A

PROJECT REPORT
ON
“A STUDY ON THE CUSTOMER PERCEPTION OF ONLINE

TRADING”

AT
“SHARE KHAN LIMITED”
BY
S.MAHENDER

H.T.NO:-088070181

Project submitted in partial fulfillment for the award of the degree of

MASTER OF BUSINESS ADMINISTRATION

By

VATHSALYA COLLEGE OF BUSINESS

MANAGEMENT
(Affiliated to Osmania University)
BHONGIR
(2007 – 2009)

1
 CERTIFICATE

This is to certify that the project work entitled

A STUDY ON CUSTOMER PERCEPTION

ON ONLINE TRADING

is the bonafide work done by

S.MAHENDER
H.T.NO:-088070181

As part of curriculum in the

Department of Management Studies
VATHSALYA COLLEGE OF BUSINESS MANAGEMENT
BHONGIR

in partial fulfillment for the award of degree of

Master of Business Administration

By

Osmania University, Hyderabad

This work has been carried out under our guidance

2
Internal guide Head, Management Department Principal

DECLARATION

I hereby declare that this project report entitled “A STUDY ON THE

CUSTOMER PERCEPTION OF ONLINE TRADING AT SHARE KHAN

LIMITED” is an original project done under the guidance of

---------------------------------------------------& submitted by me ----------------in partial

fulfillment of the requirement for the award of “MASTER OF BUSINESS

ADMINISTRATION”.

The findings and recommendations in this work are based on the information

collected by me. This report has not been submitted else where for the award of any other

University or Institute or published earlier.

HYDERABAD,

Date : (S.MAHENDER)

3
 ACKNOWLEDGEMEN
T

With the deep sense of gratitude, I wish to acknowledge the support

and help extended by all the people, in successful completion of this project
work.

I express my sincere gratitude to --------------- for allowing me to take up this

project and enlightened me in doing this project.

I express my gratitude to our Principal AS.PRASAD for his consistent

support, Head of the Department SATHISH for his encouragement.

I would like to express my sincere thanks to my Internal Guide-

P.SRIKANTH, Co-Guide project coordinator for their immense support
during my project report,

Last but not the least; I would like to thank all the faculty members & my
friends who have been a strong source of inspiration through out the project
directly or indirectly.

4
 S.MAHENDER

CHAPTERISATION

Table of Contents

CONTENTS PAGE NUMBERS

 List of Tables

 List of Figures

1. Introduction

2. Review of Literature

3. Company Profile

4. Data Analysis & Presentation

4.1 Presentation & Analysis
4.2 Interpretations

5. Summary & Conclusion

6. Bibliography

7. Appendices
Appendices A: Questionnaire
Appendices B: Organizational Structure

5
 CHAPTER – 1

‘INTRODUCTION’

6
PERCEPTION

Perception is defined as the “The process by which an individual

selects, organizes and interprets stimuli in to a meaningful coherent picture
of the world”.

A stimulus is any units of input to any of the census, example of

stimuli i.e., (sensory output) include products, packages, brand names,
advertisement and commercials.

Sensory Receptors are the human organs i.e., (Eye, Ear, Nose, Mouth,
Skin) that receive sensory input their sensory functions are to see, hear,
smell, taste and feel. All the functions are called into play either singly or in
combination in the evaluation and use of more consumer products.

The study of perception is largely the study of what we

subconsciously add to or subtract from the raw sensory inputs to produce our
own private picture of the world.

The minimal difference that can be detected between to similar stimuli

is called the differential threshold of J.N.D (Just Noticeable Difference). A
19th century German Scientist name Ernst Weber discovered the J.N.D
between two stimuli wants not an absolute amount, but an amount relative to
intensity of first stimulus.

7
 According to Weber Law an additional level of stimulus equivalent to
J.N.D must be added for the majority of people to perceive a difference
between the resulting stimulus and initial stimulus.

Consumer strategies for reducing perceived risk include increase

information search, brand loyalty, buying a well known brand form
reputable retailer, buying the most experience brand, and seeking
reassurance in form money back guarantee, warranties, pre purchase trail.

The concept of perceives risk has important implication for markets.

Who can facilitate the acceptance of new products promotional campaigns?

THE NATURE OF PERCEPTION

Another very important facet of individual behavior in organizations

is perception. The CEOs themselves and some supporters generally perceive
their compensation as equitable where as others it as excessive. If every
remainder of this chapter we focus on perception and attribution.

8
 A DEFINITION OF PERCEPTION

Perception is the set of processes by which an individual becomes

aware of and interprets information about the environment. A general
discussion of behavioral concepts and processes mighty identify perception
as a single process, but perception actually consists of several distinct
processes. Moreover, in perceiving we receive information in may guises,
from spoken words or visual images to movements and forms. Through the
perceptual processes, the receiver assimilates the varied types of incoming
information for the purpose of interpreting it.

People often assume that reality is objective, that we all perceive the
same this in the same way. To rest this idea, we could ask students at the
universities of Oklahoma and Nebraska to describe the most recent football
game between their schools. We probably would hear to quite conflicting
stories. These differences would arise primarily because of perception. The
fans “saw” the same things but interpreted them in sharply contrasting ways.
An object – another person, an event, and an activity –is the focal point for
perception. A stimulus makes the individual aware of the object then must
be interpreted. Finally, interpretation triggers a response. Responses may
include over behavior, changes in attributes, or both.

9
 PERCEPTUAL PROCESS IN ORGANIZATIONS

CHARACTERISTICS OF THE OBJECT

Perception is influenced by characteristics of the objects that set it
apart from its surroundings or cause the perceiver to be more or less aware
of the object then would otherwise be the case. Such characteristics include
contrast, intensity, movement, repetition and novelty.

MENTAL PROCESS
Object → Awareness → Recognition → Interpretation → Response

We also tend to focus our attention first on objects that are moving or
changing. Movement stimulates our awareness of an object before we
become aware of its surroundings. We notice a flashing neon sign on a dark
street, a person walking through a group of standing people. Or a single car
moving along next to two lanes of stalled traffic.
Repetition also can increase out awareness of objects. Most people
can recall the most recent advertising slogans for Mc Donald’s and Coca
Cola because they are repeated over on television and radio. Likewise, if a
subordinate repeats a request for additional budget support over and over
again, the manager is more likely to remember the request then if it had been
made only once.

10
 CHARACTERISTICS OF THE PERSON

An individual personal characteristic also affect how he or she

perceives and interprets things. The most important characterizes are
salience, disposition, attitudes, self-concept and personality.

Salience is the individual’s feeling about the object’s

importance. The more salient object is to you, the more attention you are
likely to pay to it. If this morning’s newspaper contains an article about a
dramatic tuition increase at a specific university, students at that university
probably would read it carefully. Some one not affiliated with the school,
however, might skim right pass the article with out a second glance. The
reason is simple: The information the article contains would be far more
salient to the students then to the outer person. Thus, a marketing manager
for IBM would eagerly read an article about a new advertising campaign by
Hewlett- Packard but probably would show significantly less interest in a
new stock offering by Sears.

11
Characteristics of the Object Characteristics of the Person

Contrast Salience
Inensity Disposition
Movement Attitude
Repetition Self-concept
Novelty Personality

Perceived

Reality

Situational Processes

Selection

Organization

Stereotyping

Halo effect

Projection

12
As individual’s disposition also affects show he or she perceives things.
Disposition is a short term emotional response triggered by various
environmental stimuli. Suppose a manager has just been told that she will
receive no pay raise next year because of low performance in her work
group. Back in her office, doubt in a lousy mood, she discovers that one of
the subordinates has made an error in calculating unit costs. She promptly
berates the subordinate for what she perceives as slipshod work. The
manager disposition has made her not only more aware of the subordinate
error but less tolerant of it.

SITUATIONAL PROCESS

In a sense, situational process act as filters, that is objective

information from the environment is interpreted and shaped as the individual
perceives it. The individual’s cognitions of the environment are influence, as
we described earlier, by characteristics of both the object and the individual
subtle interactions that are unique to particular situations may also occur
between person and object. This means that the same person may perceive
the same object differently in different situations. The major situational
processes are selection, organization, stereotyping, the halo effect and
projection.

13
STERIOTYPING:

It is the process of categorizing people into groups on the basis of

certain presumed traits or qualities. Suppose you walk into the reception
area of an executive suite. There you notice a man and a woman talking
beside a secretary’s desk. A typical reaction, owing to a firmly entrenched
stereotype, it is to assume the woman is the secretary and the man is the
executive. Stereotyping consists of three steps. First, we identify categories
by which he will sort people (race region, sex). Next we associate attributes
with those categories (athletic ability, speech patterns and occupations).
Finally we infer that all people in certain categories take on the attributes we
have decided on(all blacks are athletic; all people from Boston talk funny;
all secretaries are woman; all people pursuing an MBA are aggressive and
career driven) Needless to say, stereotypes are almost always inaccurate.

THE NATURE OF ATTRIBUTIONS

Attributions theory, a relatively new addition to the field of

organizational behavior, has links to perception, motivation and leadership.
Here we discuss only its implications for perception. For attributions
theory’s relationship to motivation and to leadership.

14
 Consensus (High or Low)

Observation of Consistency (High or low) Attribution of causes

Behavior (High or low)

Distinctiveness (High or
low)

Fritz Heider and H.H. Kelly are the best-known contributors to

attribution theory. Attribution theory suggests that we observe behavior and
then attribute causes to it, that is, we attempt to explain why people behave
as they do. The process of attribution is based on perception of reality, and
these receptions may vary widely among individuals.

Above figure illustrates the basic attribution theory framework. To

start the process, we observe behavior either our own or someone else’s. We
then evaluate the behavior in terms of its degrees of consensus, consistency
and distinctiveness. Consensus is the extending to which the people in the
same situation behave in the same way at different times. Distinctiveness is
the extent to which the same person behaves in the same way in other
situations. As a result of impressions or attributions as to the cause of

15
behavior. We may believe the behavior is caused internally (by forces with
in person) or externally (by forces in the person’s environment)

ATTRIBUTION ABOUT SUCCESS

Attribution Possible response

Internal

“Sam is successful because he Give Sam positive

Works hard and has lots of ability” reinforcement promotes him;
Holds him up as an example to
others.

External Give Sam more work to do;

promote some of his work group
“Sam is successful because he
has an easy job and a strong work
group”

To others

ATTRIBUTION ABOUT FAILURE

Attribution
Possible response

16
Internal

“Sally is doing a poor job Because she Send sally to a training

lacks ability and Motivation” program or change the incentive structure.

incentive structure
External

Sally is doing a poor job because She lacks Increase Sally’s resources and strengthen
the proper resource and has week work her work group
group

We also make attributions regarding our selves. If we attribute a

pay raise to our hard work, we may continue to work hard. On other hand, if
we think we were given the raise because the boss liked us, we may put
more effort into cementing that friendship.

Attribution theory currently is getting deal of attention from

Organizational behavior researchers in the areas of leadership, motivation,
performance appraisal, communication, reward systems, and a variety of
other fields. It holds considerable promise for increasing our understanding o
behavior in organizational settings.

MANAGERIAL IMPLICATIONS OF PERCEPTION AND ATTRIBUTION

Perception and attribution have many implications for managers in

organizations, particularly in motivation, hiring and performance appraisal.

17
PERCEPTION, ATTRIBUTION AND MOTIVATION

Perceptions of the workplace play a major role in motivation.

Suppose an employee is experiencing some unexpected money trouble.
Because of her disposition (she is worried) and the salience of money (it is
unusually important to be at the moment) she will be especially sensitive to
issues of compensation. Through projection, she may assume everyone in
the organization also care mainly about money. A large pay raise given to
another employee will frustrate her and will intensity her efforts to get a pay
and how they compare to one another. Obviously as suggested earlier,
attribution is also relevant to motivation. A person who believes his pay
raise is attributable to effort (internal) rather than to his being the boss’s
nephew (external) will hose to continue to work hard.

PERCEPTION, ATTRIBUTION, AND HIRING

Perception can be also affecting him hiring of new employees.

Contrast or novelty in the job applicant can affect his or her chances of
getting at his job. The person doing the hiring may stereotype applications
on the basis of raced or sex or allow the halo effect to distort an overall
perception of a applicant. An interviewer’s disposition during an interview
or attitudes toward certain or the applicant’s attributes can also affect the
interviewer’s perception of the applicant. For example, manager with a
toothache who believes pole should address professionally for a job
interview us likely to be impressed by a applicant who shows up wearing
sunglasses and flowered sort coat. Consensus, consistency and

18
distinctiveness each can also play a role in how the manager formulates a
hiring decision.

PERCEPTION, ATTRIBUTION AND PERFORMANCE EVALUATION

Performance evaluation is the assessment of an employee’s

performance to correct shortcomings, identity strengths and provide a basis
for giving rewards. Several areas of performance evaluation are especially
susceptible to perceptual distortion. The contrast between two employees
can affect the evaluation. Suppose a manager prepares several performance
evaluations of her subordinates in one afternoon, one right later the other.

19
ONLINE TRADING

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

The trading network is depicted in given below NSE has main

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

20
TRADING NETWORK

HUB
ANTENNA
SATELITE

NSE MAINFRAME BROKERS PREMISES

21
Objectives of Study

 To study the customer perception on online

trading.

 To know the benefit customer seek from

online trading.

Need of the study

As Online trading becomes more

sophisticated & complex, investors need a
financial intermediary who provides the
required knowledge and professional expertise
on successful investment.

22
Scope of the study

• It covers the locality of Ramanthapur &

nearby area & includes the customers having
a Demat A/C.

Limitations

• The sample size is limited to 100 Respondents.

• The opinions of the Respondents may be

biased.

23
 CHAPTER-2
Research Methodology

24
Research Methodology

Approaches

The research had both qualitative & quantitative aspects

enshrined in it.
The study was followed by quantitative research where a
questionnaire was used to find consumer opinion about the
online trading.

SAMPLE SIZE AND SAMPLING TECHNIQUE:

For this study 100 Respondents are chosen. The sampling

technique used is convenience sampling. Duration of the
study is 45 days.

25
DATA SOURCE AND TYPE:

Both primary and secondary data are used to complete the

study

 Primary data is obtained by administrating

questionnaire to respondents.

 The secondary data is obtained by the internet,

journals, and text books. It is used to study the profile
of the company and dealer, concepts of consumer
perception and literature review.

QUESTIONNAIRE AND FIELD WORK:

To collect primary data a structured questionnaire is used.

DATA CLASSIFICATION AND TABULATION:

The collected data is scrutinized properly. Then the

required tabulation as per the objectives of the study is
made.

26
STATISTICAL TOOLS:

Most of the study is tabulated in one variant tabulation.

Hence data is analyzed in terms of percentages and
graphical representation also is made.

27
 CHAPTER – 3

‘REVIEW OF LITERATURE’

28
 Title:

A comparative study of perceptions toward “scratch and save”

promotions in Canada and Korea

Author(s):

Sungchul Choi, Moontae Kim

Journal: Journal of Product & Brand Management

Year: 2008
Volume: 17
Issue: 4
Page: 265 - 271
ISSN: 1061-0421
DOI: 10.1108/10610420810887617
Publisher: Emerald Group Publishing Limited

Acknowledgements:

This work was supported by the University of Northern British Columbia's

Research Seed Grant (2007-0326).

29
 Abstract:

Purpose – The paper seeks to examine cross-cultural differences in how

consumers evaluate “scratch and save” (SAS) promotions (which are
characterized by uncertainty of savings outcomes) between Canada and Korea,
where the promotion tool is widely used but the countries have different cultural
values.
Design/methodology/approach – An experiment was conducted to examine
cross-cultural differences in SAS promotion evaluations between Canada (n=77)
and Korea (n=78).
Findings – SAS promotions effectively stimulate favorable shopping intentions in
Canada, a country with a low uncertainty avoidance culture, more so than in
Korea, a country with a high uncertainty avoidance culture. However, subjects in
Korea show consistently higher savings expectations from SAS promotions than
subjects in Canada. Thus, the results report that consumers with the highest
savings expectations do not necessarily have the highest intention to shop. In
addition, in Korea, a SAS promotion with guaranteed minimum savings is found
to be very effective due to reduced ambiguity about its outcome.
Research limitations/implications – The study suggests cross-cultural
differences in the applicability of the disjunction effect.
Practical implications – The findings suggest that when SAS promotions are
presented in a country with high uncertainty avoidance, retailers should explicitly
indicate the value of the guaranteed minimum savings. By promising guaranteed
savings, retailers can reduce consumers' relatively high concerns about unknown
SAS outcomes, which results in a greater advantage in building favorable
perceptions.
Originality/value – Very little work has been undertaken into SAS promotions
and no known empirical research has been undertaken into cross-cultural
differences. This paper fills some of the gaps.

Keywords:

Canada, Cross-cultural studies, Discounts, Promotional methods, South Korea

Article Type: Research paper

Article URL:
http://www.emeraldinsight.com/10.1108/10610420810887
617

30
 Title:

An evaluation of customer perception of FM service delivery

Author(s): Derren Shaw, Barry Haynes

Journal: Facilities
Year: 2004
Volume:22
Issue: 7/8
Page: 170 - 177
ISSN:0263-2772
DOI: 10.1108/02632770410547534
Publisher: Emerald Group Publishing Limited

31
 Abstract:

Applies service quality theory to facilities management (FM), resulting in a more

customer-orientated approach to FM. Uses a questionnaire as the main source of
data collection. Uses factor analysis to establish basic underlying concepts or
dimensions. Proposes a “gap” model which makes a comparison between
service quality and the level of importance that customers place on each service
dimension. The implications are that FM managers can use service dimensions
to measure the qualitative elements of FM service provision. Segmentation
analysis allows FM managers to determine whether different service levels are
required for customer segmentation groups. Allows the concepts and theories
that are currently applied in the service quality literature to be applied in an FM
context. This moves the debate about FM performance metrics more towards
measuring and understanding customer perceptions and ultimately to customer
management strategies.

Keywords: Customer service management, Customer services

quality, Facilities, Marketing theory
Article Type: Research Paper
Article URL:

http://www.emeraldinsight.com/10.1108/02632770410547534

32
 Title:

Customer intention to return online: price perception, attribute-

level performance, and satisfaction unfolding over time

Author(s): Pingjun Jiang, Bert Rosenbloom

Journal: European Journal of Marketing
Year: 2005
Volume:39
Issue: 1/2
Page: 150 - 174
ISSN: 0309-0566
DOI: 10.1108/03090560510572061
Publisher: Emerald Group Publishing Limited

Abstract:

Purpose – Compared with the emphasis that service quality research has
received in online marketing, much less work has been done on the role of price
perception, service attribute-level performance and satisfaction that unfolds over
time, and their effects on customer retention. This paper seeks to fill this gap in
the literature.
Design/methodology/approach – This paper builds propositions about the role
of price and customer satisfaction at different stages on customers' intention to
return. Research hypotheses are developed based on theory from the combined
literatures of services, product pricing, and behavioral decision theory. Data from
the e-retailing industry related to two specific periods of shopping experience (at
checkout and after delivery) are used in the empirical tests. Structural equation
modeling is employed to test the hypothesized relationships.
Findings – The findings of this study indicate that after-delivery satisfaction has
a much stronger influence on both overall customer satisfaction and intention to
return than at-checkout satisfaction, and that price perception, when measured

33
on a comparative basis, has a direct and positive effect on customer overall
satisfaction and intention to return.
Research limitations/implications – The data are only available from surveying
customers who have made purchases. Future study can investigate how
satisfaction with shopping convenience has impacted customer acquisition.
Measures of actual return behavior, as opposed to behavioral intentions, will also
enhance the validity of the study.
Practical implications – This paper concludes that excellence pre-sales service
is not necessarily an advantage that allows e-tailers to develop customer
retention. In fact, e-tailers might command higher customer retention through
providing good performance in after-delivery service and continuously generating
favorable price perceptions among customers because both have a strong and
positive influence on return intention.
Originality/value – This research conceptualizes and explores different aspects
of satisfaction that unfold over time, regarding customers' whole shopping
experience with a particular e-retailer. It is a pioneer work that empirically
investigates the relative contribution of at-checkout and after-delivery satisfaction
in generating intention to return to an e-tailer.

Keywords: Consumer behaviour, Customer retention,

Customer satisfaction, Internet, Perception, Prices
Article Type: Research paper
Article URL:
http://www.emeraldinsight.com/10.1108/03090560510572
061

34
 Title:

The impact of customers' perception of varying degrees of

customer service on commitment and perceived relative
attractiveness

Author(s): Tor W. Andreassen, Line L. Olsen

Journal: Managing Service Quality
Year: 2008
Volume: 18
Issue: 4
Page: 309 - 328
ISSN: 0960-4529
DOI: 10.1108/09604520810885581
Publisher: Emerald Group Publishing Limited
Acknowledgements:

The authors acknowledge data provided by the Norwegian Customer Satisfaction

Barometer. Valuable comments provided by members of NSM's Marketing
Faculty are recognized. Both authors have contributed equally to the paper.

Abstract:

Purpose – The study is motivated by business' mixed response to increasing

demand for customer service, leaving the question as to its impact on
performance open. The study is concerned with the impact of customers'
perception of customer service (bad/good) on variables that are known to drive
revenue, i.e. customer satisfaction, perceived relative attractiveness, and
commitment.
Design/methodology/approach – Data were collected through a survey among
bank customers. Two groups were sampled: customers who have experienced
good or bad customer service. The hypotheses were tested by applying
structural equation modeling and running two group analysis using the PLS and
LISREL softwares.

35
Findings – Customers that experience bad customer service do take into
account the same variables in their evaluation as do customers that experience
good customer service. They do however, put different weights on every factor in
the evaluation process. Also the strength of the relationships between the
variables seems to differ. Typically, analyses showed that customers
experiencing bad customer service tend to consider more thoroughly all aspects
of the service; the relationships between the variables were stronger and the
explained variance of each construct higher, than in the group of customers
experiencing good customer service. However, the paths are not different across
the groups.
Research limitations/implications – The paper has only tested the model and
hypotheses in one industry. Future research should test the same model using
different industries reflecting different customer involvement levels.
Practical implications – From this study, service managers can learn that
investing in customer service in ongoing customer relations is “the right thing to
do” as it is linked to customer equity through customers' commitment to the firm.
Second, as customer service in such relationships drives perceived relative
attractiveness, saving the bottom line by cutting back on the human side of the
customer interaction, may harm the firm's competitive position in the
marketplace.
Originality/value – The impact of customer service on key performance
variables in ongoing relations has to the knowledge never been studied before.

Keywords: Banking, Consumer behaviour, Customer relations,

Customer services quality, Norway
Article Type: Research paper
Article URL:
http://www.emeraldinsight.com/10.1108/09604520810885
581

36
 CHAPTER – 4

‘COMPANY PROFILE’

37
HISTORY OF THE STOCK EXCHANGE

The only stock exchanges operating in the 19th century were those of
Bombay set up in 1875 and Ahmedabad set up in 1894.these were organized
as voluntary non profit making organization of brokers to regulate and
protect their interests. Before the controls on securities trading become a
central subject under the constitution in 1950, it was a state subject and the
Bombay securities contract (control) Act of 1952 used to regulate trading in
securities. Under this Act, the Bombay stock exchange in 1972 and the
Ahmedabad in 1973.

During the war boom, a number of stock exchanges were organized in

Bombay, Ahmedabad and other centers, but they were not organized. Soon
after it become a central subject, central legislation proposed on a committee
headed by A.D.Gorwala went into the bill securities regulation. On the basis
of committee’s recommendations and the public discussion the securities
contract (regulation) Act become law in 1956.

38
Definition of the stock exchange

“Stock exchange means any body or individuals whether incorporated

or not, constituted for the purpose of assisting, regulating or controlling the
business of buying, selling or dealing in securities.

It is an association of member brokers for the purpose of self

regulation and protecting the interest of its members. It can operate only if
the government recognizes it. Under the securities contract (regulation) act
1956, the recognition is granted under section 3 of the act by central finance
ministry.

By-laws
Beside the above act, the securities contract (regulations) rules were
also made in 1975 to regulate certain matters of trading of stock exchanges,
which are concerned with following subjects.
Opening/closing of stock exchanges, timing of trading, regulation of
bank transfer, regulation of carryover business, control of settlement, and
other actives of stock exchanges, fixation of margins, fixation of market
prices or making prices, regulation of taravani business (jobbing), regulation
of broker trading, brokerage charges, trading rules on exchanges, arbitration
and settlement of disputes, settlement and clearing of the trading.

39
Regulations of stock exchanges:
The securities contract (regulation) is the basis for operations of the
stock exchange o India. One exchange can leally without the government
permission or recognition. Stock exchanges are given monopoly in certain
areas under section 19 of the above act is to ensure that the control and
regulation are facilitated. Recognition can be granted to a stock exchange
provided certain conditions are satisfied and the necessary information is
supplied to the government. Recognition can be withdrawn, if necessary.
Where there is no stock exchange, the government can license some to the
brokers to perform the function of a stock exchange in its absence.

Securities Exchange Board of India (SEBI)

SEBI was set up an autonomous regulatory authority by the

government of India in 1988 “to perform the interest of investors in
securities and to promote the development of and to regulate the securities
the securities markets and for matters connected therewith or incidental
thereto”. It is empowered by to acts namely the SEBI Act, 1982 and the
securities contract (regulation) Act, 1956 to perform the function of
protecting investor’s rights and regulating the capital market.

40
National Stock Exchange (NSE):

The NSE was incorporated in NOVEMBER 1994 with an equity

capital of Rs.25 Crores. The International Securities Consultancy (ISC) of
Hong Kong has helped in setting up NSE. ISC has prepared the detailed
business plans and installation of hardware and software systems. The
promotions for NSE were financial institutions, insurance companies, banks
and SEBI capital market ltd, Infrastructure leasing and financial services ltd.
and Stock Holding Corporation Ltd.

Bombay Stock Exchange (BSE):

This stock exchange, in Mumbai popularly known as “BSE” was

established in 1875 as “The native share and stock brokers association”, as a
voluntary non-profit making association .It has evolved over the years into
its present status as the premier stock exchange in the country. It may be
noted that the stock exchange is the oldest one in Asia, even older than the
Tokyo Stock Exchange, this was founded in 1878.

A governing board comprising of 9 elected directors, 2 SEBI

nominees, 7 public representatives and an executive director is the apex
body, which decides the policies and regulates the affairs of the exchange.

41
 Company Profile

www.sharekhan.com

Share khan, India’s leading stockbrokers the real arm of SSKI, an

organization with over eight decades of stock market experience. With more

than 175 share shops in over 80 cities, and a presence on internet through

www.sharekhan.com, India’s premier online trading destination, we reach

out to customers like no one else.

Share khan offers you trade execution facilities on the BSE and the NSE,

for cash as well as derivatives, depositary services and most importantly,

investment advice tempered by 80 years of research and broking experience.

To ensure that your trading experience with share khan is fast, secure and

hassle free. We offer a suite of products and services, providing you with a

multi-channel access to the stock markets.

42
 SSKI group also comprises institutional broking and corporate finance.

While the institutional broking division caters to the largest domestic and

foreign institutional investors. The corporate finance division focuses on

niche areas such as infrastructure. Telecom and media. SSKI holds a

sizeable portion of the market in each of these segments.

As the forerunner of investment research in the India market, we

provide the best research coverage amongst broking houses in India. Our

research team is rated as one of the best in the country. Voted four times as

the top domestic brokerage house by Asia money survey. SSKI is

consistently ranked almagest the top domestic brokerage houses in India.

Dematerialization in short called as “Demat is the process by which

an investor can get physical certificates converted into electronic form, Rs

20 per scrip per day (the brokerage per scrip will be charged for the trades

resulting in delivery on actual or Rs. 20 whichever is more).

(For e.g. If a customer buys 100 shares of sail, total delivery value

=2200. Brokerage @ 0.5% = rs 11, but the min chargeable amt per scrip

per day = Rs 20), so additional rs 9 will be charged as min delivery

handling charges)

43
COMPANY BACKGROUND:

• Share khan is the retail broking arm of SSKI, securities pvt. ltd. SSKI
owns 56% in share khan, and balance ownership is HSBC, first caryle, and
Intel pacific.
• Into broking since 80 years.
• Focused on providing equity solutions to every segment.
• Largest ground network of 210 branded share shops in 90 cities.

ONLINE ACCOUNT TYPES

Commercial Terms and Conditions to open online trading account

Account Opening Fees:

CLASSEC ACCOUNT: 750/- (Life Time opening charges)

SPEED TRADE: 1,000/- up with 9 top international banks.

(City Bank, HDFC, IDBI, Oriental Bank of Commerce, UTI, Indus Ind
Bank UBI, Yes Bank & ICICI)

44
Brokerage:

 0.10 % (Each leg) + Turnover Tax + Stamp Duty + Service Tax For
each leg of Intra-day trades.
 5 paisa (Each leg) + Turnover Tax + Stamp Duty + Service Tax For
each leg of Intra-day trades. (Minimum brokerage for shares below Rs. 50 )
 0.50 % (Each leg) + Turnover Tax + Stamp Duty + Service Tax for
trades resulting in delivery.
 10 paisa (Each leg) + Turnover Tax + Stamp Duty + Service Tax For
each leg of Intra-day trades. ( Minimum brokerage for shares below Rs.20 )
 A minimum brokerage Rs.18 for delivery trades.

Exposure:
You will be given a Trading account with 25 % margin i.e. 4 times your
margin

CLASSIC PREPAID A/C :

Account opening Charges 750/-

2000/- Advance Brokerage cheque.
Brokerage:
 Delivery – 0.40%
 Inntraday-0.07%

CLASSIC / WEBSITE FEATURES

45
 Facility to integrate choice of 4 banks /DP / trading account
 Instant credit for shares sold from DP
 Automatic pick-up of shares from linked DP for pay-in
 Automatic deposit of shares into linked DP after pay-out
 4 times leverage on margin trades
 Margin trading available for entire market session
 Slab wise brokerage structure for delivery and margin trades,
shortly
 Free calls for order placement on toll-free
 Trusted, professional advice of tele-brokers
 Facility to enter after market orders online & via phone
 Daily research newsletter (investor eye) via e-mail
 Access to new IPO without any paperwork
 Advanced portfolio monitoring tools
 Integrated DP account with trading account
 Option of linking additional 4 DP accounts to trading account
 Choice of linking 4 banks to trading A/C for online payments
 Cash and derivatives trading in a single account
 E-mail confirmations for all transactions
 Choice of electronic/ physical contracts

46
SPEED TRADE PREPAID A/C :
Account Opening Charges: 1000/-
Advance Brokerage Cheque: 6000/-
Brokerage:
 Delivery : 0.25 %
 Intraday – 0.05%

SPEEDTRADE EXE FEATURES :

 All the features of classic

 Trade execution in 2-3 seconds
 Instant order / trade confirmations in the same window
 Hot keys similar to a broker’s terminal
 Multiple tic-by-tic intra-day charts \ with multiple indicators
 Availability of 2 ISP & 6 Servers ensuring maximum uptime
 Customized alerts based on multiple parameters
 Cancel all / square off all facility
 Window for top gainers, top losers, and most active updated live.

47
 PRESENT TRADING MECHANISM

The National system provides single, nation wide Securities. It

enables investors in one part of the country to trade at the best quotes with an
investors located in any other part of the country through the members of the
stock exchanges and subsequently clears and settles the trade in an efficient
and cost effective manner.
The primary objective of the stock market is to provide clear
opportunity to the investors throughout the country to trade any securities
irrespective of the size of the order or the broker through whom the order is
routed. This provides the facility to execute the buy out any extra cost to the
investors.
There will be no trading floor in the exchanges. Instead, each trading member
will have a computer at his own office any where in India which will be
connected to the central computer system at the NSE through leased lines or
VSAT’s (Very Small Aperture Terminal), for an interim transition period of
six months and subsequently by satellite link.
VSAT’s are relatively smaller dishes similar to dish antenna for cable T.V and
have the benefit of not being very expensive.
A satellite network makes it possible to connect almost all the parts of the
nation quickly as it is easy to install, as against the ground lines Such as dial
up modems leased lines which are prone to disruptions, satellite links on other
hands ensure high speed, availability and quality of the connection. This code
of trading is known as “On-line Trading”.

48
 TRADING PROCEDURE BEFORE ON-LINE

THE TRADING RING:

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

A.CHOICE OF BROKER:

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

49
PLACEMENT OF ORDER:

The next step in planning of order for the purchase or sale of

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

ENTRY OF ORDER INTO THE BOOKS:

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

EXECUTION OF ORDER:
Big brokers transact their business through their authorized clerk.
Small ones out their business personally. Orders are executed in the trading
ring of the SHAREKHAN .This works from 12:00 noon to 2:00 p.m
discretionary order on all working days from Monday to Friday and a special
hour session on Saturday.

50
 The floor of the stock exchange is divided into number of markets
(pits) according to the nature of security deal in. The authorized clerk/broker
goes to the pit and jobbers offer two way quotes for the scrips they deal in.
they act as market makers and provide liquidity to the market. The system has
been designed to get the bet lids and offers from the jobber’s book as well as
the best buy and sell orders from the book. If the quotation is not acceptable to
the brokers, he may make a counter bid/offer

Ultimately the bargains may be closed at a price mutually acceptable

to both the parties. In case the quotation is not acceptable to him, the broker
may go to another dealer and make a bargain. All bargains on the stock
exchanges are settled by word of mouth and there is no written contract signed
immediately by the parties concerned. Once the transaction is finalized, the
deals are recorded in a Chaupri Rough notebook or transaction note or
confirmation memos. Soudha block books or confirmation memos are
provided by the stock exchange. The details are recorded in these books also.
The prices at which different scrip are traded on a particular day published on
the next day in the newspapers. An authorized representative of the stock
exchange is also present in the hall to supervise the trading.

51
PREPARATION OF CONTRACT NOTES

Usually, the authorized clerks enter the particulars of the business

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

52
 CORPORATE HIERARCHY

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

Corporate Manager

Branch 1 Branch 2

Dealer 1 Dealer 2 Dealer 11 Dealer 12

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

A. Corporate Manager: The corporate manager is a term assigned to a user

placed at the highest level in a trading firm. The facility to set Branch order
value limits and user order value limits is available to the corporate manager.
B. Branch Manager: The branch manager is term assigned to a user who is
placed under the corporate manager. The branch manager can set user order
value limits for each of his branch.
B. Dealer: Dealers are users at the lower most level of the hierarchy. A
dealer can view and perform order and related activities only for oneself.

53
COMPANY SERVICES

54
What we can do for you...

Sharekhan Services
Sharekhan is one of India's leading financial services companies. We provide a complete life-cycle of investment
solution in Equities, Derivatives, Commodities, IPO, Mutual Funds, Depository Services, Portfolio Management
Services and Insurance. We also offer personalized wealth management services for High Networth
individuals.With a physical presence in over 300 cities of India through more than 800 "Share Shops", and an
online presence through Sharekhan.com, India's premier online destination, we reach out to more than 800,000
trading customers.

Please click on the service in the image below to get additional information on it.

55
 KNOELEDGE CENTRE
Trade Now

Home -> Knowledge Centre

56
 Knowledge Center Sharekhan School

Knowledge Center Home

School Sharekhan School
Most people perceive trading in shares as a very easy means
Stock Trivia of making money. However history has demonstrated that
Opinion Polls the same is as far from the truth as is the Earth from the
Sun.
Book Reviews
Guest Columns In case you want stocks to really work for you, you should
spend some of your precious time exploring this section to
maximise the returns on your valuable money.

Learning To Invest - In Equity

Buying a stock is like owning a company. Puzzled?
Learn the basics of learning to in...
Enter This Section

Getting Started - How to Begin Investing

Time to take a break from the classroom. Time to
share some experiences and have som...

Enter This Section

Advanced Investing - Tips and Tricks
You know the basics. Now you are eager to know how to make money. Learn the tricks of being a smart
investor.

Enter This Section

More on Investing - scheme

Miscellaneous articles related to Investing in Stocks
If your dil maange more, check out this section for various articles on investing in stocks. Happy reading!

Enter This Section

Opinion Poll Stock Trivi
s a

Share Your Questions on

Opinions! Investing
Every investor's opinion counts. So participate in History, information and trivia about investments,
this opinion poll and have your opinion heard! stocks, shares, stock exchanges and Dalal Street.

Where do you see market moving from here? Who started the Tata Hydra Electric Power
Supply Company?

It will once again touch October lows

Sir Ratan Tata
It will breach even October levels and move
below Sir Dorabji Tata

It has almost bottomed out and will not see Ratan N. Tata
those levels
57
58
 With a Sharekhan online trading account, you can buy and sell shares in an instant! Anytime you like and from
anywhere you like! You can choose the online trading account that suits your trading habits and preferences - the
Classic Account for most investors and TradeTiger for active day traders.

Your Classic Account also comes with Dial-n-Trade completely free, which is an exclusive service for trading
shares by using your telephone.

• Freedom from paperwork

• Instant credit and money transfer

• Trade from any net enabled PC

• After hourAorders
next-generation online trading product that brings the power of your broker's terminal to your PC

• Online orders on the phone

• Timely advice and research reports

• Real-time Portfolio tracking

The Classic Account enables you to trade online on the NSE and the BSE, invest in IPO and Mutual Funds and
access all the research and transaction reports through our website.

Dial-n-trade is an exclusive service for trading shares from your Landline telephone or Cell phone.

59
 CHAPTER – 5

‘Data Analysis & Presentation’

60
yrs no of respondents
0-1 yrs 72
1-2 yrs 4
2-5 yrs 24
Above 5 yrs 0

80 72
no. of respondents

60
0-1 yrs
40
24 1-2 yrs
20 2-5 yrs
4 0 Above 5 yrs
0
1
no. of years

61
Interpretation
From the about diagram it can be understood that most of the
respondents are having demat account form past one year.

online trading No. of respondents

yes 75
no 25

75
no. of respondents

80
70
60
50
40 yes
25
30 no
20
10
0
1
doing online trading

62
Interpretation
From the above diagram it can be understood that majority of
the respondents are doing online trading.

Preference of
trading no of respondents
Through
broker 28
online
72
no. of respodents

80 72
70
60
50
40
28
30 Through broker
20 online
10
0
1
preference of
trading

63
Interpretation
From the above diagram it can be understood that most of the
respondents prefer to trade online.

Feel secure
buying shares
online no of respondents
Yes 64
no 8
no. of respondents

70 64

60
50
40
30 Yes
20 no
8
10
0
1
feel secure buying
online

Interpretation

64
From the about diagram it can be understood that almost all
the respondents who have done online trading feel secure in
buying shares online.

Frequency of
participation no of respondents
Daily 24
Weekly 56
Monthly 12
quarterly 8
no. of respondents

60 56

50

40
30 Daily
24
Weekly
20
12 Monthly
10 8
quarterly
0
1
frequency of
participation

Interpretation
From the about diagram it can be understood that majority of
the respondents prefer to trade weekly once.

65
Stock broking
company no of respondents
India info line 15
Share khan 64
Net worth 4
India bulls 8
other 9

70 64

60
no. of account holders

50
India info line
40 Share khan
30 Net worth

20 15 India bulls
8 9 other
10 4

0
1
stock broking companies

Interpretation

66
From the about diagram it can be understood that majority of
the respondents who have demat account belong to Share
Khan ltd.

Satisfaction no of respondents
Yes 72
no 3
no. of respondents

80 72
70
60
50
40 Yes
30 no
20
10 3
0
1
satisfaction

Interpretation
From the about diagram it can be understood that majority of
the respondents are satisfied with online trading.

67
Problem in
maintenance no of respondents
Yes 12
No 88
no. of respondents

100 88

80

60
Yes
40
No
12
20

0
1
problem in
maintenance

Interpretation

68
From the about diagram it can be understood that almost all of
the respondents did not face any problem in maintaining
Demat.

Right decision no of respondents

Yes 60
no 4

60
no. of respondents

60
50
40
30 Yes
20 no

10 4

0
1
right decision

Interpretation

69
From the about diagram it can be understood that that most
the respondents who joined Share Khan think that they choose
the right decision by joining Share Khan.

Money
transaction
online correctly no of respondents
Yes 72
no 3
no. of respondents

80 72
70
60
50
40
30 Yes
20 no
3
10
0
1
money transaction
online correct

70
Interpretation
From the about diagram it can be understood that almost all
respondents feels that through online money transaction is
done correctly.

Expectations
from Share Khan no of respondents
High returns 24
Safety 36
Better response 28
other 0
no. of respondents

40 36
35
30 28
High returns
24
25
20 Safety
15
10 Better
response
5
0 other
0
1
expectations of
respondents

71
Interpretation
From the about diagram it can be understood that few people
feels that Share Khan gives better response, few high return &
remaining safety.

opening charges no of respondents

low 28
average 40
high 32
no. of respondents

40
40
32
28
30

20 low
average
10
high
0
1
opening charges

Interpretation
From the about diagram it can be understood that majority of
the respondents feels that the opening charges are high or
average.

72
facilities at
Share Khan no of respondents
Excellent 12
Very good 16
Good 24
Average 36
Bad 8
no. of respondents

40 36
35
30
25 24 Excellent
20 16 Very good
15 12 Good
10 8
Average
5
0 Bad
1
facilities

73
Interpretation
From the about diagram it can be understood that most of the
respondents gave positive response when asked about the
facilities provided by Share Khan.

CHAPTER – 6

‘Summary & Conclusion’

74
Findings

• It is found that 75 % of respondents have done online trading.

• 72% of respondents prefer to do trading online.
• Among who prefer to do online trading all of them feel secure in
buying shares online.
• 56% of respondents prefer to trade weekly once.
• 64% of respondents have D-mat account of Share Khan.
• 72% of respondents are satisfied by online trading.
• 88% of respondents didn’t have any problem in maintaining D-
mat account.
• 93% of respondents who hold D-mat account in share khan feel
that they have chosen the right decision.
• Those who preferred to trading online feels online money
transaction is done correctly.
• Majority of respondent expects better safety.
• Only 28% of the Respondents feel that opening charges at Share
Khan are low.

75
 • Only 8% of the Respondents feel that facilities provided by Share
Khan are bad.

Suggestions

• Try to persuade the remaining 25% to do online trading by telling

them what benefits they can get by doing trading online.
• Only 64% of respondents are having accounts with Share khan,
the remaining 36% are associated with different companies; there
is a scope of huge growth in the market.
• It will be better if company takes regular feedback from account
holder in order to know their satisfaction levels.
• Since most of respondents expect better safety from Share Khan
that may be the reason why there is a great need to focus on safety
measures, as well as to update account holders regularly about the
safety & security measures that are offered by company.
• Company may think of reducing account opening charges or
giving some extra facilities.
• Majority of respondents feels that facilities provided by company
are average, its may be better to focus on added facilities so that
customer feel satisfy.

76
Conclusion

• The study reveals that Share khan is performing

satisfactorily & above average. To have a competitive
advantage over competitors it needs to concentrate on
Customer satisfaction, advanced technology and Service
quality to lead the race. Company must adopt proactive
approach; the ability to understand and predict
customer’s needs and their behavior.

77
 Questionnaire

Dear Sir / Madam,

I am “S.MAHENDER” pursuing M.B.A from

VATHSALYA COLLEGE OF BUSINESS MANAGEMENT
BHONGIR. As Part of our curriculum I have to do project work in
the area of marketing.
Therefore I am working on a project titled
“Customer Perception on online trading” under the supervision
of faculty. I assure you that data will be used for academic purpose
only and strict secrecy will be maintained. I would also request you
to share only relevant information relating to my topic.

Thanking You.

78
Personal details:
Name:
Address:
Phone:

1) Do you have a Demat account?

( ) Yes ( ) No
2) Since how long you have a demat account?
( ) 0-1 yrs ( ) 1-2 yrs ( ) 2-5 yrs ( ) above 5 yrs
3) Have you ever done online trading?
( ) Yes ( ) No
4) What kind of trading do you prefer for trading?
( ) through broker ( ) Online
5) Do you feel secure in buying share online?
( ) Yes ( ) No

6) How frequently do you participate in trading activity?

( ) daily ( ) weekly ( ) monthly ( ) quarterly
7) Since how long you have been operating in trading activity?

79
 ( ) 0-1 yrs ( ) 1-2 yrs ( ) 2-5 yrs ( ) above 5 yrs
8) In which stock broking company do you have demat
account?
( ) Karvy ( ) Share khan ( ) Net worth ( ) India bulls ( ) if
other please specify_______________
9) Are you satisfied with trading online?
( ) Yes ( ) No
10) Do you face any problem in maintaining demat
account?
( ) Yes ( ) No
11) Do you think that you have taken a right decision to
join in Share khan?
( ) Yes ( ) No
12) Do you feel money transaction is done correctly
online?
( ) Yes ( ) No
13) What are the expectations of you from Share khan?
( ) High return ( ) Safety ( ) Better response ( ) if other
specify ___________
14) How do you feel about the opening charges of demat
account in Share khan?
( ) Low ( ) Average ( ) High
15) How do you feel about facilities in trading at this
company?
( ) excellent ( ) very good ( ) good ( ) average ( ) bad

80
81