Demat and Online Trading

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A REPORT ON
DEMAT AND ONLINE TRADING 
AT
BONANZA PORTFOLIO LIMITED
Project report Submitted in the
Partial fulfillment for the award of
MASTER OF BUSINESS ADMINISTRATION
By
HIMANSHU SHARMA
GOVT. ENGEENERING COLLEGE JHALAWAR( RAJ.)
( RAJASTHAN TECHNICAL UNIVERSITY, KOTA)

 
 

CONTENTSPAGE NO.S
CHAPTER-1Y
INTRODUCTION OF STUDY1
CHAPTER-26
* LITERATURE REVIEW42
CHAPTER-3
* COMPANY PROFILE 46
CHAPTER-4
* DATA & INTERPRETATION ANALYSIS
CHAPTER-5 60
* OBSERVATIONS
* CONCLUSIONS
* SUGGESTIONS

CHAPTER-6

* BIBLIOGRAPHY64

         

CHAPTER – 1

INTRODUCTION TO STUDY

DEMATERIALIZATION:
Dematerialization is the process of converting the physical form of shares into electronic form. Prior to dematerialization the Indian stock markets have faced several problems like delay in the transfer of certificates, forgery of certificates etc. Dematerialization helps to overcome these problems as well as reduces the transaction time as compared to the physical segment. The article discusses the procedures, advantages and problems of dematerialization. The Indian Stock markets have seen a major change with the introduction of depository system and scrip less trading mechanism. There were various problems like inordinate delays in the transfer of share certificates, delay in receipt of securities and inadequate infrastructure in banking and postal segments to handle a large volume of application and storage of share certificates .To overcome these problems physical dealing in securities should be eliminated . The Indian stock market introduced the system of dematerialization recognizing the need for scrip less trading. According to the Depositories Act, 1996, an investor has the option to hold shares either in physical or electronic form .The process of converting the physical form of shares into electronic form is called dematerialization or in short demats. The converted electronic data is stored with the depository from where they can be traded. It is similar to a bank where an investor opens an account with any of the depository participants. Depository participant is a representative of the depository .The DP maintains the investors securities account balances and intimates him about the status of holdings. ONLINE TRADING

Online Trading is an easy way to buy and sell shares from the comfort of one’s place instead of trading through individual stockbroker and broking firms, the customer can transact with the help of mouse click and his visits to the neighborhood broker will become a thing of the past. Even the older generation is adapting the online trading route. Find the right depository to provide with an online trading account can be difficult, but many banks and companies offer excellent services for online trading. Our needs will determine which online broker is best for us. Online trading brings in total transparency between broker an investor in case of secondary market operation. Whether we are buying a mutual fund, investing in commodities market or any other transaction can be performed with minimal fuss. In India presently online trading can take place through order routing system, which will route client orders to exchanges trading system for execution of trade on stock exchange (NSE and BSE). One of the measure attractions of online trading is the wealth of free commentary and analysis about stock market and global economy. Any investor with an ounce of market saviness can extract all the data needed to make trading decisions and complete the trades. An...
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