INTRODUCTION

STOCK MARKET:-
A stock market is a public market for the trading of company stock
and derivatives at an agreed price; these are securities listed on a stock exchange
as well as those only traded privately. The stock market is one of the most
important sources for companies to raise money. This allows businesses to be
publicly traded, or raise additional capital for expansion by selling shares of
ownership of the company in a public market.
The size of the world stock market was estimated at about $36.6
trillion US at the beginning of October 2008. The total world derivatives market
has been estimated at about $791 trillion face or nominal value, 11 times the size
of the entire world economy.

Stock exchanges are the perfect type of market for securities

whether of government and semi-govt. bodies or other public bodies as also for
shares and debentures issued by the joint-stock companies. In the stock market,
purchases and sales of shares are affected in conditions of free competition.
Government securities are traded outside the trading ring in the form of over the
counter sales or purchase. The bargains that are struck in the trading ring by the
members of the stock exchanges re at the fairest prices determined by the basic
laws of supply and demand.

Under the Securities Contract Regulation Act of 1956,

securities’ trading is regulated by the Central Government and such trading can
take place only in stock exchanges recognized by the government under this Act.
As referred to earlier there are at present such recognized stock exchanges in India.
Of these, major stock exchanges, like Bombay Stock Exchange (BSE), National
Stock Exchange (NSE), Calcutta, Delhi, Chennai, Hyderabad and Bangalore etc.
are permanently recognized while a few are temporarily recognized. The above act
has also lain down that trading in approved contract should be done through
registered members of the exchange. As per the rules made under the above act,
trading in securities permitted to be traded would be in the normal trading hours
(9.15 A.M to 3.30 P.M) on working days in the trading ring, as specified for
trading purpose.
 OBJECTIVES OF THE STUDY:

The objectives of the study are as follows:

 To study the satisfaction levels of investors in online trading.

 To have a comparison between Ventura and other broking firm.

 To know the on-line screen based trading system of Ventura Securities Ltd.

 To know about the awareness of stockbrokers towards online tradingand share

market.

 To study about whether people are satisfied with Ventura Security limited.
RESEARCH METHODOLOGY:-

This is a descriptive research for which there is a comparison with in the different
stock brokers in relation to investor satisfaction towards the best service provider.

SOURESES OF DATA:-

The present research study is based on two kinds of data:-

 Primary DataCollection Methods:

This method includes the data collection from the personal discussion with the
authorized clerks and members of the broking house, my company guide and the
investors those are coming to the branch for trading purpose.
 Secondary DataCollection Methods:
The secondary collection methods includes the lectures of the superintend of the
department of market operations and also the data has been collected from the
news, magazines, various books and websites.
 LIMITATIONS OF THE STUDY:-

The study on investor’s perception is not an easy task to come out, as it is

believed. The main limitations of study are:-

 There may be biasness in information by market participants.

 The complete data was not available due to company privacy and secrecy.
 The size of the research may not be substantial.
 Lake of time as one month and fifteen days is not sufficient to make a study
on a topic the investor satisfaction towards the service provider by the
broking house.

COMPANY PROFILE

Mission:
To build true relationships and strive towards customer delight, through constant
innovation on a strong foundation of dedicated and trained resources.
About Ventura:
Ventura Securities Ltd. (Ventura) commenced operations in 1994 as a stock
broking house. Over the past two decades, we have grown into a group of
companies that provides a complete array of financial products and services.

Through a large network of sub-brokers, we offer our clients the opportunity to

invest and trade in equity and equity derivatives, commodities, mutual funds,
fixed income products and currency futures.
We also directly facilitate clients who wish to trade in equity online via our in-
house, customized and ready to use software – Pointer – which enables seamless
processes and flawless execution. We adhere to a well-defined risk management
system and settlement mechanism thereby conducting fully compliant operations.

Beyond investment avenues, the Ventura Group is constantly committed to

providing investors with access to timely and relevant research and data to ensure
an informed and fruitful investment experience.

The Ventura Credo:

Building and valuing true partnerships
When it comes to our business partners, we see our success reflected in their
progress. We have facilitated them all the way with technology and marketing
strategies and in turn have been rewarded with their performance and loyalty.

Think and it’stheir approach

We envisage all our clients' diverse needs - ranging from financial planning to
wealth management - well in advance and provide them with resources, tools and
solutions to fulfil them.
Constant innovation
Change for the better has become a way of life at Ventura. Innovations have
always been customer centric which has been amply reflected in the up gradation
of systems to facilitate our network partners.
Team Ventura
Our dedicated and well trained people represent the pillar of strength and success
at Ventura. Each of our members has internalized our mission and is constantly
striving to build on it.
Ventura spirit:

It is this spirit of "rising above oneself ", which we at Ventura have internalized
since our inception in order to deliver excellence to our clients.

When we conceive customer-centric solutions.....

In the rationale behind our choice of technology and platforms…..

When we plan our networking strategies in our risk management system….

When we share our ideals with fellow workers in the organisation.....

In our approach to problem solving.....

Ventura lives this spirit….

Directors:

Sajid Malik

Co-promoter of Ventura and Director A chartered accountant by

qualification, Sajid Malik is also the Promoter and Managing Director of Genesis.
International, a company with focus on GIS mapping and engineering designing
services, listed on the NSE and BSE.

HemantMajethia

Co-promoter of Ventura, CEO and Director With over 2 decades of

experience in capital market intermediation and equity research HemantMajethia
is well connected and respected in market circles for his technocratic approach to
stock broking. He is a chartered accountant by qualification and has been
instrumental in the development of the online platform "POINTER".
JuzerGabajiwala

Director A member of the Institute of Chartered Accountants of India

and The Institute of Company Secretaries of India heads the HR and operations
functions at Ventura. He initiated the launch of the alternate products platforms
for mutual fund distribution and insurance. He also spearheaded the wealth
management and NRI cell. Prior to joining Ventura, has been associated with the
IIT group and the TATA group.

THE RISK MANAGEMENT SYSTEM (RMS):

Ventura Securities has segregated the scripts available on pointer for trading into 4
categories:-

Category A – 4 times exposure

Category B – 3 times exposure

Category C – 2 times exposure

Category D – 1 times exposure

If customer wants to buy shares of a company which falls under category A , he

can purchase shares worth 4 times the money that is available as his ledger
balance (Money lying with Ventura)

Let us understand with the help of an example-

I am a customer with Ventura. I have Rs 10000 as margin in my account.

Today I want to buy shares of TISCO (which falls under category A). I'll get a
maximum of 4 times exposure on the margin available in my Ventura account.

So let’s say on May 7th I buy shares worth Rs 40000 as a delivery, I now owe Rs
30000 to Ventura Securities as my margin available was Rs 10000 in my account.

Ventura gives me T+2 i.e. the day I traded + the complete subsequent day and the
third day till 9.30 am to pay up the amount.

I can also pay this amount buy selling shares worth Rs 30000 on the subsequent
day or by transferring funds from my bank account to Ventura.

If I fail to pay the amount by 9.30 am in this case Ventura Securities has complete
rights to square up my position and recover Rs 3000o.

Let us take another example-

I buy shares worth Rs 40000 on Monday and my available margin was Rs 10000.

I owe Rs 30000 to Ventura.

Now on Tuesday I sell shares worth Rs 10000. So now I only owe Rs 20000 to
Ventura which I should pay by Wednesday morning before 9.30 am.

Third Situation:-

I buy shares (TISCO) worth Rs 20000 on Monday. As my available margin was

Rs 10000, I owe Ventura Rs 10000.

However, On Tuesday morning I sell my complete stock worth Rs 20000 and buy
shares (ACC) for Rs 40000. Now I owe Ventura Rs 30000 against the credit of
10000 into my account.

In this case on Monday I had a debit of Rs 10000, however on Tuesday my debit

increases to Rs 30000.
So on Wednesday morning (before 9.30 am) I owe Ventura the lower debit i.e.Rs
10000.

If I fail to pay the amount that I owe, Ventura has complete rights to square up my
position and recover the money.

REFUND PROCESS:

To open an account (demat and trading) a customer needs to opt for a plan out of
various plans offered by Ventura.

According to the plan opted by him, he will have to pay the required access charge
at the time of account opening. This access charge would be valid for a year or six
months depending on the plan selected by the customer.

Once the customer begins trading, he would be charged brokerage as per the plan.

However, the good news for the customer is that the access charge paid at the time
of account opening is refundable.

Let us understand how the refund procedure works:

Scenario A:-

If a customer has opted for a plan with Ventura and generates brokerage equal to
the access charged paid, the entire amount which was paid by the customer gets
refunded to him in the first week of the subsequent month.

E.g.:- I am a customer with Ventura Securities and enroll in a plan of Rs 5000 on

1st May 2010. I trade for one month and generate brokerage of Rs 5000. This
money will be refunded to me in the first week of June 2010.
Scenario B:-

If a customer generates brokerage less than the access charge paid, whatever
amount is generated as brokerage during the term of the plan, will be refunded to
the customer on the expiry.

E.g.:- I am a customer with Ventura Securities and get enroll in a plan of Rs 5000
on 1st May 2010. I trade for one year and generate brokerage of Rs 3762 only. So
this amount will get refunded to me in the first week of June 2011 (post 6 months
or 1 year, depending on the plan duration).

BROKERAGE CALCULATION:

As earlier discussed that, if a customer wants to opens an account with Ventura

Securities, he is required to select a plan type from the ones offered by the
company.

Only when a plan type is selected and account (Trading and Demat) is created the
customer can trade online.

As soon as the customer starts trading using the Ventura account, we would
charge him brokerage depending on the nature of the transaction done.

The brokerage is charged to a customer according to the plan type selected by

him.

There are two types of brokerage charged -

Delivery Brokerage:-

When customer purchases (gets delivery) or sells (gives delivery), this type of
transaction attracts delivery brokerage.
Intraday/Trading brokerage:-

When a customer buy shares and square up his stock during the course of day or
sell the shares and buy more shares the same day, this attracts intraday brokerage.
Intraday brokerage is charged only once irrespective of number of transactions
done during the course of the day.

Let us now take some examples to understand how brokerage is calculated on any
trading done by the customer:-

E.g. 1- I am a customer who is enrolled under a plan of Rs 3500.

Today I bought 100 shares of TISCO @ 600/-

This transaction is called delivery.

In this case I'll be charged Delivery brokerage, which is 0.20% in the plan of Rs
3500.

The calculation is: - 600 (price per share)*0.20 (delivery brokerage %) =Rs 1.2

Hence delivery brokerage per share is Rs 1.2

So, as I have purchased 100 shares, my total brokerage would be 100(number of

shares purchased) * 1.2 (brokerage per share) =Rs 120.

E.g. 2- I am a customer who is enrolled under a plan of Rs 3500.

Today I bought 100 shares of TISCO @ 600/- and sell 100 shares @ 620 per
share on the same day.
As I have squared up my stock the same day I'll be charged Intraday brokerage
(0.03%) only on my first transaction of the day.

The calculation is :- 600 (price per share) * 0.03 (Intraday brokerage %)

= 0.18

So, my total Intraday brokerage for the day would be 100*0.18= Rs 18

Now let’s take the 3rd example- I buy 100 shares of TISCO @ 600 per share.
During the course of the day I sell 50 shares out of the 100 shares bought by me.

Delivery brokerage would be charged on 50 shares which I hold

600 (price per share) * 0.20 (delivery brokerage %) = 1.2

So brokerage on 50 shares would be 50 (number of shares) * 1.2(brokerage per

share) =Rs 60

Intraday brokerage would be charged on the 50 shares which are sold the same
day

So the calculation would be -

The calculation is: - 600 (price per share) * 0.03 (Intraday brokerage %)

= 0.18

So total brokerage on 50 shares would be 50*0.18=Rs 9

VALUE ADDED SERVICE OF VENTURA SECURITIES:

Introduction:

 Ventura has launched a new Online Trading Platform - POINTER

exclusively for
 Non Resident Indians (NRIs) to invest in the secondary market in India.
 NRI clients can now use the online trading facility and trade through the
 “POINTER”. Any investor can access the Indian stock markets from
anywhere -
 Home, office or while traveling on a laptop.
 Ventura has tied up with Axis Bank for banking transactions and has a
 Dedicated NRI Services Cell to take care of the operations in these
accounts.
 Presence in Dubai & have clients in U.S. / UK / Australia / East Africa etc.
Pointer - USP

 Unique software designed as a “Do–it–Yourself” product

 LIVE markets – Instant prices
 Bulk trades, Action watch, Market Summary (advance/ decline, best/ worst
20,
 top traded companies)
 Online chat & news facility
 Fundamentals/Latest News/Research inputs on various companies
 Daily equity newsletter
 Daily charts available for technical studies … and many MORE…..
Features of Ventura Online Platform

Comprehensive
 Trading on both NSE and BSE
 Invest through Repatriable as well as Non-Repatriable funds
Hassle Free
 Simplified account opening process
 No need to send transaction details to RBI
Seamless
 No need to write Cheques
 Funds / Shares directly credited to clients Bank / DP
Secure
 Secured Socket Layer (SSL) with 128 bit encryption
 Detailed audit trail of transaction with time stamp of all orders
 Funds / Securities with Axis Bank and flows only in clients accounts
Customer-Centric Operations

 24*7 access to portfolio; transaction statements and accounts for all

investment(equity, mutual funds etc.).
 Tax reports for investments bought and sold.
 Co-ordinate with Axis Bank and Client for opening Bank account.
 Report the transactions to Axis Bank by submitting the broker contract
noteswithin the required time.
 Handle the pay in and pay out of funds from and to the PIS account with
AxisBank.
 Dedicated NRI Cell to answer queries of NRIs and to place orders for trades
incase of exigencies
Steps to Open an Account

 Log on to our website www.ventura1.com. Click on “NRI Services

Cell”.
 Click on “Open an Account”. Fill the form and submit.
 NRE (Repatriable) or NRO(Non Repatriable) savings account with
AxisBank, Fort Branchand Mumbai.
 Portfolio Investment Scheme (PIS) account with Axis Bank
 NRE/ NRO Demataccount with Ventura
 Online Trading account with Ventura

 PAN CARD is Mandatory to open PIS and Trading account

 Log on to our website
h t t p : / /www. Ve n t u r a 1.Com/NRI / i Frame _NRI _ i n d ex. a s p x.
 Click on “Apply for PAN Card” for the instructions as well as to
download
The application from.
 Ventura can assist the client to obtain the PAN CARD.
Account Opening Process

 Client will fill up the basic details on the Ventura website

http://ventura1.com/NRI/NRIOnlineForm.aspx.
 Ventura will send duly filled Bank; Demat& Trading account opening
forms to
 The Client for signature and return.
 Client will sign the documents, affix the photographs and attach the
attested.
 Documents and send back the set to Ventura.
 Ventura will facilitate the account opening with Axis Bank.
 After opening bank accounts, Ventura demats and trading accounts will also
beopened.
Charges – Axis Bank

 Account Opening : Nil

 Account Maintenance : Rs. 1,000/- per annum
Transaction charges
 On purchase (per contract) : Rs.100/- + Service tax
 On sale (per contract) :Rs.100/- + Service tax
Tax computation: Nil

An initial cheque/remittance of Rs.10, 000/- is required for opening the

Account.Cheque is to be drawn in favor of “Your Name” and crossed
“Account Payee”
Charges - Ventura

 Brokerage : 0.40% plus statutory levies

 DP Maintenance Charges : Rs. nil- per annum
Transaction charges
 Buy : Nil
 Sell per scrip through Ventura : Rs.10/-
 Sell per scrip outside Ventura : Rs.50/- or 0.05% of valuewhichever is
higher

An initial cheque/remittance of Rs. 5,000/- is required for opening the

Account in favor of “Ventura Securities Limited”
 Corporate Office
C-112/116, Kailash Industrial Complex, Building No. 1,
Off LBS Marg, Parksite, Vikhroli (W), Mumbai 400 079
Phone: +91 22 6754 7000
Email: [email protected]

REGIONAL OFFICES
Bangalore Hyderabad Chennai
No.202,2nd Floor .HVS Showroom No 207, 2nd Floor, Ground Floor , New
Court,21 ,Cunningham road Babukhan mall, Somajiguda , no 197/old no 88,
Bangalore-560052 Hyderabad-500016 TTK road , Chennai-
600018

Tel:+91-80-4118948 Tel:+91-40-30221122 Tel:91-44-

24991799/98
Email:[email protected] Email:[email protected] Email:[email protected]
om om m

Baroda New Delhi

Room no11 ,3rd Floor Saran Chambers-2,5 ,Park A-23 , Green park (Main), Main
Road ,Lucknow-226001 AurobindoMarg ,BesideFree
Church , NewDelhi-26511371
Tel-+91-265-2362229 Tel-+91-11-41755195-
98/2651137
Email:[email protected] Email:[email protected]
BRANCHES
Lucknow Nagpur Raipur
Room No.11,3rd Floor, 302,3rd Floor, Gomti officeNo.23,
Saran Chamber-2,5, Park Apartment, Law college PushpakApartment.Opp.Govt.S
Road , Locknow-226001 Squre, Nagpur-440110 chool, Raipur-492001

Tel-+9-522-22850-72 Tel-+91-712-2549548 Tel-+91-771-229257

Email:lucknow@ventura1 Email:Nagpur@ventura1 Email:[email protected]
.com .com
 LITERATURE REVIEW

HISTORY OF ONLINE TRADING:

Online trading began in the 1900s with the advent of the internet. Where traders
once had to physically call in their transactions, online trading opened a new
window of opportunity.Traders were able to place their transactions independent of
an external broker. Online brokerage firms became the new way to conduct
business. CompuServe came on the scene in1969 as the first major online service
company. By the mid 1980s, it was considered a giant in its field.

TIME FRAME:

By the end of the 1900s other brokerage firms began to establish themselves. First
Omaha securities, Inc.was one of the first. This company went through a period of
transformation and eventually became TD Ameritrade in 2005.Another company
trade plus, made its first stock trade in 1983. It offered the public the opportunity to
conduct the business with America online as well as CompuServe. Business grew
rapidly and nine years later, Trade plus became a reputable firm. Today trade plus
(now known as the E-trade Group) remains a leader in the industry.

CONSIDERATIONS:

By the 1900s online investing had exploded. Internet access became affordable,
making the use of the internet widespread. The idea of being self-sustained as trader
was appealing. There was no need to get a broker involved and business could be
conducted around the clock. By January of 1996, the first e-broker was developed
and hundreds opened account online brokers. If an individual was able to conduct
appropriate preparatory research and had reasonable management skills, he was able
to succeed online.
BENEFITS:

The benefits of online trading outweigh offline by a great margin. Perhaps the
greatest benefits the is the ability to take control of your own future.Online trading
elements the “middleman,” those sales agents who do not really have your best
interests at heart. Online stock trading allows you to call your own shots. It is you
that places the trade. By trading online you can also save on trading commissions.
Online trading also makes good use of day trading. Day trading is not a viable
option in offline trading because of the high costs of broker assisted trades.

TRADING TODAY:

Online trading has developed tremendously since its inception in 1994. Today
practically anyone with the means can invest in a reputable company, such as forex.
The forex company became a new major contender to the control of the trading
market. The modern online forex company offers new investment option for online
traders, such as the ability to use margin account as leverage to investments. This
means a trader can purchase a large sum of foreign currency with paying the full
price. Margin trading allows for greater buying power and larger profits.
TRADING PROCEDURE BEFORE ON-LINE

THE TRADING RING:

Trading on stock exchanges is officially done in the ring for a few hours from
11.00 A.M to 2.30P.M. Trading before or after official hour is called KERB
TRADING. In the trading ring space is provided for specified and non-specified
sections. The members of their authorized assistants have to wear a badge or carry
with them identify cards given by the exchange to enter the trading ring. They carry a
Sauda book or confirmation memos duly authorized by exchange. The stock
exchanges operations at floor level are highly technical in nature. Non-members are
not permitted to enter into stock market. Hence, various stages have to be completed
in executing a transaction at a stock exchange. The steps involved in the methods of
trading have been given below:

CHOICE OF BROKER:

The prospective investor who wants to buy shares or the investor who wants to sell
his shares cannot enter into hall of the exchange and transact business. They have to
act through only member brokers. They can also appoint their bankers for this
purpose. Since, bankers can become members of stock exchange as per the present
regulations.
So, the first task in transacting business on stock exchanges is to choose a broker of
repute or banker. Such people’s can ensure prompt and quick execution of a
transaction at the possible price.
INTRODUCTION TO ONLINE TRADING:

Gone are the days of trading on the floor. Technology has changed the
landscape of the stock markets. The look of the stock exchanges has undergone
metamorphic changes in the recent years. Prior to online trading, regional stock
exchange was playing a very important role in capital markets, as they were local
investors. Regional SE, which was unable to interact with other SEs started
developing this own screen based trading and connecting to other scrip’s which were
not available with them. This also helped in accessing the quotes and other market
information from other stock exchange which proved vital in the functioning of the
system as a whole.

The trading network is depicted in given below NSE has main computer
which is connected through Very Small Aperture Terminal (VSAT) installed at its
office. The main computer runs on a fault tolerant STRATUS mainframe computer
at the Exchange. Brokers have terminals (identified as the PCs in the given picture)
installed at their premises which are connected through VSATs/ leased
lines/modems. An investor informs a broker to place an order on his behalf. The
broker enters the order through his PC, which runs under Windows NT and sends
signal to the satellite via VSAT/leased line/modem. The signal is directed to
mainframe computer at NSE via VSAT at NSE’s office. A message relating to the
order activity is broadcast to the respective member. The order confirmation message
is immediately displayed on the PC of the broker. This order matches with the
existing passive order(S) otherwise it waits for the active orders to enter the system.
On order matching, a message is broadcast to the respective member.
TRADING NETWORK
CORPORATE HIERARCHY

The Trading member has the facility of defining a hierarchy amongst its users of the
NEAT system. The hierarchy comprises:

Corporate Manager

Branch 1 Branch 2

Dealer 1 Dealer 2 Dealer 11 Dealer 12

The users of the trading system can logon as either of the user type. The
significance of each type is explained below:
A.CORPORATE MANAGER:

The corporate manager is a term assigned to a user placed at the highest level in a
trading firm. The facility to set Branch order value limits and user order value limits
is available to the corporate manager.
B. BRANCH MANAGER:

The branch manager is term assigned to a user who is placed under the corporate
manager. The branch manager can set user order value limits for each of his
branch.
C. DEALER:

Dealers are users at the lower most level of the hierarchy. A dealer can view and
perform order and related activities only for oneself.
OBJECTIVES OF ON-LINE TRADING:

 Reduce and eliminate operational inefficiencies inherent in manual system.

 Increased trading capacity in stock exchanges.
 Improve market transparency, eliminate unmatched trades and delayed reporting.
 Provides for online and offline monitoring, control and surveillance of the
markets.
 Promote fairness and speedy matching.
 Ensure smooth market operations using technology while retaining the flexibility
of conventional trading practices.
 Setup various limits rules and controls centrally.
 Provide brokers with their data on electronic media interface with the brokers
back office system.
 Provide public information on scrip prices, indices for all users of the system.
 Provide analytical data for use of stock exchange in analysis and reporting
 To face stiff competition from other stock exchange.
 Consolidate trader’s data and interface with clearing and settlement.
PLACEMENT OF ORDER:

The next step in planning of order for the purchase or sale of Securities
with the broker. The order is usually by telegram, telephone, letter, fax etc., or in
person. To avoid delay it is placed generally over the phone. The orders may take
any one of the forms such as at best order, limit order, immediate or cancel order,
discretionary order, limited discretionary order, open order and stop loss order.

ENTRY OF ORDER INTO THE BOOKS:

After receiving the order, the member enters them in his books and the
purchase and sale orders are distributed among his assistants to handle them
separately in non-specified and odd-lots.

EXECUTION OF ORDER:

Big brokers transact their business through their authorized clerk. Small
ones out their business personally. Orders are executed in the trading ring of the
Ventura securities ltd. This works from 12:00noon to 2:00 p.m discretionary order
on all working days from Monday to Friday and a special hour session on Saturday.
The floor of the stock exchange is divided into number of markets (pits)
according to the nature of security deal in. The authorized clerk/broker goes to the
pit and jobbers offer two way quotes for the scrip they deal in. they act as market
makers and provide liquidity to the market. The system has been designed to get the
bet lids and offers from the jobber’s book as well as the best buy and sell orders
from the book. If the quotation is not acceptable to the brokers, he may make a
counter bid/offer.
 Ultimately the bargains may be closed at a price mutually acceptable to
both the parties. In case the quotation is not acceptable to him, the broker may go to
another dealer and make a bargain. All bargains on the stock exchanges are settled
by word of mouth and there is no written contract signed immediately by the parties
concerned. Once the transaction is finalized, the deals are recorded in a Chaupri
Rough notebook or transaction note or confirmation memos. Soudha block books or
confirmation memos are provided by the stock exchange. The details are recorded in
these books also. The prices at which different scrip’s are traded on a particular day
published on the next day in the newspapers. An authorized representative of the
stock exchange is also present in the hall to supervise the trading.

PREPARATION OF CONTRACT NOTES:

Usually, the authorized clerks enter the particulars of the business transacted during
a particular day in ‘KachaSauda Book’ they are transferred to ‘PuccaSauda Book’,
which are maintained separately for the ready delivery contracts. Then the
broker/authorized clerk prepares a contract note. A contract note is a written
agreement between the broker and his client for the transaction executed. It contains
the details of the contract made for the purchase/sale of Securities, the brokerage
chargeable, name of the company, number of shares bought/sold, net rate, etc., it is
prepared in a prescribed from and a copy of it is also sent to the client.

PLACING ORDER WITH THE BROKER:

The next step is placing an order for the purchase/sale of securities with the broker.
The order is usually placed over telephone, fax. It can also take the form of telegram
or letter or in person. The order placed may be any of the following varieties
(largely classified on the basis of price limits that it imposes.
AT BEST ORDER (OR) BEST RATE ORDER:

“Buy 1000 XYZ ltd.”, it does not specify any price. It means buy XYZ Ltd.
Securities at the prevailing market price. These are executed very fast as there is no
price limits.
LIMIT ORDER:

“Buy 100 XYZ Ltd. At Rs 100”, it is an order for the purchase of shares at a
specified price by the client. (Rs 100)
LIMITED DISCRETIONARY ORDER:

“Buy 1000 XYZ Ltd., around Rs.100”. It gives discretion to the broker. The price
can be a little above Rs 100. How much discretion is implied depends on how the
broker and client define around.
OPEN ORDER:

It is an order to buy or sell without fixing any time or price limit on the execution of
the order.
STOP LOSS ORDER:

“Buy 100 XYZ Ltd. @ Rs 12 to stop Rs 10”. It means buy 100 XYZ Ltd securities
at the market rate of Rs. 12 but if on the same day the price falls to Rs. 10
immediately sell of the securities /shares. Thus an attempt is made to limit the loss
of sudden unfavorable shift in the market.
NET RATE ORDER:

“Buy 1000 XYZ Ltd. @Rs.30 net “would mean that the client is willing to buy 1000
XYZ Ltd. For no more than Rs.30 per security inclusive of brokerage payable to the
broker. Net rate is purchase or sale rate minus brokerage.
MARKET RATE ORDER:

Market rate is net rate plus brokerage for purchase and net minus brokerage for sale.
So, “Buy 1000 XYZ Ltd. @Rs.30 market” would mean that the client is willing to
pay Rs.30 plus brokerage for each security of XYZ Ltd.

CLEARING HOUSE:

The exchange has a clearing house as a part of its Market Operations Department to
collect the securities from all members and distribute to each member, all the
securities that are due to him in respect of every settlement. The whole of the
operations of the clearing house are computerized. CH is like are bank where all the
members of VENTURA SECURITIES Ltd maintain their accounts. CH acts as a
member between the buyer and seller. It gets a record of all the transactions (buying
and selling) done by a particular week and process these transactions and directs the
members to deliver the shares or make payment on the pay-in day.
On the payout day, the CH gives the delivery and the payment to the members
according to their respective positions. There are 5 counters in the Ventura portfolio
ltd, CH where bad deliveries, auction, odd-lot shares transaction, spot transaction
etc.., are dealt in respect of all the transactions done from Monday to Friday all the
shares will have to be delivered through the Ventura securities ltd. CH as per the
settlement program field, which is generally, a Saturday on next.
NORMAL TRANSACTION:

In case of regular transaction, shares are deposited in clearing house on Tuesday and
Wednesday. Payout will be on Thursday. Deliveries will also be on Thursday.

STOCK MARKET TRADING ON INTERNET:

The major events that will take place in the Indian Capital Market are introduction
of index-based futures trading on internet. Trading on internet means that the
investor’s will actually buy and sell the stocks on-line through the net. A committee
was setup by SEBI to develop regulatory parameters for use internet trading. SEBI
approved the report on the committee. SEBI decided that internet trading could take
place in India within the existing legal framework through use of order routing
system, which will route order from client to brokers,for trade execution on
registered stock exchanges. The broad also took note of the recommended minimum
technical standards for ensuring safety and security of transaction between clients
and brokers, which will be forced by the respective stock exchanges.
 ADVANTAGES OF INTERNET TRADING:

 It will help in reducing transaction costs particularly for overseas and remote located
investors.
 It will provide real time quotes and on-line trading facility at a much cheaper cost.
 Facility of transaction business from the terminal of the investors and will help him
making rational judgment or decisions.
 It will bring down the brokerages fees and increases the trading volumes.
 Quick response in transaction i.e. giving the order verification and
acknowledgement.
 It allows transparent companies of services and easy price discovery.
 It is easy enough to set up either as individual account for margins trading or settle
transactions by credit card.
 It is easy for brokers to monitor and maintain online accounts and the possibility of
miss-trading is less.
 Surveillance is easy as there is very less scope for speculation
 The investor is provided with best offer
 Trading procedure is easy and fully automated.
 EASIER TRANSACTION PROCESSING

PROFIT IN TIME:

Investor can make profits by selling shares when the going is good. They do not
have to instruct their brokers on the cut off price to sell shares.
EASE AND TRANSPARENCY:

Since the broking, bank and demat account are all electronically connected, all
transaction get updated, demat account shows the latest stockholding statement
while the bank account shows the balance amount after buying or selling of shares.
PRECAUTION:

Check for hidden costs of broker’s age. Beware of net seamstress. Never double
click the mouse during execution of trade avoids cyber cafes and change password
regularly.
LESS FEES:

Shares traded online require no human intervention to match buys and sells. This
means that commission costs are cut dramatically for the frequent investor.
 PROBLEMS OF ONLINE TRADING:

 All the stock exchanges in India were mechanized in the year 1994 November. That
was the year when the stock exchanges introduced screen based trading across the
country.
 While on line trading gives you speed and price advantage, there is some risk and
disadvantage to entering orders on-line. The page alerts you to any pitfalls you
should watch out for if you want to use the internet to trade stocks.
 If you do commit to trading online, you must be careful when you enter stock
orders. It is easy to make mistakes, but the market and your brokers may not be
sympathetic. Once an order is submitted, there may be nothing you can do to take it
back if you made a mistake. The various types of orders you enter can be confusing.
 Individuals are restricted to first hand financial guidance. This simply means that
the individual is himself/herself alone to make the decisions.
 Tax (sales tax and value added tax) evaluation becomes an issue, especially when
you are trading internationally.
 Changes are that one has no idea who is dealing with on the other end, so it is
advisable to gather all the possible information about the party one is dealing with.
In short are full knowledge is to be known.
 Online trading as left individual open to too much information. This is harmful since
it leaves brokerages wide open to sensitive data.
When network crashes there will be problems and delays due to a large influx of
traffic and rapid online trading criteria. For instance on 27 th Oct 1997 there was a
one day crash, which caused online trading on the New York Stock Exchange to
stop and brokers were unable to conduct business.
If you are going to trade online, you were obviously the one making all the trading
choices. To make your trading decisions, you need to research your stocks and
constantly pay attention to market news. This will require some time, as you pursue
your sources of market information and use online tools.

CLEARING & SETTLEMENT TRADING MECHANISM

The clearing and settlement mechanism in India securities market has witnessed
several innovations during the last decade. These include use of the state-of-art
information technology, compression of settlement cycle, dematerialization and
electronic transfer of securities, securities lending and borrowing,
professionalization of trading members, fine-tuned risk management system,
emergence of clearing corporation to assume counterparty risk etc., though many
these are yet to permeate the whole market.

Till recently, the stock exchanges in India were following a system of account
period settlement for cash market transactions, expert for transaction in a few active
securities, which were settled under t+3 rolling settlement. The rolling settlement
has been introduced for all securities. With effect from April 1, 2003 T+2 rolling
settlement has been introduced. The stock exchange was also offering deferral
products to provide leverage to members to postpone their settlement obligations.
The transactions are not settled immediately but after 2 days after the trade day. The
members receive the funds/securities in accordance with the pay-in/pay-out
schedules notified by the respective exchanges. Given the growing volume of trades
and market volatility, the time gap between trading and settlement gives rise to
settlement risk. In recognition of this, the exchanges and their clearing corporation
employ risk management practices to ensure timely settlement of trades. The
regulators have also prescribed elaborate margining and capital adequacy standards
to secure market integrity and protect the interests of investors. The exchanges not
providing counter-party guarantee have been advised by SEBI to set up trade
guarantee funds, which would honor pay-in liabilities in the event of default by a
member. In pursuance to this, 16 out of 23 exchanges have set up trade/settlement
guarantee funds. The trades are settled irrespective of default by a member and the
exchange follows up the defaulting member subsequently for recovery of his dues to
the exchange. The market has full confidence that settlements will take place in time
and will be completed irrespective of possible default by isolated trading members.
Movement of securities has become almost instantaneous in the dematerialized
environment. Two depositories viz., National Securities Depositories Ltd. (NSDL)
and Central Depositories Services Ltd. (CDSL) provide electronic transfer securities
and more than 99% of turnover is settled in dematerialized form. All actively traded
scrip’s are held, traded and settled in demat form. The obligations of members are
downloaded to members/custodians by the clearing agency. The
members/custodians make available the required securities in their pool accounts
with Depository Participants (DPs) by the prescribed pay-in time for securities. The
depository transfers the securities from the pool accounts of members/custodians to
the settlement account of the clearing agency. As per the schedule determined by the
depository from the settlement account of the clearing agency to the pool accounts
of members/custodians. The pay-in and pay-out of securities is affected on the same
day for all settlements.
TRANSACTION CYCLE:

Aperson holding assets (securities/funds), either to meet his liquidity needs or to

reshuffle his holdings in response to changes in his perception about risk and return
of the assets, decides to buy or sell the securities. He finds out the right broker and
instructs him to place buy/sell order on an exchange. The order is converted to a
trade as soon as it finds a matching sell/buy order. The trades are cleared to
determine the obligations of counterparties to deliver securities/funds as per
settlement schedule. Buyer/seller delivers funds/securities and receives
securities/funds and acquires ownership over them. A securities transaction cycle is
presented given below.
 TRANSACTION CYCLE

Decision to Placing
Trade order

Funds/
Securities Trade
TRANSACTION CYCLE
Executi
on

Settlement
Clearing of
of Trades
Trades
SETTLEMENT PROCESS:

While NSE provides a platform for trading to its trading members, the National
Securities Clearing Corporation Ltd. (NSCCL) determines the funds/securities
obligations of the trading members and ensures that trading members meet their
obligations. The clearing banks and depositories provide the necessary interface
between the custodians/clearing members (who clear for the trading members or
their own transactions) for settlement of funds/securities obligations of trading
members. The core functions involved in the process are:
a) TRADE RECORDING:

The key details about the trades are recorded to provide basis for settlement.
These details are automatically recorded in the electronic trading system of the
exchanges.
b) TRADE CONFIRMATION:

The counterparties to trade agree upon the terms of trade like security, price, and
settlement date, but not the counterparty which is the NSCCL. The electronic
system automatically generates confirmation by direct participants. The ultimate
buyers/sellers of securities also affirm the terms, as the funds-securities would
flow from them, although the direct participants are responsible for settlement of
trade.
c) DETERMINATION OF OBLIGATION:

The next step is determination of what counter-parties owe, and what counter-
parties are due to receive on the settlement date. The NSCCL interposes itself as
a central counterparty between the counterparties to trades and nets the positions
so that a member has security wise net obligation to receive or deliver a security
and has to either pay or receive funds.
d) PAY-IN OR FUNDS AND SECURITIES:

The members bring in their funds-securities to the NSCCL. They make available
required prescribed pay-in time. The depositories move the securities available in
the accounts of members to the account of the NSCCL. Likewise members with
funds obligations make available required funds in the designated accounts with
clearing banks by the prescribed pay-in time. The CC sends electronic
instructions to the clearing banks to debit member’s accounts to the extent of
payment obligations. The banks process these instructions, debit accounts or
members and credit accounts of the NSCCL.

e) PAY-OUT OF FUNDS AND SECURITIES:

After processing for shortages of funds/securities and arranging for movement of

funds from surplus banks to deficit banks through RBI clearing, the NSCCL
sends electronic instructions to the depositories/clearing banks to release pay-out
of securities/funds. The depositories and clearing banks debit accounts or the
NSCCL and credit accounts or members. Settlement is complete upon release of
pay-out of funds and securities to custodians/members. The settlement process
for transactions in securities in the CM segment of NSE is presented in below.
 SETTLEMENT PROCESS IN CM SEGMENT OF NSE

NSE
1

8 9
DEPOSITORIES NSCCL CLEARING
BANKS
6 7

2 3
5 CUSTODIANs/CMs 4
10 11

f) RISK MANAGEMENT:

A sound risk management system is integral to an efficient settlement system.

The NSCCL ensures that trading members’ obligations are commensurate with
their net worth. It has put in place a comprehensive risk management system,
which is constantly monitored and upgraded to pre-empt market failures. It
monitors the track record and performance of members and their net worth;
undertakes on-line monitoring of members’ positions and exposure in the market
collects margins from members and automatically disables members if the limits
are breached.
EXPLANATIONS:

1. Trade details from Exchange to NSCCL (real-time and end of day trade file).
2. NSCCL notifies the consummated trade details to CMs/custodians who affirm
back. Based on the affirmation, NSCCL applies multilateral netting and
determines obligations.
3. Download of obligation and pay-in advice of funds/securities
4. Instructions to clearing banks to make funds available by pay-in time.
5. Instructions to depositories to make securities available by pay-in-time.
6. Pay-in of securities (NSCCL advises depository to debit pool account of
custodians. Ms and credit its account and depository does it).
7. Pay-in of funds (NSCCL advises Clearing Banks to debit account of
custodians/CMs and credit its account and clearing bank does it).
8. Pay-out of securities (NSCCL advises depository to credit pool account of
custodians/CMs and debit its account and depository does it).
9. Pay-out of funds (NSCCL advises clearing Banks to credit account of
Custodians/CMs and debit its account and clearing bank does it).
10.Depository informs custodians/CMs through DPs.
11.Clearing Banks inform custodians/CMs.
CLEARING AND SETTLEMENT:

In tune with the SEBI decision, ACM has implemented T+2 settlement
cycle from April 1, 2003. The total delivery-in/delivery-out and pay-in/pay-out of
Traders and Dealers are computed on a netted basis. After netting, the net
position for each centre is computed. If there is a settlement position at a centre,
then funds or securities are moved in and out from one centre to another, as the
case may be, so as to fulfill the total pay-in or pay-out position of funds and
securities. The movement of funds is through HDFC Bank and ICICI Bank. The
settlement of securities takes place only in a dematerialized mode using both the
depositories in India, i.e. National Securities Depository Limited (NSDL) and the
Central Depository Services(India)Limited(CDSL).Pay-in of funds is done by
way of direct debits to the settlement accounts maintained by the Traders and
Dealers with HDFC Bank and ICICI Bank. In the case of margins, debits are
affected on T+1 by electronically debiting the settlement accounts of Traders and
Dealers. Similarly, pay-out of funds is affected by the Exchange through direct
credits to the settlement accounts of the Traders and Dealers.

In the case of operations on ISS, the trading intermediaries (Sub-brokers of

ISS) are required to maintain separate settlement accounts for the Capital Market
segment and Futures & Options segment of NSE with any one of the designated
Clearing Banks (HDFC Bank and ICICI Bank at present). Similarly, another
settlement account will be required for the Equities segment of BSE, when
introduced. Margin collection and refund are through direct debits and credits by
ISS to the settlement accounts of the trading intermediaries. Funds pay-in and
pay-out likewise, are handled through the electronic funds transfer system. In the
Futures & Options segment, end clients are required to maintain such accounts
with the Clearing Banks and all debits and credits are affected by ISS to these
accounts.

As far as securities is concerned a client of a trading member having a net

delivery position, can transfer securities from his demat account either directly to
the pool account of ISS or route them through the account of the trading member.
Pay-out of securities is always affected by ISS into the account of the concerned
trading members, who are then obligated to deliver the same to their clients.

BASIC TERMINOLOGIES ON DEMAT SETTLEMENT:

Refers to the process whereby all those who have made purchases make a
payment and all those who have made sales deliver shares. The exchanges ensure
that the buyers who have paid for the shares purchased by them receive the
shares. Similarly sellers who have given delivery of shares to the exchange
receive payment for the same.
SETTLEMENT CYCLE:

Settlement Cycle refers to a calendar according to which all purchase and sale
transactions done within the dates of the settlement cycle are settled on a net
basis. NSE and BSE currently follow daily settlement cycles.
In a rolling settlement, each trading day is considered as a trading period and
trades executed during the day are settled based on the net obligations for the day.
At NSE and BSE, trades in rolling settlement are settled on a T+2 basis i.e. on the
2nd working day. For arriving at the settlement day all intervening holidays, which
include bank holidays, NSE/BSE holidays, Saturdays and Sundays are executed.
Typically trades taking place on Monday are settled on Wednesday, Tuesday’s
trades settled on Thursday and so on.

PAY IN & PAY OUT:

Pay In refers to your obligations towards the exchanges and Pay Out
refers to exchange obligation towards you. All Pay Ins and Pay Outs take place on a
“T+2” days basis, where “T” is the trading day and plus two more trading days. So
if you buy some shares on Monday, you would have to pay money which is a Pay In
and you would receive shares, which is a Pay Out. Both of these would take place
on Wednesday.

LIMIT ORDER:

Limit Orders allow you to place a buy/sell order at a price defined by you. The
execution can happen at a price more favorable than the price that has been defined
by you. You can place limit orders during holidays & non-market hours too.
MARKET ORDERS:

Market Orders can be placed only during market hours (i.e. when the exchange is
open for trading). Market Orders have different interpretations for both NSE and
BSE.

SQUARE OFF:

Square Off means buying and selling, selling and buying on the same day. For
example, if you have bought 100 `shares of INFTEC today morning and later on at
the end of the day, if you sell INFTEC, 100 shares, it just means that you have
squared off your order.
 DATA ANALYSIS & DATA INTERPRETATION

Q.People know about share market?

Yes No

27 13

13

27

Interpretation:

In the above figure we come to know that 67.5% people know about share market
and 32.5% people have no idea. According to this Figure, maximum numbers of
people are aware about share market and rest 13 numbers people are investing
their savings in fixed deposit and other investment rather than share market. So
either they don’t know about share market or they are not interested in share
market.
Q. Which type of trading investors prefer?

Offline trading Online trading

12 28

12

28

Interpretation:

In the above figure we come to know that 70% people prefer for online trading

and 30% people prefer for offline trading. According to this Figure, maximum

number of people knows about online trading. People prefer online trading rather

than offline trading because it is very convenient, easy, safe, easy accessible and

less time taking.

Q.Investor preference towards short term or long term trade?

Types of Investment Long term Short term Total

Opportunity Respondent
No of respondent 28 12 40
In Percentage (%) 70% 30% 100

120

100

80

60 No of respondent
In Percentage (%)
40

20

0
Long term Short term Total

Interpretation:

This chart shows that 70% of the people believe in short term trading i.e. 12 out of
40 respondents. These short term investors believe in getting their return quick as
they don’t want to park their money for longer time. 30% of people are believed in
long term trading i.e. 28 out of total sample size. People are interested for long
term investment because it gives high return.
Q. Investor’s preferences towards risky and risk free investment?

Risky investment Risk free investment

5 35

Risky
investment
12.5%

Risk free
investment
87.5%

Interpretation:

In the above figure we come to know that 87.5% people invests in risk free
investment and 12.5% people investing in risky investment. According to this
Figure, maximum number of people investing in risk frees investment and a few
numbers of people investing in risky investment because due various factors like:
 Age factor
 Risk taking capacity
 New comer
 Earning capacity etc.
Q. Investor interest for online trading through smart phone?

Yes No

21 19

No
47.5%
Yes
52.5%

Interpretation:
In the above figure we come to know that 52.5% people prefer for online trading
with smart phone and 47.5% people do not prefer online trading through smart
phone. Now a day’s people preferring online trading through smart phone due to
following reason:
 Due to increase in smart phone
 Internet data became less costly
 People became busier in their day to day life, etc.
Q. Where investors want to invest?

Bank Insurance Mutual fund Stock market

12 5 16 7

18

16

14

12

10

8 16
6 12
4
7
2 5

0
Bank Insurance Mutual fund Stock market

Interpretation:

Above figure shows the investment of money in different sectors. Most of the
people are interested to invest in the mutual fund followed by bank, stock market
and insurance (40%, 30%, 17.5% and 12.5%) accordingly. More Investor
investing their saving in mutual fund because

 It is handles by the professional

 It is flexible in nature
 It can be liquidate easily
 Gives high return
  Low cost management
 Provides transparency etc.

Q. Best financial instrument to invest during Boom phase?

Financial instrument %

Fixed deposit 10
Share market 35
Insurance 25
Mutual fund 16
Govt. securities 14

Govt. securities Fixed deposit

14% 10%
Mutual fund
16% Share market
35%

Insurance
25%

Interpretation:

This chart shows the proportion of people investing in different financial

instruments during boom phase. This helps the company in knowing the
psychology of the investors for investment in booming phase. It is expected
during boom phase that there are more chance of high return from share market
andsectors which invest their major portion of money in share market so 35%of
people are tilted towards share market.

Recession phase

Financial instruments %
Fixed deposit 15
Share market 7
Insurance 17
Mutual fund 18
Govt. securities 43

Fixed Deposit
15% Share Market
Govt. 7%
Securities
43% Insurance
17%
Mutual Fund
18%

Interpretation:

This chart shows the contrasting data from the earlier one. This is how the
economic situation changes the decision of the investor. As we can see that
duringboom period, share market was the most liked one but in recession the
people are usually like to invest in Govt. securities, mutual fund and fixed deposit
because these instruments are more safety than other instruments.

Q.Monthly income group is investing in share market?

Below 5000 5000-10000 10000-20000 Above 20000

2 8 16 14

18

16

14

12

10

8 16
14
6

4 8
2
2
0
Below-5000 5000-10000 10000-20000 Above-20000

Interpretation:

From the above figure we come to know that which income group is investing
more in the share market. Rs.10000-20000 income group are investing more in the
share market. According to their income, investors investing in different
investment avenue as per their savings.
Q. From which sources investorsknow about share market?

Friends Agent Advertisement Other

9 7 10 14

16

14

12

10

8
14
6
10
9
4
7
2

0
Friends Agent Advertisement Other

Interpretation:

This figure indicates, from which sources people get the information about share
market. It shows that most of the people get information about share market from
the advertisement.
Q.What moves the share market?
Speculation Us economy Govt. Market Company
securities sentiments performance
12% 18% 10% 37% 23%

Speculation,
US economy,
12%
18%
Company Govt.
performance, announcement,
23% 10%

Market
sentiments,
37%

Interpretation:

This helps in understanding the psychology of the investor and helps the company
in making the research reports for the clients’ (this is a kind of additional service
to retain the customer towards share market). The Company can provide the
technical and fundamental analysis so that those reports help them in their analysis
of share market and they can make their own company portfolio for investment
purpose according to the market forecasting and their own analysis .
Q.Specifies the consumer satisfaction towards best financial
services provided by which broking house?

Anandrathi Icici direct Ventura Sher khan

securities
26 6 4 4

30

25

20

15
26
10

5
6
4 4
0
Anandrathi Icici direct Ventura secuties Sher khan

Interpretation:

In this figure 65% 0f i.e. 26 people are satisfied with anandrathi,because it gives
less operating cost as compare to other broking firm 15% 0f i.e. 6 people are
satisfied with icici direct, and 10% of i.e. 4 people are satisfied with both Ventura
securities and Sherkhan.
Q. Age group known about share market?

Below 20 20-30 30-40 40-50 Above 50

2 12 15 7 4

16

14

12

10

8
15
6 12

4
7
2 4
2
0
Below 20 20-30 30-40 40-50 Above 50

Interpretation:

This figure is drawn on the basis of sample observed of different age group. Only
5% of age group below 20 are known about the share market where as 30%
between20-30, 37.5% between 30-40, 17.5% between 40-50 and 10% age groups
are above 50 know about the share market.
 FINDINGS

The main findings are:

 According to the survey most of the customer of Ventura says that, it is

pocket friendly which is provided less investment charges than others.
 According to survey of 40 persons that 35 numbers of the people are
interested to invest risk free investment and 5 numbers of the people
interest in risky investment.
 According to the survey most of the investors are happy with the consumer
satisfaction of anandarathi portfolio ltd.

 Most of the people are interested to invest in the mutual fund followed by
bank, stock market and insurance (40%, 30%, 17.5% and 12.5%)
accordingly.
 The main purpose of investment is liquidity and returns.
 Investor takes risk as well as gets returns on their investment.
 Businessmen are more interested in stock market than the others in terms of
risks and returns.
 People want to invest in security market but they have no sufficient
knowledge about investment procedure.
 Peoplepay more emphasis on brokerage than service provided by brokerage
house.
 The commodity market is less preferred by the investor because of less
awareness about commodity market.
 People are not aware of hedging in stock market.
 SUGGETIONS

The overall performance of ONLINE TRADING is good. Here are the

suggestions for further improvements of the performance in the future.

 The online trading is easy to work but it is costly to maintain and difficult to
learn.
 It should increase the speed of executing the orders.
 There should be equal commitment for every person.
 There should be some promotional activity required for awareness of the
customer.
 To provide the facility of free demonstration for all.
 Improvement in the opening of Demat account and contract notice procedure is
required.
 Young age people should encourage investing in stock market.
 CONCLUSION

The comprehensive study of on “online trading system at Ventura securities ltdhas

been an enlightening experience stressing on the position aspects on security trading.
Dematerialization of shares and online trading has done in whole lot of good to the
issuer, investor, companies and country.

The Depository system has reduced the time lag in delivering and settlement of
securities but also supported the cause of providing more liquidity to the security
holder, the need for setting up of a depository, paper less trading through online
trading system and settlement became in evitable and unavoidable for the smooth
and efficient functioning of the capital market.

This system has proven its worthiness by increasing in the settlement will be done
with in the day in future is in itself an indication of how great a boon in this system
of Online trading. E-brokerages provide convenience, encourage increased investor
participation and lead to lower upfront costs. In the long run, they will likely reflect
increased market efficiency as well. In short run, however, there are a number of
issues related to transparency, investor’s misplaced trust, and poorly aligned
incentives between e-brokerages and markets, that may impede true market
efficiency.

For efficiency to move beyond the user interface and into the trading process,
consumers need a transparent window to observe the actual flow of orders, the time
of execution and the commission structure are various points in the trading process.
In this regard, institutional rules, regulations and monitoring functions play a
significant role in promoting efficiency and transparency along the value chain in
electronic markets. Our analysis confirms that in the context of online stock markets,
the need for such intervention and oversight it particularly strong.
 BIBLIOGRAPHY

Newspaper:Economic Times of India

Business standard

Web-site: www.nseindia.org

www.iseindia.com

www.nsccl.com

www.ventura1.com

www.moneycontrol.com

Books:

 KOTHARI, “RESEARCH METHODOLOGY published by VIKAS

PUBLISHING HOUSE PVT.LTD. NEW DELHI.
 GOYAL, DR. ALOK- “FINANCIAL MARKET OPERATION” published by
V.K (INDIA) ENTERPRISES. NEW DELHI.
 QUESTIONNAIRE

1. Do you know about share market?

a) Yes
b) No
2. Which type of trading investors prefer?
a) Offline trading
b) Online trading
3. Which type of investment investors prefer?
a) Risk free investment
b) Risky investment
4. Do you interest for online trading through smart phone?
a) Yes
b) No
5. Where investors want to invest?
a) Bank
b) Insurance
c) Mutual fund
d) Stock market
6. What is the best financial instrument to invest during boom phase?
a) Fixed deposit
b) Share market
c) Insurance
d) Mutual fund
e) Govt.securities
7. What is the best financial instrument to invest during recession phase?

a) Fixed deposit

b) Share market

c) Insurance

d) Mutual fund

e) Govt.securities

8. How much the monthly income groups are investing?

a) Below 5000
b) 5000-10000
c) 10000-20000
d) Above 20000
9. From which sources investors know about share market?
a) Friends
b) Agent
c) Advertisement
d) Others
10. What moves the share market?
a) Govt. announcement
b) Market sentiments
c) Company performance
d) Us economy
e) Speculation
11.Which broking house provide the consumer satisfaction towards
Best financial services?
a) Anandrathi
b) Icici direct
c) Ventura securities
d) Sherkhan
12.Which age group of investor knows about share market?
a) Below 20
b) 20-30
c) 30-40
d) 40-50
e) Above 50