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SYNOPSIS

ON
ONLINE TRADING
AT
SHAREKHAN LIMITED

INTRODUCTION TO TRADING

Historically, stock markets were physical locations where buyers and sellers met and
negotiated. With the improvement in communications technology in the late 20th century, the
need for a physical location became less important, as traders could transact from remote
locations. Participants in the stock market range from small individual stock investors to large
hedge fund traders, who can be based anywhere. Their orders usually end up with a
professional at a stock exchange, who executes the order. Some exchanges are physical
locations where transactions are carried out on a trading floor, by a method known as open
outcry. This type of auction is used in stock exchanges and commodity exchanges where
traders may enter "verbal" bids and offers simultaneously. The other type of stock exchange
is a virtual kind, composed of a network of computers where trades are made electronically
via traders. The shares of a company may in general be transferred from shareholders to other
parties by sale or other mechanisms, unless prohibited. Most jurisdictions have established
laws and regulations governing such transfers, particularly if the issuer is a publicly-traded
entity The desire of stockholders to trade their shares has led to the establishment of stock
exchanges. A stock exchange is an organization that provides a marketplace for trading shares
and other derivatives and financial products. Today, investors are usually represented by
stock brokers who buy and sell shares of a wide range of companies on the exchanges. A
company may list its shares on an exchange by meeting and maintaining the listing
requirements of a particular stock exchange. Actual trades are based on an auction market
model where a potential buyer bids a specific price for a stock and a potential seller asks a
specific price for the stock. (Buying or selling at market means you will accept any ask price
or bid price for the stock, respectively.) When the bid and ask prices match, a sale takes place,
on a first-come-first-served basis if there are multiple bidders or askers at a given price. The
purpose of a stock exchange is to facilitate the exchange of securities between buyers and
sellers, thus providing a marketplace (virtual or real). The exchanges provide real-time
trading information on the listed securities, facilitating price discovery.
NEED OF THE STUDY

The present study to review the online trading procedure a case study of ONLINE TRADING
at SHAREKHAN., as the exchange has changed its trading from the outcry mode to online
trading on 20th February 1997, there is need to assess the performance of the capital market.

OBJECTIVES OF THE STUDY

It is to analyze the changes in trading after the exchange shifted from outcry to online trading
system. It is to study the functions of SHAREKHAN through various departments. To know
the online screen based trading system adopted by SHAREKHAN and about its
communication facilities. The appropriate configuration to set the network, which would link
the SHAREKHAN to individual / members. To know about the latest and future development
in the stock exchange trading system.
1.To evaluate the present day paperless trading and it’s associated shortcomings.
2. To analyse the impact of dematerialisation in the growth and integration of Indian stock
market with the world market.
3. To study the extent of cost reduction and level of transparency brought about through the
process of dematerialisation in Indian stock markets.
4. To study the extent of reduction in customer complaints and redressal in the stock trading
system.
5. To assess the volume of stock trading in the Indian stock market due to the present day
paperless regime.
6. To make suggestions, based on the findings of the study.

PERIOD OF STUDY

The study has been conducted for 6 weeks i.e. from DD/MM/201X to DD/MM/201X.

RESEARCH METHDOLOGY

The data collection methods include both primary and secondary collection methods.
Primary method: This method includes the data collected from the personal interaction with
authorized members of Share khan Securities limited.
Secondary method: The secondary data collection method includes:

The lecturers delivered by the superintendents of respective departments. The brochures and
material provided by Share khan Securities limited and Data collected through distribution of
questionnaires from a sample. The data collected from the magazines of the NSE, economic
times, and etc., various books relating to the investments, capital market and other related
topics.

LIMITATIONS OF THE STUDY

The study is confined to online trading procedure only. Problems of listing are not covered
due to limited time and to keep the study in manageable limits.
1. The study is purely based on secondary data; hence the limitations of secondary data do
apply.
2. The study fails to identify the exact volumes of transactions prior to dematerialisation.
3. The study is limited to the data available with BSE and NSE.

CHAPTERISATION

CHAPTER-1: INTRODUCTION
This chapter covers introduction of the study, objectives, research methodology, sampling and
sample size etc
CHAPTER-2: LITERATURE REVIEW
This chapter throws on the theoretical aspects on this topic
CHAPTER-3: INDUSTRY PROFILE AND COMPANY PROFILE
This chapter focuses on the growth and prosperity of industry and it also focuses on the
inception, growth, milestones, products etc of SHAREKHAN LIMITED
CHAPTER-4: DATA ANALYSIS AND INTERPRETATION
This chapter covers analysis and interpretation of collected data
CHAPTER-5: CONCLUSION, FINDINGS AND SUGGESTIONS
This chapter covers conclusion, findings of the study. It also offers suggestions to the
organization to strengthen the dividend decisions in SHAREKHAN LIMITED

REFERENCES

BOOKS

Investment management -V.K.Bhalla


Investment management -Preethi Singh
Security Analysis and Portfolio Management -V.A.Avadhani
Marketing of Financial Services -V.A.Avadhani
Indian Financial System -M.Y.Khan

Articles

 Bae, K., Bailey, W., Mao, C.X. (2006), Stock Market Liberalization and the
Information Environment, Journal of International Money and Finance, 25, 404428.
 Baker, H.K. (1996), Trading Location and Liquidity: An analysis of U.S. Dealer and
Agency Markets for Common Stocks. Financial Markets, Institutions & Instruments, 5(4),
1-51.
 Money and Capital in Economic Development, ashington: Brookings
Institution. International Journal of Economics and Financial Issues, Vol. 3, No. 3.
 Dijk (2007). Economic Policy, The Size Effect in Equity Returns. Empirical Research
Findings. Journal of Financial Management and Analysis,
21(1).Available at http://papers.ssrn.com/sol3/results.cfm last accessed on July5, 2009.
 Charles (1999). Economic Policy, Astonishing growth in Americans' stock portfolios.
The Icfai Journal of Stock Market, 6 (3): 43-60. Available at
http://papers.ssrn.com/sol3/results.cfm last accessed on July5, 2009.

Websites:
 www.Share Khan.com www.bseindia.com
 www.sebi.com
 www.moneycontrol.com www.economictimes.com www.nseindia.com