A STUDY ON EVALUATION OF ONLINE TRADING by IRJET Journal

WhenInternethasaffectedallsectorshecould“stockmarkets”themostimportantplayeroftheeconomy,hasremained farbehind? Likeall other sectorsInternet hasset itsfeetin thestock marketsalso. Internet trading commissionsareclearly postedonthewebsitesofthevariousservices,andaretypicallyafixedratecharge,dependinguponthetypeofsecuritybeing tradedandthesizeoftrade.Intheory,therefore,anInterestinvestoralwaysknowswhatcommissionheisbeingchargedon each trade.Internet investors can take as much time as they would like to take prior to placing a trade order. Similarly the onlineinvestorlikelydoesnothavetoworrythathisbrokerismakingunauthorizedtrades.Sincethereisnoindividualbroker making a commission, the only person who is authorized tot race in an account is the actual investor. Furthermore, the internet investor can never become a victim of excessive trading (where for the broker) since the investor maintains total controloverthenumberoftransactionswhichtakeplacein theaccount.Allofthesepositivefeaturesofinternettradingmay leadtheunwaryinvestortobelievethatInternettradingisawaytotakecontroloftheirfinancesandsavemoremoneyinthe process.Unfortunately,thisisnotalwaysthecase.TheadvantagesofInternetstocktradinghavealsoitsweaknessesandthese weaknessespresentsignificantdrawbacksfortheaverageinvestor.Firstandforemost,theaverageinvestorisnotanexpert in thefinancialmarkets.Thereisadangerforallowingthe autonomyofonlinetradingtohullyouintothebeliefthatyouarean expert investor. An online investor sitting at home at a personal computer also foregoes proper investment advice and financial planning, perhaps among the most valuable services provided by traditional brokers.24There are, of course, additional risks relative to performing transactions over the Internet especially on a shared computer. Those people whom investorshaveprovidedtheiraccountnumberandpasswordcanfreelytradethataccountwhiletheinvestorwillhavelittle,if any, resource against the brokerage firm for the breach of security.Customer satisfaction is a measure of how products and servicessuppliedbyacompanycanmeetthecustomer’sexpectations.Customersatisfactionisstilloneofthesinglestrongest predictorsofcustomerretention.It’sconsiderablymoreexpensivetoattractnewCustomersthanitistokeepoldoneshappy In a climate of decreasing brand loyalties, Understanding customer service and measuring customer satisfaction are very crucial.

II REVIEW OF LITERATURE

“OnlinestocktradinginIndia:Anempiricalinvestigation”In2021,NicheWailandReminderKumar'sresearchreport examinedtheinvestors' preference for traditional tradingandonlinetrading,investor’s perception on Online trading & comparingcurrentusageofonlinetradingandofflinetrading.Thisstudyrevealsthatoutofevery100investorsonly28trade online, which points out a question as why investors were not able to realize the importance of technology in stock trading. The major findings of the study are the Indian investors are more conservative, they do not change brokers for trading, whereasnettradersaremorecomfortablewithonlinetradingforitstransparencyandcompletecontroloftheterminal

ABSTRACT: Astudyonevaluationofonlinetradingfacilitieswithreferencetofinancialservicesofvarioussectors.Themain objectiveoftheresearchwastoevaluatetheonlinetradingfacilitiesofwhichwascarriedoutaperiodof specifieddeals.This paperstudyconductedisdescriptiveinnatureandthesamplesizeusedforthisstudyis200.Themethodusedforthisstudyis Primary and secondary data collection method. For colleting the data structured questionnaire was used in this study. Percentage analysis and graphical representation were used for analyzing and interpretation. This paper mainly focuses on customer feedback and suggestions that would be useful to to take necessary actions to solve them in a better manner. The findingsrevealedthatmostoftherespondentsaresatisfiedwiththeonlinetradingfacilitiesprovidedbytheorganization.The workwouldsurelyhelptoforecaststhecustomerneedsandhelpthecompanytotakethenecessarysteps.

A STUDY ON EVALUATION OF ONLINE TRADING

Keywords: OnlineTrading,E BusinessDevelopment,Businesspromoting.

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I. INTRODUCTION

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

Dr.C.K.Gomathy, Assistant Professor in CSE, SCSVMV University, Kanchipuram 2Ms.C K Hemalatha, Associate Professor in MBA, LVEC, Kanchipuram ***

TRADING

ONLINE TRADING: INDIAN SCENARIO

TradinginIndianstockexchangesislimitedtolistedsecuritiesofpubliclimitedcompanies.Theyarebroadlydivided into two categories, namely, specified securities (forward list) and non specified securities (cash list).. Two types of transactionscanbecarriedoutontheIndianstockexchanges:(a)spotdeliverytransactions"fordeliveryandpaymentwithin thetimeoronthedatestipulatedwhenenteringintothecontractwhichshallnotbemorethan14daysfollowingthedateof thecontract”:and(b)forwardtransactions"deliveryandpaymentcanbeextendedbyfurtherperiodof14dayseachsothat theoverallperioddoesnotexceed90daysfromthedateofthecontract".Thelatterispermittedonlyinthecaseofspecified shares.The brokers who carry over the outstanding pay carry over charges (cantango or backwardation), which are usually determinedbytheratesofinterestprevailing.AmemberbrokerinanIndianstockexchangecanactasanagent,buyandsell securitiesforhisclientsonacommissionbasisandalsocanactasatraderordealerasaprincipal,buyandsellsecuritieson hisownaccountandrisk,incontrastwiththepracticeprevailingonNewYorkandLondonStockExchanges,whereamember canactasajobberorabrokeronly.ThenatureoftradingonIndianStockExchangesarethatofageoldconventionalstyle of face to facetradingwithbidsandoffersbeingmadebyopenoutcry.However,thereisagreatamountofefforttomodernize theIndianstockexchangesintheveryrecenttimes.

Over The Counter Exchange of India (OTCEI)

ThetraditionaltradingmechanismprevailedintheIndianstockmarketsgavewaytomanyfunctionalinefficiencies,suchas, absence of liquidity, lack of transparency, unduly long settlement periods and benami transactions, which affected the small investorstoa great extent.Toprovideimprovedservicestoinvestors, the country'sfirst ringless,scrip less, electronicstock exchange OTCEI wascreatedin1992bycountry'spremierfinancialinstitutions UnitTrustofIndia,IndustrialCreditand InvestmentCorporationofIndia,IndustrialDevelopmentBankofIndia,SBICapitalMarkets,IndustrialFinanceCorporationof India,GeneralInsuranceCorporationanditssubsidiariesandCanBankFinancialServices.TradingatOTCEIisdoneoverthe centersspreadacrossthecountry. SecuritiestradedontheOTCEIareclassifiedinto: _ListedSecurities _PermittedSecurities

III.ONLINE TRADING PATTERN

Tradingisdefined asbuyingandsellingsharesinstock exchanges.Therearetwotypesof tradingi.e.onlinetrading (viainternet)andofflinetrading(viabrokerorcall).Gonearethedayswhentheinvestormusthaveastockbrokertodealin stocksandmakeinvestments.Inthisageofinternet,wheneverythingisgoingonline,stocktradinghasalsogoneonline.Just like the offline stock trading investor can now buy or sell stocks online with just a few clicks of the mouse. There are obliviouslysomeadvantagesandsomedisadvantagesofboththeseformoftrading.

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Trading Pattern of the Indian Stock Market

In the Indian context, online trading can be rightly called as a recent phenomenon, which took with the change of centuryi.e.April2021,andeventilldayonlinetradingisnotmuchpopularamonginvestorsforwhichalistoffactorscanbe blamed.ThisfactismoreclearlyfromtheinformationavailablethatwhilenumberofstockexchangesinIndiahasgrownfrom 7 exchanges in1946 to total 53 exchanges till 2020 Only 2 stock exchanges are providing online share trading. Indian stock exchangeshavestartedadoptingtechnologybecauseitprovidesthenecessaryedgeandensuretimelinessandsatisfactionin customer service. However mainly 5 companies control 90 5 of the market in internet trading, ICICI direct.com has around 50% market share, whereas? India Bullshold26%share, other dominant players are Kodak Securities and Share khan. ICICI has beenabletogainitsdominantpresenceinInternettradingbecausetheyhavestrongconnectivityofstocktrading,demat account, bank account, etc., ICICI Direct has recorded 6, 75,000 registered customers and has become 19th larger online brokerinUSwhereasSharekhanand5paisaareloosingtheirway.

Volume: 09 Issue: 01 | Jan 2022 www.irjet.net p-ISSN: 2395-0072

TherearetwokindsofplayersinNSE:

National Stock Exchange (NSE)

TradingatNSEcanbeclassifiedundertwobroadcategories:

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

(a)Wholesaledebtmarketand (b)Capitalmarket Wholesaledebtmarketoperationsaresimilartomoneymarketoperations institutionsandcorporatebodiesenterintohigh valuetransactionsinfinancialinstrumentssuchasgovernmentsecurities,treasurybills,publicsectorunitbonds,commercial paper,certificateofdeposit,etc.

Trading members can stay at their offices and execute the trading, since they are linked through a communication network.Thepricesatwhichthebuyerandsellerarewillingtotransactwillappearonthescreen.

Whenthe pricesmatch the transaction will becompletedanda confirmationslip will beprintedat the office ofthetrading member.NSEhasseveraladvantagesoverthetraditionaltradingexchanges.Theyareasfollows: _ NSE brings an integrated stock market trading network across the nation. Investors can trade at the same price from anywhereinthecountry.

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OTC has a unique feature of trading compared to other traditional exchanges. That is, certificates of listed securities and initiateddebenturesarenot tradedatOTC. The original certificate will besafelywiththecustodian.But,a counter receiptis generated outat the counter,whichsubstitutes the sharecertificate and isused for all transactions.Inthecase ofpermitted securities,thesystemissimilartoatraditionalstockexchange.Thedifferenceisthatthedeliveryandpaymentprocedurewill becompletedwithin14days.ComparedtothetraditionalExchanges,OTCExchangenetworkhasthefollowingadvantages: _ OTCEI has widely dispersed trading mechanism across the country, which provides greater liquidity and lesser risk of intermediarycharges. _Greatertransparencyandaccuracyofpricesisobtainedduetothescreenbasedscriplesstrading. _sincetheexactpriceofthetransactionisshownonthecomputerscreen;theinvestorgetstoknowtheexactpriceatwhich s/heistrading. _Fastersettlementandtransferprocesscomparedtootherexchanges. Thus,withthesuperiortradingmechanismcoupledwibecomingawareofthemanifoldadvantagesoftheOTCEI.

WiththeliberalizationoftheIndianeconomy,itwasfoundinevitabletolifttheIndianstockmarkettradingsystemon parwiththeinternational standards. On the basisof therecommendationsof high powered Pherwani Committee, Industrial DevelopmentBankofIndia,IndustrialCreditandInvestmentCorporationofIndia,IndustrialFinanceCorporationofIndia,all InsuranceCorporations,selectedcommercialbanksandothersincorporatedtheNationalStockExchangein1992.

(a)Tradingmembersand (b)Participants.Recognized members of NSE are called trading members who trade on behalf of themselves and their clients. Participants includetrading members andlarge players likebankswho takedirect settlement responsibility. TradingatNSE takesplacethroughafullyautomatedscreen basedtradingmechanism,whichadoptstheprincipleofanorder drivenmarket.

_Initiateddebentures

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

Now a day’s most of the people are interested in investment in shares by through online terminals. So most of the peopleareexpectingmorefacilitiesintheonlineportalsthecompany,sothatonlinetradingisconsiderasimportantarea for thisstudy.Theonlinetradinguser’sexpectationsandopinionsarevaryingfromonetoanotherbecausebasedonthefacilities of online trading platform of the company. So the purpose of the study is to evaluate the online trading facilities which are offeredtothecustomers,fromthisstudytofindthecustomer’sopinionandsatisfactionlevelontheonlinetradefacilities.

Since then, the country's capital markets have passed through both good and bad periods. The journey in the 20th centuryhasnotbeenaneasyone.Tillthedecadeofeighties,therewasnoscaleto measuretheupsanddownsintheIndian stockmarket.TheExchange,Mumbai(BSE)in1986cameoutwithastockindexthatsubsequentlybecamethebarometerof the Indian stock market. SENSEX is not only scientifically designed but also based on globally accepted construction and reviewmethodology.Firstcompiledin1986,SENSEXisabasketof30constituentstocksrepresentingasampleoflarge,liquid andrepresentativecompanies.ThebaseyearofSENSEXis1978 79andthebasevalueis100.Theindexiswidelyreportedin bothdomesticandinternationalmarketsthroughprintaswellaselectronicmedia.TheIndexwasinitiallycalculatedbasedon the "Full Market Capitalization" methodology but was shifted to the free float methodology with effect from September 1, 2003. The "Free float Market Capitalization" methodology of index construction is regarded as an industry best practice globally.

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_Delays incommunication, latepaymentsandthemalpractice’sprevailinginthetraditional tradingmechanismcanbe done awaywithgreateroperational efficiencyandinformational transparencyinthestock marketoperations,with thesupportof totalcomputerizednetwork.Unlessstockmarketsprovideprofessionalsservice,smallinvestorsandforeigninvestorswillnot be interested in capital market operations. And capital market being one of the major sources of long term finance for industrialprojects,Indiacannotaffordtodamagethecapitalmarketpath.

InthisregardNSEgainsvitalimportanceintheIndiancapitalmarketsystem. Bombay Stock Exchange (BSE) Sensex

IV. NEED OF THE STUDY

ForthepremierStockExchangethatpioneeredthestockbrokingactivityinIndia,128yearsofexperienceseemstobe a proud milestone. A lot has changed since 1875 when 318 persons became members of what today is called "The Stock Exchange,Mumbai"bypayingaprincelyamountofRe1.

SI.No

2 Female 29 14.50 Total

1 Male 171

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The Gender of the respondents The Age of the respondents Sl.No Age No. of Respondents Percentage 1 Below20 35 17.50 2 21 30 69 34.50 3 31 40 71 35.50 4 More than 50 25 12.50 Total 200 100

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V. DATA INTRPRETATION AND DATA ANALYSIS

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Thetermanalysisrefersto thecomputationofcertain measurealong withsearchingforpatternof relationshipthat exists among data groups thus “the process of analysis relationships or difference supporting or conflicting with original or newhypothesisshouldbesubjectedtostatisticaltestofsignificancetodeterminewithwhatvaliditydatacanbesettoindicate any of data in general way involves a number of closely related operation that or perform with purpose of summarizingthecollecteddataandorganizingtheminsuchamanner. Gender of the respondents Gender No. Respondentsof Percentage 85.50 200 100.00

conclusion.Analysis

The

Thedataaftercollectionhastobeprocessedandanalyzedinaccordancewiththeoutlinelaindownforthepurposeat thetimeofdevelopingtheresearchplan.Thisisessentialforascientificstudyandforensuringthatwehavealltherelevant data.Aprocessingimplieseditingcoding,classificationandtabulationofcollecteddatasothattheyacquiescenttoanalysis.

| ISO

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056 Volume: 09 Issue: 01 | Jan 2022 www.irjet.net p-ISSN: 2395-0072 © 2022, IRJET | Impact Factor value: 7.529 | ISO 9001:2008 Certified Journal | Page1364 The Age of the respondents The awareness on online trading The awareness on online trading The online trading is secured Sl.No Particulars No. of Respondents Percentage 1 YES 171 85.50 SI.NO particulars no. of respondents percentage 1 newspaper 69 34.50 2 friends 44 22 3 advisorsfinancial 53 26.50 4 websites 40 20 total 200 100.00

4) Dr.C.K.Gomathy,CKHemalatha,Article:AStudyOnEmployeeSafetyAndHealthManagementInternationalResearch JournalOfEngineeringAndTechnology(Irjet) Volume:08Issue:04|Apr2021

Many online stock trading companies came but initially due to the lack of online trading facilities and ineffective services the companies are closed, but some of the companies are survived. The company which is survived are getting the good profit with well return and also attracting the foreign investment companies.So this study helps the organization to understand the customer’s perception and satisfaction level in online trading facilities and also what type of product the customerdealwhiledoingtheonlinetrading.Thisstudyhelpsthecompanytomakenewstrategyfortheonlinefacilitiesfor furtherimprovement.

Volume: 09 Issue: 01 | Jan 2022 www.irjet.net p-ISSN: 2395-0072 2022, IRJET | Impact Factor value: 7.529 | ISO 9001:2008

Certified Journal | Page1365 2 NO 29 14.50 Total 200 100.00 The online trading is secured

VII.REFERENCES

2) Ichael A. Goldsteina, PavitraKumarb and Frank C. Gravesb “Computerized and high frequency trading” The FinancialReview,May2014,Vol.49,No.2

VI. BENEFITS OF THE STUDY

1) Michael A. Goldsteina, PavitraKumarb and Frank C. Gravesb “Computerized and high frequency trading” The FinancialReview,May2014,Vol.49,No.2

3) Dr.CKGomathy,Article:AStudyontherecentAdvancementsinOnlineSurveying, InternationalJournalofEmerging technologiesandInnovativeResearch(JETIR)Volume5|Issue11|ISSN:2349 5162,P.No:327 331,Nov 2018

5) Dr.C K Gomathy, Article: A Study on the Effect of Digital Literacyand information Management, IAETSD Journal For AdvancedResearchInAppliedSciences,Volume7Issue3,P.No 51 57,ISSNNO:2279 543X,Mar/2018

International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395-0056

VII. CONCLUSION Onlinetradingisthenewconceptinthestockmarket.InIndia,onlinetrading isstillatitsinfancystage.Online tradinghasmadeiteasytotradeinthestockmarketasnowpeoplecantradewhilesittingattheirhome.Nowstockmarketis easilyaccessiblebythepeople.Therearesomeproblemswhiledoingthetradethroughtheinternet.Majorproblemfacedby onlinetraderisthattheinvestorsareloyaltotheirtraditionalbrokers;theyrelyuponthesuggestionsgivenbytheirbrokers. Another major problemis thatthesome peopledon'thavefull knowledge regardingonline trading.Neverthelesstosaythat onlinetradinghasthebrightfutureasthepercentageofthetradedonethroughonlinetradingisincreasingdaybyday.

6) Dr.C K Gomathy, Article: An Effective Innovation Technology In Enhancing Teaching And Learning Of Knowledge

Journal | Page

UsingIctMethods,InternationalJournalOfContemporaryResearchInComputerScienceAndTechnology(Ijcrcst) E

Issn:2395 5325Volume3,Issue4,P.No 10 13,April’2017

7) Dr.C K Gomathy, Article: Supply chain Impact of importance and Technology in Software Release Management, InternationalJournalofScientificResearchinComputerScienceEngineeringandInformationTechnology(IJSRCSEIT)

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Volume3|Issue6|ISSN:2456 3307,P.No:1 4,July 2018