ibsar kshitij

8/6/2019 IBSAR KSHITIJ

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Online Broking In

India


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Evolution of broking industry

Pre online Era Online Era Post online Era


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PRE ONLINE ERA

Open out cry method

Physical share certificate


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NEED TO GO ONLINE The rapid growth in number, volume and value of

securities leading to limitation of

handling and dealing in securities in

physical / paper mode

Harshad mehta scam leading to demateralisation

concept


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Need to provide better services

market research relationship

live quotes management

IPOs on-line asset

allocation

portfolio management tax planning

services

financial planning


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ONLINE ERA Screen based trading system

NEAT

BOLT

In the past investors had tocontact their broker to get realtime access to market data.

Online and net broking enableshim to trade on a click ofmouse Information easilyaccessible to both retail biginvestors.


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Advantages easy and efficient access to more

reports and charts

smaller organization to compete

with multinational organizations

Increased reach as more

branches and franchisee come

up


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individual can exercise it over accounts & can

comprehend what is going on when they trade

one can invest in stock and stock index options, mutual

funds, individual government and even insurance.

cheap easy fast and convenient.

A lot of information is online so they can

keep up-to-date with what is

happening in the trading world.


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absence of broker gives any trader an opportunity to take

his/her own decisions without hurry.

completing or denying a trade can be performed within a

few seconds so it's easier to manage your investments

and shorten your losses.

They have access to numerous tool to invest and can

create their own portfolio.


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Disadvantages

network crashes leads to problems and delays in order

placement

Individuals are restricted to first hand financial

guidance. This simple means that the individual is

he/she alone to.

Chances are that one has no idea who one is dealing

with on the other end, so it is advisable to gather all the

possible information about the party one is dealing with.In short do the home work and be prepared.

More transperency to sensitive and confidential data


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addicted trader gets carried away online and being to

trade for too much which cause losses for him/her.

There is a need for more effective communication linksover the internet and the ability of the server to deal with

a large volume of visitors.


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Competitors analysis on the basis of USP


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USP of Sharekhan

Online trading, user friendly and one doesn'tneed any software to access.

Good quality of services like daily SMS alerts,mail alerts, stock recommendations etc.

Ability to transfer funds from most banks.Unlike ICICI Direct, HDFCSec, etc., so investornot really needs to open an account with aparticular bank as it can establish link with

most modern banks.


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USP of angel broking

User friendly browser-based / application based onlinetrading platform.

The auto square off time is at 3:15 and an investor can buyup to 4 times the value in his account.

Trading account can be linked with popular private bankslike HDFC Bank, ICICI Bank, UTI bank etc.

Trading is available in both BSE and NSE.


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USP of Religare

Religare gives interest on unutilized cash when investor

is waiting to make next trade or an online investment.

Clients get to earn trade rewards every time they trade

in equity or invest in IPOs with them.

Online facility of placing After Market Orders is

available to investors.

Facility of investing in Equities, Derivatives, Currency

Futures, Mutual Funds and IPOs through a single login. They provide intraday reports and historical charting.

Also provide a variety of fee structures to fulfill the

needs of different types of investors


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USP of kotak securities

Through its web portal company provides a single platformfor investments in equities, Mutual Funds and currencyderivatives. Available margin can be used for any of thethree segments.

Saxo's global trading platform provided by the companyallows direct access to equities, ETF's and REITS spanning24 stock exchanges across the USA, Europe, Asia andAustralia.

In late 2008 company launched an interesting Smart Orderfeature to its online trading portal. While placing an orderto buy or sell stocks at BSE and NSE, customer can choosethis option. Once selected, this option offers customers thebest available price between BSE and NSE. This option isavailable to all the customers of the company.


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Kotak also provides a Call & Trade facility to its

customers wherein they can place and track their

orders through phone when they are away from home.

Kotak Securities provide daily SMS alerts, market

pointers, periodical research reports, stock

recommendations etc.

Kotak provides exclusive online tool to monitor what is

happening in the market and also investor can view

gains/losses in real-time.


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young management team which consists of very talented

and knowledge professionals from different fields.

a well capitalized group with net worth of 3500 crores.

It means company is armed with proper resources to

fight any adverse situation.

tremendous research calls to their clients with high

success record


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Investors are not completely aware of Nirmal Bang, so the

brand value of the company not yet created.


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The growth of capital market is very high. Investorsare now ready to invest their money

In this market because the return is much highercompare to other place for investment,

So they are ready to bear risk factor associated with it.It means volume will increase year by year in this

sector.

As Nirmal Bang having its presence in 36 location ofthe country, so company has good opportunities toextents its branches all over the country.


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Company has to face a tough competition from major

market leaders, so it will be a difficult task for Nirmal Bang

to sustain itself in this cut throat competitions.


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