“A STUDY OF INVESTOR’SPERCEPTION ABOUT E-

TRADING”Summer Internship Project Report

The study highlights about the perception ofthe traders towards online trading.SHAREKHAN LTD. as a company and its onlinetrading services , with its TRADER TIGERSOFTWARE and comparison being the mainfocal point of this study highlighting thesatisfaction level of trader for online trading.Parallel study has been conducted to analyzethe trader’s perception towards SHAREKHANLTD. Online services.

“A STUDY OF INVESTOR’S PERCEPTION ABOUT E-TRADING”

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“A STUDY OF INVESTOR’S PERCEPTION ABOUT

E-TRADING”

SUMMER INTERNSHIP PROJECT REPORT SUBMITTED TOWARDS PARTIALFULFILLMENT

Of

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

(Approved by AICTE, Govt. of India)

(Equivalent to MBA)

Academic Session

2013 – 2015

Submitted By:

ANUJ KUMAR GUPTA

(BM-013014)

Under the Guidance of:

External Supervisor- Internal Supervisor -

Anil Sharma Dr. Timira Shukla

Assistant manager Faculty of marketing

Sharekhan ltd. IMS Ghaziabad

3E/6 ground floor, Jhandewalan Extn. Delhi

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CERTIFICATE FROM COMPANY

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PREFACE

As a part of the PGDM Curriculum and in order to gain practical Knowledge in the field of

management, we are required to make a report on “A study of investor’s perception about E-

trading” The Basic objective behind doing this project report is to get knowledge tools of

different tools of marketing. In this project report we have included various concepts,

perception and satisfaction of traders regarding online trading to SHAREKHAN LTD.

Objectives of my study which I took were, to study investor’s perception on online

trading like safety. To study a comparative analysis on the services provided by major

online trading service providers in the market. And to identify customer rankings on

user friendliness of online terminal and to help the company in building a strategy for

their online services.

Doing this Project report helped us to enhance our knowledge regarding the work in to the

attitude of traders towards online trading vs. off line trading. We doing undergo many

experiences related with our topic concepts. Through this report I faced many problems like

getting appropriate response from the respondents and getting appointment from the

investors, the study is limited to the curriculum. There are some suggestions which are

inferred from my study which may be of some importance to SHAREKHAN LTD. in future

online trading.

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ACKNOWLEDGEMENT

With immense pleasure, I would like to present this project report for SHAREKHAN Ltd. It

has been an enriching experience for me to undergo my summer training at SHAREKHAN

Ltd, which would not have been possible without the goodwill and support of the people

around. As a student of “INSTITUTE OF MANAGEMENT STUDIES”, GHAZIABAD I

would like to extend my sincere gratitude and thanks to Mr. ANIL SHARMA (ASSISTANT

MANAGER, SHAREKHAN LTD.), GHAZIABAD , DR. URVASHI MAKKAR (Director-

Principal, IEM College Of Management), PROF. TIMIRA SHUKLA (FACULTY OF

MARKETING, INSTITUTE OF MANAGEMENT STUDIES)) to shape my understanding

towards the project. It was because of their immense help and support that this project has

been duly completed.

However, I accept the sole responsibility for any possible error and would be extremely

grateful to the readers of this project report if they bring such mistakes to my notice.

------------------------------- ANUJ KUMAR GUPTA

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CONTENTS

CHAPTERNO.

Particulars PageNos.

EXECUTIVE SUMMARY 7

1. INTRODUCTION TO PROJECT 8

2. COMPANY PROFILE 11

3. RESEARCH PROBLEM & BACKGROUND 24

4. OBJECTIVE & SCOPE OF STUDY 26

5. RESEARCH METHODOLOGY 28

6. DATA ANALYSIS & INTERPRETATION 31

7. OBSERVATION & SUGGESTIONS 47

8. LIMITATIONS OF THE STUDY 50

9. CONCLUSION 52

10. BIBLIOGRAHY & REFERENCE 54

11. APPENDIX 56

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EXECUTIVE SUMMARY

“Marketing management 12e-Analysing consumer markets” by Philip Kotler states that

perceptions are more important than reality and it affects the consumers actual behaviour.

Perception is defined as the process by which an individual selects,organizes,and interprets

information inputs to create a meaningful picture of the world.

“Online stock trading in India: An empirical investigation”

In 2007,Nidhi walia and Ravinder kumar’s research report examined the investor’s

preference for traditional trading and online trading, investor’s perception on online trading

and comparing current usage of online trading and offline trading. This study reveals that out

of every 100 investors only 28 trade online, which points out a question as why investors

were not able to realize the importance of technology in stock trading.

Online trading has gained momentum from just 0.5% of total traded volumes 5 Years

back, which now accounts for 5% of the total trading volume of approximately Rs 14000 Cr

on NSE. Over the past 2 years, the value of all trades executed through internet on NSE has

grown from less than Rs 100 cr in June 2003 to over Rs 700 Cr in June 2005.

The major findings of the study are that Indian investors are more conservative, they do

not change easily and Indian traditional traders still choose brokers for trading ,whereas net

traders are more comfortable with online trading for its transparency and complete control of

the terminal

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CHAPTER 1

INTRODUCTION

TO PROJECT

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1.1 Brief Description

Share khan is India’s leading online retail broking house. Launched on February 8, 2000as an online trading portal, Share khan has today a pan-India presence with over 1,529outlets serving 950,000 customers across 450 cities.

It also has international presence through its branches in the UAE and Oman. Share khanoffers services like portfolio management, trade execution in equities, futures & options,commodities, and distribution of mutual funds, insurance and structured products. Theseservices are backed by quality investment advice from an experienced research team which

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offers investment and trading ideas based on fundamental and technical researchrespectively, market related news, statistical information on equities, commodities, mutualfunds, IPOs and much more.

Share khan is a member of the Bombay Stock Exchange, the National Stock Exchange andthe country’s two leading commodity exchanges, the NCDEX and MCX. Share khan is alsoregistered as a depository participant with National Securities Depository and CentralDepository Services.

Share khan has set category leadership through pioneering initiatives like Trade Tiger, anInternet-based executable application that emulates a broker terminal besides providinginformation and tools relevant to day traders. Its second initiative, First Step, is targeted atempowering the first-time investors. Share khan has also set its global footprint through the“India First” initiative, a series of seminars conducted by Share khan to help the non-residentIndians participate and benefit from the huge investment opportunities in India.

1.2Time line of SHAREKHAN LTD.

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CHAPTER 2

COMPANY PROFILE

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2.1 Company Profile

Share khan was the first brokerage Company to go online. The Company's online tradingand investment site - www.Sharekhan.com - was also launched on Feb 8, 2000. This sitegives access to superior content and transaction facility to retail customers across thecountry. Known for its jargon-free, investor friendly language and high quality research, thecontent-rich and research oriented portal has stood out among its contemporaries because ofits dedication to offering customers best-of-breed technology and superior marketinformation.

Share khan has one of the best states of art web portal providing fundamental andstatistical information across equity, mutual funds and IPOs. One can surf across 5,500companies for in-depth information, details about more than 1,500 mutual fund schemes andIPO data. One can also access other market related details such as board meetings, resultannouncements, FII transactions, buying/selling by mutual funds and much more.

Share khan's management team is one of the strongest in the sector and has positionedShare khan to take advantage of the growing consumer demand for financial servicesproducts in India through investments in research, pan-Indian branch network and anoutstanding technology platform. Further, Share khan's lineage and relationship with SSKIGroup provide it a unique position to understand and leverage the growth of the financialservices sector. We look forward to providing strategic counsel to Share khan's managementas they continue their expansion for the benefit of all shareholders."

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SSKI Corporate Finance Private Limited (SSKI) is a leading India-based investment bankwith strong research-driven focus. Their team members are widely respected for theircommitment to transactions and their specialized knowledge in their areas of strength. Theteam has completed over US$5 billion worth of deals in the last 5 years - making it amongthe most significant players raising equity in the Indian market. SSKI, a veteran equitiessolutions company has over 8 decades of experience in the Indian stock markets.

If we experience their language, presentation style, content or for that matter the onlinetrading facility, we'll find a common thread; one that helps us make informed decisions andsimplifies investing in stocks. The common thread of empowerment is what Sharekhan's allabout!

"Share khan has always believed in collaborating with like-minded Corporate into formingstrategic associations for mutual benefit relationships" says Jaideep Arora, Director – Sharekhan Limited.

Share khan is also about focus. Share khan does not claim expertise in too many things.Share khan's expertise lies in stocks and that's what he talks about with authority. So when hesays that investing in stocks should not be confused with trading in stocks or a portfolio-based strategy is better than betting on a single horse, it is something that is spoken withyears of focused learning and experience in the’ stock markets. And these beliefs arereflected in everything Share khan does for us! Share khan is a part of the SSKI group, anIndian financial services power house, with strong presence in Retail equities Institutionalequities Investment banking.

In Nagpur it is having the branches at C.A. road, near telephone exchange square and Kharetown, Dharampeth and 12-13 franchisees in Nagpur. We have been given the centre at C.A.road.

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Share khan provides 4 in 1 account-:

Demat a/c

Trading a/c: for cash calculation

Bank a/c: for fund transfer

Dial and Trade: for query relating trading

2.2Products:

Mutual fund schemes

Insurance

Portfolio Management System

Shares – online and offline

Bonds

Fixed Deposits

Commodities

Out of these we have to mostly sell demat accounts and Mutual Funds.

2.3 Demat account:

Share khan is a depository participant. This means that we can keep the shares indematerialized form in Share khan. But for this one has to the demat account in Share khan.Dematerialization is the process by which a client can get physical certificates converted intoelectronic balances maintained in his account with the DP.

In Share khan, under demat account there are two types of terminals.

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TYPE OF DEMATACCOUNT TERMINAL

DEPOSIT (Refundable) CHARGES(nonrefundable)

CLASSIC Rs.5000 Rs.750

Rs.10000 Nil

TRADETIGER Rs.5000 Rs.1000

Rs.10000/25000 Nil

2.4 Its core services are:

Equities, and Derivatives trading on the National Stock Exchange of India Ltd. (NSE), andBombay Stock Exchange Ltd. (BSE),

Commodities trading on National Commodity and Derivatives Exchange India (NCDEX)and Multi Commodity Exchange of India Ltd. (MCX),

Depository services,

Online trading services,

IPO Services,

Dial-n-Trade

Portfolio management services,

Fundamental and Technical Research services,

In addition to this they also provide advisory services and distributions for mutual funds.

Share khan Value Line (a monthly publication with reviews of recommendations, stocks towatch out for etc.)

Daily research reports and market review (High Noon & Eagle Eye)

Pre-market Report

Daily trading calls based on Technical Analysis

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Cool trading products (Daring Derivatives and Market Strategy)

Personalized Advice

Live Market Information

Share khan First Step

The Share khan First Step is a brand new program designed especially for those who arenew to investing in shares. All one have to do is open a Share khan First Step account andthey guide us through the investing process.

Market Share

Share khan enjoyed about 20 per cent market share in Web business (Internet trading) instock markets. Three years ago, Web trading showed lot of promise but with the marketwitnessing a downturn, there was not much interest among retail customers.

Profits

The share of Web trading constituted 22 per cent of the revenue. As Share khan’s dailytrading volume was over Rs 200 crore, the share of Web trading at about Rs 40 crore a daywas substantial and a larger part of the volume was coming from day traders.

2.4Features of Trading With Share khan:

Freedom from paperwork

Instant credit and money transfer

Trade from any net enabled PC

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After hour orders

Online orders on the phone

Timely advice and-research reports

Real-time Portfolio tracking

Financial capability

Taking in to consideration all its assets and liabilities company is valued at around Rs. 750-850 crores.

2.5Hierarchy in Share khan

There are 14 main hierarchical levels in Share khan:

Trainees

Super trainees

Sales executives

Assistant sales manager

Area sales manager : Mr.qumaruddin

City sales manager

Assistant branch manager

Branch manager

Regional head

Cluster head

Business head

Country head

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Directors

CEO

2.6Account opening:-

Opening a DP account with Share khan

One can open a Depository Participant (DP) account, either through a Share khan branch orthrough a Share khan Franchisee center.

There is no fee for opening DP accounts with Share khan. However a nominal deposit(refundable) is charged towards services which will be adjusted against all future billings.

All investors have to submit their proof of identity and proof of address along with theprescribed account opening form.

List of Documents required to open an account withShare khan :

Proof of Identity

You can submit a photo copy of any of the following

Voter ID

Passport

PAN Card

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MAPIN UID Card

Driving License

Photo I card issued by Employer registered under MAPIN

2.7Copy of Ration Card

Address Proof

You can submit a photo copy of any of the following

Voter ID card

Driving License

Passport

Ration Card

Telephone Bill

Electricity Bill

Leave-License

Bank Passbook

Latest Bank Statement

Insurance Policy

Flat Maintenance Bill

A copy of cancelled cheque

Nominee photograph, if filled

Signed Photograph of all holders

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BROKERAGE STRUCTURE OF SHAREKHAN

BROKERAGE:

INTRADAY DELIVERY

CASH- EQUITIES 0.05% 0.5%

F&O 0.05%

MINIMUM INVESTMENT IN MUTUAL FUND:

INVESTMENT MINIMUM AMOUNT

Mutual Fund (Any Company) 5000

Systematic Investment Plan (AnyCompany)

500

Share khan has tie up with the following banks :

HDFC

Axis Bank

IDBI

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Citi Bank

IndusInd Bank

Union Bank, ICICI, Oriental Bank Of Commerce

CUSTOMER

Business class people (high class)

High Net worth Individuals

Service class people

Government Employees

Young Adults (19-30 yrs.)

Adults (35-50 yrs.)

HUF (Hindu Undivided Family)

Women (literate and working)

COMPETITORS

India Bulls

Motilal Oswal

Religare

Kotak Securities

ICICI Direct

Anand Rathi

India Infoline

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2.8 Objective of sharekhan :

o To project Share khan as an authority in the retail stock trading business.

o To execute business for the company by selling demat accounts and mutual funds.

o To study the various products of the company.

o To know how to open and close the calls.

o To learn the online terminal used for trading.

o To know the various policies of the company.

o To know how to handle various types of customers.

o To know various reasons for market fluctuations.

o To learn to manage time.

o To gain practical knowledge of the market.

o To have a practical experience of working in a reputed organization.

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ACHIEVEMENT OF THEPROJECT

TARGET GIVEN:

Attend all the classes for an overview on online trading – 45

A total sample of 50 for a company’s questionnaire on perception of traders towards

online trading, which includes field work

A total sample of 50 for project questionnaire on perception of traders towards online

trading, which included field work and a report on the same with a research

methodology, findings and analysis and conclusion

Open 5 DMAT accounts

TARGET ACHIEVED:

A total of 43 classes attended out of 45. After that data collection work was done

where All the questionnaires were submitted, with a satisfactory field work and All

the questionnaires were submitted, with a project report and got evaluated for the

same. And from the target A total of 3 DMAT accounts were opened out of 5.

The classes attended gave the below information:

About timing of opening of market in BSE and NSE

The information of the brokerage which the company used to charge on a transaction

in online trading

Services share khan provides like ignite, session initiation protocol

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CHAPTER 3

RESEARCH PROBLEM

&

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BACKGROUND

3.1 Background

This project is basically to know the perception of demat account holders towards online trading

1) To make the online services better, the company wants the details of demat traders

who do trading through online this is being held throughout the India. But I have

given the NEW DELHI. There I have visited the following areas. Jhandewala Connaught place Pacific mall , Ghaziabad EDM mall, New Delhi

2) In addition to these documents various other information like number of traders,

online services provided by SHAREKHAN were taken. These data formed the main

basis of the study. Various analysis like online trading awareness, perception of online

trading for services and satisfaction of trader for online trading etc. were analyzed.

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3) 2) Providing new services for online trading, this in user-friendly perspective is

increasing the involvement of user in online trading, which will in turn lead to more

satisfaction and growth.

3.2 Research Problem

o Getting appropriate response from the respondents

o Getting appointment from the investors.

o The study is limited to the curriculum.

CHAPTER 4

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OBJECTIVES AND SCOPE

OF STUDY

4.1 Objectives of the study

The main objective of the study is: Investor’s perception about E-trading

The sub objectives of the study are as follows:

o To study investor’s perception on online trading like safety regarding transaction

errors.

o To identify customer rankings on user friendliness of online terminal.o To analyze brokerage of online trading as compare to off line trading according to

online traders.

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4.2 Scope of Study

The main scope of the study is listed below:

It gives us information about the scope of opening a demat account in share khan with

online services. It gives us information about the perception of trader towards online trading. It shows the number of online trader. It gives the information regarding the preference and choices of the different online

trader. The study also gives information regarding the expansion of online services for trader

in future.

It gives the information about satisfaction level of online trader.

CHAPTER 5

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RESEARCHMETHODOLOGY

5.1 Research Design

Online trader analysis that are in trading and demat account holder: exploratory and

Descriptive research design.

5.2 Data

• Primary Data: Primary data collected by interviewing the different types of

trader through alternative advisory firm and have administer the trader’s perception

towards E-trading with the help of per designed questionnaire.

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• Secondary Data: collected from SHAREKHAN demat account holders and

from other area.

5.3 Research Instrument

A questionnaire was provided by the company for mapping the data of different types

of trader. The questionnaire they provided was open ended and containing the straight

forward questions.

5.4 Research Tool

Many statistical tools like:-

• QUESTIONNAIRE

• DIRECT INTERVIEWS

Have been used in this research to derive the conclusion

5.5 Sample Size

Dealers Sample Size :50

Successful Survey : 50

5.6 TOOLS USED FOR ANALYSIS FOR MEASURING

TRADER’S SATISFACTION LEVEL:

1. Graphical Representation of Analysis:

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Pie charts

Bar Diagrams

2. Hypothesis testing

CHAPTER 6

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DATA ANALYSIS AND

INTERPRETATION

Here I have selected age under 18-25 which will help to segregate and figure out segment according to Gender, occupation, Income level and trading period -:

6.1Gender of online traders (Under 18-25)

FREQUANCY

Gender of traders who do trade online under age 18-25?

Table 1

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UNDER 18-25Gender Number of respondents

Male 24

Female 3

TOTAL 27

CHART NO- 1

male female 0

5

10

15

20

25

30

24

3

Gender

INFERENCES:-

The above graph shows that out of 50 Respondents, under 18-25, 24 are male and 3

are female.

Under 18-25, the maximum numbers of traders are male.

6.2 Occupation of online traders (Under 18-25)

FREQUENCY

Occupation of traders who do trade online under 18-25?

TABLE 2

OCCUPATION AGE UNDER 18-25Students 12(44%)

Private Employee 11(41%)

Public-Employee 3 (11% )

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Self-employed 1 (4%)

CHART NO- 2

1244%

1141%3

11%

14%

number of of traders

student private emp. public emp. self employed

INFERENCES:-

The above graph shows that out of 50 Respondents, 44% are students, 41% are Private

employees and 11% are public employees and 4% are self-employed.

Under 18-25, the maximum number of trader who are students.

6.3 Income level of traders (Under 18-25)

FREQUENCY

TABLE 3

INCOME LEVEL AGE UNDER 18-25

Less than 1 lakh 6 (23%)

1 Lakh to 3 Lakh 10 (37%)

3 Lakh to 5 Lakh 1 (3%)

More than 5 Lakh 0 (0%)

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NIL 10 (37%)

TOTAL 27 (100%)CHART NO- 3

0

2

4

6

8

10

1210 10

6

1

0

37% 37% 23% 3%

0%

Income level under 18-25

percentage

INFERENCES:-

The above graph shows that out of 50 Respondents, 37% are under NIL category ,

37% are under Less than 1 Lakh , 23% are under 1 lakh to 3 lakh , 3% are under 3

Lakh to 5 Lakh and no one under More than 5 Lakh.

Under 18-25, there are equally number of traders who are under NIL categories and as

well as Less than 1 Lakh.

6.4 Trading period of Traders (under 18-25)

FREQUENCY

TABLE 4

TRADING TIME AGE UNDER 18-25

1-2 Years 74(%)

2-3 years 26(%)

3-5 years 0 (0%)

More than 5 years 0 (0%)

TOTAL 100%CHART NO- 4

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1-2 years ; 74%

2-3 years; 26%

Trading time (Under 18-25)

1-2 years 2-3 years

3-5 years More than 5 years

INFERENCES:-

The above graph shows that out of 50 Respondents (under 18-25) , 74% have been

trading for 1-2 years, 26% have been trading for 2-3 years and no one has been trading

for 3-5 years as well as more than 5 years.

Under 18-25 age, the maximum number of traders who have been trading for 1-2 years

and after that 2-3 years trading period.

TRADERS’ PERCEPTION TOWARDS ONLINE TRADING

6.5 E-trading is easy way to trade in stock.

FREQUENCY

Table 5

SCALE TOTAL RESPONSE(50)

Strongly Disagree=1 0

Disagree=2 1

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Neutral=3 11

Agree =4 10

Strongly Agree =5 28

TOTAL 50CHART NO- 5

05

1015202530

1

1110

28

E-trading is easy way to trade in stock?

E-trading is easy way to trade in stock?

INFERENCES:-

Out of 50 traders, 56% of traders rated” Easy way to trade” as strongly agree, 20 %

are rated it as agree, 22% as Neutral and 1% rated as Disagree and one rated Strongly

Disagree. Almost all the traders have shown a positive response towards “Easy way to trade”.

6.6 Online trading is friendlier as compare to

offline trading.

FREQUENCY

TABLE 6

TRADING TIME TOTAL RESPONSE(50)

Strongly Disagree=1 0

Disagree=2 1

Neutral=3 11

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Agree =4 10

Strongly Agree =5 28

TOTAL 50

CHART NO- 6

1=Strongly Disagree

2=disagree

3=Neutral

4= Agree

5=strongly Agree

0 2 4 6 8 10 12 14 16 18 20

4

5

17

19

5

Online trading is friendlier as compare to offline trading.

Online trading is friendlier as compare to offline trading.

INFERENCES:-

Out of 50 traders, 38% of traders rated “brokerage more in online compare to off-

line” as Agree, 34 % are rated it as Neutral, 10% as disagree and 10% rated as

Strongly Agree and 8% rated Strongly Disagree.

38% traders say that online trading causes more brokerage as compare to off –line trade

6.7 Time period of trader (Data taken from all 50 responses)

FREQUENCY

TABLE 7

TRADING TIME RESPONSE FROM 50

1-2 Years 29(58%)

2-3 years 16(32%)

3-5 years 4(4 %)

More than 5 years 1(2%)

TOTAL 100%

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CHART NO- 7

29

164

1

Trading Period

1-2 years

2-3 years

3-5 years

more than 5 years

INFERENCES:-

The above graph shows that out of 50 Respondents, 58% have been trading for 1-2

years, 32% have been trading for 2-3 years and no 8% have been trading for 3-5 years

2% more than 5 years.

Under 50, the maximum numbers of traders who have been trading for 1-2 years and

after that 2-3 years trading period.

6.8 You feel secure while trading online.

FREQUENCY

TABLE 8

SCALE TOTAL RESPONSE(50)

Strongly Disagree=1 5

Disagree=2 0

Neutral=3 9

Agree =4 22

Strongly Agree =5 14

TOTAL 50

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CHART NO- 8

5

9

22

14

You feel secure while trading online.

1=Strongly disagree

2=disagree

3=neutral

4=Agree

5=Strongly agree

INFERENCES:-

Out of 50 traders, 44% of traders rated “Online trading is secure and reliable ” as

Agree, 28 % are rated it as Strongly agree, 18% as neutral and 10% rated as Strongly

Disagree and no one rated Disagree.

44% traders are agreed that online trading is secure and reliable.

Cross tabulation

Case Processing Summary

Cases

Valid Missing Total

N Percent N Percent N Percent

age * gender 50 100.0% 0 .0% 50 100.0%

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age * gender Cross tabulation

Gender

TotalF M

age 18-23 Count 0 1 1

% within age .0% 100.0% 100.0%

% within gender

.0% 2.2% 2.0%

% of Total .0% 2.0% 2.0%

18-25 Count 3 21 24

% within age 12.5% 87.5% 100.0%

% within gender

60.0% 46.7% 48.0%

% of Total 6.0% 42.0% 48.0%

18-26 Count 0 1 1

% within age .0% 100.0% 100.0%

% within gender

.0% 2.2% 2.0%

% of Total .0% 2.0% 2.0%

18-27 Count 0 1 1

% within age .0% 100.0% 100.0%

% within gender

.0% 2.2% 2.0%

% of Total .0% 2.0% 2.0%

25-30 Count 0 10 10

% within age .0% 100.0% 100.0%

% within .0% 22.2% 20.0%

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Hypothesis Testing

Ho: Age and gender are independent of each other.

H1: Age and gender are not independent of each other.

Chi-Square Tests

Value dfAsymp. Sig.

(2-sided)

Pearson Chi-Square

3.056a 6 .802

Likelihood Ratio 4.415 6 .621

N of Valid Cases 50

a. 11 cells (78.6%) have expected count less than 5. The minimum expected count is .10.

Inference:-

Since the calculated value (.802) is greater than tabulated value ( 0.05), null hypothesis is

accepted i.e. age and gender are independent of each other.

HYPOTHESISFor the purpose of analyzing the gathered information few marketing hypotheses were the

major issues in a successful conclusion of the research.

1. Issue: security is an important issue during online trading.

H0: More than 50% of traders believe that security is Important.

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H1: Less than 50% of traders believe that security is not important.

Applying Z test can prove this-:

Computation of Z value

Z= P-P/ sigma P

P=0.50 q = (1-P) =0.50

N=50

Where P= X/N = Respondents favoring Ho

Total sample size

P=36/50=.72

Sigma P P (1-P)/ (N) = .0707

Z= 0.72-0.5/0.0707

Z =3.12

K=1.96 (table value of Z) [Assuming 95% confidence interval]

Conclusion:

Since critical value (K=1.64) is less than calculated Z value (3.12) null hypothesis is

accepted.

Result:

More than 50% of traders are satisfied and say security is important in online

trading.

2. Issue: Online trading is friendlier as compare to offline trading.

H0: More than 50% of traders are satisfied that online trading is friendlier as compare to

offline trading.

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H1: Less than 50% of traders are not satisfied that online trading is friendlier as compare to

offline trading.

Applying Z test can prove this-:

Computation of Z value

Z= P-P/ sigma P

P=0.50 q = (1-P) =0.50

N=50

Where P= X/N = Respondents favoring Ho

Total sample size

P=38/50=.76

Sigma P P (1-P)/ (N) = .0707

Z= 0.76-0.5/0.0707

Z =3.68

K=1.96 (table value of Z) [Assuming 95% confidence interval]

Conclusion:

Since critical value (K=1.64) is less than calculated Z value (3.68) null hypothesis is

accepted.

Result:

More than 50% of traders are satisfied that online trading is friendlier as compare to offline

trading.

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SWOT ANALYSIS OF SHARE KHAN LTD.

STRENGTHS

Share khan is India’s leading online retail broking house

It has a good research team.

No Annual maintenance charges for their online broking services for one year.

WEAKNESS

High brokerage charges but now they have overcome this by a new prepaid in which

brokerage is reduced to half.

OPPORTUNITY

Financial services sector in India is growing by leaps and bounds.

In the upcoming days SHARE KHAN LTD. is coming up with his own insurance.

THREATS

Cut-throat competition from corporate big houses like RELIGARE and ICICI

MATUAL FUND.

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Chapter 7

OBSERVATION &

SUGGESTIONS

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OBSERVATIONS Research has been made on the topic “A study of Investor’s perception about E-trading” to

identify the level of satisfaction of traders from different location. Whole study only depends

upon DELHI-NCR online trader.

Based on the analysis and the interpretation of the data, observations and suggestions are

recorded which are as follows-:

As 38% traders rated agree that online trading is more expensive than offline trading.

56% traders have rated on “Strongly agree” that online trading is an easy way to

trade. Rest 26% who have rated on “Agree”.

58% traders have been trading for “1-2 years”.

Under 18-25 years age there are more number of trading which are male as compare

to female.

There is more number of traders who are student as compare to private employee or

public employee.

More than 50% of traders are satisfied that online trading is friendlier as compare to

offline trading. More than 50% of traders are satisfied and say security is important in online trading. No one does trading more than 5 years under 18-25

Income level is equally 37%, 37% between NIL or Less than one Lakh under 18-25.

A hypothesis testing was done to check the importance of the security for the tradersand it was found out of the total samples of 50, more than 50% of the traders believedthat security is an important concern for them.

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Similarly a hypothesis testing was done to check that approximately how many tradersin percentage feel that online trading is comfortable then online trading, the resultswere in favour as the null hypothesis is accepted: result being that more than 50% ofthe traders believe that online trading is friendlier then offline trading.

SUGGESTIONSSuggestions to Share khan Ltd. through this report

Based on the findings of the study I would like to suggest few points so that it will help them

to expand their online services.

Share khan Ltd. should focus on female traders as it in low in numbers compare to

male under 18-25

Online brokerage charges should be cut down as compare to offline brokerage because

more number of traders have rated as “AGREE” on high brokerage compare to offlinebrokerage.

Share khan Ltd. should generate better services so that they can sustain traders more

than 5 years as it is negligible.

Share khan Ltd. has to do more focus on Public employee or Self-employed as these

are less in numbers.

Though the satisfaction level is good in most of the cases with respect to easy trader

or friendlier than offline trading, full satisfaction level still needs to be achieved with

respect brokerage charges.

Share khan can let their customer Know that When to Sell YourStocks? Everyone focuses on what and when to buy stock, yet fewever consider the best time to sell. So to make online tradingfriendlier it can be done.

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Self-employed traders have courage to trader or invest more in stock. So more and

more focus should be on them to gain advantage.

Chapter 8

LIMITATIONS OF THE

STUDY

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8.1 Limitation and Constraint

While questionnaire filling process sometimes the clients do not give positive

response, may be because they are really busy or may be not interested in filling it.

Due to more number of questions in questionnaires traders were doing fluke things.

While interviewing when we met the online traders, they said that if they have to

spend money they will invest it in their shops and not in the share market. They don’twant to take risk. There are some negative rumors in the market about Share khan ltd.Some people have very bad experience with Share khan in terms of services andcharges. That perception affected our data collection process.

The small sample size pertaining to a particular geographical region cannot be the

decisive factor for drawing conclusion about the study.

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CHAPTER 9

CONCLUSION

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CONCLUSIONDoing a research for such a prestigious organization was quite an experience for me; it helped me to learn a lot about what methods we need to follow to conclude a methodologicalresearch.

The name of the project is “A STUDY OF INVESTOR’S PERCEPTION ABOUT E-TRADING”. The data was collected from online traders and the research was done to check the perception of traders towards the online trading facility provided by sharekhan.The research gave us an insight about the preferences of the customers when it comes about security, a comparison between online and offline trading on the basis of ease, comfort, user friendliness, cheaper in terms of money and time. The results were in favor of online trading.

CONCLUSION DRAWN FROM HYPOTHESIS TESTING

A hypothesis testing was done to check the importance of security for traders and for more than 50% of the trader’s security is an important concern.

Similarly a test was done on the user friendliness concern between online and offline trading.More than 50% of the traders believed that online trading is more user friendly than offline trading.

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CHAPTER 10

BIBLIOGRAPHY

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Bibliography

1. Naresh K. Malhotra, Satyabhushan Dash - Marketing Research: An Applied Orientation

2. Nidhi Walia, Ravinder Kumar, “Online Stock Trading in India: An empirical investigation”, Indian, Article Number, April 2007,Article6 ISSN 0973-8703

3. Philip Kotler ,Marketing Management: A South Asian Perspective 14th edition4. http://en.wikipedia.org/ - 7-9 May, 20145. http://www.sharekhan.com/ - 13-14 May, 20146. http://www.articlesbase.com/finance-articles/on-line-trading-an-overview-

1323823.htm - 18-19 May, 20147. www.traderonline.com – 23 May, 20148. Online-stock-trading-review.toptenreviews.com – 24-25 June, 2014

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CHAPTER 11

APPENDIX

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1.

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Strongly Disagree= SD

Disagree = D

Neutral = N

Agree = A

Strongly agree = SA

S.NO. SD D N A SA1. E-trading is easy way to trade in stock.

2. You feel secure while trading online.

3. Online trading is friendlier as compare to offline trading.

4. You face less Transactional error while trading online.

5. The amount of information given in the online account is sufficient for trading decisions.

6. Through online trading customer can modify the placing orders according to themarket movements.

7. Technical charts and graphs shown in the account, guides in making the right choice.

8. Online trading is “one stop shop “like Bankstatements and transaction statements onone click.

9. Online trading causes more Brokerage as compare to offline trading.

10. Online trading is less time consuming as compare to offline trading.

11. Online trading gives tips about buy/sell of shares .