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    Online Trading Essay (9952 words)

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    TOPIC- CUSTOMER PREFERENSE TOWORDS ONLINE SHARE TRADING WITH SPECIAL REFERENSE TO ANAND RATHI SECURITIES IN BHILAI DURG REGION INTRODUCTION ONLINE TRADING Today is world of technology. So, the person who adopt it, get the success. 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 directly trade in stock market. They trade any time at any place when the stock market is open. The cost of transaction is also reduce with time. The investors have a large range of option for the trading.

    It is a paperless transaction so it reduces the cost of company. There was a facility of live streaming quotes, which give exact price of share which prevailing in the market at that time. Discount online brokers allow you to trade via Internet at reduced rates. Some provide quality research, other don’t. Full service online brokerage is linked to existing brokerage. These brokers allow their client to place online orders with the option of talking/chatting to brokers if advice is needed. Brokerage rates here are higher. Online trading is still in its infancy stage in India.

    Online trading involves investment activity which takes place over the Internet and it does not require physical inclusion of the broker. An investor has to register with an online trading portal like ICICIdirect. com, motilaloswal. com and sharekhan. com and many companies like that and investor gets into an agreement with the firm to trade in different securities according to the terms and conditions given on the agreement. As the servers of the online trading portal are connected all the time to the stock exchanges and designated banks the order processing is done in real time and investors can also have updates on the trading.

    They can also check the status of their orders either through e-mail or through the interface that it cannot be accessed by a third party. Some options are usually given to users such as to link their bank account, Demat accounts and brokerage accounts into a single interface. A single window is also there for all exchanges and a single screen is there for the complete order routing mechanism. The hardware used comprises of Web and application servers, switches, routers, firewalls and security devices, and specialized appliances. There are two broad model inplay in the online brokrege space 1.

    Bank-backed firms 2. Entrepreneur-floated firms Bank-backed brokerages such as ICICIdirect and HDFC Securities have expanded on the basis of their brand name and the trust of investors in them. The integrated 3-in-1 accounts offered by these bank-backed brokerages help their parent bank by giving it accounts along with float income In second case i. e Entrepreneur-backed companies like Sharekhan, Indiabulls, Religare and Indiainfoline have expanded by offering customers a mix of online and offline accounts, higher margin finance amounts and lower brokerage rates.

    Though the bank based has performed better but the latter have not lagged too far behind. The reason why online trading has developed over conventional offline brokerage firms is that this conventional method struggled with unfavorable economies. Staff cost is just one example of it. As the markets opens for 330 minutes a day one dealer can at best execute 500 trades in a day while online company like ICICI direct executes 150,000-200,000 trades a day on the National Stock Exchange alone accounting for 3-4% of NSE trades of 5 million a day. It would require a large amount of dealers to service this demand.

    Besides the salary costs it would also demand huge expenses in real estate and support systems. Ex The offline model has got a downfall in the form of lower bandwidth and IT costs and the cost of bandwidth has fallen to one-eighth of what it was in 2000 giving online broking an advantage especially in the case of lower-volume retail investors. Today 30% of volumes on the NSE comes from this and it may go up to 50% in three-four years providing explosive growth for online broking in India To be a successful trading portal it will definitely depend on bouquet of services provided by it for an end-user.

    Most of the portals charge a small registration fee and brokerage based on various conditions but it’s important for the organization to keep focussed on customer-centric services and delivery models to actually enjoy the most attention Emmergence of online trading in india The Indian trader is being fancied by the democratized world of online trading or also known as e-broking. The regular and attractive advertisements in the print media and electronic media have added to this fancy world . But as we compare to the Western countries, in India online rading has not still grasped the market, but has done a veried amount of progress 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 structure and the existing companies are changing to this new format besides offline and other traditional forms of business. With only a mere share of 10% online trading a combined gross turnover of around Rs. 9000-10,000 crores handled by the BSE and NSE together there is a much greater scope for online trading.

    At present some of the dominant players in the online trading market of share market are 1. Sharekhan. com 2. Icicidirect. com 3. Unicon 4. 5paisa. com 5. Indiabulls 6. KotakSecurities 7. MotilalOswal 8. Geojit Securities 9. Angel Trade 10. RelianceMoney 11. Religare 12. Karvy 13. IL Earlier the share market was not safe enough to invest but some of the changes in the past ten years in the Indian share market have created the interest of trading in the shares by the people.

    Broadly we can classify three important factors which have contributed to the development of online trading in India- Firstly the major step was taken by the National Stock Exchange (NSE) in the year 1994 which allowed the electronic trading and seeing to this various other stock exchanges in India followed soon. This helped in making the fast . accurate and transparent transactions saving a lot of time then the traditional method of trading. The investors were also saved by the clutches of the fraud brokers at the times when the clients were not aware of the true prices of the shares.

    Secondly, in the year 1996 the dematerialization of the shares came (also known as DEMAT) which avoided the online presence of shares in an electronic form avoiding them from theft, pilferage or from other losses like counterfeiting and frauds regarding share transfer. The third reason was the rapid growth of computer education and learning of internet by the people. With the evolving of internet the online trading became a hit and the investors became confident in investing just with a click of a mouse. With the happening of such events the ratio of trading has improved a lot.

    As it takes less time people praise this technology for trading purposes. Some people who traded rarely now even trades 2-3 times every day as it provides edge of researching about companies on the internet. The number of small investors is increasing on the daily basis that trades on the internet. If a person invests or trades in equities, derivatives, commodities etc through the use Internet it is known as online trading enabling the investor to connect electronically to buy or sell stocks,derivatives etc with the other investors.

    This can be done with the help of online service providers like Sharekhan. com, ICICI Direct. com etc. A person can access a stockbroker’s website through an PC connected to Internet and can place his orders. The benefits are- * A person can see the latest market movement through streaming quotes. * Reduces time lag due to self-execution and instant confirmation. * Empowers traders to have a complete control over their trading decisions. * A person can access his accounts and related information on the Website. Provides greater convenience of trade as a person can trade from home or other convenient location. * It is cheap in terms of cost associated and offers reduction in overheads * A trader can view the historical charts on his computer. The Internet revolution has changed the way to communicate and the way to do business in today’s society bringing us closer and closer to vital sources of information. It provides us with means to directly interact with service-oriented computer systems tailored to our specific needs; therefore we can serve ourselves better by making our own decisions.

    This new access by the online trading customers to low-cost transactions and cutting-edge, real- time market information that formerly belonged only to brokers has opened up extraordinary new investment opportunities as well as a crucial need for state-of-the-art information Today the investors use the Internet Client-Server technology to buy and sell the securities at an instant at any point of time. People investing online have reached the proportions. Online trading follows an investor to buy and sell shares on the exchange through Internet and helps in the direct control of his investments ONLINE TRADING IN INDIA

    Online trading started in India in February 2000 when a couple of brokers started offering an online trading platform for their customers. In the past, investors had no option but to contact their broker to get real time access to market data. The Net brings data to the investor on line and net broking enables him to trade on a click. Now information has become easily accessible to both retail as well as big investors. The development of broking in India can be categorized in 3 phases: * Stock brokers offering on their sites features such as live portfolio manager, live quotes, market research and news to attract more investors. * Brokers (now e-brokers) will offer value management or services such as initial public offerings on line, asset allocation, portfolio management, financial planning, and tax planning, insurance services and enable the investors to take better and well-considered decisions. * Brokers offering on line broking and relationship management by providing and offering analysis and information to investors during broking and non-broking hours based on their profile and needs, that is, customized services. DEMATERIALISATION OF SHARES The term Demat, in India, refers to a dematerialised account.

    For individual Indian citizens to trade in listed stocks or debentures. The Securities Exchange Board of India (SEBI) requires the investor to maintain a Demat account. Dematerialization is the process wherein shares certificates or other securities held in physical form are converted into electronic form and credited to demat account of an investor opened with a depository participant A Demat Account is opened by the investor while registering with an investment broker (or sub broker). The Demat account number which is quoted for all transactions to enable electronic settlements of trades to take place..

    SEBI has made compulsory trading of shares of all the companies listed in stock exchanges in demat form with effect from 2nd January 2002. The procedure of opening a demat account with DP is similar to opening an account with a bank. Advantages of Demat 1. The demat account reduces brokerage charges. 2. Demat makes pledging/hypothecation of shares easier. 3. Demat enables quick ownership of securities on settlement resulting in increased liquidity. 4. It provides easy receipt of public issue allotments. 5. It helps avoids confusion in the ownership title of securities. 6. It also helps you avoid bad deliveries caused by signature mismatch. . It also help in avoiding postal delays and loss of certificates in transit. 8. It eliminates risks associated with forgery, counterfeiting and loss due to fire, theft or mutilation. 9. Demat account holders can also avoid stamp duty (as against 0. 5 per cent payable on physical shares. Disadvantages of Demat 1. Trading in securities may become uncontrolled in case of dematerialized securities. 2. It is incumbent upon the capital market regulator to keep a close watch on the trading in dematerialized securities and see to it that trading does not act as a detriment to investors. . The role of key market players in case of dematerialized securities, such as stock-brokers, needs to be supervised as they have the capability of manipulating the market. 4. Multiple regulatory frameworks have to be confirmed to, including the Depositories Act, Regulations and the various By-Laws of various depositories. 5. Additionally, agreements are entered at various levels in the process of dematerialization. These may cause anxiety to the investor desirous of simplicity in terms of transactions in dematerialized securities.

    However, the advantages of dematerialization outweigh its disadvantages and the changes ushered in by SEBI and the Central Government in terms of compulsory dematerialization of securities is important for developing the securities market to a degree of advancement. Freely traded securities are an essential component of such an advanced market and dematerialization addresses such issues and is a step towards the advancement of the market. DEPOSITORY SYSTEM Depository is an organization which holds of the securities of the investors in the electronic form same as bank hold money.

    Further, depository transfer securities with out physical handling. Now a days most of the bank are also DPs so any one can contact to DP with their identity proof and pan card for opening demat account for a prescribe fee by the DP. Depository offers various services to the investors through its depository participants such as maintenance of investors beneficial holding in electronic form ,dematerialization and rematerialisation of securities ,facilitation of settlement of trade in electronic form and electronic trading in case of IPO and corporate action such as rights, bonus.

    TWO TYPES OF DEPOSITORIES * National securities depositories Ltd. ( NSDL) * Central depository services (INDIA)Ltd. (CDSL) NSDL was the first depository organisation promoted by UTI,IDBI AND NSE. Nsdl was set up to provide electronis depository facilities for securities being traded in capital market . the depository oridence was promulgated by the government of indiain September ,1995 The SEBI issued a guidelines for depositories in May, 1996, The bill was passed by the parliament in July 1996, where as NSDL was registered by SEBI on June 7,1996.

    NSDL has minimum net worth of Rs. 100crore . NSDL deals with shares in dematerialized form with DPs who are agent of investors bankers stock banks and financial institution DPs can be a public financial institution , bank, custodian, registered stock broker or no banking financial companies subject to the approval from the depository companies and the SEBI. As per RBI guideline, institutional investors/bank having a minimum portfolio of securities of RS 10crore have to settle all transaction through depositories.

    DPs participants has to pay a admission fees of Rs. 25000 to NSDL and deposit Rs 10lakh as a security with NSDL. CDSL CDSL commenced its operation during February, 1999. It was promoted by Bombay stock exchange in association with leading banks such as SBI Bank Of India, Bank Of Baroda , HDFC Bank, Standard Charted Bank , Union Bank Of India And Centurion Bank CDSL was set up with the objective of providing convenient, dependable and secure depository services at affordable cost to all market participants . ll leading stock exchanges like the NSE, Calcutta stock exchange, Delhi stock exchange, Ahmadabad stock exchange etc. Have established connectivity with CDSL. As at the end of March 2002 over 4,300 issuer have their securities (equity, bond, debenture commercial papers), units of mutual fund, certificate of deposits etc. in to the CDSL system . thus an investors can hold almost all his securities in one account with CDSL . REMATERILISATION OF SHARES Rematerialization is the process of conversion of electronic holdings of securities into physical certificate form.

    For rematerilisation of scrips, the investor has to fill up a remat request form (RRF) and submit it to the DP. The DP forwards the request to depository after verifying the investor’s balances. Depository in turn initiates the registrars and transfer agent or the issuer company. RTA/ Company prints the certificates and dispatches the same to the investor. OBJECTIVES OF PROJECT REPORT https://tin. tin. nsdl. com/pan/index. html * To understand the attitude of the on-line share traders in Durg-Bhilai city . To measure the effectiveness of broking sites in Durg-Bhilai. * To conduct an enquiry among the share trading public in Durg-Bhilai about their experience with broking sites. * To suggest some improvements in these sites if needed. * To understand the depth up to which the on-line share traders are clear and aware of on-line share trading. * To know the procedure of online trading Anand Rathi set up in 1994, is one of India’s fastest growing full-service securities firm with a presence in more than 300 locations across India and has offices in Dubai & Bangkok.

    Anand Rathi provides wealth management services, investment banking, and brokerage & distribution services in the areas of equities, commodities, mutual funds and insurance. The group caters to the financial needs of diversified group of clients, which include the well-reputed Corporate Groups, Institutions, Foreign Investors, Individuals as well as wealthy families and was recently ranked by an Asia Money 2006 poll amongst South Asia’s top 5 wealth managers for the ultra rich. Anand Rathi today has a pan India presence as well as an international presence through offices in Dubai and Bangkok.

    Anand Rathi provides a breadth of financial and advisory services including wealth management, investment banking, corporate advisory, brokerage & distribution of equities, commodities, mutual funds and insurance – all of which are supported by powerful research teams. The firm’s philosophy is entirely client centric, with a clear focus on providing long term value addition to clients, while maintaining the highest standards of excellence, ethics and professionalism. The entire firm activities are divided across distinct client groups: Individuals, Private Clients, Corporates and Institutions.

    In year 2007 Citigroup Venture Capital International joined the group as a financial partner and 19. 9% stake held by Citigroup Venture Capital International (CVC) THE VISION TEAM Anand Rathi | Founder & Chairman Pradeep Gupta | Co-founder & Vice chairman Amit Rathi | Managing Director P G Kak odkar | Director Dr. S A Dave | Director C D Arha | Director

    Ajit Bhushan | Director SERVICES’ PROFILE OF “Anand WEALTH MANAGEMENT Centers located Chennai, Bangalore, Hyderabad, Dubai, Bangkok and Singapore. Dealing with: * INSTITUTIONS * PRIVATE CLIENTS * PRIORITY CLIENTS * NON RESIDENT CLIENTS INVESTMENT BANKING AND CORPORATE FINANCE Centers located at Mumbai, Delhi, Chennai, Kolkata, Bangalore, Hyderabad and Ahmadabad dealings in: * Equity Capital Market – IPOs / FPO Real estate/ Private Equity / Advisory * M * Debt Raising, Syndication and Restructuring BROKERAGE AND DISTRIBUTION Present at 400 locations across India Dealings in: * EQUITIES * ? DERIVATIVES * BONDS * MUTUAL FUNDS * COMMODITIES * ? LIFE AND GENERAL INSURANCE AWARDS AND ACCOLADES * Ranked #1 Pvt bank Domestic and # 2 Private Bank –Overall by Asiamoney polls 2009. * They are consistently amongst the top 3 brokers in commodity and currency segments on MCX, NSE and MCX-SX. * They are amongst the top 10 brokers on DGCX. First to introdu ce structured products in commodities. MAIN CUSTOMERS OF “Anand Rathi” * INDUSTRIAL GROUPS * ? BIRLA’s – Birla Sunlife Insurance, Grasim Industries, Hindalco, Indal, Indian Rayon, Indo Gulf, Transworks * VENDATA’s – Balco Industries, Hindustan Zinc Limited, Sterlite Industries, Vendata * TATA’s – Tata Investments, Tata Steel, Tata Motors Limited, Videsh Sanchar Nigam Limited * MULTINATIONALS – Bayer, Clariant, Godfrey Philips, Goodlass Nerolac, Hindustan Lever Limited, Nestle, Thomas Cook Travels and many more BANKS – Andhra Bank, Bank of India, Bank of Baroda, Canara Bank, HDFC Bank, General and Life Insurance Corp, Punjab National Bank and many more * 12 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, Indian Tobacco Company, Jet Airways, Jindal Steel, Larsen & Tubro, Mahindra & Mahindra, Radico Khaitan, Raymonds, Wipro, Varun Shipping and many more. AR Core Strengths Client-centric philosophy, with focus on providing long term value addition to clients, maintaining highest standards of excellence, ethics and professionalism * We always strive to develop strong relationships with our clients nurtured by personal attention of senior management * We approach our clients holistically with the goal of balancing their strategic and financial objectives * Proficiency in rendering consistent high quality value added services * A senior product team of retail specialists who provide hands on support to Personal Investment Advisors for all products Why Anand Rathi? Both domestic and International platform * Dedicated Corporate Setup * Regional penetration * Research capability * Offering tailor made solutions for specific exposure COMPETITORS OF Anand Rathi REMOTE COMPETITORS INDIAN BANKS:- * Kotak Bank * Housing Development and Finance Corporation Bank * Industrial Credit and Investment Corporation of India Bank * State Bank of India * 13 Bank of Baroda * Canara Bank * ING Vysya INDIAN ASSET MANAGEMENT COMPANIES * Cholamandalam * Lotus India * Principal * Optimix * Sahara FOREIGN BANKS and ASSET MANAGEMENT COMPANIES * ABN Amro Bank * Deustche Bank Hongkong Shanghai Bank Corporation * Franklin Templeton * DSP Merill Lynch * BNP Paribas * Quantum IMMEDIATE COMPETITORS RELIGARE ENTERPRISES 14 Religare Enterprises Limited group comprises of Religare Securities Limited, Religare Commodities . Limited and Religare Finvest Limited which deals in equity, commodity and financial services business. Religare Securities Limited is one of the leading broking houses of India and is dealing into Equity Broking, Depository Services, Portfolio Management Services, Institutional Equity Brokerage & Research, Investment Banking and Corporate Finance.

    Religare is a member of National Comodities Index and Multi Commodities Exchange and provides platform for trading in commodities, which is an online facility also. Religare Finvest Limited, a Non Banking Finance Company is aggressively making a name in the financial services arena in India. In a fast paced, constantly changing dynamic business environment, Religare Finvest Limited has delivered the most competitive products and services. Religare Insurance Broking Limited as a composite insurance broker deals in both insurance and reinsurance, providing our clients risk transfer solutions on life and non-life sides.

    This service will take benefit of Religare’s vast business empire spread throughout the country, providing their valued clients insurance services across India. KARVY Karvy is a premier integrated financial services provider, and ranked among the top five in the country in all its business segments, services over 16 million individual investors in various capacities, and provides investor services to over 300 corporate, comprising the who is who of Corporate India.

    Karvy covers the entire spectrum of financial services such as Stock broking, Depository Participants, Distribution of financial products like mutual funds, bonds, fixed deposit, equities, Insurance Broking, Commodities Broking, Personal Finance Advisory Services, Merchant Banking & Corporate Finance, placement of equity, Initial Public Offers, among others. Karvy has a professional management team and ranks among the best in technology, operations and research of various industrial segments. JM MORGAN STANLEY Mr. C. J. George and Mr.

    Ranajit Kanjilal founded Geojit as a partnership firm in the year 1987. In 1993, Mr. Ranajit Kanjilal retired from the firm and Geojit became a proprietary concern of Mr. C . J. George. In 1994, it became a Public Limited Company by the name Geojit Securities Ltd. The Kerala State Industrial Development Corporation Ltd. , in 1995, became a co-promoter of Geojit by acquiring 24% stake in the company, the only instance in India of a government entity participating in the equity of a stock broking company. Geojit listed at Bombay Stock Exchange in the year 2000.

    In 2003, the Company was renamed as Geojit Financial Services Ltd. The board of the company consists of professional directors; including a Kerala government nominee with 2/3rd of the board members being Independent Directors. With effect from July 2005, the company is also listed at The National Stock . Exchange. Geojit is a charter member of the Financial Planning Standards Board of India and is one of the largest DP brokers in the country. INDIA BULLS Indiabulls is India’s leading Financial Services and Real Estate Company having over 640 branches all over India.

    Indiabulls serves the financial needs of more than 4,50,000 customers with its wide range of financial services and products from securities, derivatives trading, depositary services, research & advisory services, consumer secured & unsecured credit, loan against shares and mortgage & housing finance. With around 4000 Relationship Managers, Indiabulls helps its clients to satisfy their customized financial goals. Indiabulls through its group companies has entered Indian Real Estate business in 2005. It is currently evaluating several large-scale projects worth several hundred million dollars 2. RESEARCH METHODOLOGY . 1Research Research is often described as an active, diligent, and systematic process of inquiry aimed at discovering, interpreting, and revising facts. This intellectual investigation produces a greater knowledge of events, behaviors, theories, and laws and makes practical applications possible. The term research is also used to describe a entire collection of information about a particular subject, and is usually associated with the output of scince and the scientific method. R= REQUIREMENT E= ESTIMATION S= SEARCHING E= ENQUIRY A=ALLOCATION R=RAW DATA C=CREATIVITY H= HELPFUL FOR SOCIETY WELEFARE

    Research is an academic activity and as such the term should be used in a technical sense. According to Clifford Woody research comprises defining & redefining problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, making deductions and reaching conclusions, and at last carefully testing he conclusions to determine whether they fit the formulating hypothesis. Research is thus an original contribution to the existing stock of knowledge making for its advancement . It is the pursuit of truth with the help of study, observation, comparisons and experiment.

    In short the search for knowledge through objective and systematic method of finding solution to a problem is research. The systematic approach concerning generalization and formulation of a theory is also research. Importance of Research Any research made by an individual person needs whole consideration of his mind on the topic so that he can work his best on that project. Research work includes all the work from the site selecting balance sheet and each letter has its own significance. Research is done by any person to go deep of any subject to know the existence of it.

    In this research report whose topic is “Investment Exposure Through Reliance Money in Equity and its Services ” . 2. 2 SOURCE OF DATA Source of data is classified in to two categories: 1. Primary data 2. Secondary data 2. 2. 1 PRIMARY DATA Primary data do not exist in records and publication. The researcher has to gather primary data a fresh for the specific study under taken by him. Market researchers are interested in primary data about demographic/ socio economic characteristics, attitude/ opinions/ interests, motivation and behavior. Three basic means of primary data: 1. Observation . Survey 3. Experiment 2. 2. 2 SECONDARY DATA The data referred to those, which gathered for some other purpose and are already available in the firm initial records and commercial, trade or government publications are secondary data. Sources of secondary data: 1. Published of secondary data. 2. Government publication. 3. Specialized libraries 4. General library research sources 2. 3SAMPLE SIZE: I used 100 respondents for my project report. 2. 4 METHOD OF DATA COLLECTION: For getting the results of my research I used method which is questionnaire method that is under primary data.

    A questionnaire (also known as self-administered survey) is a type of statistical survey handed out in paper form usually to a specific demographic to gather information in order to provide better service or goods. The questionnaire was invented by Sir Francis Galton.. * Questionnaires have advantages over some other types of surveys in that they are cheap, do not require as much effort from the questioner as verbal or telephone surveys, and often have standardized answers that make it simple to compile data. However, such standardized answers may frustrate users.

    Questionnaires are also sharply limited by the fact that respondents must be able to read the questions and respond to them. Thus, for some demographic groups conducting a survey by questionnaire may not be practical. * A questionnaire consist of many types of questions, like direct question, indirect question, open-ended question ( free answer question ), close ended question. In this report open and close-ended questions are used. The method was discussed questioning. Each person was asked a set of question in given order and answer is limited to a list of alternative.

    The studies are descriptive in nature. It is connected to study the present state of affair as it exist. The open study tries to explore the system at present and report on it. Why questionnaire methods has been adopted 1. Ideas related to the problem and its solution can be find by asking the people involved in various industries. 2. Knowledge, opinions, and intention of people involved can be easily founded. 3. It is usually faster and cheaper than other methods. 4. It involves control over the data gathering activities as compare to other method. 5.

    It is versatile LITERATURE REVIEW This chapter presents a review of research works pertaining to online trading and related investors behaviour. The research works reviewed here have been sourced from various journals, web sites and reviews provided in previous research works. As we know that every technology has certain advantages and certain disadvantages. Like wise online trading has also some drawbacks and we try to find out what type of problem an online stock trader face. A variety of work and study has already been conducted by various scholars in this field.

    Keeping in view the specific objectives of the present study, the review of the earlier studies have been performed as follow. Some of the studies bearing relevance with the present research proposal are reviewed as follows: Lau, Yen and Chau(2001) conduct a research to know what are the factor which affect on adoption of online stock trading in Hong Kong. This paper focuses on the social/organizational perspective by using a research model based on the Decomposed Version Theory of Planed Behavior (DTPB) to identify the factors that affect investors’ adoption of on-line trading.

    A correlation analysis has been performed to investigate whether the hypothesized attributes, variables, and belief structure are correlated with each other. After such analysis, the factors that influence the adoption of the proposed system have been identified, as well as the relationships between the factors. The results of the analysis indicate that regarding the hypothesized model, there is strong statistical significance that Perceived Usefulness, Perceived Ease of Use, and Compatibility significantly affect Attitude towards using the proposed system.

    ODEAN (SEPT 1999) Conducted a survey to know the change in stock trading behavior and investment performance of 1607 investors who switched from phone based to online trading during the period of 1991 to 1996. then he compare their trading and performance with the similar size of people who do not trade online and the result he find is that those who switch to online trading are experience unusually strong performance prior to going online, beating the market by more than 2 % annually. After going online, they trade more actively, more speculatively and less profitably than before—lagging the market by more than three percent.

    Mathews (2001) conducted a survey on Benefits, Costs and Limitations of Online Investing to the Individual Investor The online approach of conducting commerce has gained more and more acceptance from consumers and suppliers alike. Online Brokerages, when they first came into the scene, attacked mass markets with unbelievable ease, speed and success that it took conventional brokerages like Merrill Lynch, by surprise. In time, conventional brokerages having learnt the advantages of the Internet have moved to create an online presence for themselves.

    Online trades are accounting for consecutively larger percentages of total retail trades on established exchanges like the NASDAQ and the NYSE, since its inception. Just as any application in business, online investing has its fair share of not only benefits but also costs and limitations too. The purpose of this article is to enlighten the reader on the above-mentioned aspects of online investing and aid a potential investor to reflect on these aspects before carrying out trades over the Internet.

    WALIA, KUMAR (2007) Conducted a research to know what is the current scenario of online stock market in India. Facts highlighted in this study clearly reveal that although online trading is picking up its speed to tap investors 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 Based on investment behavior and innovation diffusion theories, intention to adopt online trading was investigated using 2000-01 Macro Monitor data. The impacts of the following eterminants were examined: investment-related factors (type of brokerage accounts and trading frequency and volume); psychological factors (confidence, investment risk preference, price sensitivity, attitudes toward human interaction, and investment decision making style); technology-related issues (familiarity with online shopping and banking); and demographics. Investors who are younger and more willing to take investment risk intend to adopt online trading, whereas investors who value human interaction and those with full brokerage accounts do not have an intention to adopt.

    Sandhu and Singh (2005) Conducted a study to know the problems faced by the adopters of online traders while trading online as also identify the reasons for not using net based trading. Also they try to find out what are the future prospects of online stock trading in India. This study is based on primary data of 299 investors comprising 149 adopters and 150 non- adopters. The result reveals that the inability to access broker’s website and lacks of personal touch are perceived as major problems by adopters. It was also found that high structural cost, risk of system and component failure etc are some of the problems faced by the investors.

    HISTORY OF EXCHANGE The first stock exchange in India, Bombay stock Exchange (BSE) was established in 1875 as ‘The Native Share and Association’ and has evolved over the years into its present status as the premier stock exchange in the country. It may be noted that BSE is the oldest stock exchange in Asia, even older than the Tokyo stock Exchange, which was founded in 1878. The country’s second stock exchange was established in Ahmedabad in 1894, followed by the Calcutta stock Exchange (CSE). CSE can also trace its origin back to 19th century.

    From a get together under a ‘NEEM TREE’ way back in the 1830s, the CSE was formally established in May 1908. Traditionally In stock Market, the investors invest their money in shares under the guidance of the Brokers of any stock broking company. This is convenient to those investors who are not familiar with the computer and the use of internet. But it requires more dealers to the share broking companies to give guidance related to investment. There was a chance of inaccuracy of price because it is a time consuming process. The cost of the company also increases due to more paperwork.

    The investor point of view, there was a problem of privacy. The information of investor may leak by the broker. So, to remove these limitations of traditional broking, there was an emergence of new concept e-Broking. Stock exchange is a place where securities are bought and sold. Stock exchanges are exposed to high degree of volatility, price fluctuations and it is driven by the demand supply of stocks. Stock Brokers are the authorized person who is allowed to buy and sell stocks on behalf of individuals and institutions and the authority is granted by SEBI. PROCEDURE FOR ONLINE TRADING

    An investor interested in trading through Internet shall have to, firstly register himself with an Internet brokerage firm. Some formalities such as filling the account opening form of the e-broker, copies of identity proof, copy of residence proof are made to register himself with the e-trader. Secondly, the investor would be required to open a bank account with a scheduled bank and sufficient balance should be kept in the account. Thirdly he would be required to open account with a depository participant because only dematerialized shares can be traded on Internet.

    The client places order via the net by logging in to his account The broker accepts and executes the order and places it with the exchange The exchange accepts the order after checking the share limit for the day The broker makes the payment either directly via the client bank account or pays through its own account and recovers it later from the client The exchange receives money and completes the settlement The client is intimated about the settlement either through the demat or via e-mail. So, generally following steps are followed while doing the trading through the Internet: Step-1: Those investors interested in doing the trading over internet system, that is, NEAT- ISX, should approach the brokers and register with the Stock Broker. * Step-2: After registration, the broker will provide to them a login name, password and a personal identification number (PIN). * Step-3: Actual placement of an order. An order can then be placed by using the place order window as under: * First by entering the symbol and series of stock and other parameters such as quantity and price of the scrip on the place order window. Second, fill in the symbol, series and the default quantity. * Step-4: Thus, the investor has to review the order placed by clicking the review option. He may also re-set to clear the values. * Step-5: After the review has been satisfactory; the order has to be sent by clicking on the send option. * Step-6: The investor will receive an “Order Confirmation” message along with the order number and the value of the order. * Step-7: In case the order is rejected by the Broker or the Stock Exchange for certain reasons such as invalid price limit, an appropriate message will appear at the bottom of the screen.

    At present, a time lag of about ten seconds is there in executing the trade. * Step-8: It is regarding charging payment, for which there are different modes. Some brokers will take some advance payment from the investors and will fix their trading limits. When the trade is executed, the broker will ask the investor for transfer of funds by the investor to his account. FACTORS TO KEEP IN MIND WHILE SELECTING ONLINE BROKERS * Brokerage cost: It is important to weigh up the subscription and trading costs charged by an online broker against benefits offered by the site.

    All online brokers display their charges on their sites. Some make sure you find the charges easily, while with others you will have to search a bit. In anand rathi financial services brokerage cost is 60paisa for online broking * Software installation charges: Usually all broking firm charges same for software but some have a bit differences because of compotition and to get open more account to earn profit. Anand rathi charges reasneble prices in order to satisfy customers * Safety: Please make sure site has 128-bit encryption to ensure safety of transaction online. ICICIDirect. com, 5paisa. om are few sites with 128-bit encryption. You normally get a secured Login id and password. It is always advisable to frequently change trading password. Ideally online trading site should be fully integrated. The greater the backward integration, the better it is for the customer. Ideally broking account, demat account and bank account should be linked electronically. * Rate refresh: Rate refresh has to be real-time with no time lag. The speed and reliability comes with huge investment in technology. It is always advisable to check rates of online broking sites with BSE/ NSE terminal rates. Speed of execution: System has to be fast and reliable that does just one job- executes your trades. The last thing you need is a site that is heavily congested with the users who are downloading heavy jpeg graphs or pulling the latest story why market is moving. The site should be one click wonder where squaring off all your positions or canceling all your pending orders takes one click and a confirmation of action. * Trading limit: For trading, all sites provide 4 times buy and sell limit against margin money put in by customer.

    For delivery of shares, buying limit is equal to margin money put in by customer. Couple of sites also provides margin funding for buying of shares. * Free trial period: Site should allow users free trial period to familiarize yourself with system before you decide to become trading member of the site. * Intraday chart/ historical chart: The site should provide intraday chart tick by tick time and price data / historical chart for technical analysis by investors of particular scrip. Lot of people trade based on charting packages. THE MECHANICS OF ONLINE TRADING CLIENT BROKER STOCK EXCHANGE

    Places an order on the net on the broker’s website through the distinctive I. D. code Accepts the order, Checks the client’s Identity and places the order with the stock exchange Accepts the order after checking the scrip limit of the broker for the day Executes the order The settlement of the deal (buy/sell order) gets reflected in his Demat account. The client is intimated about the execution of the deal by e-mail. Pays the broker pending physical delivery. Pays the Exchange though his owns account and receives it from the client account. Receives the money and completes the settlement

    Rolling Settlement Cycle in a rolling settlement, each trading day is considered as a trading period and trades executed during the day are settled based on the net obligations for the day. At NSE and BSE, trades in rolling settlement are settled on a T+2 basis i. e. on the 2nd working day. For arriving at the settlement day all intervening holidays, which include bank holidays, NSE/BSE holidays, Saturdays and Sundays are excluded. Typically trades taking place on Monday are settled on Wednesday, Tuesday’s trades settled on Thursday and so on. Concept Of Buying Limit

    Suppose you have sold some shares on NSE and are trying to figure out that if you can use the money to buy shares on NSE in a different settlement cycle or say on BSE. To simplify things for ICICI Direct customers, we have introduced the concept of Buying Limit (BL). Buying Limit simply tells the customer what is his limit for a given settlement for the desired exchange. Assume that you have enrolled for a ICICI Direct account, which requires 100% of the money required to fund the purchase, be available. Suppose you have Rs 1,00,000 in your Bank A/C and you set aside Rs 50,000 for which you would like to make some purchase.

    Your Buying Limit is Rs 50,000. Assume that you sell shares worth Rs 1,00,000 on the NSE on Monday. The BL therefore for the NSE at that point of time goes upto Rs 1,50,000. This means you can buy shares upto Rs 1,50,000 on NSE or BSE. If you buy shares worth Rs 75,000 on Tuesday on NSE your BL will naturally reduce to Rs75,000. Hence your BL is simply the amount set aside by you from your bank account and the amount realized from the sale of any shares you have made less any purchases you have made. Your BL of Rs 50,000, which is the amount set aside by you from your Bank account for purchase is available for BSE and NSE.

    As you have made the sale of shares on NSE for Rs. 100000, the BL for NSE & BSE rises to 1,50,000. The amount from sale of shares in NSE will also be available for purchase on BSE. ICICI Direct SUCCESS FACTORS FOR ONLINE TRADING There are three key success factors for e-broking, (i) Scalability and robustness of the trading system: The fundamental difference between the Internet as a transaction medium and the conventional closed user group network is that the Net is a universal platform providing concurrent access to infinite users at any given point in time.

    Consequently, it becomes imperative for any Net-based application to have a proven capability for scalability and robustness which ensures the ability to handle and process requests from multiple users at any given point in time. (ii) Bandwidth optimization: In the Indian context where availability of a sufficient bandwidth is limited, the application software should demonstrate intelligence in optimizing the available bandwidth by deploying advanced technologies such as streaming. (iii) Integration with third party systems:

    On the Net, with information feeds available from multiple points, it is prudent to deploy applications that are built on open architecture methodology for interfacing with third party systems in the new Net age. CHALLENGES IN INTERNET TRADING For Internet trading to succeed, it is imperative to have both – 1. A robust business model and 2. Comprehensive technology strategy. Some of the challenges are discussed: Transaction fulfillment–In the Net-based economy, it is both prudent and essential for a broker/intermediary to offer total solution to the clients at a single point.

    Total solutions would essentially mean offering interfaces with banks, depositories, information feeds, etc. for efficiency in trade completion and reducing duplication of client information. The service providers will have to go beyond the stage of mere order execution and emerge as “informediaries” rather than “intermediaries”. This will not only ensure lower trading costs in terms of offering cross services but will also help in maximizing ROIs. A true Internet trading system should deliver cost effective transaction fulfillment at a single point.

    System Requirements For online trading client computer should have at least the following configuration: * Pentium 3 PC, Minimum 128 MB RAM * Windows 2000/XP * Internet Connection * Internet Explorer 6. 0 * Java enabled in IE * VM java(Download) FUTURE OF INTERNET TRADING International marketplaces are already witnessing re-alignments and changes with the emergence of electronic communication networks (ECNs) such as INSTINET and ISLAND, which are already contributing substantial business volumes to mainline exchanges such as NASDAQ and the NYSE.

    Concurrently, exchanges worldwide are looking at striking strategic alliances such as the Global Equity Market (GEM). With Net trading in securities and rapid consolidation between multiple stock exchanges, the international securities marketplace is fast becoming a “global village” through the creation of a universal virtual equity market. Therefore the challenge for the technology providers is to develop and deploy advanced e-trading tools and applications using electronic straight through processing technologies.

    OFFLINE TRADING Nevertheless, with all the convenience of online trading there are still investors who prefer the old fashion way of offline trading. Offline trading has lost some popularity but it is still the main form of investing. Offline trading offers many benefits as well. Benefits of offline trading: 1. The one benefit that an investor appreciates the most is that they are not alone when making investment decisions. 2. There are experienced and professional brokerage companies that handle their investments for them. 3.

    Investors are not faced with the challenge of making these vital investment decisions; especially, if they do not have the experience necessary to make the appropriate investments. 4. Also, there is someone there to answer any questions that may cause concerns. Not to mention, with offline trading mistakes are less likely to take place. No one wants to throw their money away or stand by and watch someone else throw their money away. It may be wise to hire a professional to assist you in making the correct investment decisions if you feel you lack the knowledge necessary.

    Points of difference between online trading and ofline trading are as follows: 1. Online trading is very expensive as compare to manual trading or offline trading. 2. Online trading consumes less time as compare to manual trading. 3. Online trading has very helpful to finding the records easily but offline trading takes more time to finding the records. 4. In the help of online trading, there is no chance of any errors while doing the trading. in offline trading there are some errors exist like barriers of communication . . With the help of online trading, we know the international market rate of share very easily. ONLINE TRADING INFRASTRUCTURE The emergence of online exchanges has facilitated faster transactions by providing online trading portals and brokerage houses ease and flexibility. The Internet has indeed opened up new opportunities for conducting the business. The worldwide stock exchanges has made a major shift from the traditional method of trading and now conduct a bulk of its business online through its brokers and partners.

    In the developed countries majorly all the exchange transactions are conducted online. The trend took off slowly in India and the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE) two of the largest exchanges in India have been conducting online trading for some times ONLINE TRADING BY NSE & BSE The central computer located at the Exchange is connected to the workstations of the Brokers through satellite using Very Small Aperture Terminals (VSATs). Orders placed at the Brokers’ workstations reach the central computer and are matched by the computer based on price and time priority.

    Both the exchanges have switched over from the open outcry trading system to a fully automated computerized mode of trading known as BOLT (BSE On Line Trading) and NEAT (National Exchange Automated Trading) System. It facilitates more efficient processing, automatic order matching, faster execution of trades and transparency. The scrips traded on the BSE have been classified into ‘A’, ‘B1’, ‘B2’, ‘C’, ‘F’ and ‘Z’ groups. The ‘A’ group shares represent those, which are in the carry forward system (Badla). The ‘F’ group represents the debt market (fixed income securities) segment.

    The ‘Z’ group scrips are the blacklisted companies. The ‘C’ group covers the odd lot securities in ‘A’, ‘B1’ & ‘B2’ groups and Rights renunciations. Key regulator governing Stock Exchanges, Brokers, Depositories, Depository participants, Mutual Funds, FIIs and other participants in Indian secondary and primary market is the Securities and Exchange Board of India (SEBI) Ltd. 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 have a very large nationwide network.

    The trading volume in year 2000 was huge with the average daily turnover in the capital markets segment at NSE is around Rs 2300 crore and in the derivatives segment, around Rs 1300 crore. The market has grown in scope and scale in a way that could not have been imagined at the time. Average daily trading volumes have jumped from Rs. 17 crore in 1994-95 when NSE started its Cash Market segment to Rs. 11,325 crore in 2008-09. Similarly, market capitalization of listed Indian firms went up from Rs. 363,350 crore at the end of March1995 to Rs. ,896,194 crore at end March 2009. Indian equity markets are today amongthe most deep and vibrant markets in the world. The average daily traffic volume was around one million trades per day in the capital markets segment and around 50,000 trades per day in the derivatives segment and there were around 13,000 registered users in both segments and an average of around 9500 users is logged in at a time. At BSE the average daily turnover in 2001-2002 (April-March) was Rs 1244. 10 crore and the number of average daily trade was 5. 17 lakh.

    WHY ONLINE TRADING ENTERED LATE IN INDIA The Indian exchanges and brokering houses have been very slow in moving their transactions online and the major reason has been the lot government regulations. The initial delay was due to laying down the specifications for creating Closed User Groups (CUGs). This issue was resolved between the Department of Telecommunications (DoT) and the Finance Ministry around 1998 and after that soon came the online trading portals like ICICIDirect. com, motilaloswal. com, sharekhan. com and smartjones. com.

    Connectivity related issue was perhaps the most important technological factor. Traditionally the cost of leased lines and VSAT links has been very high and the reliability of the links was very low. To commission the links it took a long time as one had to make an application and wait for a few weeks for the link to be up and running. Many other issues like security, backup and recovery procedural costs also acted as deterrents in the process. Now with the resolution of regulatory issues India no longer have any pressing connectivity and bandwidth issues.

    The entry of private players into the broadband scenario and the government opening up the telecom sector these issues have become almost non-existent. Security solutions and services available in the market have matured and it doesn’t cost a pretty packet anymore to put a simple back up solution inplace Through online trading everyday large volumes of data is being transacted. At BSE the average daily turnover in 2001-2002 (April-March) was Rs 1244. 10 crore and the number of averagedaily trades was Rs 5. 17 lakh.

    To control Online Trading RBI made regulations making it mandatory for companies to store at least 7 years of transactional and financial data. 1. Design needs to be always-on, secure, redundant, and have adequate backup and recovery Processes. 2. For such high amounts of critical data it’s natural to deploy network-based storage like NAS or SAN. 3. Security is a vital and integral part of the design architecture. The hardware and software elements should be built around layered security architecture and should be held in place with a well-documented security policy. 4.

    Ideally online exchanges should have ‘five-nines’ availability. 5. It’s difficult to deploy out-of-the-box applications at exchanges as each has a unique architecture based on factors like operations flow, trading volumes, number of members, number of users, and number of locations. 6. NSE has deployed NIBIS (NSE’s Internet Based Information System) for real-time dissemination of trading information over the Internet and NEAT a client-server-based application to help its operations. 7. BSE has deployed an OnLine Trading system (BOLT) on a Tandem platform which has a two-tier architecture.

    It claims to be able to support up to 2 million trades a day THE NETWORK DESIGN Any online exchange should always be-on, safe, secure, redundant and should have adequate backup & recovery processes. The Vice President of NSE-IT G. M Shenoy tells that the basic design objective of NSE was to provide fair, equal and transparent access across all NSE nationwide locations and to provide connectivity to the trading members as soon as possible. The telecom sector is fairly liberal nowadays but way back in 1993 the technology was maturing and was very costly. The cost of lease lines was almost ten times as much as it is today.

    Satellite technology was a boon since it allowed quicker deployment than leased lines. Today NSE has the country’s largest VSAT network with over 3000 VSATs and expects to grow to more than 4000 V sats very soon NETWORK ELEMENTS When there are massive trading volumes and traffic bulk it makes one tensed even to think of the expected losses in case of a ten minute downtime when daily trade crosses Rs 3000 crore. Network elements like security, storage, backup and recovery processes, availability and other different applications are to be planned carefully and commissioned.

    Also the RBI regulations to store at least 7 years of transactional and financial data has to be followed and to store such high amounts of critical data it’s natural to deploy network-based storage like NAS or SAN. NSE is implementing a SAN as it feels that its data volumes have grown widely. Security is a vital and integral part of the design architecture and the hardware and software elements should be built with layered security architecture around and it should also be held in place with a well-documented security policy.

    According to Shenoy the security is the most crucial element in the network and at NSE all applications have been built with a conscious approach towards security. All the security policies are tightly integrated and regularly scrutinized thus not providing any room to compromise with Also all the applications and OSs are hardened time to time for safety The Backup and recovery has emerged as one of the most important and vital aspects of business continuity. When online exchanges were designed earlier a lot of emphasis was perhaps not placed on this aspect as it is done nowadays.

    However it’s not difficult to add continuity processes to a programme which is existing. Shenoy said that a terrestrial-based trading network was deployed as a backup to NSE VSAT network in the middle of 2000 and it have more than 850 leased lines connecting to different locations in India. NSE is the only stock exchange in the country which has a fully-redundant business continuity site in Chennai Availability: Ideally online exchanges should have ‘five-nines’ availability. Exchanges usually likes to host its infrastructure in-house and not use the services of an external or other data center.

    NSE claims to achieve uptime greater than 99. 9% which is mostly due to internally formulated procedures and continuous review of SLAs with hardware vendors Applications: It is tough to deploy out-of-the-box applications at exchanges as each has a unique architecture based on factors like operations flow, number of members, trading volumes number of users and number of locations. The applications like trading, surveillance, index computation,listing, membership, clearing, risk-management and accounts may be developed in-house or by external software developers. There are two popular types of architectures- . NSE architecture 2. BSE architecture These both exchanges keep on updating and upgrading their technology systems to keep delivering according to commitments and promises made to its members, partners and customer NEAT-THE NSE ARCHITECTURE NSE has deployed NIBIS (NSE’s Internet Based Information System) for real-time dissemination it of trading information over the Internet and NEAT a client-server-based application to help its operations. All the trading information is stored in NEAT an in-memory database at the server end for achieving minimum response time and maximum system availability for users.

    The trading server software runs on a fault-tolerant STRATUS mainframe and the client software runs on Windows PCs. The telecommunications network uses the X. 25 protocol and is the backbone of the automated trading system. Each trading member trades on the NSE with other members through a PC located in the trading member’s office. The trading members on the Wholesale Debt Market segment are linked to the central computer at the NSE through dedicated 64 Kbps leased lines and VSAT terminals. These leased lines are multiplexed using dedicated 2 MB optical-fiber links.

    The WDM participants connect to the trading system through dial-up links. The exchange uses RISC- 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 functions BOLT-THE BSE ARCHITECTURE BSE has deployed an OnLine Trading system (BOLT) on March 14, 1995. It works on a Tandem S74016 platform running on 16 CPUs. The Tandem Himalaya S74016 machines act as the backend to more than 8000 Trader Workstations networked on Ethernet, VSAT and Managed Leased Data Network (MLDN). The systems claim to handle up to two million trades a day.

    BOLT has a two- tier architecture. The trader workstations are connected directly to the backend server which acts as a communication server and a Central Trading Engine (CTE). Other services like information dissemination, index computation, and position monitoring are also provided by the system. A transaction monitoring facility in the Tandem architecture helps keep data integrity through non- stop SQL. With the help of MTNL, BSE has setup a MLDN Network comprising 300 2 Mbps lines and 1500 64 Kbps lines which connect all regional stock exchanges and offices in Mumbai.

    Access to market related information through the trader workstations is essential for the market participants to act on real-time basis and take instantaneous decisions. BOLT has been interfaced with various information vendors like Bloomberg, Bridge, and Reuters. Market information is fed to news agencies in real time. The exchange plans to enhance the capabilities further to have an integrated two way information flow RECOMMENDATIONS OF SEBI The SEBI has also played an important role in the issue of the guidelines regarding online trading so that the chances of fraud and misrepresentation are minimized.

    The some of recommendations are asfollows: The stock brokers which are being registered with Securities Exchange Board of India (SEBI) will have to apply to stock exchanges for a formal permission. The following 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 there in the system used by the brokers to ensure the provision for confidentiality ,security ,justifiability and reliability of data .

    The user id, first level and second level password, automatic expiry of passwords at the end of a reasonable period,secured socket level security for server access through Internet, suitable firewalls between the trading set-up directly connected to an exchange trading system and the Internet tradingset-up,microprocessor-based Smartcards,dynamic password, 64 bit/128- bit encryption are the basic minimum security standards. 3. The brokers must maintain adequate back-up systems and data storage capacity which must be checked by the stock exchanges. 4.

    The minimum qualification must be laid down by the stock exchange to ensure that the persons hired by the brokers must have the proper qualification regarding trading so as to guide the clients and he can communicate regarding trading instructions 5.

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