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HK desertation
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A Dissertation Report on
“A STUDY ON AWARENESS OF DEMAT ACCOUNT & ONLINE TRADING

AT THE BUNDELKHAND UNIVERSITY”
A Dissertation Report Submitted In Partial Fulfillment of the Requirements the

Degree of
MASTER OF BUSINESS ADMINISTRATION (FM) 2020-2022
By
HEMANT KUMAR AHIRWAR
( 201145095016 )
Under the supervision of
DR. SHIVIKA BHATNAGAR, TEACHING ASSISTANT ( IEF BU JHANSI )
INSTITUTE OF BANKING, ECONOMICS & FINANCE
BUNDELKHAND UNIVERSITY JHANSI
( 2020 - 2022 )
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INSTITUTE OF BANKING, ECONOMICS & FINANCE
BUNDELKHAND UNIVERSITY JHANSI
CERTIFICATE
This is to certify that the Dissertation Report entitled “A STUDY ON AWARENESS

OF DEMAT ACCOUNT & ONLINE TRADING AT THE BUNDELKHAND
UNIVERSITY” in partial fulfillment of the requirement for the award of the Degree of
Master Of Business Administration (FM) is a record of bonafide research works
carried out by Hemant Kumar Ahirwar (201145095016) in the Institute Of Banking,
Economics & Finance Bundelkhand University, under my supervision. I considered
that the dissertation report has reached the standards and fulfilling the requirements of
the rules and regulations relating to the nature of the degree. The contents embodied in
the report have not been submitted for the award of any other degree or diploma in this
or any other university.
Place: Jhansi Signature of the guide
Date: Dr. Shivika Bhatnagar, Teaching Assistant
Institute Of Banking, Economics and Finance
Bundelkhand University, Jhansi
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DECLARATION
I HEMANT KUMAR AHIRWAR hereby declare that the Dissertation Report,

entitled “A STUDY ON AWARENESS OF DEMAT ACCOUNT & ONLINE
TRADING AT THE BUNDELKHAND UNIVERSITY” submitted to the Institute
of Economic & Finance, Bundelkhand University in partial fulfillment of the
requirements for the award of the Degree of MBA ( FM ) is a record of original
dissertation undergone by me under the supervision and guidance of Dr. Shivika
Bhatnagar, Institute of Economic & Finance, Bundelkhand University and it has not
formed the basis for the award of any Degree/Fellowship or other similar title to any
candidate of any University.
I also declare that this dissertation report is my own preparation and not copied from
anywhere else.
Place: Jhansi Signature of the Student

Date: Hemant Kumar Ahirwar
MBA ( FM )
Institute Of Banking, Economics and Finance
Bundelkhand University, Jhansi
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ACKNOWLEDGEMENT
Behind every study their stands a myriad of people whose help and contribution make it
successful.
Firstly, I would hereby like to offer my sincere thanks to my dissertation guide,

DR. SHIVIKA BHATNAGAR, TEACHING ASSISTANT of Institute of Economics
& Finance , Bundelkhand university Jhansi, who helped me as a torch bearer, a friend
and guide during my entire Dissertation duration. I would also like to thanks Dr. C.B.
SINGH (H.O.D) who provided me an opportunity to work in Dissertation Project.
I deem it to be my proud privilege to work under the talented and inspiring guidance of
DR. SHIVIKA BHATNAGAR, TEACHING ASSISTANT express my deepest sense
of gratitude not only for solving the problem but also for showing keen interest during
the course of investigations without his untiring help present work never have been
possible.
Hemant Kumar Ahirwar
MBA ( FM ) 2 nd Year
Roll no- 201145095016
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CONTENTS
CHAPTER NO. PARTICULARS PAGE

NO.
Certificate 2
Declaration 3
Acknowledgement 4
CHAPTER - 1 Introduction 6-24
CHAPTER - 2 Review of Literature 25-27
CHAPTER - 3 Research Methodology 28-29
CHAPTER - 4 Data Analysis and Interpretation 30-38
CHAPTER – 5 Findings 39
Conclusions and Recommendations 40
Limitations 41
Reference 42
Annexure 43-44
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CHAPTER – 1
1.1 DEMAT ACCOUNT
A Demat Account is an account that allows investors to hold their shares in an electronic
form. The abbreviation of a Demat Account is Dematerialisation Account. To open a
free Demat account online, you need to upload few documents. A Demat account
number is compulsory to enable electronic settlements of all the trades.
A Demat account is similar to a bank account, where you hold your money and
respective transaction entries are done in the bank’s passbook. Similarly, securities are
held in electronic form and are debited or credited accordingly from a Demat Account.
A Demat account can be opened with zero balance of shares.
How Demat Account Works in India?

NSDL operates under NSE and CDSL operates under BSE. A depository is similar to a
bank where securities are held in an electronic form.
When investors buy shares, their respective broker credits them from the investor’s
account accordingly and an investor can view their holdings online or in the holding
statement.
When an investor needs to sell shares, he/she needs to give a delivery instruction note in
which details of shares sold are filled, to their respective broker. The account is debited
and the investor is paid for the shares being sold. In the case of online trading, the
account will spontaneously reflect the stocks sold and the amount credited to the
account.
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1.2 PROCEDURE FOR OPENING A DEMAT ACCOUNT
Here are the steps for opening a demat account with reliancesmartmoney.com:
1. Choose an intermediary
You may choose a bank, a brokerage, or any other financial institution as your
intermediary. An intermediary works as a middle-man between the stock exchange and
the investor. You can start your online account opening procedure by filling up an
account opening form with reliancesmartmoney.com.
2. Documents required to open a demat account
Along with your account application form, you need to enclose documents for identity
and address proof.
List of mandatory documents to open a KYC account online with
reliancesmartmoney.com are:
o Identity Proof
o Address Proof
o Income Proof
o A cancelled cheque for account linking
o Pan Card
o Passport size photographs
3. Demat account Charges
Charg
Particulars es (Rs
.)
Annual Maintenance Charges (AMC) levied on monthly basis
Individual / HUFs/ Trust
300/-
Accounts activated prior to September 01, 2015 p.a.
400/-
Accounts activated on or after September 01, 2015
p.a.
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NRI / Foreign Nationals Nil

1000/-
Corporate / Non-Individuals
p.a.
Lifetime Free AMC 2500/-
Basic Services Demat Account (BSDA)
Holding value at any date up to Rs. 50,000/- Nil
Holding value at any date between Rs. 50,001/- to Rs. 200,000/- 100/-
p.a.
Lifetime free DP AMC: Pay refundable deposit amount of Rs 2,500/- to avail existing
AMC debit balance waiver in demat account along with no monthly DP AMC charges
for lifetime.
4. Contract
Next, you should sign an agreement with your intermediary that includes details on the
rights and duties of the investor and the intermediary. You will receive a copy of this
agreement and details of charges, for future reference. It is wise to check the document
carefully before signing it.
5. Demat account number
After completing all the steps above, your bank/ brokerage firm (intermediary) will open
your demat account. They will then provide you with your demat account number, also
known as beneficial owner identification number (BO ID). This will complete your
account opening procedure.
After opening your demat account, you may start trading in equities. Investing in
equities can provide good long-term returns on your investments. Additionally, you can
be more well-versed and makeasmartmove with the investment choices by using the
research provided on reliancesmartmoney.com.
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1.3 BENEFITS OF DEMAT ACCOUNT
 Easy Accessible Trades
A convenient way to hold securities where you can easily access (buy/sell) information
anytime, anywhere through net banking via computer, smartphone or any other smart
device. The USP here stands that a single Demat account can hold both equity and debt
investments.
 Less Paperwork
A Demat account is much secure and safer than paper- shares and also reduces
paperwork for the transfer of securities. Also, the risks associated with physical
documents such as delays, theft or face securities can all be avoided.
 Easy and Instant Transactions
Demat accounts reduce the time-consuming process of receiving dividends, interests or

funds, something which is all auto-credited into the account. Be it stock splits, bonus
issues or public issues, it’s all very convenient to update the investor’s account.
 Safe and Secure
Transfer of securities is done by DP (Depository Participant), eliminating the need to

notify companies. Facilitates automatic credit into De-mat account for shares arising out
of bonus/split, consolidation/merger, etc. A specific type or quantity of share can be
frozen by the account holder which can stop the inflow or outflow of the money for a
specific period of time as per the holder’s requirement.
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1.4 FEATURES OF DEMAT ACCOUNT
 Online Trading is convenient
You can easily trade through multiple platforms: Web, mobile and Call & Trade service.
 Investors can track their investments anytime
Trades are easily accessible; investors can buy and sell securities at any time and
anywhere
 Investors are able to review all of their options instead of depending on a

broker
All the facts and methods to follow a task are stated online and in some simple and user-
friendly ways.
 Faster and Secure Transactions
A point where physical transfers would take one month or so which has become
simplified with a cost-effective method as there are no more stamp duties on transfer of
securities.
 Hassle-free trading experience
You can easily trade through multiple platforms: Web, mobile and Call & Trade service
that lets you have hassle-free and convenient handling.
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1.5 DEMATERIALISATION AND IT’S PROCESS
The capital market in India has been growing rapidly. The latest statistics also show that
Individual investors make up around 45% to 39% of the total volumes of the Indian
equity markets. The rapid increase of digital technologies has transformed the entire
trading system of the country. New people are joining the league and people from
different places can invest in a large number of products owing to The Securities and
Exchange Board of India which introduced the electronic book-keeping of shares.
Dematerialization Process
Dematerialization is the process of converting your physical shares into electronic form.
This consists of four primary parties: depository, issuer, beneficial owner and depository
participant.
There are two depositories in India — National Securities Depository Limited and
Central Securities Depository Limited. The issuer is the company that floats the shares
whereas the depository participant is a SEBI-registered entity that acts as an
intermediary between the investor and the depository. Investors avail depository services
only through depository agents.
However, there are some rules to get the shares dematerialized:
1. In the process of dematerialization, a company revises its Article of Association

through a special resolution in the general meeting, allowing it to issue shares in
electronic form.
2. Private companies, then, have to register with both NSDL and CDSL. The
depositories have their own set of criteria for registration and the issuer has to
comply with them.
3. Post-registration, the depositories provide a unique ISIN for each of the shares.
An ISIN is a 12-digit code, used to identify different securities such as shares,
bonds, etc.
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4. The companies get access to depository services only through an intermediary. If

the issuer wants to transfer the dematerialized shares, it has to arrange for Demat
connectivity from depositories.
1.6 Benefits of Dematerialization
 Safety: Dematerialization eliminated the chances of shares being lost, forged or

misplaced, increasing the safety of the holding. They are stored in secure
depositories, which has made theft a thing of the past.
 Convenience: Dematerialization of shares gave a substantial boost to investor
convenience. With a Demat account,shares can be easily transferred within a
couple of days to transfer ownership.
 Cost-efficiency: Electronic trading doesn’t require cumbersome paperwork
which reduces a lot of expenses.
 Flexibility: Dematerialization led to increased flexibility and therefore improved
access for small investors. Now, one can buy/sell even a single share without any
restriction on the numbers.
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1.7 What is Rematerialization?
Rematerialization is the process of reconverting electronic shares to physical certificates.

You can opt to rematerialise your shares anytime you want which is done within 30
days. However, rematerialized shares are illiquid as they cannot be traded.
Difference between Dematerialization and Re-materialization
 Dematerialized shares have unique ISINs while rematerialized shares have

distinct numbers.
 Dematerialized transactions take place electronically, but re-materialized shares
are traded physically. As per the latest SEBI norms, rematerialized shares cannot
be traded.
 Dematerialized shares are maintained by depositories, while rematerialized
shares are maintained by respective companies.
 Since electronic shares are stored in secure depositories, investors need to pay
the maintenance charges with annual fees ranging in between Rs. 500-1000.
Rematerialized shares are stored by individual investors which do not levy any
maintenance charges.
 The most significant difference between dematerialization and re-
materialization is the safety of the securities. The threat of theft is lower in
dematerialized shares, while it is easier to forge/steal physical certificates.
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How does the Dematerialization and Re-materialization of Securities happen?
The process of Dematerialization and Re-materialization is:
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1.8 WHAT IS DEPOSITORY AND DEPOSITORY PARTICIPANT
The term depository refers to a facility in which something is deposited for storage or
safeguarding or an institution that accepts currency deposits from customers such as
a bank or a savings association. A depository can be an organization, bank, or
institution that holds securities and assists in the trading of securities. A depository
provides security and liquidity in the market, uses money deposited for safekeeping to
lend to others, invests in other securities, and offers a funds transfer system. A
depository must return the deposit in the same condition upon request.
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1.9 Functions of a Depository
1. Serves as a link between public companies and investors/shareholders
A depository functions as a connecting link between the public companies that issue
financial securities, and the investors or shareholders. The securities are issued by agents
associated with depositories, who are known as depository participants. The agents are
responsible for transferring the securities from the depositories to the investors. A
depository participant can be a bank, an institution, or a brokerage.
2. Eliminates risk related to owning physical financial securities
A depository allows traders and investors to hold securities in dematerialized form; thus,
eliminating the risk related to holding physical financial securities. The buyers and
sellers now do not need to check whether the securities have been transferred
successfully without any loss or theft. The depository system reduces such risks by
allowing the securities to be held and transferred in electronic form.
3. Allows the provision of loans of mortgages to interested parties
A depository holds the securities of customers and gives them back when the customers
want. The customers receive interest on the deposits, while the depository earns even
more interest by lending the deposits to other people or businesses in the form of loans
or mortgages.
4. Reduced paperwork and accelerates the process of transferring securities
When a trade occurs, a depository transfers the ownership of securities from the account
of one investor to another. It helps in reducing the paperwork associated with the
finalization of a trade and accelerates the process of transfer of securities.
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1.10 Types of Depository In India
There are two types of Depositories in India. Thus, a DP may be operating under any
one of the two depository institutions. The two depository institutions are-
 National Securities Depository Limited (NSDL)
The National Securities Depository Limited (NSDL) is promoted by the National Stock
Exchange, Unit Trust of India and Industrial Development Bank of India among others.
The activities of NSDL are carried out through service providers such as the DP, Share
Transfer Agents and Clearing Corporations of Stock Exchanges. DP’s are known as the
business partners in NSDL.
The DP’s need to register with NSDL to be able to provide services to the investors and
the clearing members. The depository services provided by NSDL are accessible to the
investors through the DP registered with them. The investors need to open a depository
account with the DP to avail the depository services such as trading account
maintenance, dematerialisation, rematerialisation of securities, etc.
 Central Depository Services (India) Limited (CDSL)
The Central Depository Services Limited (CDSL) is promoted by the Bombay Stock
Exchange, Bank of India and State Bank of India among others. The DP’s registered
under the CDSL help the investors to avail the services provided by the CDSL.
The DP’s of CDSL act as a link between the CDSL and the investors. The investors can
obtain the balances in their accounts recorded and maintained by the CDSL through the
DP’s. The DP’s provide the investors with a statement of their accounts at regular
intervals which gives details of their transactions and securities held by them.
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1.11 DEPOSITORY PARTICIPANTS
Depository Participant (‘DP’) is the agent or the registered stockbroker of a depository.

A depository is an institution or organisation which holds the securities of an investor
through the depository participant and also provides services in relation to these
securities. It holds the securities of the investors in the form of shares, debentures,
Government securities, bonds, mutual fund units, etc. in an electronic form. It acts as a
link between the companies which issue shares and its shareholders.
A person cannot contact the depository directly. Through the DP, a person can open and
maintain a Demat account. They are the link between the depository and the investors.
An agreement between the DP and the depository regulates their relationship.
Depositories Act, 1996 defines a DP as a person registered under Section 12 of the
Securities Exchange Board of India (‘SEBI’) Act, 1992. Section 12 of the SEBI Act
states that no DP shall buy, sell or deal in securities unless registered with SEBI.
Types of Depository Institutions :
The following are the three main categories of depository institutions:
1. Commercial Banks
Commercial banks are for-profit organizations and generally owned by private investors.
The range of services offered by commercial banks depends on the size of the banks. For
example, the services offered by the smaller banks are limited to consumer banking,
small mortgages and loans, simple deposits, banking for small-business, and other
services. The market range is also limited in the case of smaller banks.
On the contrary, larger banks and global banks offer a wide range of services such as
foreign exchange-related services, money management, and investment banking. Some
larger and global banks may also offer services for other banks and large organizations.
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The services offered by the large banks is the most diverse among all depository
institutions.
2. Credit Unions
Credit unions are financial cooperatives implying that these depository institutions are
owned by members of a particular group. The profits earned are either paid to the
members as dividends or reinvested into the organization. The members of the credit
unions are the ones that own accounts in the institution; hence, the depositors are also
partial owners and receive dividends.
Since credit unions are non-profit institutions, they pay no federal or state tax. Hence,
the interest rate charged by credit unions on loans is lower, and they pay a higher interest
rate on deposits.
3. Savings Institutions
The banks serving a local community and loan institutions are called savings
institutions. The local residents deposit money in the banks, and their money is offered
back in the form of mortgages, consumer loans, credit cards, and loans for small
businesses.
Savings institutions can sometimes be set up as corporations or as financial cooperatives
allowing the depositors to get an ownership share in the organization.
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2.1 WHAT IS ONLINE TRADING
Online trading involves the trading of securities through an online platform. Online
trading portals facilitate the trading of various financial instruments such as
equities, mutual funds, and commodities. Angel One offers Angel Speed Pro – an
online trading platform that helps investors and traders to buy/sell stocks and other
financial instruments.
How to Trade Online
To begin trading online you need to open an online trading account with an online
broking firm. Reliance offers reliable Demat and trading accounts services with low
maintenance cost and affordable brokerage. It is essential to choose a broker who is a
registered member of all the stock exchanges and is certified by the SEBI
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2.2 Benefits of online trading:
 It eliminates the middleman:

You can buy and sell without even speaking to your broker. This makes online trading
alluring for someone who does not have the finances to work with full-service brokers.
 It’s cheaper and faster: When a broker executes your trades, it costs you more money.
On the other hand, when you trade online, a brokerage charge is levied but it is always
less than what a traditional broker who has to place a trade physically, would charge
you. Online trading is almost instantaneous.
 It offers greater investor control: One of the most important advantages of online
trading is that it gives you greater control over your investments. You can trade
whenever you want with online trading during the trading hours and you can also take
your own decision without any interference from the broker.
 You can monitor your investments in real time: Your online trading platform has a lot
of advanced tools and interfaces to monitor your investing performance and to do your
own research. You can see real time gains or losses whenever you login from your
phone or computer.
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2.3 How does online trading work?
When you buy or sell a stock through online trading, you order gets executed within
seconds. But, within these seconds lots of operations take place which you are
unaware, such as:
 Your order is registered.
 Your order is placed in a database
 It searches for a for a seller and when both buyer and seller is matched, a confirmation
message is sent to both the parties.
 The order and the price are reported to the regulatory bodies. These regulatory bodies
look over all the trading activities and are displayed to all the investors.
 Your trading records are stored in case regulators want to study your past transactions.
 A contract is sent to your broker who sold the shares and the broker who bought them.
 After all this, the brokers have 3 days to exchange the cash and shares which is called
settlement.
 After this process, the money or the shares are officially in your account.
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2.4 What Is the Stock Market?
A stock exchange is a marketplace where securities, such as stocks and bonds, are
bought and sold. Bonds are typically traded Over-the-Counter (OTC), but some
corporate bonds can be traded on stock exchanges. Stock exchanges allow companies to
raise capital and investors to make informed decisions using real-time price information.
Exchanges can be a physical location or an electronic trading platform. Though people
are typically familiar with the image of the trading floor, many exchanges now use
electronic trading.
NSE introduction
The NSE or National Stock Exchange is the leading stock exchange of India. It is
the fourth largest in the world (based on equity trading volume). Based in Mumbai
and established in 1992, it was the first stock exchange in India to offer a screen-
based system for trading.
The NSE was initially set up with an aim to usher in transparency to the Indian
market system, and it has ended up delivering on its aim quite well. With the help of
the government, the NSE successfully offers services such as trading, clearing as
well as the settlement in debt and equities comprising domestic and international
investors.
BSE introduction
The BSE or the Bombay Stock Exchange is a lot older than its cousin. It was Asia’s
first stock exchange. With a trading speed of 6 microseconds, the BSE is the fastest
stock exchange in the world.
The BSE does have some interesting history. A man named Premchand Roychand
founded the Native Share and Stock Brokers Association in the 19th century. In
those times, it used to function in Dalal Street under a banyan tree - where traders
would gather together to buy and sell stocks. Gradually, the network expanded and
the exchange was established by the name of Bombay Stock Exchange in 1875.
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2.5 Securities and Exchange Board of India ( SEBI )
SEBI is a statutory regulatory body established on the 12th of April, 1992. It monitors
and regulates the Indian capital and securities market while ensuring to protect the
interests of the investors, formulating regulations and guidelines. The head office of
SEBI is at Bandra Kurla Complex, Mumbai.
Functions of SEBI
 SEBI is primarily set up to protect the interests of investors in the securities

market.
 It promotes the development of the securities market and regulates the business.
 SEBI provides a platform for stockbrokers, sub-brokers, portfolio managers,

investment advisers, share transfer agents, bankers, merchant bankers, trustees of
trust deeds, registrars, underwriters, and other associated people to register and
regulate work.
 It regulates the operations of depositories, participants, custodians of securities,

foreign portfolio investors, and credit rating agencies.
 It prohibits insider trading, i.e. fraudulent and unfair trade practices related to the
securities market.
 It ensures that investors are educated on the intermediaries of securities markets.
 It monitors substantial acquisitions of shares and take-over of companies.
 SEBI takes care of research and development to ensure the securities market is
efficient at all times.
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CHAPTER – 2
REVIEW OF LITERATURE
This section covers the review of literature of some of the important studies, research
papers, various national as well as international journals, published articles in various
official standard books & referring to various websites on the internet on different
aspects of Depository system.
Bhatt & Bhatt (2012) in their paper entitled “Financial Performance Evaluation of
depositories in India (A comparative study of NSDL & CDSL)” explores the fact that
the trend of automation especially, Dematerialization, has enabled the Indian capital
market to take the world center stage & scale to unprecedented heights. Securities
market in India has grown exponentially. The analysis of the progress of NSDL &
CDSL in economic terms clearly reveals that both the depositories have shown a
remarkable progress in terms of DEMAT accounts, DEMAT value &quantity,
Settlement value and quantity and the number of depository participants. Their study
reveals that both the depositories have been working financially smoothly over a period
of last six financial years.
Chaudhary & Malik ( 2011) in their paper “ Depository system in India : An

appraisal” states that majority of the participants are resided with NSDL with stake of
55 percent. Thus, it acts as the primary organization with the majority of participants in
the system. Further the paper analysis concludes that the respondents have no clear &
crisp idea regarding the services offered by the DPs to their clients. In order to overcome
geographical & time barriers formal & informal communication need to be developed.
The majority of respondents were comfortable with the prevailing fee structure of
depository which shows the existing fee structure followed by NSDL is benevolent.
George ( 1996 ) in his article “ Towards a paperless settlement system” explains

about the role of the NSDL in revolutionizing the paperless stock settlement system in
the country. He has examined steps taken by the depository to ensure that the scripless
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trading system is a success. He has also stressed the importance of the role of regulatory
body in making the depository system successful.
Jeyanthi (2007) in his research work “A study on National Stock Exchange of India
Limited” has highlighted that the NSE has created a niche for itself not only in the
national arena but also in the international market with the adaptation of required
structural changes. Therefore there is no doubt that NSE will be an attractive destination
for the national & international investors to park their funds in the years to come.
Javaid (2003) in his thesis “A study of operations of stock exchanges with the special
reference to Delhi Stock Exchange” discussed that Indian stock market has emerged as
a major source of finance for the corporate sector. It is an institution evolved in the
industrial developed capitalistic economies with free market mechanism. Stock
exchange was termed as institutional allocator of resources par excellence.
Kaur (2013) in her paper “Investors preference between DEMAT & REMAT and
awareness regarding depository & its various laws” explains the depository system in
India, focusing on the reasons for investors preference between REMAT & DEMAT. To
sum up she concludes that the growth rates of DEMAT account holder is increasing over
years. The Indian system of capital market is two tier system-Indian government allows
holding securities in any form i.e. either in physical securities or in electronic (DEMAT)
form. The respondents feel that the dematerialization provides enough services & it is
convenient to use. Majority of people are shifting towards dematerialization as compared
to the past history & study.
Olekar & Talwar (2013) in their paper “Online trading & DEMAT account in India
– Some issues” observed that the banks normally levy a lower service charges compared
to other depository participants. He also found that when the numbers of users are more
online, the speed of transactions is affected.
Rao (1995) in his paper “Depository System : A boon for India capital markets”
holds the view that the introduction of depositories would improve the market
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efficiency. It is also expected to arrest the prolonged depression in the stock market. The
paper analysis shows the manner in which the depository would help to revive the stock
market. To sum up, he states that the eligibility criteria will require companies to
improve their internal systems. He is hopeful that depository system will bring a sea
change in corporate democracy, particularly in corporate management, price discovery
in market place & proxy exercise etc.
Sahoo (1995) in his article “The depositories ordinance, 1995 explained” has
explained the provisions of Depositories Ordinance 1995, which provides a legal basis
for the establishment of depositories in securities with a view to ensure free &
expeditious transfer of securities.
Singh & Goyal ( 2011) in their paper entitled “Analysis of factors affecting the
Decision Making of the Investors in Depository System” holds the view that most of
the investors think that the shorter settlement period , safety of securities with the
depositories , attitude of the staff available with the DPs, timely services provided by the
DPs to the investors, reduction in transaction costs, rapatriation of sales proceeds of
shares / debentures are some of the factors which affects the decision making of the
investors in depository system. Opening DEMAT account with DP is easy but they
charge for providing this service. The education of the investors plays an important role
in decision making where the difference in the opinions of the investors is found
significant in most of the cases followed by other factors such as occupation, age etc.
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CHAPTER – 3
RESEARCH METHODOLOGY
The research methodology defines what the activity of research is, how to proceed,
how to measure progress, and what constitutes success. It provides us an
advancement of wealth of human knowledge, tools of the trade to carry out research,
tools to look at things in life objectively; develops a critical and scientific attitude,
disciplined thinking to observe objectively (scientific deduction and inductive
thinking); skills of research particularly in the ‘age of information’. Also it defines
the way in which the data are collected in a research project. In this paper it presents
one components of the research methodology from a real project; the theoretical
design and framework respectively.
SOURCES OF DATA :
Data, facts, figures, other relevant material of past and present and surveying are the
basis for study and analysis. Without an analysis of factual data no specific
inferences can be drawn on the questions under study. Inferences based on
imagination or guesses cannot provide correct answer to research questions. The
relevance adequacy and reliability of data determine the quality of the findings of a
study. For the purpose of the present study, data from two sources has been collected,
namely primary data and secondary data.
PRIMARY DATA:
Primary data is source from which the researcher collects the data. It is a firsthand
data, which is used directly for the analysis purposes. Primary data always gives a
researcher a fairer picture. In the present study primary data has been collected using
questionnaires. For the purpose of collecting the same, 100 respondents have been
randomly selected. Even the response of the respondents was taken into
consideration. In this study, primary data plays a vital role for analysis,
interpretation, conclusion and suggestions.
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SECONDARY DATA:
Secondary data is data which is collected and compiled for other purposes.
Secondary data also plays a key factor in providing more information which will
influence the analysis. Few of the main sources of secondary data include
newspapers, magazines, business journals, internet.
Research Design: Exploratory research design is been taken.
Exploratory research design: Exploratory research is research conducted for a

problem that has not been clearly defined. It often occurs before we know enough to
make conceptual distinctions or posit an exploratory relationship. Exploratory
research helps determine the best research design, data collection method and
selection of subjects.
Sample Area: Bundelkhand University Jhansi is being taken as a sample area for
study.
Sample Size: The research made use of primary data, which was collected by the
110 respondents but out of which only 100 has responded to the questions that’s why
the research has been carried on 100 respondents.
Data Collection Instrument: Structured Questionnaire
Sampling Procedure: We have used a Non-Probabilistic Sampling Technique that

is, Convenience Sampling.
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CHAPTER – 6
DATA ANALYSIS & INTERPRETATION
The data has been analyzed by using the SPSS software. Originally SPSS is an
acronym of Statistical Package for Social Science but now it stands for Statistical
Product & Service Solutions. It is one of the most popular Statistical Package which
can perform highly complex data manipulation & analysis with simple instruction. It
is used for quick analysis of high volume of Social Science data, collected from
different methods of research. SPSS is a computer program that is basically used for
survey, authoring & deployment, data mining, text analytics, statistical analysis &
collaboration. Major functions of SPSS are:
• It summarizes the data.
• It determines, whether there are significant differences between groups or not.
• Inspect the relationships among variables and graph result. We have tried to
establish relationship between two factors i.e. satisfaction level of services provided
by the company and success of companies in online trading of stock by using
correlation method of Karl Pearson applying two tailed test with the help of SPSS
Software.
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INTERPRETATION:
Q2. AGE
60
50
40
30
20
10
0
15-30 31-45 46-60 Above 60
INTERPRETATION: In my research 57% of respondents are between the age group

of 15-30 , 20% are of 31-45 and 23% are of 46-60.
Q 16. Income per month
Income
50
45
40
35
30
25
20
15
10
5
0
Below 15000 15000-30000 30000-45000 Above 45000
Income
INTERPRETATION: 45% of respondents have income Below 15000, 10% have

15000-30000, 23% have Above 45000 and 22% have 30000-45000
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Q 17. Educational Qualification
education qualifications
60
50
40
30
education qualifications
20
10
0
Graduate Post Graduate Other categories
INTERPRETATION: 55% respondents are Post Graduated, 27% are Graduated and
18% are of other categories.
Q1.Do you know about online trading?
.Do you know about online trading?

90
80
70
60
50
.Do you know about online
40
trading?
30
20
10
0
YES NO
INTERPRETATION: In my study,87% of the respondents are aware about online

trading in stock market
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Q 2. Do you have a DMAT Account ?
Do you have a DMAT Account ?

70
60
50
40
30 Do you have a DMAT Account ?
20
10
0
YES NO
INTERPRETATION: 60% of respondents do not have demat account.
Q 3. Do you feel safe while trading online?
Do you feel safe while trading online?

60
50
40
30 Do you feel safe while trading

online?
20
10
0
YES NO
INTERPRETATION: 55% of respondents feel safe while trading, whereas others are
not
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Q4. In which stock you most trade online?
stock most you trade online

35
30
25
20
15
10
0
EQUITY MUTUAL FUND COMMODITIES F&O OTHERS
INTERPRETATION: 28% of respondents invests in Equities, 25% trade in Mutual

Funds, 10% trade in Commodities, 5% in F&O Equities and 32% in Others.
Q 5. Do you receive updated online information regarding the stock market

from your dealer/broker?
Do you receive updated online information

70
60
50
40
Do you receive updated online
30 information
20
10
0
YES NO
INTERPRETATION: 62% of respondents receive updated online information.
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Q 6. Do you believe that your trader/broker is very successful in online trading?
45
40
35
30
25
20
15
10
0
Strongly Agree Agree Moderate Disagree Strongly Disagree
INTERPRETATION: 40% of respondents are agree that their trader is very

successful in online trading, whereas 15% are strongly agree, 5% are disagree ,10%
are strongly disagree and 30% are moderate views
Q7. Are the stock broking services provided by Broking Company is

satisfactory?
40
35
30
25
20
15
10
0
strongly agree agree moderate disagree strongly disagree
~ 35 ~

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INTERPRETATION: 38% of respondents are agree that stock broking services

provided by Broking company is satisfactory, whereas 15% are strongly agree, 7%
are disagree ,10% are strongly disagree and 30% are moderate views.
Q8. What percentage of your annual income do you invest in share market?
80
70
60
50
40
30
20
10
0
upto 10% 10-15% 15-20% more than 20%
INTERPRETATION: 70% of people invest only up to 10% of their annual income in

share market
Q9. No. of years of online trading experience in stocks?
Series 1
80
60
40
20
0
Below 5 years 5-10 years Above 10 years
Series 1
INTERPRETATION:72% of respondents have experience of Below 5 years and

remaining have experience of 5-10 years.
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Q 10. How was your DEMAT Account opened?
60
50
40
30
20
10
0
Referral Clients Personal acquaintance Call/Walk Others
INTERPRETATION: 17% of respondents says that their account was opened

through referral clients, 22% through personal acquaintance, 13% through call/walk
in, and 48% through others.
Q 13. Do you feel that there is more transparency in online trading?
Series 1
53
52
51
50
49
48
47
46
Yes No
INTERPRETATION: 52% of respondents feel that there is transparency in online

trading whereas 48% of respondents feel that there is no transparency.
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Q 14. Any company whose service you like?
60
50
40
30
20
10
0
Nippon Angel Broking Indian bulls Share khan Reliance
INTERPRETATION: Majority of respondents feel that the service of Indian Bulls is

good than other companies including Reliance.
~ 38 ~

lOMoARcPSD|40867540
CHAPTER – 7
FINDINGS
 The investment decision of investors is influenced by their own decision and

through friends & relatives.
 Majority of investors invest only upto 10% of their annual income in share
market.
 There have great competition among the various stock broking companies.
 The number of players is increasing at a steady rate and today there are over a
dozen of brokerage houses who have opted to offer net trading to their
customer and prominent among them are reliance, India bulls, Kotak street,
Karvy.
 Investors perception changes with the fluctuations in share market.
 On applying correlation analysis (using SPSS) on the primary data collected,
it has been found that there exists a positive relationship between the two
factors viz. the satisfaction level of services provided by Reliance and its
success in online trading.
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lOMoARcPSD|40867540
CONCLUSION
In today’s scenario when all services are going to be online or in electronic form
many broking companies are creating awareness of online trading so that the client
can trade from anywhere from the World. Broking Company takes care of client
portfolio and whenever the value of his/her portfolio will decrease by 30% then that
client is always informed by his/her relationship Manager. There are many
companies that has helped in handling a vast amount of transactions and this can be
an efficient trading, delivering, settlement system with adequate protection to
investors. The introduction of on-line trading would influence the investors resulting
in an increase in the business of the exchange. Due to invention of online trading
there has been greater benefit to the investors as they could sell / buy shares as and
when required and that to with online trading. The broker’s has a greater scope than
compared to the earlier times because of invention of online trading.
~ 40 ~

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LIMITATIONS OF THE STUDY
 It is always a problem to get an enthusiastic response. There were not many

willing participants; lack of cooperation remains an aberration in most of the
survey based researches.
 The respondents’ behavior changes according to stock market fluctuations.
 The study is only restricted to the Bundelkhand University.
 Time constraint is also one of the factor.
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REFERENCES
WEBSITES :
 www.reliancesmartmoney.com
 www.investopedia.com
 www.bseindia.com
 www.nseindia.com www.moneycontrol.com
 www.wikipedia.org
NEWSPAPER :
 The Times of India

 The Economic Times
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ANNEXURE
Dear respondent, I am a student of MBA, is conducting research on “A STUDY ON

AWARENESS OF DEMAT ACCOUNT & ONLINE TRADING AT THE
BUNDELKHAND UNIVERSITY”. I would be extremely thankful if you spare some
time to answer the following questions. All the facts disclosed by you will be used for
academic purpose only.
1. Name………………………
2. Age
□ 15 to 30 □ 31 to 45 □ 46 to 60 □ above 60
3. Income per month
□ Below 15,000 □ 15000 to 30,000 □ 30,000 to 45,000 □ above 45,000
4. Educational qualification
□ Graduation □ Post graduation □ Other
5. Do you know about online trading?
□ Yes □ No
6. Do you have a DEMAT Account?
□ Yes □ No
7. Do you feel safe while trading online?
□ Yes □ No
8. In which stock you most trade online?
□ Equity □ Mutual Funds □ Commodities □ F&O Equities □ Other
9. Do you receive updated online information regarding the stock market from
your dealer/broker?
□Yes □No
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lOMoARcPSD|40867540
10. Do you believe that your trader/broker is very successful in online trading?
□ Strongly Agree □Agree □Moderate □Disagree □Strongly Disagree
11. Are the stock broking services provided by Reliance is satisfactory?
□ Strongly Agree □Agree □Moderate □Disagree □Strongly Disagree
12. What percentage of your annual income do you invest in share market?
□ Up to 10% □ 10-15% □ 15-20% □ More than 20%
13. No. of years of online trading experience in stocks at this firm?
□ Below 5 years □ 5 to 10
14. How was your DEMAT Account opened?
□ Personal acquaintance □ Referral-Clients □ Call/Walk in □ Others
15. What is your opinion relating to the rate of interest of margin funding facility
of Broking Company?
□ Excellent □Good □ Average □ Poor
16. Are you aware of T+2 method of trading?
□Yes □No
17. Do you feel that there is more transparency in online trading?
□Yes □No
18. Any company whose service you like?
□ Nippon □ Angel Broking □ Indian bulls □ Share khan □ Reliance
~ 44 ~

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International financial institution (Bundelkhand University)

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Studocu is not sponsored or endorsed by any college or university

“A STUDY ON AWARENESS OF DEMAT ACCOUNT & ONLINE TRADING

A Dissertation Report Submitted In Partial Fulfillment of the Requirements the

MASTER OF BUSINESS ADMINISTRATION (FM) 2020-2022

HEMANT KUMAR AHIRWAR

Under the supervision of

DR. SHIVIKA BHATNAGAR, TEACHING ASSISTANT ( IEF BU JHANSI )

INSTITUTE OF BANKING, ECONOMICS & FINANCE

BUNDELKHAND UNIVERSITY JHANSI

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INSTITUTE OF BANKING, ECONOMICS & FINANCE

BUNDELKHAND UNIVERSITY JHANSI

This is to certify that the Dissertation Report entitled “A STUDY ON AWARENESS

Place: Jhansi Signature of the guide

Date: Dr. Shivika Bhatnagar, Teaching Assistant

Institute Of Banking, Economics and Finance

Bundelkhand University, Jhansi

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I HEMANT KUMAR AHIRWAR hereby declare that the Dissertation Report,

Place: Jhansi Signature of the Student

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Firstly, I would hereby like to offer my sincere thanks to my dissertation guide,

Hemant Kumar Ahirwar

Roll no- 201145095016

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CHAPTER NO. PARTICULARS PAGE

CHAPTER - 1 Introduction 6-24

CHAPTER - 2 Review of Literature 25-27

CHAPTER - 3 Research Methodology 28-29

CHAPTER - 4 Data Analysis and Interpretation 30-38

Conclusions and Recommendations 40

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1.1 DEMAT ACCOUNT

How Demat Account Works in India?

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1.2 PROCEDURE FOR OPENING A DEMAT ACCOUNT

3. Demat account Charges

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NRI / Foreign Nationals Nil

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1.3 BENEFITS OF DEMAT ACCOUNT

 Easy Accessible Trades

 Easy and Instant Transactions

Demat accounts reduce the time-consuming process of receiving dividends, interests or

 Safe and Secure

Transfer of securities is done by DP (Depository Participant), eliminating the need to

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1.4 FEATURES OF DEMAT ACCOUNT

 Online Trading is convenient

 Investors can track their investments anytime

 Investors are able to review all of their options instead of depending on a

 Faster and Secure Transactions

 Hassle-free trading experience

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1.5 DEMATERIALISATION AND IT’S PROCESS