Project Report

On
“ANALYSIS OF INDIAN STOCK MARKET AND
COMPARISION OF CORPORATE STOCK BROKERS”

Submitted in the partial fulfillment of the requirements

of

Bachelors of Business Administration

BATCH-2020-23
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

Mentor Name/Guided by: Submitted by: Pradeep Singh Yadav

Jasleen Rana Enrollment No. 03714101720
(Assistant Professor)

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

KALKAJI
 CERTIFICATE

This is to certify that Mr. Pradeep Singh Yadav, a student of Jagannath

International Management School has completed project work on “Analysis of
Indian Stock Market and Comparison of Corporate Stock Brokers” under my
guidance and supervision.
His work is up to my satisfaction.

Signature of Guide

Name of Project Guide: Ms. Jasleen Rana

 ACKNOWLEDGEMENT

All praise to the almighty with whose auspicious blessings I have been able to
accomplish my research project report successfully. Equal credit goes to my
parents and teachers who made me what I am today by their hard labor,
devotion, support & prayer.

My special thanks to for generic cooperation coordination and valuable support. I

pay my gratitude towards my other faculty members. I must not forget to render
my deep feelings of gratitude and thanks to all the respondents whom I visited
during the survey for valuable information, co-operation, advice and suggestion
to make this endeavor a great success.

I am grateful to my guide Vipul Aggarwal, Managing Director, Pee Aar

Securities Pvt. Ltd. for his efforts during my project work. My sincere thanks to all
other who were associated with the project directly or indirectly for providing me
the excellent guidance during the project.

I appreciate the co-ordination extended by my friends and also express my

sincere thankfulness to the all the employees of Pee Aar Pvt. Ltd. giving me the
opportunity to do this project/study and also assisting me for the same.
 CONTENT

Topic Page No.

CHAPTER I – Introduction 1

CHAPTER II - Objective of the study 20

CHAPTER III – Literature Review 29

CHAPTER IV - Research Methodology 38

CHAPTER V – Company Profile 41

CHAPTER VI- Analysis and Interpretation of Data 45

CHAPTER VII –Limitations of the study 57

CHAPTER VIII - Conclusion and Recommendations 59

Bibliography 63

Appendix 65
 CHAPTER 1
INTRODUCTION

1
Origin of Indian Stock Market

The origin of the stock market in India goes back to the end of the
eighteenth century when long term negotiable securities were first
issued. However, for all practical purposes, the real beginning
occurred in the middle of the nineteenth century after the enactment
of the companies Act in 1850, which introduced the features of
limited liability and generated investor interest in corporate
securities. An important early event in the development of the stock
market in India was the formation of the native share and stock
brokers 'Association at Bombay in 1875, the precursor of the
present day Bombay Stock Exchange. This was followed by the
formation of associations/exchanges in Ahmedabad (1894), Calcutta
(1908), and Madras (1937). In addition, a large number of
ephemeral exchanges emerged mainly in buoyant periods to recede
into oblivion during depressing times subsequently.
Stock exchanges are intricacy inter-woven in the fabric of a nation's
economic life. Without a stock exchange, the saving of the
community- the sinews of economic progress and productive
efficiency-would remain underutilized. The task of mobilization and
allocation of savings could be attempted in the old days by a much
less specialized institution than the stock exchanges. But as
business and industry expanded and the economy assumed more
complex nature, the need for 'permanent finance' arose.
Entrepreneurs needed money for long term whereas investors
demanded liquidity – the facility to convert their investment into cash
at any given time. The answer was a ready market for investments
and this was how the stock exchange came into being.

2
Stock exchange means anybody of individuals, whether
incorporated or not, constituted for the purpose of regulating or
controlling the business of buying, selling or dealing in securities.
These securities include:
(i) Shares, scrip, stocks, bonds, debentures stock or other
marketable securities of a like nature in or of any incorporated
company or other body corporate;
(ii) Government securities; and

(iii) Rights or interest in securities.

The Bombay Stock Exchange (BSE) and the National Stock
Exchange of India Ltd (NSE) are the two primary exchanges in
India. In addition, there are 22 Regional Stock Exchanges. However,
the BSE and NSE have established themselves as the two leading
exchanges and account for about 80 per cent of the equity volume
traded in India. The NSE and BSE are equal in size in terms of daily
traded volume. The BSE has over 6000 stocks listed. Most key
stocks are traded on both the exchanges and hence the investor
could buy them on either exchange. Both exchanges have a
different settlement cycle, which allows investors to shift their
positions on the courses. The primary index of BSE is BSE Sensex
comprising 30 stocks. NSE has the S&P NSE 50 Index (Nifty) which
consists of fifty stocks. The BSE Sensex is the older and more
widely followed index.

Both these indices are calculated on the basis of market

capitalization and contain the heavily traded shares from key
sectors. The markets are closed on Saturdays and Sundays. Both
the exchanges have switched over from the open outcry trading
system to a fully automated computerized mode of trading known as
3
BOLT (BSE on Line Trading) and NEAT (National Exchange
Automated Trading) System.
It facilitates more efficient processing, automatic order matching,
faster execution of trades and transparency; the scrip's traded on
the BSE have been classified into 'A', 'B1', 'B2', 'C', 'F' and 'Z'
groups. The 'A' group shares represent those, which are in the carry
forward system (Badly). The 'F' group represents the debt market
(fixed income securities) segment. The 'Z' group scrips are the
blacklisted companies. The 'C' group covers the odd lot securities in
'A', 'B1' & 'B2' groups and Rights renunciations. The key regulator
governing Stock Exchanges, Brokers, Depositories, Depository
participants, Mutual Funds, FIIs and other participants in Indian
secondary and primary market is the Securities and Exchange
Board of India (SEBI) Ltd.

4
Structure of Indian Financial Market
Following diagram gives the structure of Indian Financial System:

Fig 1.1 Indian Financial System

In general, the financial market divided into two parts, Money market
and capital market. Securities market is an important, organized
capital market where transaction of capital is facilitated by means of
direct financing using securities as a commodity. Securities market
can be divided into a primary market and secondary market.

5
PRIMARY MARKET
The primary market is an intermittent and discrete market where the
initially listed shares are traded first time, changing hands from the
listed company to the investors. It refers to the process through
which the companies, the issuers of stocks, acquire capital by
offering their stocks to investors who supply the capital. In other
words, primary market is that part of the capital markets that deals
with the issuance of new securities. Companies, governments or
public sector institutions can obtain funding through the sale of a
new stock or bond issue. This is typically done through a syndicate
of securities dealers. The process of selling new issues to investors
is called underwriting. In the case of a new stock issue, this sale is
called an initial public offering (IPO). Dealers earn a commission that
is built into the price of the security offering, though it can be found
in the prospectus.

SECONDARY MARKET
The secondary market is an on-going market, which is equipped and
organized with a place, facilities and other resources required for
trading securities after their initial offering. It refers to a specific
place where securities transaction among many and unspecified
persons is carried out through intermediation of the securities firms,
i.e., a licensed broker, and the exchanges, a specialized trading
organization, in accordance with the rules and regulations
established by the exchanges.

A bit about history of stock exchange they say it was under a tree
that it all started in 1875. Bombay Stock Exchange (BSE) was the

6
major exchange in India till 1994. National Stock Exchange (NSE)
started operations in 1994.
NSE was floated by major banks and financial institutions. It came
as a result of Harshad Mehta scam of 1992. Contrary to popular
belief the scam was more of a banking scam than a stock market
scam. The old methods of trading in BSE were people assembling
on what is called a ring in the BSE building. They had a unique sign
language to communicate apart from all the shouting. Investors
weren't allowed access and the system was opaque and misused by
brokers.
The shares were in physical form and prone to duplication and
fraud.

NSE was the first to introduce electronic screen based trading. BSE
was forced to follow suit. The present day trading platform is
transparent and gives investors prices on a real time basis. With the
introduction of depository and mandatory dematerialization of shares
chances of fraud reduced further. The trading screen gives you top 5
buy and sell quotes on every scrip.
A typical trading day starts at 9.00 am ending at 3.30 pm. Monday to
Friday. BSE has 30 stocks which make up the Sensex. NSE has 50
stocks in its index called Nifty. FII s Banks, financial institutions
mutual funds are biggest players in the market. Then there are the
retail investors and speculators. The last ones are the ones who
follow the market morning to evening; Market can be very addictive
like blogging though stakes are higher in the former.

MARKET BASICS

 Electronic Trading:
7
Electronic trading eliminates the need for physical trading floors.
Brokers can trade from their offices, using fully automated screen-
based processes. Their workstations are connected to a
Stock Exchange's central computer via satellite using Very Small
Aperture Terminus (VSATs). The orders placed by brokers reach the
Exchange's central computer and are matched electronically.

 Exchanges in India:
The Stock Exchange, Mumbai (BSE) and the National Stock
Exchange (NSE) are the country's two leading Exchanges. There
are 20 other regional Exchanges, connected via the Inter Connected
Stock Exchange (ICSE). The BSE and NSE allow nationwide trading
via their VSAT systems.

 Index:
An Index is a comprehensive measure of market trends, intended for
investors who are concerned with general stock market price
movements. An Index comprises stocks that have large liquidity and
market capitalization. Each stock is given a weight age in the Index
equivalent to its market capitalization. At the NSE, the capitalization
of NIFTY (fifty selected stocks) is taken as a base capitalization, with
the value set at 1000. Similarly, BSE Sensitive Index or Sensex
comprises 30selected stocks. The Index value compares the day's
market capitalization vis-à-vis base capitalization and indicates how
prices in general have moved over a period of time.

 Execute an Order:
Select a broker of your choice and enter into a broker-client
agreement and fill in the client registration form. Place your order
with your broker preferably in writing. Get a trade confirmation slip
8
on the day the trade is executed and ask for the contract note at the
end of the trade date.

 Need a Broker:
As per SEBI (Securities and Exchange Board of India.) regulations,
only registered members can operate in the stock market. One can
trade by executing a deal only through a registered broker of a
recognized Stock Exchange or through a SEBI-registered sub-
broker.

 Contract Note:
A contract note describes the rate, date, time at which the trade was
transacted and the brokerage rate. A contract note issued in the
prescribed format establishes a legally enforceable relationship
between the client and the member in respect of trades stated in the
contract note. These are made in duplicate and the member and the
client both keep a copy each. A client should receive the contract
note within 24 hours of the executed trade.

 Split:
A Split is book entry wherein the face value of the share is altered to
create a greater number of shares outstanding without calling for
fresh capital or altering the share capital account. For example, if a
company announces a two-way split, it means that a share of the
face value of Rs 10 is split into two shares of face value of Rs 5
each and a person holding one share now holds two shares.

 Buy Back:

9
As the name suggests, it is a process by which a company can buy
back its shares from shareholders. A company may buy back its
shares in various ways: from existing shareholders on a
proportionate basis; through a tender offer from open market;
through a book-building process; from the Stock Exchange; or from
odd lot holders. A company cannot buy back through negotiated
deals on or off the Stock Exchange, through spot transactions or
through any private arrangement.

 Settlement Cycle:
The accounting period for the securities traded on the Exchange. On
the NSE, the cycle begins on Wednesday and ends on the following
Tuesday, and on the BSE the cycle commences on Monday and
ends on Friday. At the end of this period, the obligations of each
broker are calculated and the brokers settle their respective
obligations as per the rules, bye- laws and regulations of the
Clearing Corporation. If a transaction is entered on the first day of
the settlement, the same will be settled on the eighth working day
excluding the day of transaction. However, if the same is done on
the last day of the settlement, it will be settled on the fourth working
day excluding the day of transaction.

 Auction:
An auction is conducted for those securities that members fail to
deliver/short deliver during paying. Three factors primarily give rise
to an auction: short deliveries, un-rectified bad deliveries, and un-
rectified company objections.

10
  Rolling Settlement:
The rolling settlement ensures that each day's trade is settled by
keeping a fixed gap of a specified number of working days between
a trade and its settlement. At present, this gap is five working days
after the trading day. The waiting period is uniform for all trades. In a
Rolling Settlement, all trades outstanding at end of the day have to
be settled, which means that the buyer has to make payments for
securities purchased and seller has to deliver the securities sold. In
India, we have adopted the T+5 settlements cycle, which means that
a transaction entered into on Day 1 has to be settled on the Day 1 +
5 working days, when funds pay in or securities pay out takes place.

Advantages of Rolling Settlements

As mentioned earlier, this is the system practiced in developed
countries. Pay outs are quicker than in weekly settlements, and
investors will benefit from increased liquidity. The other benefit of the
modified system is that it keeps cash and forward markets separate.
In the current system, the trader has five days to square off his
transaction which leads to a high level of speculation as people even
without funds tend to "play" the market. During volatile markets,
especially in a bearish market, this often leads to a payment
problem which has dogged the Indian stock exchanges for a long
time. It provides for a higher degree of safety, and once
mechanisms such as futures and stock-lending become popular, it
would result in quality speculation and genuine investor interest.

 Short Selling:
Short selling is a legitimate trading strategy. It is a sale of a security
that the seller does not own, or any sale that is completed by the

11
delivery of a security borrowed by the seller. Short sellers take the
risk that they will be able to buy the stock at a more favorable price
than the price at which they "sold short. “The selling of a security
that the seller does not own, or any sale that is completed by the
delivery of a security borrowed by the seller, Short sellers assume
that they will be able to buy the stock at a lower amount than the
price at which they sold short.

 Bad Delivery:
SEBI has formulated uniform guidelines for good and bad delivery of
documents. Bad delivery may pertain to a transfer deed being torn,
mutilated, overwritten, defaced, or if there are spelling mistakes in
the name of the company or the transfer. Bad delivery exists only
when shares are transferred physically. In "Demat" bad delivery
does not exist.

 Dematerialization:
Dematerialization in short called as 'demat' is the process by which
an investor can get physical certificates converted into electronic
form maintained in an account with the Depository Participant. The
investors can dematerialize only those share certificates that are
already registered in their name and belong to the list of securities
admitted for dematerialization at the depositories.

 Depository:
The organization responsible to maintain investor's securities in the
electronic form is called the depository. In other words, a depository
can therefore be conceived of as a "Bank" for securities. In India
there are two such organizations viz. NSDL and CDSL. The
12
depository concept is similar to the Banking system with the
exception that banks handle funds whereas a depository handles
securities of the investors. An investor wishing to utilize the services
offered by a depository has to open an account with the depository
through Depository Participant.

 Depository Participant:
The market intermediary through whom the depository services can
be availed by the investors is called a Depository Participant (DP).
As per SEBI regulations, DP could be organizations involved in the
business of providing financial services like banks, brokers,
custodians and financial institutions. This system of using the
existing distribution channel (mainly constituting DPs) helps the
depository to reach a wide cross section of investors spread across
a large geographical area at a minimum cost. The admission of the
DPs involves a detailed evaluation by the depository of their
capability to meet with the strict service standards and a further
evaluation and approval from SEBI. Realizing the potential, all the
custodians in India and a number of banks, financial institutions and
major brokers have already joined as DPs to provide services in a
number of cities.

 OFFLINE TRADING
Offline trading got on the track in India in 1875 after the
establishment of Bombay Stock Exchange. Traditionally stock

13
trading is done through stock brokers, personally or through
telephones.
As number of people trading in stock market increase enormously in
last few years, some issues–

 location constrains

 busy phone lines

 miscommunication etc. started growing in stock broker

offices. Information technology (Stock Market Software) helped
stock brokers in solving these problems with Online Stock
Trading.

14
  ONLINE TRADING
Online trading arrived in India around Year 2000. Somewhere in the
nineties there was a whole move to make shares electronic and
fungible (like currency notes, a share is a share) and move them to
the dematerialized (demat) form. Slowly, from the physical world,
shares moved into the digital world at the NSDL. Then, trading
became electronic. First it was a few of the blue chips, then it was
most of the blue chips and slowly it has taken over most of the
market. New issues are today, exclusively electronic. If digitization
took care of the back end, it has also made life easy at the front end.
The act of placing buy/sell orders for financial securities and/or
currencies with the use of a brokerage's internet-based proprietary
trading platforms.

RAPID GROWTH
With introduction of online trading, the growth has been
exceptionally good for the stock markets in India.
• In the back of wide ranging reforms in regulation and market
practice as also the growing participation of foreign
institutional investment, stock markets in India have showed
phenomenal growth since the early 1990s.
• Investor base continued to grow from domestic and
international markets. The value of share trading witnessed a
sharp jump too.

15
 • Stock markets became intensely technology and process
driven, giving little scope for manual intervention that has
been the source of market abuse in the past.
• Electronic trading, digital certification, straight through
processing, electronic contract notes, online broking have
emerged as major trends in technology.
• Risk management became robust reducing the recurrence of
payment defaults.

• Product expansion took place in a speedy manner. Indian

equity markets now offer, in addition to trading in equities,
opportunities in trading of derivatives in futures and options in
index and stocks.
• Stock exchange reforms brought in professional management
separating conflicts of interest between brokers as owners of
the exchanges.

Essential component
The essential component of Internet-based trading is the interface
between broker, bank and depository participant, and as Net-based

trading becomes a reality this interface will develop.

16
Process of Online Trading

Fig 1.2 Online Trading Process

Why trade online?

 Access to Information, Research & statistics on the website

 Transparency

 Hassle Free

 Less Time consuming

 Control in the hands of Investor

 After Market Orders

 Trade any time anywhere

1
7
Advantages of online trading

 Internet trading facilitates clients to trade as and when they

want, provided they have a Net connection.
 Clients who trade through the Net will be able to do it with a
lower transaction cost compared to traditional brokers.
 This trading system helps the broker to expand his business.

 Without much capital investment, the broker will be able to

enlarge his client base.

 With just one office in the metro, the broker will be able to do
business with many times the number of existing clients.

Major issues
 Internet-based trading, to become really popular, should have
both seamless trading and seamless settlement; whereas
now only the former is possible this prevents the Internet
broking community from announcing large-scale reductions in
brokerage.
 Ease of trading and settlement along with reduction in
transaction costs is what investors look for in the new system.
Hence, bankers and DPs will have to change their systems to
enable seamless settlements.
 At present, when the client pays an advance deposit, the
broker fixes the exposure limit, and if there is a sudden
fluctuation in the share price, the client is not able to trade
unless funds move to the broker physically. This process
takes a minimum of two days, by which time the price would

18
 have changed. The ideal situation is where the client is able
to trade
on the basis of his deposit in the bank, which will be
accessible to the broker through networking.
Another serious issue is the efficiency of the Internet infrastructure in
the country, which affects the speed of execution.

19
 Chapter 2
OBJECTIVE OF THE STUDY

The objective of my project is divided into various parts:

20
 To get an overview of Indian Financial Market

 To gain an insight into operations of Pee Aar Securities Ltd.

 To know about the products and services offered by Pee Aar

Securities Ltd.

 To understand customers‟ perception about Pee Aar

Securities Ltd.

21
Scope of the Study

Looking into the day-by-day increasing demand for Online Trading,

PASL has successfully launched its state-of-the-art web based
trading platform, through its websites www.peeaar.in and
www.nowonline.in.
PRS Online is the techno savvy alternate of our broking services.
Online service is for a segment of investors who have different
expectations from an equity wealth manager restricting their
willingness and ability to sort to premium advisory services. PRS
has been serving its clients for over two decades in a variety of
disciplines.
PRS Online comes in really handy when an Investor/Trader is a self-
trader who would not be looking for a premium advisory service. The
big differential at PRS is that even here they have dealers who
would assist for them to trade independently, with just in case help.
PRS takes a client-focused approach to execution by providing
unmatched accountability and transparent dialogue.
 Team of experienced professionals dedicated to serving
the firm’s corporate finance clients
 Single point person responsible for each client

 Focus on best possible execution

Products and Services Offered

 Equity trading

 Derivative Trading.

22
 Commodities Trading.

 Mutual fund & IPO distribution.

 Depository services (ISO 9001:2000) for Shares &

Commodities.

 Real time internet trading.

 Web based accounting.

 Research support to the client through SMS and E-mails.

 Clearing services for trading members in NSE and Future &

Options.

23
 PASL Group
Overview

.
Fig 2.1 PASL Group

1. Equity
By individuals and firms in anticipation of income from dividends and capital gain
as the value of the stock rises. It also sometimes refers to the acquisition of
equity (ownership) participation in a private (unlisted) company or a start-up (a
company being created or newly created). When the investment is in infant
companies, it is referred to as venture capital investing and is generally
understood to be higher risk than investment in listed going-concern situations.
The equities held by private individuals are often held via mutual funds or other
forms of pooled investment vehicle, many of which have quoted prices that are
listed in financial newspapers or magazines; the mutual funds are typically
managed by prominent fund management firms. Such holdings allow individual
investors to obtain the diversification of the fund(s) and to obtain the skill of the
professional fund managers in charge of the fund(s).

2. Derivatives

19
Since derivatives instrument provide good leverage opportunity, it is a great tool
for speculation. Leverage is a double edge sword for which one requires an
equity advisor. Their advisors will also help them with various strategies like Bull
Spread, Bear Spread, Cover call writing, hedging strategies etc. This is to help
them to make better trading returns. The Equity Advisor doesn’t stop at just that,
he goes a step further to ensure that client’s trades are settled and traded with
proper margin in their account in a timely manner. This allows them to give them
a convenient single window service and their advisor becomes the single point
contact for all their equity related matters.

3. Insurance
MOSL through their insurance partners offers insurance coverage and wealth
creation opportunities to meet client’s different financial goals during the various
stages of client’s life. The plans offer them the control to manage their protection
and investment in one account. It is designed to remove their worries and making
them secure in the knowledge that they and their loved ones are protected
against any untoward events.

4. Mutual Fund
A mutual fund is just the connecting bridge or a financial intermediary that allows
a group of investors to pool their money together with a predetermined
investment objective. The mutual fund will have a fund manager who is
responsible for investing the gathered money into specific securities (stocks or
bonds). When they invest in a mutual fund, they are buying units or portions of
the mutual fund and thus on investing becomes a shareholder or unit holder of
the fund.
Mutual funds are considered as one of the best available investments as
compare to others they are very cost efficient and also easy to invest in, thus by
pooling money together in a mutual fund, investors can purchase stocks or
bonds with much lower trading costs than if they tried to do it on their own. But
the biggest advantage to mutual funds is diversification, by minimizing risk &
maximizing returns.

20
 5. IPO
IPO or 'New Issues' is it is better known, are a source of great enthusiasm and
excitement among investors across the country. At PRS IPO Desk, they carefully
analyze, prepare research notes and recommend IPO for their clients to invest
in. Their IPO Team does rigorous analysis on the quality of new issue, the
company's track record and its business plans. More importantly, it critically
evaluates the pricing of the issue and its friendliness. Given the background and
experience of PRS RESEARCH TEAM they are able to identify the Quality
issues out of a series of new issues that hit the market.

6. Depository Services
A depository can be compared to a bank. A depository holds securities (like
shares, debentures, bonds, Government Securities, units etc.) of investors in
electronic form. Besides holding securities, a depository also provides services
related to transactions in securities. A depository interfaces with the investors
through its agents called Depository Participant (DPs). If an investor wants to
avail the services offered by the depository, the investor has to open an account
with a DP. This is similar to opening an account with any branch of a bank in
order to utilize the bank's services.

7. Commodity
Multi Commodity Exchange (MCX) is an independent commodity exchange
based in India. It was established in 2003 and is based in Mumbai. The turnover
of the exchange for the period Apr-Dec 2011 was INR 32 Trillion. MCX offers
futures trading in Agricultural Commodities, Bullion, Ferrous & Non-ferrous
metals, Pulses, Oils & Oilseeds, Energy, Plantations, Spices and other soft
commodities.

8. Corporate Fixed Deposits

21
Corporate fixed deposits are similar to banking FD's, except that the money
invested is with a company and not a bank. Deposits under corporate FD's are
governed by the Companies Act under Section 58A. However, these deposits
are unsecured, On the other hand, companies FD's apart from giving a superior
interest rate than banks, also provide investors with a short-term deposits option
with only a six-month lock in period as well as the benefit of having no income
text deducted at source if the interest income is up to Rs 5,000 in one financial
year. Investments can also be spread in more than one company, so that interest
from one company does not exceed Rs 5,000.
Corporate FD' s however do not change their rates during a six month to one-
year period, which provides stability to the investment, these deposits, while are
not very large from a big company's point of view end up running more on a
constant addition and exclusion of investors. The interest paid by the companies
is usually on a half yearly basis. Majority of the companies who raise money via
fixed deposits have quarterly interest payouts and the interest vary from 9-13%
based on the option one chooses. With such large fixed deposit issues available
in the market, mutual funds may lose out in investors who invest in their fixed
income products, and give to competition within the fixed income market space.

Distinct Features of PASL’s Online Trading Products

 Online transfer of funds through multiple banks.

 Trade in NSE cash, NSE F&O and BSE on a single screen.

 Real time streaming quotes.

 Instant order/trade confirmations on the same window.

 Integrated DP, back office and trading a/c.

 Trade online and over phone.

 24x7 customer support center.

 Benefit against selling of stock.

22
Competition Information

MOST REPUTED PLAYERS IN THE MARKET

 HDFC SECURITIES
 RELIANCE MONEY
 KOTAK SECURITIES

HDFC Securities, a trusted financial service provider promoted by HDFC Bank

and JP Morgan Partners and their associates, is a leading stock broking
company in the country, serving a diverse customer base of institutional and
retail investors. HDFCsec.com provides investors a robust platform to trade in
Equities in NSE and BSE, and derivatives in NSE.

Reliance Money amongst the top 3 private sector financial companies in terms of
net worth. Through its state of art of online trading platform Reliance Money is
making its active foray into equity, commodity and forex broking. For the first time

23
in India R trade will provide the Indian investors the facility of trading in Equity,
Commodity, Forex, Derivatives, Mutual Funds, IPO‟s, Insurance and Credit
Cards on a single platform.

ICICI Direct is the sister concern of ICICI Bank. It is an online broking firm which
provides the investors to trade in equity, IPO‟s, mutual funds and derivatives
online. ICICI direct provides a 3 in 1 account that gives an investor:
Convenience, Speed, Control, Independence, and Trust.
Presently, it is the most preferred stock broker in the market as compared to
other stock brokers.

SWOT Analysis of Pee Aar Securities Ltd

 STRENGTHS

 One of the largest broking house of India

 Low charges on its products as compared to most of its

competitors.

 Advanced products given

 After sale services are very good. Investors need is taken care of
Clearing & Trading member of F&O segment of NSE.

 Trading terminals of two Commodity Exchanges MCX/NCDEX

 Market leader in IPO in Delhi

24
  Comprehensive approach towards investments advice for MFs

 Intensive equity research (technical as well as fundamental) by

investment analysts

 Commanding the faith of over 1,00,000 satisfied investors

 More than 1000 trading terminals of NSE, BSE, F&O, NCDEX and
MCX installed

 Highly dedicated workforce of employees and financial advisors in

PASL

 Strong presence in the business with a rich experience of over 20

years

 Equipped with hi-tech in-house Research wing and technological

resources providing complete research solutions

 Fast, Transparent and easy to use Online Internet Trading Platform

 WEAKNESSES

 Lacks awareness amongst most of the people.

 Dual portal system of trading which causes problems
sometimes.

 OPPORTUNITIES

 India has one of the world's lowest transaction cost based on

screen based transaction, paperless trading and T+2 settlement
cycle

25
  Growing retail investor participation, growing internet usage, faster
telecom connectivity and increasing comfortable levels with internet
trading.
 Great enthusiasm about our membership and business dealings
with commodity exchanges
 Great opportunities also lie in the field of portfolio management
services.

 THREATS

 Unpredictable markets.
 Inflation risk.
 Banks

26
The scope of the project is to study and know about Indian Stock
Market and Indian Financial System. By studying the Online Trading, a clear
option of dealing in stock exchange is been understood. Unlike olden days the
concept of trading manually is been replaced for fast interaction of shares of
shareholder. By this one can access anywhere and know the present dealings in
shares.
In outcry, the broker has to buy or sell securities for which he has received the
orders. For this, the broker or his authorized representatives goes to the stock
exchange. Basically the broker shouts while buying or selling the securities. The
floor of the stock exchange is divided into a number of market also „post pit‟ or
wing based on particular securities dealt there.
In the post pit or wing, the broker using „open outcry‟ method makes an offer or
bid price. For making the necessary bargain, he codes his purchase or sales
price, also known as offer or bid price. The dealer, to whom the price is quoted,
quotes his own price quotation of the dealer suits the broker, he may lose the
bargain. If he is not satisfied with the quote price he may turn to some other
dealer. On the close of the bargain, the dealer sell as well as the broker makes a
brief notes of the particulars of the deal. Such notes are made on some pad and
on it the number of shares, the price agreed upon, the name of the party, what
membership number etc., are noted.
The disadvantages of outcry system are it lack transparency, the scope of
manipulation, Inaudibility and also speculation and malpractice is more, in order
to overcome the above problems, online trading came in to existence. Hence the

27
need to study the advantages of online trading system and its importance in
making the market operations and smooth while retaining the flexibility of
conventional trading practices.
Since the year 2000 a big boom has been witnessed in the Indian Stock Market
when the market showed the coming up of Online Trading System. Many online
stock trading companies came but initially due to lack of online trading some
companies vanished and some survived. The companies which survived are
getting the handsome returns also attracting the foreign Investment Companies.
Nowadays this sector is facing cut-throat competition and also provides huge
growth prospects. The study then goes to evaluate and analyze the findings so
as to present a clear picture of the trends in the online trading sector.

Managerial Usefulness of the Study

 This study can assist the management in decision making process.

 This study gives information about the competitors in the industry to the
management.

 This study can help the management to innovate new ideas regarding
products and services which can further fulfill the need of the existing as
well as the potential investors.
 This study provides a comparative analysis of major brokerage houses in
the market to the management.
 This study gives a SWOT analysis of the organization to the management.

28
 Chapter III
LITERATURE REVIEW

29
Gupta (1972) in his book has studied the working of stock exchanges in India
and has given a number of suggestions to improve its working. The study
highlights the' need to regulate the volume of speculation so as to serve the
needs of liquidity and price continuity. It suggests the enlistment of corporate
securities in more than one stock exchange at the same time to improve liquidity.
The study also wishes the cost of issues to be low, in order to protect small
investors Panda (1980) has studied the role of stock exchanges in India before
and after independence. The study reveals that listed stocks covered four-fifths
of the joint stock sector companies. Investment in securities was no longer the
monopoly of any particular class or of a small group of people. It attracted the
attention of a large number of small and middle class individuals. It was observed
that a large proportion of savings went in the first instance into purchase of
securities already issued.

Gupta (1981) in an extensive study titled `Return on New Equity Issues' states
that the investment performance of new issues of equity shares, especially those
of new companies, deserves separate analysis. The factor significantly
influencing the rate of return on new issues to the original buyers is the `fixed
price' at which they are issued. The return on equities includes dividends and
capital appreciation. This study presents sound estimates of rates of return on
equities, and examines the variability of such returns over time.

30
Jawaharlal Lal (1992) presents a profile of Indian investors and evaluates their
investment decisions. He made an effort to study their familiarity with, and
comprehension of financial information, and the extent to which this is put to use.
The information that the companies provide generally fails to meet the needs of a
variety of individual investors and there is a general impression that the
company's Annual Report and other statements are not well received by them.

L.C. Gupta (1992) revealed the findings of his study that there is existence of
wild speculation in the Indian stock market. The over speculative character of the
Indian stock market is reflected in extremely high concentration of the market
activity in a handful of shares to the neglect of the remaining shares and
absolutely high trading velocities of the speculative counters. He opined that,
short- term speculation, if excessive, could lead to "artificial price". An artificial
price is one which is not justified by prospective earnings, dividends, financial
strength and assets or which is brought about by speculators through rumors,
manipulations, etc. He concluded that such artificial prices are bound to crash
sometime or other as history has repeated and proved.

Nabhi Kumar Jain (1992) specified certain tips for buying shares for holding and
also for selling shares. He advised the investors to buy shares of a growing
company of a growing industry. Buy shares by diversifying in a number of growth
companies operating in a different but equally fast growing sector of the
economy. He suggested selling the shares the moment company has or almost
reached the peak of its growth. Also, sell the shares the moment you realize you
have made a mistake in the initial selection of the shares. The only option to
decide when to buy and sell high priced shares is to identify the individual merit
or demerit of each of the shares in the portfolio and arrive at a decision.

31
Pyare Lal Singh (1993) in the study titled, Indian Capital Market - A Functional
Analysis, depicts the primary market as a perennial source of supply of funds. It
mobilizes the savings from the different sectors of the economy like households,
public and private corporate sectors. The number of investors increased from 20
lakhs in 1980 to 150 lakhs in 1990 (7. 5 times). In financing of the project costs of
the companies with different sources of financing, the contribution of the
securities has risen from 35.01% in 1981 to 52.94% in 1989. In the total volume
of the securities issued, the contribution of debentures / bonds in recent years
has increased significantly from 16. 21% to 30.14%.

Sunil Damodar (1993) evaluated the 'Derivatives' especially the 'futures' as a

tool for short-term risk control. He opined that derivatives have become an
indispensable tool for finance managers whose prime objective is to manage or
reduce the risk inherent in their portfolios. He disclosed that the over-riding
feature of 'financial futures' in risk management is that these instruments tend to
be most valuable when risk control is needed for a short- term, i.e., for a year or
less. They tend to be cheapest and easily available for protecting against or
benefiting from short term price. Their low execution costs also make them very
suitable for frequent and short term trading to manage risk, more effectively.

R. Venkataramani (l994) disclosed the uses and dangers of derivatives. The

derivative products can lead us to a dangerous position if its full implications are
not clearly understood. Being off balance sheet in nature, more and more
derivative products are traded than the cash market products and they suffer
heavily due to their sensitive nature. He brought to the notice of the investors the
'Over the counter product' (OTC) which are traded across the counters of a bank.
OTC products (e.g. Options and futures) are tailor made for the particular need of

32
a customer and serve as a perfect hedge. He emphasized the use of futures as
an instrument of hedge, for it is of low cost

Amanulla & Kamiah (1995) conducted a study to examine the Indian stock
market efficiency by using Ravallion co integration and error correction market
integration approaches. The data used are the RBI monthly aggregate share
indices relating five regional stock exchanges in India, viz Bombay, Calcutta,
Madras, Delhi, Ahmedabad during 1980-1983. According to the authors, the co-
integration results exhibited a long-run equilibrium relation between the price
indices of five stock exchanges and error correction models indicated short run
deviation between the five regional stock exchanges. The study found that there
is no evidence in favor of market efficiency of Bombay, Madras, and Calcutta
stock exchanges while contrary evidence is found in case of Delhi and
Ahmedabad.

Pattabhi Ram. (1995) emphasized the need for doing fundamental analysis and
doing Equity Research (ER) before selecting shares for investment. He opined
that the investor should look for value with a margin of safety in relation to price.
The margin of safety is the gap between price and value. He revealed that the
Indian stock market is an inefficient market because of the absence of good
communication network, rampant price rigging, and the absence of free and
instantaneous flow of information, professional broking and so on. He concluded
that in such inefficient market, equity research will produce better results as there
will be frequent mismatch between price and value that provides opportunities to
the long-term value oriented investor. He added that in the Indian stock market
investment returns would improve only through quality equity research.
Karajazyk (1995) investigated one measure of financial integration between
equity markets. He used a multifactor equilibrium Arbitrage pricing theory to
define risk and to measure deviations from the “Law of one price”. He applied the
integration measure to equities traded in 24 countries (four developed and 20
emerging). He found that the measure of market segmentation tends to be much

33
larger for emerging markets than for developed markets, which flows into or out
of the emerging markets. The measure tends to decrease over time, which is
consistent with growing levels of integration. Large values of adjusted mis-pricing
occur around periods in which capital controls change significantly. Finally, he
found asymmetric integration relationship; stock markets of developed nations
are more integrated than those of emerging nations.

Debjit Chakraborty (1997) in his study attempts to establish a relationship

between major economic indicators and stock market behaviour. It also analyses
the stock market reactions to changes in the economic climate. The factors
considered are inflation, money supply, and growth in GDP, fiscal deficit and
credit deposit ratio. To find the trend in the stock markets, the BSE National
Index of Equity Prices (Natex) which comprises 100 companies was taken as the
index. The study shows that stock market movements are largely influenced by,
broad money supply, inflation, C/D ratio and fiscal deficit apart from political
stability. Redel (1997) concentrated on the capital market integration in
developing Asia during the period 1970 to 1994 taking into variables such as net
capital flows, FDI, portfolio equity flows and bond flows. He observed that capital
market integration in Asian developing countries in the 1990‟s was a
consequence of broad-based economic reforms, especially in the trade and
financial sectors, which is the critical reason for economic crises which followed
the increased capital market integration in the 1970s in many countries will not
be repeated in the 1990s. He concluded that deepening and strengthening the
process of economic liberalization in the Asian developing countries is essential
for minimizing the risks and maximizing the benefits from increased international
capital market integration.

Avijit Banerjee (1998) reviewed Fundamental Analysis and Technical Analysis to

analysis the worthiness of the individual securities needed to be acquired for

34
portfolio construction. The Fundamental Analysis aims to compare the Intrinsic
Value (I.V.) with the prevailing market price (M.P) and to take decisions whether
to buy, sell or hold the investments. The fundamentals of the economy, industry
and company determine the value of a security. If the 1.V is greater than the
M.P., the stock is underpriced and should be purchased. He observed that the
Fundamental Analysis could never forecast the M.P. of a stock at any particular
point of time. Technical Analysis removes this weakness. Technical Analysis
detects the most appropriate time to buy or sell the stock. It aims to avoid the
pitfalls of wrong timing in the investment decisions. He also stated that the
modern portfolio literature suggests 'beta' value p as the most acceptable
measure of risk of scrip. The securities having low P should be selected for
constructing a portfolio in order to minimize the risks. Madhusudan (1998) found
that BSE sensitivity and national indices did not follow random walk by using
correlation analysis on monthly stock returns data over the period January 1981
to December 1992.

Arron Jethmalani (1999) reviewed the existence and measurement of risk

involved in investing in corporate securities of shares and debentures. He
commended that risk is usually determined, based on the likely variance of
returns. It is more difficult to compare 80 risks within the same class of
investments. He is of the opinion that the investors accept the risk measurement
made by the credit rating agencies, but it was questioned after the Asian crisis.
Historically, stocks have been considered the riskiest of financial instruments. He
revealed that the stocks have always outperformed bonds over the long term. He
also commented on the 'diversification theory' concluding that holding a small
number of non-correlated stocks can provide adequate risk reduction. A debt-
oriented portfolio may reduce short term uncertainty, but will definitely reduce
long-term returns. He argued that the 'safe debt related investments' would never
make an investor rich. He also revealed that too many diversifications tend to
reduce the chances of big gains, while doing little to reduce risk. Equity investing

35
is risky, if the money will be needed a few months down the line. He concluded
his article by commenting that risk is not measurable or quantifiable. But risk is
calculated on the basis of historic volatility. Returns are proportional to the risks,
and investments should be based on the investors' ability to bear the risks, he
advised.

Suresh G Lalwani (1999) emphasized the need for risk management in the
securities market with particular emphasis on the price risk. He commented that
the securities market is a 'vicious animal' and there is more than a fair chance
that far from improving, the situation could deteriorate. Bhanu Pant and Dr. T.R.
Bishnoy (2001) analyzed the behavior of the daily and weekly returns of five
Indian stock market indices for random walk during April 1996 to June 2001.They
found that Indian Stock Market Indices did not follow random walk.

Nath and Verma (2003) examine the interdependence of the three major stock
markets in south Asia stock market indices namely India (NSE-Nifty) Taiwan
(Taiex) and Singapore (STI) by employing bivariate and multivariate co
integration analysis to model the linkages among the stock markets, no co -
integration was found for the entire period (daily data from January 1994 to
November 2002). They concluded that there is no long run equilibrium.

Debjiban Mukherjee (2007) made a comparative Analysis of Indian stock market

with International markets. His study covers New York Stock Exchange (NYSE),
Hong Kong Stock exchange (HSE), Tokyo Stock exchange (TSE), Russian Stock
exchange (RSE), Korean Stock exchange (KSE) from various socio- politico-
economic backgrounds. Both the Bombay Stock exchange (BSE) and the
National Stock Exchange of Indian Limited (NSE) have been used in the study as
a part of Indian Stock Market. The main objective of this study is to capture the
trends, similarities and patterns in the activities and movements of the Indian
Stock Market in comparison to its international counterparts. The time period has

36
been divided into various eras to test the correlation between the various
exchanges to prove that the Indian markets have become more integrated with
its global counterparts and its reaction are in tandem with that are seen globally.
The various stock exchanges have been compared on the basis of Market
Capitalization, number of listed securities, listing agreements, circuit filters, and
settlement. It can safely be said that the markets do react to global cues and any
happening in the global scenario be it macroeconomic or country specific (foreign
trade channel) affect the various markets.

Juhi Ahuja (2012) presents a review of Indian Capital Market & its structure. In
last decade or so, it has been observed that there has been a paradigm shift in
Indian capital market. The application of many reforms & developments in Indian
capital market has made the Indian capital market comparable with the
international capital markets. Now, the market features a developed regulatory
mechanism and a modern market infrastructure with growing market
capitalization, market liquidity, and mobilization of resources. The emergence of
Private Corporate Debt market is also a good innovation replacing the banking
mode of corporate finance. However, the market has witnessed its worst time
with the recent global financial crisis that originated from the US sub-prime
mortgage market and spread over to the entire world as a contagion. The capital
market of India delivered a sluggish performance.

37
 Chapter IV
RESEARCH METHODOLOGY

38
Research methodology simply refers to the practical “how” of any given piece of
research. More specifically, it’s about how a researcher systematically designs
a study to ensure valid and reliable results that address the research aims and
objectives. 

Research Design
 NON-PROBABILITY

The non-probability respondents have been researched by selecting the

persons who does the stock trading. Those persons who do not trade in
stocks have not been interviewed.

 EXPLORATORY AND DESCRIPTIVE RESEARCH

The research is primarily both exploratory and descriptive in nature. The

sources of information are both primary and secondary.
The objective of the exploratory research is to gain insights and ideas.

The objective of the descriptive research study is typically concerned with

determining the frequency with which something occurs.
A well-structured questionnaire was prepared for the primary research and
personal interviews were conducted to collect the responses of the target

39
Sample Size
The sample size taken for the purpose of questionnaire is 100 clients of Pee Aar
Securities Ltd. On the basis of their responses, the conclusions have been
drawn. Sampling method used is convenient sampling

Data Collection
To determine the appropriate data for research mainly two kinds of data was
collected namely primary & secondary data as explained below:

 PRIMARY DATA

Primary data are those, which were collected afresh & for the first time
and thus happen to be original in character. However, there are many
methods of collecting the primary data; all have not been used for the
purpose of this project. The ones that have been used are questionnaire
through convenient sampling

o SECONDARY DATA

Secondary data refers to data that is collected by someone other than

primary user
Here secondary data was collected through newspaper, articles, blogs.

 STATISTICAL TOOLS USED

The main statistical tools used for the collection and analyses of data in
this project are:

• Pie Charts and other Charts

• Tables

40
 Chapter V

COMPANY PROFILE

41
Pee Aar Securities Ltd. is a Delhi based full-fledged services brokering firm
incorporated in the year 1995. Its clientele comprises high net worth individuals,
corporate, NRI, mutual funds, as well as other financial institutions. The company
is one of the leading brokerage firms in the country serving investors both in
India and overseas. With an impressive track record in terms of services to its
broad customer-centric-approach and capital growth through structured
counseling and focus.
Its corporate philosophy has focus on their quality service with a `feel`, thus,
justifying fully the very motto of their establishment, i.e.
P – Promptness, R – Reliability, S - Satisfaction

All this is achieved by a highly dedicated team of professionals supported by a

high tech infrastructure. Its customized approach respects the individuality of
their client, who has uniqueness in his own sense, and upholds his comfort &
satisfaction level. Its key objective is to identify emerging growth opportunities for
wealth creations without exposing to undue risk.
Its strength lies in their prominence as a

 Member of National Stock Exchange.

 Clearing & Trading member of F&O segment of NSE.

42
  A registered depository participant of NSDL & hence offers full-fledged
depository services.

 Trading terminals of two Commodity Exchanges MCX/NCDEX.

 Comprehensive approach towards investments advice for MFs.

 A separate section for IPO segment of the financial sector.

 Intensive equity research (technical as well as fundamental) by investment

analysts.

 Besides, our other activities include Trading in BSE as well as arbitration

etc.

It is, therefore, no surprise that they have achieved consistent & exceptional
growth so far & are confident to achieve newer heights.

History

 Founded in 1995

 Founders – Mr. Vipul Aggarwal and Ashok Kumar Gupta

 Both the founders are well qualified with more than 20 years of experience
in capital markets.

Founders & Promoters

“A journey of a thousand miles always begins with one wise

step”

Founded in 1995, by

43
Mr. Vipul Aggarwal & Mr. Ashok Kumar Gupta

Mr. Vipul Aggarwal, Chairman and Managing Director of Pee Aar Securities Ltd.
and Mr. Ashok Kumar Gupta, Chairman and Managing Director of Hi-tech
Securities Ltd. are the founders and promoters of Pee Aar Securities. Both are
well qualified. They are an embodiment of professional excellence. They are the
visionaries who planted the sapling of the giant tree called PRS. With rock solid
reserve and firm commitment, they have shaped their vision to reality. They have
a rich experience of more than 20 years in the capital market. Their exceptional
leadership skills and outstanding commitment has made PASL as one of the
leading investment solutions and services provider. They both assign top priority
to the principles of transparency, honesty and integrity in all our dealings.

Core Purpose & Values

Vision
At Pee Aar Securities Limited, they remain committed to be the most trusted &
globally reputed Stock Broker House by offering Best Knowledge, Maximum
Returns, Lasting Client Satisfaction and Nothing Else by working collectively as a
Team along with their esteemed Sub-Brokers. They aim to be a global major in
providing complete investment solutions, with relentless focus on investor care,
through superior efficiency and complete transparency.

CORE VALUES

44
Management

Vipul Aggarwal : Director

(B.SC,L.LB)
Ashok Kumar Gupta : Director
(MA-ECO,M.PHIL)

Chapter VI

45
 ANALYSIS AND INTERPRETATION OF THE DATA

1. What are your avenues of investment?

Avenues of Investment Percentage

EQUITY 40
COMMODITIES 10

46
 MUTUAL FUNDS 20
IPO 10
DERIVATIVES 20

Avenues of Investments
90%
80%
70%
60%
50%
40% 40%
30% 10%
20% 20%
10% 20%
10%
0%
EQUITY COMMODITIES MUTUAL FUNDS IPO DERIVATIVES

FIG 5.1
INTERPRETATION: - Out of 100, 40 people invest in equity,10 invest in
commodities,20 invest in mutual funds .10 in IPO and 20 in derivatives.

47
2.Are you an investor or trader?

Occupation Percentage

INVESTOR 60
TRADER 40

Occupation

Invester Trader
Fig 5.2

Interpretation: - 60 people out of 100 are investors and 40 are traders.

3. Mode of Investing(B)

Mode of Investment Percentage

48
 ONLINE 45
OFFLINE 55

Percentage

Online Offline

FIG 5.3

Interpretation:-Out of 100,45 people prefer online mode of investment and 55

people prefer offline mode of investment.

4.Brand Recall Ranking

49
 Brand Individual Percentage
KOTAK 40
PEE AAR 5
ICICI 35
RELIANCE 20

INDIVIDUAL PERCENTAGE
45

40

35

30

25

20

15

10

0
KOTAK PEE AAR ICICI RELIANCE

INDIVIDUAL PERCENTAGE

FIG 5.4

Interpretation: - The investors rank the Pee Aar Securities as their seventh
preference.

50
 5.For how long you have been investing with PEEAAR?

Period of Investment Percentage

MORE THEN 1 YEAR 40
LE THEN 1 YEAR 60

Period Of Investment

40%
MORE THAN 1 YEAR
LESS THAN 1 YEAR
60%

FIG 5.5

Interpretation: - Out of 100, 40 people have been investing from more than 1
year. On the other hand, 60 people have been investing from less than a year
ago

51
 6. What is your volume of trade weekly?

Weekly Trade Volume

35%
30%
25%
20%
15%
10%
5%
0%
LESS THAN ABOVE 10
1-5 LAKHS 5-10 LAKHS
1 LAKH LAKHS
Weekly Trade
20% 23% 32% 25%
Volumee

:
FIG 6.6

Interpretation: - Out of 100, 20 people have weekly trade volume of less than 1
lakh rupees,23 have it between 1 to 5 lakhs ,32 have it in the range of 5 to 10
lakh rupees and 25 people have weekly trade volume of more than 10 lakh
rupees.

52
 6. Are you taking the services of Relationship Manager?

RM Services Percentage
YES 89
NO 11

Percentage
100
90
80
70
60
50
40
30
20
10
0
Yes No

Percentage

FIG 5.6
Interpretation: - Out of 100, 89 people engage in services of relationship
manager while 11 does not.

53
7. Rate the services provided by PEEAAR Securities.

Services of PEE AAR Percentage

SATISFACTORY 30

POOR 5

EXCELLENT 20

GOOD 45

SERVICES OF PEEAAR

POOR
5% EXCELLENT
20%
SATISFACTORY
30%

GOOD
45%

FIG 5.7

54
Interpretation: - Out of 100, 30 find services of PEE AAR satisfactory,20 find it
excellent,45 find it good and 5 find it poor.

8.How did you come to know about PEE AAR?

Mode Percentage
FRIENDS&FAMILY 40
NEWSPAPER 20
INTERNET 15
OTHERS 25

PERCENTAGE
45
40
35
30
25
20
15
10
5
0
FRFIENDS&FAMILY NEWSPAPER INTERNET OTHERS

PERCENTAGE

FIG 5.8
Interpretation: - Out of 100, 40 people got to know about PEE AAR through
friends and family, 20 got to know through newspapers, 15 through internet while
25 got to know about it through other modes.

55
9.In which exchange do you prefer trading.
Trading Exchange Percentage
BSE 45
NSE 55

PERCENTAGE

BSE NSE

FIG 5.9

Interpretation: - Out of 100, 45 people prefer trading on BSE and 55 prefer

trading on NSE.

56
10.Would you recommend PEE AAR to others?

Recommend PEE Percentage

AAR

YES 85

NO 15

PERCENTAGE
100

90

80

70

60

50

40

30

20

10

0
YES NO

PERCENTAGE

Interpretation: - Out of 100, 87 said they would recommend

PEE AAR to others while 13 said they would not
recommend it.

57
 Chapter VII

LIMITATIONS OF THE STUDY

58
Limitations of the Study

1. There is lack of awareness among people about investing in stock market.

So the people who are aware of such things were found in specific areas
for survey purposes.

2. Most people are comfortable with traditional system in small towns and
like to trade from their respective brokers, hence not providing a true
opinion of theirs.

3. Most of the people they are not techno savvy. Though Internet penetration
is growing still it is not at the required level.

4. Some of the respondents who did not do online trading were able to
respond to only some questions.

5. Due to wide spread information of the data, the scope of project becomes
very wide.

6. Given the time constraints, all the information could not be gathered.

7. The study is confined to online trading procedure only.

8. Problems of listing are not covered due to limited time and to keep the
study in manageable limits.
9. The data is collected from the primary and secondary sources and thus is
subject to slight variation than what the study includes in reality.
10. The observations drawn are of past and present years only.

11. Detailed study on the topic was not possible due to limited size of the
project.

59
 Chapter VIII

CONCLUSIONS AND RECOMMENDATIONS

60
CONCLUSION

The findings from the study of the project and above analysis can be
listed as below: -

 Pee Aar Securities is among the largest broking house of India.

 It is a market leader in IPO in Delhi.

 The Company is growing at a very rapid rate. Its performance is much

satisfactory and is giving a very tough competition to the other corporate
stock brokers in the market. It has witnessed a growth not only the
financial revenue but also in the number of clients and the employee
strength. It has low charges on its products as compared to most of its
competitors and advanced products are given by the company.

 It provides 24x7 customer support center. At Pee Aar Securities,

customers come first. And their satisfaction is not just their top priority but
also the driving force for them, every single day. The after sale services
are very good. Investors need is taken care off.

 It has a highly dedicated workforce of employees and financial advisors. It

has a team of experienced professionals dedicated to serving the firm’s
corporate finance clients.

 It provides the facility of Relationship manager. This is one of the unique

services that PASL offers to its customers. Every customer is provided
with a relationship manager, where in the customers can contact these
managers at any time of the day to get information on the market or get
their queries clarified.

 It is equipped with hi-tech in-house Research wing and technological

resources providing complete research solutions. Since the launch of their
website, www.peeaar.in and their online trading platform, they have
invested in building a technology platform. Their trader terminal is an

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 application which allows customers to trade on both the BSE and the NSE.
It has a fast, transparent and easy to use Online Internet Trading Platform.

RECOMMENDATIONS

The online trading is growing with a rapid pace with the rising level of education
among the customers. The other factors being that the Indian Investor nowadays
wants to deal himself in trading rather than depending upon other middlemen.
They also consider the factors like time saving in doing the online transactions,
convenience etc. Although some people feel that online trading is not secure but
the people doing the trading online is happy about the increasing security
concerns among the companies. The year has not been so good for the stock
market and the SENSEX and NIFTY has been dipping and affecting the business
negatively for these companies. This is due to the fact that at these times people
do not prefer to open the DMAT and Trading accounts. So the companies have
to reduce their account opening fees to attract more and more customers. Also
people trade very less in the bearish market and the company’s profits against
brokerage fees soars downwards. It is also a found fact that during the bearish
market the ratio of online trading becomes very less. Also there is an intense
competition among the companies and the companies come up with new and
new promotion schemes such as discounted and negotiable brokerages, zero
balance accounts, waiving a/c opening fee and AMC etc. As the internet
penetration is growing in India this business holds a huge potential for growth.

New ideas are to be implemented to catch the customers. The strategy of giving
more benefits to the high end customers is very useful. Because stock market is
a volatile market, anything can happen to this market. But then again if anyone
study the market well he can earn a lot. Again like every coin has its two sides,

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similarly every financial instrument has its own features, its advantage &
disadvantage. So finally investor himself/herself has to decide where to invest.

The mantra for success in the current situation will be educating the
customers about the benefits of online trading and the amount of ROI that
can be generated through it.

The total trading volume of brokerage companies has increased from US$1239.1
billion in 2008 to US$ 1492.1 billion in 2011, and is expected to reach US$
6535.7 billion by 2023.

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BIBLIOGRAPHY

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The following sources have been sought for the preparation of this

report:

1. Nasser, David S., 2001, “How to Get Started in Electronic Day Trading”,
McGraw-Hill, London

2. Khan, M.Y., 2006, “Indian Financial System 5E”, Tata McGraw-Hill

Education, London

3. Kothari. C. R, “Research Methodology”, New Age International (P) Ltd.,

New Delhi (2008 Edition).
4. Harper W. Boyd, Jr. Ralph Westfall, Stanley F. Stasch,” Marketing
Research”, 2007

Websites:

 peeaar.in/nse-currency-derivative.html

 nseindia.com

 nseindia.com/content/indices/ind_niftylist.csv

 tradersedgeindia.com/bse_sensex.htm

 indiahowto.com/what-is-sensex-nifty.html

 indiabulls.com/default.htm

 icicidirect.com/newsitecontent/Home/Home.asp

 Wikipedia.org
 Studynama.com
 INDIAN STOCK MARKET -REVIEW OF LITERATURE | bhushan pawar -
Academia.edu

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QUESTIONNAIRE

66
NAME:

SEX: F M CONTACT NO:

MARITAL STATUS:
AGE:

1. For how long you have been investing with PEEAAR?

67
2. In which Exchange do you prefer trading?
NSE BSE
3. What are your avenues of investment ?

Equityy
Commodities s
Mutual Fund s
IP O
Derivative s
Any other r

4. Your major trading platform?

OFFLINE ONLINE

5. What are the changes would you like to recommend in online/offline

trading system?

6. What is your volume of trade weekly?

Less than 1 lakh

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 Between 1 - 5 lakhs

Between 5 – 10 lakhs

Above 10 lakhs

7. Are you taking the services of a relationship manager?

NO

YE S

8. If yes, are you satisfied with their services ?

NO

9. R ate the services provided by PEEAA R Securities s -

EX C ELLENT G OOD SATISFACTORY

BA D

YES

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10. Your recommendations and suggestions -

70
71