CHAPTER-I

INTRODUCTION

1
INTRODUCTION
Online trading: definition is a basic understanding of online trading processes. Since the

invention of Internet people have Beena able to do practically everything virtually. Due to

the Internet online trading has become one of the most popular ways to trade as far as stock

trading turned out to be as available to independent investors as possible. Online trading

gives both beginners who've just had a single day trading course and advanced traders an

opportunity to trade stocks, options, forex and futures all over the world without physical

presence of a broker and with much lower commissions, because everything is done online

Internet trading commissions are clearly posted on the websites of the various services, and

are typically a fixed rate charge, depending upon the type of security being traded and the

size of trade. In theory, therefore, an Interest investor always knows what commission he is

being charged on each trade. Internet investors can take as much time as they would like to

take prior to

placing a trade order. Similarly, the online investor likely does not have to worry that his

broker is making unauthorized trades.

Since there is no individual broker making a commission, the only person who is authorized

to trace the account is the actual investor. Furthermore, the internet investor can never

become a victim of excessive trading (where for the broker) since the investor maintains total

control over the number of transactions which take place in the account.

All of these positive features of internet trading may lead the unwary investor to believe that

Internet trading is a way to take control of their finances and save more money in the process.

Unfortunately, this is not always the case. The advantages of Internet stock trading have also

its weaknesses and these weaknesses present significant drawbacks for the average investor.

First and foremost, the average investor is not an expert in the financial markets. There is a

danger for allowing the autonomy of online trading to hull you into the belief that you are an

2
expert investor. An online investor sitting at home at a personal computer also foregoes

proper investment advice and financial planning, perhaps among the most valuable services

provided by traditional brokers.

There are, of course, additional risks relative to performing transactions over the Internet

especially on a shared computer. Those people whom investors have provided their account

number and password can freely trade that account while the investor will have little, if any,

resource against the brokerage firm for the breach of security.

3
 NEED OF THE STUDY

The present study to review the online trading procedure a case study of ONLINE

TRADING at IIFL LIMITED., as the exchange has changed it‘s trading from it and there is

need to assess the performance of the capital market.

Maintaining good records requires discipline, just like good trading. Unfortunately, many

commodity traders don‘t take the time to track their trading history, which can offer a wealth

of information to improve their odds of success Most professional traders, and those who

consistently make money from trading commodities, keep diligent records of their trading

activity. The same cannot be said for the masses that consistently lose at trading

commodities.

4
 SCOPE OF THE STUDY

The market standing of the company studied in the order to give a better scope to the

Analysis is helpful to the investors, share holders, creditors for the rating of the company.

Investor can assess the company financial strength and factors that affect the company. Scope

of the study is limited. We can say that 70% of the analysis is proved good for the investor,

but the 30% depends upon market sentiment. The topic is selected to analyses the factors that

affect the future EPS of a company based on fundamentals of the company.

5
 OBJECTIVES OF THE STUDY

 To analyze the changes in trading after the exchange shifted from outcry to online

trading system.

 To study the functions of through various departments.

 To know the online screen based trading system adopted by and about its

communication facilities.

 To know appropriate configuration to set the network, which would link the to

individual / members.

 To study the latest and future development in the stock exchange trading system. To

acknowledge the volatility of India's economic alternative.

 To concentrate on replacing the framework with the internet.

6
RESEARCH METHODOLOGY
The study is both descriptive and analytical in nature. It is a blend of primary data and
secondary data. The primary data has been collected personally by approaching the financial
risk management who are engaged in share market. The data are collected with a carefully
prepared questionnaire. The secondary data has been collected from the books, journals and
websites which deal with financial risk management.

Source of data
Type of study
Primary Sources: The primary data was collected through structured unbiased questionnaire
and personal interviews of investors. For this purpose questionnaire included were both open
ended & close ended & multiple-choice questions.

Secondary method: The secondary data collection method includes:

 Websites
 Journals
 Text books
Method Used For Analysis of Study
The methodology used for this purpose is Survey and Questionnaire Method. It is a time
consuming and expensive method and requires more administrative planning and
supervision. It is also subjective to interviewer bias or distortion.

Sampling Unit: Businessmen, Government Servant, Retired Individuals

Statistical Tools: MS-excel and SPSS are used to analyze the data.
RESEARCH TOOLS
 STOCK SCANNERS
 BACK TESTING TOOLS
 HEAT MAPS
 FOREX TRADING
 FINANCIAL NEWS

 POSITION SIZING CALCULATIONS

7
 CHAPTER-II

REVIEW OF LITERATURE

8
THEORITICAL BACKGROUND

Before getting in to the online trading we should know some things about the internet,

E-commerce and etc.

Internet

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

and millions of computers and persons, to mega sources of information. This technology

shrinks vast distances, accelerating the pace of business reforms and revolutionizing the way

companies are managed. It allows direct, ubiquitous links to anyone anywhere and anytime

to build up interactive relationships.

A combination of time and space, called the Internet, promises to bring unprecedented

changes in our lives and business. The Internet or net is an inter-connection of computer

communication networks spanning the entire globe, crossing all geographical boundaries. It

has re-defined the methods of communication, work study, education, business, leisure,

health, trade, banking, commerce and what not it is virtually changing everything and we are

living in dot.com age. Net being an interactive two way medium, through various websites,

enables participation by individuals in business to business and business to consumer

commerce, visit to shopping arcades, games, etc. in cyber space even the information can be

copied, downloaded and retransmitted.

The use of the Internet has grown 2000 percent in the last decade and is currently growing at

10 percent per month. In India, growth of Internet is of recent times.

It is expected to bring changes in every functional area of business activity including

management and financial services. It offers stock trading at a lower cost. Internet can

change the nature and capacity of stock broking business in India.

TRADING SESSION

9
Trading timings are from 9:55 A.M. to 3:30 P.M. on all 5 days of the trading period. Monday

to Friday is the trading period in all the stock exchanges. SEBI has stipulated that all the

stock exchanges in India must have same trading period.

BROKER WORKSTATION:

At the broker workstation the BBO‘s, the last traded price, the day ‗s opening price, previous

day‘s closing price, highest and lowest prices, the weighted average price and total trade

value will be available continuously, as the BBO for each scrip. Other information will be

available on queries from BWS. These include the top gainers /losers of the day. Trader-

wise, scrip wise net position, client wise net position, top scrip by the volume/value, market

summary etc. Brokers are also provided with information relating to the companies in the

matter of Book closure, Dividend declarations, resolutions in board meeting, information

about liquidated companies, company report etc.

ORDERS:

 Orders can be made one at a time or in batch mode.

 The submitted order will be accepted at the CTS, after validation if it finds any

invalid reason, the order is returned back to the BWS, with the appropriate error message.

 If Accepted at the CTS it will be added to the local pending order book.

 The order will then be taken up for matching, if it is a buy order the system tries to

find a sell order, which fits the requirement of the buy order, when such match is found a

trade gets executed. Each trade involves two brokers and

respective traders who sent the order. Both these traders are informed of the trade being

executed at their respective BWS.

 At the BWS the trade is added to the local trade book.

Orders sent by the brokers are two types:

 Good for the day (GFD)

10
 Good till cancellation (GTC)

Good For the Day:

This is also called ―market order‖. For an order if the member selects the deal as good for the

day, the order is treated as market order. If a ―best bid‖ founds match with ―best order‖ then

the transaction gets executed. If the match is not found, then after trade time the order gets

cancelled that day. Next day he has to place a new order.

For example, if a member wants to purchase 1000 shares of Wipro info @ 400 each through

Good for Day order. If the correct match is not found, the order gets cancelled automatically

and a new quotation has to be placed the next day.

Good Till Cancellation:

This order is forwarded to the last trading day of that settlement period. This is also called as

carry forward order like GFD; broker has to select the option of GTC for the order. If the

order finds match with in the trading settlement period, the order is executed. If no match is

found, the order is cancelled on the last day of settlement period. This order is not carried

forward to the next settlement period.

For example, if a member a place purchase order of 500 shares of SBI @ 690 per share and

selects the order as GTC and place an order. If the match is not found on that day it will be

forwarded to the next day until trading settlement period day.

SETTLEMENT OF TRANSACTIONS:

Clearing of transaction in the form of shares and cash is called settlement. Buyers will take

the delivery of shares through the depository participants like Networth Stock Broking Ltd

11
and others. Finally, the settlement is made by means of delivering the share certificates along

with the transfer deeds. The transferor (or the seller) duly signed transfer deed. It bears a

stamp of the selling broker. The buyer then fills up the certificates fills up the particulars in

the transfer deed. Settlement can be done in the following way.

Spot settlement: under this method, the delivery of securities and payment for them are

affected on the day of the contract itself.

Rolling settlement: Under this rolling settlement the trading is on ―T+2‖,basis i.e. if

Monday is trading day then Wednesday is the paying day . In case on non-delivery, the

securities will go for auction.

DETAILS OF PROCEDURES:

Delivery in :The members who are in pay-out position delivers share certificates in to

clearing house within the settlement period along with the delivery Chelan filled in with the

details of share certificates which has folio numbers or distinctive numbers etc.

Delivery out: The buyer of shares who made pay in position will take delivery of shares

from the clearing house.

Pay-in: The member who is in paying position shall pay for value of shares with in the

trading settlement period (T+2).

Payout: The cheques paid in the clearinghouse will be paid to members who are in paying

position.

All disputes arising between members regarding non-deliveries, non-payments, good and bad

deliveries pertaining to the settlement will be settled by the settlement committee of the

exchange.

The Given Flow Chart Clearly Explains The Process Of Online Trading:

12
 Login

Buy transcation Sell transcation

The system will check your
The system will check buying dp account quantity
limits

Orders accepted Rejected orders would be orders accepted

communicated along with reasons

your order is transmitted to exchange for execution

pending buy orders on execution pending sell orders

would be displayed of your orders would be displayed
on your screen on your screen

you may edit your you may delete you may edit your you may delete your
pending order your pending order pending order pending order

flashed on your conformationcoul contract note would

screen immediately d be send to your be sent to by mail
on execution e-mail and mobile or hand delivery

STOCK TRADES

The stock order entry screen, located at the top of the platform, allows you to buy, sell, and

sell short. The Save to Basket button can save any order that you may want to place later.

To Place An Order

13
1. Click the Equities tab at the top of the page. The screen will show

"EQUITIES" at the top right-hand corner to let you know that you are in

stock-trading mode.

2. Select Buy, Sell, or Short from the drop-down menu below SIDE.

3. Enter the number of shares in Qty box.

4 Enter the symbol m Symbol box.

5. For a market order, click Market. For a limit order, enter the limit price

and click the Limit button. For a Good Till Canceled order, click GTC.

6. Click Submit to send the order,

7. If it is a GTC order, select 16 Days or 30 Days for the GTC order. Click

OK to send the order. If you do not want to send the order or if you want

to make changes, click Cancel.

8. A window will appear (as the picture) asking you to confirm the order. If all details are

correct, click OK to send the order. If you do not want to send the order, or if you want

to make changes, click Cancel.

14
To Save an Order into the Basket

You can enter an order and click the shopping cart icon to save it. Click Basket tab to see

the trades you have saved. Orders saved to the Basket are not sent to the market until you

decide to do so. This is not the same as placing Good Till Canceled or other open orders.

To Place an Order from the Watch List

You can also place an order from your Watch

OPTION QUOTES AND OPTION TRADES

15
To Get Option Quotes

1. Click the Option Chain tab to open the option quote screen.

2. Enter the stock symbol in the Equity Symbol field.

3. Select the strike price from By Strike.

4. Select the expired month from the By Exp. Month.

5. Select the range of option quotes you would like to view from

Calls, Puts, or All

6. Click Go. The screen will list all the option symbols and current Market prices associated

with your criteria

7. To Place an Option Trade

1. Click the Option button at the top left hand corner to open the option order entry

screen. OPTION will appear at the upper right-hand corner to let you know that you are in

Option mode.

1. Follow the above steps to open the option quote screen and get the option symbol.

2. In the Option Chain quote screen, double click the symbol, which you would like to place

an order.

3. The option order entry screen at the top will show the real-time quote of the option.

4. Select: Buy to Open, Sell to Open, Buy to Close, or Sell to Close from the drop-down

menu below SIDE.

5. Enter the number of contracts in the # of Contracts field.

6. Click Market, or enter a limit price and click Lim (Limit). For a Good Till Canceled

order, click GTC.

7. Click Submit

16
8. If it is a GTC order, select 16 Days or 30 Days for the GTC order. Click OK to send

the order. If you do not want to send the order or if you want to make changes, click Cancel.

9. A window will appear (as the picture) asking you to confirm your order. If the information

is correct, click OK to send the order. If you click Cancel, the order will not be sent to

market.

LEVEL I QUOTE

The Level I real-time streaming quote updates automatically every five seconds and

continually throughout market hours.

To Get Quotes

1. Enter a symbol in the field located on the left-hand side. You can also click the small

arrow at the right to select a symbol you previously entered in the same day.

2. Press the Enter key on your keyboard or select Get Quotes (under the Select Action drop-

down menu) to display real-time streaming quotes.

a)Detailed Quotes: Detailed quote, intra-day charts, and the latest news.

d) Charts: Six different chart types - intra-day, one month, three months, six months, one year

and Interactive.

e) SEC Filings: The company's reports to the SEC.

17
f) Profile: A description of the company and fundamental information about its stock.

g)Historical: The open, high, low and closing prices, change and volume of any given stock

in the past six years.

Bid: Highest price at which someone currently offers to buy the stock.

Bid Size: Number of shares, in hundreds, of the offer at the current Bid.

Change: The difference between the price of the Last trade and the stock's previous Close

price.

% Change: The percent difference between the price of the Last trade and the stock's

previous Close price.

Close: The last trade price on the previous trading day.

High: Highest trade price of the stock during the current trade date.

Last: Most recent trade price of the stock during the current trade day.

Low: Lowest trade price of the stock during the current trade day.

Open: The opening price for the stock on the current trade date.

Tick: Located to the right of the symbol. Indicates whether the current Bid is higher or lower

than the previous Bid.

Volume: Total number of shares of the stock traded during the current trade date

Close: The last trade price on the previous trading day.

High: Highest trade price of the stock during the current trade date.

Last: Most recent trade price of the stock during the current trade day.

Low: Lowest trade price of the stock during the current trade day.

Open: The opening price for the stock on the current trade date.

Tick: Located to the right of the symbol. Indicates whether the current Bid is higher or lower

than the previous Bid.

Current Bid is higher: Tick will show an arrow pointing up.

18
Current Bid is lower: Tick will show an arrow pointing down.

Current Bid is same: Tick will show "UC" (unchanged).

Volume: Total number of shares of the stock traded during the current trade date

ACCOUNT SCREEN

To View Account Information

1. Click the Accounts tab to see your account information.

To Switch to another Account

2. Click the Accounts tab to open the Account screen.

3. Click Change Account button.

4. Select the new account number.

19
ORDER SCREEN

To View an Order You Placed

1. Click the Order stab. The system will show all intra-day (same day)

2. Trades and their current status, which including pending, canceled,

filled.

To View Detailed Log for a Specific Order

1. Open the Order screen by following the above steps.

2. Click order sequence number in the UOI field.

3. Click TRANSACTIONS button.

4. A detailed order log will be displayed in a pop-out window.

5. Click OK to close the window.

To Cancel an Open Order

20
1. Open the Order screen by following the above steps.

2. To cancel one open order, select it and click Cancel.

3. To cancel all open orders, click Cancel All.

To Export Order Records to an Excel File

1. In the Order screen, click Import to Excel at the bottom.

2. Choose the location on your computer where you want to save the file and click Save.

BASKET TRADING

You can fill your basket with orders in advance, and place them later with just one click.

To Set Up Your Basket

1. Click the Basket tab to open the Basket window.

2. Select a basket from the drop-down menu at left.

3. To re-name the basket, click Rename Cart, type a new name into the pop-up window,
and click OK.

To Enter Orders Directly into the Basket

1. Click the Basket tab to open the Basket window.

21
2. Select a basket from the drop-down menu at left.

3. Click New Row at left to add stocks to the basket. OK.

4.Double click the empty field under Action and select your action:

Buy, Sell or Short

5.Double click on the empty field below Qty until it changes to written mode. Enter the

number of shares you would like to trade.

6.Double click on the empty field under Symbol until it changes to written mode. Enter the

stock symbol.

7.Double click on the empty field under Price. Enter a price for a limit order, orselect Mkt

for a market order.

8.Double click on the empty field under Account. Choose the account number

from the drop-down menu.

To Save an Order to a Basket from the Order Entry Screen

You can save an order to a basket from the order entry screen and send the order to market

later.

1. In the Order screen, enter all the required information about the order.

2. Click the shopping cart icon.

3. From the drop-down menu, select the basket in which you want to save the

order. Click OK to save, orCancel to not save the order into the basket.

22
Remove an Order from the Basket

1. Click the Basket tab to see the Basket screen, and select one of

the baskets from the drop-down menu.

2. Select the order you want to remove.

3. Click Remove at right.

To Get Quotes for Stocks in the Basket

1. Click the Basket tab to see the Basket screen, and select one of

the baskets from the drop-down menu.

2. Select the order for which you would like to see a quote.

To Execute an Order in the Basket:

1. Click the Basket tab to see the Basket screen, and select one of

the baskets from the drop-down menu.

2. To execute all orders listed in the basket, click Execute AH.

3. To execute only one order, select the order and then click Execute.

When you Execute trade(s) in the Basket, the Basket Order(s) will still display in the basket
until you remove the order(s).

23
KEYS USED FOR TRADING
 Fl - BUY
 F2 - SELL
 F3 - PENDING ORDERS (BUYING & SELLING)
 F6 - MARKET DEBTS (COMPANY ENQUIRY)
 F7 - ARBITRAGE ORDERS
 F8 - HOW MANY TRADING HAS BEEN DONE
 SHIFT+F8 - NET POSITION OF THE COMPANY'S SHARES
 CTRL+F8 - SETTLEMENT OF NET POSITION FOR EXPOSURE
 SHIFT+F9 - NEWS
 Fll - ADDING A NEW COMPANY IN TO THE N/W
 F12 - TEMPORARY LOCKING OF WINDOWS

24
 JOURNALS/ARTICLES

Article-1

K.S. Chalapati Rao, K.V.K. Ranganathan and M.R. Murthy.(2019)Journal Of Indian

School Of Political EconomyVol.XI No.4 (1999) P.25Institutional Investments And The
Indian Stock Market
To facilitate foreign private capital flows in the form of portfolio investments, developing
countries have been advised to develop their stock markets. It was suggested that these
investments would help the stock markets directly through widening investor base and
indirectly by compelling local authorities to improve the trading systems. While the volatility
associated with portfolio capital flows is well known, there is also a concern that foreign
institutional investors might introduce distortions in the host country markets due to the
pressure on them to secure capital gains. In this context, this paper seeks to assess the
importance of foreign portfolio investments in India relative to other major forms and to
study the relationship between foreign portfolio investments and trends in the Indian stock
market during the past four years Portfolio investments spread risk for foreign investors, and
provide an opportunity to share
the fruits of growth of developing countries which are expected to grow faster. Investing in
emerging markets is expected to provide a better return on investments for pension funds and
private investors of the developed countries. For developing countries, foreign portfolio
equity investment has different characteristics and implications compared to FDI. Besides
supplementing domestic savings, FDI is expected to facilitate transfer of technology,
introduce new management and marketing skills, and helps expand host country markets and
foreign trade [World Bank, 1997, p. 31]. Portfolio investments supplement foreign exchange.

25
Article-2
M. Gopi, T. Ramayah. (2019) "The Theory Of Planned Behavior And Internet
Purchasing", Internet Research, Vol. 14 Is 3 Pp. International Journal of Emerging
Markets
The purpose of this paper is to identify factors that influence the intention to use internet
stock trading among investors in India. A structured questionnaire was used to collect data
from investors who are aware of internet stock trading in Malaysia. Out of 300 questionnaire
only 144 were usable. Findings show that attitude, subjective norm and perceived behavioral
control has a direct positive relationship towards behavioral intention to use internet stock
trading. The theory of planned behavior can be used to explain variation in behavioral
intention and actual usage. More variations of results could be gained through a wider
coverage of respondents. Other factors such as descriptive norm and perceived usefulness
should be used to increase the explanatory power of the dependent variable. A comparison of
the same study of explanatory power between other intention-based model could give another
valuable contribution. Practical implications – This study will provide information on factors
that influence and affect investor‘s intention to use online stock trading. In addition, the
result of the study could serve as a guideline by online stock broking organizations in
understanding the factors and program that need to be instilled to increase online stock
trading among current retail investors and future investors. Not much has been written on
understanding intention to use internet stock trading in a developing country.

26
Article-3
Sarika Srivastava. (2019) Online trading, issue: 1, volume 43 1st Jan 2016. Impact of
Internet Growth On The Online Stock Trading In India.
Nearly two billion people are connected to the Internet. During the last twenty years, the
technology revolution has had an intense and irreversible impact on the world and Indian
stock market has also witnessed these changes. From its formal inception in the 19th century,
the Indian capital market has come a long way and can be said to be in a
maturity stage, backed by a developed legal system. The internet has made financial products
and services available to more customers and eliminated geographical barriers.
Earlier investors were solely dependent on their brokers but nowadays they are participating
more in buying and selling of shares with the help of internet. E-trading has
saved time, energy and money as it helps to access the market from any where at any time.
The primary objective of this research paper is to analyze the impact of internet growth on
the stock market transactions. The paper also discusses the current state of internet trading in
India and particularly the scope of online trading market available in
India

27
Article-4

Kristina Heinonen (2017) Journal of Financial Services Marketing volume 12, pages39–
52 Conceptualizing online trading service value

A conceptual framework for perceived value of online trading is developed. The nature of
four value dimensions is explored in the context of online trading. In two empirical studies
the relative importance of each value dimension is measured and the findings indicate that
the temporal and spatial dimensions are perceived as more important than traditional
dimensions based on outcome and process elements. Sub-dimensions of technical, functional,
temporal, and spatial service value are also identified. It is suggested that temporal and
spatial flexibility is only one aspect of temporal and spatial value. The paper extends prior
research on e-services by conceptualizing online trading service value as a multidimensional
and hierarchical construct and separating each value dimension into sub-dimensions. It
suggests a holistic perspective of service value and a dynamic nature of value dimensions:
although the separate value dimensions involve different aspects of the service value, as a
whole they fulfil the same need. The paper contributes to marketing research and practice
with its approach to how value can be conceptualized for bank services. Explanations for the
dynamics of the value dimensions are proposed.

28
Article-5
Kari Pikkarainen Tero Pikkarainen Heikki Karjaluoto Seppo Pahnila (2016)
International Journal of Bank Marketing ISSN: 0265-2323 Publication date: 1 April
The measurement of end‐ user computing satisfaction of online trading : empirical
evidence from Finland
Purpose
Although research into the adoption and use of online trading has grown in many parts of the
world, the center of attention has been largely on determinants of online trading adoption, not
on users' satisfaction with use. This paper aims to test and validate the End‐ User Computing
Satisfaction (EUCS) model in order to investigate online trading users' satisfaction with the
service.

Design/methodology/approach A survey (n=268) was carried out using convenience

sampling. An exploratory factor analysis followed by a confirmatory factor analysis run in
LISREL 8.7 is used to test the validity of the model in an online trading context.

Findings

The survey results support three constructs (content, ease of use, accuracy) from the original
model, indicating that the modified EUCS model labelled EUCS2 can be utilized in
analyzing user satisfaction with online trading among private customers. Research
limitations/implications The obtained model suffered from two cross‐ loadings between
individual items. Another limitation concerns the sample obtained. Therefore, future studies
should test the model with larger samples to verify the model in this context. Practical
implications Findings of the study indicate that banks could improve end‐ user computing
satisfaction with online trading by concentrating on the three constructs obtained from the
analyses. Moreover, the results indicate that banks can increase satisfaction of online trading
by personalizing the service, allowing easier and more convenient use experience.

Originality/value

The paper makes a significant contribution by testing and modifying the EUCS model in the
online trading context.

29
Article 6

Tero Pikkarainen, Kari Pikkarainen, Heikki Karjaluoto, Seppo Pahnila (2014) Internet
Research ISSN: 1066-2243 Publication date: 1 July Consumer acceptance of online
banking: an extension of the technology acceptance model

Abstract:
Advances in electronic banking technology have created novel ways of handling daily
banking affairs, especially via the online trading channel. The acceptance of online trading
has been rapid in many parts of the world, and in the leading e‐ banking countries the
number of e‐ banking contracts has exceeded 50 percent. Investigates online trading
acceptance in the light of the traditional technology acceptance model (TAM), which is
leveraged into the online environment. On the basis of a focus group interview with banking
professionals, TAM literature and e‐ banking studies, we develop a model indicating
online‐ banking acceptance among private banking customers in Finland. The model was
tested with a survey sample (n=268). The findings of the study indicate that perceived
usefulness and information on online trading on the Web site were the main factors
influencing online‐ banking acceptance.

30
Article 7

Abdullah S. Al-Mudimigh (2017) Journal of Internet Banking and CommerceE-

Business Strategy in an Online trading: A Case Study

Abstract:Banks today are aware of both the threat and the opportunity that the Web
represents. No traditional bank would dare face investment analysts without an Internet
strategy. But even a detailed and thoughtful approach to the Web does not guarantee business
success. The main purpose behind the launching of online trading is to provide the customers
with an alternative, more responsive and with less expensive options. With options just a
click away, customers have more control than ever. They expect real-time answers and
superior usability. They also want personal attention and highly customized products and
services. The focus of e-business must always be on the customer. On the other hand, the
technology and the business structure follow on form of the value you intend to provide to
the customer. This paper evaluates the success of the e-business model and e-business
strategy implemented by Citibank in the United Arab Emirates in offering its retail Internet
BankingService; Citibank Online.

31
Article 8

Adel M Aladwani (2019) International Journal of Information ManagementVolume 21,

Issue 3, June 2011, Pages 213-225Online banking: a field study of drivers, development
challenges, and expectations

Abstract:Online trading is the newest and least understood delivery channel for retail online
trading. Yet, few, if any, studies were reported quantifying the issues relevant to this cutting-
edge technology. This paper reports the results of a quantitative study of the perceptions of
banks‘ executive and IT managers and potential customers with regard to the drivers,
development challenges, and expectations of online banking. The findings will be useful for
both researchers and practitioners who seek to understand the issues relevant to online
banking.

32
 Article 9

Caălin Guraău (2018) Journal: International Journal of Bank Marketing ISSN: 0265-
2323 Publication date: 1 November 2018 Online tradingin transition economies: the
implementation and development of online tradingsystems in Romania

Abstract: Internet banking is one of the newest Internet technology applications, which
promises multiple benefits both for the financial institutions and for clients. In the last five
years a large number of banks have launched Web sites, offering online trading. While the
implementation and the functioning of these digital systems seem to be relatively smooth in
the developed economies, the situation may be different in countries with economies in
transition. The present paper investigates and analyses the present situation of online trading
in Romania, and the appropriate strategies for the successful implementation and
development of online trading in the Romanian context.

33
Article 10

Joaquín Aldás‐ Manzano, Carlos Lassala‐ Navarré, Carla Ruiz‐ Mafé, Silvia
Sanz‐ BlasO nline Information Review ISSN: 1468-4527 Publication date: 7 August
2019Key driversof internet online trading use

Purpose

The purpose of this paper is to analyze the determinants of internet banking use, paying
special attention to the role of product involvement, perceived risk and trust.

Design/methodology/approach

The impact of trust, perceived risks, product involvement and TAM beliefs (ease of use and
usefulness) on internet banking adoption is tested through structural equation modeling
techniques. The sample consists of 511 Spanish internet online trading users and the data are
collected through an internet survey. Risk is measured as a formative construct.

Findings

Data analysis shows that TAM beliefs and perceived risks (security, privacy, performance
and social) have a direct influence on e‐ banking adoption. Trust appears as a key variable
that reduces perceived risk. Involvement plays an important role in increasing perceived ease
of use.

Practical implications

This research provides banks with knowledge of what aspects to highlight in their
communications strategies to increase their internet online trading adoption rates. The
research findings show managers that web contents and design are key tools to increase
internet online trading adoption. Practical recommendations to increase web usefulness and
trust, and guidelines to reduce perceived risk dimensions are also provided.

34
 CHAPTER-III

INDUSTRY PROFILE
&
COMPANY PROFILE

35
INDUSTRY PROFILE

For the Indian investors, the year belonged to stock markets, which have been shining bright
when it comes to generating wealth, while the glitter of gold and silver faded for the second
straight year in 2120.
Measured by BSE Sensex, stock market has generated a positive return of about 9 per cent
for investors in 2120, while gold prices fell by about three per cent and its poorer cousin
silver plummeted close to 24 per cent.
After outperforming stock market for more than a decade, gold has been on back foot for two
consecutive years now vis-a-vis equities, shows an analysis of their price movements.
"Gold's under-performance was mainly due to prices falling in dollar terms amid anticipated
tapering over last several months combined with FII investment in Indian stocks.
"This movement has been equally true for global markets as 2120 saw gold losing its shine
and markets coming back with a bang," said Jayant Manglik, President Retail Distribution,
Religare Securities.
"As always, gold and stock prices follow opposite trends and this year was no different
except that both changed direction," he said.
Improvement in the world economy has brought the risk appetite back amongst retail
investors and this has drenched the liquidity from safe havens such as gold leading to its
under-performance, an expert said.
In 2112, the Sensex had gained over 25 per cent, which was nearly double the gain of about
12.95 per cent in gold. The appreciation in silver was at about 12.84 per last year.
According to Hiren Dhakan, Associate Fund Manager, Bonanza Portfolio, "Markets have
particularly shown great strength post July-August 2120 when RBI took some strong
measures to control the steeply depreciating rupee."
"When the US Fed gave indications that it might taper its stimulus programme given the
economy shows improvement, a knee-jerk correction was seen in most risky assets, including
stocks in Indian markets. However, assurance by the Fed about planned and staggered
tapering in stimulus once again proved to be a catalyst for the markets."

"External factors affecting Indian stocks seem to be negative for the first half of 2120 due to
continued strength of the US dollar and benign in the second half. By that time, elections too

36
would have taken place. A combination of domestic and international factors point to a
bumper closing of Indian markets in 2120 with double-digit percentage growth," he said.
Stock market segment mid-cap and small-cap indices have fallen by about 10 per cent and 18
per cent, respectively, in 2120.
Foreign Institutional Investors have bought shares worth over Rs 1.1 lakh crore (nearly USD
21 billion) till December 20. In 2112, they had pumped in Rs 1.28 lakh crore (USD 24.37
billion).

Evolution

Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 210 years
ago. The earliest records of security dealings in India are meagre and obscure. The East India
Company was the dominant institution in those days and business in its loan securities used
to be transacted towards the close of the eighteenth century.

By 1830's business on corporate stocks and shares in Bank and Cotton presses took place in
Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers
recognized by banks and merchants during 1840 and 1850.

The 1850's witnessed a rapid development of commercial enterprise and brokerage business
attracted many men into the field and by 1860 the number of brokers increased into 60.

In 1860-61 the American Civil War broke out and cotton supply from United States of
Europe was stopped; thus, the 'Share Mania' in India begun. The number of brokers increased
to about 210 to 250. However, at the end of the American Civil War, in 1865, a disastrous
slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be
sold at Rs. 87).

At the end of the American Civil War, the brokers who thrived out of Civil War in 1874,
found a place in a street (now appropriately called as Dalal Street) where they would
conveniently assemble and transact business. In 1887, they formally established in Bombay,
the "Native Share and Stock Brokers' Association" (which is alternatively known as " The
Stock Exchange "). In 1895, the Stock Exchange acquired a premise in the same street and it
was inaugurated in 1899. Thus, the Stock Exchange at Bombay was consolidated.

37
Other leading cities in stock market operations

Ahmadabad gained importance next to Bombay with respect to cotton textile industry. After
1880, many mills originated from Ahmadabad and rapidly forged ahead. As new mills were
floated, the need for a Stock Exchange at Ahmadabad was realized and in 1894 the brokers
formed "The Ahmadabad Share and Stock Brokers' Association".

What the cotton textile industry was to Bombay and Ahmadabad, the jute industry was to
Calcutta. Also tea and coal industries were the other major industrial groups in Calcutta.
After the Share Mania in 1861-65, in the 1870's there was a sharp boom in jute shares, which
was followed by a boom in tea shares in the 1880's and 1890's; and a coal boom between
2004 and 2008. On June 2008, some leading brokers formed "The Calcutta Stock Exchange
Association".

In the beginning of the twentieth century, the industrial revolution was on the way in India
with the Swedish Movement; and with the inauguration of the Tata Iron and Steel Company
Limited in 2007, an important stage in industrial advancement under Indian enterprise was
reached.

Indian cotton and jute textiles, steel, sugar, paper and flour mills and all companies generally
enjoyed phenomenal prosperity, due to the First World War.

In 2021, the then demure city of Madras had the maiden thrill of a stock exchange
functioning in its midst, under the name and style of "The Madras Stock Exchange" with 100
members. However, when boom faded, the number of members stood reduced from 100 to 3,
by 2023, and so it went out of existence.

In 2035, the stock market activity improved, especially in South India where there was a
rapid increase in the number of textile mills and many plantation companies were floated. In
2037, a stock exchange was once again organized in Madras - Madras Stock Exchange
Association (Pvt) Limited. (In 2057 the name was changed to Madras Stock Exchange
Limited).

Lahore Stock Exchange was formed in 2034 and it had a brief life. It was merged with the
Punjab Stock Exchange Limited, which was incorporated in 2036.

38
Indian Stock Exchanges - An Umbrella Growth

The Second World War broke out in 2039. It gave a sharp boom which was followed by a
slump. But, in 2043, the situation changed radically, when India was fully mobilized as a
supply base.

On account of the restrictive controls on cotton, bullion, seeds and other commodities, those
dealing in them found in the stock market as the only outlet for their activities. They were
anxious to join the trade and their number was swelled by numerous others. Many new
associations were constituted for the purpose and Stock Exchanges in all parts of the country
were floated.

The Uttar Pradesh Stock Exchange Limited (2040), Nagpur Stock Exchange Limited (2040)
and Hyderabad Stock Exchange Limited (2044) were incorporated.

In Delhi two stock exchanges - Delhi Stock and Share Brokers' Association Limited and the
Delhi Stocks and Shares Exchange Limited - were floated and later in June 2047,
amalgamated into the Delhi Stock Exchange Association Limited.

Post-independence Scenario

Most of the exchanges suffered almost a total eclipse during depression. Lahore Exchange
was closed during partition of the country and later migrated to Delhi and merged with Delhi
Stock Exchange.

Bangalore Stock Exchange Limited was registered in 2057 and recognized in 2063.

Most of the other exchanges languished till 2057 when they applied to the Central
Government for recognition under the Securities Contracts (Regulation) Act, 2056. Only
Bombay, Calcutta, Madras, Ahmadabad, Delhi, Hyderabad and Indore, the well established
exchanges, were recognized under the Act. Some of the members of the other Associations
were required to be admitted by the recognized stock exchanges on a concessional basis, but
acting on the principle of unitary control, all these pseudo stock exchanges were refused
recognition by the Government of India and they thereupon ceased to function.

39
Thus, during early sixties there were eight recognized stock exchanges in India (mentioned
above). The number virtually remained unchanged, for nearly two decades. During eighties,
however, many stock exchanges were established: Cochin Stock Exchange (2080), Uttar
Pradesh Stock Exchange Association Limited (at Kanpur, 2082), and Pune Stock Exchange
Limited (2082), Ludhiana Stock Exchange Association Limited (2083), Gauhati Stock
Exchange Limited (2084), Kanara Stock Exchange Limited (at Mangalore, 2085), Magadh
Stock Exchange Association (at Patna, 2086), Jaipur Stock Exchange Limited (2089),
Bhubaneswar Stock Exchange Association Limited (2089), Saurashtra Kutch Stock
Exchange Limited (at Rajkot, 2089), Vadodara Stock Exchange Limited (at Baroda, 2090)
and recently established exchanges - Coimbatore and Meerut. Thus, at present, there are
totally twenty one recognized stock exchanges in India excluding the Over The Counter
Exchange of India Limited (OTCEI) and the National Stock Exchange of India Limited
(NSEIL).

The Table given below portrays the overall growth pattern of Indian stock markets since
independence. It is quite evident from the Table that Indian stock markets have not only
grown just in number of exchanges, but also in number of listed companies and in capital of
listed companies. The remarkable growth after 2085 can be clearly seen from the Table, and
this was due to the favoring government policies towards security market industry.

Trading Pattern of the Indian Stock Market

Trading in Indian stock exchanges are limited to listed securities of public limited companies.
They are broadly divided into two categories, namely, specified securities (forward list) and
non-specified securities (cash list). Equity shares of dividend paying, growth-oriented
companies with a paid-up capital of at least Rs.50 million and a market capitalization of at
least Rs.100 million and having more than 21,000 shareholders are, normally, put in the
specified group and the balance in non-specified group.

Two types of transactions can be carried out on the Indian stock exchanges: (a) spot delivery
transactions "for delivery and payment within the time or on the date stipulated when
entering into the contract which shall not be more than 20 days following the date of the
contract" : and (b) forward transactions "delivery and payment can be extended by further
period of 20 days each so that the overall period does not exceed 90 days from the date of the
contract". The latter is permitted only in the case of specified shares. The brokers who carry

40
over the out standings pay carry over charges (can tango or backwardation) which are usually
determined by the rates of interest prevailing.

A member broker in an Indian stock exchange can act as an agent, buy and sell securities for
his clients on a commission basis and also can act as a trader or dealer as a principal, buy and
sell securities on his own account and risk, in contrast with the practice prevailing on New
York and London Stock Exchanges, where a member can act as a jobber or a broker only.

The nature of trading on Indian Stock Exchanges are that of age old conventional style of
face-to-face trading with bids and offers being made by open outcry. However, there is a
great amount of effort to modernize the Indian stock exchanges in the very recent times.

Over The Counter Exchange of India (OTCEI)

The traditional trading mechanism prevailed in the Indian stock markets gave way to many
functional inefficiencies, such as, absence of liquidity, lack of transparency, unduly long
settlement periods and benami transactions, which affected the small investors to a great
extent. To provide improved services to investors, the country's first ring less, scrip less,
electronic stock exchange - OTCEI - was created in 2092 by country's premier financial
institutions - Unit Trust of India, Industrial Credit and Investment Corporation of India,
Industrial Development Bank of India, SBI Capital Markets, Industrial Finance Corporation
of India, General Insurance Corporation and its subsidiaries and Can Bank Financial
Services.

Trading at OTCEI is done over the centers spread across the country. Securities traded on the
OTCEI are classified into:

 Listed Securities - The shares and debentures of the companies listed on the OTC can be
bought or sold at any OTC counter all over the country and they should not be listed
anywhere else

 Permitted Securities - Certain shares and debentures listed on other exchanges and units of
mutual funds are allowed to be traded

 Initiated debentures - Any equity holding at least one lakh debentures of a particular scrip
can offer them for trading on the OTC.

41
OTC has a unique feature of trading compared to other traditional exchanges. That is,
certificates of listed securities and initiated debentures are not traded at OTC. The original
certificate will be safely with the custodian. But, a counter receipt is generated out at the
counter which substitutes the share certificate and is used for all transactions.

In the case of permitted securities, the system is similar to a traditional stock exchange. The
difference is that the delivery and payment procedure will be completed within 20 days.

Compared to the traditional Exchanges, OTC Exchange network has the following
advantages:

 OTCEI has widely dispersed trading mechanism across the country which provides greater
liquidity and lesser risk of intermediary charges.

 Greater transparency and accuracy of prices is obtained due to the screen-based scrip less
trading.

 Since the exact price of the transaction is shown on the computer screen, the investor gets to
know the exact price at which s/he is trading.

 Faster settlement and transfer process compared to other exchanges.

 In the case of an OTC issue (new issue), the allotment procedure is completed in a month
and trading commences after a month of the issue closure, whereas it takes a longer period
for the same with respect to other exchanges.

Thus, with the superior trading mechanism coupled with information transparency investors
are gradually becoming aware of the manifold advantages of the OTCEI.

National Stock Exchange (NSE)

With the liberalization of the Indian economy, it was found inevitable to lift the Indian stock
market trading system on par with the international standards. On the basis of the
recommendations of high powered Pherwani Committee, the National Stock Exchange was
incorporated in 2092 by Industrial Development Bank of India, Industrial Credit and
Investment Corporation of India, Industrial Finance Corporation of India, all Insurance
Corporations, selected commercial banks and others.

42
Trading at NSE can be classified under two broad categories:

(a) Wholesale debt market and

(b) Capital market.

Wholesale debt market operations are similar to money market operations - institutions and
corporate bodies enter into high value transactions in financial instruments such as
government securities, treasury bills, public sector unit bonds, commercial paper, certificate
of deposit, etc.

There are two kinds of players in NSE:

(a) Trading members and

(b) Participants.

Recognized members of NSE are called trading members who trade on behalf of themselves
and their clients. Participants include trading members and large players like banks who take
direct settlement responsibility.

Trading at NSE takes place through a fully automated screen-based trading mechanism
which adopts the principle of an order-driven market. Trading members can stay at their
offices and execute the trading, since they are linked through a communication network. The
prices at which the buyer and seller are willing to transact will appear on the screen. When
the prices match the transaction will be completed and a confirmation slip will be printed at
the office of the trading member.

NSE has several advantages over the traditional trading exchanges. They are as follows:

 NSE brings an integrated stock market trading network across the nation.

 Investors can trade at the same price from anywhere in the country since inter-market
operations are streamlined coupled with the countrywide access to the securities.

43
 Delays in communication, late payments and the malpractice‘s prevailing in the traditional
trading mechanism can be done away with greater operational efficiency and informational
transparency in the stock market operations, with the support of total computerized network.

Unless stock markets provide professionalized service, small investors and foreign investors
will not be interested in capital market operations. And capital market being one of the major
source of long-term finance for industrial projects, India cannot afford to damage the capital
market path. In this regard NSE gains vital importance in the Indian capital market system.

Preamble

Often, in the economic literature we find the terms ‗development‘ and ‗growth‘ are used
interchangeably. However, there is a difference. Economic growth refers to the sustained
increase in per capita or total income, while the term economic development implies
sustained structural change, including all the complex effects of economic growth. In other
words, growth is associated with free enterprise, where as development requires some sort of
control and regulation of the forces affecting development. Thus, economic development is a
process and growth is a phenomenon.

Economic planning is very critical for a nation, especially a developing country like India to
take the country in the path of economic development to attain economic growth.

44
COMPANY PROFILE

About IIFL

The IIFL (India Info line) group, comprising the holding company, India Info line Ltd (NSE:
INDIAINFO, BSE: 532636) and its subsidiaries, is one of the leading players in the Indian
financial services space. IIFL offers advice and execution platform for the entire range of
financial services covering products ranging from Equities and derivatives, Commodities,
Wealth management, Asset management, Insurance, Fixed deposits, Loans, Investment
Banking, Go bonds and other small savings instruments. IIFL recently received an in-
principle approval for Securities Trading and Clearing memberships from Singapore
Exchange (SGX) paving the way for IIFL to become the first Indian brokerage to get a
membership of the SGX. IIFL also received membership of the Colombo Stock Exchange
becoming the first foreign broker to enter Sri Lanka. IIFL owns and manages the website,
www.indiainfoline.com, which is one of India‘s leading online destinations for personal
finance, stock markets, economy and business.
IIFL has been awarded the ‗Best Broker, India‘ by Finance Asia and the ‗Most improved
brokerage, India‘ in the Asia Money polls. India Infoline was also adjudged as ‗Fastest
Growing Equity Broking House - Large firms‘ by Dun & Bradstreet. A forerunner in the
field of equity research, IIFL‘s research is acknowledged by none other than Forbes as ‗Best
of the Web‘ and ‗…a must read for investors in Asia‘. Our research is available not just over
the Internet but also on international wire services like Bloomberg, Thomson First Call and
Internet Securities where it is amongst one of the most read Indian brokers. A network of
over 2,500 business locations spread over more than 500 cities and towns across India
facilitates the smooth acquisition and servicing of a large customer base. All our offices are
connected with the corporate office in Mumbai with cutting edge networking technology.
The group caters to a customer base of about a million customers, over a variety of mediums
viz. online, over the phone and at our branches.

45
 History and Milestones

2095

Commenced operations as an Equity Research firm

2097

Launched research products of leading Indian companies, key sectors and the economy
Client included leading FIIs, banks and companies.

2099

Launched www.indiainfoline.com

2100

Launched online trading through www.5paisa.com Started distribution of life insurance

and mutual fund

2103

Launched proprietary trading platform Trader Terminal for retail customers

2104
Acquired commodities broking licenseLaunched Portfolio Management Service

2105

Maiden IPO and listed on NSE, BSE

2106

Acquired membership of DGCX

Commenced the lending business

46
2107
Commenced institutional equities business under IIFL Formed Singapore
subsidiary, IIFL (Asia) Pte Ltd

2108

Launched IIFL WealthTransitioned to insurance broking model

2109

Acquired registration for Housing Finance

SEBI in-principle approval for Mutual FundObtained Venture Capital license

47
2110

Received in-principle approval for membership of the Singapore Stock Exchange

Received membership of the Colombo Stock Exchange .

2111

Launched IIIFL mutual funds

3.2.2 Board of directors

Mr. Nirmal Jain

(Chairman Managing Director)

Mr. Nirmal Jain is the founder and Chairman of India Infoline Ltd. He is a PGDM
(Post Graduate Diploma in Management) from IIM (Indian Institute of Management)
Ahmedabad, a Chartered Accountant and a rank-holder Cost Accountant. His
professional track record is equally outstanding. He started his career in 2089 with
Hindustan Lever Limited, the Indian arm of Unilever. During his stint with Hindustan
Lever, he handled a variety of responsibilities, including export and trading in agro-
commodities. He contributed immensely towards the rapid and profitable growth of
Hindustan Lever‘s commodity export business, which was then the nation‘s as well as
the Company‘s top priority.

He founded Probity Research and Services Pvt. Ltd. (later re-christened India
Infoline) in 2095; perhaps the first independent equity research Company in India. His
work set new standards for equity research in India. Mr. Jain was one of the first
entrepreneurs in India to seize the internet opportunity, with the launch of
www.indiainfoline.com in 2099. Under his leadership, India Infoline not only steered
through the dotcom bust and one of the worst stock market downtrends but also grew
from strength to strength.

48
Mr. R. Venkataraman

Executive Director , India Infoline Ltd.

Mr. R Venkataraman, Co-Promoter and Executive Director of India Infoline Ltd, is a

B.Tech (electronics and electrical communications engineering, IIT Kharagpur) and
an MBA (IIM Bangalore). He joined the India Infoline Board in July 2099. He
previously held senior managerial positions in ICICI Limited, including ICICI
Securities Limited, their investment banking joint venture with J P Morgan of US,
BZW and Taib Capital Corporation Limited. He was also the Assistant Vice President
with G E Capital Services India Limited in their private equity division, possessing a
varied experience of more than 20 years in the financial services sector

Mr. Nilesh Vikamsey

Independent Director , India Infoline Ltd.

Mr.Nilesh Vikamsey – Board Member since February 2105 - is a practicing Chartered

Accountant for 25 years and Senior Partner at M/s Khimji Kunverji& Co., Chartered
Accountants, a member firm of HLB International, a world-wide organisation of
professional accounting firms and business advisers, ranked amongst the top 12
accounting groups in the world. Mr.Vikamsey headed the audit department till 2090
and thereafter also handled financial services, consultancy, investigations, mergers
and acquisitions, valuations and due diligence, among others. He is elected member of
the Central Council of Institute of Chartered Accountant of India (ICAI), the Apex
decision making body of the second largest accounting body in the world, 2110–2120.

He is on the ICAI study group member for the introduction of the Accounting
Standard — 30 on financial instruments — recognition and management. Convener of
the Study group Formed by ASB of ICAI to formulate comments on various Exposure
Drafts, Discussion Papers and other matters pertaining to IFRS originating from
IASB, Representative of the Institute of Chartered Accountants of India on the
Committee for Improvement in Transparency, Accountability and Governance(ITAG)

49
 of South Asian Federation of Accountants (SAFA), Member of Executive Committee
& IFRS Implementation Committee of WIRC of Institute of Chartered Accountant of
India (ICAI), Accounting and Auditing Committee of Bombay Chartered Accountant
Society (BCAS) and also on its Core Group, member of Review, Reforms &
Rationalization Committee, IPR Committee of Bombay Chamber of Commerce and
Industry (BCCI), Member of Legal Affairs Committee of Bombay Chamber of
Commerce and Industry(BCCI), Corporate Members Committee of The Chamber of
Tax Consultants (CTC), Regular Contributor to WIRC Annual Reference on ―Bank
Branch Audit‖, Study/ Sub Group formed by ICAI for Considering Developments on
Fair Value Accounting (AS 30) post Sub Prime crisis, Sub Group formed by ICAI for
approaching the Government and Regulatory Authorities for Convergence with IFRS.

He is also a Vice Chairman of Financial Reporting Review Board Accounting

Standard Board and Member of Accounting Standard Board and various other
Standing and Non Standing Committees. Mr. Vikamsey is also a Director of Miloni
Consultants Private Limited, HLB Offices and Services Private Limited, Trunil
Properties Private Limited, BarKat Properties Private Limited and India Infoline
Investment Services Limited.

Mr. Kranti Sinha

Independent Director , India Info line Ltd.

Mr. Kranti Sinha — Board member since January 2105 — completed his masters
from the Agra University and started his career as a Class I Officer with Life
Insurance Corporation of India. He served as the Director and Chief Executive of LIC
Housing Finance Limited from August 2098 to December 2102 and concurrently as
the Managing Director of LICHFL Care Homes (a wholly-owned subsidiary of LIC
Housing Finance Limited). He retired from the permanent cadre of the Executive
Director of LIC; served as the Deputy President of the Governing Council of
Insurance Institute of India and as a member of the Governing Council of National
Insurance Academy, Pune apart from various other such bodies. Mr. Sinha is also on
the Board of Directors of Hindustan Motors Limited and Cinemax (India) Limited.

Mr. A. K. Purwar
Independent Director , India Info line Ltd.

50
 Mr. Purwar is currently the Chairman of India Venture Advisors Pvt. Ltd., investment
manager to India Venture Trust – Fund I, the healthcare and life sciences focused
private equity fund sponsored by the Primal Group. He has also taken over as the
Chairman of IL & FS Renewable Energy Limited in March 2108 and India Info line
Investment Services Ltd in November 2109. He is working as Independent Director in
leading companies in Telecom, Steel, Textiles, Power, Auto components, Renewable
Energy, Engineering Consultancy, Financial Services and Healthcare Services. He is
an Advisor to Mizuho Securities in Japan and is also a member of Advisory Board for
Institute of Indian Economic Studies (IIES), Waseda University, Tokyo, Japan.

Mr. Purwar was the Chairman of State Bank of India, the largest bank in the country
from November ‗02 to May ‘06 and held several important and critical positions like
Managing Director of State Bank of Patiala, Chief Executive Officer of the Tokyo
branch covering almost the entire range of commercial banking operations in his
illustrious career at the bank from 2068 to 2106. Mr. Purwar also worked as Chairman
of Indian Bank Association during 2105 – 2106. Mr. Purwar has received the ―CEO
of the year‖ Award from the Institute for Technology & Management (2104);
―Outstanding Achiever of the year‖ Award from Indian Banks‘ Association (2104);
―Finance Man of the Year‖ Award by the Bombay Management Association in 2106.

IIFL’s philosophy on Corporate Governance

IIFL (India Info line) is committed to placing the Investor First, by continuously striving to
increase the efficiency of the operations as well as the systems and processes for use of
corporate resources in such a way so as to maximize the value to the stakeholders. The Group
aims at achieving not only the highest possible standards of legal and regulatory
compliances, but also of effective management.

Audit Committee

Terms of reference & Composition, Name of members and Chairman: The Audit committee
comprises Mr. Nilesh Vikamsey (Chairman), Mr. Sat Pal Khattar, Mr. Kranti Sinha, three of
whom are independent Directors. The Managing Director, the Executive Director along with

51
the Statutory and Internal Auditors are invitees to the Meeting. The Terms of reference of
this committee are as under: - To investigate into any matter that may be prescribed under the
provisions of Section 292A of The Companies Act, 2056 - Recommendation and removal of
External Auditor and fixation of the Audit Fees. - Reviewing with the management the
financial statements before submission of the same to the Board. - Overseeing of Company‘s
financial reporting process and disclosure of its financial information. - Reviewing the
Adequacy of the Internal Audit Function.

Compensation/ Remuneration Committee

Terms of reference & Composition, Name of members and Chairman: The Compensation /
Remuneration Committee comprises Mr. Kranti Sinha (Chairman), Mr. Nilesh Vikamsey and
Mr. Sat Pal Khattar all of whom are independent Directors. The Terms of reference of this
committee are as under: - To fix suitable remuneration package of all the Executive Directors
and Non Executive Directors, Senior Employees and officers i.e. Salary, perquisites,
bonuses, stock options, pensions etc. - Determination of the fixed component and
performance linked incentives along with the performance criteria to all employees of the
company - Service Contracts, Notice Period, Severance Fees of Directors and employees. -
Stock Option details: whether to be issued at discount as well as the period over which to be
accrued and over which exercisable. - To conduct discussions with the HR department and
form suitable remuneration policies.

Share Transfer and Investor Grievance Committee

Details of the Members, Compliance Officer, No of Complaints received and pending and
pending transfers as on close of the financial year. The committee functions under the
Chairmanship of Mr. Kranti Sinha, a Non-executive independent Director. The other
Members of the committee are Mr. Nirmal Jain and Mr. R Venkataraman. Ms. Sunil Lotke,
Company Secretary is the Compliance Officer of the Company.

In line with our vision to be the ‘most respected company in the financial services
space’, we recognize the importance of contributing to and sustaining social
transformation. With this end in mind, we have setup the IIFL foundation, which will
work for the support and upliftment of the underprivileged sections of society.
The IIFL Foundation focuses on specific areas of need such as healthcare and education, the

52
foundation will screen and select institutions and developmental agencies which are working
in these domains and will provide necessary aid to improve the lives of the underprivileged
and help them in achieving their potential.

Some of the activities undertaken by the IIFL Foundation:

Barsana eye camp

The IIFL Foundation sponsored an eye and dental camp held in February, 2110 with the
support of expert doctors and surgeons from the Bhaktivedanta Hospital in Barsana near
Mathura. While over 2,600 people underwent eye tests and over 800 were selected for free
eye surgery, a total of over 1,800 dental procedures like extraction, scaling and filling, among
others, were performed.
Team IIFL provided its whole-hearted support to this noble cause and will continue to do so
in the future.

Pandharpur medical camp

The IIFL Foundation sponsored the Pandharpur medical camp which was held by the
Bhaktivedanta Hospital in July 2110 at Pandharpur. Free medical treatment was given at 4
camp sites, to approximately 49,820 pilgrims who had come to Pandharpur during Ashadi
Ekadashi. The pilgrims were treated for fever, injuries, fractures, gastroenteritis, myalagia,
headache, epilepsy, malaria, respiratory infections etc., during the camp.

Blood donation drive

IIFL regularly organizes blood donation drives via camps at its various locations across
India. Over 800 employees have participated in these camps.

53
 CHAPTER-IV
DATA ANALYSIS
AND
INTERPRETATION

54
TABLE 4.1 GENDER
S.NO GENDER NO.OF % OF
RESPONDENT RESPONDENT
1 MALE 17 31

2 FEMALE 36 68

CHART 4.1

INTERPRETATION:
It is observed from the above table and chart that 69% were Female respondents and 31%
were male.

55
 TABLE 4.2.OCCUPATIONS
S.NO OCCUPATION NO.OF RESPONDENT % OF
RESPONDE
NT
1 SERVICE 5 8

2 BUSSINESS 24 45

3 STUDENTS 24 45

4 OTHERS 1 2

Chart 4.2:

INTERPRETATION:
It is observed from the above table that the majority of respondents were from business and
students.

56
TABLE.4.3. AGE
S.NO AGE NO.OF % OF
RESPONDENTS RESPONDENTS
1 25-30 40 75

2 31-40 5 8

3 41-50 5 8

4 51-55 4 9

Chart 4.3:

INTERPRETATION:
It is observed from the above table that the majority of respondents are from 25-30 age
groups with 75%.

57
TABLE.4.4. EDUCATIONAL QUALIFICATION

S.NO QUALIFICATION NO.OF % OF

RESPONDENT RESPONDENT
S S
1 DEGREE 17 31

2 PG 26 50

3 PH.D 5 9

4 OTHERS 6 10

Chart 4.4:

INTERPRETATION:
It is observed from the above table that majority of respondents are from PG and degree.

58
TABLE.4.4. SALARY RANGE

S.NO SALARY NO.OF % OF

RANGE RESPONDENTS RESPONDENTS
1 15,000 to 30,000 40 74

2 30,000 to 50,000 11 20

3 50,000 to above 3 6

Chart 4.5

INTERPRETATION:
It is observed from the above table that majority of salary range is 15,000 to 30,000 with
74% and other salary range respondents are less.

59
TABLE.4.6. ACTIVELY PARTICIPATE IN STOCK MARKET
S.NO PARTICIPATE IN NO.OF % OF
STOCK MARKET RESPONDENTS RESPONDENTS
1 YES 25 45

2 NO 29 55

Chart 4.6

INTERPRETATION:
It is observed from the above table that majority of respondents with 55% were participating
in stock market.

60
TABLE.4.7. ONLINE TRADING

S.NO ONLINE TRADING NO.OF % OF

RESPONDEN RESPONDEN
TS TS
1 YES 16 30

2 NO 38 70

Chart 4.7

INTERPRETATION:
It is observed from the above table that majority of respondents have online trading and less
of the respondents do have online trading.

61
TABLE.4.8. NATURE OF RISK INVOLVED IN ONLINE TRADING

S.NO RISK INVOLVED NO.OF % OF

IN ONLINE RESPONDENTS RESPONDENTS
TRADING
1 YES 40
74
2 NO 14
26

Chart 4.8

INTERPRETATION:
It is observed from the above table that 74% majority of respondents are aware of risk
involved in online trading. 26% of respondents are not aware of risk involved in online
trading.

62
TABLE.4.9. TRADING METHODS DO YOU PREFER

S.NO METHOD OF NO.OF %OF

TRADING RESPONDENTS RESPONDENTS
1 ONLINE 27 50

2 OFFLINE 6 10

3 BOTH 21 40

Chart 4.9

INTERPRETATION:
It is observed from the above table that majority of respondents more prefer online method
with 50% then other methods.

63
TABLE.4.10. ONLINE TRADING HELPED GROWTH & DEVELOPMENT
OF INDIA STOCK MARKET.

S.NO GROWTH OF NO.OF % OF

STOCK RESPONDENTS RESPONDENTS
MARKET
1 YES 45 83

2 NO 9 17

Chart 4.10:

INTERPRETATION:
It is observed from the above table that majority of respondents with 83% agree that online
trading helped growth & development of Indian stock market.

64
TABLE.4.11. INTRODUCTION OF ONLINE TRADING HAS HELPED
NEW INVESTORS

S.NO NEW NO.OF % OF

INVESTORS RESPONDENTS RESPONDENTS
1 YES 16 30

2 NO 38 70

Chart 4.11:

INTERPRETATION:
It is observed from the above table is that majority of respondents are disagreeing with the
introduction of online trading has helped new investors.

65
TABLE.4.12. ONLINE INVESTOR CATEGORY
S.NO ONLINE INVESTOR NO.OF % OF
CATEGORY RESPONDENTS RESPONDENTS
1 UNCERTAIN 25 46
NEWCOMER

2 MODERATE ACTIVE 17 31
TRADER

3 ACTIVE DAY TRADER 7 13

4 HAND IN EVERY POT 5 10

Chart 4.12:

INTERPRETATION:It is observed from the above table that majority of respondents

agreeing uncertain newcomers are 46% then others respondents.

66
TABLE.4.13. SECURITY PLAYS AN IMPORTANT FACTOR FOR ONLINE
TRADING.
S.NO SECURITY IN ONLINE NO.OF % OF RESPONDENTS
TRADING RESPOND
ENTS
1 STRONGLY AGREE 23 44

2 AGREE 25 46

3 NEITHER AGREE NOR 3 5

DISAGREE

4 DISAGREE 3 5

Chart 4.13:

Weighted average = W1X1+W2X2+W3X3+..... WN+XN/ Total no. of respondents.

=23+50+6+12/54
=91/54
=1.68
INTERPRETATION:
It is observed from the above table that 46% majority of respondents agreeing with the
security is important in online trading.

67
TABLE.4.14 .FAVOUR OF ONLINE TRADING
S.NO FAVOUR OF NO.OF % OF
DEMAT RESPONDENTS RESPONDENTS
1 YES 33 61
2 NO 21 39

Chart 4.14

INTERPRETATION:
It is observed from the above table that 61% majority respondents are in favours of online
trading. Only 39% are not favour in online trading.

68
TABLE.4.14. FOLLOWING BELOW DO YOU TRADE ONLINE

S.NO TRADE NO.OF % OF

ONLINE AS RESPONDENTS RESPONDENTS
FOLLOW
1 EQUITY 21 39
2 PORTFOLIO 10 18
MANAGEMEN
T
3 COMMODITIES 9 17
4 FUTURES AND 14 26
OPTIONS

Chart 4.15

INTERPRETATION:
It is observed from the above table that majority of respondents were equity 39% and futures
and options 26% in trade online.

69
TABLE.4.16. BROKER ACTIVITY INVOLVED IN ONLINE TRADING

S.NO BROKER NO.OF % OF

ACTIVITY RESPONDENTS RESPONDENTS
1 YES 33 61

2 NO 21 39

Chart 4.16:

INTREPRATATION:
It is observed from the above table that 61% majority of respondents were agree in broker
activity. And 39% of respondents are not agreeing with broker activity involved in online
trading.

70
TABLE.4.17. EXTEND TIMING OF TRADE HOURS.

S.NO EXTENDING NO.OF % OF

TRADE HOURS RESPONDENTS RESPONDENTS
1 YES 39 72
2 NO 15 28

Chart 4.17:

INTERPRETATION:
It is observed from the above table that 72% majority of respondents agree with the
extending timing of trade hours were 28% not want to extend timing of trade hours.

71
TABLE.4.18.ONLINE TRADING MACHANISM AND FAST WAY OF
TRADING.

S.NO FAST WAY OF NO.OF % OF

TRADING RESPONDENTS RESPONDENTS
1 YES 41 76
2 NO 13 24

Chart 4.18:

INTERPRETATION:
It is observed from the above table that majority of respondents with 76% are agree with the
fast of trading. Some of the respondents are not disagree with fast way of trading.

72
TABLE.4.19. PROBLEM ENCOUNTER IN ONLINE TRADING.

S.NO PROBLEM IN NO.OF % OF

ONLINE RESPONDENTS RESPONDENTS
TRADING
1 CONNECTING 17 31
ISSUE
2 EASE OF USE 14 26
3 SECURITY 19 35
PROBLEM
4 OTHERS 4 8

Chart 4.19:

INTERPRETATION:
It is observed from the above table that majority of respondents have security problem and
31% respondents have connecting issue due to server busy in online trading.

73
TABLE.4.20. CONVENIENCE WAY OF TRADING.

S.NO WAY OF NO.OF % OF

TRADING RESPONDENTS RESPONDENTS
1 YES 43 80
2 NO 11 20

Chart 4.20:

INTERPRETATION:
It is observed from the above table that majority of respondents were agree with the
convenience way of trading.

74
TABLE.4.21. ONLINE TRADING IN SHAREKHAN SECURITIES.

S.NO ONLINE NO.OF % OF

TRADING IN RESPONDENTS RESPONDENTS
SHAREKHAN
SECURITIES
1 YES 23 42
2 NO 31 58

Chart 4.21:

INTERPRETATION:
It is observed from the above table that majority of people do not have online trading in share
khan. .

75
TABLE.4.22. DIFFERENCE BETWEEN A ONLINE TRADING AND
TRADING ACCOUNT.

S.NO DEMAT Vs TRADING NO.OF % OF

ACCOUNT RESPONDENTS RESPONDENTS
1 YES 32 58
2 NO 22 42

Chart 4.22:

INTERPRETATION:
It observed from the above table that majority of respondents with 58% know the difference
between online trading and trading account.

76
TABLE.4.23.SHAREKHAN DIRECT MARKET STOCKS APP IS USEFUL.

S.NO MARKET STOCK NO.OF % OF

APP RESPONDENTS RESPONDENTS
1 YES 36 67
2 NO 18 33

Chart 4.23

INTERPRETATION:
It is observed from the above table that majority of respondents agree that SHAREKHAN
direct market stock app is useful.

77
TABLE.4.24.TRUST AND RELIABILITY ON SHAREKHAN SECURITIES
ONLINE TRADING.

S.NO TRUST ON NO.OF % OF

SHAREKHAN RESPONDENTS RESPONDENTS
SECURITIES
ONLINE
TRADING
1 YES 34 63
2 NO 20 37

Chart 4.24:

INTERPRETATION:
It is observed from the above table that majority of respondents were agreeing with trust and
reliability on Sharekhan securities online trading. Were 37% of respondents don‘t trust on
Sharekhan securities online trading.

78
 TABLE.4.24. OVERALL SERVICE QUALITY OF THE SHAREKHAN
SECURITIES ONLINE TRADING.

S.NO SERVICE NO.OF % OF

QUALITY OF RESPONDENTS RESPONDENTS
SHAREKHAN
SECURITIES
1 GOOD 40 74
2 VERY GOOD 8 15
3 EXCELLENT 6 11

Chart 4.25:

INTERPRETATION:
It is observed from the above table that majority of respondents were from service quality of Sharekhan securities
is good. Were 15% of respondents were agree with very good service quality of Sharekhan securities
.

79
 CHAPTER-V
FINDINGS, SUGGESTIONS AND
CONCLUSIONS

80
FINDINGS
● The majority of the respondents were females, the major age group was 25-30 years
and there were majorly students and business community in respondents.
● Most of the respondents do not have online trading.
● Most of the Respondents are aware of risk involved in online trading.
● Majority of the respondents agree that online trading has helped growth and
development of Indian stock market.
● Uncertain newcomer respondents are more in online trading.
● Most of the respondents agree with the extending timing of trade hours.
● Most of the respondents agree with service quality of online trading.
● Majority of respondents were agreeing that online trading is convenience way of
trading.
● Most of the respondents agree that problem of security encountered in online trading.

81
CONCLUSION

Online trading refers to buying and selling securities via internet. Technology is
revolutionizing every field of human endeavour and activity. New and advanced
technologies have breached geographical and cultural barrier and have brought the
country wide market to doorstep. A structured questionnaire of 25 questions was
framed and circulated to a sample of 54 people. Most of the respondents felt that
online trading helped growth and development of Indian stock market. Most of them
feel at some point there is involvement by stock brokers in the market. Majority of
the respondents felt that security problem to be solved. Respondents felt that online
trading hours should be extended. Most of the people felt the online trading is
convenience way of trading.

82
SUGGESTIONS
● The investor awareness on online trading may be increased and also included in
formal education for youth.
● It is suggested that education on new technologies be provided.

83
 BIBLIOGRAPHY
BOOKS:
● Investment Analysis and portfolio management – Prasanna Chandra

● Financial management – Khan and Jain

JOURNALS
● Vidhya B 2020, “ Evaluation of the awareness and perception of investor on
online share trading and trading techniques prior to investment‖. Thesis
Available from URL http://hdl.handle.net/10603/357889

● Shanker V C 2020, “A comparative study online investor‘s attitude in online

share trading and trading through intermediaries in tirunelveli district‖. Thesis
Available from URL http://hdl.handle.net/10603/357941

● Saravana Kumar A 2020 “Investor perception towards online share trading‖.

Thesis
Available from URL http://hdl.handle.net/10603/303721

● Divya D 2019 “A study on investor awareness opinion and satisfaction

towards commodity trading‖. Thesis
Available from URL http://hdl.handle.net/10603/305097

● Chendu Subha M 2018 “A study on investor‘s attitude towards online share

trading‖. Thesis
Available from URL http://hdl.handle.net/10603/248898

● Asim Iiyas 2018 “ Indian investors attitude and their perceptions towards
commodity trading‖. Thesis
Available from URL http://hdl.handle.net/10603/322208

84
 ● Singh, Ajay 2018 “ Investment behaviour for Indian securities market, a study
of individual investors‖. Thesis
Available from URL http://hdl.handle.net/10603/208486

● Jenisha D 2018 ―Strategic model for analysing risk and return to the average
investors‖. Thesis
Available from URL http://hdl.handle.net/10603/231546

● Anitha, M 2018 ― A study on technical indicators in online trading of select

stocks‖ Thesis
Available from URL http://hdl.handle.net/10603/358753

● Mariammal, A 2014 ―Technology adoption behaviour and attitude of online

share investor‖. Thesis
Available from URL http://hdl.handle.net/10603/71685

● Metha, kruti K 2013 ― A Study on general and legal awareness for online
trading‖ Thesis
Available from URL http://hdl.handle.net/10603/31697

WEBSITES:
● www.sharekhansecurities.com
● www.shodhganga.com
● www.bseindia.com
● www.sebi.com

85
QUESTIONNAIRE

1. Please mention your gender?

(a)Male(b) Female

2. What is your occupation?

(a)Service(b) Business
(c)Students (d) Others

3. What is your age group?

(a)25 – 30(b)31 - 40
(c) 41 – 50 (d) 51 – 55

4. What is your educational qualification?

(a)Degree(b) PG
(c) PhD(d) Others

5. What is your salary range?

(a) 15,000 to 30,000
(b) 30,000 to 50,000
(c) 50,000 to above

6. Do you actively participate in stock market?

(a)Yes(b) No

7. Do you have a Online trading?

(a)Yes(b) No

8. Which of the following method do you prefer?

(a)Online (b) Offline (c) Both(d) Other:

86
9. Are you aware of the nature risk involved in online trading?
(a)Yes(b) No

10. Do you think introduction of online trading has helped in attracting the new investors thus
increasing the trading volumes at stock market?
(a)Yes(b) No

11. Do you think online trading has helped the growth and development of Indian stock
market?
(a)Yes(b) No

12. Which online investor category you belongs to?

(a)Uncertain newcomer(b) Moderate active trader
(c)Active day trader(d) Hand in every pot

13. Does security play an important factor for online trading?

(a)Strongly agree (b) Agree
(c)Neither agree not disagree (d) Disagree

14. Are you in favour of Online trading?

(a) Yes(b) No

15. In which of the following do you trade online?

(a)Equity(b) Portfolio management
(c)Commodities(d) Futures and options

16. Do you check broker activity involved in online trading?

(a)Yes(b) No

17. Do you agree with the extended timing of trading hours?

(a)Yes(b) No

87
18. Do you think online trading mechanism and fast way of trading?
(a) Yes(b) No

19. The problem encounter in online trading?

(a) Connecting issue(b) Ease of use
(c) Security problems(d) others

20. Do you think online trading mechanism is convenience way of trading?

(a) Yes(b) No

21. Do you have Online trading in Sharekhan securities?

(a)Yes(b) No

22. Do you know the difference between a Demat and online trading account?
(a)Yes(b) No

23. Do you think SHAREKHAN direct market stocks app is useful?

(a)Yes(b) No

24. Do you have trust and reliability on Sharekhan securities online trading?
(a) Yes(b) No

25. What do you feel about over all service of the Share khan securities online
trading?(a)Good (b) Very good (c) Excellent

88