Sumit Summer Training Project Final

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A SUMMER TRAINING PROJECT REPORT ON “A STUDY OF ONLINE TRADING AND STOCK BROKING” AT MOTILAL OSWAL SECURITIES LTD. Submitted by SUMIT GOYAL rd M.B.A, 3 SEMESTER AMITY BUSINESS SCHOOL Roll No. 045 Enrollment No. A50001910035  In partial fulfillment fulfillment of the requirement For the degree of Master of of Business  Administration (M.B.A) (M.B.A) (Session 2010-2012) Under the guidance of: Under the supervision of: Ms. Ranjana Kothari Mr.Vishal Gaur (Management Faculty) (Branch Manager) AMITY BUSINESS SCHOOL MOTILAL OSWAL AMITY UNIVERSITY HARYANA Summer Internship Project Report Page 1 DECLARATION I, Sumit Goyal , Roll No 045 , MBA (3 rd semester) student of the Amity Business School, Manesar, hereby declare that the project entitled, “A STUDY ON ONLINE TRADING AND STOCK BROKING” BROKING ” at “ MOTILAL OSWAL SECURITIES LTD.” is an original work and the same has not been submitted to any other institute for the award of any other degree. The seminar presentation of the training report on “A STUDY ON ONLINE TRADING AND STOCK BROKING” BROKING” and the feasible suggestions have been duly incorporated in consultation with the faculty guide. Presentation In-charge Signature of the Candidate (Faculty) Countersigned Director of the institute Summer Internship Project Report Page 2 DECLARATION I, Sumit Goyal , Roll No 045 , MBA (3 rd semester) student of the Amity Business School, Manesar, hereby declare that the project entitled, “A STUDY ON ONLINE TRADING AND STOCK BROKING” BROKING ” at “ MOTILAL OSWAL SECURITIES LTD.” is an original work and the same has not been submitted to any other institute for the award of any other degree. The seminar presentation of the training report on “A STUDY ON ONLINE TRADING AND STOCK BROKING” BROKING” and the feasible suggestions have been duly incorporated in consultation with the faculty guide. Presentation In-charge Signature of the Candidate (Faculty) Countersigned Director of the institute Summer Internship Project Report Page 2 ACKNOWLEDGEMENT Any project cannot be possible successfully completed without the support and help of a lot of people. It is with great pleasure and expresses my deep sense of gratitude the people who have been actively supporting me in project. First of all, I am grateful to Dr. R.C. Sharma, Vice chancellor, Amity University Haryana, for providing me the opportunity to undergo my summer training at Motilal Oswal Securities Limited. I extent a great sense of gratitude and thank to my Industry Guide, Mr. Vishal Gaur, Branch Manager, for encouraging and providing valuable knowledge to me. I am also thankful to my faculty guide, Ms. Ranjana, Amity University Haryana, for giving me guidelines time to time regarding the project. My special words of thanks to the management of  Motilal Oswal Securities Limited for providing me all support for the successful completion of this project. Sumit Goyal Summer Internship Project Report Page 3 TABLE OF CONTENTS Chapter – I  Introduction.  Significance.  Conceptualization.  Objective Of the study.  Limitation of the study.  Research methodology. Chapter – II  Company profile.  Industry profile. Chapter – III  Analysis & interpretation.  Finding. Chapter – IV  Conclusion.  Recommendations. Chapter – V  Bibliography.  Annexure. Summer Internship Project Report Page 4 CHAPTER-1 Summer Internship Project Report Page 5 INTRODUCTION If we seen this study on the basis of concept so we can find its concept very wide because in general all most everyone knows about what is online trading and stock broking, but still it is lagging behind in race. In this internet plays a very big role that‟s why we can say that it is a very wide concept. In today‟s scenario Online Share Trading in Stock market is gaining popularity. Till now most of  the customers were working with offline but in metro cities Online Share Trading is preferred because no one has much time to go to market and work with offline. So online share trading come in picture. In Online Share Trading investors invest their money in stock market through the internet. They do not want to go to a broker. Today companies provided all information on a company website or make their own software. Investors buy or sell their securities in a few seconds by clicking a mouse. Online Share Trading is beneficiary for customer as well as company because in online trading customers have not to take much pain for investing money in a market. All process is done automatically in a few seconds. Companies provided research reports, monthly magazine, etc through Internet. Investors get this information online. These reports help investors for investment in securities. Online Share Trading is very less time consuming and expensive. So Online share Trading is much better than offline share trading. Online Share Trading is safer and faster alternative to the offline Share Trading as it offer freedom from delays, thefts and paperwork. So Online Share Trading is quick, convenient and efficient. CONCEPT OF SHARE TRADING The concept of share broking emerged after the establishment of the joint stock companies. The ownership of the companies was divided into small parts and that every part was called share. So, the term “Share” denominates some part in the ownership of the company. The shares are freely transferable subject to the some certain restrictions. When the need was felt to sell the shares by the owner of the shares, it was difficult to find out the buyers of the shares who want to buy the shares at the price the seller want to sell. At that time a need was felt to bring the buyers and sellers on a common platform. To solve this problem, a group of persons came into picture, which used to bring the buyers and sellers together for the trade of the shares. These persons are called the share Brokers who find the persons who wish to buy or sell their securities. The whole process of finding the buyers and sellers of the securities by the brokers is called the Share Broking. Summer Internship Project Report Page 6 ONLINE TRADING Online trading is a service offered on the internet for purchase and sale of shares. In the real world you place orders on your stockbroker either verbally (personally or telephonically) or in a written form (fax). In online trading, you will access a Stockbroker‟s website through your internet enabled PC and place orders through the  broker‟s internet based trading engine. These orders are routed to the stock  exchange without manual intervention and executed thereon in a matter of a few seconds. 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 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. The net is used as a mode of trading in internet trading. Orders are communicated to the stock exchange through website. ACTIVITIES OF STOCK BROKING COMPANY Stock broker invests in the stock market for individuals or corporations. Only members of the stock  exchange can conduct transactions, so whenever individuals or corporations want to buy or sell stocks they must go through a brokerage house. Stockbrokers often advice and counsel their clients on appropriate investments. Brokers explain the workings of the stock exchange to their clients and gather information from them about their needs and financial ability, and then determine the best investments for them. The broker then sends the order out to the floor of the securities exchange by computer or by phone. When the transaction has been made, the broker supplies the client with the price. The buyer pays for the stock and the broker transfers the title of the stock to the client and performs clearing and settlement procedures. The  beginning stockbroker‟s first priority is learning the market. Stockbrokers spend their time in a fast-paced office, usually working from nine to five, unless they are just starting out or have to meet with clients. The new broker spends many hours on the phone building up a client base. Sometimes brokers teach financial education classes to expose themselves to potential investors who may then become their clients. Summer Internship Project Report Page 7 SIGNIFICANCE  The study will help to get knowledge about online trading and stock broking.  The study will help to know the awareness level of consumers.  The study will also help to get knowledge about share market and share trading.  This study helps customers to invest their money through internet. Summer Internship Project Report Page 8 CONCEPTUALISATION In today‟s scenario Online Share Trading in Stock market is gaining popularity. Till now most of the customers were working with offline but in metro cities Online Share Trading is preferred because no one has much time to go to market and work with offline.Online trading is a service offered on the internet for purchase and sale of shares. In the real world you place orders on your stockbroker either verbally (personally or telephonically) or in a written form (fax). In online trading, you will access a S tockbroker‟s website through your internet enabled PC and place orders through the broker‟s internet based trading engine. These orders are routed to the stock exchange without manual intervention and executed thereon in a matter of a few seconds. The internet is used as a mode of trading in internet trading. Orders are communicated to the stock  exchange through website. Activities of stock broking company Stock broker invests in the stock market for individuals or corporations. Only members of the stock  exchange can conduct transactions, so whenever individuals or corporations want to buy or sell stocks they must go through a brokerage house. Stockbrokers often advice and counsel their clients on appropriate investments. Brokers explain the workings of the stock exchange to their clients and gather information from them about their needs and financial ability, and then determine the best investments for them. The broker then sends the order out to the floor of the securities exchange by computer or by phone. When the transaction has been made, the broker supplies the client with the price. The buyer pays for the stock and the broker transfers the title of the stock to the client and performs clearing and settlement procedures. The  beginning stockbroker‟s first priority is learning the market. Stockbrokers spend their time in a fast-paced office, usually working from nine to five, unless they are just starting out or have to meet with clients. The new broker spends many hours on the phone building up a client base. Sometimes brokers teach financial education classes to expose themselves to potential investors who may then become their clients. Summer Internship Project Report Page 9 FACILITIES OF THE ONLINE TRADING INDIA The investor has to register with an online trading portal and get into an agreement with the firm to trade in different securities following the terms and conditions listed down on the agreement. The order processing is done in correct things as the serves of the online trading portal are connected to the stock  exchange s and designated banks all round the clock. They can also get updates on the trading and check  the status of their orders either through e-mail or through the interface. Brokerage also provides research content on their web-sites, such that the clients can take down decisions on stocks before investing. Summer Internship Project Report Page 10 OBJECTIVE OF THE STUDY This analytical study has the following objectives which are based upon-:  To know about the past trend this services is carry on and its effect on the organization.  To study about stock broking at Motilal Oswal Securities Ltd.  To know the preference of consumers towards online trading.  To study about online trading.  To Know which type of trading customer prefer i.e online trading or offline trading.  To Know the shortcoming in online trading in Indian stock market.  To know various concepts related to this service and how these concepts have an effect on it.  To check whether the company has launched any new services or t hey are thinking of any new services to be offered to the company.  To know about the technical facts of these services to determine the performance of the company in these areas. Summer Internship Project Report Page 11 LIMITATION OF THE PROJECT  As only Agra was dealt in the survey so it does not represent the view of the total Indian market.  The sample size was restricted with 40 respondents.  There was lack of time on the part of respondents.  The survey was carried through questionnaire and the questions were based on perception.  There may be biasness in information by market participant.  Complete data was not available due to company privacy and secrecy.  Some people were not willing to disclose the investment profile. Summer Internship Project Report Page 12 RESEARCH METHODOLOGY RESEARCH DESIGN This report is based on primary as well secondary data, however primary data collection was given more importance. One of the most important users of research methodology is that it helps in identifying the problem, collecting, analyzing the required information data and providing an alternative solution to the problem. This report consist research design of descriptive and exploratory research. Also it is a kind of  quantitative and qualitative research because it is based on data as well as views of customers respectively. In case of adopting quantitative research, it can be rightly said that larger is the data accurate is the information. Collecting data through survey provides information needed in the appropriate manner accurately QUESTIONNAIRE and INTERVIEW methods were adopted to analyze the activity. The methodology adopted includes  Questionnaire.  Interviews.  Discussions with the concerned. SAMPLING PLAN: Sampling: Since motilal oswal securities Limited has many segments I selected Online Trading and Stock Broking segment. 100% coverage was difficult within the limited period of time. Hence sampling survey method was adopted for the purpose of the study. Population: (Universe) customers & non consumers of Motilal Oswal Securities limited. Sampling size: A sample of 40 has taken for the purpose of the study. Sample size consists of investors mainly interested in online trading. Summer Internship Project Report Page 13 Sampling Methods: Probability sampling requires complete knowledge about all sampling units in the universe. Due to time constraint non-probability sampling will be chosen for the study. Data collection sources: For this study I will use Primary as well as Secondary data. The sources used for the collection of  Primary data will be:  Questionnaires  Tele-calling  Personal Visits  Clients References The sources used for the collection of  Secondary data will be:  Internet  Database provided by the Motilal Oswal Securities Limited. Summer Internship Project Report Page 14 Chapter-2 Summer Internship Project Report Page 15 COMPANY PROFILE Motilal Oswal Securities Ltd. (MOSL) was founded in 1987 as a small sub-broking unit, with just two people running the show. Focus on customer-first-attitude, ethical and transparent business practices, respect for professionalism, research-based value investing and implementation of cutting-edge technology has enabled us to blossom into an over 1600 member team. Today we are a well diversified financial services firm offering a range of financial products and services such as Wealth Management, Broking & Distribution, Commodity Broking, Portfolio Management Services, Institutional Equities, Private Equity, Investment Banking Services and Principal Strategies. We have a diversified client base that includes retail customers (including High Net worth Individuals), mutual funds, foreign institutional investors, financial institutions and corporate clients. We are headquartered in Mumbai and as of June 30th, 2011, had a network spread over 586 cities and towns comprising 1,607 Business Locations operated by our Business Partners and us. As at June 30th, 2011, we had 722,303 registered customers. Financial: In 2006, the Company placed 9.48% of its equity with two leading private equity investors based out of the US – New Vernon Private Equity Limited and Bessemer Venture Partners. The company got listed on BSE and NSE on September 9, 2007. The issue which was priced at Rs.825 per share (face value Rs.5 per share) got a overwhelming response and was subscribed 27.18 times in turbulent market conditions. The issue gave a return of 21% on the date of listing. As of end of financial year 2008, the group networth was Rs.7 bn and market capitalization as of March 31, 2008 was Rs.19 bn. Credit rating agency Crisil has assigned the highest rating of P1+ to the Company‟s short-term debt program. Shareholding Pattern at on 30th June, 2011.As of June 30th, 2011; the total shareholding of the Promoter and Promoter Group stood at 69.16%. The shareholding of institutions stood at 12.07% and noninstitutions at 18.77%. Summer Internship Project Report Page 16 VISION: MISSION “To educate and empower the individual investor to make better investment decisions through:  QUALITY ADVICE  INNOVATIVE PRODUCTS and  SUPERIOR SERVICE.” Summer Internship Project Report Page 17 Our Core Purpose Summer Internship Project Report Page 18 Product And Services Offered By Motilal Oswal Securities Ltd.  Equity Trading Platform (Online/Offline).  Commodities Trading Platform (Online/Offline).  Portfolio Management Service.  Mutual Fund Distribution.  Insurance Distribution.  IPOs.  Demat.  Derivatives.  Currency.  Wealth Management.  Asset Management.  Investment Banking. Summer Internship Project Report Page 19 Reason To Choose Motilal Oswal Securities Ltd. Motilal Oswal Securities entered into a strategic alliance with Barclays Bank, for an equity trading platform for its (Barclays) customers. This alliance provides Barclays customers with the option to invest in equities, derivatives and IPOs, through MOSL. The following are:  Motilal Oswal in association with Zee Business, hosted the first of its series of seminars under its investors education initiative called Investor Ki Kahani Usi Ki Zubani on July 2, 2011 at BSE in Mumbai.  Motilal Oswal Asset Management Company bec omes India‟s 1st AMC to ring The NASDAQ Stock Market Opening Bell on 30 March 2011, to celebrate the launch of Motilal Oswal MOSt Shares NASDAQ 100 - India‟s First US Equities Based ETF.  The 15th Motilal Oswal Wealth Creation Study presentation was held in Mumbai on 15th December 2010 and was covered live on CNBC TV18  Motilal Oswal Mutual Fund‟s MOSt Shares M50 bagged the „Most Innovative Fund of the Year‟ Award at CNBC TV18-CRISIL Mutual Fund Award 2011 held in Mumbai.  MOSL ranked No. 2 (Best Local brokerage) in the Asia Money Brokers Poll 2009 and No. 2 (Best Indian Brokerage House) category by Institutional Investor.  Motilal Oswal Investment Advisors facilitates the first cross border acquisition by an Indian company in the sugar sector in Brazil  Motilal Oswal Private Equity organized the First Annual Investor Meet of India Realty Excellence Fund (IREF) on 28th August, 2010 in Mumbai. The event provided a platform for investors to interact with the investment team, MOPE‟s partner developers and get a flavor of their investment strategy  Motilal Oswal Securities Ltd. enters 'Limca Book of Records' for creating India's largest dealing room in Mumbai. Summer Internship Project Report Page 20 Benefits: Motilal Oswal Investment Services offers you a state-of-the-art Online Trading platform that gives you: Benefits of opening an account with MOSL:  Wide range of investment choices - Equity, Derivatives, IPOs and Mutual Funds.  Award winning research trusted by 300+ Institutions & Fund Managers.  Flexible Online Trading Platform from your Desktop, Web, Mobile or Call N-Trade.  Superior Leverage Products allowing you to trade more on your margin.  Discounted Brokerage Schemes that offer you true value for money.  Better Security with 128-bit Secure Socket Layer encryption.  Complete ease of operation with 46+ Banks for funds transfer.  Integrated view of your investments, customised news & alerts, watchlists, etc. through Motilal Oswal.  Instant Cash Transfer  Multiple Bank Option.  Secure Order by Voice Tool Dial-n-Trade.  Automated Portfolio to keep track of the value of your actual purchases.  24x7 Voice Tool access to your trading account.  Personalized Price and Account Alerts delivered instantly to your Mobile Phone & E-mail address.  On-line Customer Service via Web Chat.  Enjoy Automated Portfolio.  Buy or sell even single share  Anytime Ordering. Summer Internship Project Report Page 21 Type Of Account:  Value Pac: Value Pac is the upfront subscription scheme, which gives significant discounts in brokerages rates with defined time period to use it. With the wide range of value pacs, based on the volume of trade and the validity period one enjoy the benefit of placing at reduced charges.  Margin Account: Margin account is suitable for those who don‟t want to commit to a value pac (upfront subscription). In Margin Account investor have to give defined upfront margin amount at the time of opening the account. Trading Platform:  Web Platform: Web Platform is suited for first time investors who want a clean and simple interface. Investors can trade from any internet connected PC and place the order with instant confirmation.  Desktop Platform: Desktop Platform is suitable for those investors and traders who want live market watch and faster execution.  Mobile Platform: Mobile Platform works on most GPRS enabled mobile phones. Investor can directly Buy/Sell from market watch. It also provides the facility to modify or cancel the pending orders.  Call-N-Trade: Call-N-Trade Platform is suitable when investor don‟t have online access to their trading site. All Motilal Oswal Customers enjoy Call-N-Trade services at no additional cost. Summer Internship Project Report Page 22 Account Opening Fees & Annual maintenance charges (AMC)  Trading Account opening charges (one time): Rs.0.  Trading Annual maintenance charges (AMC): Rs.0.  Demat Account Opening Charges (One Time): Rs. 0.  Demat Account Annual Maintenance Charges (AMC): Rs.441. Trading Brokerages:   For Value Pac (value 2500)  Intra-day traders: 0.080%.  Delivery Based trader: 0.40%.  F&O Traders: 0.090%.  Options trades:Rs.100 per contract. For Margin Scheme (Margin 10,000)  Intra-day traders: 0.10%.  Delivery Based trader: 0.50%.  F&O Traders: 0.10%.  Options trades:Rs.100 per contract. How to open account with Motilal Oswal Securities Ltd? For online trading with Motilal OSwal investors has to open an account. Following are the ways to open an account with motilal oswal securities ltd:  Call them at 022-30896680 and ask that you want to open an account with them.  Type MOST INFO and sms at 575753.  Log on to www.motilaloswal.com.  Contact Motilal Oswal by sending e-mail at [email protected]. Summer Internship Project Report Page 23 How to open an online trading account with Motilal Oswal? To open an account with motilal oswal the following steps are to be followed:  To open an online trading account with Motilal Oswal. Investors has to fill up the application form, make an online payment as per the scheme details and submit the form electronically.  Once the investor have submitted the online application form, one of the representative from motilal oswal will contact the investor and get the signatur on the application form submitted by investors and get the signature on the application form submitted by investor and collect all the documents or proofs.  Once they have verified the application form and supportive documentation, they will activate the account. This will normally happen within 3-5 working days.  After the activation of the account, PIN mailers containing the password will be sent on correspondence address. List of Documents required to open an account:  Proof of Identity - Copy of PAN Card.  Proof of Address – Copy of any one of the following (self attested). - Passport. - Ration card. - Voter‟s ID. - Driving License. - Electricity Bill (not more than 2 month old). - Landline Telephone Bill (not more than 2 month old). - Bank Pass Book.  Bank Proof  – Copy of bank pass book or personalized cheque leaf.  3 Photographs. Summer Internship Project Report Page 24 INDUSTRY PROFILE INDIAN STOCK MARKET OVERVIEW The Bombay stock exchanges (BES) and the National Stock Exchange of India Ltd (NSE) are the two primary exchange in India. In addition, there are 28 Regional Stock Exchanges However, the BSE and NSE have established themselves as the two leading exchanges and account for about 80% of the equity volume traded in India. The average daily turnover at the exchanges has increased from Rs. 851 crore in 1997-98 to Rs. 1,284 crore in 1998-99 and further to Re. 2273 crore in 1999-2000 (April- August 1999). NSE has around 1500 shares listed with a total market capitalization of around Rs. 921500 crore (Rs. 9215 Bln). The BSE has over 6000 stocks listed and has a market capitalization of around Rs. 968000 crore (9680 Bln). 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 bourse. 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 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 Scripts 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 (Badla). The „F‟ group represents the debt market (fixed income securities) segment. The „Z‟ group scripts 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. Summer Internship Project Report Page 25 ABOUT NSE The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock  Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country. On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000. NSE Group: - NSCCL - IISL - NSE.IT - NSDL - DotExIntl.Ltd ABOUT BSE BSE Limited is the oldest stock exchange in Asia What is now popularly known as the BSE was established as "The Native Share & Stock Brokers' Association" in 1875. Over the past 135 years, BSE has facilitated the growth of the Indian corporate sector by providing it with an efficient capital raising platform. Today, BSE is the world's number 1 exchange in the world in terms of the number of listed companies (over 4900). It is the world's 5th most active in terms of number of transactions handled through its electronic trading system. And it is in the top ten of global exchanges in terms of the market capitalization Summer Internship Project Report Page 26 of its listed companies (as of December 31, 2009). The companies listed on BSE command a total market capitalization of USD Trillion 1.28 as of Feb, 2010. BSE is the first exchange in India and the second in the world to obtain an ISO 9001:2000 certification. It is also the first Exchange in the country and second in the world to receive Information Security Management System Standard BS 7799-2-2002 certification for its BSE OnLine trading System (BOLT). Presently, we are ISO 27001:2005 certified, which is a ISO version of BS 7799 for Information Security. The BSE Index, SENSEX, is India's first and most popular Stock Market benchmark index. Exchange traded funds (ETF) on SENSEX, are listed on BSE and in Hong Kong. Futures and options on the index are also traded at BSE. The Exchange, while providing an efficient and transparent market for trading in securities, debt and derivatives upholds the interests of the investors and ensures redressal of their grievances whether against the companies or its own member-brokers. It also strives to educate and enlighten the investors by conducting investor education programs and making available to t hem necessary informative inputs. A Governing Board having 20 directors is the apex body, which decides the policies and regulates the affairs of the Exchange. The Governing Board consists of 9 elected directors, who are from the broking community (one third of them retire ever year by rotation), three SEBI nominees, six public representatives and an Executive Director & Chief Executive Officer and a Chief  Operating Officer. The Executive Director as the Chief Executive Officer is responsible for the day-to-day administration of the Exchange and he is assisted by the Chief Operating Officer and other Heads of  Departments. The Exchange has inserted new Rule No.126 A in its Rules, Bye-laws & Regulations pertaining to constitution of the Executive Committee of the Exchange. Accordingly, an Executive Committee, consisting of three elected directors, three SEBI nominees or public representatives, Summer Internship Project Report Page 27 Executive Director & CEO and Chief Operating Officer has been constituted. The Committee considers judicial & quasi matters in which the Governing Board has powers as an Appellate Authority, matters regarding annulment of transactions, admission, continuance and suspension of  member-brokers, declaration of a member-broker as defaulter, norms, procedures and other matters relating to arbitration, fees, deposits, margins and other monies payable by the member brokers to the Exchange, etc. Sensex Milestones: Here's a timeline on the rise and rise of the Sensex through Indian stock market history. There are 23 stock exchanges in India. Among them two are national level stock exchanges namely Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE). The rest 21 are Regional Stock Exchanges (RSE). List of Regional Stock Exchanges in India are:  Ahmadabad Stock Exchange Association Ltd. Manek Chowk  Ahmadabad 380 001, India  Bangalore Stock Exchange Stock Exchange Towers No 51 1st Cross, J C Road Bangalore 560 027, India  Bhubaneswar Stock Exchange Association 217 Budhraja Building Jharpara Cuttak Road Bhubaneswar 751 006, India Summer Internship Project Report Page 28  Calcutta Stock Exchange 7 Lyins Range Calcutta 700 001, India Fax: 91-33-20-2514  Cochin Stock Exchange Ltd. Exchange House 38/1431 Kaloor Road Extension Ernakulum, Kochi-682035,, India  Coimbatore Stock Exchange Chamber Towers 8/732 Avinashi Road Coimbatore 641 018, India  Delhi Stock Exchange Association 3 & 4/4B Asaf Ali Road West Plaza, I.G. Stadium New Delhi 110 002, India Fax: 91-11-332-6182  Guwahati Stock Exchange Ltd. Saraf Building Annexes A.T. Road Guwahati 781 001, India  Hyderabad Stock Exchange Ltd. Bank Street Hyderabad 500 001, India Summer Internship Project Report Page 29  Jaipur Stock Exchange Ltd Rajasthan Chamber Bhawan M.I. Road Jaipur 302 003, India  Kanara Stock Exchange Ltd 4th Floor, Rambhavan Complex Kodialbail Mangalore 575 003, India  Ludhiana Stock Exchange Association Ltd Lajpat Rai Market, Clock Tower Ludhiana 141 008, India  Madras Stock Exchange 11 Second Line Beach Exchange Building Madras 600 004, India Fax: 91-44-514-897  Madhya Pradesh Stock Exchange Ltd. 67, Bada Sarafa Indore 452 002, India Summer Internship Project Report Page 30  Mangalore Stock Exchange Limited 4th Floor, Rambhavan Complex Mangalore 575 003, Karnataka, India Fax: 91-824-21491  Meerut Stock Exchange Ltd. Kingsway Building 345 Bombay Bazar Meerut Cantonment 250 001, India  Mumbai Stock Exchange Phiroze Jeejeebhoy Towers Dalal Street Mumbai 400 001, India Fax: 91-22-265-8121  National Stock Exchange of India Mahendra Towers, "A" Wing 1st Floor, RBC, and Worli Bombay 400 018, India Fax: 91-22-493-5631  OTC Exchange of India 92/93 Market Tower "F" Cuffe Parade Bombay 400 005, India Fax: 91-22-218-8511 Summer Internship Project Report Page 31  Pune Stock Exchange Ltd. 1177, Budhwar Peth Bank of Maharashtra Building, 2nd Floor Bajirao Road Pune 411 002, India  Saurashtra Kutch Stock Exchange Ltd. 4, Swaminarayan Gurukul Building Dhebarbhai Road Rajkot 380 002, India  Uttar Pradesh Stock Exchange Association Ltd. Padam Towers 14/113 Civil Lines Kanpur 208 001, India  Vadodara Stock Exchange Ltd. 101 Paradise Complex Tilak Road, Sayaji Gunj Vadodara 390 005, India Summer Internship Project Report Page 32 Chapter - 3 Summer Internship Project Report Page 33 ANALYSIS & INTERPRETATION Q.1 What type of trading do you prefer Intraday or Delivery? Graphical Analysis: intraday delivery 45% 55% Interpretation: 45% of customers prefer intraday trading and 55% of customers prefer delivery. Summer Internship Project Report Page 34 Q.2 How frequently do you trade? Graphical Analysis: Chart Title yearly 15% daily 13% weekly 17% monthly 55% Interpretation: 13% of trader‟s are interested in trade daily, 17% of trader‟s are interested in trade weekly, 55% of traders are interested in trade monthly and 15 % of traders interested in trade yearly . Summer Internship Project Report Page 35 Q.3 Satisfaction level among customers with current brokers? Graphical Analysis: no 15% yes 85% Interpretation: This pie chart shows the fact that 85% customers are satisfied with current brokers Summer Internship Project Report Page 36 4- If you trade with Motilal Oswal Secrities limited then why? Graphical Analysis: Chart Title Services 22% Brokrage Rate 28% Tips 15% Research Report 35% Interpretation: 22% of the respondents are satisfied with services offered by Motilal Oswal Securities Ltd., 15% with the tips, 35% are satisfied with research report and 28% of respondents are satisfied with the brokerage rate of  Motilal Oswal. Summer Internship Project Report Page 37 5. Which trading you prefer? (a) On line trading (b) offline trading (c) Both Graphical Analysis: 20% Online Offline 20% 60% Both Interpretation: According to this survey we find that 60% people prefer online trading and 20% people prefer offline trading rest of 20% people prefers both. So we can say that mostly people are awareness about the on line trading and because of this reason the mostly people are optimizing offline trading. Summer Internship Project Report Page 38 6. What shortcomings do you feel in Indian On-Line trading? (a) Lack of awareness the investors about on-line trading (b) Shortage of domestic technical expertise (c) Shortage of Infra structure (d) Any other Sample Size 40 Graphical Analysis: Chart Title Lack of  awareness 15% Any Other 15% Infra Structure 20% Technical Expertise 50% Interpretation: According to this survey we find that 15% of people say lack of awareness 50% says Shortage of  expertise and 20% people says Shortage of Infra structure and 15% says any other. Summer Internship Project Report Page 39 7. Are you satisfied with the brokerage rates of Motilal Oswal Securities Ltd? Graphical Analysis: NO 35% YES 65% Interpretation: Approx; 65%of the respondents says that we are satisfied with the brokerage rates of Motilal Oswal Securities Ltd. and 35% respondents says we are not satisfied. Summer Internship Project Report Page 40 8. In future would you like to trade through Motilal Oswal? Graphical Analysis: NO 25% YES 75% Interpretation: Acc to this survey 75% says they would like to do trade with Motilal Oswal and 25% says will not be interested to do trade with Motilal Oswal. Summer Internship Project Report Page 41 9. Which Type of Investment Instrument Do you Prefer For Investment? a) Equities/Shares. b) Commodities. c) Mutual Fund. Graphical Analysis: mutual funds 30% commodities 25% Equities 45% Interpretation: According to this survey, Most of the people prefer Equities (45%) for investment purpose. Summer Internship Project Report Page 42 FINDINGS • 45% of customers prefer intraday trading and 55% of customers prefer delivery. • 13% of traders trade daily, 17% of traders trade weekly, 55% of traders trade monthly and 15 % of  traders trade yearly • This pie chart shows the fact that 85% customers are satisfied with current brokers • 22% of the respondents are satisfied with services offered by motilal oswal, 15% with the tips, 35% are satisfied with research report and 28% of respondents are satisfied with the brokerage rate of  motilal oswal. • According to this survey we find that 60% people prefer online trading and 20% people prefer offline trading rest of 20% people prefers both. So we can say that mostly people are awareness about the on line trading and because of this reason the mostly people are optimizing offline trading. • According to this survey we find that 15% of people say lack of awareness 50% says Shortage of  expertise and 20% people says Shortage of Infra structure and 15% says any other. • Approx; 65%of the respondents says that we are satisfied with the brokerage rates of motilal oswal securities ltd. and 35% respondents says we are not satisfied. • Acc to this 75% says they would like to do trade with MOTILAL OSWAL and 25% says will not be interested to do trade with MOTILAL OSWAL. • Quality of service is the most influential aspect of a bank / broking agency that appeals the investor. Summer Internship Project Report Page 43 Chapter-4 Summer Internship Project Report Page 44 CONCLUSION  Things have changed for the better with the MOTILAL OSWAL going on-line coupled with endeavor to stream line the whole trading system, things have changed dramatically over the last 3 to 4 years. New and advanced technologies have breached geographical and cultural barriers, and have brought the countrywide market to doorstep.  In the present scenario to compete with the Broker‟s would require sound infrastructure and trading as per international standards.  The introduction of on-line trading would influence the investors resulting in an increase in the business of the exchange. It has helped the brokers handling a vast amount of transactions and this can be an efficient trading, delivering, settlement system with adequate protection to investors. The trading of MOTILAL OSWAL of the first day was Rs. 1.8 crores.  Due to invention of online trading there has been greater benefit to the investors as they could sell /  buy shares as and when required and that to with online trading.  The broker‟s has a greater scope than compared to the earlier times because of invention of online trading.  The concept of business has changed today; this is a service oriented industry hence the survival would require them to provide the best possible.  The speculative pressures are responsible for the wide changes in the price, not attracting the genuine investors to the greater extent towards the market. Summer Internship Project Report Page 45 RECOMMENDATIONS • Introduction of more private players can help to increase the awareness levels regarding online trading services. • Motilal Oswal should increase its promotional activities and it should make aware people of Agra city about its product and services • Since more and more companies are planning to enter into online trading, quality of service should be continuously updated. • Target the new hidden customers, for whom the net can bring out convenience and comfort like NRI, women, young executives, professionals etc. • Company should reduce the brokerage rates, so that more customers will be attracted towards trading. • More number of workshops, seminars, awareness programs etc must be conducted regarding online trading and their benefits so as to bring up the awareness levels and channelize the potential investment. • Quality of service is the most influential aspect of a bank / broking agency that appeals the investor. Summer Internship Project Report Page 46 Chapter- 5 Summer Internship Project Report Page 47 BIBLIOGAPHY Book Referred  International Business & Economics Research Journal  – March 2008 Volume 7, Number 361  International Journal of Banking, Accounting and Finance- Volume 1, November 3 / 2009, Number 285 – 309.  Marketing of Financial Service -V.A.Avadhani  Indian Financial System -M.Y.Khan  C. R. Kothari, Research Methodology, Vishwa Prakshan MAGAZINES Business World LSE‟s Magazine Web Sites  www.Motilaloswal.com  www.sebi.gov.in  www.moneycontrol.com  www.karvy.com  www.valueresarchonline.com  www.yahoofinance.com  www.theeconomist.com  www.nseindia.com  www.bseindia.com Summer Internship Project Report Page 48 ANNEXURE QUESTIONNAIRE NAME…………………………………. OCCUPATION………………………. AGE…………………… PHONE NO.................................. 1. What type of trading do you prefer?  Intra-day.  Delivery 2. How frequently do you trade?  Yearly.  Monthly  Weekly.  Daily. 3. Are you satisfied with your current brokers?  Yes.  No. 4. If you trade with Motilal Oswal then why?  Services.  Brokerage Rate.  Tips.  Research Report. 5. Which trading you prefer?  On-Line.  Off-Line.  Both. Summer Internship Project Report Page 49