used by customer in online trading. To get information regarding the current market share of the company. To know competitors of Kotak Securities in the market. 37 | P a g e 6.4 DEVELOPING RESEARCH PLAN The second stage of marketing research calls for developing a most efficient plan for gathering needed information. Designing a research plan calls for taking decision on data sources research, approach, research instrument, samplingplan and contact methods. 6.5 DATA SOURCE There are two types of methods used in data collection i.e. primary data & secondary data. 6.5.1 PRIMARY DATA Those data which arecollected at first hand by the researcherespecially for the purposeof the study ,areknownas primary Data .The data is collected directly from the person in sample population. In this project research the collection of data is directly interviewing customer. In the collection of the primary data, I have used survey method and use the questionnaire methods. There are mainly two methods for the collection of the primary data which are given below, Observational Method. Survey Method. OBSERVATION METHOD:- In the observation method, it requires the observer. The observer will keenly observe the person at the time of the interview & record his behavior accurately. it is also one of The important method for the collection of databut it requires good & experienced observer who can observer The behavior of the respondent properly and record it with great accuracy. SURVEY METHOD:- It is most popular method for the collection of necessary data from the respondents. I have used survey method for the collection of the necessary data. Different types of the survey are given below, Personal interview. Telephonic survey. PERSONAL INTERVIEW:- In the personal interview, the interviewer will personally meet the respondent and will take is interview. The interviewer will ask question in face to face direction to the respondents or group of respondents. 38 | P a g e TELEPHONIC SURVEY:- In the telephonic interview, the interviewer will make call to respondents, inform the respondents about the purpose of the call and then he will ask the related questions to the respondents. This method is used, when the information to be collected is limited. It is mostly used when information to be collected is limited. 6.5.2 SECONDARY DATA Any data which had been gathered earlier for other purposes are secondary data in hand of marketing research. These data has been collected from company dealer like Dealer profile, industrial profile, company profile are collected from the internet. The secondary data are collected from the magazines, internet and Web -sites. Different web sites like www.Kotaksecurities.com and GOOGLE Search engine help in collecting the detailed information. 6.6 RESEARCH APPROACH Out of 4 ways of research approaches i.e. 1. Observation research. 2. Survey Research 3. Focus Group research 4. Experimental research. In this project the approach used was survey approach because the main objective of our survey was to study of the market potential and have an idea about the customer awareness. 6.7 SAMPLING Research instruments can be of two types firstly questionnaire methods and secondly mechanical instruments. In this survey the research instrument was questionnaire method. 6.8 SAMPLING PLAN:- Sampling size: 50 Field Work area : Ludhiana City Random sampling SAMPLING PROCEDURE:- The sampling Procedure can be of two types: 1. Probable Samplings 2. Non-probable sampling In this survey expert Judgments sampling method can be used. 39 | P a g e CONTACT METHODS: The method of contacts can be three types 1. Personal Interview 2. Telephonic Interview. 3. Internet 6.9 STATEMENT OF PROBLEM Problem definition is one of the most important parts of the study. It is very important to properly define the problem. If the problem is properly defined then it will provide proper guide line for the further study. The properly defined problem will direct the surveyor on the proper path. And it is truly said that a properly defined problem is a half solve. Here the main problem is to study on the INVESTOR PREFERENCES FOR ONLINE TRADING (IN LUDHIANA). Market potential is nothing but the finding out potential customers for the product of organization; which gives maximum profitability. To find out market potential study of competitors; consumer behavior; brand positioning is must which gives idea about the market scenario. Online share trading share trading is nothing but the buying and selling shares as per the market position, this is done through broker. Broker-broker is the person who brings buyer and seller together. So the problem is to know the market potential of online share trading and the popularity of online share trading among the people. It is also to know which options are preferred by customers. 40 | P a g e 41 | P a g e CHAPTER: 7 DATA ANALYSIS 7.1 INVESTMENT OPTIONS Investment OptionPersonPercent % Valid Percent % Cumulative Percent % Bank24.04.04.0 Insurance2040.040.044.0 Post office1020.020.064.0 Mutual-fund1836.036.0100.0 Total50100.0100.0 INTERPRETATION This shows that most of people, who are observed, are interested in investing in Insurance or Mutual Fund. 20% people are also interested in investing in Post office. 42 | P a g e 7.2 BRAND AWARENESS INTERPRETATION ICICI was at the top of the mind of 45% people out of 100% and Sharekhan securing second position with 31%, followed by Kotak and HDFC with 14% and 10% respectively. CompaniesNo. of RespondentsPercentage % ICICI2245% Sharekhan1631% Kotak Securities0714% HDFC Securities0510% Total50100% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Percentage ofPeople ICICIShareKhanKotak Securities HDFC Securities BRAND AWARENESS 43 | P a g e 7.3 IS ONLINE TRADING EASY? Ans Respondents Percent % Valid Percent % Cumulative Percent % Yes4182.082.082.0 No918.018.0100.0 50100.0100.0 INTERPRETATION This proves most of people accept that online trading is easy. This is a plus point for stock trading companies. Total 44 | P a g e 7.4 DO YOU NEED TRAINING? Respondents Percent % Valid Percent % Cumulative Percent % Yes4284.084.084.0 No816.016.0100.0 50100.0100.0 INTERPRETATION This shows that people need proper training for using online trading although it is easy. Ans. Total 45 | P a g e 7.5 SOURCES OF ADVERTISEMENT SourcesNo. of RespondentsPercentage % News papers & magazines3264% Friends1020% Internet & Other media0816% Total50100% INTERPRETATION 63% people come to know about online share trading through news paper and magazines whereas 20% people come to know through friends and 17% people come to know through other media like internet, news channel etc. 0% 10% 20% 30% 40% 50% 60% 70% PercentageOf people News papers & magazines FriendsOther mediaSOURCES OF ADVERTISEMENT Internet & Other media 46 | P a g e 7.6 AWARENESS OF E-BROKING INTERPRETATION 60% people were unfamiliar of the term e-broking and only 40% people aware were with the concept of e-broking. ReplyNo. of RespondentsPercentage% Yes2040% No3060% Total50100% NSE YesNO 47 | P a g e 7.7 INTEREST IN E- BROKING ReplyNo. ofRespondentsPercentage % Yes4896% No0204% Total50100% INTERPRETATION Out of the total sample size 97% people found the concept of e-broking interesting and 03% people do not find it interesting. 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% PercentageOf people YesNo INTEREST IN E-BROKING 48 | P a g e 7.8 PREFERRED SYSTEMS OF SHARE TRADING SystemNo. of RespondentsPercentage % Online2652% Traditional2142% Cant say0306% Total50100% INTERPRETATION Regarding the preferences towards the different systems of share trading, online share trading emerged as a clear cut winner with 53% people preferring it, followed by traditional with 41% while 06% people were unable to answer. PREFERED SYSTEMS OF SHARE TRADING52%42% 6% OnlineTraditionalCant say 49 | P a g e 7.9 TRADITIONAL- INFLUENCING FACTORS ReasonNo. ofRespondentsPercentage % Dependence on broker2040% Lack of computer knowledge 1428% Fear of fraudulence1632% Total50100% INTERPRETATION 39% people opt for traditional system of share trading because of their dependence on broker, 29% people opt for traditional system of share trading because of the lack of computer knowledge and 32% people wants to stick with traditional system due to fear of fraudulence. TRADITIONAL- INFLUENCING FACTORS 40% 28% 32% Dependence on brokerLack of computer knowledge Fear of fraudulence 50 | P a g e 7.10 ONLINE INFLUENCING FACTORS FactorsNo. ofRespondentsPercentage % Transparency3264% Hassle Free Service0714% Economical0612% Time saving0510% Total50100% INTERPRETATION: Out of the four fascinating factors of online share trading transparency is at the top as 64% people has voted for it followed by hassle free with 14%, economical with 12% and time saving with 10% respectively. INFLUENCING FACTORS 64% 14% 12% 10% TransparencyHassle Free Service EconomicalTime saving 51 | P a g e 7.11 FUTURE PLANNING FOR ONLINE TRADING ReplyNo. ofRespondentsPercentage % Yes2652% No2244% Cant say0204% Total50100% INTERPRETATION Out of the total sample size 53% people are planning to go for online share trading and 43% people do not want to go for it while 4% people have not yet decided. FUTURE PLANNING FOR ONLINE TRADING 52% 44% 4% Yes No Cant say Percentage of people 52 | P a g e 7.12 REASONS FOR NOT ENTERING INTO E-BROKING ReasonsNo. ofRespondentsPercentage % Relationship with broker2754% Trade rarely1530% Other reasons0816% Total50100% INTERPRETATION 55% people do want to do online share trading because they have good relationship with their broker, 30% people trade rarely and 15% have some other reasons. 0% 10% 20% 30% 40% 50% 60% Percentage ofPeople Relationship With broker Trade rarelyOther reasons REASONS FOR NOT ENTERING INTO E-BROKING 53 | P a g e 7.13 Which attributes made you to choose Online Trading. Null Hypothesis S.NO.Null HypothesisStatements 1H0Perceived perception regarding the time savingis low 2H0Perceived perception regarding the flexibility is low 3H0Perceived perception regarding the one stop shop is low 4H0Perceived perception regarding the Informed Researchis low 5H0Perceived perception regarding the Standardized Procedure is low Mean and Standard deviation

AttributesMeanStandard deviation Time Saving4.140.70015 Flexibility3.6000.7284 One stop Shop3.6400.82709 Informed Research3.5000.8391 Standardized procedure3.740.6327 Z value and p value AttributesZ valueP value Time Saving-3.6360.001 Flexibility-3.8830.000 One stop Shop-3.0780.003 Informed Research-4.2140.000 Standardized procedure-2.9050.005 Interpretation:-1. Time Saving: Z value for this attribute is -3.636 and the p value is .001 which is smaller than Level Of Significance i.e.0.05, we will reject the null hypothesis. The mean value is 4.14 and standard deviation is 0.70015 i.e. rejecting the null hypothesis. On the other side accepted the alternative hypothesis i.e Perceived perception regarding the Time Saving attribute is high. 2. Flexibility: Z value for this attribute is -3.883 and the p value is .000 which is smaller than Level Of Significance i.e.0.05, we will reject the null hypothesis. The mean value is 3.600 and standard deviation is 0.7284 i.e. rejecting the null hypothesis. On the other side accepted the alternative hypothesis i.e. perceived perception regarding the flexibility is high. 54 | P a g e 3. One Stop Shop: Z value for this attribute is-3.078 and the p value is .003 which is smaller than Level Of Significance i.e.0.05; we will reject the null hypothesis. The mean value is 3.6400 and standard deviation is 0.82709 i.e. rejecting the null hypothesis. On the other side accepted the alternative hypothesis i.e. perceived perception regarding the One Stop Shop is high. 4. Informed Research: Z value for this attribute is -4.214 and the p value is .000 which is smaller than Level Of Significance i.e.0.05, we will reject the null hypothesis. The mean value is 3.500 and standard deviation is 0.8391 i.e. rejecting the null hypothesis. On the other side accepted the alternative hypothesis Perceived perception regarding the informed research is high. 5. Standardized Procedure: Z value for this attribute is -2.905 and the p value is .005 which is smaller than Level Of Significance i.e.0.05, we will reject the null hypothesis. The mean value is 3.7409 and standard deviation is 0.6327 i.e. rejecting the null hypothesis. On the other side accepted the alternative hypothesis. Perceived perception regarding the Standardized Procedure is high. 55 | P a g e 56 | P a g e CHAPTER: 8 FINDINGS AND OBSERVATIONS It is found that people who were observed, they are yet investing in Insurance. And mutual funds are also a good option for them. Post office was 3rd favorable option for investing. It may be due to less knowledge of Share market as well as it is considered risky. ICICI is found to be most popular among all. People are well aware of various services providers like Kotaksecurities.com, kotakstreet.com, hdfcsecurities.com. Professionals and executive category are found to be in favor of the online share trading. They showed interest in going for online share trading. It is also seen that people think that online trading is convenient and easy to operate but they also need initial guidance and training. So it must be provided to them so that they can trade comfortably via online. News and magazines are found to be of major source of information. 93% people found to be aware of online trading of securities. 90% of the total population agrees that the concept is easy, convenient & interesting. Still only 53% people are sure to go for online share trading. 41% people rarely want to go for online trading. People have highly voted for transparency feature of the online trading followed by hassle free service, economical and time saving features. Business class prefer off line share trading as most of them have good relationship with their broker. Business class which can be defined as the people who are self employed entrepreneurs are found to be less interested and would like to stick to the traditional system and are much dependent on their broker regarding investments. . 57 | P a g e 58 | P a g e CHAPTER: 9 LIMITATIONS There is no activity without limitations so it had too. The main Limitation has been faced during project research are as follows:- The research has been carried on time span of one an half month. The research is totally based on the personal opinion of the respondents which may vary depending upon their personal view. The research has done along with achieving our target given by company. Peoples response was also not favorable. Due to instability of market people were afraid of it, so they were less interested in these things. 59 | P a g e 60 | P a g e CHAPTER: 10 SUGGESTIONS AND RECOMMENDATIONS 1.Although people have heard about online trading of securities still people have great doubt about its operational feasibility as they are not clear about the concept. Special awareness programs using various media mixes should be carried out to remove fear from the minds of people and make it familiarize. 2.More emphasis should be laid on the convenience that the trading facilities offer by either introducing kiosks in the centre where the clients could have a demonstration for themselves and understand the various features of the product. This could help them determine how conventional mode of trading is. 3.There are large numbers of prospective customers, who trades in small volume or make infrequent transactions or like to hold the stock as a long term investment. The current price structures are not at all suitable for such population. E- Trading companies should look at such class. 4.Awareness campaigns like giving idea about futures and options, derivatives, dividend policies will create interest in online trading. And this helps organization for market positioning as well as mind positioning. 5.Development in public relation management and customer relationship management will lead organization towards strong brand image as well goodwill. 6.Comparative study of customer care and services provide by other companies will help develop business strategies as well business policies. 7.Seminars can be conducted at corporate level so as to increase potential customer base. Corporate people do not go for share trading due to lack of time. This kind of seminar will motivate them and make them aware about e-trading. 8.Tie-up with banks will facilitate the customer as maximum customers have their salary accounts in banks and this account can be used for net banking as well share trading. 61 | P a g e 62 | P a g e CHAPTER: 11 CONCLUSION Shares are the best kind of investment available over a long period of time. And also share market is a place where money earns money. For investing in share market every investor needs to have an agreement with a Depository Participants. Depository Participants are the one who provide the services of D MAT. Kotak Securities is very well known among the investors but from the analysis I found that ICICI Direct Securities is one of the major competitors. During my research I found that there is a large market which is untapped, as most of people find the concept of online share trading very interesting but none of them have been visited by the representative of any company. During my research I also found that many people want to stick with the traditional system of share trading because of lack of computer knowledge and also many people are dependent of their personal broker. In the research I observed that Kotak Securities limited is not effective in the advertisement of its products. 63 | P a g e 64 | P a g e Chapter-12 References Aarati Krishnan online trading clicks big with investors, Business India. April 9, 2006. Adikari Anand (2010), D-Street on Your Mobile, Stock trading promises to spread as the BSE and NSE offer mobile trading platforms; Business Today; November 28 2010, pg 20 Anup Bagch; Net Broking in India, Business world, 5 Dec 2005. Foster Bill (2000), Stock Trading goes mobile, down under they are staying in top with direct access, Communications News, 2000, pg 92 Goswami, Chandana, How does internet stock trading works Vikalpa, Vol.28, No.1. Jun-Mar 2003 page 91-96 Hella Chemingui, Hajer Ben lallouna, (2013) "Resistance, motivations, trust and intention to use mobile financial services", International Journal of Bank Marketing, Vol. 31 Iss: 7, pp.574 592 Lynnwoods, online trading investors take change, Kiplingers personal finance Jan 2003. M. Gopi, T. Ramayah, (2007) "Applicability of theory of planned behavior in predicting intention to trade online: Some evidence from a developing country", International Journal of Emerging Markets, Vol. 2 Iss: 4, pp.348 - 360 Madan Lal Bhasin, E-Broking as a Tool Journal of services Research volume 5 number 2 [Oct 2005 mar 2006]. Nidhi walia & Ravinder Kumar, online stock Trading in India, An Emprical Investigation, Indian Journal at marketing volume xxx VIII, April 2007. Pathak, V.Bharti,(2004), Indian Financial System, Pearson Education, page 122-142 Shashi Prabha Singh, (2005) "The role of technology in the emergence of the information society in India", Electronic Library, The, Vol. 23 Iss: 6, pp.678 690 Shergill, G.S., and Z. Chen (2005). Web-based shopping: consumers attitude towards on-line shopping in New Zealand. Journal of Electronic Commerce Research. 6(2): 79-94 Tommi Laukkanen, Suvi Sinkkonen, Marke Kivijrvi, Pekka Laukkanen, (2007) "Innovation resistance among mature consumers", Journal of Consumer Marketing, Vol. 24 Iss: 7, pp.419 427 Wong, W. (2000). On-line broking: look to us for direction. The Business Times : Singapore. 25(2): 19. 65 | P a g e 66 | P a g e CHAPTER: 13 ANNEXURE Questionnaire for Investors I am a student of LOVELY PROFESSIONAL UNIVERSITY. I am conducting a research on Investors preference for Online Trading as part of my summer internship project in partial fulfilment of MBA degree. I would like you to help me in completing the project by kindly filling the questionnaire as it forms an important part of my study. RESEARCH-QUESTIONS: 1. Which is the best investment-option for you? (a)Bank (b) Insurance (c)Post office(d) Mutual Funds (e) Others 2. Which is the best company according to you? (a)ShareKhan(b) ICICI (c)Kotak Securitie(d) HDFC 3. Do you agree that online trading is easy & convenient? (a) Yes (b) No 4. Do you need training for online trading? (a) Yes (b) No 5. Are you interested in e-broking? (a) Yes(b) No 6. Which is your preference for share trading? (a) Online (b) Traditional (c) Cant say 7. Which is your traditional influencing factor? (a) Dependent on broker (b) Fear of fraudulence (c) Lack of computer information 8. Which is your online Influencing factor? (a) Transparency(b) Economic (c) Hassle free service(d) Time saving 67 | P a g e 9. Do you have future planning for online trading? (a) Yes (b) No (c) Cant say 10. What is reason for not entering in E-Broking? (a) The Relationship with broker (b) Trade rarely (c) Other reason 11. Rate the ATTRIBUTES on 5- point Likert scale which made you to choose Online Trading (5-very high, 4-high, 3-medium, and 2-low, 1-very low) Attributes54 3 21 Time Saving Flexibility One stop Shop Informed Research Standardized Procedure PERSONAL INFORMATION: 12. Name: 13. Gender: (a) Male (b) Female 14. Age: (a) Between 20-22 years (b) Between 22-25years (c) Between 25-30years(d) Above 30 years 15. Are you employed? (a) Yes(b) No 16. What is your monthly income? (In Rs) (a) Below 10000/-(b) 10000-20000/- (c)20000-30000/- (d) Above 30000/-