03-06-2013, 03:20 PM
Angel Broking Ltd
Angel Broking.doc (Size: 1.96 MB / Downloads: 23)
EXECUTIVE SUMMARY
The Angel Group has emerged as one of the top 5 retail stock broking houses in India, having memberships on BSE, NSE and the two leading commodity exchanges in the country i.e. NCDEX and MCX. Angel Broking Ltd is also registered as a depository participant with CDSL. Angel Broking Ltd. has been awarded the coveted Major Volume Driver trophy for the year 2004-05 by the CEO and MD of BSE, Mr. Rajnikant Patel. Angel must be able to exceed their customers by delivering them world-class services.
The objective of the study was to find out the future scenario of E-Broking. The need for this study is to know the future potential customer and can make a strategy for the capture the market.
The introductory part of the study is focused on theoretical framework of study topic "Future scenario of E-Broking."
The second half of the study is based on the analysis of questionnaire. Here instrument used towards "The E-Broking" is questionnaire.
Samples were collected from different walks of the life, which includes professional, government people, business people, employee, hose wives, farmers, etc. The study ends with major findings and conclusion.
Overview of the Industry
INDIAN CAPITAL MARKET: AN OVERVIEW
Evolution:-
This paper reviews the evolution of the Indian capital market and describes its current status. It shows how the Indian market has gone through a process of modernisation and structural transformation during the last few years. Indian Stock Markets are one of the oldest in Asia. Its history dates back to nearly 200 years ago. The earliest records of security dealings in India are meagre and obscure. The East India Company was the dominant institution in those days and business in its loan securities used to be transacted towards the close of the eighteenth century. By 1830’s business on corporate stocks and shares in Bank and Cotton presses took place in Bombay. Though the trading list was broader in 1839, there were only half a dozen brokers recognized by banks and merchants during 1840 and 1850.
The 1850’s witnessed a rapid development of commercial enterprise and brokerage business attracted many men into the field and by 1860 the number of brokers increased into 60.In 1860-61 the American Civil War broke out and cotton supply from United States of Europe was stopped; thus, the ’Share Mania’ in India begun. The number of brokers increased to about 200 to 250. However, at the end of the American Civil War, in 1865, a disastrous slump began (for example, Bank of Bombay Share which had touched Rs 2850 could only be sold at Rs. 87).At the end of the American Civil War, the brokers who thrived out of Civil War in 1874, found a place in a street (now appropriately called as Dalal Street) where they would conveniently assemble and transact business.
INDIAN STOCK EXCHANGES – HISTORICAL GROWTH
The Second World War broke out in 1939. It gave a sharp boom, which was followed by a slump. But, in 1943, the situation changed radically, when India was fully mobilized as a supply base.
On account of the restrictive controls on cotton, bullion, seeds and other commodities, those dealing in them found in the stock market as the only outlet for their activities. They were anxious to join the trade and their number was swelled by numerous others. Many new associations were constituted for the purpose and Stock Exchanges in all parts of the country were floated.
The Uttar Pradesh Stock Exchange Limited (1940), Nagpur Stock Exchange Limited (1940) and Hyderabad Stock Exchange Limited (1944) were incorporated.
In Delhi two stock exchanges - Delhi Stock and Share Brokers’ Association Limited and the Delhi Stocks and Shares Exchange Limited - were floated and later in June 1947, amalgamated into the Delhi Stock Exchange Association Limited.
HISTORY OF ONLINE TRADING
Online stock trading is very old concept for big institutions that trade thru private networks owned by Reuter's "Instinet" and a system called "Posit" since 1969. But it becomes Internet based for laymen only in late 90s.
Funny, that actually idea was first time used by a company making Beer called "WIT beer" to help its shareholders trade its shares. That’s how "WIT Capital" was born which is considered pioneer of this concept. It was made mainstream and household name by a offshoot of Charles Schwab & Co called eSchwab which is used by millions of people in USA. Lot of NRI's I know play in US stock market even when they come to India for holidays via website of eSchwabe.
There are other serious players like E*trade, DATEK online etc. All this companies ask you to start account with US $5000 and you can buy and sell stock using these funds. They also issue you a checkbook, which you can use to make payments from this account. Or use their ATM card to withdraw cash from your stock trading account.
OBJECTIVES OF INTERNET TRADING
• Increase transparency in the markets.
• Enhance market quality through improved liquidity, by increasing quote continuity and market depth.
• Reduce settlement risks due to open trades, by elimination of mismatches.
• Provide management information system (MIS).
• Introduce flexibility in system, to handle growing volumes easily and to support nationwide expansion of market activity.
• Besides, through Internet trading three fundamental objectives of securities regulation can be easily achieved, these are: Investor protection, creation of a fair and efficient market and, reduction of the systematic risks.
FACTORS TO KEEP IN MIND WHILE SELECTING ONLINE BROKERS
Brokerage cost:-
It is important to weigh up the subscription and trading costs charged by an online broker against benefits offered by the site. All online brokers display their charges on their sites. Some make sure you find the charges easily, while with others you will have to search a bit.
Safety:-
Please make sure site has 128-bit encryption to ensure safety of transaction online. ICICIDirect.com, 5paisa.com are few sites with 128-bit encryption. You normally get a secured Login id and password. It is always advisable to frequently change trading password. Ideally online trading site should be fully integrated. The greater the backward integration, the better it is for the customer. Ideally broking account, demat account and bank account should be linked electronically.
Rate refresh:-
Rate refresh has to be real-time with no time lag. The speed and reliability comes with huge investment in technology. It is always advisable to check rates of online broking sites with BSE/ NSE terminal rates.
Speed of execution:-
System has to be fast and reliable that does just one job- executes your trades. The last thing you need is a site that is heavily congested with the users who are downloading heavy jpeg graphs or pulling the latest story why market is moving. The site should be one click wonder where squaring off all your positions or canceling all your pending orders takes one click and a confirmation of action.
Trading limit:-
For trading, all sites provide 4 times buy and sell limit against margin money put in by customer. For delivery of shares, buying limit is equal to margin money put in by customer. Couple of sites also provides margin funding for buying of shares.