A

SYNOPSIS REPORT
ON
ONLINE TRADING
AT
HDFC BANK LTD
Submitted
By
NAGIREDDY VIVEK REDDY
H.T.NO: 130420672049
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE
OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

AURORA POST GRADUATE COLLEGE
PEERZADIGUDA

(Affiliated to Osmania University)

2020-2022
 AURORA POST GRADUATE COLLEGE
PEERZADIGUDA

Department of Management

SYNOPSIS

Title of the Project : ONLINE TRADING

Student Name : NAGIREDDY VIVEK REDDY

Hall Ticket Number : 130420672049

Signature of the Student :

Signature of the Guide :

 TABLE OF CONTENTS
S. No. CHAPTER Page No

1 INTRODUCTION 1

2 NEED FOR THE STUDY 2

3 OBJECTIVES OF THE STUDY 3

4 RESEARCH METHODOLOGY 4

5 LIMITATIONS OF THE STUDY 5

 1.1 INTRODUCTION

The actual definition of “Online Trading” is as explained below:

Online trading is a service offered on the internet for purchase and sale of shares. In the real

world you place orders on your stockbroker either verbally (personally or telephonically) or

in a written form (fax).” In online trading, you will access a stockbroker’s website through

your internet enabled PC and place orders through the broker’s internet based trading engine.

These orders are routed to the stock exchange without manual intervention and executed

thereon in a matter of a few seconds. The net is used as a mode of trading in internet trading.

Orders are communicated to the stock exchange through website.

“Change is the law of nature”. There were times when man was a wanderer or a normal. He

himself had to go place to place in search of food, water and now everything is available at

your doorstep just at the click of the mouse. The growth of information technology has

affected almost all sectors of life. Internet has enabled us to get every information at our

doorstep. When Internet has affected all sectors he could “stock markets” the most important

player of the economy, has remained far behind? Like all other sectors Internet has set its feet

in the stock markets also.

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

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

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

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

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

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

presence of a broker and with much lower commissions, because everything is done online
 Internet trading commissions are clearly posted on the websites of the various

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

traded and the size of trade. In theory, therefore, an Interest investor always knows what

commission he is being charged on each trade. Internet investors can take as much time as

they would like to take prior to placing a trade order. Similarly the online investor likely does

not have to worry that his broker is making unauthorized trades. Since there is no individual

broker making a commission, the only person who is authorized to trace in the account is the

actual investor. Furthermore, the internet investor can never become a victim of excessive

trading (where for the broker) since the investor maintains total control over the number of

transactions which take place in the account.

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

believe that Internet trading is a way to take control of their finances and save more money in

the process. Unfortunately, this is not always the case. The advantages of Internet stock

trading have also its weaknesses and these weaknesses present significant drawbacks for the

average investor.

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

There is a danger for allowing the autonomy of online trading to hull you into the belief that

you are an expert investor. An online investor sitting at home at a personal computer also

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

services provided by traditional brokers.

ADVANTAGES OF ONLINE TRADING:

 Online trading has made it possible for anyone to have easy and efficient access to

more reports and charts than it was previously possible if one went to any brokers'

office. Thus we have access to a lot more information online.

 Online trading has let room for smaller organizations to compete with multinational

organizations since it is no longer a leg it issue. Being online does not identify the size

of any particular organization, therefore, this additional power to the underdogs.

 Online trading has allowed companies to locate themselves where they want as

physical location is not an issue anymore. Companies can establish themselves

according to their gains and losses, for instance where tax (sales and value added

taxes) is best suited to them.

 Online trading gives control to individuals and they can exercise it over accounts thus

comprehend what is going on when they trade. It is like going back to school and re-

educating oneself on how to trade online.

 Individuals’ benefit by saving comparatively a lot more when trading online as the

cost per trade is less.

,
HERE ARE THE POSSIBLE DISADVANTAGES:

 When network crashes, there will be problems and delays due to a large influx of

rapid online trading criteria.

 Individuals are restricted to first-hand financial guidance. This simply means that the

individual is himself / herself alone to.

 A tax (sales tax and value added tax) evaluation becomes an issue, especially when

you are trading internationally.

 One has no idea with whom he is dealing with on the other end.

 According to a study conducted by Mary Rowland, careful investor: is online trading

bad for your portfolio, the more one trades the less returns one gets, meaning that an

addicted trader gets, carried away online and begins to trade for too much which

causes losses for him / her.

 There is a need for more effective communication links over the Internet and the

ability of the server to deal with a large volume of visitors

1.2 NEED FOR THE STUDY

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

HDFC BANK LTD SECURITIES LTD., as the exchange has changed it’s trading from it and

there is need to assess the performance of the capital market. Maintaining good records

requires discipline, just like good trading. Unfortunately, many commodity traders don’t take

the time to track their trading history, which can offer a wealth of information to improve

their odds of success most professional traders, and those who consistently make money from

trading commodities, keep diligent records of their trading activity. The same cannot be said

for the masses that consistently lose at trading commodities.

1.3 SCOPE OF THE STUDY

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

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

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

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

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

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

1.4 OBJECTIVES OF THE STUDY:

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

to online trading system.

 To study the functions of HDFC BANK LTD through various

departments.

 To know the online screen based trading system adopted by HDFC

BANK LTD and about its communication facilities.

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

the HDFC BANK LTD to individual / members.

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

system.
RESEARCH METHODOLOGY OF THE STUDY:

The study is both descriptive and analytical in nature. It is a blend of primary data and

secondary data.The primary data has been collected personally by approaching the online

share traders who are engaged in share market. The data are collected with a carefully

prepared questionnaire. The secondary data has been collected from the books, journals and

websites which deal with online share trading.

Source of data

Primary Sources: The primary data was collected through structured unbiased questionnaire

and personal interviews of investors. For this purpose questionnaire included were both open

ended & close ended & multiple-choice questions.

Secondary method: The secondary data collection method includes:

 Websites

 Journals

 Text books

Method Used For Analysis of Study

The methodology used for this purpose is Survey and Questionnaire Method. It is a time

consuming and expensive method and requires more administrative planning and supervision.

It is also subjective to interviewer bias or distortion.

Sample Size: 100 respondents

Sampling Unit: Businessmen, Government Servant, Retired Individuals

Statistical Tools: MS-excel and SPSS are used to analyze the data.
LIMITATIONS OF THE STUDY:

The study confines to the past and present system of the trading procedure in the HDFC

BANK LTD study is confined to the coverage of all the related issues in brief. The data is

collected from the primary and secondary sources and thus is subject to slight variation than

what the study includes in reality.

The study is confined to online trading procedure only. Problems of listing are not

covered due to limited time and to keep the study in manageable limits.

- Time constraint was a major limiting factor. Forty five days were insufficient to even

grasp the theoretical concepts.

- Several other strategies that could have been studied were not done.

- Lack of knowledge with the brokers.

- Difference of theory from practice.

Absence of required knowledge and technology

 BIBLOGRAPHY

BOOKS:

 V.K.Bhalla,"INVESTMENT MANAGEMENT",S.Chand &Company Pvt Ltd, 2008.

 Preethi Singh, "INVESTMENT MANAGEMENT" Himalaya Publishing Pvt Ltd,2006
 V.A.Avadhani "SECURITY ANALYSIS AND PORTFOLIO MANAGEMENT"
Himalaya Publishing Pvt Ltd,2000
JOURNALS:

 International Journal of Economics&Management Science. Volume 4 Issue

7(2015)
 Online trading, issue: 1, volume 43 1st jan 2016.
 The Theory Of Planned Behavior And Internet Purchasing", Internet
Research,Vol. 14 Iss 3 Pp.
 The Hindu Business Review December,11,1996,P.25
 Ensuring Investors Care Volume 4 Issue 7,1996
NEWSPAPERS:

 The Economics Times

 Deccan Chronicle
 The Hindu
WEBSITES:

 www.karvy.com
 www.bseindia.com
 www.sebi.com