e Business

E- Business project at Geojit BNP Paribas Financial Services Ltd

CHAPTER 1

INTRODUCTION

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INTRODUCTION:

E-business is the conduct of business through electronic media, not only

buying and selling but also servicing customers and collaborating with business

partners. E-business redefines old business models with the aid of technology to

maximize customer values. It gives more strategic focus with an emphasis on the

functions that occurs using electronic capabilities. It is the transformation of an

organization’s processes to deliver additional customer value through the application

of technologies, philosophies and computing paradigm of the new economy.

Electronic business methods enable companies to link their internal and

external data processing systems more efficiently and flexibly, to work more closely

with suppliers and partners, and to better satisfy the needs and expectations of their

customers. Through E-Business, Information Communications Technology (ICT) has

change the way trade and commerce is carried out. Business firms are taking

advantage of these new technologies to expand their markets and strengthen their

marketing power.

1.1 OBJECTIVE OF THE STUDY:

To study the scope of E-business.

To understand the evolution of e-business.

To study the online trading in Geojit BNP Paribas Financial Services Ltd.

To study the application of e- business in Geojit BNP Paribas.

1.2 METHODOLOGY:

Primary data were collected through direct observation of the functions,

discussions with officials and staff. Secondary data were collected from business

publications, official journals, company’s website and internet.

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1.3 SIGNIFICANCE OF THE STUDY:

E-business is a new way of conducting and managing the business using

computer and telecommunication networks. The development of e business creates

many opportunities and challenges. They are a challenge to the traditional commercial

mode, honesty and the evaluation method. We can't only use the traditional way to

view and solve them because e-business is within a short period of history, and it's

unrealistic to evaluate enterprise e-business honesty by the traditional, relevant

historical business data based analysis. It's difficult for traditional credit factors and

evaluation method to cover e-business and thus we need in-depth analysis and study

of the characteristics, background, influence and impact of these issues, we must base

on the e-business when we analyze and view the credit establishment and mechanism

of strategy and mode. So it is very necessary to know about e business and its

application in the organization and to analyse the problems faced by the organization

in order to successfully implement the e business methods. It can derive many

suggestions to improve the business.

1.4 SCOPE OF THE STUDY:

The project study is mainly focusing on various applications of e-commerce.

The scope of the study is to learn about the company, and its designing of e-business

system, TTPL uses, the benefits of the company from e-business application and use

of various software’s in the business. The study is very beneficial to management

students because of the fact that it is becoming a common in the present scenario.

1.5 LIMITATIONS OF THE STUDY:

The information collected from the employees are limited due their busy

schedule.

The data collected can be affected by subjectivity.

The main source of data is secondary data

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CHAPTER 2

E-BUSINESS:

THEORETICAL PERSPECTIVE

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2.1 EVOLUTION OF E BUSINESS:

Electronic business, or “e-business”, may be defined broadly as any business

process that relies on an automated information system. Today, this is mostly done

with web-based technologies. By the mid-1990s, IBM recognized that advances in

network technology were going to fundamentally change the way companies could

manage their core business processes. The term “e-business” was coined by Lou

Gerstner, CEO of IBM. In 1994 when companies around the world started to prepare

their websites, those websites are only meant for advertising purpose. There were only

1000 organizations worldwide having a commercial website.

. Companies have since invested heavily in process reengineering, applying

network technologies to traditionally labor-and paper-intensive processes to make

them faster, cheaper, and more direct. Technologies such as Electronic Data

Interchange and e mail changed the use of electronic networking in business. The

emphasis has shifted from the narrow focus on the e business application to using the

technology in order to reach and getting close to the customers. And by the end of

2000, a lot of European and American business companies offered their services

through the World Wide Web.

Today the number of commercial websites has grown to more than 15 million.

Companies are realizing that the web is having profound impact on the way they

conduct the business. With its open platform based technology and ubiquitous reach,

the internet is allowing companies to open up new distribution channels, forge

communities of buyers and sellers and thereby increasing revenues and profits.

The rapid evolution of e-business architectures is opening many new avenues

of collaboration in the apparel and retail industries, and companies across the supply

chain are leveraging new software applications that promise to facilitate large-scale

trading networks at all levels.

The customer of the new millennium is more than ever choosing when, how,

where, and through what medium to do business. The planning of how companies

choose to hear and alter their mode of operations to serve their customers and vendors

is of utmost strategic importance as the new era of competition begins.

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2.2 E-COMMERCE AND E-BUSINESS:

Electronic commerce consists primarily of the distributing, buying, selling,

marketing and servicing of products or servicing of products or services over

electronic system such as the internet and other computer networks. The information

technology industry might see it as an electronic business application aimed at

commercial transactions. It can involve:-

Electronic funds transfer

Supply chain management

E-marketing

Online marketing

Online transaction processing

Electronic data interchange

Automated inventory management systems

Automated data-collection systems.

It typically uses electronic communications technology such as the internet,

extranets, e-mail, e-books, databases, and mobile phones.

E-business is more than just e-commerce. It involves business processes

spanning the entire value chain electronic purchasing and supply chain management,

processing orders electronically, handling customer service, and cooperating with

business partners. Special technical standards for e-business facilitate the exchange of

data between companies. E-business software solutions allow the integration of intra

and inter firm business processes. E-business can be conducted using the web, the

internet, intranets, extranets, or some combination of these.

E-business, derived from such term as “e-mail” and e-commerce”, is the

conduct of business on the internet, not only buying and selling but also servicing

customers and collaborating with business partners. One of the first to use the term

was IBM, when, in October, 1997, it launched a thematic campaign built around the

term. Today, major corporations are rethinking their businesses in terms of the

internet and its new culture and capabilities.

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2.3 E-COMMERCE TODAY:

E-commerce has now taken such a wide coverage and reach that it is no longer

an alternate means of business transactions, but an integral part of any kind of

business. Whatever be the business model, products or services, it is critical to have

an online presence with some transaction opportunities to keep potential

customers/user engaged. The term e-Biz now encompasses almost every opportunity,

either commercial or interactional, and provides a wide range of choices of

technologies and means to offer them.

The effect of e commerce is appearing in all areas of business from customer

service to new product design. E commerce provides both front and back office that

form the engine of modern business. The growing pace of application innovation and

new distribution channels and competitive dynamics are baffling even the smartest

managers. As technology parameters everything we do, business transformation is

becoming harder to manager because the issue of change play out on a much grander

scale. Unless an enterprise develops an explicit strategy to accommodate the

accelerated flow of information the enterprise will find itself scrambling.

To create the future the company must be capable of engineering the entire

end to end value stream, which is not radically new concept. In the new environment

there is wide spread use of synergistic clusters. Business echo systems coalitions, co

operative network, or outsourcing to create end to end value streams, e business

communities link business customers and suppliers to create a unique business

organization.

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2.4 ADVANTAGES OF E-BUSINESS:

E-commerce helps to increase the sales revenue to the business by spending

less money.

It is very easy to scale up online.

Easy to track the segment of customers who are happy with the online services

provided.

E commerce enables the firm to compete effectively with other online trading

companies.

Enable to do business 24*7 basis

Helps to overcome the Location and Availability Restrictions

It helps to reduce advertising and marketing costs.

With e-commerce a business can develop a more cost-effective

Communication and Marketing Strategy.

Avoid losing sales to other competitors who are online

It saves lot of time by easy transactions.

Reduce customer support cost via e-mail marketing and customer newsletters.

Easy way to contact with customers and maintain customer relationship.

Customers can easily buy their product by using different payment gateways.

Easy to do business promotional activities globally through search engine

optimization, online banner advertisement, pay per click management, e-mail

marketing, social media optimization, online branding and affiliate

management etc

It increases the sales opportunities.

It is easy to provide customized services through online.

Inviting online orders will make order processing easier.

It enables to trade directly to customers and eliminates middlemen.

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2.5 DISADVANTAGES OF E-BUSINESS:

E-business will reduce social conduct in doing business.

It may create security issues. There shall be hackers who interpret transactions

of money and cause problem for consumers and company that operate in the

internet.

It will be difficult to manage with the rapidly changing technology.

There will be need of more staff for customer services and sales support.

There can be problems in integrating existing business with e business

software.

There is a risk for customers in dealing with unfamiliar sellers. It will affect

the reliability of online transactions.

The customers cannot inspect the product.

There can be sectoral limitations in doing e business. Goods in perishable

nature is not preferred to buy through online trading.

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2.6 E-BUSINESS MODELS:

The companies’ business model is the way in which it conducts business in

order to generate revenue. In the new economy companies are creating new business

models and re-inventing old models. Although there are many ways to categorise e-

business models they can be broadly categorized as Business to Consumer, Business

to Business, Business to Government, Consumer to Consumer and Consumer to

Business. With these categories there are a number of variations in the way of models

are implemented.

Business to Business (B2B):

Although Business to Consumer is the most familiar form of e-business,

transactions between and within the business account for a large share of commercial

activities within a company are increasingly transacted on line via the company

intranet. An intranet uses internet technology to allow employees to view and use

internal websites that are not accessible to the outside world.

The internet can connect all business to each other, regardless of their location

or position in the supply chain. This ability presents a huge threat to traditional

intermediaries like wholesalers and brokers. Internet connectivity facilitate business to

bargain directly within a range of suppliers, their by eliminating the need of such

intermediaries. The vast majority of e-commerce volume is of this type.

Business to Business e-commerce is the catalyst behind the rise of the

extranet. An extranet consists of two or more intranet connected via the internet, were

participating companies can view each others data and complete business transactions

such as purchasing.

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Business to Consumer (B2C):

Business to Consumer e-business is focused on the use of a virtual storefront

on the www that allows an internet user to browse and order goods or services from

the storefront’s catalogue this category largely equates to electronic retailing. And

other online purchases such as airline tickets, entertainment venue tickets, hotel rooms

and shares of stocks.

Here the sellers are organizations and the buyers are individuals. This based

on real shopping experience with ‘carts’ order times to drop your goods in to and

checkouts (payment processing) to settle your bill with a credit card. Companies are

rushing take advantage of this market availability of secure web transactions is

enabling companies to allow consumers to purchase products directly over the web.

Consumers are increasingly going online to shop for and purchase of products,

arranging financing, arranging shipment or take delivery of digital products such as

software and get service after the sale.

Business within Business (intra-company) (B2B):

In this case an organization uses e-commerce internally to improve its

operations. Companies around the world are now implementing the application of

web based technology to improve and transfer their internal business communications

and process. The business within business e-commerce takes the internet beyond its

popular role as a corporate and product information centre. Here the e-commerce is

strictly intra-company and payment processing is on issue.

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Consumer to Consumer (C2C):

With the Customer to Consumer E-business model, consumers sell directly to

other consumers via online classified aids and auctions, or selling personal services or

expertise online.

Consumer to Business (C2B):

Consumer to Business model of e-business is also called ‘Reverse Auction’ or

‘demand collection model’, enable buyers to name their own price, often binding, for

a specific goods or services generating demand. The website collects the ‘demand

bids’ and then offer the bids to participating sellers. Reverseauctions.com (travel,

autos and consumer electronics) and priceline.com (travel, telephone and mortgages)

are examples of consumer to business model.

In this scenario the intranet becomes a service centre for the exchange of

goods and services among the subsidiaries of a large company. This is a significant

new market opportunity for existing and starts up e-commerce application vendors to

exploit.

Business to Government (B2G):

Business-to-Government involves the exchange of information between

businesses and government agencies. Through Business-to-Government E-Business,

government agencies conduct transactions directly with businesses using the Internet.

Examples include electronic tax filing, availability of online regulatory information,

and access to government databases for market and technology research.

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2.7 NEW TRENDS IN E-BUSINESS:

E-business will become a critical competitive strategy that will revolutionize

the global economy.

Companies will learn to manage customers' relationships by virtually serving

their needs "24 × 7" hours a day, 7 days a week.

E-business that enables customers to personalize and customize products or

services will flourish.

Using the Net to find new customers and to better target customer preferences

will be a standard practice.

Producing, marketing, and distributing products or services online will be a

cost-effective strategy for business.

Learning to develop and serve online communities with niche interests will be

essential to building customer loyalty.

E-business models that provide greater choice for customers will change the

traditional economics of supply and demand.

Ready access to the Net from multiple gateways-cable TV, satellite, wireless

telephones, and other devices-will greatly expand e-business opportunities.

Highly efficient e-business virtual supply chains will intimately link

manufacturers and producers directly to customers.

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2.8 E-BUSINESS APPLICATIONS:

E- Learning:

It refers to the strategies that use the company network to deliver training

courses to employees. E learning is also called internet based training offers a new

dimension in digital learning. It is used for explaining and testing a job. The material

is presented online

E- Mailing:

E-mailing enables instant communication through the internet. Organisation

communicates to its actual and potential customers mainly through e mails.

E-Auctioning:

The internet makes auctions more democratic allowing everyone with an

internet connection to bid for an item offered. Anyone can go to the auction website

with a click in which the server is loaded physically.

E-Banking:

E banking allows customers to access to accounts and execute orders through a

website. The quality range and the price of these electronic services decide a banks

competitive position in the industry.

E-Directories:

E Directories help to find a particular service or product through the internet.

E-Franchising:

Franchising has become much easier on the internet moving digital products,

processes and the brands are extremely easy. The advantage of the system is that there

is no distribution cost involved.

E-Marketing:

The internet allows companies to react firstly the changing needs of the

customers. Advertising is a very important step in the process of marketing. Two

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different advertising strategies, active or push based advertising and passive or pull

based advertising are followed by companies.

E-Operation Research Management:

Operation Research Management allows companies to Manage Operations Resources

more strategically by using internet. Better Communication between the buyers and

the suppliers can help in effectively using the infrastructure of the enterprise.

E-Trading:

E trading is also called e broking offers the real time stock prices to every desk

throughout the world. People are able to react in real term to changes in stock market.

This enables anyone to participate in the stock market and earn money by investment.

Non business electronic communication:

An increased number of non business institutions such as academic

institutions, social organizations, religious organizations and government agencies

also use it to improve their operations and their customer services.

2.9 BENEFICIARIES OF E-COMMERCE:

The introduction of an e-market place within internet significantly improves

the productivity and competitiveness of all participants companies regardless of

whether they are customers and suppliers.

Benefits to Customers:

Customers benefits primarily from the structural characteristics of the medium

and include availability of information, provision of search mechanism and online

product, trial all of which can lead to reduced uncertainty in the purchase

decision.The major benefits to customers include the following…

Access to more information:

An important consumer benefit associated with marketing on the web is the

access to greater amounts of dynamics information to support queries for consumer

decision making. That is it delivers relevant and detailed information in seconds.

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Rapid Response to Needs :

The customer benefits partly arise from the use of the web as the distribution

channel. It provides customer an ability to rapidly obtain the precise product that is

required, without being limited to those currently in stock at local suppliers.

Lower Costs and Prices:

Increased competition in procurement, as more suppliers are able to compete

in an electronically. Open market place cause a greater competition that lowers prices

and costs. This increase in competition, leads to better quality and variety of goods

through expanded markets and ability to produce customized goods. That is it

provides less expensive products and services by allowing customers to conduct quick

online searches and comparisons.

Global Choice:

The global nature of e-commerce provides a benefit of global choice to the

customer. A customer can select from all potential suppliers of a required product or

service, regardless of their geographical location.

Easier Market Research and Comparison:

The ability of the web to accumulate, analyses and control large quantities of

specialized data can enable comparison shopping and speed the process of finding

items. The web facilities trial and provides instant gratification. And the customers

can test digital products through online, which may stimulate purchase.It enables the

customers to shop or make other transactions 24 hours a day.Make possible electronic

auctions that benefit buyers and sellers.Allows customers to interact in electronic

form and to exchange ideas and compare experiences.

Benefits and Opportunities to Suppliers:

The supplier benefits arise from the potential of the web as a communication

medium for marketing. These efficiencies are associated with web technology and the

interactive nature of the medium. The major benefits include the following.

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Shortened Supply Chains:

E-commerce often allows traditional supply chain to be shortened

dramatically. This will make the products cheaper and vendors’ profits higher. There

are many established examples where goods are shipped directly from the

manufacturer to the end customer, by passing the traditional staging posts of

wholesaler’s warehouse, retailer’s warehouse and retail outlet.

Substantial Cost Savings:

Buyers and sellers can access and contact each other directly, potentially

eliminating some of the marketing cost and constraints imposed by such interactions

in the terrestrial world. Time to complete business transaction may be reduced as

well, translating into additional efficiencies for the suppliers. It enables companies to

procure materials and services from other companies rapidly at less cost. It helps the

company to locate more customers, the best suppliers and the most suitable business

partners’ worldwide with minimal capital outlay. It also reduces the telecom cost

because internet is much cheaper than Value Added Network (VAN).

Mass Customization:

With electronic interaction suppliers are able to gather detailed information on

the needs of each individual customer and automatically generate the required

products and services to those individual needs. This result in customized products

comparable to those offered by specialized suppliers but a mass market prices.

Global Presence:

The boundaries of electronic commerce are defined only by the coverage of

computer networks and not by the geographical or national borders. Since the most

important networks are global in scope, creation of new markets and segments,

increased generation of sales leads easier entry in to new markets and faster time to

market is facilitated. It expands a company’s market place to national and

international market.

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Competition on Speciality:

The web offers opportunity for competition on the Speciality axis instead of the price

axis. Such opportunities arises when the offerings is differentiated by elements of the

marketing mix other than price. It helps some small business to compete against large

companies.

Improved Competitiveness:

E-commerce enables suppliers to improve competitiveness by becoming closer

to the customer. As a simple example many companies are employing electronic

commerce technology to offer improved levels of pre-sales support, with increased

levels of product information, guidance on product use, and rapid response to

customer enquiries.

Benefits to Society:

It enables individuals to work at home and to do less traveling, resulting in

less road traffic and less air pollution.

Allows some merchandise to be sold at lower prices, thereby increasing

people’s standard of living.

Enable people in developing countries and rural areas to enjoy products and

services that otherwise are not available. This includes opportunities to learn

professions and earn college degrees, or to receive better medical care.

Facilitates delivery of public services, such as government entitlements,

reducing the cost of distribution and chance of fraud, and increasing the

quality of social services, police work, health care and education.

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OPERATIONAL BENEFITS OF E-COMMERCE:

Operational benefits of websites using for industrial sellers are reduced errors,

reduced time and overhead costs in information processing, reduced costs to suppliers

by electronically accessing online database of bid opportunities, online abilities to

submit bids, and online review of awards. For example improvements in

competitiveness and quality of service may in part be derived from mass

customization, while shortening of supply chains may contribute to cost savings and

price reductions.

E-Commerce Market:

The internet has grown more rapidly than anyone could have imagined even a

few years ago. It has changed the way in which the world conducts business. Goods

are purchased and sold, services are rendered, stocks are traded, news paper and

magazine subscriptions are sold, and up-to-the minute news and financial information

is readily available.

One of the most important aspects of any economy is its growth rate. This relates to

the total output produced within the economy. It should be evident that a large part of

the growth in the emerging internet economy will come at the expense of the physical

economy through a substitution effect.

E-Commerce Security:

One of the biggest obstacles for realizing the full potential of the internet has

been the issue of the security. Fears of corporate espionage and sabotage, theft of

personnel identities and credit, lack of privacy in correspondence, and potential access

to confidential records have led to a cautious approach in online transactions.

While payment of security usually means protecting sensitive information

from hackers and theft. A secure transaction has a broader set of requirements as

follows.

Non-repudiation - Parties in a transaction cannot deny it after the fact.

Authentication - The ability to identify the persons involved in transactions.

Modified in transmit or in storage

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Privacy - The transaction is only between participants.

The emerging services and security technologies like advanced encryption, digital

certification and digital signatures, have dramatically addressed these issues and they

are producing a significant impact on e-commerce and user confidence.

Electronic Payment System:

Although majority of payments in the web stores are made through credit card

transactions, many customers prefer to use more traditional payment methods such as

paper Cheques, cash on delivery or credit card through telephone.

Much of the media coverage about the dangers of using a credit card on the

internet centers on the interception of data being passed from customer to the web

store. In really, the greatest risk arises from the theft of data from the web stores

server after it has been transmitted either by a hacker or by a dishonest employee.

Consumers don’t really believe it yet, but experts say e-commerce transactions are

safer than ordinary or card purchase.

Virtually, all interested parties in academic, governments and financial

services are exploring various types of payment services and the issues surrounding

electronic payment system and digital currency. Some proposed e-payment system are

simply e-version of existing payment system, such as Cheques and credit cards, where

as others are based on digital currency technology and have the potential for definitive

impact on today’s financial and monitory systems.

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CHAPTER 3

E- BUSINESS IN INDUSTRY

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3.1 E-TRADING:

E-Trading is the buying and selling of securities, stocks &funds electronically.

This process involves an extensive communication network and infrastructure for

clearing transactions - but the savings over the traditional stock brokers can be

substantial. It is estimated that 40% of trades executed by individuals today are

executed electronically, through an online broker. The phenomenal increase in

popularity of electronic trading in the business community is largely because of the

availability of strong encryption that can guarantee the security of a trade.

Traditionally, stock brokers have been known for their 'full service' account

management. This would often include personalized service, with individual risk

management, liberal financial advice but with a substantial commission charged on

very trade. Discount brokers are known for their practice of charging a flat rate for

each trade mode. The internet helped transform ordinary discount brokers into

'electronic brokerages' by allowing a person anywhere in the world to place orders

online.

AN OVERVIEW OF ON-LINE TRADING:

Internet can be used as an Order Routing System for communication client's

orders to the exchange through the brokers. It enables investors to place orders with

his brokers and have control over the information and quotes and to hit the quote on

on-line basis. Once the brokers system receives the order, it checks the authenticity of

the clients electronically and then route the order to the appropriate exchange for

execution. On execution of the order it is confirmed on a real time basis. investor

receives report on margin requirements, payments and delivery obligations through

the system. His ledger and portfolio accounts get updated on-line. The internet is a

source of cost-effective information about a host of goods and services. The internet

provides low-cost information facilitating trade. The seller wants to provide

information because he wants a sale and the purchaser wants the information because

he wants to buy.

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ADVANTAGES OF E-TRADING:

o Instant Access

o Convenience and transparency

o Saving time and cost

o Value Added Services

o Faster Price sensitive information

DISADVANTAGES OF E-TRADING:

o Investing alone

o Security

o Personalized services

3.2 STOCK MARKET:

Stock markets refer to a market place where investors can buy and sell stocks.

The price at which each buying and selling transaction takes is determined by the

market forces (i.e. demand and supply for a particular stock). In earlier times, buyers

and sellers used to assemble at stock exchanges to make a transaction but now with

the dawn of IT, most of the operations are done electronically and the stock markets

have become almost paperless. Now investors don't have to gather at the Exchanges,

and can trade freely from office over the phone or through internet.

NATIONAL STOCK EXCHANGE (NSE):

In order to lift the Indian stock market trading system on par with the

international standards, on the basis of the recommendations of high powered

Pherwani Committee, the National Stock Exchange was incorporated in 1992 by

Industrial Development Bank of India, Industrial Credit and Investment Corporation

of India, Industrial Finance Corporation of India, all Insurance Corporations, selected

commercial banks and others. NSE provides exposure to investors in two types of

markets, wholesale debt market and Capital market.

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TRADING AT NSE:

Fully automated screen-based trading mechanism

Strictly follows the principle of an order -driven market

Trading members are linked through a communication network

This network allows them to execute trade from their offices

The prices at which the buyer and seller are willing to transact will appear on

the screen

When the prices match the transaction will be completed

A confirmation slip will be printed at the office of the trading member

Advantages of trading at NSE

Integrated network for trading in stock market of India

Fully automated screen based system that provides higher degree of

transparency

Investors can transact from any part of the country at uniform prices

Greater functional efficiency supported by totally computerized network

BOMBAY STOCK EXCHANGE (BSE):

Bombay Stock Exchange Limited (the Exchange) is the oldest stock exchange

in Asia with a rich heritage, popularly known as "BSE", it was established as "The

Native Share & Stock Brokers Association" in 1875. It is the first stock exchange in

the country to obtain permanent recognition in 1956 from the Government of India

under the Securities Contracts (Regulation) Act, 1956. The Exchange's pivotal and

pre-eminent role in the development of the Indian capital market is widely recognized

and its index, SENSEX, is tracked worldwide. Earlier an Association of Persons

(AOP), the Exchange is now a demutualised and corporatized entity incorporated

under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporation

and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of

India (SEBI).

Bombay Stock Exchange Limited received its Certificate of Incorporation on

8th August, 2005 and Certificate of Commencement of Business on 12th August,

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2005. The 'Due Date' for taking over the business and operations of BSE, by the

Exchange was fixed for 19th August, 2005, under the scheme.

The Exchange has succeeded the business and operations of BSE ongoing

concern basis and its recognition as an Exchange has been continued by SEBI. With

demutualization, the trading rights and ownership rights have been de-linked

effectively addressing concerns regarding perceived and real conflicts of interest. The

Exchange is professionally managed under the overall direction of the Board of

Directors. The Board comprises eminent professionals, representatives of Trading

Members and the Managing Director of the Exchange. The Board is inclusive and is

designed to benefit from the participation of market intermediaries. In terms

organization structure, the Board formulates larger policy issues and exercises overall

control. The committees constituted by the Board are broad-based. The day-to-day

operations of the Exchange are managed by the Managing Director & CEO and a

management team of professionals.

The Exchange has a nation-wide reach with a presence in 417 cities and towns

of India. The systems and processes of the Exchange are designed to safeguard market

integrity and enhance transparency in operations. During the year 2004 - 2005, the

trading volumes on the Exchanged showed robust growth. The Exchange provides an

efficient and transparent market for trading in equity, debt instruments and

derivatives. The BSE's On Line Trading System (BOLT) is a proprietary system of

the Exchange and is BS 7799-2-2002 certified. The surveillance and clearing &

settlement functions of the Exchange are ISO 9001: 2000 certified.

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CHAPTER 4

E-BUSINESS IN

GEOJIT BNP PARIBAS FINANCIAL

SERVICES LTD

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4.1 COMPANY PROFILE:

Mr. C. J. George Mr. Ranajit Kanjilal founded Geojit as a partnership firm in

the year 1986. In this year it has got a membership in Cochin Stock Exchange (CSE).

In 1993, Mr. Ranajit Kanjilal retired from the firm and Geojit became a proprietary

concern of Mr. C. J. George. In 1994, it became a public Limited Company by the

name Geojit Securities Ltd in 1995, became a co-promoter of Geojit by acquiring

25% stake in the company, the only instance in India of a government entity

participating in the equity of a stock broking company.

In 1995 Kerala State Industrial Development Corporation Ltd acquires 24

percent equity stake of Geojit. Also in this year it has got a membership in National

Stock Exchange (NSE). In 1996 Geojit launched Portfolio Management Services with

SEBI registration. In 1997 Geojit became Depository Participant (DP) under National

Securities Depository Limited. In the year 1999 it has got a membership in Bombay

Stock Exchange (BSE) and in the year 2000 listed in BSE.

Geojit was the first broking firm in India to offer online trading facility in the

year 2000. In this year Geojit commenced Derivative Trading with NSE and

integrated the First Bank Payment Gateway in the country for Internet Trading.

In 2001 Geojit became India's first DP to launch depository transactions through

Internet and established Joint Venture in the UAE to serve NRI customers. In 2002

Geojit firstly introduced an integrated internet trading system for Cash & Derivatives

segments in India. In 2003 Geojit Commodities Limited, launched Online Futures

Trading in agri-commodities, precious metals and in energy futures on multiple

commodity exchanges. In this year the company renamed as Geojit Financial Services

Ltd.

In the year 2005 Geojit listed in NSE and also registered with RBI as a Non-

Banking Financial Company (NBFC). In 2006 Geojit became a Charter member of

the Financial Planning Standards Board of India.

In 2007 BNP Paribas took a stake in the company’s equity, making it the single

largest shareholder and established Joint Venture in Saudi Arabia to serve the Saudi

national and the NRI. In the year 2008 Geojit established a Joint Venture with BNP

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Paribas S.A. for Institutional Brokerage and became 1st brokerage to offer full Direct

Market Access execution in India for institutional clients.

In 2009 Geojit launched Property Services division, online trading in Currency

Derivatives. BNP Paribas became the largest stakeholder in Geojit Financial Services,

and the company is renamed as Geojit BNP Paribas Financial Services Ltd.

Geojit has adopted wide range of modern technologies, which has world

competence. The facilities provided by the firm especially net trading etc., are almost

equal to facilities offered by worlds stock broking firms. One day settlements and

derivative trading etc. are some among those facilities. However, the development of

Indian Stock Market is far behind the same industries in developed countries. This

will affect the functionary of Geojit BNP Paribas also.

Geojit BNP Paribas has 22 years of in-depth broking experience in the Indian

Capital Market and has more than 4.5 lakh clients and over Rs 5,400 crores (as of 31st

Mar.’09) in Assets. Geojit offer its clients a wide portfolio of savings and investment

solutions. Geojit has over 500 offices allover India. Now, as a part of the BNP Paribas

global network, Geojit BNP Paribas is well positioned to further expand its reach to

NRIs in 85 countries. Barjeel Geojit Securities is the joint venture with the Al Saud

group in the United Arab Emirates that is headquartered in Dubai with branches in

Abu Dhabi, Ras Al Khaimah, Sharjah and Muscat. Aloula Geojit Brokerage Company

headquartered in Riyadh is the other joint venture with the Al Johar group in Saudi

Arabia. The company also has a business partnership with the Bank of Bahrain and

Kuwait, one of the largest retail banks in Bahrain and Kuwait.

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4.2 PRODUCTS AND SERVICES:

Equities

Derivatives

Currency futures

Custody accounts

Mutual funds

Life insurance and general insurance

Initial public offers (IPOs)

Portfolio management services

Property services

Margin funding

Loans against shares

Internet trading

Online 24/7 customer service.

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CAPITAL MARKET SEBI REGISTRATIONS:

National Stock Exchange of India (NSE) cash market

The Stock Market, Mumbai (BSE) cash market

Depository Participant with National Securities Depository Limited (NSDL)

SEBI Registered Portfolio Manager

COMMODITY EXCHANGE REGISTRATIONS:

National Multi-Commodity Exchange of India Ltd. (NMCE)

National Commodity & Derivatives Exchanges Ltd. (NCDEX)

Multi-Commodity Exchange (MCX)

First Commodities Exchange of India Ltd. (FCEIL)

India Pepper and Spice Trade Association

4.3 E-BUSINESS MODEL IN GEOJIT BNP PARIBAS FINANCIAL SERVICES LTD:

Geojit BNP Paribas is a stock broking firm, which acts as an agency in

between the Stock Exchange and the investor. The main e-business application of the

organization can be narrated under the following:

> Online Trading

> Internet Trading

> Inter Branch Transactions

>Customer Relationship

Online Trading:

Geojit was started as an online trading center at its initial period. The

application for opening an account contains the financial details etc. other than

personal details. After the registration as a member each and every person will be

given a client ID. Every transaction in the organization will be carried out only

through this ID. Each and every member has to open a trading account and a

depository account with Geojit.

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The Information Technology has brought out revolutionary changes in the

operation of the stock exchanges in India. The traditional method of trading without

the use of technology was time consuming and inefficient. Further, it imposed limits

on trading volumes and efficiency. To overcome all those defects and to provide

efficient and transparent services, the NSE has introduced a nation online fully

automated Screen Based Trading System (SBTS). Now, other stock exchanges have

been forced to adopt SBTS and today India can boast that almost 100% trading take

place through electronic order matching.

Under SBTS, a member can punch into computers quantities of securities and

prices which he likes to transact the transaction. It is executed as soon as it finds a

matching sale or buy order from a counter party. Thus, technology is used to carry the

trading platform from the trading hall of the exchanges to the premises of the brokers.

NSE has carried the trading platform further to the PCs at the residence of the

investors through the internet and the hand held devices through WAP for the

convenience of the mobile investors.

Internet Trading:

Internet trading facility adds one more feather to Geojit BNP Paribas'

achievement. This is a facility provide to those clients who have internet connection

in their houses. The customer will be given a secret code to enter in the trading

terminals of Geojit's website. With the help of this code they enter into trading section

were the entire price will be listed. Each and every client executes his or her

transactions. They can purchase shares and at the same time they can sell also. This

facility reduces client's time and transaction cost.

Inter Branch Transactions:

Inter Branch transactions are also carried out by the back office. The

transaction time is 9.56 am to 3.30 pm. After the financial settlement are done with

the clients each has to prepare reports about pay out at every evening. All the details

are sent to the head office through internet. Due to this daily settlement data will be

up to date every day.

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Customer Relations:

Geojit BNP Paribas give importance to its clients more than anything. So they

are following efficient CRM techniques. Client's complaints are accepted in the

branch. In order to help the investors they have appointed separate assistants. For

those clients who are doing net trading a feedback form is collected through net.

Geojit informs the customer trough email if their account is not carrying sufficient

balance. It also organizes seminars, which will guide the investors. Trading institutes

carried out training for staff to train them to assist clients. Online customers can

subscribe for Standing Instructions at Customer Care website or submit ‘Margin

Withdrawal’ requests on need basis. Services such as subscription for SMS – daily

market calls, Research Reports, Demat Holdings, change of Platform, etc. are

available in the Customer Care website.

Geojit BNP Paribas offers different guiding to the clients through,

1. Daily mails to clients on market conditions and recommendations.

2. Technical analysis of BSE 200 Index scrips

3. Free monthly investment magazine

4. Services of professionally qualified executives at 500 offices across India.

Brokerage:

Brokerage charged will be only from 0.30% to 0.10% for delivery trades,

0.03% to 0.01% for intra-day trades and Rs.75/- per lot to Rs.30/- per lot for F&O

trades. Mini Nifty is Rs.35/- per lot only. The brokerage rate will get automatically

discounted when the volume crosses the brokerage slab.

4.4 ONLINE TRADING AT GEOJIT BNP PARIBAS:

Online Investment Platform is a browser based application that enables user's

trade online. Ideally one may use Internet Explorer version 6.0 or above or Netscape

Navigator version 7.1 or above.

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Other browsers such as Mozilla, Firefox and Linux etc. may not support all the

functionaries essential for trading and especially the feature to transfer funds online

real-time and may therefore be avoided.

Opening Online Trading Account:

The customers can contact with the company through branches, online and

telephone to open a trading account. In order to open an online trading account, the

following things have to be done:

1. Complete the KYC.

2. Sign up the mandatory Agreements as defined by Exchanges.

3. Sign up the Agreements, Power of Attorney, Terms and Conditions, Declarations

etc., essential for availing the Online Trading facility.

4. Submit the Proof of Identify, Proof of address and Proof of bank and demat

account.

5. Submit the trading account opening charges cheque/demand draft.

SOFTWARE USED:

The major softwares used for Geojit BNP Paribas are as follows:

1. Neat software

2. Bolt software

3. Odin software

4. BTT software

5. ITT software

1. Neat software: It is the old software developed by NSE. This software mainly used

by national stock exchange. All NSE trading transaction and NIFTY transactions are

done by this software. In this software the company should not take accounting

balance.

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2. Bolt software: It is also software developed for the purpose of BSE. This software

mainly used by Bombay Stock Exchange transactions and sensex. Here accounting

balance should not take the company.

3. Odin software: This software is developed by FinTech (financial technologies).

Under this software is used for branch trading and also used for the purpose of branch

office of the company. The transactions are dealed on the basis of branch code. Each

branch has a code the transactions are done on that basis.

4. BTT software: BTT stand for Branch Trading Terminals. This software is

developed firstly Reuter's platform and then developed by Geojit. Now Geojit is used

all transactions in this software. Under this software we get all details of clients

include his name, ID, address, code number and other information. This software is

considered a code format. The company take a respected client account balance on

that basis transactions are done.

5. ITT software: ITT stand for Internet Trading Terminals. This software is similar to

BTT software. Under this software you can choose the trading platform that suits you

best Geojit offers three versions to meet customer.

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ONLINE TRADING FEATURES:

Pioneer:

In the year 2000, Geojit BNP Paribas pioneered the simple concept of

providing individuals with the facility to trade online. This revolution has

given the company the first mover advantage in online trading.

Safety:

Every client is provided with a User Name and Password with 128 bit

encryption along with a virtual keyboard to provide the highest level of

security.

Multiple bank payment gateways:

Transfer money online in real-time to benefit from price movements in the

market.

Current payment gateways:

HDFC Bank, ICICI Bank, Citibank, Federal Bank, Bank of India, IDBI

Bank, Punjab National Bank & Union Bank.

Automated NEFT Facility through Citi Bank:

Buying power is updated automatically once the amount is received in

the bank account.

Reduced Brokerage:

Brokerage fees are very competitive and fair.

You pay less for higher volumes.

After market Hour Orders (offline indicates to place order in

branches, hence confusing)

If you are unable to participate in the market, place your orders after

the market has closed. It will be sent to the Exchange on the next

working day.

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Other Investment Products:

Access to IPO’s, Mutual Funds on a single click.

Equity Exposure:

DayTrading

Exposure against Holdings

Purchase positions will be closed if payments are not made within

4 days, as applicable in branches.

Customer Care Website:

Provided to all Online and Offline clients

Provision to apply for Online IPO

Access to Ledger, Demat holding, Portfolio tracker, Contract notes etc.

Transaction details of Cash, Derivatives & Currency

Facility to subscribe for SMS or change of platform

Information related to support, resistance of each scrip

Facility for Payout request , details of FAO rollover and Margin

Requirement

Information regarding scrips available for intraday and margin

applicable for each scrip.

Toll Free numbers 1800–425–5501 and 1800-103-5501 are accessible

from most mobile and land line service providers.

E-mail service supported by Customer Care Centre.

Additional support of Geojit BNP Paribas branches.

Portfolio Margin System:

FAO Span Margin is calculated in real time. Hedging positions are

identified correctly in this system.

Customized Services:

Subscription services are available for daily research and

recommendations, daily demat holdings, market tips and daily calls via SMS.

And much more!

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Graphs & Research Tools:

Take informed investment / trading decisions using Graphs, Technical

analysis, Reuters news, etc. at zero cost.

Technical Analysis:

Technical analysis, with support and resistance for BSE 200 Index

scrips, is offered FREE to all online clients.

TRADING PLATFORM:

Introducing FLIP (an Advanced Online Investment Platform):

The company has great pleasure in introducing 'FLIP' (Financial Investment

Platform), an enhanced Online Investment Platform that comes with a plethora of

new features, products and services. FLIP is an Advanced Investment Platform

that comes with multiple conveniences and flexibilities.

You will be glad to know that the following additional Products & Services will

be available in FLIP if you have signed the new Terms & Conditions and POA*:

Enhanced Buying Power (in Cash Segment for delivery and intra-day trading)

against demat holdings, and unsettled shares purchased in previous settlement.

Pledge shares with Geojit BNPP or with NSCCL to enhance your Buying

Power in Futures & Options Segment, as applicable in branches.

Purchase positions will be closed if payments are not made within 4 days, as

applicable in branches.

You can now place your order through the channel of your convenience i.e.

Internet or at your Branch or via the Call Center.

Intra-day Margin percentage will be the same as that applicable in branches.

Intra-day open positions taken through any channel will be squared-off at the

cut-off time for Online Clients.

Many more features...

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Applicable to Ordinary Resident account only

As a client, you may select from any of the three trading platforms that Geojit BNP

Paribas offers as per your requirement:

FLIP Lite

FLIP Gold

FLIP Platinum

FLIP Lite:

FLIP Lite is a browser based version and will help you to trade even if you

have a low band width connection.

Key Features of Lite:

Light

Speed

Easy etc

FLIP Lite is designed to work on mobile devices

FLIP Gold Platform:

FLIP Gold Platform is also a browser based version that can be accessed from

around the world. This Platform is offered absolutely FREE to all online customers.

FLIP Gold Platform is ideal for those who travel often and hence cannot access their

own computer for trading

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Key Features of Gold Platform:

Live streaming quotes

Real-time configurable Market Watch with auto save functionality

Live top gainers, top losers and most active scrips

Tick by Tick Intraday Charting

Advanced charting with 60 technical studies

Live exchange-broadcasting messages

Streaming Market Depth view

Analyze multiple Market Depth view

Optimized to work on low bandwidth

Works behind proxy & firewall

Real-time Research & Trade Execution notification via pop-up

Use of short cut keys and easy navigation using the keyboard, mouse

Platinum user can login to Gold & Lite platforms with the same login id

Instant trade confirmation as popup

Online fund transfer facility

Place orders in the Post-Close session of the Exchanges

After market hours, orders can also be placed in both the Exchanges

Online investment of Mutual Funds and IPO’s

Facility to convert Intraday, Delivery and open positions

Platinum Platform:

Platinum platform is a virtual dealer terminal. It is best suited for active

traders, who take advantage of minor movements in the price. This EXE

program can be downloaded on the client’s computer.

Key Features:

Note: FLIP Platinum users have access to the Gold Platform also.

All the features of Gold are available in Platinum

Platinum is similar to a dealer terminal

Flexibility to customize screen layout and setting

Professional, Classic, Customized Market Watches

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Fast trade execution with instant trade confirmation through pop-up

View Cash, F&O and Currency quote in a single market watch screen

Real-time updation of Index & Tick by Tick updation of index chart

Online Fund transfer facility

Place orders in the Post-Close session of the Exchanges

After market hours orders can also be placed in both the Exchanges

Online investment of Mutual Funds and IPO’s

Intraday & EOD

Sophisticated studies such as Technical indicators can be performed by using

appropriate parameters:

Order Placement:

Online real-time orders can be placed during trading hours when the Exchange

is open. Such orders are validated online before being flushed to the Exchange.

Orders can also be entered in the trading platform after market hours are over.

These are basically known as Offline order. Offline orders are sent to the relevant

Exchange when the market opens for trading on the following day. The system shall

validate offline orders before they are sent to the Exchange.

Offline orders can be placed in NSE Cash Market from 6.00 pm to 9.45 am on

trading days and at any time on holidays.

Capital Market (CM) Order:

Capital Market Order is also commonly known as placing order in the cash

segment. Select NSE-CM or BSE-CM from the drop down combo box under the

header titled 'Market' displayed below in the order page.

Cash Segment-Order entry:

Select the desired market, product type (Cash / Margin), Buy / Sell / Buy to

cover / Short Sell. Enter the symbol (or script or instrument) name for which the order

is to be placed. Select the price condition for the order as appropriate i.e. market or

limit and enter the price (in case price is selected as 'Limit'). Limit price can be

entered up to two decimals. Enter the order quantity. This cannot be decimal.

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Disclosed quantity, IOC (Immediate or Cancel) and Trigger Price are advanced

options and may be entered only in case of need.

Buy / Sell:

While placing an order you may select to do any of the following:

Buy : To place a purchase order.

Sell : To place a sell order.

Short sell: This is possible only if the Product Type is selected as 'Margin'. It means

you desire to sell shares that you may not hold. Its basically placed by those who

desire to take advantage of intra-day volatility without delivering shares and

anticipation of a price fall.

Buy to cover: To close Short sold position you may place this order.

Product Type:

Cash and Margin are the two products on offer. Select 'Cash' if you intend to

take delivery of shares by blocking 1005 funds upfront or intend to give delivery of

shares by blocking 100% shares upfront. Select 'Margin' only if you desire to take

advantage of intra-day price movements and do not intend to give or take delivery of

shares / funds. In case of Margin orders, only a percentage of funds are blocked from

the available buying power irrespective of whether the order is for buy or short sell.

Margin orders are leveraged positions and come with market risks.

Quantity Conditions:

Enter the number of shares you intend to buy or sell in the Quantity field. Quantity

should be in integer. There is an additional field termed as 'Disclosed Quantity'.

Disclosed Quantity:

Disclosed quantity is an advanced option and is generally used when the order

size is large and the user does not desired that the market should not know of the

same. For example, if the order size is 10000 shares and disclosed quantity is 500

shares then at a time only 500 shares are released in the Exchange system. Once the

500 shares are executed / traded another 500 is released in the market and so on.

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The conditions for entering the disclosed quantity are:

It should not be greater than the ordered quantity.

It should not be less than 10% of the ordered quantity.

It should be an integer.

Time Condition:

Any order placed in the Exchange is valid only for one day. if the order

remains unexecuted it expires automatically at the end of the trading day. There is an

advanced option termed as 'IOC' (Immediate or Cancel) which is not normally used

by a normal investor.

An IOC is a conditional order which means that an order will be cancelled if it

does not result into a trade as soon as the order is released in the market. In the case

the IOC order is partially executed the unmatched portion of the order is cancelled

immediately.

COMMODITIES TRADING:

Geojit commodities, a subsidiary of Geojit BNP Paribas Financial Services

Limited mainly engaged in the business of Commodities Futures Trading.

Geojit provides Information on commodity futures, along with technical and

fundamental analysis online at its website and also through the company's large

branch network. The company Conducts seminars, distributes free in-house literature

and holds interactive sessions that help raise awareness on the futures market. The

number of participants is continuously on the rise thus leading to increased volumes

and market efficiency.

Geojit Commodity offers futures trading through multiple exchanges in varied

commodities such as:

Agricultural commodities: oil seeds, Soya, groundnut, pulses, rice, wheat, sugar,

spices, rubber, pepper, cardamom, coffee etc,.

Precious Metals: gold and Silver.

Base Metals: Steel, Aluminium, Nickel, Zinc, Copper.

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Energy Products: Crude oil and furnace oil

Geojit's client in commodities range from investors, co-operative societies,

state and national institutions to dealers, traders, manufactures, financiers, speculators,

arbitragers etc,.

Geojit does not have proprietary interest in any commodity and therefore is

price neutral. Transaction costs are highly affordable attracting a spectrum of

investors. Membership in multiple exchanges gives client the added advantage of

arbitrage. Geojit has specialized staffs that provide the required guidance, help and

enable clients to enter an appropriate price.

FUTURES AND OPTION:

The National Stock Exchange and The Stock Exchange, Mumbai have

commenced trading in Derivatives Market with Index Futures being the first

instrument. Now both the exchanges provide trading in Index Futures and Options

and Stock Futures and options. A derivative is a financial contract, between two or

more parties, which is derived from the future value of an underlying asset. At any

point of time there will always be available near three months contract periods. For

e.g. in the month of Jan 2006 one can enter into Jan, Feb or Mar contracts. The last

Thursday of each month is the expiry day for that month's contract. When one

contract expires, a new contract is introduced. For instance, on expiry of Jan 2006

contract, April contract shall get activated. Currently, settlements of all derivatives

trades are in cash. There is daily as well as Final Settlement. As long as the position is

open, the same will be marked to Market at the Daily Settlement Price, the difference

will be credited or debited accordingly and the position shall be brought forward to

the next day at the daily settlement price. Any position which remains open at the end

of the final settlement day (i.e. last Thursday) shall be closed out by the Exchange at

the Final Settlement Price which will be the closing spot value of the underlying.

There are two types of margins collected on the open position, viz., Initial

Margin which is collected upfront and Mark to Market Margin to be paid on T+1 day.

As per SEBI Guidelines it is mandatory for clients to give margin, failing which the

outstanding positions may be closed out. There are three types of Members in the

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Futures and Options Segment: Trading Members are only eligible to trade, their trades

are settled by the Clearing Members.

1. Trading cum clearing members are members who are eligible to trade and also

settle trades on their own behalf of their trading members.

2. Professional Clearing Members are members who are only specialised in the

clearing and settlement activities. They do not trade on their own behalf or on behalf

of other members.

3. Self Clearing Members are those who trade and settle only their own trades.

E-BUSINESS FUNCTIONING IN GEOJIT BNP PARIBAS:

The NSE has the main computer which is connected through Very Small

Aperture Terminal (VSAT) installed at office. The main computer runs on a fault

tolerant SRATUS main computer at the exchange. Brokers have terminals (PCs)

installed at their premises which are connected through VSATs / Leased Lines /

modems.

When investors inform their brokers to place orders either for purchase or

sales, the brokers enter the orders through their PCs which run under Windows NT

and sent signal to the satellite via VSAT / Leased Lines / Modem. The signal is ten

directed to mainframe computer kept at NSE via NSE office. A message relating to

the order activity is broadcast to the respective member. The order confirmation

message is immediately displayed on the PC of the Broker. The order will be

executed if it matches with the existing passive orders. Otherwise it will wait for the

active orders to enter the system till it is matched.

On order matching, a message is broadcast to the respective member. The

trading system operates on a strict Price / Time Priority. All orders received on the

system are sorted with the best priced order getting the first priority for matching. In

other words, the best buy order should match with the best sell order. If more orders

are similar priced, the orders are sorted on time priority basis, i.e., the first come gets

the top priority.

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The trading system provides greater flexibility to the investors since various

kinds of with quantity or price conditions can be placed according to the discretion of

investors.

HOW TO TRADE IN COMMODITIES:

Open a trading account and maintain initial margin with Geojit when an order

request is entered for buying / selling for a match with the existing orders in the

exchange system. If the order matches another order in the system it results in a trade.

Contract note is issued in exchange specified format containing details such as

transaction, quantity, price etc. Contract note is a legal document enforceable in the

court of law.

Mark to market margin is levied on the contract. The open purchase / sale

positions can be squared off at any time during the contract period. NMCE however

does not allow members to enhance their position during the settlement month.

Existing positions can be squared off. On the first (tenth in case of gold &silver) day

of settlement month, margins on existing positions are increased by 20%. From 1st to

15th of the contract month (10th to 15th in case of gold &silver), seller can tender

warehouse receipt for settlement.

This means that the seller has the right to make delivery of the sold position

any time between 1st and 15th (10th to 15ht in case of gold &silver) of the contract

month. The first buyer (as per the exchange records) shall have to necessarily take

delivery of the same. The seller shall receive payment from the exchange on T+3 day

while the buyer has to make payment on T+1 day (T is the transaction day). The seller

who places his commodity with Central Warehousing Corporation (CWC) is issued a

CWC receipt against this delivery. This receipt is accepted by Geojit and sent to the

exchange that gives it to the buyer. The buyer presents it at CWC and takes delivery

of his commodity.

F&O ORDERS:

In futures & Options sector in every month there is a settlement date for

settlement of funds. We can enter into contract up to three months. The general policy

of F&O sector is normally telling, high risk high return. In the case of Option Index

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and Option Stock, we can trade at a lower amount. But in the case of Future Index and

Future Stock, we have to keep a large amount as margin money and that is provided

by stock exchange.

Order Selection:

Select from the 'Market' dropdown combo box as shown below:

NSE-FUTSTK to place a Future Stock order

NSE-FUTIDX to place a Future Index order

NSE-OPTSTK to place an Option Stock order

NSE-OPTIDX to place an Option Index order

Order entry:

Select the desired market and side (Buy/Sell).

Enter the symbol (or scrip or instrument) name for which the order is to be

placed.

Select the price condition i.e. market or limit order.

Enter the order quantity, price in case of limit order, expiry date and in case of

an options order you also need to select the Options Type, Strike Price.

Enter the advanced options such as IOC, Stop Loss trigger price only if

essential.

Call and Put Options:

Option contracts are of two types namely Call and Put.

Call Option: A Call Option is one where the buyer has the right but no obligation to

buy the underlying security at a specified future date.

Put Option: A Put Option is one where the buyer has the right but no obligation to sell

the underlying security at a specified future date.

Quick Order in Cash Segment:

To place a quick order, click 'O' from the market watch list. The order panel is

automatically filled with the instrument details and helps in quick order placement.

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Quick Order in FAO:

To place a quick order, click 'O' from the market watch list. The order panel is

automatically filled with the instrument details and helps in quick order placement.

Order Conformation:

When an order is submitted a confirmation screen is displayed that contains all

the essential parameters of the order. This helps to verify if the order details are okay

and that no errors are being made. Click 'Back' button in case of modification. The

order request is validated and sent to the exchange when 'Confirm' button is clicked.

Order Status:

Order status link in the menu helps to view the status of all the orders that

have been placed during the trading session. Further, orders that have not been fully

or partially executed can also be modified or cancelled. Radio buttons under 'O', 'M'

and 'C' can be clicked to place additional order or to modify or cancel respectively.

Only pending orders can be modified or cancelled. However, there is a possibility that

a modification or cancellation request may be rejected if in the meanwhile the

pending order gets traded. Order log can be viewed by clicking the link provided

under Transaction Number.

Trade Summary:

Trade summary is a list of all trades that have been executed during the trading

session. It displays the trade information such as exchange, security. Buy / sell,

quantity, execution rate and more.

Positions:

Positions screen is basically divided into two parts. The top portion displays

the information on current buying power and the later portion displays the positions

held in various securities as per the selected filter. It displays positions under NSE,

BSE in the respective 'Cash' or 'Margin' products, positions in F&O and also the total

cost, market value and Profit / Loss on the total positions for each segment.

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Buying Power:

Buying power is amount up to which positions can be taken in the market. The

buying power portion of the positions screen contains the following informations:

Initial Buying Power : This is the buying power as at the start of the day.

Deposit : Clear funds added during the day.

Withdraw : Payout request confirmed for the day.

Buying Power : Buying power at the current moment is displayed under this

head. This keeps changing based on positions taken, profit / losses made intra-day,

margins levied on marginable positions etc.

Fund transfer:

The crux of Online trading system is to customer transfer funds online real-

time from a wide range of banks. Geojit has built payment gateways with multiple

banks such as HDFC Bank, UTI Bank, Federal Bank, Citibank, ICICI Bank.

Transferring funds online is simple and secure. Click 'More' from menu bar,

select 'Add Funds' link, select bank (that is linked to the trading account), enter

amount and submit the fund transfer request. Customer is redirected to the bank's

secure site where he has to login with the banks customer id and password and

confirm the fund transfer. Bank validates the same and gives a user friendly message.

If required free balance is there then the transfer is successful, else it is rejected.

Money Transfer Details:

Fund transfer details are a list of all and withdrawals. The source column

displays the bank from where the customer has transferred the money.

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4.5 ADVANTAGES:

Technology driven trading is faster than manual trading.

It is accessible to all.

It allows faster incorporations of Price sensitive information in to the

prevailing prices and thus, increases the information efficiency of the markets.

Orders can be placed and accepted irrespective of the size.

It cuts down the costs as well as time in executing orders as it matches orders

on a strict price condition as well as on time priority basis.

It widens the market because trading can be done simultaneously irrespective

of their geographical locations.

It is fully transparent as it is fully auto mated and screen based.

There is no chance of error as the price conditions; quantity conditions, etc are

punched in to the computers by members themselves.

Client can sit in their home and do trading.

Delivery slips will be avoided.

Clients can check their balances whenever they needed.

More number of clients can access the facility.

The ancient system of shouting at the trade floor will be avoided.

Investors can go through fluctuations in share prices and can make appropriate

decisions.

Settlement is done daily.

Clients will always be keeping tough with the official employees of the firm.

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4.6 LIMITATIONS:

Network problem will be quickly affected.

Trading is affected by slowness due to high online traffic.

There is a chance of online threats.

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CHAPTER 5

FINDINGS, CONCLUSION AND

SUGGESTIONS

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5.1 FINDINGS:

The system of internet trading at Geojit helps the customer to execute the

contracts easily.

Geojit is one among the leading firm in share trading. The internet trading

customers is satisfied with the services provided.

The electronic and printed contracts provided by the organization helps the

clients to get day-today account of their transactions.

The internet trading system provides the clients more convenient trading

atmosphere and it provides them to trade from their convenient spaces.

The system of Internet trading provides quicker settlement of accounts and

provides more accurate information.

The customers are getting their weekly reports regularly.

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5.2 SUGGESTIONS AND RECOMMENDATIONS:

Rush of clients near trading terminals during trading hours can be reduced by

increasing the number of terminals in the trading section.

Geojit should increase number of staffs having professional skill and

qualifications to give necessary advice to clients.

It is desirable to conduct awareness sessions about the latest developments

regarding the 'e-business application in stock broking' to their clients.

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5.3 CONCLUSION:

Geojit gives prime importance for customers. So it always focuses on

providing the good facilities for trading to its clients. They provide satisfaction by

helping their clients to increase their wealth by trading in the most profitable manner

by providing adequate database for their evaluation. It provides services in order to

maximize the fulfillment of needs of the clients. So to provide the right advice that

would most benefit the clients at the trading the company invests heavily. As per the

study conducted it is clear that the full-computerized environment in the organization

helps the client to retrieve the information in a very high speed and through that they

can execute their transactions quickly. This will also help the clients to engage in new

areas of trade like derivatives etc.

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BIBLIOGRAPHY:

Company Annual Report

www.geojitbnpparibas.com

www.wikipedia.org

www.geojitonline

www.google.com

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