A Study On Customer Perception Towards Online Trading in Retail Brokerage

Summer Internship Project Report
On
“A STUDY ON CUSTOMER PERCEPTION TOWARDS ONLINE TRADING
IN RETAIL BROKERAGE”
At
Concept Securities Pvt Ltd.
Submitted to
Institute Code: 750
S.R. LUTHRA INSTITUTE OF MANAGEMENT
Under the Guidance of

Ms. Esha Pandya
Asst. Professor
In partial Fulfilment of the Requirement of the award of the degree of
Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad
Prepared by:
Mr. Sahil. S. Gheewala
MBA (Semester - III)
July, 2018
1
Student’s Declaration
2
Institute Certificate
3
Company’s Certificate
4
Plagiarism Report
5
6
PREFACE
As we know that in today’s competitive global area only theoretical knowledge can’t
work anymore. Today in every sector, research is needed to understand the on-going
scenario, changing situation and to go to the depth of the problems so that adequate
knowledge about that area can be developed. Research work is finding the new ways
of adding value to that area and giving contribution to that particular area. Further
research work enhances depth knowledge of particular area and also helps to society
at large. The main focus and study was on CUSTOMER PERCEPTION TOWARDS
ONLINE TRADING IN RETAIL BROKERAGE at Concept Securities Pvt. Ltd in
Surat City. I have put up my best efforts and enumerated every possible information
after observing the activities carried over at Concept Securities, to make this report a
satisfactory report. It was a great opportunity and memorable experience interacting
with people working there, collecting information regarding their job and acquiring
knowledge. The respondents who provided their suggestions were quite cooperative
and provided valuable insights for this study.
7
ACKNOWLEDGEMENT
It gives me immense pleasure to acknowledge the valuable assistance and co-

operation I received from the people around me for the successful completion of my
project. I am thankful to Gujarat Technological University who gave me chance to
undertake this research as part of my curriculum of Master degree in Business
Administration.
I am also thankful to S.R. Luthra Institute of Management to give me this opportunity.

I deeply acknowledge support of our respected Director Dr. Jimmy Kapadia. I would
like to thank Ms. Esha Pandya, Asst. Professor, SRLIM who helped and guided me
throughout the development of the project. Her support and full-fledged guidance,
encouragement, and valuable suggestion were instrumental in making this project.
For completion of project, I would like to express my gratitude to Concept Securities

Pvt Ltd for giving me the opportunity to work. I earnestly express my gratitude to Mr.
Siddharth Mandlewala (Fund Manager) and other staff members of as they have
helped me in completion of my project by giving their precious time and information
about their organization. I am highly indebted for their guidance and consultant
supervision as well as for providing necessary information regarding the project and
also for their support in completing the project.
Finally I would like to thank all my respondents for their time and cooperation.
8
TABLE OF CONTENTS
i. Student Declaration
ii. Institute Certificate
iii. Company Certificate
iv. Preface
v. Acknowledgement
Sr. No. Particulars Pg. No.

1 Introduction 12
2 Industry Profile 22
A. Global 23
B. National 27
C. Current trends 31
D. PEST Analysis 37
E. Major Players 43
3 Company Profile (Concept Securities) 46
A. Company overview 47
B. Organogram 49
C. SWOT Analysis 51
D. Market position 52
4 Literature Review 53
5 Research Methodology 59
A. Research Problem 60
B. Research Objective 60
C. Research Design 60
6 Data Analysis and Interpretation 63
7 Findings 119
Conclusion 124
8 Recommendation 125
9
Bibliography 127
Annexure 129
LIST OF TABLES
Table
Pg. No.
Sr. No. Particulars No.
1 Major players 2.6 43
2 Gender 6.1 64
3 Age 6.2 65
4 Occupation 6.3 66
5 Education 6.4 67
6 Income 6.5 68
7 Preferred type of investment 6.6 69
8 Lack of security 6.7.1 70
9 Lack of Knowledge 6.7.2 71
10 Lack of trust 6.7.3 72
If you’re using offline trading, in future would
6.8 73
11 you like to switch to online platform?
For how many years you are doing the Online
6.9 74
12 Share trading?
13 Privacy 6.10.1 75
14 Friendly & Time Saving 6.10.2 76
15 Convenience 6.10.3 77
16 Quick order execution 6.10.4 78
How did you come to know about online share
trading? 6.11 79
17
18 From where do you prefer to trade? 6.12 80
19 How often do you trade? 6.13 81
Which Brokerage Firm do you prefer for Online
6.14 82
20 Trading?
10
Are you satisfied about the online services of
6.15 83
21 your existing brokers?
22 It eliminates middleman 6.16.1 84
23 It’s cheaper 6.16.2 85
24 It offers greater investor control 6.16.3 86
25 You can monitor your investments in real time 6.15.4 87
26 Buying error due to computer missteps 6.17.1 88
27 Internet dependent 6.17.2 89
28 No personal relationship with brokers 6.17.3 90
29 Hacking of data 6.17.4 91
30 Online trading is easy to use 6.18 92
31 There are security issues in online trading 6.19 93
Online trading is efficient as compared to
6.20 94
32 offline trading
Online trading gives me greater control over
6.21 95
33 offline trading
Is there any change in investment proportion
6.22 96
34 after changing from offline to online trading?
LIST OF FIGURES
Sr. No. Particulars Pg. No.

1 Range of services 48
2 Organogram 49
11
CHAPTER 1
INTRODUCTION OF THE TOPIC
12
A STUDY ON INVESTOR’S PERCEPTION TOWARDS ONLINE TRADING
 INVESTOR
An investor is who makes an investment into one or more categories of assets-equity,
debt securities, real estate, currency, commodity, derivatives such as put and call
options, etc. with the objective of making a profit.
 INVESTMENT
An asset or an item that is purchased with the hope that it will generate income or
appreciate in the future is called an investment. In an economic sense, an investment
is the purchase of goods that are not consumed today but are used in the future to
create wealth.
 ONLINE TRADING
Before getting in to the online trading we should know some things about the internet,
e-commerce and etc.
1) What is Internet?
Internet is a worldwide, self-governed network connecting several other smaller

networks and millions of computers and persons, to mega sources of information.
This technology shrinks vast distances, accelerating the pace of business reforms and
revolutionizing the way companies are managed. It allows direct, ubiquitous links to
anyone 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 spanning the entire globe, crossing all geographical
boundaries. It has re-defined the methods of communication, work study, education,
business, leisure, health, trade, banking, commerce and what not it is virtually
changing everything and we are living in dot.com age. Net being an interactive two
way medium, through various websites, enables participation by individuals in
business to business and business to consumer commerce, visit to shopping arcades,
games, etc. in cyber space even the information can be copied, downloaded and
retransmitted.
13
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.
2. 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.
PC’s and networking attempts to introduce banks of the tools and technologies
required for electronic commerce. The computers are either workstations of individual
office works or serves 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 manages the resources of the computer system in
a fair and efficient manner.
Now we can enter in to the concept known as online trading.
In the past, investors had no option but to contact their broker to get real time access
to market data. The net brings data to the investor on-line and net broking enables him
to trade on a click of mouse. Now information has become easily accessible to both
retail as well as big investor.
 ONLINE TRADING
Online stock trading is models where you can enter your trades directly into your
broker's system and let their computers buy and sell for you. There may not be
14
another human involved. Log on to your broker's web site or use their mobile app and
you're off and running.
 OFFLINE TRADING
Offline is when you place your trades either by calling the broker office or by
personal visit to the office. It is simple. You decide to trade and tell the people
handling trading there about your trade orders.
 EVOLUTION OF BROKING IN INDIA:

The evolution of a broking in India can be categorized in three phases -
• Stockbrokers will offer on their sites features such as live portfolio

manager, live quotes, market research and news, etc. to attract more
investors.
• Brokers will offer online 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.
• 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 form (fax).” In online trading, you will access a
stockbroker’s website through your internet enabled PC and place orders through the
broker’s 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.
15
 In India
Internet trading started in India on 1st April 2000 with 79 members seeking permission
for online trading. The SEBI committees on internet based securities trading services
has allowed the net to be used as an Order Routing System (ORS) through registered
stock brokers on behalf of their clients for execution of transaction. Under the ORS
the client enters his requirements (security, quantity, price buy/sell) on broker’s site.
 Objectives
Internet trading is expected to
• Increase transparency in the markets.
• Enhance market quality through improved liquidity, by increasing quote

continuity and market depth.
• Reduce settlement risks due to open trades, by elimination of mismatches.
• Provide management information system.
• Introduce flexibility in system, so as to handle growing volumes easily and

to support nationwide expansion of market activity.
Besides, through internet trading three fundamental objectives of securities

regulation can be easily achieved, these are:
• Investor protection.
• Creation of a fair and efficient market, and Reduction of the systematic

risks.
Some of the brokers offering net trading include ICICI direct, Kotak Street, etc.
The net is used as a medium of trading in internet trading. Orders are communicated
to the stock exchange through website. Internet trading started in India on 1st April
2000 with 79 members seeking permission for online trading. The SEBI committees
on internet based securities trading services has allowed the net to be used as an Order
Routing System (ORS) through registered stock brokers on behalf of their clients for
execution of transaction.
16
Under the Order Routing System the client enters his requirements (security, quantity,
price, and buy/sell) in broker's site. They are checked electronically against the clients
account and routed electronically to the appropriate exchange for execution by the
broker. The client receives a confirmation on execution of the order. The customer's
portfolio and ledger accounts get updated to reflect the transaction. The user should
have the user id and password to enter into the electronic ring. He should also have
demat account and bank account. The system permits only a registered client to log in
using user id and password. Order can be placed using place order window of the
website.
 Procedure for net trading
Step 1: Those investors, who are interested in doing the trading over internet
system i.e. NEAT-IXS, should approach the brokers and get them self registered
with the Stock Broker.
Step 2: After registration, the broker will provide to them a Login name,
Password and personal identification number (PIN).
Step 3: Actual placement of an order. An order can then be placed by using the
place order window as under:
(a) First by entering the symbol and series of stock and other parameters like
quantity and price of the scrip on the place order window.
(b) Second, fill in the symbol, series and the default quantity.
Step 4: It is the process of review. Thus, the investor has to review the order
placed by clicking the review option. He may also re-set to clear the values.
Step 5: After the review has been satisfactory, the order has to be sent by clicking
on the send option.
Step 6: The investor will receive an "Order Confirmation" message along with the
order number and the value of the order.
Step 7: In case the order is rejected by the Broker or the Stock Exchange for
certain reasons such as invalid price limit, an appropriate message will appear at
17
the bottom of the screen. At present, a time lag of about 10 seconds is there in
executing the trade.
Step 8: It is regarding charging payment, for which there are different mode.
Some brokers will take some advance payment from the investor and will fix their
trading limits. When the trade is executed, the broker will ask the investor for
transfer of funds to his account.
Internet trading provides total transparency between a broker and an investor in

the secondary market. In the open outcry system, only the broker knew the
actually transacted price. Screen based trading provides more transparency. With
online trading investors can see themselves the price at which the deal takes place.
The time gap has narrowed in every stage of operation. Confirmation and
execution of trade reaches the investor within the least possible time, mostly
within 30 seconds. Instant feedback is available about the execution. Some of the
websites also offer:
 News and research report

 BSE and NSE movements
 Stock analysis
 IPO and mutual fund centers
Step by step procedure in online trading:
Following steps explain the step by step approach to on-line trading:
1) Log on to the stock broker's website.
2) Register as client/investor.
3) Fill the application form and client broker agreement form on the requisite
value stamp paper.
4) Obtain user ID and pass word.
5) Log on to the broker's site using secure user ID and password.
6) Market watch page will show real time on-line market data.
7) Trade shares directly by entering the symbol or number of the security.
18
8) Broker’s server will check your limit in the on-line account and Demat
account for the number of shares and execute the trade.
9) Order is executed instantly (10-30 seconds) and confirmation can be

obtained.
10) Confirmation is e-mailed to investor by broker.
11) Contract note is printed and mailed in 24 hours.
12) Settlement will take place automatically on the settlement day.
13) Demat account and the bank account will get debited and credited by
electronic means.
 ONLINE TRADING HAS LED TO ADDITIONAL FEATURES SUCH

AS:
1) Limit / stop orders: orders that can be go unfilled, but there is an extra Charge
for this leeway facility since one need to hold a price.
2) Market orders: orders can be filled at unexpected prices, but this type is much
more risky, since you have to buy stock at the given price.
3) Cash account: where funds have to be available prior to placing the order.
4) Margin account: where orders can be placed against stocks, to increase

Purchasing power.
 ADVANTAGES OF ONLINE TRADING:
1) Online trading has made it possible for anyone to have easy and efficient
access to more reports and charts than it was previously possible if one went to
any brokers' office. Thus we have access to a lot more information online.
2) Online trading has let room for smaller organizations to compete with
multinational organizations since it is no longer a leg it issue. Being online
does not identify the size of any particular organization, therefore, this
additional power to the underdogs.
3) Online trading has allowed companies to locate themselves where they want as
physical location is not an issue anymore. Companies can establish themselves
19
according to their gains and losses, for instance where tax (sales and value
added taxes) is best suited to them.
4) Online trading gives control to individuals and they can exercise it over
accounts thus comprehend what is going on when they trade. It is like going
back to school and re-educating oneself on how to trade online.
5) Individuals’ benefit by saving comparatively a lot more when trading online as

the cost per trade is less.
6) Individuals can invest in a variety of products, unlike earlier when people

bought bonds, mutual funds, and stock for long-term basis and sat on them.
Now they can invest in stocks, stock and index options mutual funds,
government, and even insurance.
 HERE ARE THE POSSIBLE DISADVANTAGES
1) When network crashes, there will be problems and delays due to a large influx
of rapid online trading criteria.
2) Individuals are restricted to first-hand financial guidance. This simply means

that the individual is himself / herself alone to.
3) A tax (Goods and services tax) evaluation becomes an issue, especially when
you are trading internationally.
4) One has no idea with whom he is dealing with on the other end.
5) According to a study conducted by Mary Rowland, careful investor: is online

trading bad for your portfolio, the more one trades the less returns one gets,
meaning that an addicted trader gets, carried away online and begins to trade
for too much which causes losses for him / her.
6) Individuals think that they are trading with the market directly and know what
they are doing, but the truth is that even though technology has taken over, the
basic rules of trading are the same. It seems that the middleman has been
removed, but that is not so. When the individuals click on the mouse, his trade
goes through a broker. The commissions online pertain to the intermediary.
20
7) There is a need for more effective communication links over the Internet and
the ability of the server to deal with a large volume of visitors.
 TRADING SESSION
 Trading timings are from 9:55 A.M. to 3:30 P.M. on all 5 days of the
trading period.
 Monday to Friday is the trading period in all the stock exchanges. SEBI
has stipulated that all the stock exchanges in India must have same trading
period.
 Major Players in Online Trading Brokerage Houses in India
1) ICICI Securities Ltd.

2) Kotak Securities Ltd.
3) India bulls Financial Services Limited
4) India Infoline
5) IL&FS investmart Limited
6) SSKI Ltd
21
CHAPTER 2
INDUSTRY PROFILE
22
2.1 GLOBAL SCENARIO
In 2018, steadily rising assets and diminishing volatility have become the normal,
global growth remains strong, and optimism prevails across asset classes. Yet now
isn’t the time for complacency.
Between politics and popular trades losing luster, there are boundless risks to keeps
investors on their toes.
Cooling Credit Rally
Sure, cries of a junk bond Armageddon have proved premature, with both high-yield
and investment-grade bonds handing investors returns for the year, but plenty of risks
threaten the upside in 2018. The Federal Reserve is unwinding its balance sheet, the
European Central Bank is slowing purchases and forecasts show inflation may finally
rise.
Credit investors polled by Bank of America Merrill Lynch for a survey published in
December named a bubble as the biggest risk to the asset class, followed by higher
inflation and rising yields. Flows reflect some of that unease. Investors pulled money
out of exchange-traded funds that track corporate credit for the first time in 14 months
in December, data compiled by Bloomberg show.
Ageing Business Cycle
If the U.S. economy can keep chugging along through the first quarter of 2018, it will
match the second-longest expansionary period in modern history, according to data
compiled by the National Bureau of Economic Research and Bloomberg Intelligence.
That’s helping to lift global economies, spurring optimism across markets. The Citi
group economic surprise index of major economies hovers just under its highest level
since 2010 after a slew of data surpassed analyst expectations.
In the year ahead, investors will have to assess the sustainability of the cycle amid
risks of financial overheating and corporate America’s levered balance sheets.
23
Mind the Elections
Rising global growth, the Fed’s cautious approach to monetary tightening and a
weaker dollar helped emerging-market currencies and stocks post their biggest returns
in eight years in 2017. But it might not take much to knock that equilibrium,
especially with Wall Street forecasting the biggest tightening of developed-world
monetary policy in a decade.
Investors will also have to maneuver around elections in countries that make up more
than 50 percent of a Bloomberg Barclays developing-nation local bond index. While
votes in countries like Russia are predictable, tight contests are on the cards for fellow
market heavyweights like Brazil and Mexico.
Euro Rally Lives
As the euro heads toward its best annual run against the dollar in 14 years, options
markets that price probabilities on the world’s most traded currency pair point to the
rally continuing in 2018. There’s a two-thirds probability that it appreciates as high as
$1.229 by year end, while the odds that it rises to $1.256 are even.
‘Normal’ Swaps
One of the stranger distortions created by post-crisis regulation may be poised to end.
Swap rates, what companies pay to exchange their fixed interest payments for floating
ones, are on track to rise back above Treasury yields across all maturities for the first
time since 2014.
Strategists predict Republicans’ plans to roll back post-crisis regulatory burdens will
make holding Treasuries more attractive, thus pushing yields below swap rates again.
The shift matters because swap rates serve as a benchmark for a variety of debt
instruments purchased with borrowed funds, including mortgage-backed and auto-
loan securities.
Volatility Return
In 2017, investors were caught off guard by the near-complete absence of volatility.
In 2018 they could get a wakeup call from price fluctuations roaring back to life.
24
Over $2 trillion in strategies are effectively reliant on market stability to generate
returns, according to October estimates from Artemis Capital’s Christopher Cole.
That raises the risk of outsize losses across stock and bond markets around the world
if volatility finally returns.
Fed Fresh Faces
Jerome Powell won’t be the only new kid in class at the U.S. central bank next year.
The “Big Three” (chair, vice chair and New York Fed president) will be completely
different after Janet Yellen’s stint in charge ends in February and the head of the New
York Fed retires in the middle of the year.
They’ll have to weigh a tight labor market and sound economic data against muted
consumer prices. How will they react if inflation roars back to life? And what if it
remains stubbornly weak?
Yield Curve
The narrowing spread between short- and long-dated Treasuries continues to grab
Wall Street’s attention. A completely flat or inverted curve has the potential to roil
bond trades, challenge the Fed’s tightening path, and raises the risk of a downturn in
the business cycle.
Six of 11 analysts surveyed by Bloomberg in early December said the Treasury yield
curve will inverse at least briefly within the next 24 months, with four projecting it in
2018.
Don’t Forget China
Two of the more remarkable moves in 2017 were soaring U.S. stocks and tumbling
Chinese government bonds, according to a global analysis of historical price patterns
that veer from the norm, known as standard deviations. While the S&P 500’s
valuation is endlessly analyzed, the outlook for the world’s largest emerging debt
market is far less understood.
Chinese bonds will come under pressure again in the first half of 2018 as the central
bank tightens monetary policy and the government toughens financial regulations,
25
according to Becky Liu, head of China macro strategy at Standard Chartered Plc. The
rise in yields will attract domestic and foreign investors in the second half.
Crypto Craze
How long can bitcoin’s parabolic increase last? It depends who you ask. Hedge fund
manager Michael Novogratz thinks it will go all the way to $40,000 by the end of the
first quarter. Bulls say the recent creation of futures will broaden crypto ownership
because derivatives are the first step toward ETFs and other more liquid instruments.
The skeptics, however points to a possible pin-prick by regulators. Crypto currencies

“could be stopped in their tracks” if authorities began applying anti-money laundering
laws, said Marc Ostwald, global strategist at ADM Investor Services International in
London.
26
2.2 NATIONAL SCENARIO
 HISTORY OF THE STOCK BROKING INDUSTRY
Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200
years ago.
By 1830's business on corporate stocks and shares in Bank and Cotton presses took
place in Bombay. Though the trading list was broader in 1839, there were only half a
dozen brokers recognized by banks and merchants during 1840 and 1850. The 1850's
witnessed a rapid development of commercial enterprise and brokerage business
attracted many men into the field and by 1860 the number of brokers increased into
60.
In 1860-61 the American Civil War broke out and cotton supply from United States of
Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers
increased to about 200 to 250. However, at the end of the American Civil War, in
1865, a disastrous slump began (for example, Bank of Bombay Share which had
touched Rs 2850 could only be sold at Rs. 87). At the end of the American Civil War,
the brokers who thrived out of Civil War in 1874, found a place in a street (now
appropriately called as Dalal Street) where they would conveniently assemble and
transact business.
In 1887, they formally established in Bombay, the "Native Share and Stock Brokers'
Association" (which is alternatively known as "The Stock Exchange"). In 1895, the
Stock Exchange acquired a premise in the same street and it was inaugurated in 1899.
Thus, the Stock Exchange at Bombay was consolidated.
Thus in the same way, gradually with the passage of time number of exchanges were
increased and at currently it reached to the figure of 24 stock exchanges.
 Capital market
Capital market is a place where we can raise long-term capital. Again the capital
market is classified in to two types and they are:
 Primary market and Secondary market.
27
 E.g.: Shares, Debentures, and Loans etc.
 Primary market
Primary market is generally referred to the market of new issues or market for
mobilization of resources by the companies and government undertakings, for new
projects as also for expansion, modernization, addition, and diversification and up
gradation. Primary market is also referred to as New Issue Market. Primary market
operations include new issues of shares by new and existing companies, further and
right issues to existing shareholders, public offers, and issue of debt instruments such
as debentures, bonds, etc.
The primary market is regulated by the Securities and Exchange Board of India (SEBI
a government regulated authority).
 Secondary Market
The primary market deals with the new issues of securities. Outstanding securities are
traded in the secondary market, which is commonly known as stock market or stock
exchange. “The secondary market is a market where scrip’s are traded”. It is a market
place which provides liquidity to the scrip’s issued in the primary market. Thus, the
growth of secondary market depends on the primary market. More the number of
companies entering the primary market, the greater are the volume of trade at the
secondary market. Trading activities in the secondary market are done through the
recognized stock exchanges which are 23 in number including Over the Counter
Exchange of India (OTCE), National Stock Exchange of India and Interconnected
Stock Exchange of India.
Secondary market operations involve buying and selling of securities on the stock
exchange through its members. The companies hitting the primary market are
mandatory to list their shares on one or more stock exchanges in India. Listing of
scrip’s provides liquidity and offers an opportunity to the investors to buy or sell the
scrip’s.
28
Out of these major stock exchanges were
 NSE (National Stock Exchange)

 BSE(Bombay Stock Exchange)
BSE (BOMBAY STOCK EXCHANGE)
The Stock Exchange, Mumbai, popularly known as "BSE" was established in 1875
as "The Native Share and Stock Brokers Association". It is the oldest one in Asia,
even older than the Tokyo Stock Exchange, which was established in 1878. It is a
voluntary non-profit making Association of Persons (AOP) and is currently engaged
in the process of converting itself into demutualised and corporate entity. It has
evolved over the years into its present status as the premier Stock Exchange in the
country. It is the first Stock Exchange in the Country to have obtained permanent
recognition in 1956 from the Govt. of India under the Securities Contracts
(Regulation) Act, 1956.
The Exchange, while providing an efficient and transparent market for trading in
securities, debt and derivatives upholds the interests of the investors and ensures of
their grievances whether against the companies or its own member-brokers. It also
strives to educate and enlighten the investors by conducting investor education
program and making available to them necessary informative inputs.
A Governing Board having 20 directors is the apex body, which decides the policies
and regulates the affairs of the Exchange. The Governing Board consists of 9 elected
directors, who are from the broking community (one third of them retire ever year by
rotation), three SEBI nominees, six public representatives and an Executive Director
& Chief Executive Officer and a Chief Operating Officer.
29
NSE (NATIONAL STOCK EXCHANGE)
NSE was incorporated in 1992 and was given recognition as a stock exchange in April
1993. It started operations in June 1994, with trading on the Wholesale Debt Market
Segment. Subsequently it launched the Capital Market Segment in November 1994 as
a trading platform for equities and the Futures and Options Segment in June 2000 for
various derivative instruments.
NSE has been able to take the stock market to the doorsteps of the investors. The
technology has been harnessed to deliver the services to the investors across the
country at the cheapest possible cost. It provides a nation-wide, screen-based,
automated trading system, with a high degree of transparency and equal access to
investors irrespective of geographical location. The high level of information
dissemination through on-line system has helped in integrating retail investors on a
nation-wide basis. The standards set by the exchange in terms of market practices,
Products, technology and service standards have become industry benchmarks and are
being replicated by other market participants. Within a very short span of time, NSE
has been able to achieve all the objectives for which it was set up. It has been playing
a leading role as a change agent in transforming the Indian Capital Markets to its
present form. The Indian Capital Markets are a far cry from what they used to be a
decade ago in terms of market practices, infrastructure, technology, risk management,
clearing and settlement and investor service.
30
Current position of Indian Stock Market
 The domestic capital markets revived in FY2017, after a year of lackluster

performance, supported by market sentiment, healthy foreign institutional
investment (FII) inflow, as well as growing domestic institutional investor
(DII) participation in the market.
 Equity turnover at the exchanges registered a robust growth of 35% in FY2017
supported by the revival in the capital markets and the base effect given the
subdued performance in FY2016, which was a period of de-growth. The
Average Daily Turnover (ADTO) increased to Rs. 4.05 trillion in FY2017,
from Rs. 3.01 trillion in FY2016. The impact of demonetization remained
limited, with the growth in the market turnover slowing down in Q3 FY2017,
to again pickup in the following quarter.
 Both the decline in market volumes in FY2016 as well as their improvement
in FY2017 was led by the derivatives or the futures and options (F&O)
segment which witnessed a 9% decline and a 36% growth in the two years
respectively. The share of the derivative segment in the total market turnover
increased further to 94%, from 93% during the period FY2013 to FY2016.
The total turnover for the derivatives segment increased to Rs. 944 trillion in
FY2017 (ADTO of 3.81 trillion) from Rs 693 trillion (ADTO of 2.80 trillion)
in FY2016, registering a growth of 36%. The healthy traction continued in Q1
FY2018 with a total F&O turnover of Rs. 328 trillion.
 The options segment witnessed a growth of 38% in ADTO in FY2017,
surpassing the growth in both futures (24%) and cash (21%) segment, with the
markets adjusting to the higher lot size requirement for derivative trading. The
options growth rate remained healthy in Q1 FY2018, at 45% (over FY2017
level), as against 23% and 21% for futures and cash segment respectively.
 The options segment remains the most active in the derivatives market
accounting for 84% of derivative turnover in FY2017 (86% in Q1 FY 2018),
with index options accounting for 77% of the derivatives turnover (79% in Q1
FY2018).
 The total cash turnover in FY2017 stood at Rs. 60.54 trillion, registering a
growth of 22% over Rs. 49.71 trillion in FY2016. After a healthy start to the
fiscal, cash volumes dropped in Q3 FY2017 (turnover of 13 trillion in Q3
31
FY2017, 10% lower than Q2 FY2017) following the demonetization drive of
the Goal. However, volumes picked up in Q4 FY2017. The large scale intra-
promoter group transfer of equity shares across several listed entities in March
2017 pursuant to revision in the tax regime further fuelled the transaction
volumes.
 After a healthy performance in H1 FY2017, the commodities market
registered a downward slide post demonetization, with the effect most
pronounced in the bullion segment. The commodity markets registered a
turnover of Rs. 29.07 trillion (ADTO of Rs. 0.22 trillion) in H2 FY2017, as
compared to volume of Rs. 18.52 trillion (ADTO of Rs. 0.28 trillion) in
Q2FY2017. The turnover further reduced to Rs. 13.57 trillion (ADTO of Rs.
0.21 trillion) in Q1 FY2018. The strong performance of the equity markets
also resulted in a shift in investor preference towards equity and mutual funds
as compared to commodities as asset classes.
 Currency trading volumes of brokerage houses remained volatile in the past
nine quarters after growing sizably in Q4 FY2015. Currency volumes in Q4
FY2016 were 11% higher than the volumes in Q4 FY2015; however, in Q4
FY2017, the volumes declined by ~17% from the volumes in Q4 FY2016.
Due to demonetization, the volumes surged by 66% on a month-on-month
basis in November 2016. Appreciation of the Rupee during Q4 FY2017 did
not impact the volumes which declined to Rs. 19.4 trillion from Rs. 21.4
trillion in Q3 FY2017. ADTO, which spiked to Rs. 0.35 trillion during Q3
FY2016 largely on account of demonetization, declined to Rs. 0.32 trillion
during Q4 FY2017. During Q1 FY2018, volumes rebounded to Rs. 22.43
trillion with ADTO spiking to Rs. 0.37 trillion, which is higher than the
ADTO in the previous three quarters. INDIAN BROKERAGE INDUSTRY
September 2017 ICRA.
 Resource mobilization in equity markets, through a mix of channels like
public issuances (including IPO follow-on public offering or FPO, and rights
issues), qualified institutional placement (QIP) and preferential placement,
remained healthy in FY2017, with a total quantum of Rs. 887 billion raised
during the year from 561 offerings. The public issuances remain healthy, with
8% growth in the funds raised during FY2017, the aggregate amount raised
32
declined on account of dip in preferential placement and QIP which reported a
de-growth of 42%, albeit on a small scale, and 12% respectively. During
FY2017, Rs. 359 billion was raised through a mix of IPOs and rights issue
(Rs. 333 billion in FY2016). A key characteristic of the primary market was
the performance of the IPO issuances during the year with a gradual
diversification in the sector mix of entities accessing capital markets.
 Despite their increasing focus of the broader credit markets on consumer-
finance businesses, the capital market lending space (which is largely retail)
for ICRA sample of brokers picked up in FY2017, post a subdued
performance in the previous fiscal. With the recent change in SEBI guidelines
allowing brokers to offer margin funding facility with lower margins than
those mandated by RBI to NBFCs, ICRA expects margin funding book to
further increase during FY2018.
 Buoyed by the healthy response to the IPOs, there has been a surge in interest
in IPOs to capitalize on the listing gains. This is evidenced by the high
participation of the non-institutional investor (NII) category; The median
subscription level for the NII category stood at 83 times for the IPOs in
FY2017, as against 2 times for FY2016. This in turn has created a market for
providing funding to the HNI investors for investing in the IPOs. Pegged at
Rs. 600 to Rs. 650 billion, the IPO funding market is expected to remain
active in the current fiscal as well with a number of prominent IPOs lined up.
 With a large number of clients opting to conduct transactions online, the
relevance of brick and mortar stores has partly reduced. Furthermore, ever
since their emergence in the Indian brokerage landscape, discount brokerage
houses (DBH) have forced the older players to re-think the mechanics of their
existing models repeatedly. Most industry players have consolidated their
networks and prefer to have fewer branches per city. There nevertheless
remain a large number of customer interactions through branches, and the
branches also impart a level of psychological comfort to customers.
 ICRA expects the broking industry revenue pool to increase to Rs. 180 billion
to Rs. 190 billion in FY2018, registering a 15-20% y-o-y growth on the back
of healthy volume growth coupled with rise in cash volumes. The volume
growth is expected to be about 20-25% in FY2018, supported by positive
33
investor sentiment and a benign capital market outlook. The IPO pipeline for
FY2018 is expected to encourage retail participation and activity levels on the
exchanges. Growing retail segment would lend support to the overall blended
yields in light of competitive pressure.
 The recent margin trading guidelines by SEBI is expected to have an
encouraging effect on cash volumes. Given the higher yields in the cash
segment, this would augur well for the brokerage houses. Margin trading
would also help support the income profile and shore up the profitability of
full-service brokerage houses given the price based competition from discount
brokerage houses. While the brokerage houses were allowed to offer margin
trading earlier as well, the strict guidelines made the product uncompetitive as
compared to the facilities offered by NBFCs. Margin funding, thus, was
conducted out of the NBFC arms of the brokerage houses. The revised
guidelines make margin funding a viable product for brokerage houses.
 Supported by the resurgence in capital markets, the total revenues for the
sample pool of brokerage houses analyzed by ICRA (referred to as ICRA
pool) reported a healthy growth of 22% in FY2017. While the revenue stream
continues to be dominated by brokerage revenues, attributing to 87% of total
revenues, the depository income and distribution income reported a healthy
growth in FY2017. With brokers increasingly favoring expansion through
franchisees rather than branches, cost structure and operational efficiencies
have improved which is likely to protect brokerage houses during challenging
times. Accordingly the net profit of the ICRA pool of brokerage houses has
reported a 56% growth in FY2017 to Rs 10 billion.
34
2.3 STATE SCENARIO
POST-INDEPENDENCE SCENARIO
The depression witnessed after the Independence led to closure of a lot of exchanges
in the country. Lahore stock exchange was closed down after the partition of India,
and later on merged with the Delhi Stock Exchange. Bangalore Stock Exchange
Limited Was registered in 1957 and got recognition only by 1963. Most of the other
Exchanges were in a miserable state till 1957 when they applied for recognition under
securities contracts (Regulations) Act, 1956. The Exchanges that were recognized
under the Act were:
 Bombay
 Calcutta
 Madras
 Ahmedabad
 Delhi
 Hyderabad
 Bangalore
 Indore
Many more stock exchanges were established during 1980’s namely:
 Cochin stock exchange (1980)

 Uttar Pradesh stock exchange association limited (at Kanpur, 1982)
 Pune stock exchange limited (1982)
 Ludhiana stock exchange association limited (1983)
 Gauhati stock exchange limited (1984)
 Magadh stock exchange association (at Patna 1986)
 Jaipur stock exchange limited (1989)
 Kanara stock exchange limited (at Bangalore 1985)
 Bhubaneswar stock exchange association limited (1989)
 Saurashtrakutch stock exchange limited (at Rajkot, 1989)
 Vadodara stock exchange limited (at barida, 1990)
35
 Coimbatore stock exchange
 Meerut stock exchange
 Ahmadabad Stock Exchange
 Calcutta Stock Exchange
Prime Minister Narendra Modi inaugurated an international exchange in Gujarat that

will work 22 hours every day "starting when Japan's markets open and ending when
US markets close." It aims to win market share from financial hubs such as Singapore
and Hong Kong by investing in technology and offering a response time of four
microseconds.
The India International Exchange is located in a 16-floor building in a new finance
zone, the Gujarat International Finance Tec-City or GIFT city, near capital
Gandhinagar. It is a wholly-owned subsidiary of the Bombay Stock Exchange or BSE.
The BSE's main rival, the National Stock Exchange, is also expected to set up a
bourse in Gujarat.
36
2.4 PESTEL OF SHARE MARKET
PESTEL analysis stands for "Political, Economic, Social, Technological,
Environmental and Legal analysis" and describes a framework of macro-
environmental factors used in the environmental scanning component of strategic
management. It is a part of the external analysis when conducting a strategic
analysis or doing market research, and gives an overview of the different macro
environmental factors that the company has to take into consideration. It is a
useful strategic tool for understanding market growth or decline, business
position, potential and direction for operations.
FIGURE1.1 PESTEL analysis
37
1. POLITICAL:
The Capital market of India is very vulnerable. India has been politically instable
in the past but it is a little politically stable now-a-days.the political instability of
the country has a very strong impact on the capital market. The share market of
India changes as the political changes took place. The BSE Index, SENSEX goes
up and down with any kind of small and big political news, like, if there is news
that a particular political party has withdrawn its support from the ruling party,
and then the capital market will go down with a bang. The capital market of India
is too weak and is based on speculations. The political stability of the country is
very important for the stability and growth of capital market in India. The political
imbalance or balance of the country is the major factor in deciding the capital
market of India. The political factors include:
 Employment laws
 Tax policy
 Trade restrictions and tariffs
 Political stability
2. ECONOMICAL:
The economic measures taken by the government of India has a very strong
relationship with the capital market. Whenever the annual budget is announced the
capital market goes up and down with the economic policies of the government .If
the policies are supportive to the companies then the capital market takes it
positively and if there is any other policy that is not supportive and it is not
welcomed then the capital market goes down. Like, in the case of allocation of 3-
G spectrum, those companies that got the license for 3-G, they witnessed sharp
growth in their share values so the economic policies play a major part in the
growth and decline of the capital market and again if there is relaxation on any
38
kind of taxes on items of automobile industry then the share of automobile sector
goes up and virtually strengthen the capital market .The economic factors include:
 Inflation rate
 Economic growth
 Exchange rates
 Interest rates
3. SOCIAL:
India is a country of unity in diversity .India is socially rich but the capital market
is not very attached with the social factors .Yes, there is some relation between the
social factors with the capital market. If there is any big social factor then to some
extent it affects the capital market but small social factors don’t impact at all.
Like, there was opposition of reliance fresh in many cities and many stores were
closed. The share prices of the reliance fresh went down but the impact was on
and individual firm there was not much impact on the capital market on a whole
the social factors have not much of impact on the capital market in India
Changing Attitude towards investment, younger generation would like to invest
through online platform.
The social factors include:
 Emphasis on safety
 Population growth rate
 Age distribution
4. TECHNOLOGICAL:
The technological factors have not that much effect on the capital market. India is
technological backward country. Same as social factors, technological factor can
have an effect on an individual form but it cannot have a big impact on a whole of
39
capital market. The technological change in India is always on a lower basis and it
doesn’t effect on country as a whole. The technological factors include:
 R&D activity
 Technology incentives
 Rate of technological change
5. ENVIORNMENTAL FACTORS:
Initially, the environmental factors don’t play a vital role in the capital market but
the time has changed and people are more eco-friendly. This is really bothering
them that if any firm or industry is environment friendly or not. An increasing
number of people, investors and corporate executives are paying importance to
these facts; the capital markets still see the environment as a liability. They belie
that it is of no use for their strategy. The environmental performance is even
under-valued by the markets.
6. LEGAL FACTORS:
Legal factors play an important role in the development and sustain the capital
market. Legal issues relating to any industry or firm decides the fate of the capital
market. If the govt. of India or the parliament introduces a new law that can affect
the running of the industry then the industry will be de-motivated and this
demonization will lead to the demonization of the investors and will result in the
fall of capital market. Like after the Hardhat Mehta scam, new rules and
regulations were introduced like PAN card was made necessary for trading, if any
investor was investing too much money in a small firm, then the investors were
questioned etc. GST provisions are also included now.
40
2.5 CURRENT TRENDS OF STOCK BROKING INDUSTRY
 Technology
Recent advances in technologies such as block chain, cloud computing,

machine intelligence, behavioral science, and other areas provide us with the
opportunity to literally rewrite tomorrow and drive our industry forward in
entirely new ways. The environment in which we operate lends itself to these
priorities and can best be understood by examining four key trends:
 First is the development of the marketplace economy, an evolution in the

purchase and sale of non-financial assets using market mechanisms that allow
for real-time negotiation on price. These mechanisms represent the backbone
of our exchange business and their application outside of the capital markets is
very exciting.
 The second trend we see is investment banks demonstrating a real interest in

working with partners like Nasdaq to develop new technologies that can drive
their businesses into the future.
 Third, it is impossible to overlook the explosion in available data of all types,

which combined with advances in machine learning create myriad
opportunities in market surveillance, data analytics and in the capital markets
themselves.
 Finally, investment management has become increasingly competitive with a

strong focus on technology-powered areas including the shift to passive from
active investing and the growth of quantitative strategies. Here, again,
innovation is at a premium.
 Digitization of money could be the game-changer in 2018
Demonetization may have come and gone but the one trend it has irrevocably
triggered off in India is the shift to digital money. As Indian consumers discover the
comfort of digital money, it will open up a big opportunity for companies that focus
on the digitization process. This may include companies that are into the manufacture
of POS machines, companies that create software for digital transactions and
companies that enable the last mile connectivity for digital transactions. All these
41
companies could see a substantial expansion in demand and also in profits and could
be the key sector to watch out for. Also, banks and retail chains that adopt the shift to
digital money in a big way could be the indirect beneficiaries of this digitization
trend.
 Rural demand could be the silent story of 2018
Financial Budget 2018 will effectively be the penultimate full-fledged budget of this
government. The 2019 budget will, in all likelihood, be a vote-on-account considering
the impending central elections in 2019. The government will, therefore, leave no
stone unturned to placate the rural masses. One can expect loan concessions and loan
write-offs for farmers, higher levels of rural spending and investment in rural
infrastructure, expansion of welfare schemes like MNREGA etc. All these measures
will have a salutary impact on rural demand and rural purchasing power. Therefore,
manufacturers of tractors, farm equipment, two–wheelers and marketers of rural
FMCG products will be major beneficiaries of this enhanced rural spending. This will
be the third major trend to watch out for in this year.
42
2.6 MAJOR PLAYERS IN STOCK BROKING INDUSTRY:
NATIONAL PLAYERS REGIONAL PLAYERS
ANGEL BROKING R.WADIWALA SECURITIES
K.R. CHOCKSEY JAINAM
INDIA BULLS CONCEPT
INDIA INFOLINE MONARCH
RELIGARE SECURITIES RELIANCE MONEY
MOTILAL OSWAL SHAREKHAN
ANAND RATHI SECURITIES HDFC SECURITIES
KOTAK SECURITIES ICICI DIRECT
Table 2.6
43
2.7 MAJOR OFFERINGS:
 Equities
The securities market has two interdependent and inseparable segments, the new
issues (primary) market and the stock (secondary) market. The primary market
provides the channel for creation and sale of new securities, while the secondary
market deals in securities previously issued. The Stock market or Equities market
is where listed securities are traded in the secondary market. Currently more than
1300 securities are available for trading on the Exchange.
 Currency Derivatives
A currency future,also known as FX future,is a futures contract to exchange one

currency for another at a specified date in the future at a price (exchange rate) that
is fixed on the purchase date. On NSE the price of a future contract is in terms of
INR per unit of other currency e.g. US Dollars. Currency future contracts allow
investors to hedge against foreign exchange risk. Currency Derivatives are
available on four currency pairs viz. US Dollars (USD), Euro (EUR), Great
Britain Pound (GBP) and Japanese Yen (JPY). Currency options are currently
available on US Dollars.
 Security Lending and Borrowing Scheme (SLBS)
Short Selling means selling of a stock that the seller does not own at the time of
trade. Short selling can be done by borrowing the stock through Clearing
Corporation/Clearing House of a stock exchange which is registered as Approved
Intermediaries (AIs). Short selling can be done by retail as well as institutional
investors. The Securities Lending and Borrowing mechanism allows short sellers
to borrow securities for making delivery.
44
 Exchange Traded Funds (ETF's)
In recent times, Exchange-traded funds (ETFs) have gained a wider acceptance as

financial instruments whose unique advantages over mutual funds have caught the
eye of many an investor. These instruments are beneficial for Investors that find it
difficult to master the tricks of the trade of analyzing and picking stocks for their
portfolio.
45
CHAPTER 3
COMPANY PROFILE
46
3.1 Concept securities Pvt. Ltd. - An Overview
 On 23rd January 1995 Concept Securities Pvt. Ltd. was incorporated by
Mr.Hemant Desai.
 They are an investment services company.
 They offer the complete range of investment services covering Equity, Debt,
Mutual Fund, Portfolio Management, Equity Derivatives, Currency
Derivatives, Commodities Derivatives, Depository and Life Insurance.
 Mr. Shaival Desai: Mr. Shaival Desai is the executive director of the
companies.
THEY ARE MEMBER OF

 BSE,
 NSE,
 CDSL,
 MCX,
 SEBI approved PMS provider.
Vision
To meet needs have Indian and Foreign Individual as well as Institutional
Investors for their Investment in Indian Capital Market. Services for Investment
are provided with the High Degree of Client Orientation, Value Addition and
providing Real Good Returns on Investments.
Mission
 To build the finest investment services company with focus on becoming a
complete broking house, retail in western India, wealth management and
foreign investors.
 To build the finest wealth management team to manage funds in equities,
debt and other asset classes.
 To set up a round the clock service centre for NRI’s and Foreign Investors.
 To have presence at key financial centers in India and abroad.
47
Objective
 Value Creation is the new "Mantra" for investors.
 Their objective has been to focus on investors, understand their investment
needs, provide them relevant information, help them in taking decisions, and
assist in implementing that plan with an aim of "TOTAL CUSTOMER
SATISFACTION".
48
3.2 ORGANOGRAM
FUNCTIONS OF VARIOUS DEPARTMENTS
 Account opening department

 Opening demats account.
 Opening Trading account.
 Maintaining KYC.
 Maintaining stock of forms.
 Maintaining log of inflow & outflow of forms.
 Operations department
 Daily billing process.
 To send sms/Email.
 Exchange account matching.
49
 To much daily obligation with exchange.
 Issue quarterly statements.
 Customer Care department
 Query handling of clients.
 Give reports to clients.
 Accounts department
 Cash management.
 Maintaining Financial accounts.
 HR/compliance department
 New recruitments.
 Managing work force.
 Managing discipline & code of conduct.
 Employee Grievance Red Training programs.
 Managing statutory regulatory requirements from exchange.
 Performance management system.
 Surveillance /RMS department:
 Keeping an eye of client's trading activity.
 Maintaining client limits.
 System & Technical department:
 Maintaining back office soft wares.
 Designing & implementing new systems to smoothen systems.
 Backups.
 Demat/DP department:
 Managing deliveries.
 Physical Delivery maintenance.
 Transfer transmission.
 Dematerialization process of physical shares.
 Corporate action effect.
 Collateral/pledge maintenance.
 Marketing department
 Associating with sub-brokers.
 Setting up branches.
50
3.3 SWOT Analysis
A SWOT analysis focuses on the internal and external environments, examining

strengths and weaknesses in the internal environment and opportunities and threats in
the external environment.
 Strengths
1. Innovative range of financial products.
2. Known for transparent functioning.
3. Innovative I. T solutions for customers.
4. Emphasis on building stronger bond with customers.
5. Large number of services offered.
 Weaknesses
1. Less penetration in rural areas.
2. Lack of Branches.
3. Fees for the brokerage is high than the other company.

 Opportunities
1. High purchasing power and people looking to more investment opportunities.
2. Growing rural market.
3. Earning Urban Youth.
 Threats
1. Stringent Economic measures by Government and RBI.
2. Entry of foreign finance firms in Indian Market.
51
3.4 MARKET POSITION
Concept Securities Pvt Ltd is a Private incorporated on 23 January 1995. It is

classified as a Non-government company and is registered at Registrar of Companies,
Ahmedabad. It is one of the upcoming retail broking houses. In 23 years, the company
has emerged as one of India’s fastest growing retail broking houses.
Its authorized share capital is Rs. 17,500,000 and its paid up capital is Rs. 13,500,000.
52
CHAPTER 4
LITERATURE REVIEW
53
Nidhi Walia and Ravinder Kumar (2007) examined the investors' preference for
traditional trading and online trading, investor's perception on Online trading &
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. The
major findings of the study are the Indian investors are more conservative, they do not
change brokers for trading, whereas net traders are more comfortable with online
trading for its transparency and complete control of the terminal.
V. Pavithras (2017) concluded the study on Customers Perception towards online

trading in Retail Brokerage. The objective is to study the impact of the Customers
perception towards online trading. Primary data is collected from structured
questionnaire with 100 respondents. There is no significant difference among the
Occupations, Educational qualification with respect to preference of attributes of
share trading company. Customers invest in mutual funds as its risk is low and returns
are more rather than bonds and shares. Online trading is been preferred by customers
rather than Offline trading. Major reason for customers to invest in online trading is
its conveyance and user friendly.
Dr. Anitha Kumari (2013) concluded that online trade share market has emerged as
one of the greatest and easiest ways to invest share by the investors. This study sheds
light on the how these online trade market work and how they are satisfying their
investors. It aims at studying the investor’s perception of online trading in share
market also helps to find out accessing the present level of service provided and
identifying the areas which require attention for improving its services. Data collected
from 113 respondents in Chennai indicated that the investors have referred others to
online share market. The share brokers may improve services of proper response from
the dealer, putting the orders without delay. Online trade markets can issue the cheque
to customer earlier it would increase the customer confidence.
54
Jyoti Shanker Sahoo (2012) concluded that study conducted by reflects that most of
the Indian investors believe offline trading as a safer and easiest way to trade in stock
market. As investors appreciate the thinking of stock traders and invest according to
their advice and research. Due to lack of exposure towards technology, investors
consider online share trading as challenging task.
Chinmaya (2010) concluded that Investors need good knowledge and experience for
operating the demat account of most of the investors are unaware of online trading
and they are not confident that they can do trading independently. But he also states
that online trading has bright future in upcoming days because of the technological
development.
N. Kathirvel A. Mekala (2010) concluded that Women Investor Perception towards

Online Trading in Tamil Nadu with Special Reference to Coimbatore District” shows
that a good financial system provides the intermediation between savers and investors
and promotes faster economic development. An investment share requires a careful
evaluation of factors related to the economy, industry and the company. This analysis
is called fundamental analysis. An investor is surrounded by many factors in her
consideration of making investments. She is interested in liquidity of her assets.
Turner T. (2007) concluded that A Beginner's Guide to Day Trading Online The
stock market is the monster of all Roller Coasters, lifting traders to hair raising highs,
then dropping them to the lowest lows, with no regards for their screams. Online
brokers and direct access brokers have streamlined their platforms to maximum levels
of speed & efficiency.
Nejati. M & Nejati M. (2010) concluded that Global Business and Management
Research an International Journal Share brokers offer two types of share trading.
Offline Share trading-In the form of trading the customer goes to the share brokers
place & sits before the share trading terminal & asks the dealer to place order in his
account or rings the share broker, asks the share quotes & other related and relevant
information, & accordingly places orders over the phone. Online Share Trading-The
client could avail the share market & could place his order on his own from any place
he wants, provided he has a computer with an internet Connection.
55
Jaiswal M., Vashist D. and Kumar A. (2000) in their paper have Online trading at
the speed of light, traces the growth of online trading from the year 2000 using
statistics on volume of online trading, number of e- broking firms, brokerages and
demographic patterns. Online trading has dramatically changed the way stock
business has been conducted over the years.
Goldberg, S. T. (1999) concluded that Kiplinger's Personal Finance Online Brokers

Grow U The online brokerage industry is growing up. Online brokers have generally
stopped lowering their prices in the past year or so, but they have added services.
Every brokerage customer gets a regular account statement in the mail, but some
statements are better than others. Many investors are unaware of the hidden costs of
executing a stock trade, or of the ways brokers & other executors of trades can jack up
the cost of trading.
Kasisomayajula (2012) concluded that people are facing problems for trading in
stock market due to lack of information of stock market. due to this investors are
focusing towards demat account as it saves their time and brokerage With the help of
online share trading, investors are able to judge their portfolio and continuously keep
on upgrading it.
Vaddadi Krishna Mohan & Pratima Merugu (2016) concluded that Online share
trading offers investors’ and stock broking firms a new frontier of opportunities and
challenges. The study examines the attitudes of online investors’ towards the adoption
of online trading in Visakhapatnam city. A structured questionnaire was used to
collect data from 400 respondents. The study suggests that stock broking firms in
order to enhance widespread use of online trading service, need to organize relevant
short term training programs and deploy user-friendly interface to encourage
acceptance and quick adoption of online trading service among diversified class of
investors to remove apprehensions and to form strong positive attitude in the long-
run.
56
Brad M. & Terrance (2002) analyzed 1,607 investors who switched from phone
based to online trading during the 1990s. Those who switched to online trading
perform well prior to going online, beating the market by more than 2% annually.
After going online, they trade more actively, more speculatively, and less profitably
than before lagging the market by more than 3% annually.
Haroun Alryalat, Yogesh Kumar Dwivedi, Jasna Kuljis, and Ray J. Paul (2006)
analyzed the effect of online and traditional trading on effective market performance
on the NASDAQ. The purpose of this paper was to present a critical analysis on the
competition between online (ECN) and traditional (Market Maker (MM)) trading on
the NASDAQ stock exchange. Online stock trading mechanisms at the exchanges are
often a hybrid of dealer and auction markets. Different aspects of trading execution,
which is the most commonly used market centre at present, were analyzed. This leads
to a discussion on: (1) the path that executes order is organized and (2) its impact on
the effective market performance, trading cost and investor behaviour.
Williams, Whalley and Li (2000) concluded that a service cannot be adopted without
proper infrastructure. This is also true of online trading where security, reliability, and
spread are vital for consumer trust and loyalty. Many online investors are concerned
about the security of internet transactions. The integrity of information, secure
payment mechanisms, and communication/information free form interception and
misrepresentations.
Atkinson (2000) concluded that there are several studies in the literature review that
attempt to discuss some of the problems and challenges associated with online
trading. The first problem discussed in the literature is hidden costs and deceptive
advertising associated with online trading. Supported this contentions that buried in
all the online trading hype resides the fine print.
Ray (2000) studied privacy identification and investors protection by using trusted
third parties and privacy statements. Online brokers have tried to increase consumer
confidence and loyalty. Anonymity must be guaranteed, since the investors,
individual and institutional, would like to hide their action in order to buy and sell
stock at the best price. Online trading companies secure transactions over the internet
57
by offering data encryption and requiring a unique user identity and password when
the investor logs on. They also provide clients further safety if they fail to achieve
web security.
Rogers and Shoemaker (1971) conducted a study which focused on the provider of
products and services, discussed the benefits and drawbacks of online trading in
general form the trader’s viewpoint. But their approach did not deal with the range of
investor responses to the innovation of online trading. Innovation-diffusion scholars
shed light on his issue by finding that attributes of innovations could appeal
differently to users at different stages of the innovation adoption process
58
CHAPTER 5
RESEARCH METHODOLOGY
59
 Need for the Study
Indian stock market is gaining lot of popularity in the recent years. People are aware
about trading of shares in stock market. Share trading is carried out with the help of
offline and online procedure. With technology up gradation, investors are shifting
from offline share trading to online share trading. Online trade share market has
emerged as one of the greatest and easiest ways to invest share by the investors. But
still, investors are more focused towards offline share trading (SEBI Survey, 2015).
As they believe offline share trading as a safer mode of investment. Hence, this study
aims to investigate investors’ perception towards online trading so as to increase their
usage among investors.
5.1 Problem Statement
The use of online trading is low as compared to use of offline trading thus to
investigate investor’s perception towards online trading so as to increase their usage
among investors.
5.2 Objectives
 To study Investor’s perception towards online trading.

 To find out various purposes for online trading usage.
 To know the preference of investors towards conducting their online trading
transactions.
 To find out problems actually faced and anticipated by the Investors.
5.3 Research design
5.3.1 Type of design
The research design used for the study is descriptive research design.
60
5.3.2 Sampling
Sample population
Investors of Surat city trading in share Market.
Sampling area
Surat city.
Sample size
Sample size is of 200 investors.
Sampling method
The sampling method used in research is non-probability convenience

sampling.
5.3.3 Data collection tool
Primary data collection
Instrument: Questionnaire.
Type of questionnaires: Semi-Structured: Close ended and Open ended. As

per the need of this research, close ended and open ended questions will be
asked. Abstract information of all types will be collected through pre-designed
questions.
 Type of Scale: Rating scale Multiple choice single response & five
point likert scale.
Secondary data
For the secondary data, use of the available literature and other relevant
publications has been made to find out the theoretical framework and also to
know what early research mentioned regarding the given topic.
61
5.3.4 Tools for analysis
The statistical tools analyzing this study we include:
1. Frequency distribution
2. Non parametric test - Mann-Whitney U test
3. Non parametric test - Chi square test
4. Non parametric test - Kruskal - Wallis H test
Data analysis and interpretation have been conducted by using Statistical software
SPSS version 21.
5.3.5 Benefits of the study
 It helps in understanding the investor’s perception towards online trading.
 Helps in finding out the problems faced by investors while trading online.
 To find out various purposes for online trading usage.
5.3.6 Limitations of the study
 Limitation of respondents: The Number of respondents is less (200

respondents) due to time limit.
 As the study is limited only to Surat city, the findings of the study may not be
generalized.
 Many of respondents may not answer the questionnaire with complete

seriousness and may discriminate while answering.
 The information given by the investors may be biased due to use of

questionnaire.
62
CHAPTER 6
Data Analysis & Interpretation
63
1) Gender
Gender
Frequency Percent Valid Percent Cumulative
Percent
Male 130 65.0 65.0 65.0
Valid Female 70 35.0 35.0 100.0
Total 200 100.0 100.0
Figure 6.1
Interpretation:
Table– 6.1 reveals that 130 (65%) respondents are male and remaining other 70 (35%)
investors are female.
64
2) Age
Age
Percent
Below 20 29 14.5 14.5 14.5
21-30 101 50.5 50.5 65.0
Valid 31-40 28 14.0 14.0 79.0

41 and Above 42 21.0 21.0 100.0
Total 200 100.0 100.0
Figure 6.2
Interpretation:
Table– 6.2 reveals that 29 (14.5 %) respondents fall in the age group of below 20
years while 101 (50.5%) respondents fall in the age group of 21-30 years, 28 (14%)
respondents fall in the age group of 31-0 and 42 (21%) fall in the 41 and above age
group.
65
3) Occupation
Occupation
Percent
Service 55 27.5 27.5 27.5
Business 60 30.0 30.0 57.5
Housewife 26 13.0 13.0 70.5
Valid
Student 56 28.0 28.0 98.5
Other 3 1.5 1.5 100.0
Total 200 100.0 100.0
Figure 6.3
Interpretation:
Table 6.3 reveals that most of respondents are Business men 60, students are 56, 55
belong to service sector, 26 respondents are house wife and rest 3 are others (retired).
66
4) Education
Education
Percent
Under Graduate 43 21.5 21.5 21.5
Graduate 124 62.0 62.0 83.5
Valid Post Graduate 30 15.0 15.0 98.5

Diploma 3 1.5 1.5 100.0
Total 200 100.0 100.0
Figure 6.4
Interpretation:
Table-6 reveals that the 124 (62%) investors are falling in graduate category, 43
(21.5%) investors are under graduate, 30 (15%) Post graduate and 3 have done
Diploma.
67
5) Income
Income
Percent
Below 150000 78 39.0 39.0 39.0
150000-300000 68 34.0 34.0 73.0
Valid 300001-500000 32 16.0 16.0 89.0

500001 and above 22 11.0 11.0 100.0
Total 200 100.0 100.0
Figure 6.5
Interpretation:
Table-6.5 reveals that most of investors are having their income 1.5 lakhs (39%).
there are 34% investors having income between Rs. 1.5 to 3 lakhs, while 16%
investors having their income between 3 to 5 lakh and only 11% investors having
their income more than 5 Lakhs.
68
6) Trading preference
Which type of trading do you prefer?

Percent
Online 141 70.5 70.5 70.5
Offline 36 18.0 18.0 88.5
Valid
Both 23 11.5 11.5 100.0
Total 200 100.0 100.0
Figure 6.6
Interpretation:
Table 6.6 reveals that the 141 investors prefer online trading, 36 investors prefer
offline trading, while 23 investors prefer both online and offline trading
69
7) If you are doing only offline trading then why are you not doing online trading?
7A) Lack of security
Lack of Security
Percent
Yes 27 12.0 42.9 42.9
Valid NO 32 16.0 57.1 100.0
Total 59 28.0 100.0
Missing System 141 72.0
Total 200 100.0
Figure 6.7.1
70
7B) Lack of Knowledge
Lack of Knowledge
Percent
Yes 32 16.5 58.9 58.9
Valid No 27 11.5 41.1 100.0
Total 59 28.0 100.0
Total 200 100.0
Figure 6.7.2
71
7C) Lack of trust
Lack of Trust
Percent
Yes 20 8.5 30.4 30.4
Valid NO 39 19.5 69.6 100.0
Total 59 28.0 100.0
Total 200 100.0
Figure 6.7.3
Interpretation:
Table 6.7 reveals that the 20 Investors are not doing online trading due to lack of trust,
32 Investors are not doing online trading due to lack of knowledge and 27 Investors
are not doing online trading due to lack of security.
72
8) If you’re using offline trading, in future would you like to switch to online
platform?
If you're using offline trading, in future would you like to switch to online platform ?
Percent
Yes 26 13.0 46.4 46.4
No 16 8.0 28.6 75.0
Valid
Can't Say 17 7.0 25.0 100.0
Total 59 28.0 100.0
Total 200 100.0
Figure 6.8
Interpretation:
Out of 59 investors, 26 investors would switch to online platform, 16 investors would
not switch to online platform and remaining 17 investors can’t say about switching to
online platform.
73
9) For how many years you are doing the Online Share trading?
For how many years you are doing the online share trading
Percent
Less than 2 years 45 23.5 28.0 28.0
2-3 years 69 34.5 41.1 69.0
Valid 4-5 years 27 14.0 16.7 85.7

Above 5 years 24 12.0 14.3 100.0
Total 164 84.0 100.0
Total 200 100.0
Figure 6.9
Interpretation:
Table 6.9 reveals that 45 investors using online trading for less than 2 years, while 69
investors are using online trading for 2-3 years, 27 investors are using online trading
for 4-5 years and 24 investors are using online trading for above 5 years.
74
10) What are the reasons for online trading?
10A) Privacy
Privacy
Percent
Yes 66 33.0 40.2 40.2
Valid NO 98 49.0 59.8 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.10.1
75
10B) Friendly & Time Saving
Friendly & Time Saving

Percent
Yes 100 50.0 61.0 61.0
Valid NO 64 32.0 39.0 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.10.2
76
10C) Convenience
Convenience
Percent
Yes 92 46.0 56.1 56.1
Valid NO 72 36.0 43.9 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.10.3
77
10D) Quick order execution
Quick order execution
Percent
Yes 74 37.0 45.1 45.1
Valid NO 90 45.0 54.9 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.10.4
Interpretation:
Table 6.10 reveals that the 100 investors use online trading friendly & Time savings,
66 investors use online trading due to privacy, 74 investors use online trading due to
quick order execution and 92 investors use online trading due to Convenience.
78
11) How did you come to know about online share trading?
How did you come to know about online share trading ?

Percent
Reference by friends 43 21.5 26.2 26.2
Advertisements 33 16.5 20.1 46.3
Valid Advice by financial consultants 42 21.0 25.6 72.0

Reference by Relatives 46 23.0 28.0 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.11
Interpretation:
Table 6.11 reveals that the 43 investors came to know about online share trading due
to reference by friends, while 33 investors came to know about online share trading
due to advertisement, 42 investors came to know about online share trading due to
advice by financial consultants and 46 through relatives.
79
12) From where do you prefer to trade?
From where you prefer to trade ?

Percent
Home 63 31.5 38.4 38.4
Stock Broking office 58 29.0 35.4 73.8
Valid Working Place 42 21.0 25.6 99.4

Other 1 .5 .6 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.12
Interpretation:
Table 6.12 reveals that the 63 investors prefer trading at home, 58 investors prefer
trading at stock broking office, 42 investors prefer trading at working place and 1
from other place.
80
13) How often do you trade?
How often do you trade

Percent
Daily 29 14.5 17.7 17.7
Weekly 42 21.0 25.6 43.3
Valid Monthly 47 23.5 28.7 72.0

Occasionally 46 23.0 28.0 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.13
Interpretation:
According to survey 29 investors are trading daily to make money faster, 42 Investors
are trading on weekly basis, 47 Investors are trading on monthly basis, and remaining
46 Investors trade occasionally.
81
14) Which Brokerage Firm do you prefer for Online Trading?
Which Brokerage Firm do you prefer for Online Trading?
Percent
ICICI Direct 12 6.0 7.3 7.3
Angel Broking 16 8.0 9.8 17.1
India bulls 8 4.0 4.9 22.0
Concept Securities 65 32.5 39.6 61.6
HDFC securities 23 11.5 14.0 75.6
Valid
Share khan 18 9.0 11.0 86.6
Motilal Oswal 15 7.5 9.1 95.7
Jainam 4 2.0 2.4 98.2
JM financial 3 1.5 1.8 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.14
Interpretation:
Out of 164 respondents most of investors are preferring to invest through Concept
Securities (65), 16 investors are preferring Angel Broking, 18 investors are preferring
Share Khan , 15 investors are preferring Motilal Oswal, 12 investors are preferring
ICICI securities, 23 investors are preferring HDFC securities, 8 investors are
preferring India Bulls and remaining 7 investors are preferring other broking firms.
82
15) Are you satisfied about the online services of your existing brokers?
Are you satisfied by the online services provided to you?

Percent
Yes 140 70.0 85.4 85.4
Valid No 24 12.0 14.6 100.0
Total 164 82.0 100.0
Total 200 100.0
Interpretation:
Out of 164 respondents 140 Investors are satisfied with their current broking firm and
remaining 24 Investors are dissatisfied with their current broking firm.
83
16) If ‘YES’ what is your reasons of satisfaction with the brokerage house?
16A) It eliminates middleman
It eliminates the middleman

Percent
Yes 48 24.0 34.3 34.3
Valid NO 92 46.0 65.7 100.0
Total 140 70.0 100.0
Total 200 100.0
Figure 6.16.1
84
16B) It’s cheaper
It's cheaper
Percent
Yes 115 57.5 82.1 82.1
Valid NO 25 12.5 17.9 100.0
Total 140 70.0 100.0
Total 200 100.0
Figure 6.16.2
85
16C) It offers greater investor control
It offers greater investor control

Percent
Yes 90 45.0 64.3 64.3
Valid NO 50 25.0 35.7 100.0
Total 140 70.0 100.0
Total 200 100.0
Figure 6.16.3
86
16D) You can monitor your investments in real time
You can monitor your investments in real time

Percent
Yes 61 30.5 43.6 43.6
Valid NO 79 39.5 56.4 100.0
Total 140 70.0 100.0
Total 200 100.0
Figure 6.16.4
Interpretation:
Out of 140 respondents, 48 respondents are satisfied because it eliminates middleman,

115 are satisfied because it’s cheaper, 90 are satisfied because it gives more control
and 61 are satisfied because it helps in monitoring investments in real time.
87
17) If ‘No’ what is reason?
17A) Buying error due to computer missteps
Buying errors due to computer missteps

Percent
Yes 15 7.5 62.5 62.5
Valid NO 9 4.5 37.5 100.0
Total 24 12.0 100.0
Total 200 100.0
Figure 6.17.1
88
17B) Internet dependent
Internet-dependent
Percent
Yes 13 6.5 54.2 54.2
Valid NO 11 5.5 45.8 100.0
Total 24 12.0 100.0
Total 200 100.0
Figure 6.17.2
89
17C) No personal relationship with brokers
No personal relationship with brokers

Percent
Yes 16 8.0 66.7 66.7
Valid NO 8 4.0 33.3 100.0
Total 24 12.0 100.0
Total 200 100.0
90
17D) Hacking of data
Hacking of data
Percent
Yes 14 7.0 58.3 58.3
Valid NO 10 5.0 41.7 100.0
Total 24 12.0 100.0
Total 200 100.0
Figure 6.17.4
Interpretation:
Table 6.17 reveals that the 15 investors are dissatisfied due to failure of computer, 13
investors are dissatisfied due to internet dependency, 14 investors are dissatisfied due
to hacking of data and 16 investors are dissatisfied due to no personal relationship
with brokers.
91
18) Online trading is easy to use
Online trading is easy to use

Percent
Highly Disagree 2 1.0 1.2 1.2
Disagree 14 7.0 8.5 9.8
Neutral 33 16.5 20.1 29.9
Valid
Agree 51 25.5 31.1 61.0
Disagree 64 32.0 39.0 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.18
Interpretation:
Out of 164 respondents, 2 respondents highly disagree, 14 disagree, 33 respondents

are neutral, 51 agree and 64 disagree with the statement that online trading is easy to
use.
92
19) There are security issues in online trading
There are security issues in online trading

Percent
Disagree 39 19.5 23.8 33.5
Neutral 58 29.0 35.4 68.9
Valid
Agree 40 20.0 24.4 93.3
Disagree 11 5.5 6.7 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.19
Interpretation:
Out of 164 respondents,16 respondents highly disagree, 39 disagree, 58 respondents

are neutral, 40 agree and 11 disagree with the statement that there are security issues
in online trading.
93
20) Online trading is efficient as compared to offline trading
Online trading is efficient as compared to offline trading

Percent
Disagree 17 8.5 10.4 12.8
Neutral 64 32.0 39.0 51.8
Valid
Agree 61 30.5 37.2 89.0
Disagree 18 9.0 11.0 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.20
Interpretation:
Out of 164 respondents, 4 respondents highly disagree, 17 disagree, 64 respondents

are neutral, 61 agree and 18 disagree with the statement that online trading is efficient
as compared to offline trading.
94
21) Online trading gives me greater control over offline trading
Online trading gives me greater control over offline trading

Percent
Disagree 10 5.0 6.1 9.1
Neutral 68 34.0 41.5 50.6
Valid
Agree 55 27.5 33.5 84.1
Disagree 26 13.0 15.9 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.21
Interpretation:
Out of 164 respondents,5 respondents highly disagree, 10 disagree, 68 respondents are

neutral, 55 agree and 26 disagree with the statement that online trading is efficient as
compared to offline trading.
95
22) Is there any change in investment proportion after changing from offline to online
trading?
Is there any change in investment proportion after changing from 2 to 1 trading?
Percent
Increase 83 41.5 50.6 50.6
Decrease 13 6.5 7.9 58.5
Valid
Neutral 68 34.0 41.5 100.0
Total 164 82.0 100.0
Total 200 100.0
Figure 6.22
Interpretation:
Table 6.22 According to study, after changing from offline to online 83 investors have
increased their investment proportion, 13 have decreased and for remaining 68
investors investment level is Neutral.
96
Chi Square Test
1) Chi square test between gender and trading preference:
H0: There is no significant relationship between gender and trading preference.
H1: There is a significant relationship between gender and trading preference.
Level of significance : The hypothesis to be taken of 95% confidencelevel of

significance i.e. chances of 5% occurance of error.
Chi-Square Tests
Value df Asymp. Sig. (2-
sided)
Pearson Chi-Square .908a 2 .635
Likelihood Ratio .946 2 .623
Linear-by-Linear Association .634 1 .426
N of Valid Cases 200
Interpretation:
Here the chi-square value is 0.908 & asymptotic value is 0.635 which is greater than
0.05 so that H0 fails to reject hence there is no significant relationship between gender
and type of trading prefer.
97
2) Chi square test between age and trading preference:
H0: There is no significant relationship between age and trading preference.
H1: There is a significant relationship between age and trading preference.
Chi-Square Tests
sided)
Pearson Chi-Square 31.150a 6 .000
Likelihood Ratio 28.109 6 .000
Linear-by-Linear Association 3.187 1 .074
Interpretation:
Here the chi-square value is 31.150& asymptotic value is 0.00 which is less than 0.05
so that H0 is rejected hence there is significant relationship between Age trading
preference.
98
3) Chi square test between occupation and trading preference:
H0: There is no significant relationship between occupation and trading preference.
H1: There is a significant relationship between occupation and trading preference.
Chi-Square Tests
sided)
Interpretation:
0.05 so that H0 fails to reject hence there is no significant relationship between
occupation and type of trading preferred.
99
4) Chi square test between education and trading preference:
H0: There is no significant relationship between education and trading preference.
H1: There is a significant relationship between education and trading preference.
Chi-Square Tests
sided)
Interpretation
Here the chi-square value is 13.113 & asymptotic value is 0.041 which is less than
0.05 so that H0 is rejected hence there is significant relationship between education
and type of trading preferred.
100
5) Chi square test between income and trading preference:
H0: There is no significant relationship between income and trading preference.
H1: There is a significant relationship between income and trading preference.
Chi-Square Tests
sided)
Interpretation:
income and type of trading preferred.
101
6) Chi square test between Education and duration of doing online trading:
H0: There is no significant relationship between education and duration of doing

online trading.
H1: There is a significant relationship between education and duration of doing online
trading.
Chi-Square Tests
sided)
Interpretation:
Here the chi-square value is 14.825& asymptotic value is 0.096 which is greater than
education and duration of online trading.
102
7) Chi square test between occupation and duration of doing online trading:
H0: There is no significant relationship between occupation and duration of doing

online trading.
H1: There is a significant relationship between occupation and duration of doing

online trading.
Chi-Square Tests
sided)
Interpretation:
0.05 so that H0 is rejected hence there is significant relationship between occupation
and duration of doing online trading.
103
8) Chi square test between occupation and getting knowledge about online
trading:
H0: There is no significant relationship between occupation and getting knowledge

about online trading.
H1: There is a significant relationship between occupation and getting knowledge

about online trading.
Chi-Square Tests
sided)
Interpretation:
and getting knowledge about online trading.
104
9) Chi square test between occupation and frequency of doing online trading:
H0: There is no significant relationship between occupation and frequency of doing

online trading.
H1: There is a significant relationship between occupation and frequency of doing

online trading.
Chi-Square Tests
sided)
Interpretation:
and frequency of doing online trading.
105
10) Chi square test between age and frequency of doing online trading
H0: There is no significant relationship between age and frequency of doing online
trading.
H1: There is a significant relationship between age and frequency of doing online
trading.
Chi-Square Tests
sided)
Interpretation:
0.05 so that H0 is rejected hence there is significant relationship between age and
frequency of doing online trading.
106
11) Chi square test between occupation and preference of broking firm
H0: There is no significant relationship between occupation and preference of

broking firm.
H1: There is a significant relationship between occupation and preference of broking

firm.
Chi-Square Tests
sided)
Interpretation:
occupation and preference of broking firm.
107
12) Chi square test between income and preference of broking firm
H0: There is no significant relationship between income and preference of broking

firm.
H1: There is a significant relationship between income and preference of broking

firm.
Chi-Square Tests
sided)
Interpretation:
income and preference of broking firm.
108
13) Chi square test between education and satisfaction of online services
H0: There is no significant relationship between education and satisfaction of online

services.
H1: There is a significant relationship between education and satisfaction of online

services.
Chi-Square Tests
sided)
Interpretation:
education and satisfaction of online services.
109
14) Chi square test between income and increase in investment
H0: There is no significant relationship between income and change in investment

pattern.
H1: There is a significant relationship between income and change in investment

pattern.
Chi-Square Tests
sided)
Interpretation:
income and change in investment pattern.
110
15) Chi square test between occupation and change in investment
H0: There is no significant relationship between occupation and change in

investment.
H1: There is a significant relationship between occupation and change in investment.
Chi-Square Tests
sided)
a
Pearson Chi-Square 9.263 6 .159
Interpretation:
occupation and change in investment.
111
Mann-Whitney U test:
It is used for equal sample sizes, and is used to test the median of two populations.
Usually the Mann-Whitney U test is used when the data is ordinal. Wilcoxon rank
sum, Kendall’s and Mann-Whitney U test are similar tests and in the case of ties, it is
equivalent to the chi-square test.
WHY IT IS USED?
The Mann-Whitney U test is used to compare differences between two independent

groups when the dependent variable is ether ordinal or continuous. But not normally
distributed.
1) Mann-Whitney U test between gender and people’s opinion regarding online

share trading:
H0: There is no significant difference in people’s opinion in online share trading

between male and female.
H1: There is a significant difference in people’s opinion regarding online share

trading between male and female.
Ranks
Gender N Mean Rank Sum of Ranks
Male 109 80.41 8765.00
Online trading is easy to use Female 55 86.64 4765.00
Total 164
Male 109 84.89 9253.50

There are security issues in
Female 55 77.75 4276.50
online trading
Total 164
Male 109 80.24 8746.50

Online trading is efficient as
Female 55 86.97 4783.50
compared to offline trading
Total 164
Male 109 83.89 9144.00

Online trading gives me greater
Female 55 79.75 4386.00
control over offline trading
Total 164
112
Test Statisticsa
Online trading is There are security Online trading is Online trading
easy to use issues in online efficient as gives me greater
trading compared to control over
offline trading offline trading
Mann-Whitney U 2770.000 2736.500 2751.500 2846.000
Wilcoxon W 8765.000 4276.500 8746.500 4386.000
Z -.834 -.944 -.910 -.560
Asymp. Sig. (2-tailed) .404 .345 .363 .575
Interpretation:
In case of people’s opinion on ease of online trading, security issue of online trading,
efficiency and control of online trading the p values are greater than 0.05, which
means that the H0 fails to reject hence there is no significant difference regarding
people’s opinion on ease, security issue, efficiency and control of online trading
between male and female.
113
Kruskal - Wallis H Test
1) Kruskal - Wallis H test between age and people’s opinion on online share
trading:
H0: There is no significant difference between people’s opinion regarding online

share trading and age.
H1: There is a significant difference between people’s opinion regarding online share
trading and age.
Interpretation:
In this case the p value being greater than 0.05, null hypothesis fails to reject and
hence there is no significant difference between age group and opinion regarding
ease, security issue, efficiency and control of online trading.
114
2) Kruskal - Wallis H test between occupation and people’s opinion regarding online
share trading:

share trading and occupation.
trading and occupation.
Interpretation:
hence there is no significant difference between occupation of people and their
opinion regarding ease, security issue, efficiency and control of online trading.
115
3) Kruskal - Wallis H test between education and people’s opinion regarding online
share trading:
H0: There is no significant difference between people’s opinion on online share

trading and education
H1: There is a significant difference between people’s opinion on online share trading
and education
Interpretation:
hence there is no significant difference between education of people and their opinion
regarding ease, efficiency and control of online trading.
As p-value is less than 0.05 which means that null hypothesis is rejected and there is
significant difference between education of people and their opinion regarding
security issues.
116
4) Kruskal - Wallis H test between income and people’s opinion regarding online
share trading:

share trading and income.
trading and income.
Interpretation:
hence there is no significant difference between income of people and their opinion
regarding ease, security issue, efficiency and control of online trading.
117
CHAPTER 7
FINDINGS AND
CONCLUSION
118
Findings
 On the basis of gender group most of the Investors are male.
 On the basis of Age group most of the investors fall in 21 – 30 years.

 On the basis of occupation most of the investors are businessmen.
 On the basis of Educational Background most of the investors fall in graduate
category.
 On the basis of Income most of the investors are having their income below
1.5 lakhs.
 Out of 200 respondents, 141 investors prefer online trading, 36 investors
prefer offline trading, while 23 investors prefer both online and offline trading.
 It has been observed that 20 Investors not doing online trading due to lack of
trust, 33 Investors not doing online trading due to lack of knowledge and 27
Investors not doing online trading due to lack of security.
 Out of 59 investors, 26 investors having switch to online platform.16 investors
do not switch to online platform. Remaining 17 investors are can’t say to
switch online platform.
 It has been observed that 100 investors use online trading because it’s friendly
& Time savings, 92 investors use online trading due to Convenience, 74
investors use online trading due to quick order execution and 66 investors use
online trading due to privacy.
 It has been observed that 69 investors using online trading for 2-3 years, while
45 investors using online trading for less than 2 years, 27 investors using
online trading for 4-5 years and 24 investors using online trading above 5
years.
 It has been observed that 46 investors know about online share trading due to
reference by relatives, 43 through friends while 33 investors know about
online share trading due to advertisement and remaining 42 investors know
about online share trading due to advice by financial consultants.
 According to survey 47 Investors are been trading monthly basis, 46 Investors
who trade in yearly basis, 42 Investors are been trading weekly basis and 29
investors are trading daily.
119
 It has been observed that 63 investors prefer trading at home, 58 investors
prefer trading at stock broking office,42 investors prefer trading at working
place and 1 from other place.
 Out of 164 respondents most of 65 investors are been preferring to invest
through Concept Securities, 16 investors been preferring Angel Broking, 18
investors been preferring Share Khan , 15 investors been preferring Motilal
Oswal, 12 investors been preferring ICICI securities, 23 investors been
preferring HDFC securities, 8 investors been preferring India Bulls and
remaining 7 investors preferring other broking firms.
 Out of 164 respondents 140 of Investors are been satisfied with their current
broking firm and remaining 24 Investors are been dissatisfied with their
current firms broking firm.
 Out of 140 respondents, 115 are satisfied because it’s cheaper, 90 are satisfied
because it gives more control and 61 are satisfied because it helps in
monitoring investments in real time and 48 respondents are satisfied because it
eliminates middleman.
 Out of 24 respondents, 16 investors are dissatisfied due to no personal
relationship with brokers 15 investors are dissatisfied due to failure of
computer, 13 investors are dissatisfied due to internet dependent and 14
investors are dissatisfied due to hacking of data and placing.
 Out of 164 respondents, 64 disagree, 51 agree, 33 respondents are neutral, 14
disagree and 2 respondents highly disagree with the statement that online
trading is easy to use.
 Out of 164 respondents, 58 respondents are neutral, 40 agree, 39 disagree, 16
respondents highly disagree and 11 disagree with the statement that there are
security issues in online trading.
 Out of 164 respondents, 64 respondents are neutral, 61 agree, 18 disagree, 17
disagree and 4 respondents highly disagree with the statement that online
trading is efficient as compared to offline trading.
 Out of 164 respondents, 68 respondents are neutral, 55 agree and 26 disagree,
10 disagree and 5 respondents highly disagree with the statement that online
trading is efficient as compared to offline trading.
120
 According to study, after changing from offline to online 83 investors has
increases their investment proportion, 68 investor’s investment level has
remained neutral and 13 have decreased their investment.
 Findings from Chi-Square test.
Demographics Factors Chi- Significance Conclusion

Square(p - value
value)
Gender Trading preference 0.0635 0.05 H0 failed to reject
Age Trading preference 0.000 0.05 H0 rejected
Occupation Trading preference 0.193 0.05 H0 failed to reject
Education Trading preference 0.041 0.05 H0 is rejected
Income Trading preference 0.631 0.05 H0 failed to reject
Education Duration of online 0.096 0.05 H0 failed to reject

trading
Occupation Duration of online 0.000 0.05 H0 is rejected

trading
Occupation Getting knowledge 0.030 0.05 H0 is rejected

about online trading
Occupation Frequency of doing 0.00 0.05 H0 is rejected

online trading
Age Frequency of doing 0.019 0.05 H0 is rejected

online trading
Occupation Preference of broking 0.719 0.05 H0 failed to reject
121
firm
Income Preference of broking 0.031 0.352 H0 failed to reject

firm
Education satisfaction of online 0.427 0.05 H0 failed to reject

services
Income change in investment 0.242 0.05 H0 failed to reject
Occupation change in investment 0.159 0.05 H0 failed to reject
 Findings from Kruskal-Wallis H test.
Demographics Investor’s opinion Kruskal- Significant Conclusion

regarding online Wallis H value
trading
(p -value)
Age Ease of trade 0.124 0.05 H0 failed to reject
Age Security issue in trading 0.911 0.05 H0 failed to reject
Age Efficiency of online 0.304 0.05 H0 failed to reject

trading
Age Control of online trading 0.389 0.05 H0 failed to reject
Occupation Ease of trade 0.400 0.05 H0 failed to reject
Occupation Security issue in trading 0.373 0.05 H0 failed to reject
Occupation Efficiency of online 0.475 0.05 H0 failed to reject
122
trading
Occupation Control of online trading 0.961 0.05 H0 failed to reject
Education Ease of trade 0.694 0.05 H0 failed to reject
Education Security issue in trading 0.027 0.05 H0 rejected
Education Efficiency of online 0.334 0.05 H0 failed to reject

trading
Education Control of online trading 0.683 0.05 H0 failed to reject
Income Ease of trade 0.750 0.05 H0 failed to reject
Income Security issue in trading 0.321 0.05 H0 failed to reject
Income Efficiency of online 0.714 0.05 H0 failed to reject

trading
Income Control of online trading 0.177 0.05 H0 failed to reject
 Findings from Mann-Whitney U test H test.
Demographics Investor’s opinion Mann- Significant Conclusion

regarding online Whitney U value
trading test (p -
value)
Gender Ease of trade 0.834 0.05 H0 failed to reject
Gender Security issue in trading 0.994 0.05 H0 failed to reject
Gender Efficiency of online 0.910 0.05 H0 failed to reject

trading
Gender Control of online trading 0.560 0.05 H0 failed to reject
123
Conclusion:
 From the above analysis and findings, it can be concluded that most of
investors give preference to online share trading due to factors like friendly
and time saving, convenience, cheaper rate and more control.
 After changing from offline to online share trading to investor’s proportion of
investment increases.
 People between 21-30 are mostly using online share trading services
 From the above analysis and findings, it can be concluded that few of
investors do not give preference to online share trading due to factors like lack
of knowledge and lack of security
 From the above analysis and findings, it can be concluded that all the retired
respondents prefer offline share trading.
124
CHAPTER 8
Recommendations
125
Recommendation
Based on the observation made during the study the following suggestions are
submitted for the betterment of the mutual funds companies:
 Young investors are preferring online platform for trading the so companies
should improve their online facilities to make it more user friendly.
 Marketing policies can help companies to improve their brand reputation
among the investors, which will help them to gain trust from the investors.
 Many investors hesitate to use online platform because of lack of
knowledge thus company must provide adequate knowledge to it’s customers
regarding the use of online platform.
126
BIBLIOGRAPHY
Websites
http://www.conceptsecurities.com
https://docuri.com/download/online-share-trading
http://www.managementparadise.com/subadhra.krishnan.3/documents/9032/investors
-perception-towards--online-share-trading/
http://www.stockedge.com
http://www.investopedia.com/terms/c/capitalmarkets.asp
https://www.sebi.gov.in/
Journals
Walia N, Kumar R (2007) Online Stock Trading in India: An Empirical Investigation.

Indian Journal at Marketing 37.
Natalie Y OH, Parwada JT, Walter TS, (1997) online investors trading behaviour and
performance: Evidence from the Korean equity market. JEL classification: G10; G20;
O33.
D. Anitha Kumari (2013) Problems and prospects of online share trading practices in
India.Qualitative Research in Financial Markets, Vol. 4 Issue: 1, pp.84 – 122.
Chinmaya H. P. (2010). Study on the attitude of investors towards online trading

International journal of bank marketing, 23(5),
VaddadiKrishna Mohan; PratimaMerugu (2016)"Measuring online stock broking

performance", Industrial Management & Data Systems, Vol. 108 Issue: 7, pp.988 –
1004.
127
Sahoo, J. S (2012). Customer perception towards online trading in India. International
journal of business management 1-10.
Haroun Alryalat, Yogesh Kumar Dwivedi, Jasna Kuljis, and Ray J. Paul (2006)
analyzed the effect of online and traditional trading on effective market performance
on the NASDAQ.
A, Jaiswal M Vashist D and Kumar. "women perception towards online trading."

(2000).
Atkinson. "customer perception towards online trading in tamilnadu district." (2000).
Kasisomayajula. "study on problem facing in stock market." (2012).
LI, Williams Whalley and. "customer perception towards online trading." (2000).
M, Nejati M Anejati. "customer erception towards retail brokerage." International

journal (2010).
Mekala, N Kathirvel a. "women trading investor perception towards online trading in

tamilnaduwith special reference to coimbtore district." (2010).
pavithras, v. "customer perception towards online trading in retail brokerage ." (2017).
Ray. "study on privacy identification and investor protection towards online trading ."
(2000).
Shoemaker, Rogers and. "study on perception towards retail trading." (1971).
T, Goldberg S. "customer perception towards online retail trading ." (1999).
T, Turner. "A be ginner guide to day trading online stock market." (2007).
Terrance, Brad M. "study on customer swiching on towards online trading." (2002).
128
ANNEXURE
I, Gheewala Sahil, a management student of “S.R Luthra Institute of
Management” is conducting a study on “A STUDY ON INVESTORS
PERCEPTION TOWARDS ONLINE TRADING IN RETAIL BROKERAGE”.
This exercise is a part of research work towards fulfilling the requirement of the
management course. I would be glad if you could spare your valuable time to answer
few questions. I assure you that the views conveyed by you will be used for academic
purpose only and secrecy would be maintained.
Name: _____________________________
Gender:
Male [ ]
Female [ ]
Age
Below 20 [ ]
21 – 30 [ ]
31 – 40 [ ]
41 and above [ ]
Occupation
Services [ ]
Business [ ]
Student [ ]
Housewife [ ]
Other (Specify) ______
129
Educational Background
Under graduate [ ]
Graduate [ ]
Post graduate [ ]
Diploma [ ]
Other (Specify) _______
Income
Below 1, 50,000 [ ]
1,50,000 – 3,00,000 [ ]
3,00,000 – 5,00,000 [ ]
5,00,000 & Above [ ]
130
Q1. Which type of trading do you prefer?
(a) Online [ ]
(b) Offline [ ]
(c) Both [ ]
For those who are doing offline

trading
Q2. If you are doing only offline trading then why are you not doing online
trading?
(a) Lack of Security [ ]
(b) Lack of knowledge [ ]
(c) Lack of trust [ ]
(d) Others_____
Q3. If you’re using offline trading, in future would you like to switch to online
platform?
(a) Yes [ ]
(b) No [ ]
(c) Can’t say [ ]
For those who are doing online trading
Q4. For how many years you are doing the Online Share trading?
(a) Less than 2 years [ ]
(b) 2-3 years [ ]
(c) 4-5 years [ ]
(d) Above 5 years [ ]
131
Q5. What are the reasons for online trading?
(a) Privacy [ ]
(b) Friendly & Time Saving [ ]
(c) Convenience [ ]
(d) Quick order execution [ ]
(e) Others ___________________
Q.6 How did you come to know about online share trading?
(a) Reference by friends [ ]
(b) Advertisements [ ]
(c) Advice by financial consultants [ ]
(d) Others______________
Q7. From where do you trade?
(a) Home
(b) Stock broking office
(c) Working place
(d) Others ________
Q.8 How often you trade?
(a) Daily [ ]
(b) Weekly [ ]
(c) Monthly [ ]
(d) Occasionally [ ]
132
Q.9 Which Brokerage Firm do you prefer for Online Trading?
(a) ICICI Direct [ ]
(b) Angel Broking [ ]
(c) India bulls [ ]
(d) Concept Securities [ ]
(e) HDFC securities [ ]
(f) Share khan [ ]
(g) Motilal Oswal [ ]
(h) Others __________
Q.10 Are you satisfied about the online services of your existing brokers
(a) Yes [ ]
(b) No [ ]
Q.11 If ‘YES’ what is your level of satisfaction with the brokerage house?
(a) It eliminates the middleman [ ]
(b) It’s cheaper [ ]
(c) It offers greater control [ ]
(d) You can monitor your investments

in real time [ ]
133
12) If ‘No’ what is reason?
(a) Buying errors due to computer missteps [ ]
(b) Internet dependent [ ]
(c) No personal relationship with broker [ ]
(d) Hacking of data [ ]
(e) Other _________
Q13. Please rate the following (Please indicate your opinion on given statement
on a 5 point sale 1=Highly Disagree 5 =Highly Agree)
1. Online trading is easy to use ___
2. There are security issues in online trading ___
3. Online trading is efficient as compared to offline trading ___
4. Online trading gives me greater control over offline trading ___
Q14. Is there any change in investment proportion after changing from offline to
online trading?
(a) Increase [ ]
(b) Decrease [ ]
(c) Neutral [ ]
Q15. Give your suggestion to improve the online share trading in Surat
_________________________________________________________
134
135

A Study On Customer Perception Towards Online Trading in Retail Brokerage

Uploaded by

Copyright:

Available Formats

A Study On Customer Perception Towards Online Trading in Retail Brokerage

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

A Study On Customer Perception Towards Online Trading in Retail Brokerage

Uploaded by

Copyright:

Available Formats

Summer Internship Project Report

Under the Guidance of

Gujarat Technological University

It gives me immense pleasure to acknowledge the valuable assistance and co-

I am also thankful to S.R. Luthra Institute of Management to give me this opportunity.

For completion of project, I would like to express my gratitude to Concept Securities

Sr. No. Particulars Pg. No.

Sr. No. Particulars Pg. No.

INTRODUCTION OF THE TOPIC

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

Electronic commerce is associated with buying and selling over computer

Now we can enter in to the concept known as online trading.

 EVOLUTION OF BROKING IN INDIA:

• Stockbrokers will offer on their sites features such as live portfolio

• Brokers will offer online broking and relationship management by

• Brokers (now e-brokers) will offer value management or services like

The actual definition of “Online Trading” is as explained below:

• Increase transparency in the markets.

• Enhance market quality through improved liquidity, by increasing quote

• Reduce settlement risks due to open trades, by elimination of mismatches.

• Provide management information system.

• Introduce flexibility in system, so as to handle growing volumes easily and

Besides, through internet trading three fundamental objectives of securities

• Creation of a fair and efficient market, and Reduction of the systematic

 Procedure for net trading

Internet trading provides total transparency between a broker and an investor in

 News and research report

Step by step procedure in online trading:

Following steps explain the step by step approach to on-line trading:

1) Log on to the stock broker's website.

4) Obtain user ID and pass word.

5) Log on to the broker's site using secure user ID and password.

7) Trade shares directly by entering the symbol or number of the security.

9) Order is executed instantly (10-30 seconds) and confirmation can be

10) Confirmation is e-mailed to investor by broker.

11) Contract note is printed and mailed in 24 hours.

12) Settlement will take place automatically on the settlement day.

 ONLINE TRADING HAS LED TO ADDITIONAL FEATURES SUCH

4) Margin account: where orders can be placed against stocks, to increase

 ADVANTAGES OF ONLINE TRADING:

5) Individuals’ benefit by saving comparatively a lot more when trading online as

6) Individuals can invest in a variety of products, unlike earlier when people

 HERE ARE THE POSSIBLE DISADVANTAGES

2) Individuals are restricted to first-hand financial guidance. This simply means

5) According to a study conducted by Mary Rowland, careful investor: is online

1) ICICI Securities Ltd.

Cooling Credit Rally

Ageing Business Cycle

Euro Rally Lives

Fed Fresh Faces

Don’t Forget China

The skeptics, however points to a possible pin-prick by regulators. Crypto currencies

 HISTORY OF THE STOCK BROKING INDUSTRY

 Primary market and Secondary market.

 NSE (National Stock Exchange)

BSE (BOMBAY STOCK EXCHANGE)

 The domestic capital markets revived in FY2017, after a year of lackluster

Many more stock exchanges were established during 1980’s namely:

 Cochin stock exchange (1980)