PREFACE

In order to make the students competent, all students are required to make a
real time project work. This exposure to real life situation given an insight to
the students about what problem he/she can expect to face during his
carrier.
Studying books and merely passing exams is not worth the education,
knowledge and in fact experience is incomplete without being exposed to
what is happening in real. With the introduction of compulsory trading by
SEBI there has been mushroom growth of depository participants with so
many DP to choose from, clients still had to face so many problems while
carrying transaction. LSE also entered the DP business with the aim of
providing most efficient services. My study aims of finding out how far it has
been successful in keeping its promise of efficient services.
The main intention of this report is to compile the subject matter in such a
way that anybody, who has no prior acknowledgment of element of LSE &
DP, can understand properly without any difficulty. Annually this report is
result of an assignment to improve myself & gain confidence. I have done my
best to make it a genuine study but as we all know a maxim TO ERROR IS
HUMAN so there is change for some mistakes.

ACKNOWLEDGEMENT
After two semester of hectic schedule full of case studies, exams and
presentation, six weeks of summer training in M.B.A course provides an
opportunity to gain some practical knowledge in the industry and my
summer training at TRADING OF NATIONAL STOCK EXCHANGE AND BOMBAY
STOCK EXCHANGE association ltd. provided me one such opportunity. My
summer training at LSE association ltd. was an amazing experience. It gave
the much needed knowledge of the Trading that a student of finance must
posses. I got the chance to understand the activities performed and the main
operations of the stock exchange. However, this would not have been
possible without the noble attitude of some persons in the exchange.
First, I am highly thankful to Mrs. Pooja M. Kohli (Executive Director) of LSE
for permitting me to take the training at LSE Ltd. I also wanted to express our
sincere gratitude to Mr. Sadhu Ram ( Training and Education Incharge) for
their guidance throughout this project report .I would have not ended up with
doing another backneyed topic if he could not have given me the opportunity
to do work on these latest development in capital market.

I extend my gratitude to our HEAD Mr.M.J Kalra and all the related teachers.
The help and cooperation they offered at each stage of my study is ineffable.
Their valuable suggestions and constant encouragement made this study
interesting and useful.
Finally, I would like to acknowledge the support I got from my parents and
God. It was their blessing that kept me motivated throughout till the
completion of the project.

STUDENT DECLARATION
I hereby Declare that the Project work titled of Trading of National Stock
Exchange and Bombay Stock Exchange submitted by me in partial
fulfillment of the award of the degree of MASTER OF BUSINESS
ADMINISTRATION in Finance is my original work and it was not submitted
to any University or Institution or Published any time before. This is our own
study done under the guidance of manager of the company.
I hereby declare that the contents of this report are true and best to my
knowledge.

PLACE: LUDHIANA

(RAJNI)
ROLL
NO. : 12
BATC
H : 2ND

COMPANY PROFILE
History of Ludhiana Stock Exchange
Limited (LSE) was established in the year 1983. By 1999-2000, the exchange had a total of 284 brokers,
out of which 79 were corporate brokers. Among 284 brokers, it was further classified as 212 proprietor
broker, 2 partnership broker and 70 corporate broker. Then, there was only 23 sub-brokers registered.
Ludhiana Stock Exchange became the second bourse in India to introduce modified carryforward system
after BSE on April 6, 1998. On the same date, LSE also introduced a settlement guarantee fund (SGF).
The SGF guarantees settlement of transactions and the carryforward facility provides liquidity to the
market.LSE became the first in India to start LSE Securities Ltd., a 100% owned subsidiary of the
exchange. The LSE Securities got the ticket as sub-broker of the NSE. In 1998, the exchange also got
permission to start derivative trading.For the settlement of dematerialised securities, the Ludhiana Stock
Exchange has also been linked up with National Securities Depository Ltd. (NSDL)

Regulatory and membership of LSE

Company Profile Ludhiana Stock Exchange is one of the leading Stock Exchange among the Regional
Stock Exchanges of the country, and has been providing trading platform for the investors situated in
Punjab, J.& K., Himachal Pradesh & Chandigarh.
Ludhiana Stock Exchange, it is a corporate member of NSE in both the capital market and futures and
options segments and BSE equity segment. Trading member of LSE can assess NSE and BSE platforms by
registering themselves as sub brokers of LSE Securities Ltd. LSE Securities Ltd. thus provides the
investors one stop solution for cost effective trading and settlement services in small cities. LSESL is
depository participant (DP) of NSDL & CDSL and is providing depository services to intermediaries and
investors.

Desired ProfileCandidate should possess a professional degree in CA/CS/ICWA/MBA from a

recognized university. Candidate should have atleast 15 years of post qualification experience in the
securities/ capital market, of which atleast 8 years should have been at the senior management level.
Candidate should have demonstrated leadership abilities and superior understanding and judgement
in implementing complex financial and institutional decisions. Candidate must have significant
management experience, preferable of initiating change and transforming superior analytical and
outstanding communications skills.

Age Between 40- 50 years .

The application together with curriculum vitae should contain details of qualification, experience,
remuneration drawn and expected, two references and as well as recent passport size photograph should
reach by 01.09.2007 to
The Chairman
Ludhiana Stock Exchange Limited

Securities and Exchange Board of India

Introduction
SEBI is the Regulator for the Securities Market in India. Originally set up by the Government of India in
1988, it acquired statutory from in 1992 with SEBI Act 1992 being passed by the India Parliament.
Chaired by C B Bhave, SEBI is headquartered in the popular business district of Bandra- Kurla complex
in Mumbai and has Northern. Eastern and Southern regional offices in New Delhi, Kolkata and Chennai.
It is in the news that a new We stem Regional Office has been proposed at Ahmedabad.

Function of SEBI
SEBI has to be responsive to the needs of three groups, which constitute the market.

a.

The issuers of securities

b. The investors
c. The market intermediaries.
SEBI has three functions rolled into one body quasi-legislative, quasi-judicial and quasi-executive. It
drafts regulations in its legislative capacity, it conducts investigation and enforcement action in its
executive function and it passes rulings and orders in its judicial capacity. Though this makes it very
powerful, there is an appeals process to create accountability. There is a Securities Appellate Tribunal
which is a three member tribunal and is presently headed by a former Chief Justice of a High court Mr.
Justice NK Sodhi. A second appeal lies directly to the Supreme Court.

SEBI has enjoyed success as a regulator by pushing systemic reforms aggressively and successively
and successively ( e.g. the quick movement towards making the markets electronic and paperless rolling
settlement on T + 2 basis ). SEBI has been active in setting up the regulations as required under law.

TABLE OF CONTENT
1.INTRODUCTION
Trading of company
2.TRADING
Online Trading Company
Offline Trading Company

3 TRADING OF NATIONAL STOCK EXCHANGE

4 TRADING OF BOMBAY STOCK EXCHANGE
5 INTRODUCTION OF STOCK EXCHANGE
Meaning of stock exchange
future plans of stock exchange
features of stock exchange
history of stock exchange

 functions of stock exchange

benefits of stock exchange
6 BOMBAY STOCK EXCHNGE
vision
7 NATIONAL STOCK EXCHANGE
vision
8 STOCK MARKET
stock
share market
9

SHARE TRADING OF 3 PARTS

Offline share trading
Online share trading
Open outcry share trading

10 Security exchange board of india

functions of sebi
11 Board stock excgange
evolution of Bombay stock exchange
bombay stock exchange of history
12 NATIONAL STOCK EXCHANGE
ORIGINS
working hours
13

SENSEX AND NIFTY

14 SHAREHOLDER OF NATIONAL STOCK EXCHANGE

15 SHAREHOLDER OF BOMBAY STOCK EXCHANGE
16 GRAPHICAL REPRESENTATION
17 DATA ANALYSIS

Return, Variance, Standard Deviation

Of NSE Sensex
Return, Variance, Standard Deviation
Of BSE Sensex
Correlation of Returns Between NSE &
BSE
18 CONCLUSION AND RECOMMENDATION
19 RESEARCH METHODOLOGY AND OBJECTIVE
OBJECTIVE OF THE STUDY
20 BIBLIOGRAPHY
21 QUESTIONNAIRE

TRADING COMPANY
Trading companies are businesses working with different kinds of products which are sold
for consumer, business orgovernment purposes. Trading companies buy a specialized
range of products, maintain a stock or a shop, and deliver products to customers.
Different kinds of practical conditions make for many kinds of business. Usually two kinds of
businesses are defined in trading. Importers or wholesalers maintain a stock and deliver
products to shops or large end customers. They work in a large geographical area, while
their customers, the shops, work in smaller areas and often in just a small neighbourhood.
When talking about "trading companies", today we refer mainly to global B2B traders, highly
specialized in one goods category and with a strong logistic organization.
Changes in practical conditions such as faster distribution, computing and
modern marketing have led to changes in their business models.
The amount of time in which an order can be executed before it expires. The time in force
can be set up when placing the trade, and gives traders control over the timing of
the execution of the trade. A "day order", for example, may have a time in force of the
current trading day.

TRADING
1. Buying and selling securities or commodities on a short-term basis, hoping
to make quick profits.
2. More generally, any buying and selling of securities, commodities, goods,
or services

ONLINE TRADING

Before getting in to the online trading we should know some thing about the internet,
e-commerce and etc.

Internet : Internet is a worldwide, self-governed network connecting several other

smaller networks and millons of computers and persone, to mega sources of
information. The technology shrinks vast distances, accelerating the pace of
business reforms and revolutionizing the way companies are managed. It allows
direct, ubiquitous links to anyone anywhere and anytime to build up interactive
relationships.

A combination of time and space, called the internet promises to bring

unprecedented changes in our lives and business. Internet or net is an
interconnection of computer communication networks spanining the entire globe,
crossing all geographical boundaries. Net being an interactive two way medium,
through various websites, enables participation by individuals in business to
business and business to consumer commerce, visit to shopping arcades, games,
etc. in cyber space even the information can be copied, downloaded and
retransmitted.
The use of internet has grown 2000 percent in last decade and is currently growing at
10 percent per month. In india, growth of internet is of recent times. It is expected to
bring changes in every functional area of business activity including management
and financial services. It offers stock trading at a lower cost. Internet can change the
nature and capacity of stock broking business in india.

E-commerce: Electronic commerce is associated with buying and selling over

computer communication networks. It helps conduct traditional commerce through
new way of transferring and processing of information. Information is electronically
transferred from computer to computer in an automated way. E-commerce refers to
the paperless exchange of business information using electronic data inter change,
electronic technologies. It not only reduces manual processes and paper
transactions but also helps organization move to a fully electronic environment and
change the way they operated.
PCs and networking attempts to introduce banks of the tools and technologies
required for electronic commerce. The computers are either workstations of
individual offer works or service where large databases and information reside.
Network connects both categories of computers the various operating systems are
the most basis program within a computer. It managers the resources of the
computer system in a fair and efficient manner.
Now we can enter in to the concept known as online trading

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 market data.. The net brings data to the investor on-line and broking enables
him to trade on a click of mouse. Now information has become easily accessible to
both retail as well as big investor.
EVOLUTION OF BROKING IN INDIA :
The evolution of a broking in india can be categorized in three phases
1. Stockbrokers will offer on their sites features such as live
portfolio manager, live quates, market research and news, etc. to
attract more investors.
2. Brokers will offer online 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, i.e. customized services.

3. Brokers ( now e-brokers ) will offer value management or

services like initial public offering online, on-line asset allocation,
portfolio management, financial planning, tax planning, insurance
services, etc. and enables the investors to take better and well
considered decisions.
The actual definition of Online Trading is as explained below:
Online trading is a service offered on the internet for purchase and
sale of shares.
In the real world you place orders on your stockbroker either
verbally (personally or
telephonically) or in a written from ( fax ). In online trading, you
will access a

stockbrokers website through your internet enabled PC and place

orders through
the brokers internet based trading engine. These orders are routed
to the stock exchange without manual intervention and executed
thereon in a matter of a few seconds.
The net is used as a mode of trading in internet trading. Orders are
communicated to the stock exchange through website.
IN INDIA
Internet trading started in India on 1st April 2000 with 79 members
seeking permission for online trading. The SEBI committees on
internet based securities trading services has allowed the net to be
used as an Order Routing System (ORS) through registered stock
brokers on behalf of their clients for execution of transaction.
Under the ORS the client enters his requirements ( security ,
quantity, price buy / sell ) on brokers site.

TRADING OF NSE

The National Stock Exchange (NSE) is stock exchange located

at Mumbai, India. It is the 11th largest stock exchange in the world by market
capitalization and largest in India by daily turnover and number of trades, for
both equities and derivative trading. NSE has a market capitalization of
around US$1 trillion and over 1,652 listings as of July 2012.] Though a
number of other exchanges exist, NSE and the Bombay Stock Exchange are
the two most significant stock exchanges in India, and between them are
responsible for the vast majority of share transactions. The NSE's key index
is the S&P CNX Nifty, known as the NSE NIFTY (National Stock Exchange
Fifty), an index of fifty major stocks weighted by market capitalisation.
NSE is mutually owned by a set of leading financial institutions, banks,
insurance companies and other financial intermediaries in India but its
ownership and management operate as separate entities. There are at least
2 foreign investors NYSE Euronext and Goldman Sachs who have taken a
stake in the NSE. As of 2006, the NSE VSAT terminals, 2799 in total, cover
more than 1500 cities across India. In 2011, NSE was the third largest stock
exchange in the world in terms of the number of contracts (1221 million)
traded in equity derivatives. It is the second fastest growing stock
exchange in the world with a recorded growth of 16.6%.

The National Stock Exchange of India (NSE) is India's largest

securities exchange in terms of daily trade numbers. It offers
automated electronic trading of a variety of securities, including
equity, corporate debt, central and state government securities,
commercial paper, CDs, and exchange traded funds. The exchange
has more than 1,000 listed members. Owned by more than 20
different financial and insurance institutions, NSE specializes in
three market segments: wholesale debt, capital market (automated
screen-based trading system), and futures and options (derivatives,
the largest segment of the exchange). NSE started operations in
1994

Definition of 'National Stock Exchange (NSE) .NO'

Established in India in 1994 to provide a more transparent alternative to The
Bombay Stock Exchange. It is the largest stock Exchange in India in both
turnover and number of trades. The NSE is a national exchange integrating
the countrys stock markets through nationwide automated on-line screen

operations and electronic clearing and settlement. The exchanges products

include equities, exchange-traded funds, stock futures, index futures, interest
rate futures, and options. The S&P CNX Nifty, a diversified 50-stock index
representing 23 sectors of the Indian economy, is among the exchanges
major indices.

BOMBAY STOCK EXCHANGE

Established in 1875, BSE Ltd. (formerly known as Bombay Stock Exchange
Ltd. and established as "The Native Share and Stock Brokers' Association") is
one of Asias fastest stock exchanges, with a speed of 200 microseconds and
one of Indias leading exchange groups. BSE is a corporatized and
demutualised entity, with a broad shareholder-base that includes two leading
global exchanges, Deutsche Bourse and Singapore Exchange, as strategic
partners. BSE provides an efficient and transparent market for trading in
equity, debt instruments, derivatives, and mutual funds. It also has a
platform for trading in equities of small-and-medium enterprises (SME). Over
the past 139 years, BSE has facilitated the growth of the Indian corporate
sector by providing an efficient capital-raising platform.
More than 5000 companies are listed on BSE, making it the world's top
exchange in terms of listed members. The companies listed on BSE Ltd.
command a total market capitalization of USD 1.51 Trillion as of May 2014.

[1]

It is also one of the worlds leading exchanges (3rd largest in March 2014)

for Index options trading (Source: World Federation of Exchanges).

BSE also provides a host of other services to capital market participants,
including risk management, clearing, settlement, market data services, and
education. It has a global reach with customers around the world and a
nation-wide presence. BSE systems and processes are designed to safeguard
market integrity, drive the growth of the Indian capital market, and stimulate
innovation and competition across all market segments. BSE is the first
exchange in India and the second in the world to obtain an ISO 9001:2000
certification and the Information Security Management System Standard BS
7799-2-2002 certification for its On-Line trading System (BOLT). BSE also
provides depository services through its Central Depository Services Ltd.
(CDSL) arm.
BSEs popular equity index - the S&P BSE SENSEX - is India's most widely
tracked stock market benchmark index. It is traded internationally on the
EUREX as well as leading exchanges of the BRCS nations (Brazil, Russia,
China and South Africa). BSE has won several awards and recognitions that
acknowledge its work and progress, like India Innovation Award for the Big
Data implementation, ICICI Lombard and ET Now Risk Management BFSI
Company 2013, SKOCH Order of Merit Certificate (awarded to BSE Limited for
E -Boss for qualifying among India's Best 2013), The Golden Peacock Global
CSR Award (for its initiatives in Corporate Social Responsibility), NASSCOM CNBC-TV18s IT User Awards, 2010 in Financial Services category, Skoch
Virtual Corporation 2010 Award in the BSE StAR MF category, and
Responsibility Award (CSR) by the World Council of Corporate Governance. Its
recent milestones include the launching of BRICSMART indices derivatives,
BSE-SME Exchange platform, S&P BSE GREENEX to promote investments in
Green India.

Definition of 'Bombay Stock Exchange (BSE) .BO'

The first and largest securities market in India, the Bombay Stock Exchange
(BSE) was established in 1875 as the Native Share and Stock Brokers'
Association. Based in Mumbai, India, the BSE lists over 6,000 companies and
is one of the largest exchanges in the world. The BSE has helped develop the
country's capital markets, including the retail debt market, and helped grow
the Indian corporate sector.

INTRODUCTION TO STOCK EXCHANGE

A stock exchange is a nervous system of the capital marked changes in the
capital marked are brought about by a set of factors , all operating on the
market simultaneously. Such changes are subject to secular trends set but
the economic progress of the nation and governed by the factors like general
economic condition situation, financial and monetary policies, tax changes,
political environment, and international economic and financial development
etc. these trends are influenced to some extend by periodical cycles of boom
and depression in the free market economics. As against these long-term
trends, the buying and selling of major operators, the trading by the
investment financial institutions, speeches by the ministers and govt. and
spokesmen, statement by company chairmen and officials etc. while these
factors both long term and short term act as micro influences on the
cooperate sector. A stock exchange provides necessary mobility to capital
and directs the flow of the capital into the profitable and successful
enterprise.
A stock exchange is a place or a market where securities, share, debentures,
bonds, mutual funds of Joint Stock Company, central and state govt.
organization, local bodies and foreign govt. are bought and sold. A stock
exchange is a platform for the trade of already issued securities through
primary market. It is the essential pillar of the private sector and cooperate
economy. It is the open auction market where buyer and sellers meet and

involve a competitive price for the securities. It reflects hope aspirations and
fears of people regarding the performance of the economy. It exerts a
powerful and significant influence as a depressant or stimulant of business
activity. The trade in market is through the authorized members who have
duly registered with concerned stock exchange and SEBI.

MEANING OF STOCK EXCHANGE

STOCK EXCHANGE is a platform where buyers and sellers of securities
issued by government, financial institutions, corporate houses etc meet and
where the trading of these corporate securities take place the securities
which are traded in to stock exchange, are shares, debentures of public
companies, port trust utility undertakings and such other securities contract
(regulations) act, 1956 defines stock exchange as:

An association organization or body of

individuals,
whether
incorporated
or
assisting, regulating and controlling business
in buying, selling and dealing in securities
Stock exchange provides place for sale and purchase of securities i.e. shares,
bonds etc. It provides linkages between the savings of household sector and
investment in corporate sector or economy. It provides market quotation for
shares, debentures and bonds and serves as a role of barometer, not only of
the state of the health of the individual companies, but economy as a whole.
Since buying and selling of different type of securities takes place in stock
exchange. The prices of particular securities reflect their demand and supply.
In fact, stock exchange is said to be a barometer of economic and financial
health.

INTERNATIONAL STOCK EXCHANGE

The preliminary work on ISE had then realized that the smaller exchanges
would be better off only if they were united for optimally utilizing their
resources. In effect, 1995-96 was the first year when ISE faced the
competitive pressure of NSE and started working on this model. It has been a
significant task during the last 5 years to reach this level of completion and
credibility. The path has been difficult but we are sure it would be useful in
progressing further on this front. The process of the consolidation by ISE is
different from the usual merger route being followed by the exchanges
internationally due to sensitivity of the decision to merge. Therefore inter
connectivity of regional stock exchanges through a holding in the form of an
apex exchanges was chosen as an optimal path. There has been a lack of
initiatives from the trader and dealers to create liquidity in ISE during the last
three years. During the current year, with the establishment of the subsidiary
providing access to the NSE market, the traders and dealers became further
co placement to trade on ISE, as NSE became the preferred Route of doing
business.

FUTURE PLANS:
The current market scenario in the capital market is not very encouraging,
however, in the future; the business models of ISE would be the most
preferred method of accessing multiple markets with low cost and high
credibility of an exchange. ISE id considering several value added services or
new products. We are considering derivatives segment through NSE and DP
services initially for the participants and later for clients through CDSL and
NSDL. On account of this philosophy we are proposing to implement most of
new products centrally on ISE, like internet trading, IPO segment,
dissemination etc. We are also considering in providing them entry into
securities industry. This market is expected to provide liquidity in small
capital companies as the other national level markets have a higher entry
norm and may not cater to this market.

FEATURES OF STOCK EXCHANGE

1. It is the place where listed securities are bought and sold.

2. It is an association of persons known as members.

3. Trading in securities is allowed under rules and regulations of stock

exchange.

4. Membership is must for transacting business.

5. Investors and speculators, who want to buy and sell securities, can do
so through members of stock exchange i.e. brokers.

HISTORY OF STOCK EXCHANGE

The trading of securities in India was started in early 1973. The only
stock exchange operating in the 19century were those of Bombay set
up in 1875 and in Ahmedabad set up in 1894. These were organized as
voluntary non-profit making associational of brokers to regulate and
protect their interests. Before the control on securities trading become
a central subject under the constitution in 1950. It was a stage subject
and Bombay securities contract (control) act of 1925 used to regulate
trading in securities. Under this act, Bombay stock exchange was
recognized in 1927 and Ahmedabad stock exchange in 1937. During

the war boom , a number of stock exchanges were organized at

Bombay, ahmedabad and other centres but they were not recognized
soon after it become a central
subject, central legislation was
proposed and committee headed by ah. A.D.GORWALA went into bill
for security regulations. On the basis of securities contracts act
become law in 1956. At present there were 24 recognized stock
exchanges in India.

FUNCTIONS OF STOCK EXCHANGE

A) The stock exchange provides appropriate conditions where by
purchase and sale of securities takes place at reasonable and fair
prices.
B) The stock exchange provides a ready market for the conversion of
existing securities into cash and vice-versa.
C) People having surplus funds invest in securities and these funds are
used for industrialization and economic development of country that
leads to capital formation.

D) Stock exchange protects the interests of investors through strict

enforcement of rules and regulations with respect of dealing.
E) Stock exchange act as a centre of providing business information
relating to enterprise whose securities are traded as the listed
companies are to present their financial and other statement to it.
F) The management and working of companies are influenced by a
great extend by stock exchange in public interest.

G)Stock exchange ensures inevitable funds or capital to flow in to the

most profitable enterprises.

WHO BENEFITS FROM STOCK

EXCHANGE
INVESTORS:

It provides them liquidity, marketability, safety

etc of investment.

COMPANIES:

It provides them access to market funds,

higher rating and public interests.

BROKERS:

They receive commission in lieu of their

services to investors.

ECONOMY AND COUNTRY: There is large flow of

saving, better growth and moves industries, and higher
incomes.

MAJOR STOCK EXCHANGES IN INDIA

1.

NSE

2. BSE

BOMBAY STOCK EXCHANGE

VISION:

Emerge as premier
establishing global benchmarks

Indian

stock

exchange

by

Established in 1875 as The native share & stock broker association in

1875. The Bombay stock exchange limited located at Dalal Street ,
Mumbai , India.One of the oldest stock exchanges in India Worlds no. 1
exchange in terms of listed companies in the world. Has 4900 listed as
of August 2007. It is first stock exchange in India and second in world
for obtaining ISO9001:2000 certification. Market capitalization of the
companies listed on the BSE was US$1.79 Trillion. Largest stock
exchanges in South Asia & 12th largest in the world. It has launched
T+2 settlement in 1april,2000.

EXCHANGE

NATIONAL STOCK

The national stock exchange of India limited is a Mumbai based stock

exchange. NSE is established in 1992. It is largest stock exchange in
India in terms of daily turnover. It is owned by the group of leading
financial institutions such as Indian Bank or Life Insurance Corporation

of India. It is totally demutualization exchange. It is largest and most

advanced exchange with 1016 companies listed and 726 trading
members. Fully automated screen based trading platform NEAT. NSE
takes 14th position in the top 40 future exchanges in the world. It was
the first exchange in India that started trading stock on the internet in
2000.NSE has market capitalization of around Rs 47,01,92cr (7 August
2009 ).

Shareholders of NSEIL
1. Industrial Development Bank of India Limited
2. Industrial Finance Corporation of India Limited
3. Life Insurance Corporation of India
4. State Bank of India
5. ICICI Bank Limited
6. IL & FS Trust Company Limited
7. Stock Holding Corporation of India Limited
8. SBI Capital Markets Limited
9. The Administrator of the Specified Undertaking of Unit Trust of India
10. Bank of Baroda
11. Canara Bank
12. General Insurance Corporation of India
13. National Insurance Company Limited
14. The New India Assurance Company Limited
15. The Oriental Insurance Company Limited
16. United Insurance Company Limited
17. Punjab National Bank
18. Oriental Bank of Commerce
19. Corporation Bank
20. Indian Bank
21. Union Bank of India

Shareholders of BSEIL
1. Industrial Development Bank of India Limited
2. Industrial Finance Corporation of India Limited
3. Life Insurance Corporation of India
4. State Bank of India
5. ICICI Bank Limited
6. IL & FS Trust Company Limited
7. Stock Holding Corporation of India Limited
8. SBI Capital Markets Limited
9. The Administrator of the Specified Undertaking of Unit Trust of India
10. Bank of Baroda
11. Canara Bank
12. General Insurance Corporation of India
13. National Insurance Company Limited
14. The New India Assurance Company Limited
15. The Oriental Insurance Company Limited
16. United Insurance Company Limited
17. Punjab National Bank
18. Oriental Bank of Commerce
19. Corporation Bank
20. Indian Bank
21. Union Bank of India

RECOMMENDATION

CONCLUSION
1. Thinks have changed for the better with the sharekhan going on-line coupled
with endeavour to stream line whole trading system, things have changed
dramatically over the last 3 to 4 years . New and advanced technologies have
breached geographical and cultural barriers, and have brought the
countrywide market to doorstep.
2. In the present scenario to compete with the Brokers would require sound
infrastructure and trading as per international standards.
3. The introduction of on-line trading would influence the investors resulting in
an increase in the business of the exchange. It has helped the brokers
handing a vast amount of transactions and this can be an efficient trading,
delivering, settlement system with adequate protection to investors. The
trading of sharekhan of the first day was Rs. 1.8 crores.
4. Due to invention of online trading there has been greater benefit to the
investors as they could sell / buy shares as and when required and that to
with online trading.
5. The brokers has a greater scope than compared to the earlier times
because of invention of online trading.
6. The concept of business has changed today, this is a service oriented
industry hence the survival would require them to provide the best possible
service to the clients.
7. I recommend the exchange authorities to take steps to educate investors
about their right and duties. I suggest to the exchange authorities to
increase the investors confidences.
8. I recommend the exchange authorities to be vigilant to curb wide
fluctuations of prices.
9. The speculative pressures are responsible for the wide changes in the price
not attracting the genuine investors to the greater extent towards the
market.
10.Genuine investors are not at all interested in the speculative gain as their
investment is based on the future profits, therefore the authorities of the
exchange should be more vigilant to curb the speculation
11.Necessary steps should be taken by the exchange to deal with the situations
arising due to break down in online trading.

OBJECTIVES :
Internet trading is expected to
1. Increase transparency in the markets.
2. Enhance market quality through improved liquidity, by increasing
quote continuity and market depth.
3. Reduce settlement risks due to open trades, by elimination of
mismatches.
4. Provide management information system.
5. Introduce flexibility in system, so as to handle growing volumes
easily and to support nationwide expansion of market activity.
6. The objective of the study is to analyze the possibility of taking
advantage of arbitrage mechanism of the blue chip scrips of core
sectors of Indian economy, traded in NSE and BSE.
7. Ten blue chip scrip of five core sectors are studied for evaluation.
8. The share prices of these scrips are being taken for analysis for
the period of two months, October 2007 and November 2007.
9. Closing prices of each share in the two exchange are taken for
analysis.
10.
The difference in the prices is analyzed for any scope of
arbitration.
Besides, through internet trading three fundamental objective of
securities regulation can be easily achieved, these are:
a. Investor protection
b. Creation of a fair and efficient market and
c. Reduction of the systematic risks

Some of the brokers offering net trading include ICICI direct,

kotakstreet, etc.

BIBLIOGRAPHY
BOOKS:

INVESTMENT MANAGEMENT V.K. BHALLA

INVESTMENT MANAGEMENT RREETHI SINGH
MARKETING OF FINANCIAL SERVICES V.A. AVADHANI
INDIAN FINANCIAL SYSTEM M.Y.KHAN
FINANCIAL MANAGEMENT PRASANNA CHANDRA
SECURITY ANALYSIS & PORTFOLIO MANAGEMENT FISHERE
& JORDON

WEBSITES:
1. WWW.SEBI.GOV.IN
2. WWW.BSEINDIA.COM
3. WWW.NSEINDIA.COM
4. WWW.INDIABUDGET.NIC.IN

5. WWW.ANGELTRADE.COM
6. WWW.LSE.CO.IN

THANKU