Analysis of demat account and online trading Essay

The commencement of E-Trading and Demat has transformed the not bad(p) market in India. With the help of Demat and Trading identify, spoiling and tradeing of sh ars has mother a much faster and take down process than craft with the assist of a sensible constituent. It provides for the assimilation of brink, factor, nisus change over and depository participants. This helps to pop out rid of the painstaking military operation of investing in stock exchange. Today, if unity wants to invest in stock market, he has to contact a broker on ph star or meet him personally to place order.A broker generally gives such importance and additional service whole to high net worth customers. But the introduction of Internet trading, even a common or a small investor gets an opportunity to apply the service at an affordable price which is much lesser than what is aerated by a physical broker over the phone. Online trading has accustomed customer a real time access to forecast inf ormation, stock quotes elaborated market research and interactive trading.The prerequisites of Internet trading argon a computer, a modem and a telephone connection, registration with broker, a swear a/c and depository rate. The introduction of depository service is considered as the beginning of the trading of Stocks click. This means that you heap arrange delivery of scrips change bothtime, any(prenominal)where to anyone by click of a mouse. Dematerialization facilitates to keep the securities in electronic form instead of paper form. It offers more advantageous than the physical present form. Despite the advantages of Dematerialization, the awareness levels among the investors relating to Demat discover is not adequate because of numerous reasons. The investors are not sufficiently responsive of the concept of Demat account and the various pecuniary institutions providing such serve.ObjectivesAn objective is the brainchild behind any project report. A project report g o out always have a trusted objective which brings to be accomplished. Following are the objectives behind the expression of my project at Indiabulls securities Ltd. To Compare Indiabulls Online share trading account with the walloping players in the Market i.e. ICICI, KARVY, HDFC, RELIENCE MONEY as well as with INDIA INFOLINE account the areas where INDIABULLS Scores above its competitors and what are its weak links. Know the market strength of INDIABULLS considering the fact that there are many competitors in this theater with virtually more firms expected to join the fray in the near future. This will be fag oute with the help of a questionnaire. Provide suggestions to the company regarding what else it can do to stand apart in this ever competitive field and thereby emerge as a market leader. To understand the company, its achievements and tasks, products and services and also to collect information about its competitors, its products and services offered. After apprec iation and collecting information about the organization and its competitors, a trainee will be able to work well for the organization. To Study present online share tradingIntroductionDemat refers to a dematerialized account. Just as we have to open an account with a bank if we want to save your money, make cheque payments etc, we need to open a demat account if we want to buy or cheat on stocks. So it is just like a bank account where veridical money is replaced by shares. We have to approach the DPs (remember, they are like bank branches), to open our demat account.Demat account allows you to buy, sell and transact shares without the endless paperwork and delays. It is also safe, honest and convenient.Lets say our portfolio has 100 of Satyam, 50of Suzlon, 20 of ICICI BANK, 50 of tech Mahindra and 100 of TCS shares. All these will show in our demataccount. So we dont have to possess any physical certificates showing that us own these shares. They are all held electronically in our account. As we buy and sell the shares, they are adjusted in our account. Just like a bank passbook or statement, the DP will provide you with annual statements of holdings and transactions.Individuals, companies, Trusts, Partnership firms, NRIs, HUF, Banks and Institutions are allowed to open a depository account with any depository through a depository participant. The investor would need to execute a standard form giving all his details, bank details, instruction details, nominating speech details and off-course photograph and signature. Along with this form, the investor would also have sign an bargain with the depository participant which usually forms a standard part of the account opening process. The details on the form have to be matched with a photo write of the investors passport, driving license etc. to certify the mentioned details. If the investor is an NRI, thusly the client will have to provide overseas address, provide copy of RBI Approval, if any. The RBI Approval is not mandatory for opening of a DP. Account but is required to go through shares into the account when purchased through the collateral market.Procedure for Purchasing Dematerialized SecuritiesThe office for purchasing dematerialized securities is also similar to the procedure for buying physical securities.1. Investor instructs DP to receive credits into his account in the Prescribed form. There may be one time standing(a) instruction or Separate instruction each time to receive credits.2. Investor purchases securities in any of the stock exchanges linked to Depository through a broker.3. Broker receives payment from investor and arranges payment to Clearing corporations.4. Broker gives instructions to DP to calculate clearing account and credit Clients account. Investor receives shares into his account by way of book entryProcedure for Selling Dematerialized SecuritiesThe procedure for selling dematerialized securities in stock exchanges is similar as selling physi cal securities. The only major difference is that instead of delivering physical securities to the broker, the investor instructs his DP to debit his demat account with the number of securities sold by him and credit the brokers clearing account. The procedure for selling dematerialized securities is given below1. Investor sells securities in any of the stock exchange linked to depository through a broker.2. Investor instructs his DP to debit his demat account with the number of securities sold and credit the brokers clearing account.3. onward the pay-in-day, broker of the investor stirs the securities to clearing corporation.4. The broker receives payment from the stock exchange.5. The investor receives payment from the broker for sale of securities in the same manner as received in case of sale of physical securities.Benefits of Dematerialization Account Safety If we are holding our shares, bonds etc in physical (paper) form, there are chances of its theft, mutilation, and loss . Moreover, we are also undetermined to the risks of fake papers, bad-delivery or delays at the time of transfer of physical securities. However, in DEMAT accounts we can preserve our long-term investments safely and securely. Convenience When we want to sell our dematerialized shares or redeem our debentures in DEMAT account there are no hassles of filling up transfer forms, sending redemption requests or any other messy, costly and time-consuming paper work. We can conveniently transfer our securities through electronic transfers or just by signing one Delivery Instruction Slip, which is nothing but our chequebook for DEMAT Accounts. elongation www.Indiabulls.comwww.Investopedia.comwww.powerindiabulls.comwww.bseindia.comwww.nseindia.comwww.moneycontrol.comwww.equitymarket.comwww.demat.com