Online trading essay

TOPIC- CUSTOMER PREFERENSE TOWORDS ONLINE REVEAL TRADING WITH UNIQUE REFERENSE TO ANAND RATHI SECURITIES IN BHILAI DURG REGION INTRODUCTION ONLINE TRADING Today is definitely world of technology. So , anybody who go for it, get the accomplishment. So , online trading means trading through electronic means. Online trading is the trading in which the investors who are familiar with the use of computer and Internet they straight trade in stock market. They will trade at any time at any place when the stock market is open. The price tag on transaction is likewise reduce over time. The shareholders have a large range of means to fix the trading.

It is a paperless transaction therefore it reduces the price of company. There is a service of football quotes, which usually give specific price of share which usually prevailing available in the market at that time. Price cut online brokerages allow you to transact via Internet at decreased rates. A lot of provide quality research, various other don’t. Full service on the net brokerage is usually linked to existing brokerage. These kinds of brokers let their customer to place on the net orders with all the option of talking/chatting to brokers if guidance is needed. Broker agent rates allow me to share higher. On the web trading is still in its infancy level in India.

Online trading involves expense activity which usually takes place on the internet and it does not require physical inclusion with the broker. An investor has to sign-up with a web based trading website like ICICIdirect. com, motilaloswal. com and sharekhan. com and many firms like that and investor gets into an agreement while using firm to trade in different securities based on the terms and conditions presented on the arrangement. As the servers in the online trading portal are connected on a regular basis to the share exchanges and designated banking companies the purchase processing is performed in real time and investors also can have changes on the trading.

They can as well check the position of their orders either through email or through the interface that this cannot be utilized by a 3rd party. Some options are usually provided to users such as to hyperlink their bank-account, Demat accounts and brokerage accounts into one interface. Just one window is also there for all exchanges and a single screen is there intended for the complete order routing system. The components used comprises of Web and application computers, switches, routers, firewalls and security equipment, and particular appliances. You will discover two broad model inplay in the online brokrege space 1 .

Bank-backed businesses 2 . Entrepreneur-floated firms Bank-backed brokerages including ICICIdirect and HDFC Investments have expanded on the basis of their particular brand name plus the trust of investors in them. The integrated 3-in-1 accounts offered by these bank-backed brokerages support their father or mother bank by providing it accounts along with float profits In second case i actually. e Entrepreneur-backed companies just like Sharekhan, Indiabulls, Religare and Indiainfoline have got expanded by providing customers a mix of online and offline accounts, higher perimeter finance portions and reduce brokerage prices.

Though the traditional bank based offers performed better but the last mentioned have not lagged too far in back of. The reason why online trading has evolved over standard offline broker firms is the conventional method struggled with unfavorable economies. Staff expense is just one sort of it. As the markets clears for 330 minutes a day one supplier can best case scenario execute 500 trades in a day while online company like ICICI direct executes 150, 000-200, 000 investments a day around the National Stock market alone accounting for 3-4% of NSE trades of 5 million a day. It could require a wide range of dealers to service this demand.

In addition to the salary costs it would likewise demand huge expenses in real estate and support systems. Ex The offline model has got a demise in the form of lower bandwidth and IT costs and the cost of bandwidth features fallen to one-eighth of what it was in 2000 offering online broking an advantage particularly in the case of lower-volume price tag investors. Today 30% of volumes on the NSE originates from this and it may go up to 50 percent in three-four years rendering explosive progress for online broking in India To become a successful trading portal it will eventually definitely be based upon bouquet of services offered by it for an end-user.

Most of the websites charge a tiny registration charge and broker based on various conditions nevertheless important for the organization to keep concentrated on customer-centric services and delivery types to actually take advantage of the most focus Emmergence of online trading in india The American indian trader will be fancied by the democratized regarding online trading or also referred to as e-broking. The totally normal and appealing advertisements inside the print media and electronic media have added to this extravagant world. But as we out-do the Western countries, in India on-line rading hasn’t still appreciated the market, although has done a veried amount of improvement in the past years and the future of online trading is bright. That is why many new companies are coming into this form of business framework and the existing companies are changing to this fresh format besides offline and other traditional kinds of business. With only a mere share of 10% online trading a combined gross turnover of around Rs. 9000-10, 000 crores taken care of by the BSE and NSE together there is a much greater scope for online trading.

Presently some of the prominent players in the online trading market of share market will be 1 . Sharekhan. com 2 . Icicidirect. com 3. Unicon 4. 5paisa. com a few. Indiabulls 6th. KotakSecurities several. MotilalOswal eight. Geojit Investments 9. Angel Trade twelve. RelianceMoney 11. Religare 12. Karvy 13. IL Previous the discuss market has not been safe enough to invest sometimes of the modifications in our past a decade in the Of india share marketplace have created the eye of trading in the stocks by the people.

Broadly we can classify 3 important factors which have contributed to the introduction of online trading in India- Firstly the main step was taken by the National Stock Exchange (NSE) in the year 1994 which in turn allowed the electronic trading and seeing to this other sorts of stock exchanges in India followed shortly. This helped in making the fast. appropriate and translucent transactions saving a lot of time then the traditional technique of trading. The investors were also saved by the clutches with the fraud broker agents at the occasions when the clients were not conscious of the true prices of the stocks.

Secondly, back in 1996 the dematerialization from the shares came (also referred to as DEMAT) which usually avoided the web presence of shares within an electronic kind avoiding all of them from fraud, pilferage or from other losses like counterfeiting and frauds regarding talk about transfer. The third reason was the rapid regarding computer instruction of internet by people. With the evolving of sites the online trading became a hit and the investors became assured in trading just using a click of your mouse. While using happening of such situations the ratio of trading has better a lot.

Mainly because it takes less time people reward this technology for trading purposes. Some people who traded rarely now even trades 2-3 moments every day since it provides advantage of exploring about corporations on the internet. The number of tiny investors is definitely increasing on the daily basis that trading on the net. If a person invests or perhaps trades in equities, derivatives, commodities and so on through the make use of Internet it can be known as on the web trading permitting the investor to connect electronically to buy or perhaps sell stocks and shares, derivatives and so on with the various other investors.

This could be done with the help of online service providers like Sharekhan. com, ICICI Direct. com etc . A person might access a stockbrokers web page through an PC connected to Internet and can place his instructions. The benefits are- * A person can see the newest market motion through streaming quotes. 2. Reduces period lag because of self-execution and instant affirmation. * Empowers traders to experience a complete control of their trading decisions. 5. A person can get his accounts and related information on the web site. Provides better convenience of transact as a person can control from home or other convenient location. * It can be cheap with regards to cost linked and offers lowering of overheads 2. A trader may view the famous charts in the computer. The net revolution has changed the way to speak and the way to work in today’s world bringing us closer and closer to vital sources of info. It provides all of us with methods to directly interact with service-oriented personal computers tailored to the specific requirements, therefore we can serve themselves better by making our own decisions.

This new get by the online trading buyers to low-cost transactions and cutting-edge, real- time marketplace information that formerly belonged only to broker agents has opened extraordinary new investment chances as well as a essential need for cutting edge information Today the shareholders use the Internet Client-Server technology to obtain and sell the securities in an instant at any time of time. Persons investing on the net have reached the proportions. On the net trading employs an investor to buy and sell stocks and shares on the exchange through Internet and helps inside the direct charge of his assets ONLINE TRADING IN INDIA

Online trading started in India in February 2000 every time a couple of brokerages started offering an online forex trading platform for their buyers. In the past, traders had simply no option but for contact their broker to get real time access to industry data. The web brings data to the investor on line and net broking enables him to operate on a simply click. Now data has become easily accessible to the two retail along with big investors. The development of broking in India can be labeled in a few phases: 5. Stock agents offering on the sites features such as live portfolio supervisor, live rates, market research and news to attract more shareholders. * Broker agents (now e-brokers) will offer benefit management or services such as initial community offerings on line, asset portion, portfolio management, financial planning, and tax planning, insurance services and enable the investors to take better and well-considered decisions. 2. Brokers supplying on line broking and relationship management by providing and providing analysis and information to investors during broking and non-broking several hours based on their particular profile and needs, that is, personalized services. DEMATERIALISATION OF SHARES The term Demat, in India, refers to a dematerialised consideration.

For individual American indian citizens to trade in listed stocks or debentures. The Securities Exchange Table of India (SEBI) needs the buyer to maintain a Demat accounts. Dematerialization is the process in which shares records or other securities saved in physical type are converted into electronic kind and credited to demat account of your investor opened up with a depository participant A Demat Bank account is opened by the investor while signing up with an investment broker (or sub broker). The Demat account number which is cited for all transactions to enable electric settlements of trades to happen..

SEBI made compulsory trading of shares of all the corporations listed in inventory exchanges in demat type with effect from subsequent January 2002. The procedure of opening a demat account with DP is similar to beginning an account which has a bank. Features of Demat 1 ) The demat account reduces brokerage charges. 2 . Demat makes pledging/hypothecation of stocks easier. 3. Demat permits quick possession of investments on settlement resulting in elevated liquidity. 5. It provides convenient receipt of public issue allotments. a few. It helps eliminates confusion in the ownership subject of investments. 6. Additionally, it helps you steer clear of bad transport caused by personal unsecured mismatch.. In addition, it help in steering clear of postal holds off and lack of certificates in transit. almost eight. It removes risks linked to forgery, counterfeiting and loss due to fireplace, theft or mutilation. being unfaithful. Demat members can also steer clear of stamp obligation (as against 0. five per cent payable on physical shares. Down sides of Demat 1 . Trading in securities may become out of control in case of dematerialized securities. 2 . It is incumbent upon the capital market limiter to keep a detailed watch within the trading in dematerialized securities and see to it that trading will not act as a detriment to investors.. The role of key market players in the event of dematerialized securities, such as stock-brokers, needs to be closely watched as they are capable of exploit the market. four. Multiple regulatory frameworks have to be confirmed to, including the Depositories Act, Regulations as well as the various By-Laws of various depositories. 5. Additionally , agreements will be entered in various levels in the process of dematerialization. These kinds of may cause anxiety to the entrepreneur desirous of simplicity in terms of transactions in dematerialized investments.

However , the benefits of dematerialization outweigh their disadvantages plus the changes ushered in simply by SEBI plus the Central Authorities in terms of mandatory dematerialization of securities is very important for expanding the securities market into a degree of advancement. Freely traded securities are an essential element of such an advanced market and dematerialization details such concerns and is a step towards the progression of the marketplace. DEPOSITORY PROGRAM Depository can be an organization which holds from the securities from the investors inside the electronic kind same as financial institution hold cash.

Further, depository transfer securities with out physical handling. Now a days most of the lender are also DPs so anyone can speak to to DP with their personality proof and pan greeting card for beginning demat be the cause of a recommend fee by the DP. Depository offers different services to the investors through its depository participants just like maintenance of traders beneficial keeping in electronic digital form, dematerialization and rematerialisation of securities, facilitation of settlement of trade in electronic contact form and digital trading in the case of IPO and corporate action such as rights, added bonus.

TWO TYPES OF DEPOSITORIES * National investments depositories Limited. ( NSDL) * Central depository providers (INDIA)Ltd. (CDSL) NSDL was your first depository organisation advertised by UTI, IDBI AND NSE. Nsdl was create to provide electronis depository services for securities being bought and sold in capital market. the depository oridence was enacted by the authorities of indiain September, 1995 The SEBI issued a guidelines pertaining to depositories in May, 1996, The check was handed by the parliament in July 1996, where as NSDL was registered simply by SEBI on June 7, 1996.

NSDL has minimum net worth of Rs. 100crore. NSDL works with shares in dematerialized form with DPs who happen to be agent of investors bankers stock banking companies and standard bank DPs can be quite a public lender, bank, custodian, registered stock broker or any banking economic companies be subject to the approval from your depository businesses and the SEBI. As per RBI guideline, institutional investors/bank having a minimum collection of investments of RS 10crore have to settle all transaction through depositories.

DPs participants needs to pay a admission costs of Rs. 25000 to NSDL and deposit Rs 10lakh being a security with NSDL. CDSL CDSL commenced its procedure during February, 1999. It absolutely was promoted by Bombay stock exchange in association with leading banks such as SBI Traditional bank Of India, Bank Of Baroda, HDFC Bank, Normal Charted Traditional bank, Union Traditional bank Of India And Century Bank CDSL was build with the objective of providing hassle-free, dependable and secure depository services at affordable cost to all market participants. lmost all leading inventory exchanges such as the NSE, Calcutta stock exchange, Delhi stock exchange, Ahmadabad stock exchange etc . Have established on-line with CDSL. As at the end of 03 2002 over 4, three hundred issuer get their securities (equity, bond, debenture commercial papers), units of mutual fund, certificate of deposits etc . in to the CDSL system. therefore an traders can hold virtually all his investments in one accounts with CDSL. REMATERILISATION OF SHARES Rematerialization is the means of conversion of electronic coalition of securities into physical certificate contact form.

For rematerilisation of scrips, the buyer has to fill a remat request form (RRF) and submit this to the DP. The DP forwards the request to depository following verifying the investor’s amounts. Depository subsequently initiates the registrars and transfer agent or the company company. RTA/ Company prints the certificates and dispatches the same for the investor. GOALS OF PROJECT REPORT https://tin. tin. nsdl. com/pan/index. html * To understand the attitude of the on-line share investors in Durg-Bhilai city. To measure the effectiveness of broking sites in Durg-Bhilai. * To conduct an enquiry among the talk about trading open public in Durg-Bhilai about their experience of broking sites. * To suggest several improvements in these sites if needed. * To understand the depth about which the across the internet share investors are crystal clear and aware about on-line reveal trading. 5. To know the method of on the web trading Anand Rathi set up in 1994, is usually one of India’s fastest growing full-service investments firm with a presence much more than 300 locations around India and has office buildings in China Bangkok.

Anand Rathi gives wealth administration services, expense banking, and brokerage distribution services inside the areas of equities, commodities, mutual funds and insurance. The group provides the financial needs of diversified band of clients, which include the well-reputed Corporate Teams, Institutions, Foreign Investors, Persons as well as rich families and was just lately ranked by simply an Asia Money 06\ poll amidst South Asia’s top 5 riches managers to get the extra rich. Anand Rathi today has a baking pan India existence as well as a worldwide presence through offices in Dubai and Bangkok.

Anand Rathi supplies a breadth of financial and prediction services which includes wealth managing, investment banking, corporate advisory, brokerage syndication of equities, commodities, mutual funds and insurance all of these are supported by powerful exploration teams. The firms beliefs is totally client centric, with a crystal clear focus on rendering long term worth addition to customers, while maintaining the very best standards of excellence, values and professionalism. The entire firm activities are divided throughout distinct customer groups: Individuals, Private Customers, Corporates and Institutions.

In year 3 years ago Citigroup Capital raising International signed up with the group as a economical partner and 19. 9% stake kept by Citigroup Venture Capital Foreign (CVC) THE VISION GROUP Anand Rathi | Founder Chairman Pradeep Gupta | Co-founder Vice chairman Amit Rathi | Managing Representative P G Kak odkar | Representative Dr . T A Sawzag | Representative C M Arha | Director

Ajit Bhushan | Director SERVICES’ PROFILE OF “Anand WEALTH MANAGEMENT Centers located Chennai, Bangalore, Hyderabad, Dubai, Bangkok and Singapore. Dealing with: 2. INSTITUTIONS 2. PRIVATE CLIENTS * TOP PRIORITY CLIENTS 2. NON CITIZEN CLIENTS EXPENDITURE BANKING AND CORPORATE FINANCE Centers located at Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad and Ahmadabad dealings in: * Equity Capital Marketplace ” IPOs / FPO Real estate/ Private Equity as well as Advisory * M 2. Debt Elevating, Syndication and Restructuring BROKER AND DIVISION Present for 400 locations across India Dealings in: * EQUITIES *? DERIVATIVES * BONDS * MUTUAL FUNDS 2. COMMODITIES 2.? LIFE AND GENERAL INSURANCE AWARDS AND ACCOLADES * Ranked #1 Pvt bank Domestic and # 2 Private Financial institution “Overall simply by Asiamoney forms 2009. * They are regularly amongst the top 3 agents in product and foreign currency segments about MCX, NSE and MCX-SX. * They are really amongst the top ten brokers in DGCX. Initially to introdu ce methodized products in commodities. MAIN CUSTOMERS OF “Anand Rathi * PROFESSIONAL GROUPS 5.? BIRLA’s ” Birla Sunlife Insurance, Grasim Industries, Hindalco, Indal, Indian Rayon, Indo Gulf, Transworks * VENDATA’s ” Balco Industries, Hindustan Zinc Limited, Sterlite Companies, Vendata 2. TATA’s ” Tata Assets, Tata Metal, Tata Motors Limited, Videsh Sanchar Nigam Limited 5. MULTINATIONALS ” Bayer, Clariant, Godfrey Philips, Goodlass Nerolac, Hindustan Button Limited, Nestle, Thomas Prepare Travels and much more BANKS ” Andhra Financial institution, Bank of India, Bank of Baroda, Canara Lender, HDFC Bank, General and Life Insurance Corp, Punjab Countrywide Bank and many other * doze CORPORATES ” ACC Cement, Berger Paints, Boots Piramal, Century Textiles, CRISIL, Crompton Greaves, Dabur, DCM, Emami, General Electrics Shipping, Globus, Godrej, Gujarat Ambuja, ICICI Ventures, HCL, Infosys, Of india Tobacco Company, Jet Breathing passages, Jindal Metallic, Larsen Tubro, Mahindra Mahindra, Radico Khaitan, Raymonds, Wipro, Varun Shipping and delivery and many more. AREAL Core Strengths Client-centric beliefs, with concentrate on providing long term value addition to clients, retaining highest criteria of superiority, ethics and professionalism * We often strive to develop strong interactions with our clients nurtured by simply personal focus of older management 5. We way our clients naturally with the goal of handling their proper and economical objectives * Proficiency in rendering regular high quality useful services 2. A older product staff of retail specialists who provide practical support to Personal Expense Advisors for a lot of products For what reason Anand Rathi? Both home-based and Worldwide platform * Dedicated Corporate Setup 5. Regional penetration * Study capability 5. Offering customized solutions for specific publicity COMPETITORS OF Anand Rathi REMOTE RIVALS INDIAN BANKS: – * Kotak Financial institution * Casing Development and Finance Company Bank * Industrial Credit and Purchase Corporation of India Lender * Condition Bank of India 5. 13 Lender of Baroda * Canara Bank * ING Vysya INDIAN PROPERTY MANAGEMENT CORPORATIONS * Cholamandalam * Lotus India 5. Principal 5. Optimix 5. Sahara OVERSEAS BANKS and ASSET SUPERVISION COMPANIES * ABN Amro Bank 5. Deustche Bank Hongkong Shanghai Bank Company * Franklin Templeton * DSP Merill Lynch 5. BNP Paribas * Segment IMMEDIATE RIVALS RELIGARE COMPANIES 14 Religare Enterprises Limited group consists of Religare Investments Limited, Religare Commodities. Limited and Religare Finvest Limited which discounts in fairness, commodity and financial services business. Religare Investments Limited is among the leading broking houses of India and is dealing in Equity Broking, Depository Services, Portfolio Supervision Services, Institutional Equity Broker Research, Expense Banking and Corporate Finance.

Religare is a member of National Comodities Index and Multi Commodities Exchange and provides platform for trading in items, which is a web based facility likewise. Religare Finvest Limited, a Non Financial Finance Company can be aggressively producing a identity in the financial services arena in India. In a fast paced, constantly changing powerful business environment, Religare Finvest Limited offers delivered the most competitive products. Religare Insurance Broking Limited as a blend insurance broker offers in both equally insurance and reinsurance, rendering our clients risk transfer solutions on your life and non-life sides.

This kind of service will require benefit of Religare’s vast organization empire propagate throughout the country, providing their valued customers insurance providers across India. KARVY Karvy is a most recognized integrated finance provider, and ranked among the top five in the area in all its organization segments, solutions over sixteen million specific investors in numerous capacities, and provides investor solutions to over three hundred corporate, comprising the who is who of Corporate India.

Karvy addresses the entire spectrum of financial software program as Share broking, Depository Participants, Circulation of financial products like shared funds, provides, fixed pay in, equities, Insurance Broking, Commodities Broking, Personal Finance Exhortatory Services, Vendor Banking Corporate Finance, keeping of equity, Preliminary Public Provides, among others. Karvy has a professional management team and ranks among the best in technology, procedures and research of various commercial segments. JM MORGAN STANLEY Mr. C. J. George and Mr.

Ranajit Kanjilal founded Geojit as a alliance firm back in 1987. In 1993, Mr. Ranajit Kanjilal retired from your firm and Geojit became a private concern of Mister. C. J. George. In 1994, it probably is a Community Limited Company by the term Geojit Investments Ltd. The Kerala Point out Industrial Expansion Corporation Ltd., in 1995, became a co-promoter of Geojit by acquiring 24% stake inside the company, the only instance in India of a government entity participating in the equity of a stock broking company. Geojit listed by Bombay Stock Exchange in the year 2150.

In the year 2003, the Company was renamed because Geojit Financial Services Ltd. The board in the company contains professional directors, including a Kerala government nominee with 2/3rd of the table members becoming Independent Owners. With impact from Come july 1st 2005, the business is also shown at The Nationwide Stock. Exchange. Geojit is a charter member of the Economical Planning Specifications Board of India and it is one of the greatest DP brokers in the country. INDIA BULLS Indiabulls is India’s leading Finance and Real Estate Company having over 640 branches all over India.

Indiabulls serves the financial requires of more than four, 50, 500 customers having its wide range of finance and goods from securities, derivatives trading, depositary companies, research prediction services, consumer secured unguaranteed credit, mortgage against stocks and shares and mortgage loan housing finance. With around 4000 Relationship Managers, Indiabulls helps their clients to fulfill their custom-made financial desired goals. Indiabulls through its group companies provides entered American indian Real Estate business in 2006. It is at the moment evaluating a number of large-scale projects worth array million dollars 2 . ANALYSIS METHODOLOGY. 1Research Research is generally described as an active, diligent, and systematic means of inquiry aimed at discovering, interpretation, and revising facts. This kind of intellectual analysis produces a increased knowledge of events, behaviors, ideas, and laws and makes sensible applications possible. The term research is also accustomed to describe a entire assortment of information about a particular subject, and is also usually associated with the output of scince as well as the scientific approach. R= REQUIREMENT E= ESTIMATION S= SEARCHING E= ENQUIRY A=ALLOCATION R=RAW DATA C=CREATIVITY H= GREAT FOR SOCIETY WELEFARE

Research is an academic activity and as such the definition of should be found in a specialized sense. In respect to Clifford Woody research comprises determining redefining concerns, formulating speculation or recommended solutions, collecting, organizing and evaluating info, making deductions and attaining conclusions, including last thoroughly testing he conclusions to determine whether they in shape the making hypothesis. Studies thus an innovative contribution for the existing share of knowledge producing for its improvement. It is the pursuit of truth by making use of study, declaration, comparisons and experiment.

In short the seek out knowledge through objective and systematic way of finding strategy to a problem is research. The systematic approach concerning generalization and ingredients of a theory is also analysis. Importance of Research Any analysis made by a person person demands whole account of his mind around the topic so that he can work his best about that job. Research work includes all the work through the site selecting balance sheet every letter possesses its own significance. Studies done by anybody to go profound of any subject to understand the existence of computer.

In this research report in whose topic can be “Investment Coverage Through Dependence Money in Value and its Providers . 2 . 2 SUPPLY OF DATA Source of data is classified in to two categories: 1 . Primary data 2 . Secondary data 2 . 2 . 1 PRIMARY INFO Primary info do not exist in data and distribution. The specialist has to gather primary data a fresh intended for the specific analyze under used by him. Industry researchers are curious about primary data about demographic/ socio financial characteristics, attitude/ opinions/ interests, motivation and behavior. 3 basic means of primary info: 1 . Statement. Survey several. Experiment 2 . 2 . 2 SECONDARY INFO The data known those, which gathered for some other purpose and are previously available in the firm initial records and commercial, operate or govt publications will be secondary data. Sources of extra data: 1 ) Published of secondary info. 2 . Government publication. several. Specialized libraries 4. General library exploration sources installment payments on your 3SAMPLE SIZE: I applied 100 participants for my personal project record. 2 . 5 METHOD OF INFO COLLECTION: So you can get the results of my own research We used technique which is set of questions method that may be under main data.

A questionnaire (also known as self-administered survey) is a type of record survey passed out in paper form usually to a specific demographic to gather information to supply better service or goods. The set of questions was created by Sir Francis Galton.. * Forms have advantages over a few other types of surveys in this they are affordable, do not require as much work from the questioner as mental or telephone surveys, and quite often have standard answers making it simple to make data. Yet , such standardized answers may frustrate users.

Questionnaires are also sharply limited by the fact that respondents has to be able to read the questions and respond to them. Thus, for a few demographic organizations conducting a survey simply by questionnaire might not be practical. * A questionnaire consist of many types of questions, like direct query, indirect question, open-ended question ( free answer issue ), close ended issue. In this report open and close-ended concerns are used. The strategy was reviewed questioning. Everyone was asked a set of question in given order and answer is restricted to a list of alternative.

The studies will be descriptive in nature. It is connected to examine the present condition of affair as it exist. The available study attempts to explore the system at present and report on it. Why set of questions methods has been adopted 1 ) Ideas linked to the problem and its particular solution can be find by asking the individuals involved in numerous industries. installment payments on your Knowledge, viewpoints, and purpose of people involved can be very easily founded. a few. It is usually more quickly and less expensive than other strategies. 4. That involves control of the data gathering activities as compare to various other method. five.

It is functional LITERATURE ASSESSMENT This chapter presents an assessment research performs pertaining to on the web trading and related shareholders behaviour. The investigation works analyzed here had been sourced via various periodicals, web sites and reviews offered in prior research performs. As we know that many technology features certain advantages and specific disadvantages. Just like wise on-line trading has additionally some drawbacks and we try to search for what type of difficulty an online inventory trader face. A variety of operate and study has already been executed by numerous scholars with this field.

Keeping in view the actual objectives from the present analyze, the review of the earlier studies have already been performed since follow. A few of the studies bearing relevance with all the present research proposal will be reviewed as follows: Lau, Yen and Chau(2001) conduct an investigation to know what are the aspect which impact on adoption of on-line stock trading in Hong Kong. This paper concentrates on the social/organizational perspective simply using a research unit based on the Decomposed Version Theory of Planed Patterns (DTPB) to spot the elements that have an effect on investors’ re-homing of on the web trading.

A correlation analysis has been performed to investigate whether the hypothesized attributes, variables, and belief framework are linked to each other. After such analysis, the elements that impact the adoption of the proposed system have been completely identified, as well as the relationships between the factors. The results of the analysis reveal that about the hypothesized version, there is strong statistical significance that Recognized Usefulness, Identified Ease of Use, and Compatibility substantially affect Attitude towards using the proposed system.

ODEAN (SEPT 1999) Done a study to know the change in trading behavior and investment overall performance of 1607 investors who have switched from phone structured to on the net trading during the period of 1991 to 1996. in that case he review their trading and performance while using similar size of people who will not trade on the web and the result he find is that those who go for online trading are knowledge unusually solid performance before you go online, conquering the market by more than 2 % every year. After going online, they control more definitely, more speculatively and less of course profitably than before”lagging the market by simply more than three percent.

Mathews (2001) done a survey on Rewards, Costs and Limitations of Online Investment to the Individual Investor The internet approach of conducting commerce has obtained more and more approval from consumers and suppliers alike. On-line Brokerages, after they first arrived to the scene, attacked mass markets with unbelievable relieve, speed and success that this took typical brokerages like Merrill Lynch, by surprise. Over time, conventional brokerages having learned the advantages with the Internet have moved to make an online presence for themselves.

Online trading are accounting for consecutively larger proportions of total retail investments on established exchanges just like the NASDAQ and the NYSE, as its inception. Just like any application in business, on the net investing provides its fair share of not merely benefits nevertheless also costs and limits too. The goal of this article is to enlighten the reader on the above-mentioned aspects of on the net investing and aid a potential investor to reflect on these aspects ahead of carrying out trading over the Internet.

WALIA, KUMAR (2007) Conducted a research to know precisely what is the current situation of on the web stock market in India. Details highlighted through this study evidently reveal that although on-line trading is definitely picking up it is speed to tap traders yet it is expected to adopt creative strategies to lure customers from physical trading to net trading. Li, Lee and Cude (2001) conduced a study Depending on investment habit and advancement diffusion theories, intention to look at online trading was looked into using 2000-01 Macro Screen data. The impacts from the following eterminants were examined: investment-related elements (type of brokerage accounts and trading frequency and volume), psychological factors (confidence, investment risk preference, price sensitivity, behaviour toward man interaction, and investment decision producing style), technology-related issues (familiarity with online shopping and banking), and demographics. Investors who have are more youthful and more willing to take expenditure risk plan to adopt on the web trading, whereas investors who value man interaction and the ones with total brokerage accounts do not have a great intention to look at.

Sandhu and Singh (2005) Conducted a study to know the down sides faced by the adopters of online investors while trading online while also discover the reasons for not using net based trading. Also that they try to find out what are the future potential customers of on-line stock trading in India. This kind of study is dependent on primary data of 299 investors composed of 149 adopters and a hundred and fifty non- adopters. The result discloses that the lack of ability to access broker’s website and lacks of private touch happen to be perceived as main problems by simply adopters. It was also found that high strength cost, likelihood of system and component failure etc are a couple of the problems faced by the investors.

HISTORY OF EXCHANGE The 1st stock exchange in India, Bombay stock Exchange (BSE) was established in 1875 as ‘The Local Share and Association’ and has evolved through the years into its present status while the leading stock exchange in the country. It may be mentioned that BSE is the oldest stock exchange in Asia, actually older than the Tokyo stock Exchange, which was founded in 1878. The country’s second stock exchange was established in Ahmedabad in 1894, accompanied by the Calcutta stock Exchange (CSE). CSE also can trace it is origin back in 19th 100 years.

From a get together under a ‘NEEM TREE’ way back in the 1830s, the CSE was formally set up in May 1908. Traditionally In stock Market, the investors commit their money in shares underneath the guidance with the Brokers of any inventory broking organization. This is useful to those investors who are not familiar with the computer and the use of net. But it needs more retailers to the reveal broking businesses to give advice related to investment. There was the opportunity of inaccuracy of selling price because it is a time consuming procedure. The cost of the business also raises due to more paperwork.

The investor standpoint, there was a problem of level of privacy. The information of investor might leak by broker. Therefore , to remove these types of limitations of traditional broking, there was a great emergence of new concept e-Broking. Stock exchange is known as a place wherever securities will be bought and sold. Inventory exchanges experience high degree of volatility, selling price fluctuations and it is driven by the demand flow of stocks. Inventory Brokers will be the authorized person who is allowed to buy and sell stocks and options on behalf of individuals and establishments and the authority is awarded by SEBI. PROCEDURE FOR ONLINE TRADING

A real estate investor interested in trading through Internet shall need to, firstly sign-up himself with an Internet brokerage firm. Some thank you’s such as filling up the account opening kind of the e-broker, copies of identity proof, copy of residence resistant are made to sign-up himself while using e-trader. Subsequently, the trader would be required to open a bank account using a scheduled traditional bank and adequate balance must be kept in the account. Additionally he would be required to open consideration with a depository participant because only dematerialized stocks can be bought and sold on Internet.

The customer places purchase via the net by working in to his account The broker accepts and completes the order and spots it while using exchange The exchange welcomes the purchase after checking the share limit for the day The broker makes the payment either immediately via the client bank account or pays through its own accounts and stabilizes it later on from the consumer The exchange receives money and completes the arrangement The client is usually intimated about the settlement either through the demat or perhaps via email-based. So , generally following actions are adopted while performing the trading through the Net: Step-1: Individuals investors interested in doing the trading above internet system, that is, NEAT- ISX, should certainly approach the brokers and register while using Stock Broker. * Step-2: After subscription, the broker will provide to them a login term, password and a personal id number (PIN). * Step-3: Actual keeping of an purchase. An purchase can then be put by using the place order windows as under: * Initially by entering the symbol and series of stock and also other parameters just like quantity and price from the scrip within the place order window. Second, fill in the symbol, series and the default quantity. 2. Step-4: Therefore, the entrepreneur has to review the order placed by clicking the review choice. He may as well re-set to clear the ideals. * Step-5: After the review has been sufficient, the purchase has to be delivered by clicking on the mail option. 5. Step-6: The investor should receive an Order Confirmation concept along with the purchase number and the value of the order. * Step-7: In the event that the order is rejected by the Broker or the Stock Exchange for certain factors such as invalid price limit, an appropriate communication will appear at the bottom of the screen.

At present, a time lag of around ten secs is there in executing the trade. * Step-8: It truly is regarding charging payment, for which there are distinct modes. Some brokers will require some progress payment in the investors and definitely will fix their trading restrictions. When the transact is executed, the broker will ask the investor for copy of money by the investor to his account. FACTORS TO KEEP IN MIND WHEN SELECTING ONLINE BROKERS 2. Brokerage cost: It is important to weigh up the subscription and trading costs charged simply by an online broker against rewards offered by the internet site.

All on the web brokers display their costs on their sites. Some make sure you find the charges easily, while with other folks you will have to search a bit. In anand rathi financial services brokerage cost is 60paisa for on-line broking 2. Software set up charges: Generally all broking firm fees same to get software but some have a lttle bit differences as a result of compotition and to get wide open more bank account to gain profit. Anand rathi costs reasneble prices in order to gratify customers * Safety: Always make sure site features 128-bit security to ensure safety of purchase online. ICICIDirect. com, 5paisa. om will be few sites with 128-bit encryption. You normally get a secured Login id and password. It will always be advisable to frequently modify trading pass word. Ideally on the net trading internet site should be fully integrated. The higher the backward integration, the better it truly is for the customer. Ideally broking account, demat account and bank account ought to be linked in electronic format. * Level refresh: Rate refresh has to be real-time with no time separation. The speed and reliability incorporates huge expense in technology. It is always highly recommended to check rates of on the web broking sites with BSE/ NSE fatal rates. Rate of delivery: System should be fast and reliable that does just one job- completes your trading. The last thing you require is a internet site that is seriously congested with all the users who are downloading heavy jpeg graphs or pulling the latest story how come market is moving. The site needs to be one simply click wonder wherever squaring off all your positions or eliminating all your pending orders requires one simply click and a confirmation of action. * Trading limit: For trading, all sites provide 4x buy and sell limit against perimeter money devote by customer.

For delivery of stocks, buying limit is comparable to margin cash put in by simply customer. Handful of sites likewise provides perimeter funding for buying of stocks and shares. * Free trial period: Internet site should allow users free trial period to familiarize yourself with system before you decide to turn into trading person in the site. 2. Intraday chart/ historical data: The site should certainly provide intraday chart tick by tick time and selling price data as well as historical graph for technical analysis by buyers of particular scrip. Lots of people transact based on charting packages. THE MECHANICS OF ONLINE TRADING CLIENT BROKER STOCK EXCHANGE

Areas an purchase on the net for the broker’s web page through the distinctive I. M. code Accepts the order, Checks the client’s Identity and locations the purchase with the stock market Accepts the order following checking the scrip limit of the broker during the day Executes the order The settlement from the deal (buy/sell order) gets reflected in the Demat bank account. The client is definitely intimated regarding the performance of the package by e-mail. Pays the broker pending physical delivery. Pays the Exchange nevertheless his possesses account and receives it from the consumer account. Receives the money and completes the settlement

Moving Settlement Circuit in a moving settlement, every single trading day is considered as a trading period and trades executed during the day will be settled based on the net obligations for the day. At NSE and BSE, investments in rolling settlement are settled on a T+2 basis i. electronic. on the second working day. For arriving at the settlement day time all intervening holidays, including bank holidays, NSE/BSE holidays, Saturdays and Sundays happen to be excluded. Typically trades taking place on Mon are chosen Wednesday, Tuesdays trades settled on Thursday and so on. Concept Of Shopping for Limit

Suppose you have sold some stocks on NSE and are trying to puzzle out that if you possibly can use the money to buy shares on NSE in a distinct settlement cycle or state on BSE. To make things simpler for ICICI Direct buyers, we have released the concept of Shopping for Limit (BL). Buying Limit simply explains to the customer what is his limit for a given settlement pertaining to the desired exchange. Assume that you have enrolled to get a ICICI Immediate account, which requires fully of the money required to account the buy, be available. Assume you have Rs 1, 00, 000 within your Bank AIRCONDITIONING and you reserve Rs 50, 000 that you would like to help to make some purchase.

Your Shopping for Limit is definitely Rs 55, 000. Assume that you sell off shares really worth Rs one particular, 00, 1000 on the NSE on Monday. The BL therefore intended for the NSE at that point of the time goes upto Rs you, 50, 1000. This means you can aquire shares upto Rs one particular, 50, 000 on NSE or BSE. If you buy stocks worth Rs 75, 1000 on Tuesday on NSE your BL will naturally lessen to Rs75, 000. Therefore your BL is simply the amount set aside by simply you through your bank account and the amount understood from the sale for any stocks and shares you have made fewer any purchases you have made. Your BL of Rs 40, 000, which is the amount set aside by you from your Savings account for purchase exists for BSE and NSE.

As you have made the sale of shares about NSE intended for Rs. 100000, the BL for NSE BSE increases to 1, 50, 000. The quantity from sale of shares in NSE will also be available for purchase upon BSE. ICICI Direct SUCCESS FACTORS PERTAINING TO ONLINE TRADING There are 3 key achievement factors to get e-broking, (i) Scalability and robustness of the trading system: The fundamental difference between the Internet as a purchase medium as well as the conventional closed user group network is usually that the Net is actually a universal system providing contingency access to infinite users any kind of time given time.

Consequently, it is imperative for virtually any Net-based application to have a tested capability for scalability and robustness which usually ensures to be able to handle and process demands from multiple users at any given moment in time. (ii) Band width optimization: In the Indian circumstance where availability of a sufficient band width is limited, the application software should certainly demonstrate intelligence in optimizing the obtainable bandwidth by deploying advanced technologies including streaming. (iii) Integration with third party systems:

On the Net, with information passes available coming from multiple items, it is prudent to deploy applications that are built about open architecture methodology to get interfacing with third party systems in the new Net age. CHALLENGES ONLINE TRADING Pertaining to Internet trading to succeed, it is imperative to acquire both ” 1 . A strong business model and 2 . Complete technology approach. Some of the challenges are discussed: Transaction fulfillmentIn the Net-based economy, it really is both advisable and important for a broker/intermediary to offer total solution to the clients for a single stage.

Total alternatives would essentially mean supplying interfaces with banks, depositories, information passes, etc . for efficiency in trade conclusion and minimizing duplication of client info. The providers will have to go beyond the level of simply order execution and arise as informediaries rather than intermediaries. This will not simply ensure reduced trading costs in terms of giving cross companies but will as well help in making the most of ROIs. A genuine Internet trading system should deliver affordable transaction satisfaction at just one point.

System Requirements Intended for online trading client computer system should have in least the subsequent configuration: 5. Pentium 3 PC, Minimal 128 MB RAM 2. Windows 2000/XP * Net connection * Ie 6. zero * Java enabled in IE * VM java(Download) FUTURE OF NET TRADING Intercontinental marketplaces are actually witnessing re-alignments and changes with the emergence of electronic digital communication sites (ECNs) just like INSTINET and ISLAND, which are already contributing substantial business volumes to mainline exchanges such as NASDAQ and the NYSE.

Concurrently, exchanges worldwide will be using striking strategic alliances like the Global Equity Market (GEM). With Net trading in securities and rapid debt consolidation between multiple stock exchanges, the foreign securities market place is fast becoming a global town through the creation of a widespread virtual fairness market. Hence the challenge pertaining to the technology providers is always to develop and deploy advanced e-trading equipment and applications using electric straight through processing solutions.

OFFLINE TRADING Nevertheless, with all the convenience of on-line trading you will still find investors whom prefer the aged fashion way of offline trading. Offline trading has misplaced some popularity but it remains the main type of investing. Off-line trading gives many benefits as well. Benefits of offline trading: 1 ) The one benefit that an investor appreciates one of the most is the truth that they are not by yourself when making expenditure decisions. installment payments on your There are skilled and professional brokerage corporations that take care of their opportunities for them. three or more.

Investors aren’t faced with the task of making these kinds of vital expenditure decisions, specifically, if they cannot have the knowledge necessary to associated with appropriate opportunities. 4. Also, there is someone there to reply to any inquiries that may cause concerns. Let alone, with offline trading faults are less more likely to take place. No-one wants to put their money aside or uphold and watch another individual throw their money away. It might be wise to hire a professional to work with you in making the proper investment decisions if you feel you do not have the knowledge important.

Points of difference between on the web trading and ofline trading are the following: 1 . On the web trading is very expensive because compare to manual trading or offline trading. 2 . On-line trading uses less time since compare to manual trading. several. Online trading has beneficial to finding the records quickly but off-line trading requires more time to finding the documents. 4. Inside the help of on-line trading, you cannot find any chance of any kind of errors when doing the trading. in offline trading there are some mistakes exist like barriers of communication.. With the aid of online trading, we know the international industry rate of share effortlessly. ONLINE TRADING INFRASTRUCTURE The emergence of online exchanges has caused faster orders by providing online trading sites and brokerage houses relieve and flexibility. The net has certainly opened up fresh opportunities pertaining to conducting the organization. The throughout the world stock exchanges has made an important shift through the traditional method of trading and after this conduct a bulk of their business online through its brokers and companions.

In the designed countries majorly all the exchange transactions are conducted online. The trend became popular slowly in India and the National Stock market (NSE) and the Bombay Stock Exchange (BSE) a pair of the largest exchanges in India have been conducting online trading for some moments ONLINE TRADING BY NSE BSE The central laptop located in the Exchange is usually connected to the workstations of the Agents through satellite television using Very Small Aperture Terminals (VSATs). Requests placed in the Brokers work stations reach the central laptop and are coordinated by the computer based on cost and time priority.

The exchanges have got switched above from the wide open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE On the web Trading) and NEAT (National Exchange Automated Trading) Program. It helps more efficient processing, automatic buy matching, more quickly execution of trades and transparency. The scrips exchanged on the BSE have been classified into A, B1, B2, C, F and Z teams. The A group shares symbolize those, which can be in the carry forward program (Badla). The F group represents your debt market (fixed income securities) segment.

The Z group scrips are definitely the blacklisted businesses. The C group protects the strange lot investments in A, B1 B2 organizations and Legal rights renunciations. Crucial regulator regulating Stock Exchanges, Brokers, Safety deposit, Depository participants, Mutual Funds, FIIs and also other participants in Indian extra and primary companies are the Investments and Exchange Board of India (SEBI) Ltd. The NSE and BSE are among the largest exchanges in the country handling very large daily trading volumes, support large amounts of data traffic, and still have a very significant nationwide network.

The trading volume in year 2000 was large with the normal daily proceeds in the capital markets portion at NSE is around Rs 2300 crore and in the derivatives part, around Rs 1300 crore. The market has exploded in opportunity and level in a way that could not have been dreamed at the time. Normal daily trading volumes possess jumped by Rs. seventeen crore in 1994-95 when NSE started out its Money Market segment to Rs. 11, 325 crore in 2008-09. Similarly, market capitalization of detailed Indian companies went up from Rs. 363, 350 crore at the end of March1995 to Rs., 896, 194 crore by end 03 2009. Indian equity market segments are today amongthe most profound and attractive markets in the world. The average daily traffic volume was around one million investments per day inside the capital markets segment and around 40, 000 investments per day in the derivatives section and there was around 13, 000 users in the two segments and an average of around 9500 users is logged in at a period. At BSE the average daily turnover in 2001-2002 (April-March) was Rs 1244. twelve crore as well as the number of normal daily trade was a few. 17 lakh.

WHY ONLINE TRADING JOINED LATE IN INDIA The Indian exchanges and brokering houses had been very slow in moving their transactions on the internet and the major purpose has been the whole lot government regulations. The initial wait was because of laying down the specifications for producing Closed Consumer Groups (CUGs). This issue was resolved involving the Department of Telecommunications (DoT) and the Financial Ministry around 1998 along with that shortly came the online trading sites like ICICIDirect. com, motilaloswal. com, sharekhan. com and smartjones. com.

Connectivity related issue was perhaps the most important technological aspect. Traditionally the expense of leased lines and VSAT links continues to be very high as well as the reliability with the links was very low. To commission the links it took a long time as one was required to make an application and wait for a few weeks for the hyperlink to be up and running. Many other concerns like reliability, backup and recovery step-by-step costs likewise acted because deterrents in the act. Now with the resolution of regulatory issues India no longer have any pressing connectivity and bandwidth issues.

The entry of personal players in to the broadband scenario and the federal government opening up the telecom sector these issues are getting to be almost non-existent. Security solutions and providers available in the market include matured and it will not cost a fairly packet anymore to put a basic back up solution inplace Through online trading everyday huge volumes of information is being transacted. At BSE the average daily turnover in 2001-2002 (April-March) was Rs 1244. twelve crore and the number of averagedaily trades was Rs 5. 17 lakh.

To control Online Trading RBI made rules making it obligatory for firms to store at least a decade of transactional and monetary data. 1 ) Design must be always-on, secure, redundant, and have adequate back up and restoration Processes. 2 . For these kinds of high numbers of critical info its organic to deploy network-based storage area like NAS or SAN. 3. Security is a vital and essential part of the design architecture. The hardware and software elements should be built around split security structure and should end up being held in place with a extensively researched security coverage. 4.

Ultimately online exchanges should have five-nines availability. a few. Its difficult to deploy out-of-the-box applications in exchanges since each has a unique structure based on elements like operations flow, trading volumes, range of members, number of users, and number of places. 6. NSE has implemented NIBIS (NSEs Internet Based Information System) pertaining to real-time spread of trading information on the internet and NEAT a client-server-based application to assist its procedures. 7. BSE has implemented an OnLine Trading system (BOLT) on a Duo platform which has a two-tier structures.

It claims to be able to support up to 2 million trading a day THE NETWORK DESIGN AND STYLE Any on the web exchange should be-on, safe, secure, unnecessary and should have got adequate back-up recovery processes. The Vice President of NSE-IT G. Meters Shenoy tells that the basic design objective of NSE was to provide reasonable, equal and transparent access across every NSE country wide locations and also to provide connection to the trading members as soon as possible. The phone system sector is pretty liberal at present but way back in 1993 the technology was maturing and was very costly. The cost of lease lines was almost five times as much as it is today.

Satellite technology was a benefit since it allowed quicker application than leased lines. Today NSE has got the countrys greatest VSAT network with over 3000 VSATs and expects to grow to more than 4000 V sats very soon NETWORK ELEMENTS The moment there are significant trading amounts and targeted traffic bulk it makes one tensed even to think of the expected losses in case of a ten minute downtime when ever daily control crosses Rs 3000 crore. Network elements like secureness, storage, back up and recovery processes, supply and other diverse applications should be planned thoroughly and commissioned.

Also the RBI regulations to store at least 7 years of transactional and financial data needs to be followed also to store such high levels of critical data its normal to deploy network-based storage area like NAS or SAN. NSE is definitely implementing a SAN as it feels that its info volumes have raised widely. Security is a essential and crucial part of the design and style architecture as well as the hardware and software factors should be built with layered security architecture around and it should also be saved in place with a well-documented security policy.

According to Shenoy the security is among the most crucial element in the network and at NSE all applications have been built with a mindful approach toward security. Every one of the security plans are securely integrated and regularly scrutinized thus not providing any room to compromise with Also all the applications and OSs happen to be hardened occasionally for security The Back-up and restoration has emerged as one of the most critical and vital aspects of business continuity. When ever online exchanges were designed earlier a whole lot of emphasis was perhaps not placed on this element as it is carried out nowadays.

On the other hand its not so difficult to add continuity processes into a programme which is existing. Shenoy said that a terrestrial-based trading network was deployed as being a backup to NSE VSAT network in the midst of 2000 and it have more than eight hundred fifty leased lines connecting to different locations in India. NSE is the just stock exchange in the country which has a fully-redundant business continuity site in Chennai Availability: Ideally on the web exchanges needs to have five-nines supply. Exchanges usually likes to host its infrastructure in-house and never use the services of another or various other data middle.

NSE claims to achieve uptime greater than 99. 9% which can be mostly because of internally created procedures and continuous report on SLAs with hardware vendors Applications: It really is tough to deploy out-of-the-box applications at exchanges as every single has a exclusive architecture based upon factors like operations stream, number of users, trading quantities number of users and volume of locations. The applications just like trading, monitoring, index computation, listing, membership, clearing, risk-management and accounts may be created in-house or perhaps by exterior software programmers. There are two popular types of architectures-. NSE structure 2 . BSE architecture These both exchanges keep on modernizing and changing their technology systems to hold delivering according to responsibilities and claims made to the members, lovers and customer NEAT-THE NSE ARCHITECTURE NSE has used NIBIS (NSEs Internet Based Information System) for real-time dissemination it of trading data over the Internet and NEAT a client-server-based app to help the operations. All the trading information is stored in NEAT an in-memory database at the hardware end for achieving minimal response as well as maximum program availability intended for users.

The trading machine software runs on a fault-tolerant STRATUS mainframe and the customer software runs on Glass windows PCs. The telecommunications network uses the X. twenty-five protocol and it is the central source of the automated trading program. Each trading member trading on the NSE with other users through a LAPTOP OR COMPUTER located in the trading members office. The trading people on the Low cost Debt Marketplace segment are linked to the central computer in the NSE through dedicated 64 Kbps leased lines and VSAT ports. These rented lines are multiplexed employing dedicated a couple of MB optical-fiber links.

The WDM individuals connect to the trading system through dial-up links. The exchange uses RISC- primarily based Unix servers from Digital and HP for backoffice processing. Applications like Oracle 7 and SQL/Oracle Forms 4. 5 front ends are used for the exchange features BOLT-THE BSE ARCHITECTURE BSE has used an OnLine Trading system (BOLT) on March 14, 95. It works on the Tandem S74016 platform jogging on 16 CPUs. The Tandem Himalaya S74016 machines act as the backend to more than 8000 Trader Workstations networked in Ethernet, VSAT and Maintained Leased Data Network (MLDN). The devices claim to deal with up to two million trading a day.

BOLT has a two- tier buildings. The dealer workstations will be connected right to the backend server which will acts as a interaction server and a Central Trading Engine (CTE). Various other services like information dissemination, index computation, and placement monitoring can also be provided by the system. A purchase monitoring center in the With a friend architecture helps keep data integrity through non- stop SQL. With the help of MTNL, BSE has setup a MLDN Network comprising three hundred 2 Mbps lines and 1500 64 Kbps lines which hook up all regional stock exchanges and offices in Mumbai.

Access to marketplace related information through the trader workstations is essential for industry participants to behave on real-time basis and take fast decisions. BOLT has been interfaced with various data vendors just like Bloomberg, Connect, and Reuters. Market data is given to news agencies instantly. The exchange plans to enhance the capabilities further to have integrated two way details flow TIPS OF SEBI The SEBI has also performed an important role in the concern of the guidelines regarding on the web trading in order that the chances of fraud and misrepresentation are reduced.

The a few of recommendations are asfollows: The stock agents which are staying registered with Securities Exchange Board of India (SEBI) will have to affect stock exchanges for a formal permission. The next conditions must be fulfilled- 1 ) The online trading company must have a minimum net worth of Rs 50 lakh 2 . The encryption technology should be generally there in the system used by the brokers to ensure the provision pertaining to confidentiality, secureness, justifiability and reliability of data.

The user identification, first level and second level pass word, automatic expiration of passwords at the end of your reasonable period, secured socket level security for server gain access to through Net, suitable firewalls between the trading set-up straight connected to a great exchange trading system plus the Internet tradingset-up, microprocessor-based Smartcards, dynamic pass word, 64 bit/128- bit security are the standard minimum security standards. three or more. The agents must preserve adequate backing up systems and data memory space which has to be checked by the stock exchanges. 4.

The minimum diploma must be laid down by stock exchange to make certain the people hired by the brokers need to have the proper diploma regarding trading so as to guide the clients and he can talk regarding trading instructions 5.

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