PREFACE

In order to make the students competent, all students are required to make a real time project work. This exposure to real life situation given an insight to the students about what problem he/she can expect to face during his carrier.Studying books and merely passing exams is not worth the education, knowledge and in fact experience is incomplete without being exposed to what is happening in real. With the introduction of compulsory trading by SEBI there has been mushroom growth of depository participants with so many DP to choose from, clients still had to face so many problems while carrying transaction. LSE also entered the DP business with the aim of providing most efficient services. My study aims of finding out how far it has been successful in keeping its promise of efficient services.The main intention of this report is to compile the subject matter in such a way that anybody, who has no prior acknowledgment of element of LSE & DP, can understand properly without any difficulty. Annually this report is result of an assignment to improve myself & gain confidence. I have done my best to make it a genuine study but as we all know a maxim TO ERROR IS HUMAN so there is change for some mistakes.

ACKNOWLEDGEMENT

After two semester of hectic schedule full of case studies, exams and presentation, six weeks of summer training in M.B.A course provides an opportunity to gain some practical knowledge in the industry and my summer training at TRADING OF NATIONAL STOCK EXCHANGE AND BOMBAY STOCK EXCHANGE association ltd. provided me one such opportunity. My summer training at LSE association ltd. was an amazing experience. It gave the much needed knowledge of the Trading that a student of finance must posses. I got the chance to understand the activities performed and the main operations of the stock exchange. However, this would not have been possible without the noble attitude of some persons in the exchange. First, I am highly thankful to Mrs. Pooja M. Kohli (Executive Director) of LSE for permitting me to take the training at LSE Ltd. I also wanted to express our sincere gratitude to Mr. Sadhu Ram ( Training and Education Incharge) for their guidance throughout this project report .I would have not ended up with doing another backneyed topic if he could not have given me the opportunity to do work on these latest development in capital market.

I extend my gratitude to our HEAD Mr.M.J Kalra and all the related teachers. The help and cooperation they offered at each stage of my study is ineffable. Their valuable suggestions and constant encouragement made this study interesting and useful.Finally, I would like to acknowledge the support I got from my parents and God. It was their blessing that kept me motivated throughout till the completion of the project.

STUDENT DECLARATION

I hereby Declare that the Project work titled of Trading of National Stock Exchange and Bombay Stock Exchange submitted by me in partial fulfillment of the award of the degree of MASTER OF BUSINESS ADMINISTRATION in Finance is my original work and it was not submitted to any University or Institution or Published any time before. This is our own study done under the guidance of manager of the company.I hereby declare that the contents of this report are true and best to my knowledge.

PLACE: LUDHIANA (RAJNI) ROLL NO. : 12 BATCH : 2ND

COMPANY PROFILEHistory of Ludhiana Stock ExchangeLimited (LSE) was established in the year 1983. By 1999-2000, the exchange had a total of 284 brokers, out of which 79 were corporate brokers. Among 284 brokers, it was further classified as 212 proprietor broker, 2 partnership broker and 70 corporate broker. Then, there was only 23 sub-brokers registered.Ludhiana Stock Exchange became the second bourse in India to introduce modified carryforward system after BSE on April 6, 1998. On the same date, LSE also introduced a settlement guarantee fund (SGF). The SGF guarantees settlement of transactions and the carryforward facility provides liquidity to the market.LSE became the first in India to start LSE Securities Ltd., a 100% owned subsidiary of the exchange. The LSE Securities got the ticket as sub-broker of the NSE. In 1998, the exchange also got permission to start derivative trading.For the settlement of dematerialised securities, the Ludhiana Stock Exchange has also been linked up with National Securities Depository Ltd. (NSDL)Regulatory and membership of LSE

Company Profile Ludhiana Stock Exchange is one of the leading Stock Exchange among the Regional Stock Exchanges of the country, and has been providing trading platform for the investors situated in Punjab, J.& K., Himachal Pradesh & Chandigarh.

Ludhiana Stock Exchange, it is a corporate member of NSE in both the capital market and futures and options segments and BSE equity segment. Trading member of LSE can assess NSE and BSE platforms by registering themselves as sub brokers of LSE Securities Ltd. LSE Securities Ltd. thus provides the investors one stop solution for cost effective trading and settlement services in small cities. LSESL is depository participant (DP) of NSDL & CDSL and is providing depository services to intermediaries and investors.

Desired ProfileCandidate should possess a professional degree in CA/CS/ICWA/MBA from a recognized university. Candidate should have atleast 15 years of post qualification experience in the securities/ capital market, of which atleast 8 years should have been at the senior management level. Candidate should have demonstrated leadership abilities and superior understanding and judgement in implementing complex financial and institutional decisions. Candidate must have significant management experience, preferable of initiating change and transforming superior analytical and outstanding communications skills.

Age Between 40- 50 years .The application together with curriculum vitae should contain details of qualification, experience, remuneration drawn and expected, two references and as well as recent passport size photograph should reach by 01.09.2007 toThe ChairmanLudhiana Stock Exchange Limited

Securities and Exchange Board of IndiaIntroductionSEBI is the Regulator for the Securities Market in India. Originally set up by the Government of India in 1988, it acquired statutory from in 1992 with SEBI Act 1992 being passed by the India Parliament. Chaired by C B Bhave, SEBI is headquartered in the popular business district of Bandra- Kurla complex in Mumbai and has Northern. Eastern and Southern regional offices in New Delhi, Kolkata and Chennai. It is in the news that a new We stem Regional Office has been proposed at Ahmedabad.Function of SEBISEBI has to be responsive to the needs of three groups, which constitute the market.a. The issuers of securitiesb. The investorsc. The market intermediaries.SEBI has three functions rolled into one body quasi-legislative, quasi-judicial and quasi-executive. It drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its executive function and it passes rulings and orders in its judicial capacity. Though this makes it very powerful, there is an appeals process to create accountability. There is a Securities Appellate Tribunal which is a three member tribunal and is presently headed by a former Chief Justice of a High court Mr. Justice NK Sodhi. A second appeal lies directly to the Supreme Court. SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively and successively ( e.g. the quick movement towards making the markets electronic and paperless rolling settlement on T + 2 basis ). SEBI has been active in setting up the regulations as required under law.

TABLE OF CONTENT

1. INTRODUCTION Trading of company2. TRADING Online Trading Company Offline Trading Company

3 TRADING OF NATIONAL STOCK EXCHANGE

4 TRADING OF BOMBAY STOCK EXCHANGE

5 INTRODUCTION OF STOCK EXCHANGE Meaning of stock exchange future plans of stock exchange features of stock exchange history of stock exchange functions of stock exchange benefits of stock exchange

6 BOMBAY STOCK EXCHNGE vision

7 NATIONAL STOCK EXCHANGE vision

8 STOCK MARKET stock share market

9 SHARE TRADING OF 3 PARTS Offline share trading Online share trading Open outcry share trading

10 Security exchange board of india functions of sebi

11 Board stock excgange evolution of Bombay stock exchange bombay stock exchange of history

12 NATIONAL STOCK EXCHANGE ORIGINS working hours

13 SENSEX AND NIFTY

14 SHAREHOLDER OF NATIONAL STOCK EXCHANGE

15 SHAREHOLDER OF BOMBAY STOCK EXCHANGE

16 GRAPHICAL REPRESENTATION

17 DATA ANALYSIS Return, Variance, Standard DeviationOf NSE Sensex Return, Variance, Standard DeviationOf BSE Sensex Correlation of Returns Between NSE & BSE

18 CONCLUSION AND RECOMMENDATION

19 RESEARCH METHODOLOGY AND OBJECTIVE OBJECTIVE OF THE STUDY

20 BIBLIOGRAPHY

21 QUESTIONNAIRE

TRADING COMPANYTrading companiesarebusinessesworking with different kinds ofproductswhich are sold forconsumer, business orgovernmentpurposes. Trading companies buy a specialized range of products, maintain a stock or a shop, and deliver products tocustomers.Different kinds of practical conditions make for many kinds of business. Usually two kinds of businesses are defined in trading. Importers or wholesalers maintain a stock and deliver products to shops or large end customers. They work in a large geographical area, while their customers, the shops, work in smaller areas and often in just a small neighbourhood.When talking about "trading companies", today we refer mainly to global B2B traders, highly specialized in one goods category and with a strong logistic organization.Changes in practical conditions such as fasterdistribution,computingand modernmarketinghave led to changes in their business models.Theamountof time in which an order can be executed before itexpires. The time in force can beset upwhenplacingthetrade, and givestraderscontrol over the timing of theexecutionof the trade. A "day order", for example, may have a time in force of the currenttrading day.

TRADING1.Buyingandsellingsecuritiesorcommoditieson ashort-termbasis, hoping tomakequickprofits.2. More generally, any buying and selling of securities, commodities,goods, orservices

ONLINE TRADING

Before getting in to the online trading we should know some thing about the internet, e-commerce and etc.Internet : Internet is a worldwide, self-governed network connecting several other smaller networks and millons of computers and persone, to mega sources of information. The technology shrinks vast distances, accelerating the pace of business reforms and revolutionizing the way companies are managed. It allows direct, ubiquitous links to anyone anywhere and anytime to build up interactive relationships.A combination of time and space, called the internet promises to bring unprecedented changes in our lives and business. Internet or net is an interconnection of computer communication networks spanining the entire globe, crossing all geographical boundaries. Net being an interactive two way medium, through various websites, enables participation by individuals in business to business and business to consumer commerce, visit to shopping arcades, games, etc. in cyber space even the information can be copied, downloaded and retransmitted.The use of internet has grown 2000 percent in last decade and is currently growing at 10 percent per month. In india, growth of internet is of recent times. It is expected to bring changes in every functional area of business activity including management and financial services. It offers stock trading at a lower cost. Internet can change the nature and capacity of stock broking business in india.

E-commerce: Electronic commerce is associated with buying and selling over computer communication networks. It helps conduct traditional commerce through new way of transferring and processing of information. Information is electronically transferred from computer to computer in an automated way. E-commerce refers to the paperless exchange of business information using electronic data inter change, electronic technologies. It not only reduces manual processes and paper transactions but also helps organization move to a fully electronic environment and change the way they operated.PCs and networking attempts to introduce banks of the tools and technologies required for electronic commerce. The computers are either workstations of individual offer works or service where large databases and information reside. Network connects both categories of computers the various operating systems are the most basis program within a computer. It managers the resources of the computer system in a fair and efficient manner.Now we can enter in to the concept known as online tradingIn the past, investors had no option but to contact their broker to get real time access to market data. The net brings data to the investor on-line and net broking enables him to market data.. The net brings data to the investor on-line and broking enables him to trade on a click of mouse. Now information has become easily accessible to both retail as well as big investor.EVOLUTION OF BROKING IN INDIA :The evolution of a broking in india can be categorized in three phases 1. Stockbrokers will offer on their sites features such as live portfolio manager, live quates, market research and news, etc. to attract more investors. 2. Brokers will offer online broking and relationship management by providing and offering analysis and information to investors during broking and non broking hours based on their profile and needs, i.e. customized services.

3. Brokers ( now e-brokers ) will offer value management or services like initial public offering online, on-line asset allocation, portfolio management, financial planning, tax planning, insurance services, etc. and enables the investors to take better and well considered decisions.The actual definition of Online Trading is as explained below:Online trading is a service offered on the internet for purchase and sale of shares.In the real world you place orders on your stockbroker either verbally (personally or telephonically) or in a written from ( fax ). In online trading, you will access a stockbrokers website through your internet enabled PC and place orders throughthe brokers internet based trading engine. These orders are routed to the stock exchange without manual intervention and executed thereon in a matter of a few seconds.The net is used as a mode of trading in internet trading. Orders are communicated to the stock exchange through website.IN INDIAInternet trading started in India on 1st April 2000 with 79 members seeking permission for online trading. The SEBI committees on internet based securities trading services has allowed the net to be used as an Order Routing System (ORS) through registered stock brokers on behalf of their clients for execution of transaction. Under the ORS the client enters his requirements ( security , quantity, price buy / sell ) on brokers site.

TRADING OF NSE TheNational Stock Exchange(NSE) isstock exchangelocated atMumbai,India. It is the11th largest stock exchangein the world bymarket capitalizationand largest in India by daily turnover and number of trades, for both equities and derivative trading.NSE has a market capitalization of aroundUS$1trillionand over 1,652 listings as of July 2012.]Though a number of other exchanges exist, NSE and theBombay Stock Exchangeare the two most significant stock exchanges in India, and between them are responsible for the vast majority of share transactions. The NSE's key index is theS&P CNX Nifty, known as the NSENIFTY(National Stock Exchange Fifty), an index of fifty major stocks weighted by market capitalisation.NSE is mutually owned by a set of leading financial institutions, banks, insurance companies and other financial intermediaries in India but its ownership and management operate as separate entities.There are at least 2 foreign investorsNYSE EuronextandGoldman Sachswho have taken a stake in the NSE.As of 2006, the NSEVSATterminals, 2799 in total, cover more than 1500 cities across India.In 2011, NSE was the third largest stock exchange in the world in terms of the number of contracts (1221 million) traded in equity derivatives.It is the second fastest growingstock exchangein the world with a recorded growth of 16.6%.

The National Stock Exchange of India (NSE) is India's largest securities exchange in terms of daily trade numbers. It offers automated electronic trading of a variety of securities, including equity, corporate debt, central and state government securities, commercial paper, CDs, and exchange traded funds. The exchange has more than 1,000 listed members. Owned by more than 20 different financial and insurance institutions, NSE specializes in three market segments: wholesale debt, capital market (automated screen-based trading system), and futures and options (derivatives, the largest segment of the exchange). NSE started operations in 1994

Definition of 'National Stock Exchange (NSE) .NO'

Established in India in 1994 to provide a more transparent alternative to The Bombay Stock Exchange. It is the largest stockExchangein India in both turnover and number of trades. The NSE is a national exchange integrating the countrys stock markets through nationwide automated on-line screen operations and electronic clearing and settlement. The exchanges products include equities, exchange-traded funds, stock futures, index futures, interest rate futures, and options. The S&P CNX Nifty, a diversified 50-stock index representing 23 sectors of the Indian economy, is among the exchanges major indices.

BOMBAY STOCK EXCHANGEEstablished in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange Ltd. and established as "The Native Share and Stock Brokers' Association") is one of Asias fastest stock exchanges, with a speed of 200 microseconds and one of Indias leading exchange groups. BSE is a corporatized and demutualised entity, with a broad shareholder-base that includes two leading global exchanges, Deutsche Bourse and Singapore Exchange, as strategic partners. BSE provides an efficient and transparent market for trading in equity, debt instruments, derivatives, and mutual funds. It also has a platform for trading in equities of small-and-medium enterprises (SME). Over the past 139 years, BSE has facilitated the growth of the Indian corporate sector by providing an efficient capital-raising platform.More than 5000 companies are listed on BSE, making it the world's top exchange in terms of listed members. The companies listed on BSE Ltd. command a total market capitalization of USD 1.51 Trillion as of May 2014.[1]It is also one of the worlds leading exchanges (3rd largest in March 2014) for Index options trading (Source: World Federation of Exchanges).BSE also provides a host of other services to capital market participants, including risk management, clearing, settlement, market data services, and education. It has a global reach with customers around the world and a nation-wide presence. BSE systems and processes are designed to safeguard market integrity, drive the growth of the Indian capital market, and stimulate innovation and competition across all market segments. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification and the Information Security Management System Standard BS 7799-2-2002 certification for its On-Line trading System (BOLT). BSE also provides depository services through its Central Depository Services Ltd. (CDSL) arm.BSEs popular equity index - the S&P BSE SENSEX - is India's most widely tracked stock market benchmark index. It is traded internationally on the EUREX as well as leading exchanges of the BRCS nations (Brazil, Russia, China and South Africa). BSE has won several awards and recognitions that acknowledge its work and progress, like India Innovation Award for the Big Data implementation, ICICI Lombard and ET Now Risk Management BFSI Company 2013, SKOCH Order of Merit Certificate (awarded to BSE Limited for E -Boss for qualifying among India's Best 2013), The Golden Peacock Global CSR Award (for its initiatives in Corporate Social Responsibility), NASSCOM - CNBC-TV18s IT User Awards, 2010 in Financial Services category, Skoch Virtual Corporation 2010 Award in the BSE StAR MF category, and Responsibility Award (CSR) by the World Council of Corporate Governance. Its recent milestones include the launching of BRICSMART indices derivatives, BSE-SME Exchange platform, S&P BSE GREENEX to promote investments in Green India.

Definition of 'Bombay Stock Exchange (BSE) .BO'

The first and largest securities market in India, the Bombay Stock Exchange (BSE) was established in 1875 as the Native Share and Stock Brokers' Association. Based in Mumbai, India, the BSE lists over 6,000 companies and is one of the largest exchanges in the world. The BSE has helped develop the country's capital markets, including the retail debt market, and helped grow the Indian corporate sector.

INTRODUCTION TO STOCK EXCHANGE

A stock exchange is a nervous system of the capital marked changes in the capital marked are brought about by a set of factors , all operating on the market simultaneously. Such changes are subject to secular trends set but the economic progress of the nation and governed by the factors like general economic condition situation, financial and monetary policies, tax changes, political environment, and international economic and financial development etc. these trends are influenced to some extend by periodical cycles of boom and depression in the free market economics. As against these long-term trends, the buying and selling of major operators, the trading by the investment financial institutions, speeches by the ministers and govt. and spokesmen, statement by company chairmen and officials etc. while these factors both long term and short term act as micro influences on the cooperate sector. A stock exchange provides necessary mobility to capital and directs the flow of the capital into the profitable and successful enterprise.A stock exchange is a place or a market where securities, share, debentures, bonds, mutual funds of Joint Stock Company, central and state govt. organization, local bodies and foreign govt. are bought and sold. A stock exchange is a platform for the trade of already issued securities through primary market. It is the essential pillar of the private sector and cooperate economy. It is the open auction market where buyer and sellers meet and involve a competitive price for the securities. It reflects hope aspirations and fears of people regarding the performance of the economy. It exerts a powerful and significant influence as a depressant or stimulant of business activity. The trade in market is through the authorized members who have duly registered with concerned stock exchange and SEBI.

MEANING OF STOCK EXCHANGESTOCK EXCHANGE is a platform where buyers and sellers of securities issued by government, financial institutions, corporate houses etc meet and where the trading of these corporate securities take place the securities which are traded in to stock exchange, are shares, debentures of public companies, port trust utility undertakings and such other securities contract (regulations) act, 1956 defines stock exchange as:An association organization or body of individuals, whether incorporated or assisting, regulating and controlling business in buying, selling and dealing in securitiesStock exchange provides place for sale and purchase of securities i.e. shares, bonds etc. It provides linkages between the savings of household sector and investment in corporate sector or economy. It provides market quotation for shares, debentures and bonds and serves as a role of barometer, not only of the state of the health of the individual companies, but economy as a whole. Since buying and selling of different type of securities takes place in stock exchange. The prices of particular securities reflect their demand and supply. In fact, stock exchange is said to be a barometer of economic and financial health.

INTERNATIONAL STOCK EXCHANGE

The preliminary work on ISE had then realized that the smaller exchanges would be better off only if they were united for optimally utilizing their resources. In effect, 1995-96 was the first year when ISE faced the competitive pressure of NSE and started working on this model. It has been a significant task during the last 5 years to reach this level of completion and credibility. The path has been difficult but we are sure it would be useful in progressing further on this front. The process of the consolidation by ISE is different from the usual merger route being followed by the exchanges internationally due to sensitivity of the decision to merge. Therefore inter connectivity of regional stock exchanges through a holding in the form of an apex exchanges was chosen as an optimal path. There has been a lack of initiatives from the trader and dealers to create liquidity in ISE during the last three years. During the current year, with the establishment of the subsidiary providing access to the NSE market, the traders and dealers became further co placement to trade on ISE, as NSE became the preferred Route of doing business.

FUTURE PLANS:The current market scenario in the capital market is not very encouraging, however, in the future; the business models of ISE would be the most preferred method of accessing multiple markets with low cost and high credibility of an exchange. ISE id considering several value added services or new products. We are considering derivatives segment through NSE and DP services initially for the participants and later for clients through CDSL and NSDL. On account of this philosophy we are proposing to implement most of new products centrally on ISE, like internet trading, IPO segment, dissemination etc. We are also considering in providing them entry into securities industry. This market is expected to provide liquidity in small capital companies as the other national level markets have a higher entry norm and may not cater to this market.

FEATURES OF STOCK EXCHANGE

1. It is the place where listed securities are bought and sold.

2. It is an association of persons known as members.

3. Trading in securities is allowed under rules and regulations of stock exchange.

4. Membership is must for transacting business.

5. Investors and speculators, who want to buy and sell securities, can do so through members of stock exchange i.e. brokers.

HISTORY OF STOCK EXCHANGE

The trading of securities in India was started in early 1973. The only stock exchange operating in the 19century were those of Bombay set up in 1875 and in Ahmedabad set up in 1894. These were organized as voluntary non-profit making associational of brokers to regulate and protect their interests. Before the control on securities trading become a central subject under the constitution in 1950. It was a stage subject and Bombay securities contract (control) act of 1925 used to regulate trading in securities. Under this act, Bombay stock exchange was recognized in 1927 and Ahmedabad stock exchange in 1937. During the war boom , a number of stock exchanges were organized at Bombay, ahmedabad and other centres but they were not recognized soon after it become a central subject, central legislation was proposed and committee headed by ah. A.D.GORWALA went into bill for security regulations. On the basis of securities contracts act become law in 1956. At present there were 24 recognized stock exchanges in India.

FUNCTIONS OF STOCK EXCHANGE

A) The stock exchange provides appropriate conditions where by purchase and sale of securities takes place at reasonable and fair prices.B) The stock exchange provides a ready market for the conversion of existing securities into cash and vice-versa.C) People having surplus funds invest in securities and these funds are used for industrialization and economic development of country that leads to capital formation.D) Stock exchange protects the interests of investors through strict enforcement of rules and regulations with respect of dealing.E) Stock exchange act as a centre of providing business information relating to enterprise whose securities are traded as the listed companies are to present their financial and other statement to it.F) The management and working of companies are influenced by a great extend by stock exchange in public interest.G) Stock exchange ensures inevitable funds or capital to flow in to the most profitable enterprises.

WHO BENEFITS FROM STOCK EXCHANGE

INVESTORS: It provides them liquidity, marketability, safety etc of investment.COMPANIES: It provides them access to market funds, higher rating and public interests.BROKERS: They receive commission in lieu of their services to investors. ECONOMY AND COUNTRY: There is large flow of saving, better growth and moves industries, and higher incomes.

MAJOR STOCK EXCHANGES IN INDIA

1. NSE

2. BSE

BOMBAY STOCK EXCHANGE

VISION: Emerge as premier Indian stock exchange by establishing global benchmarks

Established in 1875 as The native share & stock broker association in 1875. The Bombay stock exchange limited located at Dalal Street , Mumbai , India.One of the oldest stock exchanges in India Worlds no. 1 exchange in terms of listed companies in the world. Has 4900 listed as of August 2007. It is first stock exchange in India and second in world for obtaining ISO9001:2000 certification. Market capitalization of the companies listed on the BSE was US$1.79 Trillion. Largest stock exchanges in South Asia & 12th largest in the world. It has launched T+2 settlement in 1april,2000.

NATIONAL STOCK EXCHANGE

The national stock exchange of India limited is a Mumbai based stock exchange. NSE is established in 1992. It is largest stock exchange in India in terms of daily turnover. It is owned by the group of leading financial institutions such as Indian Bank or Life Insurance Corporation of India. It is totally demutualization exchange. It is largest and most advanced exchange with 1016 companies listed and 726 trading members. Fully automated screen based trading platform NEAT. NSE takes 14th position in the top 40 future exchanges in the world. It was the first exchange in India that started trading stock on the internet in 2000.NSE has market capitalization of around Rs 47,01,92cr (7 August 2009 ).

1

Shareholders of NSEIL

1.IndustrialDevelopmentBankofIndiaLimited2.IndustrialFinanceCorporationofIndiaLimited3.LifeInsuranceCorporationofIndia4.StateBankofIndia5.ICICIBankLimited6.IL&FSTrustCompanyLimited7.StockHoldingCorporationofIndiaLimited8.SBICapitalMarketsLimited9.TheAdministratoroftheSpecifiedUndertakingofUnitTrustofIndia10.BankofBaroda11.CanaraBank12.GeneralInsuranceCorporationofIndia13.NationalInsuranceCompanyLimited14.TheNewIndiaAssuranceCompanyLimited15.TheOrientalInsuranceCompanyLimited16.UnitedInsuranceCompanyLimited17.PunjabNationalBank18.OrientalBankofCommerce19.CorporationBank20.IndianBank21.UnionBankofIndia

Shareholders of BSEIL

1.IndustrialDevelopmentBankofIndiaLimited2.IndustrialFinanceCorporationofIndiaLimited3.LifeInsuranceCorporationofIndia4.StateBankofIndia5.ICICIBankLimited6.IL&FSTrustCompanyLimited7.StockHoldingCorporationofIndiaLimited8.SBICapitalMarketsLimited9.TheAdministratoroftheSpecifiedUndertakingofUnitTrustofIndia10.BankofBaroda11.CanaraBank12.GeneralInsuranceCorporationofIndia13.NationalInsuranceCompanyLimited14.TheNewIndiaAssuranceCompanyLimited15.TheOrientalInsuranceCompanyLimited16.UnitedInsuranceCompanyLimited17.PunjabNationalBank18.OrientalBankofCommerce19.CorporationBank20.IndianBank21.UnionBankofIndia

RECOMMENDATIONCONCLUSION1. Thinks have changed for the better with the sharekhan going on-line coupled with endeavour to stream line whole trading system, things have changed dramatically over the last 3 to 4 years . New and advanced technologies have breached geographical and cultural barriers, and have brought the countrywide market to doorstep.2. In the present scenario to compete with the Brokers would require sound infrastructure and trading as per international standards.3. The introduction of on-line trading would influence the investors resulting in an increase in the business of the exchange. It has helped the brokers handing a vast amount of transactions and this can be an efficient trading, delivering, settlement system with adequate protection to investors. The trading of sharekhan of the first day was Rs. 1.8 crores.4. 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.5. The brokers has a greater scope than compared to the earlier times because of invention of online trading.6. The concept of business has changed today, this is a service oriented industry hence the survival would require them to provide the best possible service to the clients.7. I recommend the exchange authorities to take steps to educate investors about their right and duties. I suggest to the exchange authorities to increase the investors confidences.8. I recommend the exchange authorities to be vigilant to curb wide fluctuations of prices.9. The speculative pressures are responsible for the wide changes in the price not attracting the genuine investors to the greater extent towards the market.10. Genuine investors are not at all interested in the speculative gain as their investment is based on the future profits, therefore the authorities of the exchange should be more vigilant to curb the speculation11. Necessary steps should be taken by the exchange to deal with the situations arising due to break down in online trading.

OBJECTIVES : Internet trading is expected to1. Increase transparency in the markets.2. Enhance market quality through improved liquidity, by increasing quote continuity and market depth.3. Reduce settlement risks due to open trades, by elimination of mismatches.4. Provide management information system.5. Introduce flexibility in system, so as to handle growing volumes easily and to support nationwide expansion of market activity.6. The objective of the study is to analyze the possibility of taking advantage of arbitrage mechanism of the blue chip scrips of core sectors of Indian economy, traded in NSE and BSE.7. Ten blue chip scrip of five core sectors are studied for evaluation.8. The share prices of these scrips are being taken for analysis for the period of two months, October 2007 and November 2007.9. Closing prices of each share in the two exchange are taken for analysis.10. The difference in the prices is analyzed for any scope of arbitration.Besides, through internet trading three fundamental objective of securities regulation can be easily achieved, these are:a. Investor protectionb. Creation of a fair and efficient market andc. Reduction of the systematic risksSome of the brokers offering net trading include ICICI direct, kotakstreet, etc.

BIBLIOGRAPHY

BOOKS:

INVESTMENT MANAGEMENT V.K. BHALLA INVESTMENT MANAGEMENT RREETHI SINGH MARKETING OF FINANCIAL SERVICES V.A. AVADHANI INDIAN FINANCIAL SYSTEM M.Y.KHAN FINANCIAL MANAGEMENT PRASANNA CHANDRA SECURITY ANALYSIS & PORTFOLIO MANAGEMENT FISHERE & JORDON

WEBSITES:

1. WWW.SEBI.GOV.IN

2. WWW.BSEINDIA.COM

3. WWW.NSEINDIA.COM

4. WWW.INDIABUDGET.NIC.IN

5. WWW.ANGELTRADE.COM

6. WWW.LSE.CO.IN

THANKU